BREAKBULK &
INDUSTRIAL PROJECT CARGO
REASONS TO BE CHEERFUL Optimism for Energy Infrastructure Projects
INSIDE THIS ISSUE
Carriers Altered Finance Landscape Cryptocurrency Frontier Project Logistics Apprenticeships Reimagined
17-19 May 2022 Rotterdam, Netherlands
May-June 2022
BREAKBULK EUROPE ISSUE
Back Live and in Rotterdam!
DHL IP CEO Ryan Foley Profiled Wind Inflates Africa’s Sails PLUS: Breakbulk Europe Event Essentials
INSIDE THIS ISSUE
22
28
Cover Story
56
PHOTO CREDIT: DANNY CORNELISSEN, PORTPICTURES.NL
BREAKBULK EUROPE EVENT ESSENTIALS
Pages 47-54 Featuring: - Full exhibitor listings - Conference agenda - Rotterdam visitors guide 17-19 MAY 2022 | ROTTERDAM AHOY | NETHERLANDS
ROTTERDAM VISITORS GUIDE Everything you need to know to get the most out of your visit
WHAT’S INSIDE
44 PROFILE
Environmental Focus a Necessity, Not a Luxury
Musician-turned-port Director Oversees Breakbulk Development
ALTERED FINANCE LANDSCAPE
9
UPFRONT
Influencers: Future Fuels? One to One Breakbulk Digitalization Opportunities Fulfiling The Mission to Seafarers Zooming In on a Lifelong Passion Plus: By the Numbers, Viewpoint and Giving Back
28 BREAKBULK EUROPE
ROTTERDAMMERS RECOMMEND: What to see and do, where to eat and drink in their exceptional city
REGIONAL REVIEW
IT’S ALL ABOUT THE INNOVATION: Insider’s look at Rotterdam Makers District TRAVEL TIPS FOR OUT-OF-TOWNERS And much more...
22 COVER STORY
SPONSORED BY
A COLLABORATION BETWEEN
Cover photo: Storm Bego
Special Publication: Read Breakbulk Europe’s Rotterdam Visitor Guide
https://europe.breakbulk.com/page/ rotterdam-visitors-guide
4 BREAKBULK MAGAZINE www.breakbulk.com
REASONS TO BE CHEERFUL Europe’s Energy Infrastructure Projects Set Hopeful Outlook
SHOWCASING PROJECT CAPABILITIES
44 THOUGHT LEADER
CAPITALIZING ON TRADING BOOM
Regional Hubs Find Their Niche
56 TECHNOLOGY
CRYPTOCURRENCY FRONTIER Disruptive Technology Yet to Break Through
62 ENERGY UPDATE
WIND INFLATES AFRICA’S SAILS
38 PROFILE
But Logistics, Regulatory Hurdles Still to be Overcome
DHL IP’s Ryan Foley Explains Why the Two are Inextricably Intertwined
HONING THE CRAFT
PEOPLE AND PROJECTS
66 TRAINING
Project Logistics Apprenticeships Reimagined
MAY-JUNE 2022
INSIDE THIS ISSUE
73
78
84
92
72 THOUGHT LEADER
SUPPORTING FUTURE PROJECT PROFESSIONALS STEM Distinction Key to Undergraduate Success
73 THOUGHT LEADER
COMPETENCE AND CAPACITY GAPS
TAKING BACK CONTROL Heavy-Lift Specialists Laud Benefits of Synchronous Lifting
88 INLAND TRANSPORTATION
TAKING TO THE TRACKS Enhancing Eastern US Rail Freight Infrastructure
Time for Action on Logistics Labor Challenges
92 EMERGING MARKETS
74 CASE STUDY
Trillion-dollar Program Promises Project Lift
COMPLEXITY OF MODULAR MOVE
Pre-planning Keeps Design Costs in Check
78 CARGO LENS
CONFUSION ON COAL A Tale of Many Parts for Dirty Commodity
6 BREAKBULK MAGAZINE www.breakbulk.com
84 EQUIPMENT
COUNTING ON INDIA’S CORRIDORS
Also in this issue 08 EDITORIAL 95 BREAKBULKONE 98 BACK PAGE
MAY-JUNE 2022
WE KNOW WHAT WE'RE DOING Höegh Autoliners is a global leader in deep sea RoRo transportation services. To transport wider, longer and higher breakbulk and project cargo, we have developed specialised handling equipment to ensure your cargo's smooth and safe transportation. With over 90 years of experience from shipping, we can safely say that we know what we're doing, and we do it well.
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EDITORIAL
REMAINING RESILIENT Optimism is fleeting in business and in life; in recent years it seems to be an elusive, disapparating vapor. Just as the masks were coming off and businesses were gaining confidence that the pandemic was finally receding, Feb. 24 brought war to Ukraine, and the world was cast into another human crisis that shakes our very core. While our hearts and minds are torn by the threats against humanity, from pandemics and famine, to natural – and man-made – disasters such as war, politics and Gary Burrows financial crises, there’s the constant pull to take on the next day. In the worst of times, we are amazed at those that rise up and fight for something better. On top of individual struggles, the global public and private sectors must find their way forward to support the health and safety of billions. Businesses must provide for the health and safety of their employees and staff, assess the impacts and chart an altered course. This coincides with the shipping industry’s attempts to unsnarl continued supply chain congestion, historic inflation, making real sustainable energy plans with undeniable sourcing concerns. As this issue goes to press, Ukraine has faced two months of fighting for its homeland. The impact of this war on global breakbulk and project cargo markets is clear to see, as evidenced in this issue: • Energy security and prospects for Europe’s infrastructure (“Reason to Be Cheerful,” page 26). • How sanctions are affecting trade lanes – both sea (“Drewry Dampens MPV Outlook Amid Conflict,” page
8 BREAKBULK MAGAZINE www.breakbulk.com
95) and air (“People and Projects,” a profile with DHL Global Forwarding Industrial Projects CEO Ryan Foley, page 26). • The question of whether Russia is using cryptocurrency to evade sanctions (“Cryptocurrency Frontier,” page 42). • Impacts on global mining and sourcing (“Confusion on Coal,” page 64). • A Ukrainian native’s efforts to support her homeland’s people by using her logistics products to ensure relief efforts arrive (“One to One: Alex Sinyachova, Moeco,” page 14).
RESILIENT INDUSTRY
I’ve spent more than three decades in business journalism, focusing on shipping, supply chains and logistics, the first two-thirds focusing on the broader container industry and the most recent third focusing on the industrial supply chain, projects and breakbulk. At this time, I can only admire the resilience of those exemplary men and woman who have driven the industry, those who have moved on and those just entering this fascinating field. Beyond the engineering, handling and transport of ever-growing cargoes, the industry in the last decade continues to excel despite facing two recessions, two oil crises, a decade-long MPV drought, epic congestion, a pandemic and a challenging push towards sustainability. And now, that industry gets to meet face-to-face again, with the return of Breakbulk Europe, May 17-19, in its first in-person event in Europe after a two-year absence due to the pandemic. The world’s largest project and breakbulk gathering also will be in a new city, Rotterdam, and a new venue (Rotterdam Ahoy). A highlight of events and the participating exhibitors is available in Breakbulk Europe Event Essentials, pages 47-54. I look forward to seeing you there! Meanwhile, be well and stay safe.
