Issue 1 2024
ALIA JANAHI: LEADING BY EXAMPLE DP World Executive Offers Sound Advice to Young Professionals
THE MIDDLE EAST ISSUE Is Saudi Ready for Full-Scale Wind Buildout? UAE’s Economy Ready for Lift-Off Middle East’s Green Hydrogen Push Plus News and Features From Around the World
REINVENTING RECRUITING, RETAINING DYNAMICS Challenges of Finding, Keeping Project Cargo Staff
Inside This Issue
How to Safely Transport Rhinos Credit: Air Charter Service
24
Cover Story
Alia Janahi: Leading by Example
DP World Executive Offers Sound Advice to Young Professionals
46 26 Middle East Middle East Hopes Hang on Hydrogen
50 Throwback Memories of Rebuilding Iraq
Region’s Green Hydrogen Obsession Here to Stay
32 Middle East Is Saudi Ready for Full-scale Wind Projects? Kingdom Gears up for Gigawatts of Wind Power
Mark Your Calendars for Upcoming Breakbulk Events
36 Middle East Morocco’s Ambitious Water Program
How Tea, Talk With Tribal Leaders Led to Project Success
52 Global Breakbulk’s Emissions Building Blocks
Alliance Sets Parameters for Accounting and Reporting
53 Global Sanctions Rattle Project Sector
Restrictions Against Russia Reduce Cargo Activity, Force Route Changes
Navigating Challenges, Unveiling Opportunities
56 Global ‘No New Aircraft’ Tests Planning Skills
Breakbulk Europe 21-23 May 2024 Rotterdam Ahoy, Netherlands
39 Middle East UAE Economy Ready for Lift-off
Breakbulk Americas 15-17 October 2024 George R. Brown Convention Center, USA
42 Middle East Transforming Oman’s Cityscape
60 Global Reinventing Recruiting, Retaining Dynamics
Breakbulk Middle East 10-11 February 2025 Dubai World Trade Centre, UAE
46 Middle East How to Safely Transport Rhinos
64 Global Insurance Risks and Rewards
Boom From Economic Diversification and Industrial Development Strategies
Sultanate Embarks on a Series of Mega Construction Projects
Move Promotes Long-term Conservation in Africa
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Shortages and Global Volatility Have Become the New Norm
Challenges of Finding, Keeping Project Cargo Staff
Train, Maintain, Standardize and Heed Advice, Breakbulk Sector Told
SEAMLESS CONNECTIONS At DP World, our ports and terminals help businesses streamline operations, lower costs and achieve sustainability goals. We’re working to end supply chain disruption by reducing friction in every part of your cargo’s journey, creating certainty and security for all. From the factory floor to your customer’s door, DP World is working to ensure the fast, transparent movement of goods, connecting you to your customer.
Inside This Issue
Female Leadership: Evidence Through Action
Canada Projects Head Upstream
89
70 Also in This Issue 07
Foreword
11
UpFront
95
Best of BreakbulkONE
98
Projects in This Issue
67 Europe Heavy Machinery in European Regulatory Jam
New Regulations Raise Redesign Questions
70 Profile Female Leadership: Evidence Through Action
Elisabeth Cosmatos Takes Inspiration From Those Closest to Her
72 Americas Digging Deeper with US Copper Mining
Forwarders Could Benefit from Commodity’s “Critical” Status
76 Americas Panama’s Water Woes
Canal’s Battle Against Water Scarcity
80 Profile Experience Is Tania Smith’s Precious Cargo
S&B Manager Illustrates the Link Between Management and Mentorship
82 Americas Breakbulk Visits DHL Americas Innovation Center
Technologies on Show in Chicago to Revolutionize Project Logistics
86 Americas Desalination Drives Project Volumes Desalination Fast Becoming a Buzzword in South America
89 Americas Canada Projects Head Upstream
Oil and Gas Production Rises in the Energy Transition Era
92 Asia Firing Up India’s Coal Supply India’s Eyeing New Mines to Meet Energy Demands
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Foreword
MIDDLE EAST SPOTLIGHT
Marketing and Editorial Director
Welcome to the first issue of Breakbulk Magazine for 2024. The features inside will take you on an insightful journey around the world with stops at Leslie Meredith several of the major project hubs that hold promise for our industry, along with a couple of big challenges that are already testing the resources and ingenuity of project cargo players. And of course, you’ll meet some of the people who are dedicating their careers to navigating these ups and downs who share their experiences so that we can improve together. Like with previous editions of the magazine, you’ll find a mix of global stories and articles specific to each of the Breakbulk event regions: the Middle East, Europe and the Americas. In this edition, we’re shining a spotlight on the Middle East – a hub of projects and opportunities – as we prepare to meet in Dubai for Breakbulk Middle East, February 12-13. DP World’s Alia Janahi is featured on the cover and you’ll find her advice to young professionals inside. Janahi will also participate in the Women in Breakbulk main stage panel session on the Tuesday morning of the event to discuss this year’s key topic: How to become an influential leader. Journalist Heba Hesham provides a close look at green hydrogen project plans across the region and takes a critical eye at Saudi’s readiness for commercialscale wind projects. Turn to page 24 to start the Middle East coverage. The global package includes a fascinating look at the impact of sanctions on goods moving in and out
News Editor
Leslie Meredith / +1 (801) 201-5971 Leslie.Meredith@breakbulk.com
of Russia, written by Jeremy Bowden. With new trade partners, new rules on Russian steel and a “black” fleet, I couldn’t help but think this could be a plot for an international thriller. A significant issue affecting the Europe heavy-lift market is the European Machinery Regulation set to come into force in January 2027 covered in a feature from Felicity Landon. While well-intentioned, the regulations have set off an outcry across the sector. Long-time Breakbulk contributor and president of ESTA Ton Klijn said, “If manufacturers abide by the letter of the regulation, they can’t manufacture cranes anymore.” This is a developing topic that you’ll be hearing more about. The Americas section includes coverage of two big opportunities for project cargo specialists: a resurgence in oil & gas projects in Canada and copper mining expansion in the U.S. Plus staff writer Carly Fields delves into the Panama Canal water crisis and its effects on trade. Don’t miss the introduction to the magazine’s new editorial board on page 16, a group of industry leaders spanning maritime transport, project forwarding, education, equipment, and more. They’ll be working closely with our editorial team to bring you stories and perspectives critical to the industry. And we want to hear from you. What topics are impacting your business? What successful strategies have you discovered? Please reach out and let me know. Here’s to a successful and collaborative 2024. I look forward to sharing this journey with you and delivering the high-quality editorial content you can expect from Breakbulk. Best, Leslie Meredith Marketing and Editorial Director Breakbulk Events & Media
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Carly Fields carly.fields@breakbulk.com
Senior Reporter
Simon West simon.west@breakbulk.com
Designer Mark Clubb
Reporters
John Bensalhia Jeremy Bowden Heba Hasham Alex Keimig Luke King Felicity Landon Iain MacIntyre Lori Musser Malcolm Ramsay Thomas Timlen Liesl Venter
Breakbulk Magazine Editorial Board John Amos Amos Logistics Dea Chincuanco dship Carriers Elisabeth Cosmatos Cosmatos Group of Companies Dennis Devlin Maersk Project Logistics Dharmendra Gangrade Larsen & Toubro Margaret Kidd University of Houston Stephen “Spo” Spoljaric Bechtel Corporation Jake Swanson DHL Global Forwarding Grant Wattman Combi Lift Americas Portfolio Director Jessica Dawnay Jessica.Dawnay@breakbulk.com To advertise in Breakbulk Media products, visit: http://breakbulk.com/page/advertise Subscriptions To subscribe, go to https://breakbulk.com/page/ breakbulk-magazine A publication of Hyve Group plc. The Studios, 2 Kingdom Street Paddington, London W2 6JG, UK
Inside This Issue
In This Issue and Related Sessions at Breakbulk Middle East 2024: Transforming Oman’s Cityscape Futureproofing Your Market Position Tuesday, 13 February 12:45 - 13:30 Moderator: Cris Partridge Owner, Myrcator Marine & Cargo Solutions Fze Exhibitors: C. Steinweg Oman Stand E51 Asyad Terminals Duqm Stand L20
Reinventing Dynamics Of Recruiting, Retaining Project Cargo Staff Attracting Talent For Future Industry Sustainability Monday 12 February 16:30 - 17:15 Exhibitors: DHL Industrial Projects Stand K50 Female Leadership: Evidence Through Action Women In Breakbulk Tuesday, 13 February 10:00 - 11:00
Middle East Hopes Hang on Hydrogen Offshore Project Logistics: Demand & Supply Monday, 12 February 13:30 - 14:15 Industry Decarbonisation: Progress, Challenges and Opportunities Tuesday, 13 February 15:30 - 16:15 Exhibitors: DB Schenker Stand J52 AD Ports Group Stand G10
BreakbulkONE DSV, NEOM Set up US$10 Billion Logistics Venture Saudi Arabia Spotlight: Project Update Monday, 12 February 14:30 - 15:15 Exhibitor: DSV Stand E10, Breakbulk Studios Sponsor
UAE Economy Ready for Lift-Off Mena Project Overview Monday, 12 February 10:45 - 11:15 How to Safely Transport Rhinos Doing Business In East Africa Monday, 12 February 13:35 - 14:20 Sponsored by Ceva Logistics Exhibitor: Air Charter Service (ACS) Stand H51 Is Saudi Ready for Full-scale Wind Projects? Saudi Arabia Spotlight: Project Update Monday, 12 February 14:30 - 15:15 ‘No New Aircraft’ Tests Planning Skills The Balancing Act: Demand, Supply and the Economy Monday, 12 February 11:30 - 12:15 Exhibitors: Air Charter Service (ACS) Stand H51 deugro Stand H30
Credit: deugro
Digging Deeper With US Mining Exhibitors: Blue Water Shipping DHL Global Forwarding
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Port Houston City Docks
Delivering what your customers need.
www.porthouston.com
INSIDE New Faces at Breakbulk Middle East Breakbulk Magazine Editorial Board 2024 Murilo Caldana - Trailblazer! Women in Breakbulk Movers & Shakers 2024 Breakbulk Gift Guide – New Year, New You Dangote oil refinery in Lekki Free Zone, Nigeria Credit: Mammoet
NEW FACES AT BREAKBULK MIDDLE EAST Get to know some of the new exhibitors at Breakbulk Middle East 2024 Barri Logistics Solutions
What made your company want to exhibit at Breakbulk Middle East? Breakbulk Middle East is a prominent event in the shipping and logistics industry. Exhibiting there provides an opportunity to network with potential clients, partners, and industry experts. We were participating every year, without having a booth. However, in 2024 deugro is celebrating the 100-year anniversary. This is one of the reasons we decided to exhibit. We want to reach out and strengthen relationships with existing and potential clients and partners who are attending the exhibition.
Turki Nasser Alobaidan, Founder CEO, Barri Logistics Solutions Stand D30 Saudi Arabia IT What is the most interesting thing about your business? We synergize the fragmented logistics industry through technology. We’re seen as the enablers of road freight transportation.
What is your company’s outlook on project opportunities in the Middle East at the moment? Governments in the Middle East have been implementing ambitious development plans and infrastructure projects to drive economic growth. Covid stopped a lot of projects. However, we see the market picking up now. There has also been a growing prominence on renewable energy and sustainable infrastructure projects in the Middle East. deugro secured some major oil & gas, petrochemical and hydrogen projects across the GCC this year which will run for the next 2-3 years.
What made your company want to exhibit at Breakbulk Middle East? Breakbulk Middle East focuses mainly on our main scope of work! What is your company’s outlook on project opportunities in the Middle East at the moment? It looks promising! Especially in the Saudi market.
deugro
Fracht Group
Steffen Behrens, President Middle East, deugro Stand H30 United Arab Emirates Freight Forwarder
Ahmed Abdo, CEO/Regional Managing Director Stand M30 United Arab Emirates Maritime Transport
What is the most interesting thing about your business? deugro is a global project logistics company that specializes in complex and oversized cargo movements for all industries. One of the most interesting aspects of deugro’s business is the ability to manage the transportation of extremely heavy or oversized cargo, often involving detailed planning and coordination across various modes of transportation, including sea, air, and land. This can involve specialized equipment, permits, and a profound understanding of international regulations and customs procedures. Furthermore, deugro’s network of offices around the world allows operating in diverse and often remote locations, which can present unique logistical challenges.
What is the most interesting thing about your business? Dealing with project cargo can get tricky as it often involves big, bulky, and complicated cargo. Making each operation go smoothly is all about having the right know-how and skill, plus some sharp management. You’ve got to hit the project’s goals for safety, timing, and cost, which are the key goals. What’s interesting about this industry is that it’s all about finding innovative ways to juggle these different parts and making it work every time. What made your company want to exhibit at Breakbulk Middle East? There is no doubt that Breakbulk Middle East is the best platform in this region to be seen and interact with the key
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players and decision makers affecting our industry. It is the forum to network while updating oneself on key industry developments and prospects.
The most interesting thing about our business is that by having a diverse set of customers across various industries, we are constantly challenged to me up with tailor-made and unique solutions for each of the projects we undertake. Thus, What is your company’s outlook on project opportunities in the we push our boundaries and innovate. Middle East at the moment? We are quite bullish about the prospects for major What made your company want to exhibit at Breakbulk opportunities coming up particularly in Saudi Arabia and Middle East? are setting up offices in areas we have no direct presence at We decided to exhibit at Breakbulk Middle East as it is an ideal this time. This despite the contrary global situation caused platform for various stake holders to come together under by ongoing unrest in other areas in the Middle East currently one roof. As a service provider we get the opportunity to being faced. engage with present and potential customers as well as the market at large. This is a catalyst for future collaborations and NFIDENT new business. Sameer Mubarak, Chairman, Nafith Logistics What is your company’s outlook on project opportunities in the Stand M34 Middle East at the moment? United Arab Emirates On a macro level, the government of India and various Middle IT Eastern countries are positive and bullish about growing trade in the near future. As a service provider we are an What is the most interesting thing about important link in this chain. Supply chain disruptions during your business? the COVID pandemic amply demonstrate this point. We see We enable ports to reduce truck turnpromising growth in trade between India and the UAE, Saudi around time from hinterland to port, Arabia and Qatar amongst others. by using state-of-the-art, logistics technology, including weighing, dispatching, monitoring and Ocean Network Express L.L.C. control. Our projects are known to directly reduce costs to Samir Sudarshan, Senior Manager, the port, and increase capacity at the same time. Ocean Network Express Stand C30 What made your company want to exhibit at Breakbulk Singapore Middle East? Maritime Transport Breakbulk Middle East is a congregation of port professionals who are potential partners. Our presence will enable the What is the most interesting thing about visitors to take a deep dive into the different technologies and your business? assets that will result in higher ROIs. As one of the world’s largest container carriers, Ocean Network Express What is your company’s outlook on project opportunities in the (ONE) operates more than 210 vessels, Middle East at the moment? offering an expeditious and a reliable Nfident is a long-term partner to its clients and is currently international network of over 170 altering its offering to cater for smaller ports and logistics services to 120 countries and beyond. With a fleet size of hubs. This increases the spectrum of clients who can take approximately 1.69 million TEU, we harness our operational advantage of our offering. excellence and digital innovation to deliver excellent customer service. We will continue to be sustainable and Neptune Containers / Nepcon reliable in providing quality and timely shipping solutions for Shipping LLC your reefer cargo, special cargo, dangerous cargo, and dry Amol A Patil, Projects, Neptune cargo. With our unconventional approach to shipping, we Container Line & Logistics seek to further develop the breakbulk market in the Middle Stand D60 East Region. India Maritime Transport What made your company want to exhibit at Breakbulk Middle East? What is the most interesting thing about We chose to exhibit at Breakbulk Middle East because your business? it’s a unique platform in the GCC that fosters valuable
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collaborations between service providers, end customers, and industry experts. With 98 countries participating and 32% of attendees being key decision makers at the 2023 exhibition, it was a compelling opportunity for ONE to participate. Engaging with decision makers provides us with the opportunity to build valuable business relationships with our customers, both existing and potential. Since we are active in other Breakbulk Exhibitions globally, it is important for us to bring our Magenta presence to Dubai, a growing market.
lift industry. It provides an excellent platform for networking, showcasing our products, and connecting with potential customers and partners. By exhibiting at Breakbulk Middle East, we have the opportunity to showcase our expertise in providing solutions for heavy transportation needs in this region. It allows us to demonstrate the capabilities of our SPMTs and highlight how they can contribute to the success of these projects.
What is your company’s outlook on project opportunities in the Middle East at the moment? What is your company’s outlook on project opportunities in the As the world market leader of self-propelled modular Middle East at the moment? transporters (SPMTs), and therefore the greatest availability, The Middle East is currently experiencing a notable increase we have a very positive outlook on project opportunities in production and infrastructure projects, leading to a in the Middle East at the moment. The region is currently multitude of opportunities in the project cargo sector. Many experiencing a strong economic growth, and there is a countries in the region are actively pursuing ambitious growth high demand for infrastructure projects, particularly in the plans, and these initiatives are beginning to come to fruition. heavy transportation sector. Our SPMTs are ideally suited ONE as a prominent global container carrier, is excited and for transporting heavy loads in challenging environments, enthusiastic about the opportunity in this sector. We are which are often encountered in the construction industry closely monitoring the industry trends to ensure that we are in in the Middle East. With their high load capacity, flexibility, sync with our customers’ requirements, and our commitment and precision, our vehicles can contribute to executing to provide quality and timing shipping solutions remains projects more efficiently and safely. Furthermore, we have unwavering. already successfully collaborated with various companies and government agencies in the Middle East, showcasing our TII SCHEUERLE expertise in this market segment. Jannick Mathieu, Area Sales Manager, TII Sales Stand B03 Germany Industry-related Services
Breakbulk Middle East 2024 New Exhibitors by Industry Sector
11
What is the most interesting thing about your business? For more than 150 years now, vehicles and transport solutions from the TII Group have led the way for the transportation and maneuvering of the heaviest and most valuable loads around the world. Together with our customers and business partners, we are proud to produce vehicles that are designed to move any load, regardless of weight or dimension. With their innovations, the TII Group, which is listed in the index of world market leaders, supports its customers in various industries, like the transport and logistics sectors, building industry, plant engineering, air and space travel, shipbuilding, energy, steel and mining as well as yard logistics for realizing a wide range of complex transport tasks.
Countries
New exhibitors represent 11 countries including the UAE, China, India, Türkiye and Germany
What made your company want to exhibit at Breakbulk Middle East? Breakbulk Middle East is a premier event in the region that brings together key players in the project cargo and heavy
Freight Forwarder
20
46.51%
Industry-related Services
6
13.95%
Equipment
5
11.63%
Maritime Transport
5
11.63%
IT
4
9.30%
Ports & Terminals
2
4.65%
Government
1
2.33%
Grand Total
43
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NEW EXHIBITORS AT Breakbulk Middle East 2024 Company name
Stand number
Country
Sector
Admaren Tech PVT LTD AFS Logistics LTD
C25
India
IT
A55
China
AGWE Global LTD
Freight Forwarder
M32
United Arab Emirates
Industry-related Services
All Seas Shipping Agency
H41
Tunisia
Freight Forwarder
ASYAD Group
M21
Oman
Government
Atlas Dunnage
H52
Türkiye
Equipment
AUXIN Shipping PVT LTD
D49
India
Freight Forwarder
Barri Logistics Solutions
D30
Saudi Arabia
Freight Forwarder
BDL - Naqleen Company LTD
A30
Saudi Arabia
Freight Forwarder
CEVA LOGISTICS
M42
United Arab Emirates
Freight Forwarder
CHIREY Global Logistics Group LTD
A41
China
Freight Forwarder
Commonwealth Independent States Navigation (2019) Inc.
C55
Canada
Maritime Transport
CONTAINER HUB
G03
United Arab Emirates
Equipment
Dahlia Technologies Pte. LTD
N46
Singapore
IT
deugro
H30
United Arab Emirates
Maritime Transport
EPC Global Shipping Company LTD
N22
China
Maritime Transport
Fracht Middle East Shipping Services LLC
M30
United Arab Emirates
Freight Forwarder
GCPI General Company for Ports of Iraq
A20
United Arab Emirates
Ports & Terminals
GreatKun ( Shanghai) Supply Chain Management Co. LTD
G02
China
Freight Forwarder
Haitun container line
A11
United Arab Emirates
Equipment
HANSON CARRIERS
J40
China
Freight Forwarder
Intels Nigeria Limited & ENHILS Integrated Logistics Services
L23
Nigeria
Industry-related Services
Logiswift
N40
United Arab Emirates
Industry-related Services
Louis Dreyfus Armateurs
J50
United Arab Emirates
Maritime Transport
LYNN SHIPPING LINE LLC
L30
United Arab Emirates
Ports & Terminals
Modern Freight Company
D02
United Arab Emirates
Freight Forwarder
Nautica Line Cargo & Shipping
E45
United Arab Emirates
Freight Forwarder
Nautilus Shipping
C50
Singapore
Freight Forwarder
Nejoum Al Jazeera
H65
United Arab Emirates
Freight Forwarder
Neptune Containers / Nepcon shipping LLC
D60
India
Freight Forwarder
NFIDENT
M34
United Arab Emirates
Industry-related Services
Ocean Network Express LLC
C30
United Arab Emirates
Maritime Transport
PEINER SMAG Lifting Technologies GmbH
A56
Germany
Equipment
Port Gdański Ekspolatacja S.A
M25
Poland
Ports & Terminals
Sea Bridge Shipping
E56
China
Maritime Transport
Sea Bright Ship Management & Operation LLC
A50
United Arab Emirates
Industry-related Services
Seashell Logistics
N36
India
Freight Forwarder
St. John Freight Systems Limited - ICD - A Global Corp Logistics company A23
India
Freight Forwarder
Terberg Special Vehicles
United Arab Emirates
Equipment
J62
TII SCHEUERLE
B03
Germany
Industry-related Services
TITAN
M02
Türkiye
Freight Forwarder
TRADE YOUR CONTAINER FZ LLC
N34
United Arab Emirates
IT
Turkmenline
N26
Türkiye
Freight Forwarder
VARAMAR
E30
United Arab Emirates
IT
Vistar Shipping | Econship
B01
United Arab Emirates
Maritime Transport
Zajel Courier Company
B35
United Arab Emirates
Freight Forwarder
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S er
Issu e
1 20
23
SSU
bul l oc vici king T k Middl r ng I e n dia a d e P o E a s t ’s O il Bo ential nan za
BREAKBULKW MAGAZINE EDITORIAL BOARD 2024 MIDDLINE D IN THE EAST’S SAILS
ONE OF A TEAM
Meet the industry leaders that will help determine what you’ll read within each issue of the magazine. They’ll offer insight on trends, innovations and strategies to drive success across the constantly changing project landscape.
Peo
ple
DSVJohn Amos ’s M President oha mm DAmos iscu Logistics a New sses d Jabe Sector: the Ene Industry-related GC r rgy Services Fro C’s ntie r to M
e et
MIDDLE
EAST I
Issu e
Margaret A. Kidd, CMILT, CPE
DHL Programme Director, Sue Global Supply Chain Logistics F University of Houston Bein Donogh orward u ga True e on ing’s Sector: Education Lea der
at B Un l o r e a k b u l c S er vici king T k Middl r ng I e n dia a d e P o E a s t te ’s O ilChincuanco Dea Bon ntial anz a President
SSUE
Stephen “Spo” Spoljaric Corporate Manager of ITE R: E Global Logistics n g in eer INSIDE Bechtel Corporation in g Fa THIS I l ts , NEPC Hy w uSector: e wE B u SSUE in d ra f Tes t Logis Global o Breakbulk r Shipper tb e d fo tics E x Nuclea PLU W r Me c r in d Mid S: ENetwork to Member g a ellen v
dship Carriers (Americas), Inc. Sector: Maritime Transport
dle
Elisabeth Cosmatos President, The Heavy Lift Group (THLG) CEO, The Cosmatos Group of Companies Sectors: Equipment/ Industry-related Services
c O e E a s r y th in p e n F l O f f s h o e g fr re t ’s P ood o g hen m ome Brea ates k nal S uc bulk c es s
Jake Swanson Regional Vice President Americas Operations, Industrial Projects DHL Global Forwarding Sector: Project Logistics
Issu e3 202 3
Cha llen ging Dennis Devlin Unc ons Head of Growth, North ciou s wo America rkpl ace Maersk Project Logistics Bias Maersk Inc.
Issu e
4 20
23
Grant Wattman Issue 6 202 3 President, Combi Lift Americas Sector: Project Logistics
Sector: Maritime Transport
A Land Oppor of tunity
Dharmendra Gangrade Head of Logistics Management Center Larsen & Toubro Limited Sector: EPC FOX Lati Brasil Breakbulk Global Shipper n Am ’s M urilo eric Network C Member a’s T ald hriv ana o ing Pro n ject Mar ket
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WOME BREAK N IN BULK U N
Cha llen ging Indu Unc ons breakbulk.com Infla stry An ciou x sW New tion Sq ious A orkp NE Era in ueeze bout P la
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MURILO CALDANA
- TRAILBLAZER! In an incredible feat of dedication and resilience, FOX Brasil’s project director Murilo Caldana crossed the finishing line of one of the world’s most demanding tests of human endurance: El Cruce, a 100-kilometer trail run through the Andes from Argentina to Chile.
What part of the trail was the most challenging and why? On Day 2, we reached the summit of a mountain, conquering a challenging uphill journey of approximately 15 kilometers. As we stood at the pinnacle, fierce winds reaching 70 kilometers/hour whipped around us, intensifying the bonechilling cold down to minus 20°C. At that moment, I felt a mix of emotions – trepidation, exhilaration, joy, and awe.
Murilo, former president of The Heavy Lift Group, was one of more than 2,000 participants from over 35 countries who competed in the grueling three-day race in December. His sweat, sacrifice, and sheer willpower are a testament to the incredible strength of the human spirit and a reminder that with unwavering determination, any goal can be achieved. We caught up with Murilo post-race for a quick Q&A.
In what ways has this experience affected other parts of your life?
There is one invaluable lesson that stands above all others: Solidarity. In those remote and isolated expanses of nature, supporting and assisting colleagues, even those seen How long did you train for? as competitors, became paramount. At one point I lent a helping hand to a friend who had sprained their ankle during I dedicated 10 months to rigorous preparation, training many hours a week mainly at a park in São Paulo, and 2 hours a week a descent. Similarly, when in the gym. I also trained in mountains and on beaches close to I experienced excruciating cramps, a fellow adventurer my home and took part in several smaller races to prepare. offered me olives and a salt capsule, providing the relief I One of the most significant challenges I faced was balancing needed. my training with my professional commitments. As someone working in the shipping industry, frequent travel is a part of FOX Brasil exhibits at my routine. Nevertheless, I made sure to carry my running shoes with me wherever I went, allowing me to train in various Breakbulk Americas and locations such as New Orleans, USA; The Hague, Netherlands; Breakbulk Europe. To learn Baja California Sur, Mexico; Panama City, Panama; and Rio de more about Caldana, visit: Janeiro, Brazil. These experiences were truly memorable, and breakbulk.com/articles/aland-of-opportunity I cherished every moment of them.
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WOMEN IN BREAKBULK
This year’s theme is building influence and here several Women in Breakbulk members share their insights on what it takes to become a more influential leader. Abir Leheta, CEO, EGYtrans
Speaker at the Women in Breakbulk Breakfast & Session at Breakbulk Middle East 2024 Who was the most influential person in your life and how did this person help shape the leader that you are today? I would have to say that it’s a fusion of influences. The largest among them was definitely my mother, who to me personified resilience and the ability to adapt and find the positive under any circumstances and sudden detours on the path of life. My father was also a huge influence. He led with a great deal of vision, passion, and courage, and believed strongly in caring for people and the importance of having an impact on community and country through our work. Beyond family, I sought guidance from diverse mentors within and outside the industry. Many books on leadership and personal development have also enriched my perspective. The collective wisdom from these influences forms my leadership approach, blending determination, strategic vision, collaboration and attention to detail, all of which are needed to navigate the complexities of our industry.
How do you go about influencing a colleague? What about a group such as a board? Different situations require different approaches. Influencing a colleague involves building trust through open communication, understanding their perspective, and highlighting shared goals. I emphasize collaboration and present ideas aligned with their interests to gain support. When influencing a board, I focus on thorough research and a data-backed approach. Understanding the board’s priorities, I try to present concise, relevant proposals that align with the organization’s goals. Engaging with individual members and building consensus beforehand helps tailor the message for broader acceptance. What is the most important thing to keep in mind when a person is trying to become a more influential leader? I believe authenticity and empathy go hand-in-hand when it comes to effective leadership. People can tell immediately if you are being authentic and genuinely care about them and they appreciate this, especially in a world where diversity is more understood. Being true to oneself, staying transparent, and aligning actions with values builds trust and respect. We are different and should build on our core strengths and mutual understanding, so effective leaders embrace their unique style, communicate openly, and prioritize building meaningful connections. What is the one thing you should never do in a business relationship? The one thing you should never do in a business relationship is betray trust, because once it’s compromised, it’s extremely challenging to rebuild and has long-term repercussions. Respecting confidentiality, being honest, and consistently delivering on commitments are crucial for both customers and employees. This is particularly true in our business as we handle large-scale and time-sensitive projects that require the highest levels of safety, accuracy and planning.
Simona Peter, Business Development, Fleet Line Shipping
AT BREAKBULK MIDDLE EAST WOMEN IN BREAKBULK: HOW TO BECOME A MORE INFLUENTIAL LEADER Tuesday, 13 February 10:00 – 11:00
Speaker at the Women in Breakbulk Breakfast & Session at Breakbulk Middle East 2024
Who was the most influential person in your life and how did this person help shape the leader that you are today? The truth of the matter is, I derive inspiration from a lot of individuals in my life. I consciously observe and absorb the admirable 18
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Gina Panayiotou, Founder & CEO, Oceans Arena
qualities of those around me. In the workplace, whether it’s our general manager’s finesse in communication and conflict management, our project manager’s adept negotiation skills, our operations manager’s solution-oriented mindset in tackling challenges, or our sales manager’s unwavering go-getter attitude - each contributes a unique facet.
Who was the most influential person in your life and how did this person help shape the leader that you are today?
The tapestry extends to my personal life, where my father, founder and MD of Fleet Line Peter Mathew, has always encouraged a forward-thinking approach and to always think of the bigger picture, while my mother has a knack for making people feel genuinely heard and understood. These qualities, in my view, collectively form the blueprint for effective leadership. In reality, leadership is a symbiotic dance, a mutual give-and-take. Consequently, the individuals I have surrounded myself with over the years have played a pivotal role in shaping the person I’ve become today.
This is a hard one to answer. There have been quite a few people who have played a key role in influencing me, from female role models who have shown me that it is ok for a woman to be ambitious, male mentors who have encouraged me to step outside my comfort zone and those who believed in me, all of which have shaped my journey. A consistent one however, would have to be my parents who have taught me resilience, grit and perseverance, all of which are key traits in leadership.
How do you go about influencing a colleague? How do you go about influencing a colleague? What about a group such as a board?
The key to effective influence is rooted in the depth of the personal connections you make. When there’s a positive and personal bond with a colleague, feedback is usually welcomed with open arms. Providing constructive feedback, coupled with making them feel acknowledged and understood, ensures that your input is not only well-received but also swiftly put into action.
We are all influenced based on our own influences; our upbringing, how we individually value things and what matters to us and sometimes even what matters to us at that particular moment. Therefore, when trying to influence others, whether it be colleagues or a board, you need to read the room and figure out what resonates.
What is the most important thing to keep in mind when a person is trying to become a more influential leader?
It is also important to acknowledge that you cannot influence somebody who does not want to be influenced, so what you need to do is create an environment where people are open to being influenced.
First, establishing trust within your team is foundational and helps team members feel confident in your reliability. Demonstrating competence in your role is also vital. Competence breeds confidence and people around you are more likely to follow and trust someone who showcases proficiency for their field. Actively listening to your team members and being open to ideas fosters a collaborative and inclusive environment. Lastly, transparency is key. Clearly communicating expectations and goals helps everyone understand the task at hand and it becomes easier to rally them toward shared objectives.
What is the most important thing to keep in mind when a person is trying to become a more influential leader? You need to be credible and walk the walk. Credibility comes from effort, hard work and setting standards which you are not willing to compromise - whether somebody is watching or not. Walking the walk is the epitome of “don’t tell me, show me” and in that lies no better way to influence others than by showing them the why.
In essence, the journey to become a more influential leader involves nurturing trust, showcasing competence, fostering open communication, and ensuring clarity in expectations and goals.
What is the one thing you should never do in a business relationship?
What is the one thing you should never do in a business relationship?
Fail to understand what matters to the other person, we are all very unique in what we need from a business relationship, which is why being aware of another person’s needs is fundamental for long-term success. A second one would be overpromising and not delivering; it kills credibility instantly and makes it difficult to get back on track after that.
In the business world, trust is often the currency of success, and sacrificing it for short-term gains can have detrimental long-term effects on your career and connections.
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MOVERS AND SHAKERS
MyCrane
Jason Brough
Highlighting Recent Industry Hires, Promotions and Departures
Blue Water Shipping
Jørgen Wisborg has been named chairman of transport and logistics specialist Blue Water Shipping, taking over from the group’s founder Kurt Skov, who will stay on as a member of the board of directors. Wisborg, who joined Blue Water’s board of directors earlier this year, was CEO of Danish energy firm OK from Jørgen Wisborg 2005-2022, and has served as chairman or director for several other companies including Denmark-based industrial conglomerate Schouw & Co. “I have received a very warm and positive welcome, and I have been confirmed that the culture, values, and ambitions of everyone in Blue Water are very strong. As chairman, I will have great respect for maintaining and developing our culture and dedication in order to continue the profitable growth based on our strong customer focus,” Wisborg said.
Universal Africa Lines
Tania Galli
Tania Galli has started a new role as director of breakbulk shipping company Universal Africa Lines. Prior to her promotion, Galli, a trained lawyer, served as UAL’s head of legal for more than 10 years. UAL said the appointment showed its commitment to recognizing and fostering talent within the organization.
“Her longstanding expertise in our very niche business in West Africa makes her the right candidate to strengthen our management team, and it will allow our group to further expand its services while maintaining our high standards. We are very happy to have her on our board, as we look positively to the future in these exciting times,” said CEO Roger Jungblut.
“I look forward to using my knowledge and contacts to encourage potential MyCrane clients to look afresh at the way they rent lifting equipment,” Brough said. “MyCrane lets its users take advantage of the benefits of digitalization. This saves everyone in the crane rental industry a considerable amount of time in finding the right crane for their next project, as well as comparing quotes in a uniformed way.”
NEOM Green Hydrogen Company
Wesam Alghamdi has been chosen as the new CEO of Saudi’s NEOM Green Hydrogen Company (NGHC), taking over from David Edmondson, who is returning to his post at Air Products. Alghamdi, who will transition into the role in January, has more than 25 years’ experience in Wesam Alghamdi engineering and project management, enjoying spells at companies including Maaden Aluminum Company, Sabic and Shell. NGHC, an equal joint venture between ACWA Power, Air Products and NEOM, is being billed as the world’s largest green hydrogen project. The plant, slated for start-up by the end of 2026, will deploy up to four gigawatts of solar and wind energy to produce 600 tons per day of carbon-free hydrogen in the form of green ammonia. Air Products has an exclusive 30-year off-take agreement for all the ammonia produced at the facility. “With full financial close on the plant, we are a significant step closer to revolutionizing the global energy market through the production of green hydrogen at scale,” said Nadhmi Al-Nasr, chairman of NGHC and CEO of NEOM. “The focus of the next two years at NGHC will be to complete the construction of the giga-scale facility for the operational phase of the project.”
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Online crane rental service MyCrane has picked Jason Brough as the new president of MyCrane USA. The Dubaibased tech platform said Brough, a former business development director at Mammoet, will use his extensive industry expertise in revenue generation, project management, and sales and marketing to drive take-up of the company’s services in the U.S.
Issue 1 2024
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Bolloré Logistics
Hapag-Lloyd
Bolloré Logistics has stuck with a familiar face by naming Jean-Baptiste Rambaud as the new CEO of Bolloré Logistics Middle East. Rambaud joined the Franceheadquartered company two decades ago, with the bulk of his career spent overseeing operations and commercial departments in several African countries. Jean-Baptiste For the last three years, the executive Rambaud has served as sales and marketing director for Bolloré Logistics Middle East and South Asia.
Hapag-Lloyd has named Lars Sorensen as its new senior managing director, Middle East. Sorensen, who joined the company in mid-2018 as head of Area India, previously enjoyed a lengthy spell at freight forwarder Damco – now part of Maersk – including three years as its CEO. The executive Lars Sorensen also worked at Maersk Logistics for more than a decade, focusing on projects and supply chain management.
Dubai-based Rambaud’s remit will include the launch of new projects to drive the company’s growth in several sectors including aerospace, healthcare, luxury goods, and food and reefer. “I am truly honored to take on this new role, and I am excited to lead the Middle East region toward even greater success. I have complete confidence in our existing teams. Together we will strive to further develop the immense potential of this region and will expand our operations to better serve our customers,” the executive said.
Sorensen replaces Dheeraj Bhatia, who has become a member of the Hapag-Lloyd executive board and CEO of the new Rotterdam-based Hapag-Lloyd Terminal Holding. “Sorensen joined Hapag-Lloyd five years ago and successfully led Area India as managing director, where he has proven his dedication, passion, and exceptional managerial skills, making him a natural fit for his new endeavor,” Hapag-Lloyd said.
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2024 BREAKBULK GIFT GUIDE New Year, New You!
On Cloud – Cloud X3 for men and women $139 Ultralight, highly reactive, with better fit and breathability. It’s born from running but made for everything. www.on-running.com
Hario Cold Brew Maker $32.50 Cold brewed coffee made easy! Place coffee grounds in the strainer, refrigerate for approximately 8 hours for the cold brew to complete. www.hario-usa.com
Papier 2024 Wonder Planner $35 Get the upcoming year in order with this planner that comes in a variety of colors. www.papier.com
Hatch Restore 2 $199 A better you starts with better sleep. Wake up with a sunrise alarm and go to bed with a single press of a button. www.hatch.co
ModiX Travel Ice Roller $9.99 Perfect for travel, this mini, double-sided ice roller helps depuff skin helping you feel fresh. www.amazon.com
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LARQ Bottle PureVis $49.95 The LARQ Bottle PureVis is the world’s first self-cleaning water bottle and water purification system. It eliminates up to 99 percent of biocontaminants from your water and bottle. www.livelarq.com
Olea Pia Duo Bimbo / Rosé Balsamic €40.00 Produced and bottled in Italy, this pair of gourmet pantry staples will transform your salads, sauces, marinades, and more. www.oleapia.com
Oura Ring From $299 Oura Ring may look like any other ring, but it’s full of technology. Track everything from sleep cycle, workouts, blood oxygen levels and more. Best of all, it doesn’t require daily charging. www.ouraring.com
BSIRI Wooden Puzzle set $39.99 Health isn’t just physical, it’s also mental! These nine wooden puzzles will put your mind to the test. www.amazon.com
Four Sigmatic Calm Starter Kit $68 These blends of calming herbs, adaptogens and botanicals support your body and your mind so you can think clearer, and feel more centered and mindful throughout your day. www.us.foursigmatic.com 23 Breakbulk Magazine
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Middle East
ALIA JANAHI: LEADING BY EXAMPLE
DP World Executive Offers Sound Advice to Young Professionals
A
t the heart of DP World’s incredible success overseeing a global network of marine terminals, industrial parks, and economic zones is a new generation of female logistics professionals ready to stamp their mark. Among this talented group helping to drive the organization forward with their energy, ideas, and technological savvy is 33-year-old Alia Janahi, vice president of DP World’s HSE operations in the Gulf Cooperation Council, or GCC. Despite her relative youth, Dubaibased Janahi has already spent 10 years at DP World, enlisting in 2013 as a graduate trainee, moving on to become manager of HSE of general cargo operations, then manager of
HSE at the company’s parks and zones division, culminating in her current role as head of the entire HSE department. A decade of hard work and dedication paid off when she was promoted this year to VP, leading a 60-strong team responsible for ensuring workplace safety and environmental compliance across DP World’s Middle East operations. “I’m happy that I was able to encourage other females to join a male-dominated field and change the stereotyping that revolves around women’s inability to lead and take on certain roles,” Janahi said in an interview with Breakbulk. “Due to our management support,
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By Simon West
we can now see Emirati females in various departments including HSE, operations, and engineering, which is a great achievement!” Janahi’s talents were recognized by the sector last year after she picked up the Maritime Standard Young Person in Shipping Award 2022, an achievement she dedicated to her colleagues in HSE. “It was a great honor to win the award and I’m proud to represent young Emiratis and females in this field,” she said. “Throughout my career I’ve been given opportunities and tremendous support from our senior management that has enabled me to be in this position. I’m continuously sharing the same with our new recruits
Middle East
– opportunities are available to all employees regardless of their gender or educational background if they are enthusiastic and committed.”
Nurturing the Next Generation
When it comes to creating a more inclusive workplace, DP World is not just “flying the flag.” Of the roughly 103,000 workers the company currently employs worldwide, about 17 percent are female; its goal is to increase that share to at least 20 percent by 2025. To achieve that, the group has launched several initiatives designed to support female professionals and boost their representation in the sector. The MentorHer program, for example, unveiled in 2018, gives all its female employees the opportunity to be mentored by a senior member of the organization. The target is to have 1,000 of its staff complete the program by 2030. DP World’s “Women on Board” initiative, meanwhile, prepares women for executive positions, with the company last year assigning 12 of its 33 board seats to females, a more-than 37 percent increase from 2021. A further 14 women have joined the program this year. DP World is also on a mission to support its young workers. The group this year unveiled the first phase of its “20XEL” talent development program offering young Emirati men and women the chance to develop their leadership skills in trade, logistics and supply chain management. Participants are given the opportunity to travel to other regions of the world, meet pioneers in their fields, and receive mentoring and guidance from DP World senior executives. For those about to embark on a career in the sector, Janahi, the first Emirati female to join DP World’s HSE department, offers some sound advice: “Enjoy the process! Things can be overwhelming at the beginning, but we should always remember to enjoy the
DP World’s “Women on Board” initiative prepares women for executive positions, with the company last year assigning 12 of its 33 board seats to females. Credit: Talal Berkdar
challenges and the learning experience. Never hesitate to ask questions. We can learn important lessons from all levels of staff whether it’s from a senior manager or a junior team member.”
Facing Up to the Challenge
Given DP World’s extensive portfolio of assets in the UAE alone – this includes Dubai’s Jebel Ali Port, the Middle East’s busiest shipping destination, and the Jebel Ali Free Zone, one of the world’s largest free zones – and the ever-greater pressure to incorporate green-friendly initiatives and digital solutions such as IoT sensors, drones, and artificial intelligence into HSE practices, it is hardly surprising that Janahi’s day is “never routine,” she said. When she’s not in the office checking emails, chairing meetings, and engaging with her team, the executive is in the field on planned and unplanned site visits, carrying out risk assessments, investigating incidents and getting to grips with the latest industry standards and tech offerings. “Our ultimate goal is to sustain a safe and healthy environment for our employees and stakeholders and protect the environment in all our locations. Therefore, we need to build on and strengthen our
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HSE culture in the organization to achieve this target,” she said. Janahi admitted her job could often be demanding; handling large-scale projects or responding to emergency situations with the right strategy and team support is no easy task. The role has also involved a lot of studying and in-field training, especially early on in her career. Like all good leaders, Janahi refused to shy away from the challenge. “That required great involvement, dedication, and a willingness to adapt and learn,” she said. “And I’m still learning.” DP World is the host port at Breakbulk Middle East 2024. The company will also be exhibiting in the main hall – you can meet the team at Stand F10. Colombia-based Simon West is senior reporter for Breakbulk.
AT BREAKBULK MIDDLE EAST WOMEN IN BREAKBULK: HOW TO BECOME A MORE INFLUENTIAL LEADER Tuesday, 13 February 10:00 – 11:00
Middle East
MIDDLE EAST HOPES HANG ON
HYDROGEN Region’s Green Hydrogen Obsession Here to Stay By Heba Hashem
DB Schenker Logistics Centre in Dubai, UAE. Credit: DB Schenker
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Middle East
W
ith record-low solar and wind power prices, established energy infrastructure and a strategic location for exports, the Middle East is well positioned to capitalize on the global shift towards clean hydrogen. These advantages could enable the region to capture a sizable share of the global clean hydrogen demand while helping them to meet their decarbonization goals. Globally, demand for clean hydrogen could grow to 660 million metric tons annually by 2050, according to research by McKinsey & Company. This capacity could potentially fulfill over 20 percent of global energy needs and help abate 20 percent of human-driven emissions. Countries across the Middle East have mapped out ambitious agendas to gain a strong foothold in the new green hydrogen economy. The United Arab Emirates, or the UAE, aims to produce 1.4 million tons a year (t/yr) of green and blue hydrogen by 2031 and expects the figure to increase tenfold to 15 million t/ yr by 2050. The country previously said it was eyeing a 25 percent global market share of low-carbon hydrogen by 2030. “We see the MENA region leading the development of green hydrogen. This is the energy hub of the world. There’s also the infrastructure to process energy molecules, the engineering capabilities, the shipping infrastructure - it’s all available and most of it can be utilized,” Dr. Nikunj Gupta, vice president of hydrogen studies at Abu Dhabi National Oil Company, or ADNOC, said during the Green Hydrogen Summit 2023 in January. Last year, ADNOC announced it was taking the lead role with a 43 percent stake in Masdar’s green hydrogen business. The Abu Dhabi state-owned renewable energy firm is targeting up to one million tons of green hydrogen production per year by 2030. Partnerships are key to developing the MENA region’s hydrogen economy, Gupta said. Other factors driving this market include the potential to sequester carbon due to the availability
Region: Middle East Problem: Regulatory certainty needed for planned green and low-carbon hydrogen investment to come to fruition Solution: Middle East governments pushing ahead with regulatory framework policies of port space and the potential to store hydrogen in salt caverns, he said. Regulatory certainty is also essential for business to proceed with green and low-carbon hydrogen investment and Abu Dhabi is moving ahead with a regulatory framework policy. The UAE capital plans to roll out a carbon certification framework for the hydrogen industry in 2024 and plans to apply it to both its production and use of hydrogen, Carlos Travesedo, energy policy adviser and executive director at Abu Dhabi Department of Energy, said to Arabian Gulf Business Insight. The regulatory authority has been drafting the certification and accompanying licensing schemes since 2022. With this framework, it will prepare the nascent hydrogen sector to become a tangible reality in Abu Dhabi to meet domestic demand and eventually to conquer some of the promising markets beyond the UAE.
Big Ambitions
Like the UAE, Saudi Arabia is targeting green and blue hydrogen production of 2.9 million t/yr by 2030 and 4 million t/ yr by 2035. Oman, too, aims to produce at least 1 million t/yr of renewable hydrogen by 2030, up to 3.75 million t/ yr by 2040 and 8.5 million t/yr by 2050. The country is on track to become the largest exporter of hydrogen in the Middle East by 2030, according to the International Energy Agency. As for Qatar, there are plans to build the world’s largest blue ammonia plant and bring it online by 2026. The US$1 billion facility would produce up to 1.2 million t/yr of blue ammonia, a fuel that can be shipped and
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converted into hydrogen by countries looking to reduce their carbon emissions. QatarEnergy’s affiliate, Qatar Fertiliser Company, awarded the EPC contract to a consortium of thyssenkrupp and Consolidated Contractors Company in 2022. Elsewhere in the region, Egypt aspires to produce 5.8 million t/yr of green hydrogen by 2040, capitalizing on an estimated 72 gigawatts, or GW, of solar and wind electricity, whereas Iraq has signed a deal with TotalEnergies to develop a pilot hydrogen project. The cost of producing clean hydrogen will be driven by the cost of feedstock and therefore, the cost of renewable energy, which in the MENA region is one of the lowest. “The Middle East has access to some of the highest availability of renewable energy in the world, which could mean costs are significantly lower than elsewhere. It is also ideally located geographically to supply expected import demand in Europe, South Korea and Japan,” Matthew Hodgkinson, hydrogen analyst at S&P Global Commodity Insights, told Breakbulk. As of November 2023, close to 50 clean hydrogen projects were being planned in the Middle East, according to S&P Global. Of these, two had broken ground, both in Saudi Arabia: the US$8.4 billion NEOM green hydrogen production facility which
AT BREAKBULK MIDDLE EAST OFFSHORE PROJECT LOGISTICS: DEMAND & SUPPLY Monday, 12 February 13:30 - 14:15 INDUSTRY DECARBONISATION: PROGRESS, CHALLENGES AND OPPORTUNITIES Monday, 12 February 15:30 - 16:15
Middle East
Electrolyzer Demand Outstrips Supply
Middle East: Selected Large Hydrogen Projects Project
Country
Platts normalized capacity (million mt/year)
Green Energy Oman Phase II
Oman
1.75
Green Energy Oman Phase I
Oman
0.58
Suez Canal Economic Zone Globeleq Phase II
Egypt
0.57
Duqm Special Economic Zone H2 Phase II
Oman
0.57
Suez Canal Economic Zone Masdar Phase II
Egypt
0.48
Ocior Energy SCZone H2
Egypt
0.40
Fortescue Future Industries Egypt H2
Egypt
0.33
H2Oman
Oman
0.32
Suez Canal Economic Zone Masdar Phase I
Egypt
0.32
East Port Said /LOHC Hydrogen Hub
Egypt
0.30
Suez Canal Economic Zone KK Power
Egypt
0.23
POSCO Consortium Duqm Green H2
Oman
0.22
Helios Green Fuels (NEOM)
Saudi Arabia
0.22
Source: S&P Global Commodity Insights Energy and Climate Scenarios, Inflections base case
Middle East: Clean Hydrogen Trade million mt 30 25
Supply Demand Exports
20 15 10 5 0
2030
2035
2040
Source: S&P Global Commodity Insights Energy and Climate Scenarios, Inflections base case
Rafael Vicens
is set to be the world’s largest once operational in 2026, and the US$12 billion Jazan IGCC Complex that will produce power, steam and hydrogen. The gigawatt scale of hydrogen development in the region will require a substantial capacity of renewable power, electrolyzers and compressors, all which are fueling huge project cargo opportunities. In the UAE, Masdar announced in October the country’s first utility scale wind project, comprising four power plants that will together generate a total of 103.5 megawatts.
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Electrolyzers, which are powered by renewable electricity, are a key component of green hydrogen systems. Electrolyzer systems vary in size, but for industrial-scale green hydrogen projects such as those under planning in the Middle East, they will be large-scale, central production facilities that can be tied to renewable electricity production. Rafael Vicens, head of global projects and industry solutions for the Middle East & Africa at DB Schenker, told Breakbulk that most of these systems will need to be shipped from outside the Middle East. “Electrolyzers are still not produced locally. They come mostly from Europe. Now China is trying to develop their own electrolyzers. But the market is currently dominated by European electrolyzer manufacturers. “Electrolyzers [can be] oversized and overweight but it depends on the manufacturer. We cannot standardize electrolyzers because each manufacturer builds them in different dimensions and weight. The challenge with these electrolyzers is that there is more demand than supply. There aren’t even enough electrolyzers for all the green hydrogen projects in the Middle East; there is a waiting list.” The region’s first solar-driven hydrogen electrolyzer has been deployed at the testing facilities within the Mohammed Bin Rashid Al Maktoum Solar Park in Dubai and was supplied by Siemens Energy. Another German company, thyssenkrupp, is supplying an electrolysis plant with a capacity of more than 2 GW for the NEOM green hydrogen project, the logistics package for which has yet to be awarded. By 2040, the Middle East and North Africa region’s hydrogen electrolyzer capacity is expected to be the second largest worldwide, accounting for 20 percent, or 59.8 GW of the 300 GW projected installed global capacity,
Middle East Aerial view showing construction progress in NEOM in 2023. Credit: Neom Media
are in discussions with the EPCs who are going to quote for the developers, so we’re helping them to quote for their clients,” Vicens said. “From the moment the government announces a project to the time we can start quoting, it can be easily two years.” Moreover, because hydrogen and wind projects are new territory for most Middle East countries, there are logistical challenges that need to be dealt with. For example, in Saudi Arabia where NEOM is driving a lot of logistics activity, there is not enough fleet to cope with the demand. “When you come with the equipment, you Air Products awarded thyssenkrupp a contract to install a more-than 2GW electrolysis plant at NEOM. might not find fleet available for Credit:thyssenkrupp. you to move. Or maybe you quoted US$1,000 last year, but now because according to data from Norwegian local electrolyzer manufacturing in the there is a scarcity in fleet, the consultancy Rystad Energy. Middle East. “The only announcement price has gone up to US$3,000 so It remains unclear whether project we’ve seen here is John Cockerill you’re out of the budget. Because developers will source electrolyzers considering opening an electrolyzer there’s not enough fleet in the from further away markets to try factory in the UAE in partnership with Saudi market, prices of existing and take advantage of lower costs. ADNOC and Strata,” Hodgkinson said. ones are going up,” said Vicens. “For the time being, a lot of Additionally, the Saudi market developers are using more localized Lack of Fleets, Warehouses lacks trucking trailers to transport original equipment manufacturers, While many announcements have wind turbine blades, nacelles and but the emergence of China as an been made, most of the region’s clean other vital components required for electrolyzer manufacturer may mean hydrogen projects are still at an early the upcoming projects, he said. “What project developers seek equipment stage and deals are only expected we’re doing as a contingency plan is from further afield,” Hodgkinson to start happening from 2027. that, in the event we are awarded, we’re said. DB Schenker has already quoted bringing the equipment from outside.” At the same time, there hasn’t been for clean hydrogen projects in Saudi The lack of warehouses to store a lot of development when it comes to Arabia, UAE, Oman, Qatar and Iraq. “We inbound cargo is another challenge
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Middle East
“I THINK IN THE UAE, THE SOLUTION WILL BE TO GO OFFSHORE AND CREATE ISLANDS FOR THE WIND AND SOLAR FARMS, IN THE SAME WAY THEY ARE CREATING ISLANDS FOR OIL AND GAS EXTRACTION.” - RAFAEL VICENS Vision for the 27 MW Wind Farm on Delma Island in Abu Dhabi, one of four planned wind power projects in the UAE. Credit: Masdar.
at NEOM. With limited space at the city’s port, cargo arrivals may end up blocking the port or incurring unanticipated storage fees. “This must be well planned because there aren’t enough warehouses. Usually, it is the logistics providers who build these warehouses and there are also companies specializing in warehousing. We have warehouses in the UAE, Egypt, Saudi Arabia and Qatar and we’re expanding to have them in Oman,” Vicens said. On the flip side, apart from sensitive equipment and tools, most large components including wind turbine blades and nacelles, as well as hydrogen tanks, steel modules and electrolyzers, can be stored in open yards that are fenced and equipped with security, according to Vicens. In the UAE, the main challenge with developing large-scale projects is the limited land availability. Dubai, for example, has already expanded all around the coast and can now only expand inland into the desert. “They will reach a point when they won’t be able to do those mega solar projects because they will not have sufficient land. So, I think in the UAE, the solution will be to go offshore and create islands
for the wind and solar farms, in the same way they are creating islands for oil and gas extraction,” Vicens said. Meanwhile, in Iraq, challenges of clean hydrogen development range from damaged power infrastructure to a longstanding electricity crisis. “There are still deep issues to fix in Iraq and that makes us cautious. The country is not stable enough to carry out the developments they want. We’re talking about renewable energies here and there are parts of Basra that still don’t have water or electricity,” Vicens said.