EDITORIAL DIRECTOR Gary G. Burrows / +1 904 535 5460 gary.burrows@hyve.group NEWS EDITOR Carly Fields carly.fields@hyve.group SENIOR REPORTER Simon West simon.west@hyve.group DESIGNER Mark Clubb REPORTERS Felicity Landon Amy McLellan Lori Musser Malcolm Ramsay Thomas Timlen Liesl Venter BREAKBULK EDITORIAL ADVISORY BOARD John Amos, emeritus Amos Logistics
Dennis Devlin Maersk
Dharmendra Gangrade Larsen & Toubro Limited
Margaret Kidd
University of Houston
Anders Maul
Blue Water Shipping
Dennis Mottola, emeritus Global Logistics Consultant
Sarah Schlüter Hapag-Lloyd
Stephen “Spo” Spoljaric Bechtel Corp
Roger Strevens
Wallenius Wilhelmsen
Jake Swanson
DHL Industrial Projects
Ulrich Ulrichs
BBC Chartering
Johan-Paul Verschuure Rebel Group
Grant Wattman
Combi Lift Americas
PORTFOLIO DIRECTOR Nick Davison nick.davison@hyve.group MARKETING & MEDIA DIRECTOR Leslie Meredith leslie.meredith@hyve.group To advertise in Breakbulk Media products, visit: http://breakbulk.com/page/advertise SUBSCRIPTIONS To subscribe, go to http://breakbulk.com/page/ subscribe-breakbulk-magazine, or email: gary.burrows@hyve.group A publication of Hyve Group plc. The Studios, 2 Kingdom Street Paddington, London W2 6JG, UK
MARCH-APRIL 2022
UpFront The People and Businesses that Lead This Thriving Industry
WHAT’S INSIDE: Influencers: Future Fuels? One to One with Alexa Sinyachova, Moeco Breakbulk Digitalization Opportunities Fulfiling The Mission to Seafarers Zooming In on a Lifelong Passion Plus: By the Numbers, Viewpoint and Giving Back
UpFront
BY THE NUMBERS Multipurpose and Heavy-lift Fleet 11,000
78%
The Drewry Multipurpose Time Charter Index tracks one-year period charter rates across a basket of vessel types and sizes and forecasts the market movement over the coming month. The vessel types include breakbulk and project cargo ships.
Year-on-year rise in Drewry Multipurpose Time Charter Index as at March 2022
9,000
$20.88
The Toepfer Multipurpose Index $15.67 represents the monthly $14.08 average timecharter rate assessment $12.44 established by a panel of operators, owners $11.23 and brokers for a 6-12 month timecharter for a $10.29 12,500 tons deadweight MPP/HL ‘F Type’ vessel. $8.98 $17.40
$8.09 Jan 21
Feb 21
Mar 21
Apr 21
May 21
Jun 21
Jul 21
MPV Fleet Supply: Orderbook Schedule Orderbook schedule as at 1 March 2022 500
Multipurpose (no gear & geared) Project carrier & heavylift
‘000 dwt
400
MPV OB to fleet ratio (%) PC OB to fleet ratio (%)
300
Aug 21
Sep 21
Oct 21
Nov 21
3.0%
200
Dec 21
Jan 22
Feb 22
Mar 22
Apr 22
Global dry cargo and MPV demand expected to rise by 4% over 2022 but will slow over 2023 to growth of about 3%
2.5% 2.0% 1.5% 1.0%
100 0
$22.76
$18.97
7,000
5,000
$21.86 $22.74
0.5% 2022
2023
2024
7% 4%
2.5%
MPV market share rebounded strongly over 2021 with 7% growth, this is expected to slow over 2022 to nearer 4% and further in 2023 to nearer 2.5%
10 BREAKBULK MAGAZINE www.breakbulk.com
0
4%
3% Credit: Drewry webinar: Multipurpose and Heavy Lift Shipping Market Outlook – April 2022, with Susan Oatway, senior analyst, multipurpose and breakbulk shipping; and Martin Dixon, director, head of research products at Drewry. Drewry also publishes a quarterly review of the multipurpose and heavy-lift shipping market. The first-quarter edition of Multipurpose Shipping Annual Review and Forecast 2022/23, is available at www.drewry.co.uk.
MAY-JUNE 2022
INFLUENCERS We ask two prominent industry figures to give their viewpoints on a particular topic. In this issue we ask:
“What do you think will be the industry’s primary future fuel choice by 2030?” Roger Strevens,
Leif Arne Strømmen,
Vice President, Global Sustainability, Wallenius Wilhelmsen
Partner, Peak Group AS CEO, K2 Project Forwarding AS
If ever there was a question with more than one answer, this is it. What’s viable as a “primary future fuel” will vary for different parts of the industry. Also, the word “choice” is important; the desirable and the possible aren’t necessarily the same. Nevertheless, in the attempt to provide one answer, consider that the world fleet numbers roughly 50,000 vessels with a net addition of about 2,000 per year. That suggests the majority of the vessels in 2030 will comprise of those already in operation today. The question then becomes, what future fuel would today’s vessels choose to use? Assuming a “future fuel” is one with a smaller lifecycle greenhouse gas, or GHG, footprint than existing fuels, a zero-retrofit “drop-in” fuel would be the first choice. In practice that would mean liquid biofuels, e-fuels and blends thereof. More exotic options, like ammonia or methanol, generally won’t be viable due to engine, fuel tank and delivery system compatibility constraints. Whether the industry gets its first choice will depend heavily on how regulatory, cost and availability factors develop. Although the contours of the 2030 regulatory landscape are unclear, one general outcome to expect is that they will effectively increase the cost competitiveness of low-carbon fuels relative to the conventional alternatives. Availability is likely to be a key issue because, in addition to shipping’s large appetite, many other industry segments will be chasing the same fuels. Perhaps then the more pressing question is what industry will be the primary choice of these future fuels?
I do not believe there will be one primary fuel by 2030 as there is no “Holy Grail” currently available. The road towards zero-emission shipping will entail the use of various types of fuel matching different vessel types, routes, trade and cargo. In the short run biofuel might play a temporary role, but there are simply not enough volumes and cost is too high for it to become a major player in the long run. Hydrogen might be a good fit for typical ferries or supply vessels (PSVs) sailing back and forth to the same locations with available bunkering facilities at the port enabling frequent bunkering, and the same will also be the case for pure battery driven ships, already in operation in Norway and several other countries. For both shortsea and deepsea breakbulk vessels there are major challenges with hydrogen due to the need for extensive storage space taking valuable cargo space, as well the security aspect. Hybrid propulsion enabling the use of both ammonia and methanol combined with marine gasoil (MGO) and very low sulfur fuel oil (VLSFO) will probably be the preferred solution by 2030, lowering the risk of availability and price of fuel, giving the necessary flexibility to both shipowners, cargo owners and investors/banks. Massive investments are needed into renewable energy and carbon storage to enable production of sufficient volumes of green/blue ammonia and hydrogen, thus future fuel will be more expensive than today. This will give strong incentives to develop other sources of energy and propulsion systems including nuclear propulsion and the capture/storage of carbon emissions onboard vessels using MGO and VLSFO.