UAE’s only multipurpose port on the eastern coast, the Port of Fujairah is strategically important and enables the UAE to bypass the Strait of Hormuz. AD Ports Group’s Fujairah Terminals, which operates the port, handles some of the most complicated shipments. It recently accepted 80-meter-long blades for windmills and delivery of three 528-ton gas turbines. The company has connections to China and is looking at increasing its ties with Asia to enhance cargo traffic. With the availability of low-cost renewable energy and the development of port infrastructure, the Middle East has the best of both worlds to kickstart a green hydrogen economy. “The Middle East’s green hydrogen ambitions are very important for the transition and energy independence,” Vicens said. “For me the most exciting aspect will be to see how governments in the region transform their economies to depend on green hydrogen and renewables rather than fossil fuels, because that will be very challenging.””
Port Expansions
Across the GCC region, seaports are undergoing major expansions to meet their countries’ future requirements. NEOM for instance has invested more than US$2 billion to date in developing its port and anticipates the first container terminal to be open in 2025. The redevelopment of the port spans terminals, warehouses, rail delivery, infrastructure and a sustainable energy network. In the UAE, the Port of Fujairah on the Gulf of Oman underwent a US$272 million expansion that was completed in 2021. As the world’s third-biggest bunkering hub and the
Heba Hashem is an Arabic and Englishspeaking freelance journalist based between Dubai, UAE and Niagara Falls, Canada. *Exhibitor at Breakbulk Middle East
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CONNECTING MARITIME PEOPLE
PRINTED ADVERTISING EMAIL MARKETING E-NEWSLETTER ADVERTISING MOBILE ADVERTISING WEBSITE ADVERTISING SOCIAL MEDIA MARKETING
Middle East
IS SAUDI READY FOR
FULL-SCALE WIND PROJECTS? W
hen Saudi Arabia announced its National Renewable Energy Program, or NREP, in 2016, virtually all of its electricity was generated from fossil fuels. In 2021, less than 0.1 percent of the country’s energy mix came from renewables, according to Climate Transparency. However, Saudi Arabia plans to take this figure up to 50 percent by 2030 with the development of 58.7 gigawatts, or GW, of renewable energy capacity, of which 16 GW
would come from wind turbines. With immense resources thanks to its long coastline and large deserts, the country is well positioned to become a role model for wind energy development within the Middle East. Three wind power projects totaling 1,800 megawatts, or MW, are now in planning under Round 4 of the NREP. These include the 700 MW Yanbu Wind Farm in Al Madinah, the 600 MW Al-Ghat Wind Farm in Riyadh, and the 500 MW Waad Al Shamal Wind Farm
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By Heba Hashem
in the Northern Borders region. All three projects are owned by Saudi Power Procurement Co., or SPPC, a government company responsible for the tendering of renewable and conventional energy projects. SPPC announced the prequalified bidders for these projects in November 2022, which consisted of 18 industry heavyweights, including Masdar, TotalEnergies, EDF, PowerChina, Vestas, Marubeni Corp., and Toyota Tsusho Corp.
Credit: Shutterstock
Kingdom Gears Up for Gigawatts of Wind Power
Middle East
The bidding process is expected to begin after SPPC’s evaluation and selection of qualified bidders. Saudi Arabia also plans to build a 500 MW floating offshore wind farm through a collaboration between Italian energy group Saipem and UAEbased renewables investor Plambeck. Saipem, which had signed an exclusive agreement with Plambeck in 2019 for the development and construction of the wind farm, expects to undertake the engineering, procurement and construction of the project after financial agreements are finalized. According to GlobalData, which tracks over 170,000 power plants worldwide, construction on the project is likely to commence in 2024 and it is expected to enter into commercial operation in 2027. It will be developed in a single phase and will see turbines mounted on floating wind foundations. In the new city of NEOM on the west coast of Saudi Arabia, another wind power project with a capacity of 1,670 MW is underway. Together with solar energy, the wind turbines will power a massive green hydrogen production facility that is being developed by a joint venture of NEOM, Saudi utility Acwa Power, and U.S. industrial gases producer Air Products. Meanwhile, Civil and Electrical Projects Contracting Co., or CEPCO, a 45-year-old company based in Saudi Arabia, is involved in a wind-solar hybrid project that will be the first of its kind in the Kingdom. Strategy and business development lead Waqass Altaf told Breakbulk that CEPCO was supporting the country’s wind projects in civil works and electrical infrastructure, and that it usually brings logistics specialists into the discussion at tender stage. With no commercially operating wind farms, Saudi Arabia has been gaining operational experience of wind installations by running small demo plants. For instance, the 2.75 MW GE wind turbine commissioned by Saudi Electricity Co. in the town of Huraymila
has been operating since 2019. Similarly, the 2.75 MW GE turbine installed for Saudi Aramco at its Turaif oil storage depot has been running since 2017. Saudi Aramco has renewable energy ambitions of its own. In its 2022 sustainability report, the state-owned oil giant said it would be investing in more than 12 GW of solar and wind energy by 2030. With the country’s first wind farm, the 400 MW Dumat Al Jandal, approaching commissioning, local industries are becoming more familiar with the development and delivery of such projects. Located in the Al Jouf region of north-western Saudi Arabia and featuring 99 Vestas wind turbines, the wind farm is being developed by the UAE’s Masdar and EDF of France. The project made headlines in 2019 for achieving a world recordlow levelized cost of electricity of US$1.99 per kWh for onshore wind.
AT BREAKBULK MIDDLE EAST SAUDI ARABIA SPOTLIGHT: PROJECT UPDATE Monday, 12 February 14:30 - 15:15
turbines, and roads and tracks must meet the required standards to be fit for the transportation of the same. Additionally, the availability of skilled labor will be critical for the handling of these components,” Gianmaria La Porta, executive vice president and group director for energy and climate protection at ILF Group, told Breakbulk. The international engineering and consulting firm was recently assigned a contract to conduct pre-development studies for four large wind farms Logistical Challenges in Saudi Arabia. The scope of work Wind energy remains a new territory for includes site assessment, preliminary Saudi Arabia, with logistical challenges and advanced design, environmental ranging from limited port capacities to and social impact assessment, and an finding skilled workers in the country. equipment transportation study. ILF “The landing port must have will support its client until the projects sufficient space to store the quantity reach maturity and are ready for of blades and other parts of the wind tendering on a design-build basis.
The Port of NEOM, formerly Duba Port, is being expanded to handle the rising volume of cargo coming into the new city. Credit: NEOM
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Aramco and GE executives, local dignitaries and business leaders pose in front of the first wind energy turbine in Turaif, Saudi Arabia in 2017. Credit: Aramco
“We are carefully planning on behalf of our client, ahead of time. We are identifying the needed infrastructure reinforcements including the required access roads, the blades trajectories on the main roads, and the reinforcements required,” said La Porta. While Saudi Arabia is full of treacherous deserts, certain regions pose additional challenges. For example, Tabuk, where the city of NEOM is being built, is known for its rugged, mountainous terrain that can be challenging for truck fleets hauling heavy and oversized cargo. With all wind turbine components set to come from overseas, Saudi Arabia’s ports will need to be prepared for such a mammoth endeavor. According to Altaf, the country’s ports generally have limited capacity for handling wind turbines. “Only Jeddah and Dammam’s ports can handle large shipments, which adds
[to the] cost of logistics,” he said. Meanwhile, the Port of NEOM, formerly Duba Port, is being expanded to handle the rising volume of cargo coming into the new city. NEOM said last May it had invested more than US$2 billion in re-developing the port and expanding its capabilities, with the first container terminal set to open in 2025. “The Port of NEOM was used for the Dumat Al-Jandal Wind Power Plant. Therefore, there aren’t any problems expected with the actual infrastructure. Some modifications are being performed in order to increase the capacity and facilities at the port,” La Porta said. All in all, logistics support is becoming more sophisticated in the Kingdom, according to Dharmendra Gangrade, head of the logistics management center at Indian conglomerate Larsen & Toubro, or L&T.
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“Lately, logistics activities in Saudi Arabia have improved significantly and the government has been supportive in import customs clearance. However, engaging an established Saudi-based agency ensures all processes are completed smoothly in a timely manner. We already have a long-term engagement with a local logistics agency to ensure rapid clearance with full compliance.” Dharmendra Gangrade
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Saudization Rules
clearance activities. Local staff are also familiar with country-specific requirements and help break down language barriers,” Gangrade said. Saudization hiring requirements vary depending on the industry and size of the company. For example, as a provider of engineering services in the Kingdom, ILF has to meet a 45 percent localization rate. The company has been using different strategies to recruit the best local talent in middle and senior positions. “Our Stewardship Program for young engineers for example is tailored to bridge the gap between theoretical learning at the university and real-world engineering applications. The program puts strong emphasis on fostering innovation, problem-solving, and effective collaboration. Its participants engage in rigorous technical training, handson project assignments, and are receiving invaluable mentorship from skilled professionals,” said La Porta. For Kuehne+Nagel, the focus has been on engaging the local community by introducing a training program for Saudi Arabian graduates, providing on-the-job training to new employees and ongoing training to national employees at the company’s offices in Riyadh, Jeddah, Dammam, and Tabuk. “In addition, we have asked our subcontractors to give preference to Saudi Arabian nationals wherever possible, and we are actively
The skilled labor that is needed for the expansion of Saudi Arabia’s wind energy sector remains a challenge. That, combined with the government’s Saudization policy, and the fact that the national population is generally young, makes it even more difficult to find experienced workers. The Saudization policy aims to reduce the Kingdom’s over-reliance on expat workers and increase employment opportunities for Saudi nationals. The campaign has been ongoing since the 1980s, but it has been implemented more strenuously since 2011, when the government introduced quotas for the minimum share of Saudi employees in a firm’s workforce. These quotas range from 5 percent to 100 percent, according to recruitment agency James Douglas Middle East. Companies below the quota face constraints in hiring expat workers, as well as in opening new locations and bidding on government contracts. Whereas companies above the quota receive benefits in terms of expedited visa services and access to expat workers. “Saudi Arabia’s localization rules actually help with logistics activities that are performed within the Kingdom. Local staff add value to the team by managing shipment progress within the country, especially at the port of discharge and in customs Orient Heavy Haulage completed transport of Vestas V150 components from Duba port, now the port of NEOM, to Dumat Al Jandal Wind Farm in Saudi Arabia. Credit: Orient Heavy Haulage
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Michael Doerpinghaus
monitoring how they engage in providing jobs for the local NEOM community,” said Michael Doerpinghaus, global head of industrial projects at Kuehne+Nagel. As the NREP’s wind power tender advances and bidders are selected for the three utility-scale projects, this will create opportunities for the breakbulk and project cargo industry. It is also worth keeping an eye on projects outside the NREP rounds, including Saudi Aramco’s renewableenergy plan, and the Saipem-Plambeck offshore wind farm. With just seven years left for Saudi Arabia to achieve its 16 GW wind power capacity target, the pace of activity is likely to pick up significantly in the coming months. Heba Hashem is an Arabic and Englishspeaking freelance journalist based between Dubai, UAE and Niagara Falls, Canada.
Middle East
MOROCCO’S AMBITIOUS
WATER PROGRAM Navigating Challenges, Unveiling Opportunities By Liesl Venter
Water highways connecting existing dams to cities in Morocco are an avenue for project work. Credit: Shutterstock
I
n Morocco, significant changes are on the horizon as the country rolls out – and speeds up – a massive water program with an even bigger budget. As the nation faces its most severe drought in four decades, it has recognized the urgency to significantly enhance efforts to deliver water to the kingdom. In 2020, it launched its National Programme for Potable Water Supply and Irrigation, or PNAEPI, 2020-2027. However, the imperative at present is to expedite projects and advance programs as quickly as possible, given the ongoing decrease in rainfall. With a population exceeding 37 million and an economy heavily reliant on agriculture, ensuring water availability is a paramount concern. Morocco is a climate hotspot among the world’s most water-stressed countries. The pressing issue of water scarcity imposes substantial economic constraints, and the situation is anticipated to intensify as the country
nears the critical threshold of 500 cubic meters of water per person per year by 2030. The looming specter of climate change is expected to compound and trigger cascading effects on Morocco’s water security. It is not just about quenching thirst as the water program is considered a game-changer for the North African country to tackle climate change and deliver sustainability. This is all good news, particularly for the project cargo sector, considering the substantial quantities of goods that must be transported to facilitate water flow.
Emerging Projects on Horizon
As part of the broader National Water Plan, the PNAEIP is budgeted at US$40 billion and focused on the supply of potable water and irrigation until 2027. It encompasses building new dams, desalination plants, transferring water
resources, exploiting underground aquifers, reusing treated water, and improving water distribution in rural areas. For example, the country is planning to construct Africa’s largest seawater desalination plant. In July, the World Bank approved a US$350 million financing package to support Morocco’s water program, focusing on improving governance in the water sector, promoting efficient water use, and leveraging non-conventional water resources. Ahmed Sokkar, head of DHL Industrial Projects North Africa, told Breakbulk the project sector was booming in Morocco with several projects taking off. “The government is building 18 new dams to increase water storage capacity. These new dams will raise the country’s capacity from 19 billion cubic meters in 2020 to 27 billion cubic meters once completed,” he said. The country also has various irrigation projects to efficiently use
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water resources for agriculture. “These projects often involve the construction of canals, reservoirs, and infrastructure to improve water distribution,” Sokkar said. The construction of desalination plants in the country has been another exciting development, with the government eyeing these projects as a strategic solution to combat water scarcity in specific regions. The country aims to expand its desalination capacity with nine additional plants expected to be operational by 2030. The Agadir region has progressed desalination projects to provide a reliable source of fresh water. A different desalination facility is currently being built in Dakhla, within the portion of Western Sahara under Moroccan control. This US$880 million desalination unit is being developed through a public-private partnership, or PPP. The plant will be powered by windgenerated energy and provide water for urban distribution and irrigation. The Agadir Desalination Plant, with an initial capacity of 275,000 cubic meters daily, is also being built under a PPP agreement for US$460 million. The project design allows for a capacity expansion of 400,000 cubic meters daily. This seawater desalination plant will supply drinking water to 2.3 million people by 2030. Currently under study is a desalination plant for the Moroccan capital of Casablanca with an estimated 300 million cubic meters per year capacity by 2030. It will require an estimated US$868.3 million. Sokkar says the Morocco-Marrakech region water supply project is another positive development to ensure a
Region: Africa Problem: Severe droughts have forced Morocco to find alternative means for hydration Solution: Construction of water highways and desalination plants will bring water projects to the fore
consistent potable water supply to Marrakech city and its surrounding urban areas, sourced from the Al Massira dam. “There are also several interconnection projects between hydraulic basins, often referred to as “water highways,” that also bear mentioning. These aim to transfer water from areas with surplus to those with deficits, improving water access and security.” Over and above the investment in the water sector, the country has also been investing heavily in renewable energy, including solar power. The Noor Ouarzazate Solar Complex is one of the world’s largest solar power plants. It reduces the water used in traditional electricity generation, as it uses solar energy. Then there are the ongoing developments in the hydrogen sector as the country envisions becoming a major global exporter.
Significant Opportunities
“The current situation in Morocco presents significant opportunities for the expansion of the project logistics and the breakbulk sector,” Sokkar said. “This growth is expected to trigger a cascade of transportation needs and the establishment of new firms and suppliers. Consequently, there will be numerous opportunities for transporting equipment through breakbulk or charter solutions.” Navigating any large-scale cargo movement in Africa poses challenges due to existing infrastructure limitations, making transportation a complex undertaking across the continent. Morocco is no different. There are fears that ports, roads, and railways may need to be developed or equipped to handle large-scale cargo and breakbulk shipments. “It’s important to acknowledge that the government is actively upgrading ports to address these infrastructure limitations,” Sokkar said. According to Moataz Aly, global key account manager at HPC-Hamburg, the increasing number of water projects
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AT BREAKBULK MIDDLE EAST MENA PROJECT OVERVIEW Monday, 12 February 10:45-11:15 has heightened interest in Morocco as a business destination made only more alluring by the relatively modern and diverse logistics infrastructure. “It hosts various port and terminal operators, both local and foreign, including major international hubs like Tanger-Med and multipurpose terminals in Casablanca. Additionally, ongoing port developments in Nador and Dakhla contribute to its appeal,” he told Breakbulk. Youssef Errachdi
Youssef Errachdi, executive, key accounts pricing & procurement at TRO, the exclusive agent for DSV in Morocco, said it was not only the port infrastructure but also the extensive road and rail networks in the country that made delivering these projects far less challenging than would be the case in many African jurisdictions. Inadequate infrastructure for transporting goods remains one of the significant obstacles facing the project cargo sector across Africa. “Morocco has a solid infrastructure with a railway network connecting Tangier to Casablanca and Casablanca to Marrakesh. Continuous investments
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Investment in port handling in Morocco, including at Tanger-Med (pictured), is facilitating project moves. Credit: Tanger-Med
in the modernization and expansion of roads are delivering a highly efficient transportation system for moving cargo throughout the country,” he said. According to Aly, Morocco’s freight forwarding sector will adeptly manage the rising number of projects with little difficulty. “Morocco boasts some of the most modern ports in Africa, operated by international and local alliances. While breakbulk and project cargo volumes face seasonality challenges, any difficulties in accommodating certain commodities and parts through existing facilities have a minimal impact on project deliveries. Anticipated future growth in breakbulk and project cargo volumes will be handled by the new port developments and expansions that are taking place.”
Overcoming Hurdles
More concerning than infrastructure is the availability of specialized equipment such as cranes, heavy-lift trucks, or trailers, as these are limited in specific areas of Morocco. This constraint can affect the efficient handling of project cargo and breakbulk shipments, demanding meticulous planning and coordination to ensure access to the required equipment when needed, Sokkar explained. Also, extensive customs procedures and documentation can present red tape as the requirements sometimes
demand more time and effort. A deep understanding of Morocco’s local customs regulations is essential for effectively managing this challenge and avoiding delays, Errachdi said. Language barriers are another concern. “Effective communication is pivotal in the logistics industry, and overcoming the language differences in Morocco will be crucial to avoiding misunderstandings and delays,” Sokkar said, highlighting that none of the challenges faced by forwarders were insurmountable. “Morocco’s ongoing commitment to infrastructure development and improvements in the logistics and transportation sector is promising. Continued investments and enhancements, coupled with proactive industry engagement, will contribute to overcoming these challenges and further unlock Morocco’s potential as a hub for project cargo and breakbulk shipments.” According to Aly, water projects represent just one facet of Morocco’s highly optimistic economic outlook. He anticipated a surge in imports and exports, surpassing global averages, with Northern ports poised to attract increased transhipment volumes, aligning with the latest market forecasts. The country’s stable political and governmental environment and advancements in anticorruption rankings underpin
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this growth. Nonetheless, Aly noted that the recent global economic downturn may exert pressure on the value of the Dirham, potentially impacting the standard/cost of living. Sokkar agreed, highlighting that the nation is witnessing significant trends, particularly in diversified energy sources and investments in renewable energy. The country is actively diversifying its energy sources, marked by projects such as the construction of seawater purification facilities, gas power stations or solar power plants. “The nation has made substantial strides in modernizing its ports and expanding its road and rail networks, all aimed at enhancing overall logistical efficiency. In line with this ongoing initiative, Morocco is initiating a new railway project linking Marrakech to Agadir. Noteworthy developments include establishing new ports in strategic coastal regions like the Dakhla, Laayoune, and Nador ports, underscoring Morocco’s dedicated efforts to expand and enhance its logistics capabilities. “Anticipated to play a pivotal role, these infrastructure investments are set to fortify Morocco’s standing as a key player in regional and international trade,” Sokkar said. Liesl Venter is a transportation journalist based in South Africa.
Middle East
The UAE is investing in space projects. Credit: Mohammed bin Rashid Space Centre (MBRSC)
By J Sivan
UAE ECONOMY READY FOR T
LIFT-OFF
Boom from Economic Diversification and Industrial Development Strategies he United Arab Emirates’ economy has experienced rapid growth due to its effective response to the Covid-19 pandemic, as well as previous reforms that have made it more business friendly. The country has set goals of doubling its economic growth within the next decade and becoming one of the top three global economic centers. To achieve this the government has unveiled various sustainable plans worth US$8.7 trillion spanning from 2023 to
2030. Those plans aim to boost trade, attract investment and solidify the UAE’s position as a leading hub. Moreover, the ‘UAE Net Zero by 2050’ strategy will shift focus on industrial development that could transform its economic structure and growth potential. Major sectors that are expected to undergo structural changes as a result of infrastructure and capacity expansion are discussed in this article. Regarding oil and gas, the oil sector contributes 50 percent of GDP in Abu
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Dhabi. Abu Dhabi National Oil Company has announced its commitment to invest US$150 billion over five years to boost oil and gas production in support of an “accelerated growth strategy.” This movement reflects the UAE’s ambition to significantly enhance its oil and gas output. Notwithstanding its goals on mitigating climate change and aiming for “net zero” emissions, the UAE government is actively pursuing initiatives in the oil and energy industry. For electricity and renewable energy,
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AT BREAKBULK MIDDLE EAST
Transportation Mobility Management Strategy aims to enhance transportation connectivity by focusing on the development of infrastructure, regulations, and technological progress. This strategy will significantly impact transportation options like buses, metro services, and taxis. The rail network of the UAE will play a vital role in the US$100 billion GCC rail project that aims to the UAE has set some targets for energy connect Saudi Arabia, Qatar, Kuwait, and sustainability initiatives in the Bahrain, and Oman with the UAE. coming years. The UAE government Turning to chemicals and aims to generate more than half of petrochemicals, the chemical industry its electricity from clean sources by mainly concentrates on manufacturing 2050 with a focus on solar photovoltaic petrochemicals, with the goal of power. Additionally, the UAE plans to achieving zero carbon dioxide collaborate with participants of the emissions. The UAE aims to produce 28th United Nations Climate Change 1.4 million tonnes of hydrogen per Conference (COP28) to enhance year by 2031 and 15 million tonnes by hydrogen production and triple the 2050. The industry’s growth is fueled capacity of energy resources by 2030. by an increase in refining capacity The National Energy Strategy aims due to a rise in consumption. to triple the capacity of energy to 14 On construction and civil GW by 2030 and forms part of Dubai’s engineering, due to the existence of Clean Energy Strategy for 2050. global companies, the construction industry in the UAE has become highly Mining and Transportation competitive. It is estimated that after With mining and mineral extraction, experiencing a 2 percent growth the minerals and metals industry is rate in 2022, the UAE’s construction expected to experience a growth rate of sector will grow by 3.3 percent next more than 3 percent and reach a value of year in terms of economic value. As US$10 billion by 2025. This growth can an example, the Hatta Hydroelectric be attributed to the increasing demand Power Plant is a US$387 million from sectors such as infrastructure, project under construction by the construction, and building materials. Dubai Electricity and Water Authority As a result of this development, the (DEWA). This growth will be driven by mining sector’s contribution to the investments in energy initiatives to non-oil GDP of the country is projected achieve the country’s net zero goal to increase by 5 percent by 2030. by 2050, expansion of the real estate For transportation infrastructure, sector, and increased integration. the UAE is striving to create an enduring With regards to defense and future by focusing on innovation, space, the UAE is actively investing infrastructure development, and in the defense sector focusing on renewable energy. It has initiated developing its weapons and advanced the Etihad Rail project, which aims autonomous aerial systems. It is also to connect 11 cities across the seven making progress in space science emirates of the UAE. The objective and exploration with several exciting of this project is to transport over projects lined up. After a failed first 36.5 million individuals and 60 attempt in 2023, the UAE aims to million tons of goods by 2030. achieve a milestone as the first Arab By 2030, the Abu Dhabi nation to land a rover on the moon. In
MENA PROJECT OVERVIEW Monday, 12 February 10:45 - 11:15
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September 2023, the UAE completed the longest ever Arab space mission when an Emirati astronaut finished a six-month mission to space. To support these endeavors, a national investment and development fund worth Dh3 billion (US$817 million) was established in 2022 for the space sector. This fund will facilitate initiatives between Emirati companies in engineering, science, and research applications.