VIEWPOINT Follow Breakbulk Events Media on LinkedIn to participate in our surveys. This issue’s question: Electrofuels
8%
What will be the industry’s primary future fuel choice by 2030? Biofuels
24%
LNG
33%
Hydrogen/Ammonia
35%
From 51 Respondents
www.breakbulk.com
BREAKBULK MAGAZINE 11
UpFront
FRAME THE FUTURE Breakbulk Digitalization Opportunities Upside of Slow Take-off
By Arto Viitanen The pace of digitalization in breakbulk shipping has been relatively slow compared with many other parts of global supply chains. Considering the complexity of it all – such as inventory, supply chain management, complex shipping contracts, ports, stowage planning, and so on – it’s perfectly understandable that it has been slow. This slowness can, however, also open up opportunities: There’s no legacy and no single vendor lock-ins, making it possible to approach the future of digitalization in breakbulk shipping without too many path dependencies. On a high level, cargo owners fall into two categories: ones with their own fleet and ones depending on contract of affreightments (COA) or spot contracts for their maritime logistics. Arto Viitanen Regardless of the type of setup, the Seaber main digitalization problems in bulk and breakbulk remain similar. The problems are naturally intensified the more organizational boundaries you need to cross, but there are three points of discontinuity where they really manifest.
Seaber’s platform helps with breakbulk cargo planning. CREDIT: SEABER
The first already appears in the cargo owner’s internal logistics planning processes: How to get the transportation needs pulled out from an ERP system, parceled and allocated onto COA contracts or passed onto the chartering desk and then finally communicated to the shipowner or operator. Some, albeit rare, cargo owners have built internal tools, but the vast majority of industrial charterers seem to rely on multiple spreadsheets and email routines. 12 BREAKBULK MAGAZINE www.breakbulk.com
The second is between the emails arriving in the shipowners’ inbox and their transformation into voyages in the vessel management system. A couple of steps are essential for efficiency but lack proper planning, analyzing and communication tools. This refers to the scheduling dilemma and the selection of market cargo. The scheduling dilemma is about how to efficiently plan your fixed and COA cargoes onto your fleet. It’s incredibly hard to estimate the total cost and durations of a fleet schedule for a week. Making several versions of it and looking a few weeks ahead is a pipedream. Closely related to schedule planning, there is the question of how to identify the most profitable market cargoes that are optimal for your entire fleet’s efficiency. Simply looking for a profitable cargo for an open position might be suboptimal for the entire fleet’s time charter equivalent. With the current set of tools, there’s no way to truly discover, iterate and compare different schedule alternatives. The third discontinuity is upstream. How to deal with estimated time of arrival (ETA) updates and the vessel nomination process. There are many gates and gatekeepers for ETAs, and each one hinders the flow of this information, which is extremely valuable in terms of efficiency. The way this currently works falls short in a couple of respects. First of all, this is a one-way street where you can go back but you need to drive around half the city. For example, once the parcel size has been decided, and that spreadsheet has been sent and data forwarded a couple of times – it’s high friction to change it. Oftentimes you just wouldn’t do it, even if it opened up a saving opportunity. Secondly, there are many gates the data needs to pass through and almost all of them have a template where data loss and delay can occur. If the gate is manual, the data loss is significant. We are undoubtedly entering a world where these problems need to be solved. Fortunately, we now have the skills and the will to do so. Arto Viitanen is vice president of product at Seaber, www. seaber.io. He has a background in industrial management and specializes in software product design and management. Seaber will be exhibiting at Breakbulk Europe in Rotterdam May 17-19. Find them at stand number 2A01. MAY-JUNE 2022
62 000 DWT State of the art MPP carrier
UpFront
ONE TO ONE Alexa Sinyachova, Moeco
Ukrainian Entrepreneur Applies Logistics Products to Relief Efforts Alexa Sinyachova, co-founder and CEO of Moeco and 12-year industry veteran, has developed a unique IoT-based tracking solution that provides end-to-end visibility into supply chains. Now the Ukrainian native is applying her logistics expertise to relief efforts for her homeland. Sinyachova will be the keynote speaker at the Women in Breakbulk: Breakbulk Edition, sponsored by GEODIS, to be held May 18 during Breakbulk Europe, May 17-19 at the Rotterdam Ahoy. Below are excerpts from a recent Q&A with Sinyachova. They have been edited for space and clarity. Q: How are you accomplishing deliveries of relief supplies to Ukraine? What sorts of shipments have been delivered and how has Moeco assisted? From the first days of the war, Moeco founder Mit Gorilovsky and I did everything to help Ukraine and our fellow citizens. Coordinating directly with Ukraine’s Ministry of Health and Ministry of Defense, we have organized the purchase and logistics of medical supplies and body armor, helping to ensure they reach the areas where they are needed most. So far we have shipped almost US$2.5 million worth of supplies, helped by private fundraising initiatives. The aid goes to the state institutions of Ukraine, and is then distributed among residents.
helped us to place them – it requires special skills to attach. All that needs to be done is stick a 16-millimeter sticker on the parcel, scan the QR code and enter the destination. We had no doubts about their reliability because we have tested them many times and they justified themselves in commercial logistics. The trackers work with support for 4G / 5G, are protected according to the IP54 standard, and each battery lasts up to three months. We could make the battery bigger, but even in critical conditions, we must not forget the environment. Our sustainability trackers contain less than 2 grams of lithium and can be disposed of with plastic waste. In addition, they are one-sided and do not require reverse logistics, which is more relevant than ever in the current conditions. This eliminates additional costs and reduces CO2 emissions. After that, we tracked each package in real time on our dashboards. We knew where they were, whether the temperature and humidity conditions were violated – this is especially important for medicines – whether the parcels got in, or whether they were opened due to the light sensor. At the same time, all five sensors fit in a small tracker, 10 by 10 centimeters. We set up notifications about deviations from the indicators in advance. If something happened to one of the parcels, the platform would send a notification by email or SMS. In addition, in the Moeco CRM platform, we set geopoints at different stages of delivery. So we were able to track the progress of the delivery every minute, and receive automatic notifications about the passage through the next checkpoint.
“So far we have shipped almost US$2.5 million worth of supplies ... The aid goes to the state institutions of Ukraine, and is then distributed among the residents.”
But we had to make sure that the parcels, collected by the efforts of hundreds of caring people, arrived safely and at the right address. And this is where the Moeco system really performed well. Modern logistics is based on the fact that the status of the package is updated manually by people at intermediate points. Shipment arrives at the warehouse and the specialist checks its safety and the fact of arrival. This system fails even in civilian life: parcels are detected late, goods deteriorate due to inadequate transportation conditions. We couldn’t let that happen, so we provided Moeco Global Tags for free to track every single package. Volunteers 14 BREAKBULK MAGAZINE www.breakbulk.com
Q: You and your staff are also working on fundraising, can you tell us more? I’m from the Ukrainian city of Odesa and I’m based in Berlin. To expand our fundraising efforts, Moeco has teamed up with www.kindrace.com. This is a charity initiative by my friend Tetiana Grynova, a Ukrainian philanthropist and marathon runner. Based in Berlin, Tetiana runs a half-marathon in the city MAY-JUNE 2022
center every day to raise funds and has pledged to do so each day until the war ends. The funds will go to purchasing and supplying these essential items for Ukraine. I would also like to thank the guys from our team for their help. Vlad Bakaliar, Ilia Astafev, Tetiana Grynova, Mit Gorilovskiy, and Ekaterina Lebedeva! Q: Is your family safely out of Ukraine. How complicated was that? Have your Ukrainian staff also been successfully evacuated?
Tetiana Grynova runs a halfmarathon in Berlin every day to raise funds and has pledged to do so each day until the war ends.
We evacuated our part of the team from Ukraine during the first two weeks of the war. To be honest, I’m horrified by what’s happening. I arrived in my wartorn home country a few days after the invasion of Russian troops. I took my mother to Berlin. I still have friends in Odesa – they defend their homeland as part of the territorial defense forces and the Armed Forces of Ukraine. I couldn’t get my grandmother out of there – she’s too old to leave Ukraine. My uncle could not leave, he is sick with epilepsy and needs regular medical care. I am very afraid that there will be interruptions in the medicines he needs. For more about Moeco and its products see: https://breakbulk.com/Articles/ moeco-develops-5g-based-cargotracker.
CREDIT: MOECO
Representatives of the National Congress of Ukrainians in Moldova are assisting in determining where the aid should be directed. CREDIT: MOECO
The Moeco Act Tracker, measuring just 10cm by 10cm, uses microscopic “smart dust” sensors and 4G and 5G cellular networks to provide realtime access to location, temperature, humidity, light, and shock data. CREDIT: MOECO
Among the participants in the humanitarian aid program are charitable organizations and government bodies, united under a #strongertogether hashtag. CREDIT: MOECO
www.breakbulk.com
BREAKBULK MAGAZINE 15
UpFront
GIVING BACK Fulfilling The Mission to Seafarers Breakbulk Europe to Host Pledge Drive During Event
Breakbulk Europe has chosen The Mission to Seafarers as its charity partner and will have a pledge campaign for the organization during the event May 17-19 at the Rotterdam Ahoy. Breakbulk spoke with Johnny Dowling, senior fundraising manager, about the Mission’s objectives. Q: Please describe your organization to readers. The Mission to Seafarers is a charity with operations in more than 200 ports across 50 countries worldwide. Our ship visitors in each of our locations offer all kinds of help and support to merchant seafarers, men and women, who have one of the world’s most dangerous occupations. In light of the pandemic, pressures on the global economy and the war in the Ukraine, there has been a significant increase in mental health issues and practical needs for seafarers, and our trained chaplains provide the essential care and support they need. Q: What services do you provide? In addition to ship visits, transport runs, practical care and emotional and spiritual support given by our chaplains, we also provide training through our WeCare program, which has recently been shortlisted for the SAFETY4SEA’s Award. This exciting new initiative consists of two courses on financial wellbeing and social wellbeing, delivered across workshops, seminars and e-learning, which give support to seafarers and their families during challenging times, helping them learn short-term and long-term coping strategies to maintain wellbeing. The Mission’s chaplains offer support to seafarers. CREDIT: MISSION TO SEAFARERS
that they do in treacherous conditions far away from friends, family and loved ones. To help, we offer ongoing support with their day-to-day needs, and our chaplains provide practical gifts such as toiletries, care packages, woolly hats, magazines and books and free SIM cards to help them connect with family and friends and help with emergencies. We also offer support through our family support network and our SeaCare program, which is a confidential service to help with seafarers’ mental health and wellbeing and offers help to solve family problems, health concerns and financial issues. Q: How in turn does The Mission to Seafarers benefit the industry? Our mission is to care for the shipping industry’s most important asset, its people. Seafarers of all ranks, nationalities and beliefs risk their lives every day to aid our global economy, and we hope that our service, support and practical help will help meet their many needs. Our top priority is that seafarers and their families feel 100 percent safe in our care, and that they are confident that our highly skilled port teams bring the help they need. Q: Are you seeing any impacts on seafarers due to the war in Ukraine? We share the horror and sadness of so many as we witness events in Ukraine. Our focus is on the many Ukrainian and Russian crews that we encounter in ports all over the world. Our chaplains are all trained in Critical Incident Stress Counseling and crisis intervention, so they have been able to support and comfort those in need. We are also providing free communication to Ukrainian seafarers so they can keep up to date with news and keep in touch with family and loved ones. We have also provided a trauma leaflet in English, Russian and Ukrainian for seafarers and their families. Q: What are your greatest needs?
Our WeCare workshops have so far reached more than 6,000 seafarers and their families, and we now have an ambitious target to reach more than 100,000 in 2022 by partnering and growing awareness of the tools available to the industry to protect and support seafarers. Our plans include expanding the program with new resources in digital and print and in various languages including English, Tagalog, Ukrainian and Russian. Q: How is The Mission to Seafarers able to help seafarers? We are working with countless seafarers who are suffering from mental and physical problems on account of the work 16 BREAKBULK MAGAZINE www.breakbulk.com
Well, we would of course always welcome those who can volunteer, fundraise, donate or partner with us. But if the industry could put forward ideas and creative solutions to ending the ban on shore leave, we know we would see a significant boost and improvement in mental health among seafarers. Shore leave is a key requirement for a key workforce, but the majority of seafarers are not getting the time away from their vessel that they need. We had a crew recently turn up to our Mombasa center who had not had shore leave in two years. Almost all of them burst into tears when they got into the minibus. For more information on The Mission to Seafarers and to find out how to volunteer, donate or partner visit www. missiontoseafarers.org. MAY-JUNE 2022
100 engineers, 30 heavy lift vessels
ONE TEAM
Reliability, trust, innovation and partnerships with customers; that is what Jumbo-SAL-Alliance stands for. Whether you are looking for heavy lift or breakbulk transport, global transport logistics or complete project management, we are here to engineer your solution. Want to get to know us? Visit Jumbo-SAL-Alliance.com
Stronger, together.
UpFront
THROUGH THE LENS Zooming in on a Lifelong Passion
Marko Stampehl Offers Top Tips for Snapping Vessels By Simon West Marko Stampehl’s passion for taking photographs of ferries, cruise ships and roll-on, roll-off vessels stretches back more than three decades. The global head of marketing and public relations at multipurpose carrier BBC Chartering told Breakbulk his lifelong pursuit was shaped by childhood holidays to Finland and ferry trips across the Black Sea.
outclassing many compact cameras. But if you want to get serious about your photography, then consider a DSLR. “When you compare pixels and technical details, and put the photo of an object or ship side by side, you will soon detect the difference in quality,” Stampehl said.
“I had a small compact camera, still with a film – I began to take photos with that. I soon found out that I needed to develop and get further with the technology,” the executive said. Since then, Stampehl has journeyed to dozens of ports, waterways and coastlines all over northern Europe, and as far north as the Arctic Circle, where often biting conditions have failed to dampen his enthusiasm. His favorite destinations for snapping vessels are the Suomenlinna sea fortress off the coast of Helsinki, the narrow strait of Oxdjupet in the Stockholm archipelago, and Bubendey-Ufer on the southern banks of the Elbe River at Hamburg. “All three places are where ships pass by fairly closely. And they are easily accessible – you do not need any permission to go there and take photos, it is a place for everyone,” he said.
Maritime Photography Tips Stampehl provided some top tips for maritime photography: 1. Perspective. Think about how you arrange the visual elements in your photos. What is it exactly that you want to show? You may decide to include some background or a seascape that gives depth and perspective to a picture. Be creative!
These days, Stampehl shoots in RAW mode with a Canon full-frame DSLR camera and 24-105 mm f/4 and 100-400 mm f/4.5-5.6 zoom lenses, and edits using Photoshop and Lightroom. Using your smartphone to take maritime pictures can work, the executive said, with more expensive models often
2. Details. Focus on details to make your photos more engaging. You might decide to take a picture of an entire ship, but that same vessel may also possess a unique or unusual characteristic that captures the viewer’s attention. 3. Sun/Light. Be aware of the position of the sun – photos of vessels will be very different under varied lighting conditions. When the sun is on your back, you usually have a perfectly lit object, and that applies to vessels as well. Backlight can also create a nice atmosphere. 18 BREAKBULK MAGAZINE www.breakbulk.com
MAY-JUNE 2022
4. Variety. Take a variety of shots of the same object or situation. Press the shutter release more often so auto-focus can adjust. Zoom in, zoom out, move around a bit to find different angles, or several variations of the same situation. You can choose the best images when you edit.