Challenges in Meeting Project Demand
Project cargo movements require precise planning and expertise to be executed on time without any complications. Economic diversification and industrial expansion initiatives are expected to increase the demand for project logistics through to 2030. Service providers need to overcome some of the complexities associated with transporting project equipment to the sites in a timely manner. Some of the challenges associated with project cargo are noted below. First, the cost of transportation and logistics services is increasing in the UAE due to factors like fuel prices, taxes, and labor costs. This can pose difficulties for businesses in cost-effectively moving their goods. Fluctuations in fuel prices can also make it challenging for companies to effectively plan and budget their transportation and logistics expenses. Second, the logistics industry in the UAE often faces a scarcity of workers which can impact the handling and management of project cargo. To address this issue, companies may need to invest in training programs and initiatives that focus on developing workers’ skills. Third, implementing logistics practices, such as reducing emissions and optimizing routes can be quite challenging when dealing with project cargo. Logistics companies might have to invest in fuel sources and advanced
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Sheikh Mohammed bin Rashid, vice president, prime minister and ruler of Dubai, announces the completion of the UAE National Rail Network. Credit: Etihad Rail.
technologies to overcome this hurdle. Four, finding warehousing facilities for project cargo can be a challenging task in the UAE, especially when dealing with large, heavy, or delicate items. Companies may need to explore specialized warehousing solutions for storing equipment with electronic components, which are sensitive to weather conditions.
Opportunities in Project Cargo
Service providers need to invest in advanced logistics infrastructure to effectively manage large pieces of project cargo. When choosing the mode of transportation, businesses should consider multiple factors such as size, weight, time constraints, and financial considerations. To ensure the efficient handling of project cargo, logistics service providers need to offer tailored logistics solutions with capability
to handle oversized cargo items. Adoption and use of specialized trucking systems with adequate storage facilities for handling these heavy-lift and oversized cargo items. In addition, other support services such as lashing, crating, and packaging for oversized freight items need to be integral to offerings to minimize the damages. To ensure that the project site is ready ahead of time, logistics companies should carry out monitored procedures to handle everything meticulously. This includes inspecting goods before they are transferred and after they reach their destination, personally overseeing the cargo handling process, and coordinating with the recipients of the cargo. The rise of industries such as mining, oil and gas, and construction, which employ convergent assembly manufacturing methods, influences the need for project cargo logistics.
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This presents an opportunity for logistics companies to meet the requirements of these sectors and capitalize on the increasing demand for project cargo services. As part of its Economic Vision for 2030, the UAE is actively diversifying its economy away from reliance on oil and gas with increased emphasis on the petrochemical sector. Autonomous transportation envisions transforming its transportation system into a mode by leveraging data, artificial intelligence, internet connectivity, quality standards, and innovative technologies by 2030. COP28 and commitment to reach net zero by 2050 are expected to shift the focus on the energy and environment sector. The project logistics segment is expected to benefit from these developments and is likely to witness accelerated growth through to 2030. J Sivan is a senior consultant in Frost & Sullivan’s Supply Chain & Logistics Practice.
Middle East
Rathath Boulevard project is planned to feature the Salalah Eye Ferris wheel. Credit: Oman News Agency
TRANSFORMING OMAN’S CITYSCAPE Sultanate Embarks on a Series of Mega Construction Projects
O
man’s planned establishment of mega urban developments has seen dozens of contracts awarded in recent months as the country looks to develop future-ready, climate-resilient cities. Guided by the strategic directions of Oman Vision 2040, a blueprint for the country’s future development, the Ministry of Housing and Urban Planning has started working with international companies on the sustainable development of these new cities. The first of Oman’s futuristic projects, Sultan Haitham City, will
house 100,000 people when completed by 2045. Announced in May 2023, the metropolis will comprise 19 neighborhoods across 2.9 million square meters of undeveloped land in Al Seeb, a suburb of greater Muscat. The city will introduce public spaces and more than 20,000 new homes constructed with local materials, while connecting with a new mass transit system that is set to improve connectivity along the country’s coastline. “Sultan Haitham City in Muscat Governorate is based on the outcomes of the Oman National Spatial Strategy,
the urban guideline for the next 20 years. The project aims to establish a new model for the sustainable development of cities that caters to the aspirations of young people,” a spokesperson the Ministry of Housing and Urban Planning told Breakbulk. As the country’s first smart city, the project will incorporate sustainable strategies and technologies such as advanced traffic management systems. The masterplan also involves transforming a 7.5-kilometer-long dry river into a public green park that can hold water in severe flood events.
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Project Partners
London-based architecture firm Skidmore, Owings & Merrill is designing the mega city, which will be carried out in four phases. Other project partners include Singapore-based Meinhardt Group, the engineering consultant, and Canadian firm MT Planners, the landscaping consultant. In addition, Maxwell Cavendish, a United Arab Emirates-based chartered surveying firm and property consultancy, carried out the financial feasibility study for the project, the Ministry spokesperson said. Construction on the city is set to start in 2024 and preparations are moving rapidly, with the housing ministry signing agreements with two developers in June: Oman’s Al-Siyabi International Group and Qatar-based Ariane Real Estate. As of June 2023, the housing ministry had signed development and partnership agreements worth more than US$3.1 billion for the new mega city, Muscat Daily reported. In November, the ministry floated two additional tenders, for enabling works and construction of residential units. Most of the contracts with international firms were awarded through Oman’s investor-friendly public private partnership, or PPP, law, which came into force in 2019. Moreover, in May 2023, the government rolled out the Oman Future Fund, an investment fund with a capital of US$5.2 billion, to encourage the private sector to enter partnerships and finance feasible investment projects within the Vision 2040 framework. According to Oliver Cornock, editor-in-chief at global advisory and research firm Oxford Business Group, Oman’s recently improved PPP law will be key in helping to boost inflows for upcoming projects, including the sizeable infrastructure expansion works taking shape. “Many of these transport initiatives, including planned ports, roads and airports, are supporting Oman’s plans to develop its tourism industry and attract
investment for the manufacturing segments, which, in turn, will broaden the economic base,” Cornock said.
Three New Mega Projects
The Ministry of Housing and Urban Planning is also moving forward with three other mega projects: Rathath Boulevard in Dhofar, Aames Bay in Musandam and Rimal Park in South Batinah. It selected these projects in June 2023 from 11 proposals made by different governorates through its annual competition. All three projects will receive government support and involve private sector participation through PPPs.
AT BREAKBULK MIDDLE EAST FUTUREPROOFING YOUR MARKET POSITION Tuesday, 13 February 12:45 - 13:30 Moderator: Cris Partridge Owner, Myrcator Marine & Cargo Solutions FZE the high-ticket items for each of these projects that will require the importation of high value, long leadtime equipment, such as transformers and distribution equipment,” said Partridge, who has been working in the Middle East since 2001.
Funding Support
Cris Partridge
Cris Partridge, a master mariner and managing director at Abu Dhabi-based Myrcator Marine and Cargo Solutions, expected project cargo requirements for these urban development projects to be focused on specific equipment. “Oman has massive natural resources which allows them to indigenously produce concrete and similar building materials. The country’s steel industry is booming with the Jindal Shaded Iron and Steel facility in Sohar expanding its production to reach a capacity of 2.4 million metric tons per annum. It is unlikely therefore that huge amounts of building materials will need to be imported to complete these projects. “The challenge, I believe, will be moving these materials from the point of origin to the construction sites. Additionally, it is likely to be
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Dhofar governorate’s Rathath Boulevard is the largest of these new projects. Spread across a 470,000 square-meter area, the development will be implemented at a cost of US$104 million over a span of four years. It will feature the Salalah Eye Ferris wheel, fountains, suspended walkways, an artificial waterway, alongside restaurants and shopping areas. The recreational destination is expected to draw 800,000 visitors during the region’s monsoon period. Oman’s Ministry of Finance is providing US$26 million funding for the first phase of infrastructure and related services, while the rest will be financed by private-sector institutions. Moreover, in November, Oman Development Bank signed financing and investment agreements worth US$31 million for the benefit of small and medium-sized enterprises operating in Dhofar. These included a new financing product dedicated for Rathath Boulevard projects. Dhofar, the largest of Oman’s 11 governorates, is the location of the first utility-scale wind farm in the Middle
Middle East
and logistics service provider] have a long history of specialized cargo handling both there and in Europe.” On the other hand, Musandam, where Aames Bay is being planned, is a particularly challenging location as there is no road link between it and the main body of Oman that does not involve crossing 50 kilometers of UAE territory, Partridge noted. While there are plans to enhance the Port of Khasab, including proposals for an amphibious airbridge, the port has historically serviced smaller vessels. “The Port of Khasab has a protected 10-meter-deep harbor basin with three berths of 60 meters, 90 meters and 300 meters, as well as 22 hectares of open yards and 4,000 square meters (Top) His Majesty Sultan Haitham bin Tarik inaugurates “Sultan Haitham City” on May 31, 2023. of covered sheds. Smaller breakbulk Credit: Foreign Ministry of Oman vessels can berth here, and landing craft (Above) The US$18m Aames Bay development will cover 68,7000 square meters in Musandam. are frequently utilized for moving cargo Credit: Oman News Agency in and out of the port,” Partridge said. East, a 50-megawatt power plant that Connectivity Issues Since 2019 the port has been part came online in 2019. Its capital, Salalah, “There will be a requirement for the of the Asyad group*, the biggest port is also home to the largest port in Oman. marine transportation of materials to operator in Oman. “It is likely that their “Salalah is well established and able at least two of the regions. For Dhofar expertise in operating other ports to handle large amounts of cargo with [location of Rathath Boulevard], the has enhanced Khasab’s facilities ease. As a major container transhipment port of Salalah is the obvious choice and skills base,” Partridge said. hub, the facilities and experience are and for Musandam [Aames Bay], the All in all, the main challenge already in place,” Partridge said. Port of Khasab is the only choice,” said with breakbulk and project cargo The second project, Rimal Park in Partridge, who is a preferred expert for logistics in Oman is associated with South Batinah, will be built along the marine and cargo related disputes at the the onward movement of cargo from Batinah Expressway at a cost of US$18 Oman Commercial Arbitration Centre. the ports to final destinations inland. million and is one of several projects that “As for the South Al Batinah That said, the main ports — Sohar, aim to capitalize on the tourism potential project [Rimal Park], it is just north Duqm and Salalah — have been of the governorate. Covering 225,000 of Muscat and is well serviced by built with thought and foresight. square meters and targeting completion highways. It is my thought that this “These ports’ facilities are world in two years, it will feature a cable car, project will be primarily supplied class and able to match European a resort and an amusement park. by road transportation, although ports for cargo handling. The ongoing Meanwhile, the Aames Bay materials could be shipped into development in Oman is bringing development, also costing US$18 both Sohar and Muscat,” he said. railways and new main roads that will million, will be built over an area of Sohar, a port city on Oman’s northern directly link the ports to producers and 68,7000 square meters and is slated coast and the capital of North Al end users in the interior of the country. for completion within 21 months. Batinah, imports and exports a diverse Until that infrastructure is completed, Located in Khasab, the capital of the range of products and is well placed the inland movement of materials mountainous peninsula Musandam, the to expand it capabilities, according will be by trucks,” Partridge said. project aims to enhance connectivity to Partridge. “Breakbulk cargoes Heba Hashem is an Arabic and English-speaking and infrastructure, stimulate are frequently handled in Sohar Port freelance journalist based between Dubai, UAE tourism and create new investment and C. Steinweg Oman* [part of the and Niagara Falls, Canada. opportunities in the governorate. Netherlands-based warehousing *Exhibitor at Breakbulk Middle East
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Africa
Credit: Martin van Rooyen
HOW TO SAFELY TRANSPORT
Move Promotes Long-term Conservation in Africa 46 Breakbulk Magazine
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By Malcolm Ramsay
Africa
E
very breakbulk project presents its own set of unique challenges, requiring expertise and careful planning. However, when it comes to the transportation of living animals, the complexity of the project can increase exponentially. This is compounded when those animals are being introduced to a new habitat after an absence of over a decade. This is the scenario that aviation logistics specialist Air Charter Service, or ACS, encountered when it was called upon to assist in the reintroduction of rhinos to a nature reserve in the Democratic Republic of the Congo, or DRC. In collaboration with non-profit conservation organization African Parks, and a range of local and international partners, ACS oversaw the successful breakbulk delivery of 16 southern white rhinos to a nature reserve in the northeast of the DRC in 2023, heralding a new era for the park as the animals repopulate the lands of the now extinct northern white rhino. “The last northern white rhino was poached in the DRC in 2006 and this project, arranged by African Parks, is part of a ground-breaking effort to restore the ecological balance of one of Africa’s oldest national parks,” Lyndee du Toit, managing director of ACS Africa, explained. “We were contacted by African Parks to source a suitable solution for the transportation of 16 rhinos from Phinda Private Game Reserve in South Africa to Garamba National Park in the DRC.” This breakbulk move not only required meticulous planning and specialized equipment to ensure the speedy transportation of these magnificent animals within a restricted timeframe, but safety was also a top priority with security concerns adding further complexity. “Due to the high value and risk associated with transporting rhinos, we had to ensure suitable armed security was provided,” a spokesperson for ACS’ local freight forwarding partner commented.
“Now that Garamba is a safe location and has proper protection in place, this reintroduction is the start of a process whereby southern white rhino, as the closest genetic alternative, can fulfil the role of the northern white rhino in the landscape.” To ensure the timely delivery of this valuable cargo, the need for air cargo was quickly recognized and Careful Pre-planning ACS, working with its local partners, The project was part of a wider began a careful process, examining initiative that stems back decades. all available options and routes. Spanning over 5,000 square kilometers “When planning the transportation, of savannah and equatorial forest, we had to carefully consider the routing with almost 10,000 square kilometers to ensure we met requirements for of adjacent domaines de chasse, BMA / CITES permits and inspection, or hunting grounds, Garamba is as well as consider fuel and tech stops one of Africa’s oldest national along the way,” the spokesperson parks, and was declared a UNESCO for the local freight forwarder World Heritage Site in 1980. commented. “Transportation to Throughout its recent history and from the points of exit/entry Garamba National Park has faced was another important aspect, significant challenges, including armed factoring in road quality, borders, conflict, ivory poaching, and civil wars corruption and potential conflicts.” that threatened its wildlife and UNESCO Having identified the key risks, a listing. African Parks and Institut route to fly the rhinos directly from Congolais pour la Conservation de la South Africa to the park was created Nature, or ICCN, began collaborating and the team were then able to pick to manage the park in 2005 but the ideal aircraft for the job, selecting immediately faced security issues due a Lockheed L-100 Hercules. to the rebel group, Lord’s Resistance “We decided that a Hercules L-100 Army (LRA), and other armed forces would be the best fit for the job, operating in the region. In 2006, the largely because of its ability to land last northern white rhino was poached, on short, dirt runways,” du Toit of and this breed has since become ACS told Breakbulk. “The rear-loading functionally extinct as a sub-species. capability of the Herc was also utilized In 2016 the partners revised their as [the] airstrip in north-eastern DRC approach to park management, and didn’t have sufficient equipment to following the cessation of armed assist in offloading the rhinos.” conflict, they implemented new systems to improve conservation enforcement and bring stability. As part of this new approach a plan was developed to bring southern white rhino to the area. Peter Fearnhead, CEO of African Parks, reflected on the significance of this delivery of southern white rhinos to the park, stating that efforts to save the northern white rhino “were a case of ‘too little too late’ and should Sponsored by CEVA Logistics never be allowed to happen again.”
Region: Africa Problem: The move of a live cargo called for special handling Solution: Air freight transportation was carefully planned and executed to protect the precious animals
AT BREAKBULK MIDDLE EAST DOING BUSINESS IN EAST AFRICA Tuesday, 13 February 13:35 - 14:20
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Africa
The rhinos are ready to load at the airstrip in the Democratic Republic of the Congo. Credit: Air Charter Service
Transcontinental Delivery
The rhinos to be transported were sourced from &Beyond Phinda Private Game Reserve in South Africa. Located in the eastern coastal province of Kwa-Zulu Natal (KZN), within the Mun-Ya-Wana Conservancy, the reserve is a sanctuary for numerous rare species, including the southern white rhino. “Conservation translocations have been proven to be a critical tool in securing the survival of endangered species, such as the rhino,” said Dale Wepener, &Beyond Phinda conservation manager. “Creating new habitats and ranges is something that &Beyond has been doing for a while, especially through our history of moving rhino from Phinda to other parts of Southern Africa. We believe that this latest conservation translocation and introduction is a way of protecting the species by creating a new, safe and secure habitat for the species.”
Having been considered extinct in the late 19th century, a small population of fewer than a hundred southern white rhino was discovered in 1895 and though conservation efforts have now expanded this population to several thousand, the species remains classified on the IUCN Red List as Near Threatened. “This reintroduction forms part of the overall strategy to promote the long-term conservation of white rhinos in Africa by extending their range and creating new breeding nodes for the species in secure areas,” Fearnhead added.
Exceptional Requirements
Given the delicate state of this population, each of the 16 rhinos to be transported was treated with the greatest care and required in depth arrangements to ensure they arrived in the best of health. “Container design and dimensions were carefully considered to comply
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with International Air Transport Association Live Animals Regulations and provide a suitable environment for the rhinos during the flight,” the local freight forwarding team leader noted. “We also had to address the transportation of drugs and medicaments required for the rhinos, ensuring their legality and responsible handling.” As with any international breakbulk move, the correct customs and airway bill documentation had to be provided but in this case a range of additional checks and certifications were also needed, including pre-export microchip verification from the South African Department of Forestry, Fisheries, and the Environment. “Defining responsibilities for permits, VHCs, and inspections was crucial to ensure compliance,” the team noted, adding that “flight dates and times were carefully chosen to consider animal welfare and personnel safety.
Africa
“We also made sure to include drugs, palletizing materials, and other often overlooked items such as laptops, cellphone chargers, and protective gear. Additionally, we provided suitable clothing, sun-protection, and extra provisions of oxygen, food, and water for both the rhinos and the handlers during the flight.” This attention to the health and wellbeing of the animals also created some logistics challenges for the partners involved in the move as the size of the aircraft limited the number of rhinos that could be packed onboard. “Using [the L-100) meant that two flights were needed, as each rhino weighed around two tons or more,” du Toit explained. “Through careful planning, we were able to perform both flights in the same week, with both being loaded at night and both arriving at first light in Kibali.”
Container design and dimensions were carefully considered. Credit: Air Charter Service
The rhinos safely arrive in their new habitat. Credit: Martin van Rooyen
Long-term Success
With the cargo carefully delivered, the rhinos were then unloaded at the Kibali Mine airport strip, operated by mining firm Barrick Gold Corporation, a key sponsor and partner in the project. A long-standing partner with African Parks, Barrick Gold Corporation is a lead donor in the translocation project and to date has provided more than US$2.5 million for tracking collars, fuel for observation planes, rescue and rehabilitation programs as well as improvements to critical infrastructure such as roads and bridges. President and CEO of Barrick Gold Corporation, Mark Bristow, noted that the funding for this move “stems from our 10-year partnership with African Parks” and is a key part of ongoing investment in the conservation of Garamba National Park, adding that “biodiversity underpins many ecosystem services on which our mines and their surrounding communities depend.” To ensure that the impacts of this translocation are long-term and that the rhinos are able to
integrate and breed in their new home successfully, the partners also oversaw delivery of vital equipment required for this new population. “We ensured follow-up and checks were conducted to ensure the success of the transportation,’ the team noted. “In terms of equipment, we provided crane trucks, straps, extra spreaders, and wooden blocks to assist with the handling of the rhinos.” Praising the teamwork of all involved, Bristow said: “Being able to
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play a role in protecting biodiversity and preventing nature loss is central to what we do,” adding that the partners all plan to continue working to “achieve economic, socio-political and ecological sustainability.”. Based in the UK, Malcolm Ramsay has a background in business analysis and technology writing, with an emphasis on transportation and ports.
*Exhibitor at Breakbulk Middle East
Throwback
MEMORIES OF REBUILDING IRAQ How Tea, Talk With Tribal Leaders Led to Project Success
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n the early 2000s, I had the pleasure of working in the Garden of Eden, or at least it used to be, but the water levels in the Tigris-Euphrates marshlands of Mesopotamia have been dropping for years because of dams and diversions upstream. I made regular, extended business visits to this area. Most of you would recognize this place as Southern Iraq and at that time the area was principally desert. Saddam Hussein accelerated the draining of this land to flush out rebels hiding in the reeds. This area has now been named a World Heritage site and is on the mend. I spent extensive time in and across Iraq during the initial reconstruction period, and learned many lessons, but the job I describe led to one of the most important. Our Task Order was to remove pumps and equipment from several Southern Oil Company pump locations. Our scope included extracting the equipment from several buildings and transporting them to Umm Qasr Port for export to the United Arab Emirates. The equipment was to be repaired, upgraded and returned to Iraq where we would transport and install in their original location. We developed our solution for the Task Order for review, acceptance and approval from our client. Once this was received, we went to work engaging and aligning with our subcontractors and local authorities, obtaining costings and firming up the order. A critical part of any activity in Iraq at the time was the need for security for personnel, equipment and cargo. We selected one of our vetted and approved security
subcontractors, aligned the schedule and received approval to proceed. We mobilized crew and equipment to the first pump station with the security subcontractor managing and protecting the convoy. As they approached Southern Oil Company property, the team was met by armed members of the Marsh Arabs. The team was told they could not undertake their work without armed security provided by the Marsh Arabs and that our subcontractor was not required. For this service there would be a cost, which would be approximately the fee charged by our subcontractor. The team was instructed to respectfully stand down and return to base. We were not prepared to have local security protecting our people, certainly not without our own security subcontractor engaged— not to mention the extra cost.
Time for Tea
After an internal debrief we reached out for a meeting with the Tribal Shaikh to gain perspective, context and deeper understanding. Members of our team and the Shaikh’s delegation met, shared tea, personal pleasantries and explained what we were tasked to do and our willingness to work with the Marsh Arabs. As the discussion progressed, we got to the point of explaining where we were bringing the repaired and working equipment back to the pump station for reinstallation. There were animated discussions among the Tribal Shaikh and his delegation. Through the interpreter he asked for clarification on us bringing the equipment back
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By Grant Wattman
and installing it. Indeed, we clarified this was our intent and scope. At this point the Marsh Arab delegation was laughing and gesturing and we were wondering what was so funny. Things settled down and the Shaikh told us — still chuckling under his breath — that they thought we were stealing the equipment. The fact that we were bringing it back was a totally different situation. Our pleasant meeting continued, and we agreed they could provide one security member per security vehicle from the Marsh Arabs to accompany our security subcontractor in their vehicles at a far more reasonable cost than was originally requested. We all agreed the discussion was fruitful, we had a plan to proceed with and adjourned the meeting. The Shaikh provided young men from the tribe as their security detail with weapons slung across their shoulder that made them look even younger, but they were good young men who spoke some English. It was a great learning experience for all. This was not the last time we met for tea and provided updates on our activity. It was the start to a continued engagement with the Marsh Tribe when we operated within their area, as well as other tribes we engaged with throughout Iraq. This open approach made the solution a success. Lesson learned: Sometimes the answer you are looking for is not in the challenge you are working to overcome but in your approach. Grant Wattman is CEO, Americas, for Combi Lift.
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Global
BREAKBULK’S EMISSIONS
BUILDING BLOCKS Alliance Sets Parameters for Accounting and Reporting
S
mart Freight Centre, together with an alliance of carriers, freight forwarders, shippers and other organizations associated with the breakbulk sector, has formed a working group which sets out to establish an accounting and reporting methodology that aligns with the current multimodal industry guidance – the GLEC Framework and the current international standard, ISO 14083. The advantage of creating a sector specific guidance in close collaboration with key players of the breakbulk industry means that it can reflect the industry’s transport operations and helps carriers standardize their emissions reporting to cargo owners, while relying on the best quality data: primary data. With carrier activity data and energy consumption data, cargo owners can report Scope 3 emissions of the highest grade. Since my involvement with this project in May 2023, the foundational methodological building blocks have been established. Revenue-tons/ Freight-tons has been identified as the appropriate measure of ‘quantity of freight’ in calculating transport activity for the allocation of emissions. Emissions intensities and transport activity are also to be reported in tonne-kms to ensure harmonized multi-modal reporting. Shipment, vessel, vessel size category and fleet level reporting have been identified as
By Marcus Lomax
Breakbulk shippers need to be ready for mandatory emissions reporting. Credit: Atlantic Logistics
possible aggregation levels for Scope 3 reporting based on primary data.
Fuel Factor
Since emissions are calculated by estimating the fuel consumption associated with a certain amount of transport activity and converting it with a fuel emission factor, the choice of fuel emission factor is an important topic as this directly impacts the number of emissions reported. The maritime industry is eagerly awaiting the IMO lifecycle assessment guidance (MEPC 80/7/4) which is due to be finalized and published at the 81st Session of the Marine Environment Protection Committee (MEPC81), scheduled for Q2 2024. This document will provide a widely accepted framework for defining emission factors which will become the standard for the maritime industry. Until then, the breakbulk sector will want to be
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able to calculate and report its emissions while aligning with other maritime initiatives such as Sea Cargo Charter and Clean Cargo to ensure harmonization. The working group is currently testing out the methodology through a data collection exercise. This will test, for example, whether carriers are indeed able to calculate the shortestfeasible-distance or not – which constitutes the second part of the measure of transport activity alongside revenue-tons/freight-tons. Depending on the results, we will have to make the methodology feasible with what carriers can measure and report. The working group was due to meet again in December 2023 to go over any last details before eventual publication of the guidance in 2024. Marcus Lomax is technical manager at the Smart Freight Centre.
Global
SANCTIONS TIONS RATTLE PROJECT SECTOR By Jeremy Bowden
Restrictions Against Russia Reduce Cargo Activity, Force Route Changes
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ncreasingly rigorous sanctions from the West on goods and finance moving in and out of Russia mean hard times for breakbulk and oversized cargo handlers involved in the trade. The minefield of new restrictions is causing a drop in the volume of business and lengthy diversions for remaining project cargo handlers and freight forwarders – as well as opportunities for those willing to circumvent the rules. Since the invasion of Ukraine, Western nations led by the G7 and EU have imposed a range of sanctions on goods exiting Russia, along with a raft of financial restrictions and penalties designed to limit Russia’s income and constrain its economy, including the removal of Russian banks from the Swift financial system. Most imports, including breakbulk and heavy-lift, are still allowed, but the financial restrictions mean there can be difficulties in payment, while some companies are no longer doing business in the country. The impact has been to progressively restrict activity generally in the breakbulk and heavy-lift sector, according to sources, and also to shift remaining cargo flows away from
Region: Global Problem: Complicated sanctions are disrupting and diverting breakbulk and project cargo business Solution: Shippers have been forced to find new routes and suppliers to fill the gaps
pay – and difficulty in paying puts freight forwarders and shippers off, according to sources. Some establishment Russian freight forwarders have not even been able to pay BIMCO fees, as banks won’t relay the money.