5. Consent. Get consent if you intend to publish photos of people. But you can also get creative. Include in your shot the back of a crew member’s jacket with the logo of their company. If you want to include people, then stick to photos of large vessels, such as cruise ships. 6. Organization. Be organized and structured with your photos. Make notes – when and where you took photographs, and of what. Do not keep your photos on the
memory card for too long. Download them to your computer, make backups in the cloud and organize your images. 7. Start Small. Invest sensibly when starting out. Find yourself an easy-to-use camera to generate good results. Then, when you find out what you are really interested in, you can pay more attention to lenses, camera body and other equipment. Remember: the camera does not make the photos – it is the person behind it! Colombia-based Simon West is senior reporter for Breakbulk. www.breakbulk.com
BREAKBULK MAGAZINE 19
THE GREAT LAKES ST. LAWRENCE SEAWAY SYSTEM
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ALTERED FINANCE LANDSCAPE Environmental Focus a Necessity, Not a Luxury
F
or all the talk and concerns around “greenwashing” – deliberately misleading or embellishing environmental credentials – there really are few places left to hide if you are not well on the road to greening your multipurpose ship operations. Financiers were the first to demand environmental credentials through the Poseidon Principles, kickstarted by Citi, Societe Generale and DNB in 2017, developed by the Global Maritime Forum and now an established, International Maritime Organization-aligned framework for assessing and disclosing the climate alignment of ship finance portfolios. The Sea Cargo Charter followed in October 2020, providing an international framework for aligning chartering activities with responsible environmental behavior to promote international shipping’s decarbon22 BREAKBULK MAGAZINE www.breakbulk.com
BY CARLY FIELDS
ization – the industry has an eye to June 2022 when the first climatealignment scores for this initiative will be published. Now the industry is moving towards the Poseidon Principles for Marine Insurance, launched in December 2021 and bringing the same environmental focus to the marine insurance sector. Weaving between all these industry-led initiatives are the green goals published by the IMO, Europe’s Fit for 55 plan for a green transition, the UK and U.S. strategies to achieve net zero by 2050, and China’s pledge to reach peak emissions before 2030 and carbon neutrality by 2060. Last year, COP26 then saw the launch of the Clydebank Declaration, supporting the creation of green shipping corridors, the Getting to Zero Coalition’s Call to Action and the Declaration on Zero Emission Shipping.
Any shipowner looking to avoid green operations and zero carbon sooner rather than later is fast finding limited room to maneuver.
MONEY TROUBLES
While in the multipurpose vessel sector’s fallow years, sourcing finance to support newbuild programs was problematic, to say the least, the same cannot be said of today. But the comparative abundance of finance available today for MPVs comes with distinct green strings in support of the Halvor Steen global environmental agenda. Maritime & Merchant Halvor Sveen, Bank ASA MAY-JUNE 2022
PHOTO CREDIT: DANNY CORNELISSEN, PORTPICTURES.NL
SHIPPING TRENDS
SHIPPING TRENDS
That said, the finance landscape has changed massively for MPV operators over the past few years. “Five years ago, the income side was very bad; 2017 was the low point,” Hollaender said.
Since then, MPV indexes have been climbing to the point today where rates are something to celebrate, not drown sorrows in. “What has happened now has not been seen before. The indexes
FINANCE FRAGILITIES WITHOUT PRECEDENT
Investors in shipping today face risks and fragilities without precedent in the last 75 years, according to Tharman Shanmugaratnam, senior minister and chairman of the Monetary Authority of Singapore. Speaking at the IMASBloomberg Investment Conference, Shanmugaratnam described the current market as a “perfect long storm,” shaped by the confluence of several forces. Tharman Shanmugaratnam He noted five fragilities curMonetary Authority of rently shaping Singapore investment: • The war in Ukraine. • The real risk of stagflation in many parts of the advanced and developing world. • The increasingly urgent climate crisis. • Pandemic insecurity. • Enhanced fragility coming out of divergences in growth and wellbeing, both within societies and across the world. “These are each major risks and sources of fragility. Together they define a perfect long storm. I say long storm, because this is not just a perfect storm in the traditional sense where you have a confluence of oneoff, conjunctural factors. These are structural shifts. They’re not cyclical or random shocks. They’re structural shifts, interacting with each other, that are going to be with us for some time. “ The war in Ukraine will, he said, not leave any major country better
off than before. “It is only a question of how bad the outcomes will be,” he said. “The situation will likely get worse before it can get better, but none of the trajectories is going to lead the world to a better place.” Macroeconomic risk, meanwhile, takes the shape of higher-for-longer inflation which is now a “near certainty.” The third fragility of the climate crisis means that it is no longer possible to make the adjustments needed to tackle the climate crisis without ensuring energy security. Shanmugaratnam said that we “can’t be purist about this, because if sharply higher energy prices or disruptions threaten social and political stability, the world is not going to be able to address its longer-term challenge, which is our foremost challenge, of tackling climate change.” Global health security, the fourth challenge, is a live issue, despite the “Covid-fatigue” sweeping the globe. “It’s already baked into the system – in fact, the risks have been accentuated by global warming, the loss of biodiversity, deforestation, and increased human incursions into the natural world. The rate of zoonotic spillovers, spillovers of pathogens from the animal world into human life, has increased and they are out there. No one knows exactly when the pandemics will come, but they will come. They are happening more frequently and can be as severe or more severe than Covid-19.” Lastly, Shanmugaratnam warned of less inclusive growth, both within and across nations, that could lead to a reversal of gains made in the developing and emerging world over the past 20-30 years – and will call for sweeping investment shifts, changing finance priorities and a new era of collaboration.
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PORTRAIT CREDIT: ROBIN, WIKIMEDIA, CC BY 2.0
CEO of Oslo, Norway-based Maritime & Merchant Bank ASA, a niche private bank offering first-priority mortgages to the shipping and offshore services industry exclusively, said that environmental, social, governance, or ESG, is on everyone’s agenda. While it hasn’t drastically influenced the bank’s terms yet, over a period of time “it definitely will.” That applies to everyone, he added. “My recommendation is for operators to stick to the green stuff and ESG. A commitment to environmentally friendly solutions will open finance options.” Some banks already include a premium and more attractive financing terms if you are pioneering environmentally friendly solutions. “We have not done this yet, but we will look at it and there is definitely a clear focus on this moving forwards in Norway.” Hannes Hollaender, managing director at Hamburg-based ship broker Toepfer Transport, agreed that ESG is a “big topic” when it comes to financing terms. “For the majority of projects, Hannes you cannot Hollaender secure finance for a newbuildToepfer Transport ing which is not environmentally friendly, which is not optimized, which has no new angle on the propulsion side and so on.” However, he said it is not difficult to comply with these requests: “The technical part is a given on ESG as everybody is working on this path. Ships are not like they were 15 years ago.” The difficulty comes with the specificity of the MPV sector, compared with other shipping sectors vying for the same pot of cash. “You have various investors out there, especially funds, and MPVs are a little bit different to other shipping businesses. The sector is very diversified with many small players and is very fragmented,” Hollaender said.
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SHIPPING TRENDS
are going sharply up, and this is phenomenal. Five years ago, it was very difficult to attract finance interest and to qualify for finance. Whereas today, the finance – whether that’s funds, private equity, private placement or owner’s own money – is all of a sudden there.”
HAUNTING PAST PERFORMANCE
But financiers have history to overcome when it comes to funding MPVs. “We used to call multipurpose ships ‘multiuseless’ ships – they crushed a number of shipping banks and funding them was a complete disaster,” Sveen said. “The MPV market was totally overtonnaged and rates were dreadful. As soon as there was an upturn, laid-up tonnage was made available and ghost tonnage controlled by the banks just appeared.” It took generations to get “a fine time” in this market, he added. MPV operators have undertaken some good initiatives to consolidate, clean-up and make the sector tidier – in time for the market surge. This turnaround has prompted Maritime & Merchant Bank ASA to “look seriously” at the sector, engaging with the connections the Bank has in the German sector. But the bank will not consider speculative finance, only
A commitment to environmentally friendly solutions will open finance options for MPVs. CREDIT: DANNY CORNELISSEN, PORTPICTURES.NL
finance attached to contracts, making it difficult for tramping services to tie down funds. However, there are traditional banks out there, especially in Germany, that are committed to the industry, Hollaender said. “They are financing their clients without long-term charters and they are financing clients without large balance sheets – that is happening again. They are committed and they
understand the philosophy and how the business works.” KGs – the German Kommanditgesellschaftthus scheme that gives tax breaks to individuals investing in ships – are back. And with the MPV market on a roll, more are expected. “Shipping is always needed – in crisis, in peace or war,” Hollaender said. There is room for everyone offering finance and a lender for everyone,
Comparison of Seaborne Trade and CO2 Emissions Since 2009, growth in CO2 emissions from maritime transport has been decoupled from the continuous increase in seaborne trade volume.
Seaborne trade
CO2 emissions
1135Mt
709Mt 562Mt
4008Mt
1990
1056Mt
957Mt
849Mt
5064Mt
6480Mt
8231Mt
9513Mt
2000
2005
2010
2015
11019Mt 2020
Source: Fourth IMO GHG Study 2020
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MAY-JUNE 2022
SHIPPING TRENDS
It took generations to bring the MPV sector back to an even keel. CREDIT: DANNY CORNELISSEN, PORTPICTURES.NL
Sveen said, pointing to the continuous increase in the variety of lenders open to shipping finance. Hollaender agreed that it is becoming easier for MPV operators to secure finance today, in contrast with previous years. And the
more money comes in, the easier it is to achieve that all-important ESG compliance. Hollaender goes a step further to observe that today there are not enough ship financing projects out
A EYE TO SUSTAINABLE BIOFUELS In the short-term, liquefied natural gas and biofuels are expected to become the most popular alternatives to conventional marine fuel and gasoil. Both are relatively available in the larger bunkering hubs, the technologies are well-proven for marine applications, and will make users compliant with the International Maritime Organization’s 2030 emission targets. For the breakbulk segment in particular, sustainable biofuels could be a good choice to initiate emission reductions, due to its drop-in capabilities. In Bunker Holding, we have conducted trials on our own operations and with customers, and we believe that biofuel offers great opportunities for immediate and flexible emission reductions. Looking ahead, there seems to be a consensus that green methanol and green ammonia will play a significant role in the future fuel mix. But as these fuels require a complete transition of the existing bunkering infrastructure, on top of massive upstream investments in production, it is only expected to become available in the larger bunkering hubs in the late 2020s. In Bunker Holding, we are preparing for are multifuel future and we recognize the need for partnerships and close collaboration with both producers and customers to reach the current targets of emission reductions. Therefore, we are actively involved in projects, trials and partnerships related to all of the fuels mentioned above, and we are actively onboarding additional technical experts to guide our customers on decarbonization pathways.
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there for the demand from interested investors. The bottlenecks to increasing the number of MPV projects are market complexity, ship complexity and the difficulty in undertaking due diligence. Also, while significantly better than just a few years back, MPV returns still can’t compete with those for the container ship sector, he said. But this may be the MPV sector’s saving grace. This, as Hollaender noted, will “put a nice lid on it,” and avoid a rapid return to ship oversupply – sidestepping the cyclical pattern of previous upturns. In the past, overordering and a lack of discipline “destroyed confidence” in financing for MPVs, Sveen noted. But today the sector is looking more attractive, and funding is now there for the taking – just so long as the green doesn’t wash off. Carly Fields has reported on the shipping industry for the past 22 years, covering bunkers and broking and much in between.
BY MIKKEL HOLT LENSKJOLD
The green transition is extremely complex and driven by a large variety of different dynamics. Interestingly, it seems that the “pull-effect” from the market is slowly becoming stronger than the “push-effect” from regulators. This pulleffect mainly derives from an increasing demand for green transport from the end-users, as well as financers beginning to require emission-reducing initiatives from debtors. In addition, ESG has been put on the agenda in many large corporations recently, which also forces companies to start questioning how to reduce emissions in their own value chain.
INCENTIVES NEEDED
However, the shipping industry needs stronger incentives to justify and finance significant investments in decarbonization. One such mechanism could be a carbon tax, or some form of market-based measure to minimize the price premium between sustainable fuels and fossil alternatives and to stimulate the green transition. The ideal level of a potential carbon taxation is still up for discussion, but fundamentally, sustainable marine fuels need “artificial support” from a carbon tax on fossil fuels or some kind of marked-based measure, to make a viable business case for investing in sustainable marine fuels. BB
Mikkel Holt Lenskjold is head of corporate development at the Group Strategy Office for Bunker Holding.
MAY-JUNE 2022
BREAKBULK EUROPE REGIONAL REVIEW
REASONS TO BE CHEERFUL
CREDIT: BBC CHARTERING
BY FELICITY LANDON
Europe’s Energy Infrastructure Projects Set Hopeful Outlook
E
arlier this year, the European Union signed off a European Commission proposal to invest €1.04 billion in five cross-border infrastructure projects under the Connecting Europe Facility, or CEF, for trans-European energy networks. The proposals are in support of Europe’s Green Deal and the largest amount of funding, €657 million, is earmarked for the EuroAsia interconnector project to support the first electricity interconnection between Cyprus and the European grid. 28 BREAKBULK MAGAZINE www.breakbulk.com
The other projects are the Baltic Synchronisation Project Phase II, for grid reinforcement in Poland and transmission infrastructure upgrades in the three Baltic States: • The Aurora Line, involving development of a third transmission line between Sweden and Finland, to support the integration of onshore and offshore renewable electricity. • The Chiren expansion to increase gas storage facilities in Bulgaria. • The Northern Lights Phase II, where a study will consider the expansion of CO2 transport and temporary storage capacity in Norway.
Well integrated energy infrastructure networks are necessary for the energy transition, as they facilitate the integration of renewable energy, enhance security of supply and help keep energy prices in check, said Energy Commissioner Kadri Simson. “The allocation of CEF funds therefore supports the implementation of the European Green Deal.” Notably, Simson’s comments were made before the Russian invasion of Ukraine, which has placed far greater pressure on Europe in terms of the need for energy security. MAY-JUNE 2022
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The story is not only around these specific projects. Assuming they move ahead, there will inevitably be a knock-on effect in terms of green energy investments. And across Europe, countries are investing heavily not only in energy but also in transport infrastructure. “Looking at the details of the European energy deal, the program will provide much-needed aid in developing a well-integrated energy infrastructure network necessary for some of the region’s green energy transition,” said Eike Muentz, AAL Shipping’s general manager Europe. Depending on the engineering, procurement and construction companies involved in the targeted project areas and the decisions they make as to where geographically their components and materials might be sourced from, this could provide solid cargo opportunities for the long-haul MPV sector, he said. “A final, formal decision by the Commission on the CEF grants is expected in the coming weeks.”