Abiding by Sanctions
The financial and insurance restrictions are also having a major impact beyond Russia’s European ports, such as St. Russia and Europe. Brandt noted that, Petersburg and Novorossiysk on the while shippers, freight forwarders and Black Sea. The latter recently became contractors may be spread around the the headquarters of Russia’s Black Sea world (and not themselves subject to navy – adding risk to any civilian activity. UK, EU or U.S. restrictions), insurance, “There is no doubt that the Russian financing and brokering remains sanctions have had a profound effect on concentrated within the EU, UK and the shipping industry,” said Alexander U.S. “So, tonnage that is reliant on these Brandt of legal firm Reed Smith, which Western service providers is effectively deals with thousands of sanctions issues. forced to abide by the sanctions, or Another source agreed, adding that risk compromising their insurance, Russian freight forwarders in particular breaching financial covenants,” he said. were suffering, with sanctions on According to the International Energy goods hitting the volume of trade in and Agency, Russia has transferred much especially out of western Russia. Those of its oil exports to an alternative “dark” involved in Europe are also taking a hit, tanker fleet designed to avoid these but less so because Russia makes up a restrictions. This has kept oil exports relatively small portion of trade. While at near pre-war levels, with the main Russia can still import most goods, it is destination switching from Europe and difficult to get insurance or for buyers to North America to India, China and Turkey.
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Global
As with oil, there is a black-market fleet developing for other goods, with operators located primarily in the Middle East, China and parts of Asia. Traders here will circumvent the new rules, according to sources, but often at a premium – “But it still makes life much more difficult for freight forwarders in Russia – not straight forward business as usual”, said one. Brandt said there were risks associated with switching to these alternative vessels. “This fleet of aging tonnage operates almost entirely outside the G7 sphere of influence and has garnered widespread attention - not least because the lack of adequately capitalized insurance behind these vessels could prove disastrous in the face of a major casualty.”
Alternative Routes and Markets
As with oil, Russian and Belorussian companies have had to find alternatives to western markets for their export goods, including in parts of South America, some Indian buyers and especially China. But these outlets are not “under the same conditions,” according to one source, with lower prices in some cases and higher transit costs. Previously, the majority of oversized cargo was transported to and from Russia through its north-western seaports, primarily St. Petersburg. But now, from western Europe into St. Petersburg, 90-95 percent of lines are no longer available, said the source, with routes through Finland also closed. Some cargo has switched to the Russian Far East, although ports there are having problems coping. For example, Bremerhaven roll-on, roll-off was used heavily by freight forwarders based in St. Petersburg, which gave them easy access to the rest of the world. Now operators have to find direct lines, which are not always available, and have to get bigger volumes before a shipment can take place making shipping more costly and difficult.
And in some cases, rather than using Europe as a transhipment hub, logistics providers have switched to nearby alternatives like Tangiers in Morocco, said one freight forwarder, where sanctions “are not being applied in the same way.” The long-term implications are reduced flows and a change of routes for freight forwarders and shippers away from Europe, with the new routes incurring longer voyages, higher costs and insurance issues. Brandt said that Reed Smith had seen a decrease in Russian activity. “Either [the goods and commodities] are not being shipped or, more likely, they are not being shipped by our clients,” he noted. However, he could not say whether volumes had shifted from the Russian West to East coasts. “On the dry side, the majority of the instructions remain focused on the Russian Baltic and Black Sea ports. We have seen limited use of the Northern Sea Route by Western nexus tonnage, which I attribute in part to potential sanctions complications (including the designation of Atomflot, that operates nuclear powered ice breakers along the NSR).” Peter Molloy at Drewry Shipping Consultants said he had also been unable to identify a switch in flows on individual routes.
Getting Picky
Chris Higgins, commercial director at AFS Global, said that in his area, he had seen little change in the way people were shipping or how cargo is being routed. “Where it does seem to be having an impact, however, is how cargo is handled and the need to now have the relevant documentation available at every point of consignment. Those that don’t are seeing goods returned to the warehouse/factory which is in turn creating congestion and delays.” Brandt agreed that documentation was becoming more of an issue, noting that, for those cargoes that could be traded lawfully, extensive due diligence on both counterparts and the origin/destination of the
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Chris Higgins
goods and commodities themselves had become the norm. “Shipowners and their insurers behind them are now frequently asking for ownership information for counterparts to be crosschecked against sanctions databases, along with underlying documentation evidencing cargo origins.” He said this made the process much more difficult, “not least because there remains considerable ambiguity in the drafting of sanctions regulations.” Further complication may arise from differing risk appetites among the various stakeholders in the trade, as well as different contractual rights that might restrict their options in response to sanctions risk. In terms of heavy cargo projects moving into Russia, Brandt said there were a significant number of import restrictions requiring documentation, as well as restrictions on contributing to Russian oil and other infrastructure projects. “Again, while a shipowner itself may be permitted to conduct such activities (as they have no EU, UK or U.S. nexus) they may still require the support of their Western insurers, and indeed financiers/banks.”
Third Party Steel
The number of areas affected by sanctions keeps increasing, with one Russian forwarder reporting over 1,500 bans of some sort altogether. Among these, Higgins said new iron and steel rules that came into effect in September were creating particular problems
Global
Ice breakers on the Northern Sea Route are now subject to sanctions. Credit: Shutterstock
for breakbulk. The rules effectively prohibit the trade of Russian iron and steel products processed in a third country, which widens the scope of sanctions significantly, although many shippers remain unaware of the issue. Brandt said: “Specifically in respect of the new EU and UK measures restricting the transfer of processed Russian steel from third countries, we have seen a marked uptick in prefixture due diligence, in line with the guidance promulgated by both the UK and EU (which is largely aligned), and requires (among other things) provision of mill test certificates.” Higgins said a mill test certificate will now be required from the factory of origin that categorically says the iron or steel included in that product did not originate from Russia for all imports to the EU and UK containing iron or steel. “The implications for any importer unable to provide that documentation could be extreme. It could result in their business facing inspection. But more than that, it also could result in their whole supply chain being inspected. As a result, failure to comply could make third parties extremely nervous about working with that importer in the future,” Higgins said. He added that importers will not be able to receive their goods until after the inspection, which may include a laboratory test, and would be liable for quay storage costs in the meantime. A huge amount of manufactured goods are now being swept up by the sanctions, according to Higgins. “Due to the malleable nature of iron and steel, customs officials will be looking to inspect everything from construction materials to everyday
goods such as pots and pans, knives and forks and much more. This is likely to catch some importers out as this will include goods with just a small amount of steel within the product, such as a BBQ set,” he said. While the new regulation was officially announced in April, it was not widely publicized, which could cause problems, especially for unprepared cargoes currently at sea. Higgins said getting documentation in place early is crucial for the future smooth trading of any products that include iron and steel. Other sources suggested off the record that the third-party steel rules were leading to a re-labelling of country of origin, with Turkey and India favored options. And in contrast, Philip Adkins, from Cadenza Group, said he had seen “no effect on Russian steel from third countries,” and “no real changes” to cargo flows, volumes or routes.
Fallout of War
As well as sanctions, the war itself has also had an impact on trade. Logistics provider, Wallenius Wilhelmsen Logistics Abnormal Load Services’ commercial department said that while it has limited involvement with cargo deliveries in and out of Russia, it had seen a big impact “on the availability of heavy transport vehicles - with Eastern European vehicles and drivers being withdrawn from the heavy transport market to participate in the conflict.” The situation also means it is difficult to use railways as an alternative transport route, not least because they have been successfully targeted by saboteurs in Russia, severely disabling the network (which
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is crucial for military logistics). The attacks, which began in 2022, ramped up towards the end of last year, affecting many areas of the network that spans approximately 33,000 kilometers. The British Defense Ministry reported that independent investigations in Russia indicated at least 76 instances of railway sabotage from February 2022 to October 2023, which it said presents a “significant problem” for Russian authorities. Russian railways are also facing significant issues due to the lack of infrastructure for delivering heavy or oversized cargoes, and a shortage of qualified personnel, many of which are involved in military activities - as well as longer delivery times and physical limits of the system. Brandt said shortages of specific transportation equipment generally was also causing delays, prompting a shift to alternative, less efficient options. As the West further ratchets up the pressure on Russia, increasing the number of finance and cargo pipelines being restricted or blocked, a wider and wider range of goods and logistics are becoming affected. Within Russia, sourcing, tendering, and execution of heavy cargo projects are all being hit, posing challenges for reliant industries such as oil and gas. While some trade may be moving to alternative companies and routes, these are less efficient, riskier, and more costly. The only solution for many involved largely depends on a ceasefire, peace talks and a rolling back of sanctions - none of which are likely any time soon. Jeremy Bowden is a freelance journalist, researcher and analyst, specializing in energy matters with a focus on the energy transition.
Global
‘NO NEW AIRCRAFT’ PLANNING SKILLS Shortages and Global Volatility Have Become the New Norm By Luke King
Region: Global Problem: Lack of heavy-haul aircraft capacity presents challenges to forwarders Solution: Nimble project cargo handlers are working fast to secure space for a postpandemic uptick in heavy moves deugro anticipates “continuously strong demand” for airfreight solutions in 2024. Credit: deugro
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alling yields in the general air cargo market are not causing undue alarm to those engaged in the shipment of oversize and project cargoes by air, however global conflicts threaten an otherwise positive outlook. “For our niche sector, the general air freight market doesn’t massively affect project work, unless there’s more of a general downturn or recession globally,” said Dan Morgan-Evans, global cargo director at Air Charter Service, which arranges over 25,000 charter flights per year and employs more than 500 staff around the world. “Softening of the rates was about overcapacity of aircraft, so I’m not so worried that there’s going to be a dip in projects, unless the world situation suddenly deteriorates. The impact of the crisis in the Middle East will be felt unless it can be contained.” Morgan-Evans told Breakbulk the inevitable uptick in humanitarian flights necessitated by conflicts such as that between Israel and Hamas, which began in October, would do little to mitigate the wider implications of any sustained warfare. “As much as that does generate business, and there is increased business into the region carrying whatever is required, it’s a drop in the ocean compared to the damage that conflict can do to economies around the world. Uncertainty causes a slowdown in world economies, so we’ll see how that plays out. “That aside, the general charter market is in fairly good condition at the moment – normal business has resumed for us, and at a higher
TESTS
AT BREAKBULK MIDDLE EAST THE BALANCING ACT: DEMAND, SUPPLY AND THE ECONOMY Monday, 12 February 11:30 - 12:15 *Exhibitor at Breakbulk Middle East
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Chapman Freeborn claimed a carrier record by transporting six helicopters on a single Boeing 747-800 freighter. Credit: Lenn Bayliss and Garry Wilkinson Photography
level than it was pre-Covid. Projects slowed down and stopped during that period, so we are seeing more than we did in the last three years.” Air Charter Service, or ACS, has emerged from the pandemic as a larger organization, following ongoing expansion and the opening of new offices in Washington D.C., Boston, New Delhi and Mexico City last year. The oil and gas, automotive, dangerous goods and entertainment sectors were all said to be performing well. “We’ve seen a big rise because people are out touring again – all those markets are all really buoyant,” Morgan-Evans said.
“Zero” Chance of New Aircraft
Heavy-lift aircraft availability remained difficult, and Morgan-Evans assessed there was “zero” chance of new aircraft entering the market any time soon. “There is no economical way of developing or re-opening a production line for a pure heavy-lift aircraft,” he said. “There is just not enough business for the amount of money it would take to get something like that off the ground. It just doesn’t work.” As a pure charter operating aircraft, it’s too uncertain, he added – the cargo charter market would always remain an up-and-down market. “We follow trends, and for that reason it would be
difficult to make money from a new heavy-lift aircraft. That said, there are still Antonovs around. Oddly enough, 2023 was probably our busiest year with Antonovs for a long time. They are still there if you need to get something moved. You may not be able to do it the next day but with enough time, you can plan the operation and get it done.” Reflecting on business prospects for 2024, Morgan-Evans said: “Barring any escalation in the hot spots of the world, the signs are that economies are starting to get inflation under control. Consumer confidence has not been massively knocked, certainly in the U.S. At the moment, there are no panic buttons being pressed.” There was a similarly upbeat outlook from Pavel Kuznetsov, head of air chartering at deugro, and a regular panelist at Breakbulk conferences. Dan Morgan-Evans
Limited Availability
The possible future introduction of new heavy-lift aircraft is a perennial topic at Breakbulk events and, like MorganEvans at Air Charter Service, Kuznetsov is not optimistic about the prospect. Pavel Kuznetsov
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“In our experience the demand for project air cargo does not always directly depend on the same factors that drive general air cargo,” the Hanau, Germany-based executive said. “The need for project airfreight is project-driven, usually has an unplanned nature and normally kicks in towards the end phase of the projects. Based on the project portfolio our clients have for next year, we anticipate continuously strong demand for airfreight solutions in 2024.” Kuznetsov said the conventional freighter service market – scheduled and charter – has stabilized, and would likely sustain a “gradual recovery which will probably last until at least the second half of 2024.” “While the geography of the projects we are dealing with is extremely diverse, I would probably highlight the Middle East and North America where the project activity is really booming. We see a lot of activity not only in the traditional oil and gas and major LNG projects, but also new interesting developments such as massive green hydrogen projects which will play a significant role in decarbonizing energy systems.”
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“Availability of heavy-lift ramp aircraft (AN-124 and IL-76) will remain very limited, and prices will remain extremely high as they are now. I don’t think there will be any changes to the current situation next year and we will unlikely see any new aircraft entering this niche, apart from Airbus Beluga which, however, suits more for volumetric cargo and less for heavy machinery.” The ongoing shortage of heavy ramp aircraft always prompts interest in seeking ways to use conventional cargo aircraft for project shipments. “The main problem with this, of course, is the smaller cargo hold of conventional cargo aircraft compared to heavy ramp aircraft, as well as the greater dependence on ground handling equipment, which is not always available at remote locations,” Kuznetsov said. The load planning process for oversized cargo is by nature a complex operation which requires extensive preparation, specialized skillset and equipment, as well as cooperation from air carriers, airports and ground handling agents. To meet these challenges, deugro engages its own engineering staff, via sister company dteq Transport Engineering Solutions, tasked with identifying “creative solutions” to overcome any limitations. “For example, fixing the cargo on a transport skid at a certain angle, dismantling certain elements of the cargo to fit the contour in the cargo hold or modifying the footprint to allow proper weight distribution. This often becomes a game-changer for safe and cost-efficient air transportation.”
Positive trends
Reto Hunziker, regional CEO – Europe at Chapman Freeborn, agreed that the niche project cargo sector was not particularly vulnerable “since it does not depend on consumer behavior and spending.” Chapman Freeborn is seeing strong growth in the automotive sector in Europe and North Africa, while the oil and gas and energy sectors
Air Charter Service carrying out Boeing 747 operations. Credit Air Charter Service
are also showing “positive trends.” Turning to Europe, the company says it is pursuing new opportunities in France, Benelux, and Italy in 2024. Hunziker cited high pricing and a lack of outsized aircraft as the biggest issues related to project shipments. “The traditional freighter market is buoyant and presently very flexible in terms of pricing and availability. However, due to a lack of niche transport capabilities, these aircraft are not always of help. “Niche aircraft availability will remain a challenge, especially in the outsized market. This will not change as there are only a limited number of aircraft available. Some of these aircraft are operating long-term military or humanitarian missions, which further restrict their availability. “We don’t believe that there will be any new or additional aircraft types entering the market in the near future. I believe the earliest that we will see new aircraft will be in 2027 and beyond, and these will be predominantly to replace the AN12s.” Hunziker added that sourcing the right personnel was almost as difficult as sourcing the aircraft. “With our ongoing expansion, we have various vacancies and are constantly looking for experienced industry colleagues with market insight and knowledge, as well as newcomers to the industry.” Chapman Freeborn is moving to diversify its business to offer clients more than third-party aircraft for
charters. “We now offer a much wider range of value-add services and niche products such as our global onboard courier business, the animal transport specialists Intradco Global, the intraEuropean automotive aircraft operator Arcus Air, and Magma Aviation, our in-house B747F operator with five aircraft flying exclusively for our group clients worldwide,” Hunziker said. The company also deploys dedicated loadmasters to investigate whether shipments can be loaded into commercial freighters. “We are involved from the beginning and consult our customers on site to make sure we find the most economical way of packaging to enable us to use commercial lift. A great example of this is our recent move of six Bell Helicopters on a single B747-8 freighter.” Providing his own outlook for the year ahead, Hunziker said: “The most common concern is the unpredictability of the market. Conditions seem to change very quickly, with new challenges almost every day. In addition, people are concerned about the increasing number of active and potential geopolitical conflicts. This all makes it very difficult to plan activities and find the best approach for various markets. Volatility as always rules our business.” Luke King is a freelance reporter and communications consultant who has been involved in the project cargo industry since 2007. *Exhibitor at Breakbulk Middle East
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REINVENTING RECRUITING, RETAINING DYNAMICS Challenges of Finding, Keeping Project Cargo Staff
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onventional methods of seeking and retaining project cargo staff have radically changed. Factors such as technology and greater workplace flexibility have come together to create more adaptable recruitment and retention processes. When searching for the right candidate, Kelsey Purse, Faststream Recruitment’s director of shipping, said that as a recruitment business, it might be an obvious answer to say use a recruitment agency. “However, if you partner with a specialist agency within the shipping and project cargo market, there are many reasons why you will benefit from it.” An important benefit is access to and relationships with talent. “Often, recruitment agencies and consultants will have exclusive relationships with
candidates that they have built up over a period. These candidates often rely on their recruitment consultant as their trusted adviser in the employment market. These candidates are often more passive and will not apply directly to job ads or postings or be interested in speaking to other headhunters.” Kelsey Purse
DHL Industrial Projects use all available methods to place the right people in the right roles. Andy Tite, commercial director, said that a first port of call is always the company’s existing team members where current employees can graduate to a more senior or diverse role, allowing Andy Tite
*Exhibitor at Breakbulk Middle East
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Credit: Kirsten Lehmann, DHL Group
By John Bensalhia
Global
while once may have been confident in rehiring, are now doing everything they can to keep hold of their people. “These aggressive counteroffers are, in some cases, creating salary disparities within the same or similar roles. This in turn, can cause conflict internally if compensation packages are discussed and again, have an impact on retention.” others in the organization to also More potential employees are have advancement or change. seeking a greater work/life balance, “Where this cannot be achieved a trend that Tite argued should be either through a geographical or taken on board by all organizations. skill set gap, then we look within the “There is very much a culture of industry for candidates that perhaps trust and ownership within our teams are not gaining the needed fulfilment and if people need to take time out within their current roles either within to support their families, attend other project forwarding organizations a school event or simply work in a or within companies we engage more flexible manner, then we always with in specific industry verticals.” do what we can to support that.” All employees must have the right Digital High amount of work/life balance, according A big change in the process of to one engineering, procurement and initial screening and interviews is construction company. One notable due to the digital age. With project factor, post-Covid, is in terms of new cargo candidates and clients based employees and the new generation worldwide, video communications demanding that they do have the have opened up the marketplace. opportunity to work from home. “We are even seeing an increase In some cases, home/work balance in hiring completed without the is more important than salary. “There candidate or client meeting in have been instances in which a person before the commencement prospective candidate has taken of employment. Decisions are an offer at a lower salary because being made for some from video they would like a job that enables a interviews, telephone and other digital work/life balance,” said the EPC. communications only,” Purse said. While digital technology has Paying Retention helped with initial screening and Retaining staff through methods such interviews, Purse added that as promotions, training and rewards there has been an increase since can be a culmination of all three. But Covid-19 in the time to hire. as Tite commented, it is not always “Several factors are impacting the practical to provide all of these at once. time to hire. Competition is fierce for “We also feel that transparency top talent, and combined with a skillas an organization in relation to short marketplace, hiring managers our performance, growth and have to act faster and rethink their strategy for the future is key and it people strategies. Counteroffers are is a quite different culture at DHL now the norm. In the last year, we Industrial Projects versus other have seen the most aggressive ones organizations I have been a part of. ever in shipping and project cargo “Allowing our people to be aware of recruitment. The renewed focus on the direction we are steering the ship retention has meant that employers in and allowing them to be a part of
Region: Global Problem: Breakbulk job seekers are demanding more flexibility, better compensation and clearer progression paths Solution: Employers are rethinking retention strategies, while honing in on personal career motivation
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the discussion is crucial to personal investment in our working lives. So, if we can place the right people in the right roles, with opportunity for growth and/or diversification as well as incentives to deliver which are aligned with our company strategies, then this is probably a good starting point.” Purse noted that for retention of staff, each employee will have their specific motivations to stay with an employer or choose to jobseek. “However, we do see trends in why people choose to stay with their employer including career progression, compensation and benefits, and work-life balance. “Career progression availability is important to those who view their job as offering more than just an occupation. Many want a job that offers a rewarding career and the opportunity to progress and develop themselves to their fullest capability.” A major change witnessed by Faststream is that compensation and benefits can be used as a retention tool, not just for attraction strategies. Because of this, more candidates say they are planning to stay loyal to their employer.
High Equality
Equal opportunities are also incredibly important to Faststream and to their clients. Purse said that encouraging diversity is not just about gender, race, and ethnicity anymore. “An inclusive workplace also embraces employees from different generations, cultures, religions, political beliefs, education, and socioeconomic backgrounds.
AT BREAKBULK MIDDLE EAST ATTRACTING TALENT FOR FUTURE INDUSTRY SUSTAINABILITY Monday 12 February 16:30 - 17:15
Global
Candidates in the project cargo marketplace are driven by fast-paced, competitive environments. Credit: Kirsten Lehmann, DHL Group
“Diverse and inclusive teams create many business benefits from increasing employee engagement and retention and improving creativity and innovation to promoting diverse skill sets and understanding of markets.” Tite added that the diversity of DHL Industrial Projects’ employees is its genuine strength. “We promote an inclusive work environment that values the diversity of our employees and in which everybody feels accepted and can be their best every day. It is our firm belief that diversity and inclusion contribute to our company’s success.” He added that the main criteria for employee selection and promotion are skills and qualifications, aiming to provide equal opportunities to all candidates. “If you are capable, qualified and legally entitled to work in the geography where a role is situated then you have an equal opportunity to secure that role.” DHL Industrial Projects is also
working hard to bridge the gap between the older and younger work forces with its graduate program, #NEXTGENTIP. “This is not the first of its kind in DHL or in the industry, yet it’s the first time DHL Industrial Projects has managed its own program. We have set a robust curriculum that will see our graduates cover core modules and also have freedom for optional modules depending on their own interests and intended career path.” Purse said that retaining good people will benefit a company’s culture as they are a good example of a positive story to tell newcomers. “The company’s clients will benefit from familiar relationships developed over time. These people will also be able to grow with the company bringing the company’s DNA and experience with them.” Finding new talent means that you can ‘buy in’ specialist and niche knowledge on project cargo.
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“Attracting new talent also means that you benefit from their historic relationships in the industry, that you may not have had before. Our customers in this particular area like to gain knowledge of the way other companies operate and this can be obtained by taking on new people.” Overall, candidates in the project cargo marketplace are driven by fastpaced, competitive environments. Therefore businesses need to create these types of environments for talent to thrive and develop. As Purse concluded: “Our customers are equally motivated to source candidates who are problem solvers and solutiondriven: making this a highly desirable sector to work in. Retaining talent for the long term can also help with succession planning and developing your future leadership pool.” John Bensalhia is a freelance writer and author with 25 years’ experience of writing for a wide range of publications and websites.
Global
AND REWARDS Train, Maintain, Standardize and Heed Advice, Breakbulk Sector Told
Credit: Shutterstock
By Iain MacIntyre
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commitment to crew training, maintenance and technology, standardizing where possible and following insurers’ bestpractice safety advice are among key recommendations to reducing breakbulk shipping sector risk in an environment of ever-rising insurance premiums. The industry by its very nature of being predicated on non-standardized cargoes comes with higher, inherent risks than other modes. This is evidenced by Captain Rahul Khanna, global head of Allianz Commercial Marine Risk Consulting, who observed there were 311 breakbulk/general cargo vessel losses in the past decade – “the highest in all categories [of ships].”
“The second category is fishing vessels with 117 ships lost in the same period,” he said. “In my experience, standards of safety on breakbulk ships do not match up to other specialized
Captain Rahul Khanna
segments like tankers. Having said that, within this segment there are ships like the heavy-lift vessels which perform a lot better and appear to have better safety standards.” Khanna believed investment in crew training is the most effective measure to mitigate risks in the sector. “Welltrained crew can be the best defense against incidents and accidents. Machinery damage/breakdown is the top cause out of the 3,032 incidents recorded in 2022, hence having a robust, planned maintenance program is key to avoiding these incidents.” Too often, he said, maintenance budgets are squeezed during a downturn in freight rates, while a large number of cargo damage
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“Breakbulk cargoes typically include items that cannot fit into standard-sized containers due to their size, weight, or nature, such as heavy machinery, large construction equipment and oversized items,” he said. “Often exposed to the elements, there is the heightened risk of these goods being lost, stolen or damaged claims from breakbulk ships are the during transit due to contact with result of not following best practice other packages. The lack of uniform in cargo stowage and securing. storage conditions also makes “Today, technology can greatly assist breakbulk transportation less secure in cost-effective implementation of than containerized shipping methods.” the above recommendations and ship Additionally, human error adds to the operators should consider investing in challenges of breakbulk transportation. proven tech to mitigate risks from the “Although it may not require a crane bridge to the engine room,” he said. for unloading, it often involves a great To help guide such endeavors, Allianz deal of manual labor. Consequently, the regularly publishes risk bulletins and unloading process at a port can incur white papers on emerging and trending higher costs, adding another aspect risks to share knowledge and experience for our insureds to consider when with shipowners and operators. tallying their final shipping expenses.” “Some of these are applicable to all Hughes noted that with the segments of shipping but some are loading and unloading of breakbulk targeted at breakbulk shipping. P&I cargo typically falling under the clubs are also very active in providing responsibility of ports and largely advisory information to shipping. It is being a mechanized process, the main rather difficult to measure the uptake of challenge is managing the heightened such advice, but during client visits we resource requirement at terminals. often pass on such material and discuss “This method tends to need more the benefits of following through.” dock space, given that multiple vessels may transport diverse Odd Shapes and Sizes loads of breakbulk cargo,” he said. The absence of standardization “Some argue that the absence of in breakbulk transportation has standardization in the breakbulk sector “always posed security challenges,” has impeded the widespread adoption according to AXA Australia Head of sustainable practices. Nevertheless, of Marine Tom Hughes. there is a noticeable shift towards collaborative initiatives aimed at Tom Hughes establishing universal standards and best practices as all stakeholders strive for a greener future.” In response to an increasing demand for sustainability, breakbulk shipping is evolving, with shipping companies actively exploring greener technologies such as alternative fuels and more energy-efficient vessels. Efforts are also underway to minimize carbon emissions, cut down on waste and promote eco-friendly practices within the industry, he added.