RENEWABLES COMMITMENT
Energy-related investment will play a major role during the next few years, particularly when related to green technologies, said Franco Ravazzolo, head of project logistics & breakbulk at Gebrüder Weiss in Austria. “The present situation is pushing this development even more.” However, he said, the recent announcements are not about to deliver instant business for project logistics. “We often attend our clients from the very early planning stage until the realization of the projects – a timeframe that can encompass several years.” There is a lot Franco of talk of investRavazzolo ment in Europe, Gebrüder Weiss Ravazzolo said.
In Austria, for example, the government has set targets for a huge increase in solar and wind power by 2030. “They are talking about increasing total output from 8 terawatt, or TW, to about 28-30 TW. That sounds great, but the Austrian market right now consumes about 90 TW per year, so it’s 10 percent at best.” The target is aiming for 30 percent based on today’s consumption, he added – and energy consumption is growing, so the percentage will lessen. Plans include hundreds of new wind turbines mostly in the western part of Austria, together with an investment in solar panels, including on the roofs of private homes and official buildings. “There is a lot of investment discussion, but these projects will take a lot of time to be realized,” he said. “Politicians can announce things now, but it can take up to a decade to be transformed into reality.” Among recent jobs, Gebrüder Weiss has moved project cargo for the Voith Vorotan water power project in Armenia, the Palmavossen water power project in Norway and the Energie Ausserschyz biomass power plant in Switzerland. “Depending on the routes, we combined road/river ship/sea transport – cargoes were as long as 36 meters and as heavy as 150 tonnes.” Ton Klijn, director of ESTA, the European association for the abnormal road transport and mobile crane rental sectors, agreed that moves will take some time to ramp up: “I think you would have to wait until at least 2023 or 2024 before you see the first things moving [relating to the EU plans].” A priority should be dramatically increased road infrastructure investment, he said, as underlined by recent accidents. “We have seen a few Ton Klijn major accidents in Italy, for ESTA
example; related to, on the one hand, deteriorating infrastructure – bridges, crossovers, culverts, etc., – and on the other hand people not abiding by normal permitting rules and just driving without a permit. One ran over a bridge and the bridge collapsed.” There was a similar case in Germany: “Someone without a permit used a flyover over a valley. The load was far too heavy. But also, a lot of infrastructure in Germany has been downgraded. Typically, a permit for transport that is a bit heavy can involve huge detours – perhaps doubling the distance of the original route.” The issues are not only whether your infrastructure is better or worse, but also how many people want to make use of it, Klijn said. “For example, it is Germany where the problems are biggest; it is Eastern Europe, including Slovenia and Romania, where the infrastructure is worst, but there is not so much traffic.” Some countries are responding to the deterioration of road infrastructure and high maintenance costs by avoiding the issue and slapping bans on heavy transport. “France already has regions that don’t allow transport if it is only transiting,” he said. “If the end destination is not that region, they won’t let the load in. But if they all do that, no one can go anywhere.”
WAITING GAME
Wallenius Wilhelmsen is keeping a particularly close eye on – and expects development – in infrastructure construction. “While the NextGenerationEU plan is less targeted in terms of sectors, there are clear references to transport infrastructure there as well,” said Robert Berg, WW market intelligence and finance manager. Sarah Sarah Schlüter Schlüter, HapagLloyd’s senior Hapag-Lloyd www.breakbulk.com
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Hapag-Lloyd is considering investment in additional specialist project cargo equipment. CREDIT: HAPAG-LLOYD
director, niche products, meanwhile, said that any impact of specific infrastructure projects announced in Europe had yet to be seen in terms of higher demand for moving breakbulk and project cargo. “A lot of things would be built in China/Asia and at present we just have our regular flows where parts can be loaded on container ships, but we don’t really see anything on top of that. As far as bigger parts are concerned, it is business as usual for now.” She said a timeframe of two to three years would be expected from initial announcements, to allow for tendering and ordering, before cargoes start moving, but noted that Hapag-Lloyd was seeing an increase in requests from sectors such as oil and gas, wind power and mining. “In general we are optimistic, and if the market continues to be strong, Hapag-Lloyd would be willing to 30 BREAKBULK MAGAZINE www.breakbulk.com
continue to invest in additional equipment,” she said. The wind turbine sector is definitely one where the line is involved, she added. AAL Europe deals with a number of green energy projects around the world, with these being controlled out of Europe, Muentz said. “Therefore, the European multipurpose shipping segment relies upon major global industries staying buoyant and active – energy, mining, oil and gas, construction, agriculture. “As long as there is demand from these sectors and majors involved show an appetite for investment and progress, then we will see cargo volumes. In turn, these industries rely upon consumer demand and that depends heavily upon geopolitical stability and economic sustainability. As a carrier, we take all these factors into consideration as well as developing markets and trade lane cargo flows.”
AAL Europe works extensively with renewable energy majors and their projects, he added. “Wind is already a huge driver for the project industry and has in terms of cargo volume shipped at steadily growing levels for many years. At the same time, the wind sector may not deliver hugely exponential growth in terms of cargo volumes over the next five years, as it has already been booming for the last eight or so years anyway. However, what certainly is changing is the size and scope of wind projects worldwide and their components and we expect to see much larger onshore windmills as well as much more substantial offshore projects soon.”
‘QUALITY, NOT QUANTITY’
At Gebrüder Weiss, Ravazzolo said the need was likely to be quality rather than quantity when it comes to handling, lifting and transport equipment for the projects to come. MAY-JUNE 2022
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2024 will see the new B-Class heavy-lift vessels come into play. CREDIT: AAL SHIPPING
CAPACITY MANAGING TO MEET DEMAND AAL Shipping’s Eike Muentz said there is a lot of multipurpose cargo moving today – both from AAL’s existing customers and also from new customers who have migrated to breakbulk transport, from containerization. “Demand is being driven by previously depleted stock levels worldwide of both commodities and industrial components, as a result of the Covid-19 pandemic restricting Eike Muenz movement for AAL Shipping over 18 months. We are also seeing this in the EU project sector (not just EU-based projects, but projects controlled out of Europe), where our shippers are keen to fulfil their own schedule commitments now that they physically can. This is especially true in the wind sector, where national governments have been supporting project owners fiscally and all parties accordingly wish to push forward while investment funds and appetite exists.” This sudden and sharp demand is still manageable with available
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MPV tonnage, he said – “despite shippers aggressively bidding in an effort to secure transport solutions and guarantee their cargoes get fixed. This is one of the reasons why we have been advising our customers to simply book earlier and plan with us now for their longer-term needs.” AAL’s third generation newbuilding program has been made “with solid market fundamentals firmly in mind,” Muentz said. With the six 32,000 dwt Super B-Class heavy-lift vessels expected in the water from 2024, “we are focusing on the same vessel size and long-haul trades that our customers have been trusting us with for many years.” Across the whole sector, he said, despite very few multipurpose vessels headed to scrapyards, newbuild orders are being driven by solid market dynamics and long-term cargo forecasts by the carriers and operators themselves, rather than any third-party investors applying a ‘short-term gain strategy’. “This is extremely important for our sector and will negate the possibility of oversupply like after the building boom that took place after 2008 which effectively took down the market for a decade and left many ships unemployed. Today, tonnage supply is manageable, and we are meeting cargo demand.”