Region: Global Problem: General cargo vessels post the highest losses of any ship category Solution: Crew training and technology could help bring down the number of incidents
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Non-critical Concern
While predicting the breakbulk shipping sector is poised for substantial growth to support various projects globally, given the anticipated expansion in the renewable energy sector, Hughes issued a note of caution. “The transportation of critical items such as generators, wind turbines, solar panels and other renewable energy equipment present unique opportunities for breakbulk shipping companies. However, there is a growing concern about the complacency in shipping what could be termed as non-critical project cargoes. Unlike critical items, these may not expose the project to significant financial losses if their timely delivery is delayed, as replacement items or parts are typically more readily available.” In recent years the sector has seen widespread parts shortages, port congestion challenges and inadequate supply chain management. “Additionally, these non-critical items can still be of high value, oversized or sensitive in nature, demanding the right level of care and attention to ensure they reach their destination in good condition,” he said. AXA Marine Senior Risk Consultant Jarek Klimczak said that, despite the conservative nature of the shipping industry and “old-fashioned maritime laws,” external factors and technology are driving positive changes in breakbulk transportation. These include: • Supply chain traceability gaining importance and addressing concerns about product safety, sustainability and ethical sourcing. “Regulatory obligations require companies to conduct due diligence on their supply chains, identifying and addressing human rights and environmental risks,” he said. • Increasing technology integration in breakbulk operations, including the adoption of real-time visibility sensors. “This enables better route planning based on forecasted weather and port congestions, and understating asset aggregation in areas prone to natural disasters.”
Global
Credit: Shutterstock
FASTER TIMES TO MARKET New Zealand insurers rarely become involved with international shipowners’ liability policies, which are “written almost exclusively outside” of New Zealand, observed one local insurer. “Regarding accidents on foreignflagged ships in New Zealand ports, New Zealand is considered an outlier compared to the civil and criminal laws that apply in ports overseas,” said the contact, who requested not to be named. “New Zealand has an Accident Compensation Corporation (ACC) which is the Crown entity responsible for administering the country’s no-fault accidental injury compensation scheme. “New Zealand is a signatory to the Limitation of Liability for Maritime Claims (LLMC 1996) Convention and its protocols, so if ACC did not apply then the shipowner could try to limit their liability based on the ships’ capacity (gross tonnage), as would happen in any other signatory country.” The insurer noted that in New
• Increasing data analytics. “Although still slowly employed in breakbulk, using historical data to identify risks and optimize operations improves efficiency and safety.” • Operators in breakbulk shipping focusing on improving packaging and handling techniques for heavy or oversized items, “minimizing the risk of damage during loading, unloading and transportation.”
Zealand, chartered breakbulk has historically provided much faster transit times to market, “which is a primary consideration for perishable cargo.” “The great attraction of refrigerated breakbulk for New Zealand cargo shippers is that charters can go directly to market, and unload on specialized wharves with adjacent cool storage for immediate inland distribution. “However, breakbulk does also present some issues for cargo insurers. For example, while the chartered refrigerated vessels are smaller than containerships, there is greater concentration of financial value when the entire load belongs to one or two exporters.” Additionally, there are not a lot of refrigerated ships available for charter for New Zealand breakbulk export cargo. “Those which are, are old and the number of issues that can affect the refrigeration are increasing; new ones are expensive and complex to build.”
Plethora of Advice
Klimczak believed the marine insurance sector is “uniquely positioned” to offer comprehensive advice. “With access to historical claims data, insurers can conduct thorough risk assessments. They can identify patterns and trends related to specific types of incidents, helping them understand and quantify risks
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associated with different aspects of the marine industry,” he said. By analyzing past claims data, insurers can develop effective lossprevention strategies and can provide clients with recommendations on how to minimize the likelihood of events occurring, thereby reducing the overall frequency and severity of claims. Skuld (Far East) master mariner/ technical manager Captain Jia Hong Liu, describing breakbulk shipping as “by far the most important form of maritime transport in the world,” said that the industry can reduce risks by maintaining high standards of ship and terminal management. To this end, he praised P&I clubs for the regular advice they provide to help guide safety practices in the industry. As to whether some breakbulk carriers might be underinsuring to reduce costs in the current market environment, Liu said possibly, noting that it usually happens with hull insurance for ships. AXA’s Hughes added that, exacerbated by rising inflation, underinsurance is an issue that insurers will be “tracking closely over the coming months and years.” “The unique cargo handling requirements associated with breakbulk shipping have certainly raised costs, however, it is difficult to determine the extent to which this may have led to underinsurance in the marine industry,” he said. “Ultimately, we don’t want to see a trend in rising claims severity where high-valued cargoes have been significantly underinsured. Similarly, there should be consideration for regularly reviewing policy limits, particularly multi-year project insurance policies, which may need to be adjusted to reflect rising insured values.” Iain MacIntyre is a New Zealand-based, awardwinning journalist, with lengthy experience writing in the global shipping scene.
Europe
New Regulations Raise Redesign Questions
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he new European Machinery Regulation has passed all political hurdles and is due to come into force in 2027. The result is that more than 860 European norms and standards will have to be rewritten and harmonized to align with the regulation – and the impact on Europe’s heavy-lift sector will be profound. There isn’t enough time to do all that work, especially because the guidelines around interpretation to accompany the Regulation are yet to be completed, says ESTA, the European association for the abnormal road transport and mobile crane rental sectors. Ton Klijn, director of ESTA, said: “The guidelines are not finished and nobody knows when they will be finished. The regulation will be in force in January 2027. That is not very long when designing new equipment. On average, a crane manufacturer has
By Felicity Landon
Region: Europe Problem: New heavy-lift machinery regulation deemed “nonsense” and “technically impossible” Solution: If regulation can’t be modified, the use of secondhand equipment will sky rocket capacity to design about three new models a year. Just imagine how many models each has. In two years, you could redesign six models – about 10 or 20 percent of your range.” However, of more concern than the time constraints, the heavy-lift industry has flagged up two specific sections covering requirements relating to overhead power lines and protection against corruption. According to ESTA, manufacturers have repeatedly pointed out that building
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Credit: Mammoet
HEAVY MACHINERY IN EUROPEAN REGULATORY JAM the required safeguards relating to power lines into the design and manufacture of equipment is technically impossible, but despite these concerns the regulations were published largely unchanged. “There was consultation – but they don’t necessarily listen to what you say,” Klijn said. “Manufacturers, especially on the topic of power lines, are looking Ton Klijn
Europe
for some amendments. Until then, they will have to do their best. ESTA is pushing as hard as we can to get an amendment before the deadline.” It is “so obvious” that the present text won’t work, Klijn said. He predicted that until changes are made, the value of second-hand cranes will go up because these are not affected by the new regulations. Describing the regulations as “wishful thinking”, he said: “If manufacturers abide by the letter of the regulation, they can’t manufacture cranes anymore.”
If you can’t, use protective measures like a guard rail which is active at all times – while a harness is only active when a person does something. “Having the requirements in the Machinery Regulation means the European Commission thinks we have the means to solve a problem in a technical way, so it doesn’t come into the domain of the user. Of course, this is the case in many of the requirements. If you prevent something from being overloaded, then it can’t be overloaded. If you design equipment so it can’t tip over, then it can’t tip over, irrespective Confusion and Conflicts of what the person does with the The regulations state that all mobile equipment. So, you should follow the machinery such as mobile cranes TOP principle. But what if physics and access platforms should ‘where stands between you and a solution? relevant’ be designed to prevent This is the situation we have with this contact with overhead power lines ‘contact with power lines’ topic. or where the risk cannot be avoided, “This is a Machinery Regulation, designed to ensure that all hazards ‘of but they are only talking about the an electrical nature’ are prevented. operator,” Meissner said. “In real life, However, this confuses professional if you have contact to a power line, project management and site safety then the operator and other people procedures (covered by the EU Work in the vicinity are in danger.” Equipment Directive, a framework It must be understood that a power directive that is applied on a national line may or may not have a current basis according to member states’ own flowing through it, he said. A highlaw), with manufacturing standards, said voltage line might have no current Klaus Meissner, ESTA’s crane expert. flowing, so one cannot sense for “In principle, we have the TOP electromagnetic fields; but if a piece (Technical, Operational, Personal) of equipment makes contact, then pyramid. If you have a risk, you should the current will flow and it is too late try to eliminate it by technical means to sense the electromagnetic fields. – i.e. design it out. For example, if “We would have to sense for working at height, why not find ways electrostatic fields, which are that operators don’t have to climb up. much weaker and can easily be influenced by the presence of Klaus Meissner metallic parts, for example.”
operator – so in the TOP pyramid you are back at the bottom,” Meissner said. Klijn added: “The EC is saying that there are all sorts of systems that will prevent equipment hitting power lines – but the instruction manuals for these systems say you should stay 20 meters away because you can’t rely on it.” If job sites are managed properly, people should be addressing the risks correctly, Meissner said. “First, analyze if there is a power line in the vicinity of your project. If not, no problem. If there is, talk to the power line operator, ask if it is energized and at what level, and ask if they could shut down the line for a period of time. If not, plan your job so that you always maintain a certain distance and have people checking you do this. As long as this current practice is properly observed, nothing happens.” He also criticized the stipulation that if contact could not be avoided, every electrical hazard must be prevented. “This is the second piece of nonsense. What is every electrical hazard? A current can go through a crane and the tires can burn, ignite the hydraulics and everything is on fire. Can a control system on equipment decide what is the right action? No, the operator in the equipment must decide.” There are no devices in today’s market that can warn the operator and protect the equipment from power lines transmitting a broad variation of electrical power, said Peter van Oostrom, global projects assets director of Mammoet. “The most logical solution available today to mitigate this is to perform thorough Sensors for Safety risk analyses and job planning, There are products on the market working closely with the power line which claim to be able to detect companies to eliminate the power, electrostatic fields, but the measured and maintain a safe distance.” results of these sensors are not as However, he added: “On top of reliable as needed for a safety device, this, the crane’s electronics can Meissner said, “When you look at the support the operator, using the manuals for these pieces of equipment, working range limiter functions on you find information that the device the machines, where a digital spotter may not serve as a safety device. The stops crane motions at a set point sensitivity must be adjusted by the to stay clear from the danger.”
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Europe Mammoet said equipment manufacturers have a “significant task” to fulfill the requirement. Credit: Mammoet
The majority of the Mammoet crane fleet is purchased or built in Europe, van Oostrom said. “The equipment manufacturers have a significant task to fulfill the requirement related to overhead power lines. Mammoet is a member of the CEN/ EN 147/WG11 – Standard of Mobile Cranes EN13000, where this topic is giving a lot of discussion.”
Update Welcomed
The new Machinery Regulation is replacing the old Machinery Directive 2006; an update is welcome to be more up to date with today’s developments, van Oostrom said. “Both are broad, but the impact is different. Being or staying compliant has some challenges where we could use the Machinery Directive including norms and standards. With the new Machinery Regulation in place, the standards are not reviewed and updated yet. This means we need focus to ensure we fulfill both the Machinery Regulation and standards to maintain compliance. “With the Machinery Directive there was a manual that gave more details per topic mentioned but the new Machinery Regulation does not have such a document yet. We believe that for completeness, this is much needed to explain the background and use of some regulations.” A section on corruption in the new regulations also needs clarification,
according to ESTA. This states that any interface to the machine must be protected against corruption. This, said Meissner, is intended to protect against hackers taking over a machine and operating it in an unsafe or unintended way. “Unfortunately, they have written this chapter in a way that it is understood that any interface is to be protected – for example, the hydraulic interface, air, electric interfaces, etc. This has led to discussions where some truck manufacturers feel they could be liable if someone misuses interfaces, such as when refilling tires. Of course, we have to protect against sabotage but people with bad intentions will always find a way into those systems.” ESTA’s Klijn said: “The so-called protection against corruption means you have to safeguard your machine from being corrupted from outside – especially with the number of electronic interfaces. The EC doesn’t want someone in China hacking and taking over your digger. From a technical point of view, most machines can be influenced remotely. This is something the EC thinks we should safeguard ourselves from, but it is not easy to do. “You might also have to protect your hydraulics – how do you protect your hydraulic hose from someone cutting it? People who have written these regulations are on a high
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abstract level and don’t really have a connection with the ground as to how this might work out in practice.”
Connecting Theory with Reality
Safe equipment and safe equipment handling are very important, van Oostrom said, but it is so important to connect theory with reality. “In the real outside world, fulfilling these theories in equipment could result in redesigning equipment with some technical and probably also financial impact. For Mammoet, where we use our own designs for fabrication or assemblies of equipment, we need to review these before they can be reused again in new assemblies.” However, he concluded: “Fulfilling designs to the standard required by the new Machinery Regulation is not a goal in itself. It is the basis for safe design of machines. On top of the regulation, other standards have to be used like ISO, EN, and so on, which have an impact on all the parts and components you buy to be compliant. It is the assembly that is a challenge. The assembler of the final product is responsible in Europe for the CE declaration – meeting all requirements.” Felicity Landon is an award-winning freelance journalist specializing in the ports, shipping, transport and logistics sectors. *Exhibitor at Breakbulk Middle East
Profile
FEMALE LEADERSHIP:
EVIDENCE THROUGH ACTION
Elisabeth Cosmatos Takes Inspiration From Those Closest to Her
E
lisabeth Cosmatos, CEO of The Cosmatos Group of Companies and president of The Heavy Lift Group, attributes her leadership style to the influential figures in her life, particularly her parents. Speaking to Breakbulk, she emphasizes the importance of core values, instilled by her parents, which form the foundation of her leadership. Her father, a charismatic mentor, led by example, while her mother provided unwavering support for her career. The values of leading through actions, rather than words, and the significance of drawing inspiration from those around her have shaped Elisabeth’s approach to leadership. “You can learn or take something positive from any interaction as long as you are present in the moment and making an effort to understand,” she said. Elisabeth joined the industry in 1998 with a focus on defense logistics, centered on NATO deployment via Greece. “That’s how I got hooked on project cargo logistics - it was always difficult, and it was always in a hurry.” After that, she recognized that working with standardized cargoes would not challenge her, so she stuck with project cargo logistics,
By Carly Fields
When asked about influencing colleagues and boards, Elisabeth stressed the power of leading by example. She advocates for a leadership style that is evident in every action, email, and conversation. This approach, she believes, naturally aligns people with the values and vision of the leader. Elisabeth emphasized that only those whose energies synchronize with the organizational values will thrive, creating a cohesive and purpose-driven team. “So, inspiration comes from being 100% yourself in all business transactions and your overall business profile as an employer and colleague,” she said.
Honesty and Empathy
creating a specialized department in the family-owned company. With 26 years of experience in the shipping and logistics sectors, Elisabeth has been a driving force behind The Cosmatos Group’s success. Her expertise in project cargo and heavy-lift sectors, combined with her commitment to integrity and empathy, has not only propelled her career but has also positioned her as a respected leader in the industry.
Elisabeth added that she identifies honesty and empathy as the cornerstones of influential leadership. She sees honesty as a self-evident quality that builds trust and encourages authentic interactions. Empathy, meanwhile, is not only about supporting teams through challenges but also plays a pivotal role in fostering innovation and retaining talent. Recognizing that the success of a business is fundamentally tied to its people, Elisabeth highlights the significance of empathetic connections in enhancing relationships and overall performance.
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Profile
As president of The Heavy Lift Group (THLG), Elisabeth continues to contribute to the growth and global outreach of the association, showcasing her dedication to advancing the industry and fostering meaningful connections among professionals worldwide. Founded in 1987 by a consortium of westernEuropean heavy-lift operators in anticipation of the Single European Market, THLG has expanded to include companies from North and South America, Asia, Africa and other parts of Europe. Cosmatos joined THLG after an invitation from a Portuguese partner who recommended them as a possible candidate for membership. The procedure to join the group is robust, Elisabeth noted. “It’s not so easy to get in. It’s not just a membership. You have to have proven experience and have a recommendation from an existing member, or from at least three customers. If you are approved by the Exco, then you get the green light to go and present to the conference and it’s all the members who then approve or not. “THLG is not just another network because they care about who you
are, how much you really deal with, your experience and everything,” she added. Elisabeth has held the role of THLG president for a year and has served on the board for seven. She said there are many things that she’s proud at the group - “we have changed practically everything.” From rebranding and gaining coverage on five continents to getting everybody in the committee working for the group, the board spends much time planning and trying to increase networking possibilities for the group’s members. “You are part of a network which grows together with you, because the more the group progresses, the more potential comes to each separate member,” she said.
Building Confidence
Elisabeth has an overarching ambition for the group: to spread the word about what is different and unique about THLG, and why clients should feel confident in choosing a THLG member. “My biggest dream is that the THLG brand stands higher than each individual member’s company, like a sort of accreditation. If you are a member of this group, then it’s 100% sure that you’re credible, trustworthy, and experienced.”
Elisabeth promotes THLG as a trusted environment. Credit: Cosmatos Group
AT BREAKBULK MIDDLE EAST WOMEN IN BREAKBULK: HOW TO BECOME A MORE INFLUENTIAL LEADER Tuesday, 13 February 10:00 – 11:00 She also tries to promote THLG as a trusted environment where members can feel secure in exchanging information. “It’s not a matter of focusing on getting more business out of each member. That is not the objective,” she added. Instead, the objective is to build a bigger provider with global coverage so that members can deal with very big clients as one. “You might have the sales leads, but you don’t have the networking or even the funds sometimes to get into bigger contracts. Immediately you start from the third step.” To achieve her aims, first stop is ensuring that THLG has the right people. “Then we try to give opportunities for each and every member to promote themselves through case studies.” Elisabeth is also the Women in Shipping and Trading Association (WISTA) ambassador for northern Greece, promoting business, equality and diversification. With that background, she has an eye on creating stronger bonds between the female divisions of THLG. “I believe that many women are represented better by having a female president. It’s important for me that women feel equal and feel competent in a project or a community. Women are capable of so much and can give so much if they only take a moment to see their potential. And we can grow together.” Elisabeth Cosmatos is the newest member of the Breakbulk Editorial Advisory Board. Carly Fields has reported on the shipping industry for the past 24 years, covering bunkers and broking and much in between.
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Americas
DIGGING DEEPER WITH US
COPPER MINING Forwarders Could Benefit from Commodity’s “Critical” Status
S
uch is the importance of copper, global clean energy strategies are being undermined by a lack of mines under development. The metal is used in everything from domestic appliances to electrical wiring and is vital to build electric cars and upgrade electricity grids. Project forwarders have an essential role to play in the race for
copper – helping to source mining equipment and other materials around the world and delivering them safely and on time to the mining sites. They could now benefit from copper’s upgraded status in the U.S. – a development that may stimulate domestic production. “Copper is a major contributor to U.S. economic and national security,
with copper demand projections doubling by 2035, primarily due to plans for the clean energy transition, electrification and clean water infrastructure,” said Andrew G. Kireta, Jr., president and CEO of the Copper Development Association, a non-profit advocacy group. Not unexpectedly, Kireta welcomed the U.S. Department of Energy’s
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By Luke King
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Americas
continue to advocate for the inclusion of copper on the official USGS Critical Minerals list, especially since items such as the EV tax credit, inclusion on the permitting dashboard, and the many permit reform legislative initiatives circulating congress are all dependent on being on this larger list.”
‘Robust Growth’ Expected
According to a GlobalData report, U.S. Copper Mining to 2026, the U.S., currently the world’s fifth largest producer, is likely to see “robust growth” in copper output in the coming years. Despite a slight dip in U.S. production in the five years to 2021 – attributed to multiple factors such as declining ore grades, maintenance at smelters, poor weather conditions and pandemic-related disruption – GlobalData anticipates a Compound Annual Growth Rate (CAGR) of 5.6 percent during the forecast period spanning 2024 to 2030. Project freight forwarders will likely be tracking the progress of the circa 40 copper mines in various stages of development in the U.S. Later this year, Rio Tinto will ramp up underground copper mining at its Kennecott operation near Salt Lake City, Utah. The Anglo-Australian mining giant is investing nearly US$500m in the North Rim Skarn, which is expected to deliver around 250,000 tonnes of additional mined copper over the next 10 years. GlobalData has identified a number of copper mining projects that it Rio Tinto’s Kennecott mine believes have “higher probabilities near Salt Lake City, Utah.Credit: Rio Tinto of commencement,” including Back Forty Project in Michigan’s Upper inclusion of copper in its 2023 Critical Peninsula, which it said could have Materials Assessment last summer. The a copper production capacity of designation of copper as a critical raw 3.2kt and begin operations in 2025. material unlocks government subsidies By the same year, copper mining available under the Inflation Reduction could also commence at Pinyon Act, and follows similar moves by Plain Mine in Arizona, according to Canada, the EU, Japan, India and China. the data analytics firm. Formerly While acknowledging the known as Canyon Uranium Mine associated tax credits worth up to and located just 10 miles south of US$4 billion, Kireta added: “We will the Grand Canyon, Pinyon Plain has
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Region: Americas Problem: Demand for copper is outstripping supply in the U.S. Solution: Designation of the mineral as a critical raw material will unlock government subsidies and spur mining been able to circumvent a 20-year moratorium on uranium mining in the region, owing to the fact it was originally permitted in 1984. While uranium is the key focus, copper will also be mined at Pinyon Plain. GlobalData also highlights the South Mountain Project, a pre-development project focused on zinc, silver, gold and copper located seventy miles southwest of Boise, Idaho, which it says could be operational by 2028.
Huge Demand for Copper
Melanie Kenderdine, keynote speaker at Breakbulk Americas 2023 and executive vice president at the Energy Futures Initiative (EFI), a WashingtonDC based non-profit organization active in the field of energy policy, told Breakbulk that demand for copper would be “huge in the coming years.” This demand will be driven not only by renewable wind, solar power and electric vehicle production, but also by the large number of new transmission line towers, all made of aluminum, steel and copper, that will be required by 2030 if the U.S. is to hit its net zero targets, Kenderdine said.
Melanie Kenderdine
Americas
“COPPER IS A MAJOR CONTRIBUTOR TO U.S. ECONOMIC AND NATIONAL SECURITY, WITH COPPER DEMAND PROJECTIONS DOUBLING BY 2035, PRIMARILY DUE TO PLANS FOR THE CLEAN ENERGY TRANSITION, ELECTRIFICATION AND CLEAN WATER INFRASTRUCTURE.”
Smelting plant at Rio Tinto’s Kennecott mine in Utah. Credit: Rio Tinto
Notwithstanding the critical materials listing, she warned that inactive copper mines – including those in Arizona, New Mexico and Maine – would not “get off the ground at the expense of environmental considerations.” Kenderdine said: “Many of those inactive and potential mines are in very close proximity to Native American lands, so we are going to have to be cognizant of these issues as well. But the world and the U.S. need these metals and minerals – we are going to have to address both the issues of Native lands and the need for metals and minerals for the clean energy transition.” Stephen Westfield
An additional consideration is that many inactive mines in the U.S. are located on “Superfund” sites that are highly polluted with hazardous materials and therefore require clean up intervention. “This is an indication of the history of environmental concerns with mining that will need to be addressed as we move forward,” Kenderdine said.
Early Engagement
Like other project forwarders, Blue Water Shipping gets involved in mining projects as early as possible, including at greenfield stage before operations begin. In an interview with Breakbulk, Stephen Westfield, Blue Water’s global head of mining, said this was a “fascinating and exciting” time to be working in mining logistics. The Sydney, Australia-based executive agreed that the U.S. listing of copper as a critical material was an important development. “It will expedite copper projects, and not just the mining – downstream it will stimulate projects to process copper and lithium and other critical minerals, which have been historically shipped to countries in Asia for processing.
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We are seeing a shift to processing of minerals and integration along the value chain domestically in North America.” He believes global commitments to net zero are simply “not going to happen” without “dramatic increases” in mining of critical minerals – and that in turn will lead to more work for project forwarders. “There’s obviously the potential for logistics professionals to tap into these projects, and the U.S. is certainly a big part of that. Conceptually, we are looking at 50 new lithium mines, 60 new nickel mines, 17 new cobalt mines globally, just to meet demand, by 2050. It’s a big task but, ultimately, it’s up to the mining sector, stakeholders and governments to push through permitting and make these projects happen.” Blue Water Shipping launched its mining vertical 18 months ago following successes in Australia and Papua New Guinea, where its clients include Newcrest and First Quantum Minerals. The bullish forwarder is now rolling out logistics services for the mining sector into other markets, such as the Americas. Westfield noted that Blue Water was
Americas
A Blue Water Shipping vessel on time charter servicing Newcrest’s gold mine in Lihir Island, Papua New Guinea. Credit: Blue Water Shipping
bidding for gold, copper and lithium mine projects in Nevada and other North America locations, though he stressed that domestic procurement and trucking was a greater feature in the U.S., compared with Australia where there is “a massive dependence on shipping and chartering vessels.” He said Blue Water was increasingly seeing mining companies that liked to self-execute and bid for projects directly. “Generally speaking, the large Tier 1 mining firms retain some control over the project logistics task, supported by in-house shipping departments and logistics teams. Some mining companies have chartering managers, but they still call on Blue Water to utilize our in-house experts and engineering teams, especially when they have large volumes and Gavin Erasmus
complex shipments to manage. “We like to have early engagement and do tasks like logistics studies prior to the official tendering through the principal or the EPC. We try and engage well before there’s any RFP.”
to have on these two factors. It will definitely have financial benefits – but will it make permitting any easier, and will it stop the various groups taking up litigation against the mines?” Erasmus pointed to the numerous mining projects that are currently “tied Permitting Problems up” with legal and permitting issues. Last Environmental considerations were a year, the U.S. Environmental Protection key feature in a Breakbulk interview with Agency blocked the proposed Pebble Gavin Erasmus, Industrial Projects global copper-gold mining project near Alaska’s sector head for mining at DHL Global ecologically sensitive Bristol Bay. Forwarding. UK-based Erasmus has While acknowledging there was spent 20 years working in mining – either “a lot of potential in the U.S.,” the for OEMs, or mining houses themselves. DHL executive also returned to the While Erasmus thought the critical comparatively limited logistics scope material listing would have a positive associated with American mining financial impact, he too doubted the projects. “From a project forwarding move would shortcut the permitting point of view, the U.S. may not be your process. “The listing will provide some most attractive market, in that most tax credits and government subsidies, of the major construction material but I don’t think financing has been and the equipment required can the big issue in the U.S.,” he said. be obtained domestically. There’s “These projects are mainly in the always a lot of domestic trucking. Southwest, places like Utah, Nevada and “Compare that to somewhere like New Mexico – the desert – so permitting Pakistan, where everything is going has always been the issue from an to be imported – there are lots of environmental point of view, particularly different global origins and general water. Mining is very water intensive and and containerized cargo as well as if you are mining in the desert, you are charters, and that’s very attractive.” using a lot of a very limited resource. Luke King is a freelance reporter and “Then you have the added communications consultant who has been consideration that a lot of that land is involved in the project cargo industry since 2007. traditionally Native American, and I’m *Exhibitor at Breakbulk Middle East not sure what effect the listing is going
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Americas
PANAMA’S WATER WOES T he Panama Canal, a critical artery of global breakbulk and project cargo trade, faced an unprecedented challenge in 2023 – a severe water shortage. Historically high temperatures in the Atlantic Ocean, compounded by the El Niño phenomenon affecting the Pacific Ocean, delayed the rainy season in Panama, leading to a significant decrease in freshwater levels crucial for the Canal’s operation. October 2023 was the driest on record for the Canal, with 41 percent less rainfall than usual. The impact of the drought has been profound. On Nov. 1, 1965, the water level in the Gatun Lake was 85.68 feet; on the same date last year it was 79.71 feet.
In November 2023, the Panama Canal Authority, or ACP, acknowledged the gravity of the situation, highlighting the impact of climate-related factors on the canal’s water reservoirs. To address these challenges, the authority implemented a series of measures aimed at conserving water and optimizing transit efficiency.
Region: Americas Problem: Historic droughts have forced the Panama Canal Authority to restrict daily transits Solution: Project cargo handlers need to plan further out to secure slots, or accept delays to maintain freight rates
Issue 1 2024
By Carly Fields
One notable measure was the implementation of cross-filling in the panamax locks. This involved reusing water from one lock chamber for the other, resulting in savings equivalent to the average consumption of five daily transits. Additionally, simultaneous lockages were being performed when possible, allowing two ships to transit at the same time, occupying the same chamber. However, these tweaks could only go so far. Rather than the average of 39 transits per day recorded in fiscal year 2022, in November transits were restricted to 31 vessels per day, with nine through the neo-panamax locks and 22 through the panamax locks. A shipping notice published at the
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Canal’s Battle Against Water Scarcity
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end of October added that from Dec. 1-31, 2023, the number of booking slots would be further reduced to 22, and from Jan. 1-31, 2024, the number of booking slots would drop to 20. Then, in an advisory published on December 15, the ACP increased the number of daily transits to 24 for Jan. and Feb., effective Jan. 16, which will remain in effect “until conditions warrant changes,” the ACP said.
Limitations on Locks
Henrik Hansen, general manager for the Americas at AAL Shipping, explained the practical implications of the Panama Canal’s water shortage for breakbulk movers. AAL Shipping, Henrik Hansen
reacting to the limitations on lock options due to the reduced water levels, adapted its strategy late last year and switched to prebooking Panama Canal transit slots 60 days in advance, a considerable extension compared with previous practices. “What that has meant is that for any inbound voyages fronthaul from Asia, we will book the slot as the sailing starts in Southeast Asia,” Hansen said. “We have also had to build in a certain number of days as a buffer in case of delays on route through the Asian ports. Previously, we would have booked two or three weeks out.” Hansen emphasized the need for smarter and more contingency-driven operations, especially for smaller tonnage vessels. With the continuing
problems with Canal transits, AAL has shifted its focus to the U.S. Gulf, becoming more conservative in pursuing opportunities on the U.S. West Coast. The impact on heavylift fixtures has been mitigated, but volume cargo not involving heavy pieces is reviewed on a case-by-case basis to assess the associated risks. “In many cases in the projects we are involved in for discharge to U.S. West Coast or North Pacific ports, the projects are not designated for the coastline, but are typically inland. Therefore Houston and New Orleans still give an opportunity to cater to those inland destinations,” Hansen said. The Panama Canal Authority’s decision to limit transits further in 2024 is concerning, though. “That’s a significant drop from what we have seen in the past. Moving forward, this is something we have to take into consideration. If this is going to be the new normal long term, we have to take into consideration how best to mitigate any negative impact for our customers and overall voyage performance,” he said. Capt. Cesar Indaburu, the country managing director for Sea Cargo in Panama, agreed that booking well in advance is the key to avoiding delays. As a cargo agent, Sea Cargo has not experienced direct operational impacts so far. He foresees the current situation persisting until the next rainy season in 2024 when water levels are expected to return to normal.
Mitigating Impacts
In a business advisory to customers, vehicle carrier Wallenius Wilhelmsen said it was working closely with the ACP to monitor and respond to the conditions, ensuring the continuation of service. “Our team is proactively working to mitigate potential impacts on our services, such as securing earlier canal crossing slots, which are currently scarce due to the circumstances,” said a customer note from Nov. 10.
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Wallenius Wilhelmsen also referenced protests and road blockades that have hit operations in Panama and Colon, stressing that its canal and ports operations had not been significantly affected as of midNovember. “We remain vigilant and are prepared to respond to any escalation in these activities, which could disrupt crew movements and create logistical challenges. For the safety and efficiency of our operations, our team has transitioned to remote work and is fully accessible through mobile and email communications,” it said. In a Dec. 1 note, UTC Overseas advised customers that BBC and UHL had both announced that they did not expect any of their vessels to transit the canal for the foreseeable future. It said BBC has cited unpredictable wait times and costly reservation and auction procedures, while UHL said the stoppage was based on their MPV fleets’ vessel type and size. BBC will reroute voyages via the Magellan Strait or the Cape of Good Hope, and UHL estimates resuming normal operations through the canal in May-June 2024. “As conditions continue to evolve, UTC is closely monitoring the latest developments. We are committed to keeping you informed and your cargo moving, and are ready to advise on alternate routes or modalities to find the best solution for your needs,” UTC said. Christopher Knuth, CEO of KTC Logistics/KTC Heavy Lift in Honduras, gave a Central America perspective. Initially, he said, the reduction in daily transits resulted in a two-week delay for in-transit shipments from Asia, impacting clients who were unprepared for such disruptions. “With the drought getting worse, and the constant delays on the arrival of containers, clients have to work on this and coordinate their shipments with enough time – or seek alternatives to avoid the canal,” he said. As of Nov. 17, 2023, there were 131 vessels waiting to transit the Canal. Average queue time for nonbooked vessels was 6.2 days, although
Americas Records confirm that in the last two decades it has been raining less in Panama, including the Canal watershed, which supplies water to half of the country’s population. This is an unprecedented water deficit, which has led the Panama Canal to redouble its measures to conserve water and use it more efficiently in the Canal’s operations of the interoceanic waterway.
Credit: Panama Canal Authority
at least 10 ships in the queue had been waiting for 10 days or longer. Clients are faced with the dilemma of accepting delays to maintain rates or exploring faster but more expensive options outside the canal route. Knuth discussed alternatives to the canal, including use of ports in the Pacific such as Puerto Acajutla, El Salvador; Port Henecan, San Lorenzo, Honduras; and Port Corinto, Nicaragua. He cited a specific project where the shift from an Atlantic port to Puerto Henecan, San Lorenzo, on the Pacific side resulted in lost business due to differences in port draft and logistics. Looking forward, Knuth suggested that Honduras invest in the infrastructure of Puerto Henecan, emphasizing its solid roads and the recently constructed “Canal Seco” (dry canal) that reduces transit times. He advocated for regional cooperation on alternative shipping options but acknowledged challenges like corruption and failed government projects have hindered progress.
Contracting Challenges
Hill Dickinson lawyers have advised those whose charterparties, contracts
of affreightment and/or sales contracts are impacted, or who are currently negotiating future contracts that may be impacted, to carefully consider what this situation means for them and their counterparties and how it may be provided for within their associated contracts. “It is important to identify the allocation of risk under the contract for any delays and associated costs. Shipping clauses dealing with delay, detention of the vessel and demurrage should be reviewed carefully, as should any force majeure, Stoppage of Canals and Waterways clauses or similar,” said the specialist maritime law firm. In terms of sales contracts, it lists some considerations as: who is responsible for additional costs associated with the carriage; whether these costs can be passed up or down the contractual chain; what the demurrage provisions say; and whether time is of the essence in delivering the goods. In response to the ongoing water challenges, the Panama Canal Authority has been working on a Water Program since 2020. This initiative aims to provide a long-term solution to the
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water scarcity issue, with a focus on ensuring a stable water supply for the Canal’s operation over the next 50 years. However, for today, the water shortage at the Panama Canal presents a multifaceted challenge with far-reaching implications for global maritime trade. As the Canal navigates this crisis, stakeholders across the project cargo industry must adapt, innovate, and collaborate to mitigate the impact on operations, client satisfaction, and overall economic stability. Proactive measures taken by the ACP, coupled with the adaptive strategies of breakbulk companies and logistics providers, offer a glimpse into the resilience of the industry in the face of environmental challenges. Looking ahead, sustained efforts, regional collaboration, and innovative solutions will be crucial to ensuring the continued smooth operation of this vital international waterway. Carly Fields has reported on the shipping industry for the past 24 years, covering bunkers and broking and much in between. *Exhibitor at Breakbulk Middle East
Profile
EXPERIENCE IS TANIA SMITH’S PRECIOUS CARGO By Alex Keimig
S&B Manager Illustrates the Link Between Management and Mentorship
T
ania Smith, project logistics manager for S&B Engineers and Constructors, Ltd., is all about movement and flow. Whether it’s expressed in her abstract paintings or her role as a logistics manager, her passionate talent for smooth motion is undeniable. Smith began her logistics career in the 1990s as a procurement professional for an international company in her native Chile. After traveling the world and seeing significant evolution of supply chain and logistics operations in her twenty-five years of experience since – including working with AMECO, VF Corporation, Fluor Corporation and others – she describes the modern logistics landscape as an entirely different ballgame. “Where in the past logistics was simply the last link in the chain of many cooperating stakeholders, we are now part of the primary process. There are many different parties involved; it’s getting bigger and more complex daily. With processes so much larger than they used to be, early engagement from logistics parties makes final outcomes even more successful,” Smith said. Given her decades of success in the industry, it might come as a surprise that Smith’s logistics debut in Chile hinged on her degree in teaching English as a second language. “That was an extra tool for me. My degree didn’t just qualify me to teach; I spoke English. My first procurement job offered to train me because of it, and that was my start in logistics,” she said. Her communication skills, readiness to grow and appreciation for novelty made her an ideal trainee, and she continued to learn from professionals and partner vendors with whom she interfaced.
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Profile
“When someone asks for volunteers on a new project, be the first to raise your hand,” Smith advised. “You don’t need to know it all; you’ll learn once you get there. You don’t need to be the expert who already knows everything to get these opportunities. I raised my hand and went to job sites in the Andes Mountains – not only Chile, but Peru and Argentina – where I gained a great deal of experience in construction of mining and metal projects, including buying and transporting large equipment.”
Moving to the States
In 1998, Smith took the next leap by moving to the U.S. “Coming here to do international logistics work taught me so much about U.S. ports and highways, and how transportation, permitting and just-intime deliveries work here in general,” she said. “Everything was different. Another language, another unit system, another road system; the U.S. has this vast network of highways and railways between states that was very new to me. After a few years of learning, I jumped back into the EPC world because that’s what I really enjoyed: those big, large capital projects. “One thing I love about logistics is it’s not a linear field. It’s constantly changing, and every project and shipment tells a different story. No day is the same as the one before. There are some professions doing the same thing every day, which some people like. But for us, in this industry, we love the changes and evolution in getting to see different things – different countries, different pieces of engineered equipment and new project locations worldwide.” Smith also spent several years working on Middle East projects run by operating centers in the U.S., UK, and Philippines. These projects required significant cooperation across languages, time zones and work cultures to come together successfully. “It really impressed upon me that every one of your professional experiences, no matter how seemingly
small, continues to add to your ever-growing set of skills and qualifications,” Smith said. “Those skills are good for more than just one type of project.”
Coordinating and Managing
As she continued to put down roots and raise a family in the U.S., Smith found herself well-suited to managerial logistics roles. “I still love traveling, but I enjoy coordinating and managing big operations involving freight movements, imports, exports, compliance, stakeholder alignment, intermodal transportation operations and strategizing to reach successful outcomes,” she said. “Planning processes sometimes take six months to a year just to move one large piece of equipment. I strive to look at the bigger picture.” The bigger picture also includes the future of the breakbulk and logistics sectors, which Smith knows rests upon industry newcomers and emerging young professionals. That’s why she’s so eager to share her decades of knowledge and experience with them. She credits her mentoring work with the U.S. Exporters Competitive Maritime Council (ECMC) for having opened additional pathways to mentorship with local college students. “I’ve had the incredible opportunity to be on the ECMC Board as well as involvement with developing its various committees, and in my opinion, the education committee is one of the most important. We collaborated with Breakbulk Americas for Jerry Nagel Education Day, where we got to speak with students about our experiences, host panels, question and answer sessions, and a poster competition with local universities. It was amazing to be able to judge students’ work and see what these high-achieving newcomers are going to bring to the industry even while they’re still in school. I want to be a lifelong learner and educator; I’m
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Tania’s abstract art reflects her belief in movement and flow
always finding opportunities to learn new things as well as opportunities to share what I’ve learned with others.” The word “opportunities” might mean more to Smith than the average professional. “I like to call potential hurdles opportunities as opposed to problems. I like to focus on solutions we do have, instead of problems we might have. Whatever troubles may come, like another pandemic or similar disrupting event, we’re better equipped to handle them now than we’ve ever been. The Covid-19 pandemic put supply chain and logistics in the spotlight. In the past we were very much behind-the-scenes, and now suddenly everyone can see not only the value of strong logistics operations, but opportunities to get involved and even further improve our processes.” Be it on a canvas or columns of ocean containers, management or mentorship, supervising transport of small-sized boxes or mega-load cargo, Tania Smith has more than proven she can bring it all together. Alex Keimig is a Houston-based freelance journalist and communications expert specializing in logistics and shipping.
Credit: DHL
Americas
BREAKBULK VISITS DHL AMERICAS INNOVATION CENTER By Simon West
Technologies on Show in Chicago to Revolutionize Project Logistics
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magine your project team having access to an exact replica of a supply chain network. No more marker pens, whiteboards, and Excel spreadsheets. Instead, a “digital twin” that enables real-time simulation and analysis of an entire industrial project. Digital twinning technology – tipped for widespread adoption by
the industry over the next decade – is just one of dozens of cuttingedge solutions on show at the DHL Americas Innovation Center in Chicago, a 28,000-foot hi-tech facility that aims to bring real-world innovations to the logistics system. Breakbulk was thrilled to be given a recent hands-on tour of the
Center, one of four such facilities run by DHL – the others are located in Singapore, Dubai, and Cologne in Germany – that are driving customercentric innovation around the world. If you want to see technology in action, this is the place to be: A glimpse into the future where visitors can tinker with prototypes,
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discuss groundbreaking ideas, and listen to the brilliant minds behind these incredible tools. Jim Giedraitis, head of the Americas Innovation Center and Breakbulk’s guide for the day, said the four facilities welcomed a combined 13,000 visitors each year, all of whom get the chance to experience the next generation of logistics in an interactive showroom environment. “One of the powers of this place is in the engagements that we have with our customers through our workshops and tours that we do on a daily basis,” Giedraitis said. The facility works with technology partners and “accelerators” – entities that take start-ups and make them ready for the market. DHL identifies and showcases solutions that are already in deployment or are scaling up, as well as those in proof of concept or pilot project phase. The logistics giant also selects early-stage innovations to inspire visitors with visions of the future and open up the discussion around big ideas for potential applications. “Our exhibits are changing all the time. We are not a museum, so we are meant to change and evolve. Therefore the exhibits can vary in number, and they center around our trend clusters within our logistics trend radar,” Giedraitis said. Digital twins is one solution that boasts the potential to radically change the way we design, execute, and maintain projects. The technology is part of a new generation of AI-driven computer vision systems that allow computers to “see and understand” vast quantities of data that normal operators may not see. The technology can remotely monitor physical objects, identify flaws or deviations, and promptly initiate corrective actions. According to Jake Swanson, regional vice president – Americas operations, DHL Industrial Projects, digital twinning allows project professionals to plan for
any number of eventualities by asking hypothetical “what if” questions – “What if the component doesn’t arrive? What if we used rail instead of road transport? What if the project faces delays?” “Digital twins is a digital model or representation of either a physical location or a process,” Swanson told Breakbulk during our visit. “We work together with some of our customers that work in resupply – resupplying to their mining facilities or to oil and gas facilities. They come to us asking, ‘do we have the optimal supply chain, do we have the warehouses in the right locations, are we managing things the way we should?’ And with digital twinning, we can analyze these supply chains, putting them through a wide variety of different circumstances and scenarios. “The great thing about digital twins is that it allows us to evaluate an enormous amount of possibilities in a very quick manner. Different variables can be included, and you can evaluate how that impacts the supply chain and the freight profile for a project site.”
Many of the solutions on show will have a direct impact on breakbulk logistics, while some are designed to facilitate operations in other areas of logistics and shipping, such as warehousing or transport. Asked which of the technologies draws most attention from visitors, Giedraitis pointed to robotics and automation. “People may think, well robotics and automation already exist, and of course, they do, but what’s really exciting is that there’s so much room for growth. And that’s what gets our customers excited and us excited here at DHL,” the director said. “Innovation really is a mindset. It’s a team and group of openminded, curious people willing to try new technologies out and realize that failure is not always a failure. It can be a success in terms of knowing where these technologies and innovations can succeed and where they cannot succeed.” Alongside digital twinning are other technologies linked to computer vision that are set to reshape the
Visitors engage in an interactive tour of the showroom at the DHL Americas Innovation Center. Credit: DHL
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Customers participate in a demonstration of exosuits, a bionic enhancement that supports health and safety for warehouse employees. Credit: DHL
way we profile projects. Drones, for example, or unmanned aerial vehicles, have in recent years gained significant traction in the logistics industry. Commonly deployed for mid and last-mile deliveries, inventory management, surveillance, and warehouse operations, logistics specialists are starting to see the benefits of UAVs in project planning. “Most recently we’ve used them to measure cargo,” Swanson said. “The cargo comes in, we have it documented at certain dimensions, then we can use drones to take pictures from above and use the camera technology to measure the cargo to make sure it actually is what we think it’s supposed to be.” Drones are also being deployed for route surveys and project planning, the executive added. “Before a project gets started you need to make sure what route you use. Projects are located sometimes in very diverse locations in mountains or difficult-to-get-to areas. So using drones to be able to study and evaluate that route and work together with the project owner or customer to make sure we have
the proper route going into a job – that’s a great way to use drones. “It saves on manpower, it gives you a different perspective, and it can also be safer, especially when some of these locations are difficult to get to or you have adverse weather conditions – using a drone becomes very helpful.” Another key development within the realm of the Internet of Things, of IoT, is radio frequency identification, or RFID, a tool that uses electromagnetic fields to automatically identify and track tags attached to objects. For logistics, RFID can play a major role in linking cargo movements to the digital world. “One of the things that we do is use either RFID or scanning technology that allows us to always keep track of where things are,” Swanson said. “Whether it be on a project site or in transit, we can track using these technologies and then share the information immediately with our customers either through their own transportation management system and we send them the information, or they are accessing our management system.
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“It helps them to know where their pieces are, not lose them, and not spend extra money having to re-buy things because they lose track of them. It’s something that does happen, and that’s why we’ve developed these uses for this technology so we can provide savings, add value and service to our customers.” According to Swanson, as technology evolves and becomes more interconnected, the range of IoT applications is likely to expand, leading to more innovations and improvements in the way we transport cargo. “I think it’s going to keep growing and growing. We’re all connected in some way, and we need to have information when we want it, which is as soon as possible.” Find out more about DHL’s Innovation Centers at Breakbulk Middle East 2024, happening on 12-13 February at the Dubai World Trade Center. DHL’s Industrial Projects team will be exhibiting in the main hall at stand K50. Colombia-based Simon West is senior reporter for Breakbulk.
Americas
ACCIONA agreed a contract to build and operate a Chilean desalination plant for mining firm Doña Ines de Collahuasi. Credit: ACCIONA
DESALINATION DRIVES PROJECT VOLUMES Desalination Fast Becoming a Buzzword in South America
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n South America, demand for desalination plants is on the rise, in part because of the expansion of copper mines in Chile. The country has outlawed the use of fresh water for mining, so companies have turned to desalination to keep mines running. Indeed, Cochilco (the Chilean Copper Commission) claims that use of
desalination is expected to grow by a massive 230 percent by 2030. Jerry Ross, president of the Latin American Association for Desalination and Water Reuse (ALADYR), explained to Breakbulk that Chile has the highest installed desalination capacity in the region, with a rate of 9,500 liters per second. “This is due to a
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By John Bensalhia
Region: Americas Problem: Water scarcity has left Chile’s mining operations high and dry Solution: Construction of desalination plants in everincreasing numbers is opening the taps again
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combination of factors, including a decade-long drought, rapid population and economic growth in arid cities like Antofagasta, and an increased demand for water by the copper industry. To meet this demand, Chile has built 23 large desalination plants, with plans for another six, to serve the needs of drinking, industrial, and agricultural purposes.” An important benefit of desalination plants is the provision of a reliable source of clean drinking water. Ross
Rodrigo Izquierdo
gave the examples of Tocopilla in northern Chile and Puerto Deseado in southern Argentina: cities with over 20,000 inhabitants that suffer from a significant shortage of water from conventional sources. “However, they have implemented a robust and resilient supply system using desalination, which covers 100 percent of their drinking water needs. Unlike conventional sources of water, desalination is not subject to climatic variables such as rain or snowfall.” An abrupt change in the climate has also seen the need for more desalination plants. “The weather has changed violently during the last years, with average temperatures increasingly rising,” noted Rodrigo Izquierdo, CEO of Chilean freight forwarder, Integral Chile. “Most may say that that is the main reason of the current hydric shortage in the world. “With the increase of mining and industrial development (especially in the north of Chile), along with the abrupt change in climate,
there is a higher need of water, for industrial and domestic use. And don’t forget that in Chile, we have the driest desert in the world and actually, all the north is very dry.” As a result, more and more desalination plants have been built, offering a quick water solution, as well as project business for the industry.
Growing Business
Desalination plants can be sited anywhere along the coast: “Chile has the advantage of having a very long coast, so there are a lot of possible spots to install desalination plants,” Izquierdo said. “As long as all environmental measures are taken to avoid damage or pollution to the ecosystems, a much-needed economic development may start with something as basic as water.” Izquierdo added that in Chile there are currently around 30 desalination plants with most of them in the north, where mining is concentrated. “Never forget the huge industry that goes around mining, with all the suppliers such as equipment, clothing, laboratories, training centers, and vehicles and machinery,” he said. ALADYR’s Ross noted that transportation and installation of large equipment to construct desalination plants, for example pumps and membranes, has become much more efficient over the years due to process refinements, even in difficult-to-access locations. “Additionally, the market now offers more compact and relatively portable solutions for emergencies. One such example is the Água Doce program in Brazil. It consists of a group of desalination plants for brackish wells in rural communities located in the northeast region of the country.” But there are challenges to overcome when servicing the burgeoning desalination industry, particularly when it comes to obtaining permits and adhering to regulations. “In some cases, construction can be
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delayed by up to four years due to the lack of timely response from the authorities involved,” Ross said. Izquierdo noted that in Chile, logistics are easier than in other countries because of the territory. “We have a main highway that goes along most of the country and every important city connects to it. Also, there are some ports well suited to handle project cargo, some of them quite close to where the sites are, while others are farther away, but that’s where companies such as Integral Chile enter. Sometimes the only choice is the longer route, so a logistics company must know how to plan efficiently, do everything in the checklist and stick to the timetable or even beat it. “To mount a desalination plant (or any other similar infrastructure) is no small feat. It’s a long-term activity that takes a lot of planning and rapport even before starting.” Roi Zaken Porat, in charge of water treatment process at IDE Technologies, agreed that the construction process is a lengthy one, adding that desalination plants are also expensive to build and also, in some cases, unsustainable. However, desalination plant provider, IDE Technologies has come up with an economical solution that Porat said can reduce installation time by up to 70 percent while also providing substantial capex and opex savings. “We do this by using modular assembly instead of the old way of welding metal frames at the construction site, installing the equipment and welding the pipe at the site. We do all of it before we start installation.” IDE’s large-scale reverse osmosis desalination plant is pre-fabricated in a workshop with all equipment and piping readily installed and tested on the skids before it reaches site. IDE has recently been given the go-ahead to execute the EPC contract of the SADDN desalination plant, an initiative from Chilean state-owned copper mining company CODELCO to reduce water consumption levels by 60
Americas
Daily desalinated water production is about roughly 20 gallons per second at Chile’s Tocopilla plant, which equates to 1,711,835 gallons of drinking water per day. Credit: Aladyr
operations and using the surplus for drinking water and agriculture in adjacent communities.” Izquierdo added a note of cautious optimism. “With all the forthcoming development projects, especially in the north of Chile, such as mining (lithium/copper), energy or industrials, I’m very sure that there is a bright future, at least for a while. “But it’s very important not to forget that there are a lot of environmental regulations that are growing in strength and that will put a lot of pressure on these kinds of projects. There are other ways to provide or generate water in a cleaner way, but they are not as cost-effective or as quick as a desalination plant - at least not now.” He concluded that as long as desalination projects are responsible, fulfill all regulations, and take care of all necessary environmental issues, there will be a rise in the number of plants being constructed in Chile.
percent by 2030. With CODELCO aiming to reduce its water consumption from conventional inland sources by 2030, the new initiative features a number of facets. These include desalination plant intake and outfall systems, a 160-kilometer pipeline and three pumping stations that are designed to lift desalinated water to around 3,000 meters above sea level.
Ross said that close collaboration with the local authorities and detailed planning following project construction schedules are important considerations. Looking to the future, Ross says that the technology for desalination is expected to advance further, making it more efficient and sustainable. “This progress may lead to a rise in the number of desalination plants Right Experience being constructed in regions To handle projects of the size and affected by water scarcity. importance of desalination plants, “As climate change and droughts John Bensalhia is a freelance writer and Izquierdo said that it’s essential continue to reduce the availability author with 25 years’ experience of writing for to have the experience of having of natural water sources, and a wide range of publications and websites. managed different projects or at least water demands from population special cargo. “You need to know the and economic growth continue to geography, how the ports work, to have increase, there will be a greater the correct suppliers and partners, and need for seawater desalination. of course planning capability and the “Moreover, inhabitants of agricultural resources to participate in the long run.” areas that have been affected by But as Izquierdo added, the most desertification, such as those in Baja important factor is the people and their California, are now demanding that know-how. “For example, it’s important their political representatives install to know how to execute operations, plants to recover their activities.” when to adjust and how to manage Ross added that multipurpose the unforeseen, to react quickly and plants are also becoming more efficiently. There is a lot of money popular in the market, as they involved on each project and there is allow greater integration between little to no room to make mistakes.” companies and society. To avoid delays or undue storage “Hence, it will become more of sensitive equipment such as common to see a mining company reverse osmosis membranes, in Chile constructing a plant for its
“AS CLIMATE CHANGE AND DROUGHTS CONTINUE, THERE WILL BE A GREATER NEED FOR SEAWATER DESALINATION.”
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CANADA PROJECTS
HEAD UPSTREAM Oil and Gas Production Rises in the Energy Transition Era
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hile the world is focused on the energy transition, fossil fuels are still essential to modern life. Canada is the world’s fourth largest producer of oil and fifth largest producer of natural gas, and its level of production is rising. Ten-plus future oil and gas projects with price tags ranging from CDN$5 billion to CDN $55 billion (US$3.7 billion to US$40.3 billion) are on the drawing board, and while some are delayed, all offer up great opportunities for supply chains and for the project service sector. The global oil price crisis that hit in the spring of 2020 made its mark in Canada, with a plunge in production, employment and exports. A year later, Statistics Canada figures showed that the oil and gas sector had largely recovered, except for its capital expenditures. Uncertainty that persisted, related to developments such as new regulations, the end of the Keystone XL project, the global
energy transition, and carbon pricingrelated production cost increases, hampered investment decisions. According to Weimin Wang with StatsCan’s Economic Analysis Division, oil and gas capital expenditures had been in decline since 2014: “Capital outlays fell by 55 percent from 2014 to 2019 and then by another 36 percent in 2020.” A turnaround came in 2021. Oil and gas extraction capital expenditures and expenses were on the rise. From 2021 to 2022, capital expenditures soared from CDN$25.8 billion to CDN$37.1 billion, StatsCan reported. Lisa Baiton, president and CEO of the Canadian Association of Petroleum Producers, in a November 2023 speech to the Canadian Club of Toronto, said she expected investment in upstream production in Canada would continue to grow, reaching CDN$40 billion in 2023. Lisa Baiton
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Production Trends Upwards Investment isn’t the only marquee moment. Canada’s crude oil production hit 24.8 million cubic meters in August 2023, its best monthly showing since StatsCan started collecting the data in 2016. Synthetic crude oil drove production with a 16.6 percent year-over-year increase. Canadian natural gas production has also been on the rise, with year-overyear growth of 2.9 percent to almost 660 million gigajoules in August 2023. ConstructConnect’s January 2023 roundup of ten of Canada’s upcoming oil and gas construction projects was topped by Nisga’a Lisims’ CDN$55 billion LNG project, currently in pre-design. The list includes five projects in British Colombia, three in Alberta, one in Nova Scotia and one in Newfoundland, each valued Charlene Johnson
Region: Americas Problem: An oil price crisis and subsequent drop in production, employment and exports curtailed Canada’s crude ambitions Solution: A return of investment to the sector has seen project prospects dramatically improve
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By Lori Musser
Americas in excess of CDN$5 billion. Several of the projects have announced delays, but the slate is promising overall. The Bay du Nord project in the Flemish Pass basin, located northeast of Newfoundland, has been postponed for up to three years, but, “we are confident it will proceed,” said Energy NL CEO Charlene Johnson. She added that the project’s estimated reserves are almost one billion barrels, and that its product will be the sort of lower carbon oil the world desperately needs. Norway’s oil giant Equinor and its partner BP announced the delay in May 2023, mentioning challenges related to changing market conditions and inflation. Equinor spokesperson Ola Morten said there isn’t much new to say about the project, except that, “Equinor continues optimization work to improve the Bay du Nord development project business case following the project postponement decision.” They remain busy in the Newfoundland market. The company has been in Canada since 1996 and has been “a leading explorer” in offshore Newfoundland for the last decade.
Equinor is still planning two new exploration wells in 2024, Morten said to Breakbulk.
Broad Benefits
Canada’s oil and gas projects – including new construction, expansions and upgrades, and ongoing extraction work – generate opportunities in the supply chain, as well as in engineering, fabrication and construction, workforce development, and research and development, among other specialties. Baiton said the oil and gas supply chain across Canada supports more than 1,000 businesses and 400,000 jobs. She said: “There is simply nothing else that can replace the national economic benefits that come with producing and exporting oil and natural gas in Canada.” While there is a large roster of new projects pending, other projects are nearing completion. In British Columbia, a trio of oil and gas megaprojects are wrapping up. The Trans Mountain pipeline expansion and the Coastal GasLink pipeline are almost complete, and LNG Canada is expected to wrap next year.
A 2024 refit of the SeaRose FPSO will serve the West White Rose expansion project. Credit: Suncor
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Hibernia is described as “a stalwart of our offshore” by Energy NL CEO Charlene Johnson. Credit: Suncor
The Port of Vancouver – along with its terminal operators, carriers, and other transportation partners – serve as important links in the megaproject supply chains. In 2021 and 2022, the port logged roughly 1.2 and 1.3 million metric tons, respectively, of construction materials, machinery, piping and similar types of project cargo. The specialty cargoes were largely handled by DP World Fraser Surrey and Western Stevedoring at Lynnterm. Established corridors for overweight and over dimensional project cargo help expedite movements to site, according to the port. Oil and gas is also vital to Newfoundland and Labrador’s economy, accounting for a whopping 25 percent of the province’s nominal GDP over the last two decades. The province’s economic recovery plan, The Big Reset, plans to double offshore oil production by 2030. The window of opportunity is short because, the report said, the global energy transition is expected to eventually eliminate the market for fossil fuels. Eventually is the key word. Newfoundland’s offshore fields continue to produce. Johnson said: “The Hebron project is our latest producing field and continues to be a significant producer, along with Hibernia, our first project, which while celebrating its 25th anniversary one year ago, is a stalwart of our offshore and has produced over a billion barrels of oil.” The types of supply and service
opportunities associated with oil and gas fields vary greatly. Johnson described some recent projects, including a 2024 refit of the SeaRose FPSO, stationed on the White Rose field, and the West White Rose expansion project, which will include the installation of a concrete gravity structure wellhead platform in 2025, with first oil anticipated in 2026. “Similarly, the Terra Nova FPSO has recently returned offshore after an asset life extension program and is expected to return to production in the coming weeks, if not days. This will extend the project for upwards of 10 years and produce 70 million barrels,” Johnson said. Simultaneously, Newfoundland is undertaking significant work with “sector partners as we look to reach net zero targets. This includes in-depth exploration of our CCUS (carbon capture, utilization and storage) potential and the possibility of commercializing our natural gas resources,” Johnson said. She also mentioned wind, tidewater, hydrogen, and hydroelectric pursuits.
Clock Ticking
While crude prices have been the key factor influencing capital expenditures in Canadian oil and gas, that’s changing. Regulation and declining demand mean that fossil fuels will eventually be rejected. The question is when. The International Energy Agency expects that global demand for fossil fuels will peak during this decade. Conversely, Canada, according to the
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“CANADIAN OIL AND GAS PRODUCERS ARE PROVING THAT GROWING PRODUCTION AND CONCURRENTLY LOWERING EMISSIONS IS POSSIBLE.” Canada Energy Regulator, is likely to increase production throughout this decade and remain “resilient” in its production over the next 30 years. The cost-effective “oil sands” that deliver a large portion of Canadian oil are expected to produce for a while yet. CAPP CEO Baiton said that Canadian oil and gas producers are proving “that growing production and concurrently lowering emissions is possible,” noting that Canadian upstream producers are among the nation’s leaders in Cleantech investment. And, “Canada’s offshore industry produces the lowest-emissions intensive oil in the world,” according to Baiton. She said Canada’s oil sands, for example, have a plan to get to net-zero by 2050. In Baiton’s recent November presentation, Unleashing Canada’s Greatest Competitive Advantage, she said that Canada’s unique energy advantage, if unleashed, can enhance Canada’s geopolitical might and its economy while lowering global emissions. Canada has new fossil fuel projects, expansions and upgrades in the offing, and plans to continue to ramp up production for a while, according to the Canada Energy Regulator. It seems that oil and gas both have a place in the future of energy, providing opportunities for project cargo handlers for a few more decades. Based in the U.S., Lori Musser is a veteran shipping industry writer.
Asia
FIRING UP INDIA’S COAL SUPPLY India’s Eyeing New Mines to Meet Energy Demands
India’s coal production is forecast to double by 2028. Credit: Shutterstock
based in Berlin. However, making significant progress with renewable ith India’s coal production energy while preparing to double coal expected to double in the next four production presents quite a paradox. years, its 427 million tonnes per What’s on offer for project cargo annum (mtpa) of planned new coal mine handlers? A brief published by Global capacity will place it second in the world Energy Monitor, or GEM, in 2022 reported after China with 596 mtpa – and provide that there were 99 proposed coal mines a slew of project cargo work. in India, with 77 percent of planned Following the announcement that capacity clustered in just three states: India aims to reach net zero carbon Chhattisgarh, Jharkhand, and Odisha. emissions by 2070, it has been The initiative to open new mines acknowledged that the country has would bode well for the project cargo made significant progress in renewable sector, as the mines would create energy capacity installation, ranking increased demand for transportation fourth in the world in 2022 according to of mining construction equipment the Climate Action Tracker, a non-profit and mining infrastructure. The climate science and policy institute project transportation sector could By Thomas Timlen
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also benefit from demand from the 26 new railway projects linked to the coal mining initiative, 10 of which are considered as critical and to be pursued on a priority basis for completion within the next three years. Expansion of roads and other infrastructure would also create additional demand for transportation providers. NLC India Ltd. and Hindalco Industries Ltd. were reportedly among the companies that will be operating six coal mines that were put up for auction in 2023 in the seventh round of auctioning of mines for commercial mining. A total of 92 mines have been auctioned so far, only seven short of the 99 projected by GEM.
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Asia
Region: Asia Problem: India needs to bolster its energy security to stave off a power crisis Solution: Commitment to new coal mines will double production over the next four years
Addressing a Power Crisis
The onset of a power crisis in India in 2022 emboldened the national government’s plans to mine more coal and advance its long-standing commitment to produce 1,000 million tonnes in 2023-2024. As the coal ministry devised new measures to rally production, the backbone of the scheme was the continued privatization of the mining sector and the opening of new coal blocks for commercial auction. However, a survey conducted by GEM of every operating coal mine and proposed project in the country found that the industry suffers from chronic underutilization. With 1,211 mtpa of approved capacity at its operating coal mines, 433 mtpa, or 36 percent of that capacity is idled and unused. At some large coal mines, underutilization is so severe that operators mine just 1 percent of available capacity. Dorothy Mei, GEM’s project manager, told Breakbulk that there are hurdles to overcome before new projects can Dorothy Mei
progress. “The private sector lacks sufficient incentives to engage in the development of new coal mines in India. The recent decline in global coal prices in 2023 and the production increases of Coal India Limited (CIL) have cast doubt on the wisdom of pursuing commercial coal auctions. “The prospective mining development projects are also situated in forested areas, necessitating longer lead times for environmental review, greater expenditures for exploration and development, and provoking resistance from local communities.” Global events have also had an impact on India’s plans. “The geopolitical tensions with China, and the impact of the Russia-Ukraine war, have heightened India’s resolve for energy independence,” Mei said, “but the primary impetus behind this pursuit remains the country’s domestic energy demand. “In the past two years, the production of coal hasn’t kept up with the soaring demand fueled by severe weather and post-Covid-19 economic rebound, which has prompted India to push for new coal mines to avoid major power shortages. While India is relatively less reliant on coal imports compared to oil and gas, it still sources over 20 percent of its coal from overseas, especially for metallurgical coal.” GEM’s report showed a notable uptick in approvals for coal power plant projects in the first half of 2023, with three non-captive coal plant expansions (3.9 GW) receiving permits in the first five months of 2023 and seven other proposals (7.6 GW) also moving forward in the permitting process by receiving Terms of Reference, and two additional projects (2.9 GW) under consideration for the first time in 2023. “New coal mines can’t open fast enough to ease these short-term demands,” Mei said.
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Investment in New Mines
GEM’s brief noted that “up to 70 percent of the country’s active mines operate at a financial loss.” Some firms faced significant financial difficulties after entering the sector, poor performance that could discourage potential operators from opening new mines. Under these circumstances, what is the motivation to pursue operations that do not generate profits? “The financial losses may not really deter potential operators, particularly big state-owned enterprises like Coal India, from opening new mines,” Mei explained. “These operators often receive government subsidies, which can offset financial losses. The primary motivation for continuing operations despite lack of profitability lies in the national goal of achieving energy independence since India is focusing on leveraging its substantial coal reserves to reduce reliance on imported energy sources. The strategic importance of coal mining may outweigh immediate financial considerations.” Internal arrangements are one factor, but there are also factors beyond India’s borders. Aside from geopolitics, environmental groups also have an impact. In Australia, pressure has been applied by environmentalists regarding mines operated by Indian companies there, which could be seen as another driver that adds to India’s desire to have more coal mining conducted in India. However, GEM’s Program Director for Coal, Ryan Driskell Tate, told Breakbulk that the environmental campaigns in Australia against the Carmichael coal project are unlikely to encourage new mining inside of India. “The Godda power plant originally intended to source coal inside Jharkhand but only later changed to source from Australia’s Carmichael coal project, with electricity exported to
Asia
Dulanga coal mine. Political pressure and subsidies will support the development of new coal mines in India. Credit: NTPC Ltd
Bangladesh,” he said. “The maneuver was viewed by some as an effort to prop up the Carmichael mine amid controversy. As GEM has found, India has a widespread underutilization of its existing mine capacity. Whatever happens with Carmichael, the supply should be sufficient at existing operations inside India.”
Domestic Versus Global
If India’s initiative does result in new mines being established, project cargo transportation services will certainly be needed. The question is, is there sufficient domestic construction and transportation capacity to meet the needs of India’s ambitious initiatives to establish new mines, or will it be necessary to involve foreign service providers? “As evidenced by the halting of passenger trains to free up rail track to move coal, India lacks the infrastructure to meet their ambitious coal initiatives. Despite the 13 coalrailway projects currently underway and an additional 26 announced, as long as India’s coal production targets continue to increase yearover-year, its coal phase-up plans will continue to outpace its coal infrastructure capacity,” GEM’s researcher Tiffany Means said.
“Not having a coal logistics roadmap in place prior to coal phase-up is thwarting India’s efforts to decrease dependence on coal imports and is costing India more in crore and carbon dioxide emissions, since rail is more cost-effective and environmentally friendly than other modes of coal transport, such as coal trucking,” she added. “What’s more, the Ministry of Coal and Indian Railways doesn’t expect coal evacuation requirements to be met until nearly 2050, a mere 20 years before India’s 2070 net zero target. This could not only put India at risk of missing its net zero emissions goal, it could also put the country’s planned coal infrastructure at risk of becoming stranded assets.” While there have been no significant developments since August 2023, as of September 11, 2023, India’s Ministry of Coal had formally signed agreements with the successful bidders of all six coal mines which were auctioned off during the seventh tranche of commercial coal mine auctions. According to Means, the mines and their new mining companies include: • Meenakshi West (partially explored) - located in Odisha State - owned by Hindalco Industries Ltd • North Dhadu East (explored)
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- located in Jharkhand State owned by NTPC Mining Ltd • North Dhadu West (explored) - located in Jharkhand State - owned by NLC India Ltd • Pathora East (partially explored) - located in Madhya Pradesh State - owned by Shri Bajrang Power and Ispat Ltd • Pathora West (partially explored) - located in Madhya Pradesh State - owned by Shri Bajrang Power and Ispat Ltd and • Sherband (partially explored) located in Chhattisgarh State - owned by Nilkanth Coal Mining Private Ltd Details of future tranche auctions haven’t as yet been released. Despite the combination of poor performance of companies operating the mines and pressures to achieve the 2070 net zero goal, it appears that political pressure and subsidies will bolster plans to create new coal mines in India, and with that dynamic, opportunities for the project cargo transportation sector will naturally follow. Thomas Timlen is a Singapore-based analyst, researcher, writer and spokesperson with 31 years of experience addressing the regulatory and operational issues that impact all sectors of the maritime industry.
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NEARSHORING TO MEXICO FUELS CARGO-CARRYING OPPORTUNITIES Mexico’s emergence as a hotspot for nearshoring is creating new cargo-carrying opportunities for shipping and logistics, industry professionals told Breakbulk. The number of firms from outside the Americas choosing to relocate all or part of their operations to the region to reduce supply chain risks and save on production and transport costs has soared over the last few years, thanks in part to the massive tariffs on Chinese imports imposed by former U.S. President Trump in 2018 and the disruption in global supply chains caused by the pandemic. Leading manufacturers of automobiles, electronics, pharmaceuticals, heavy machinery, and other products are being lured to Mexico by its free trade agreements with the U.S., a stable business environment, a skilled workforce, and labor costs that are up to 30 percent cheaper than in China. “Chinese firms are looking at Mexico as a new opportunity to circumvent some of the restrictions, but global and European companies are also eyeing Mexico as a way to produce cheaper and get closer to the U.S. market,” said Diego Rodriguez, logistics and industry director at Americas Market Intelligence. Still, nearshoring has exposed a growing gap between current investment and Mexico’s infrastructure needs, Rodriguez said, pointing to the availability of electricity and water supplies as particular concerns for new manufacturing facilities. In the
Carlos Carcoma
south of the country, investment in logistics infrastructure such as warehousing facilities, railroads, roads, and industrial facilities is also a priority. The government, keen that Mexico remains a hotspot for nearshoring, is taking steps to address the shortfall. As such, the director expects opportunities to open up for breakbulk as new project announcements are made. “The forecast for demand in terms of power generation in the next decade is growing at a double-digit rate, so there will be great need for industrial equipment,” Rodriguez said. “The country is also building industrial parks, power plants – and this requires a lot of steel, a lot of building materials to meet the demand.” As more companies bring their production to Mexico or expand their existing businesses, transport opportunities for shipping and logistics will also grow. New clusters are starting to form in different regions of the country – the northern state of Nuevo
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Leon, for example, has emerged as a hub for electric vehicle production, with companies such as Tesla planning to build new facilities there. Carlos Carcoma, asset-based sales director at Mexico-headquartered heavy-lift specialist Tradelossa, said nearshoring was a “second, once-in-a-lifetime opportunity” for Mexico following the NAFTA free trade agreement with the U.S., which came into force in 1994. “Mexico has already become the number one trading partner of the U.S. [in 2023], above China. If the right political decisions are made, then nearshoring could bring growth not only to the industrial sector in Mexico, but to the whole nation,” Carcoma told Breakbulk. Mexican companies such as Tradelossa are adapting to the demands of manufacturers choosing to set up shop in Mexico, particularly in areas such as sustainability and cleaner fuels. “We always want to be top of our industry by complying with the requirements of foreign companies – they bring investments, they develop big projects – and we want to be there, we need to adapt to their needs,” Carcoma said. “So how can we optimize our processes? How can we adapt technology and innovation into our freight services? In other words, how do we add value to those companies that come here?” Tradelossa is an exhibitor at Breakbulk Americas and Breakbulk Europe. In 2023, the company celebrated its 50th anniversary.
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AIRBUS TO RENEW FLEET OF TRANSATLANTIC VESSELS Airbus has announced plans to renew its entire fleet of chartered transatlantic vessels with a trio of dualfuel, wind-assisted roll-on, roll-off ships. Airbus, Europe’s largest aeronautics and space company, has contracted Louis Dreyfus Armateurs to build, own and operate the vessels, which will be deployed from 2026 to ferry aircraft sub-assemblies between production plants in France and the U.S. The new fleet is expected to more-than-halve annual transatlantic CO2 emissions from 68,000 to 33,000 tons by the end of the decade, Airbus said, helping to achieve its target of cutting overall industrial emissions by up to 63 percent from 2015 levels over the same period.
“The renewal of our marine fleet is a major step forward in reducing our environmental impact,” said Nicolas Chretien, head of sustainability and environment at Airbus. “The latest generation of vessels proposed by Louis Dreyfus Armateurs are more fuel efficient than their predecessors, using cutting-edge technologies like wind-assisted propulsion. This demonstrates our determination to lead the way in decarbonizing our sector by innovating not just in aviation, but across all our industrial operations.” Airbus said the new vessels would be powered by a combination of six Flettner rotors and two dual-fuel engines capable of running on maritime diesel and e-methanol – a
Rendering of the new vessel, chartered by Airbus. Credit: Airbus
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low-carbon methanol produced from green hydrogen and captured CO2. Routing software will optimize the vessels’ journeys across the Atlantic, it added, maximizing wind propulsion and avoiding drag caused by adverse ocean conditions. The vessels will have the capacity to ship some seventy 40-foot containers and six single-aisle aircraft sub-assembly sets – wings, fuselages, engine pylons, and tail planes – compared with three or four sets with its current fleet. The new ships will support Airbus’s plans to boost production of its A320 aircraft to 75 per month by 2026, the company said. Airbus and Louis Dreyfus Armateurs are regular exhibitors at Breakbulk Europe.
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AT BREAKBULK MIDDLE EAST
DSV nighttime move in Middle East. Credit: DSV
SAUDI ARABIA SPOTLIGHT: PROJECT UPDATE Monday, 12 February 14:30 - 15:15
DSV, NEOM SET UP US$10 BILLION LOGISTICS VENTURE Denmark-based forwarder DSV and Saudi company NEOM have announced a US$10 billion logistics joint venture (JV) to support the buildout of one of the world’s most ambitious infrastructure projects. The JV will provide a “full suite” of ground, sea, and air logistics services for Saudi’s half-a-trilliondollar NEOM giga-project on the Red Sea Coast, the two companies said. Those services will include endto-end supply chain management, development and investment in transport and logistics assets, as well as the transport and delivery of goods and materials within NEOM. A dedicated innovation center at NEOM is also part of the JV’s plans, the companies said. NEOM will own 51 percent of the venture, with DSV holding the remainder. “The projected demand in both
construction and non-construction logistics will make NEOM one of the largest customers in the world, and this partnership allows NEOM to create value from its demand,” said Nadhmi Al-Nasr, CEO of NEOM. “Working alongside one of the world’s leading logistics companies, the JV with DSV will build on expertise and know-how to drive innovation and sustainability throughout the logistics value chain. The economic benefit to this partnership will not only provide tens of thousands of jobs, but it will also enable growth to capture local and regional market share.” Jens Bjørn Andersen, Group CEO at DSV, said the venture was a “unique opportunity” to support one of the world’s largest and most complex projects. “DSV already has a strong presence in Saudi Arabia, and this is a significant growth opportunity
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for us in the region and we look forward to working with NEOM and bringing our logistics capabilities to the table,” the executive said. NEOM, in northwestern Tabuk Province, is one of several worldscale projects that the kingdom is developing as part of its Vision 2030 plan to pivot the economy away from oil and gas towards more sustainable, private sector-driven industries. The 26,500-square-kilometer business and logistics zone will house ports, industrial plants, sports stadiums, green energy facilities and a hi-tech, 170-kilometer-long smart city dubbed The Line. NEOM envisions “unparalleled demand” for construction logistics at the giga-project through to the end of 2031. DSV will be exhibiting at Breakbulk Middle East at Stand E10. The company is also sponsor of the Breakbulk Studios.
Opportunities
PROJECTS IN THIS ISSUE Project: Ammonia-7 blue hydrogen facility Story: Middle East Hopes Hang on Hydrogen (page 26) Country: Qatar Sector: Energy Developer(s): QatarEnergy
Project: Jindal Shadeed Iron and Steel Facility Story: Transforming Oman’s Cityscape (page 42) Country: Oman Sector: Steel Developer(s): Jindal Shadeed
Project: NEOM green hydrogen facility Story: Middle East Hopes Hang on Hydrogen (page 26) Country: Saudi Arabia Sector: Energy Developer(s): NEOM Green Hydrogen Company (NEOM, ACWA Power, Air Products)
Project: Rathath Boulevard Story: Transforming Oman’s Cityscape (page 42) Country: Oman Sector: Infrastructure Developer(s): Dhofar governorate Project: Kennecott Copper Mine expansion Story: Digging Deeper with US Mining (page 72) Country: USA Sector: Mining (copper) Developer(s): Rio Tinto
Project: Jazan Integrated Gasification, Combined Cycle Power Plant Story: Middle East Hopes Hang on Hydrogen (page 26) Country: Saudi Arabia Sector: Power Developer(s): Saudi Aramco, ACWA Power, Air Products
Project: South Mountain polymetallic development Story: Digging Deeper with US Mining (page 72) Country: USA Sector: Mining (copper, zinc, silver, gold) Developer(s): Thunder Mountain Gold
Project: Masdar Wind Project Story: Middle East Hopes Hang on Hydrogen (page 26) Country: UAE Sector: Renewables Developer(s): Masdar
Project: Desalinated Water Supply for the Northern District (SADDN) Story: Desalination Drives Project Volumes (page 86) Country: Chile Sector: Desalination Developer(s): CODELCO
Project: Yanbu Wind Farm Story: Is Saudi Ready for Full-Scale Wind Projects? (page 32) Country: Saudi Arabia Sector: Renewables Developer(s): Saudi Power Procurement
Project: Bay du Nord, offshore Newfoundland Story: Canada Projects Head Upstream (page 89) Country: Canada Sector: Oil & Gas Developer(s): Equinor, bp
Project: Al-Ghat Wind Farm Story: Is Saudi Ready for Full-Scale Wind Projects? (page 32) Country: Saudi Arabia Sector: Renewables Developer(s): Saudi Power Procurement
Project: Meenakshi West Story: Firing Up Indian Coal Supply (page 92) Country: India Sector: Coal Developer(s): Hindalco Industries
Project: Waad Al Shamal Wind Farm Story: Is Saudi Ready for Full-Scale Wind Projects? (page 32) Country: Saudi Arabia Sector: Renewables Developer(s): Saudi Power Procurement
Credit: deugro
Project: Hatta Hydroelectric Power Plant Story: UAE Economy Ready for Lift-off (page 39) Country: UAE Sector: Power Developer(s): Dubai Electricity & Water Authority (DEWA) 98 Breakbulk Magazine
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stevedoring & warehousing rotterdam PROJECT CA RG O & HEAV Y LIF TS U P TO 1800 TONS OPTIM IZED TRU CK EX IT FOR W IN DM ILL BLAD ES & TOW ERS H EAVY LIFT STORAG E A REA SPECIA L YA CHT HAN DL ING SERVICES A SSISTIN G OF F SH ORE VESSELS ISPS CERTIFIED AEO-F CERTIFIED
shorecranes up to 208 tons