“There is already a lot of equipment in the market – after the 2008-09 crisis, the project market was not that strong, so for years there was more equipment than was needed. Right now, it is maybe balanced. The future will be more about very specialized equipment – not the sheer amount. For example, if you build wind turbines in the mountains, you need a special trailer to transport the blades. These have the possibility to lift the blades into a vertical position during transport to move around very tight corners.” It is quite easy to find a trailer to move a cargo that’s three meters wide, Ravazzolo said. “There are plenty of trailers that can move that. But if the case is six-by-six meters, then there are far fewer trailers. The trend in this industry is going for the biggest modules possible and the demand is going to be for moving these really big units.” More challenging, he said, is the ‘whole catalogue of rules’ in Germany, as well as slow permitting procedures and a political push to get cargo on to the water. ESTA’s Klijn explained a bizarre ruling within Germany’s VEMAGS online system for applying for road permits for abnormal and heavy loads. It makes sense that if your permit is for 340 centimeters wide, then if you try to move 345 centimeters wide, you will be stopped and have to apply for a new permit, he said. However, the rules also apply if a load ends up smaller. “If the load is 320 centimeters wide, it will also be stopped because the rules only allow a 15-centimeter difference from the size you say.” The same applies to weight – if the load is 5 percent lighter than the weight stipulated, the load is stopped and a new permit will have to be applied for, which can take a month, Klijn said. Ravazzolo pointed out that it might only require a change in packing to make the load “too small.” “You have to be very exact. But sometimes clients are not 100 percent sure – it depends on last-minute packing or modification at the last minute and perhaps they ask for a few centimeters more to be on the safe side, but that is now a problem if it is smaller.” MAY-JUNE 2022
BREAKBULK EUROPE REGIONAL REVIEW
The trend is for ever-bigger modules and equipment needs to keep up with that. CREDIT: GEBRÜDER WEISS
BEST PRACTICE GAMECHANGER
ESTA is in favor of having more enforcement and checks on permits and loads, Klijn said, “because it helps the bona fide companies and gets cowboys off the road” – but it has long campaigned for streamlining and
alignment of European permitting rules. “Every national government has its own permitting procedures and plethora of rules. Everybody is doing something different.” He said the sector is now at a pivotal point as a review is under way of the EU directive 96/53 covering
NOT TRAINING FOR THE COMPETITION
Recruiting in the breakbulk and project cargo sector in Europe remains a challenge, according to regional experts. “Everybody is chasing people who are old enough to have the knowledge and experience,” Gebrüder Weiss’ Franco Ravazzolo said. He noted that companies are worried that if they take on young people and train them for one to two years, as soon as they are ready to work and play an active part in the company, the competition puts US$500 more on the table and lures them away. “That’s the reason that stops companies from educating and training young people,” he said. “Of course, we don’t want to prepare people for our competition but if we don’t do this training, someday
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the pool of experienced people will be completely empty. “We educate young people – I spend a lot of my time doing that. The pool of available people with knowledge of projects business is drying out, so we have to educate people and take this risk – we need them.” AAL Shipping has been working in the niche global MPV heavy-lift sector since 1995 and has placed huge emphasis and resources into training and developing its systems and teams – chartering, commercial, engineering and operations, said AAL’s Eike Muentz. “We have been fortunate enough to build the team and systems infrastructure needed to operate seamless global services for our customers.”
European road transport, weights and dimensions. “I think the EU has listened to us – in the consultation sent out on the revision, it states that one of the objectives is to revise the abnormal transport best practice guide that has been in place since 2008. It is time we got some alignment. If a best practice guide is put into the directive and compulsory to follow, not just left on the shelf, it could be a gamechanger.” ESTA is also pushing for heavy transport corridors in Europe. “We are advocating dual use of the military corridors created for NATO – if a tank on a trailer can drive through, what about our abnormal loads?” He hopes that within the next two years, such a network could cover the whole of the EU, providing corridors east-west and north-south. However, in line with the green agenda, Germany is pushing for the relocation of abnormal transport – away from roads and on to water and rail. “The idea is they are going to make huge environmental gains and use ships and inland waterway or rail for transporting heavy cargo, MAY-JUNE 2022
BREAKBULK EUROPE REGIONAL REVIEW
More enforcement and checks on permits and loads help the bona fide companies and get ‘cowboys’ off the road. CREDIT: ALLELYS
proposing that there will be a central organization in Germany that will decide – before the permitting process – whether the load can go by rail or water,” Klijn said. “This has interesting points to it. At ESTA, we think it will not give you
any environmental gain.” Moving a large module by inland waterway, he said, means “you have to load it on a truck first, drive it to the quay, bring in a huge crane, lift it on to the ship, move it by water, then find another crane to lift it off, and bring in more
RIPPLE EFFECT OF GEOPOLITICS
The war in Ukraine has added another layer of complexity and congestion for shippers. Hapag-Lloyd’s Sarah Schlüter said that the line normally does not move much special cargo for Russia or Ukraine – “for us, it has not been a significant market”, she said. “However, it is having a ripple effect on the port situation in northern Europe. Where do you put all the stranded containers? The terminals were already so congested and this is causing even more congestion. And that of course has an impact on special cargo.” Global economic instability is a direct consequence of any geopolitical unrest, such as the war in Ukraine, said AAL Shipping’s Eike Muentz.
“Healthy trade flow stems from stability and sustainability and, while there is major conflict in a trading area, the shipping sector is vulnerable to impact. Fortunately, due to AAL’s trade lane focus being away from those regions affected by the Ukraine conflict, our cargo flows have not been negatively impacted. However, a major conflict such as this will leave a residual impact on global shipping, national economies, and the lives of millions of people. Our hope as a company and as part of the global community, watching the horrors of this conflict play out, is for peace and a lasting resolution.” Aside from this, the disruption of the supply chain on land, a consequence of Covid-19, continues.
road transport to take it to the site. Ninety-eight percent of the sites are not connected directly to waterways. The cranes would have to be mobilized, transported, demobilized. In 80 percent of the cases, putting something into a ship will give you a negative
“There have been labor shortages and general slowdown of all landside operations, such as truckers, stevedores, and port operations, etc. Hence berthing and port operations have been slow and port congestion a recurring issue around the world.” Due to these restrictions, AAL has often not been able to send its own cargo superintendents to the ships to supervise cargo operations, he said. “Before the pandemic, ‘remote supervision’ of such operations was rare. Today it is a fact of life and all our teams have been extensively crosstrained to execute work under these forced conditions. Luckily, we have also managed to source capable local contractors to work with us in many key load and discharge regions.”
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impact environmentally – and that’s apart from the economic impact, where it will usually be more expensive.”
PORT AND WATERWAY RESTRICTIONS
The future will be more about very specialized equipment. CREDIT: AAL SHIPPING
SHIPMANAGEMENT CHARTERING LINER SERVICE FORWARDING AGENCY
Ravazzolo praised the push to switch more cargo from the road to the navigable river network, but agreed there are difficulties that need to be considered. “If you go by river, you have to pay a special truck to reach the next river port, you have to pay for crane handling, river ship, another double craning in port from water to terminal to truck. Green transport costs so much more and companies are not willing to pay that.” The whole permit situation in Germany is the object of wide discussion all around Europe, he said. “We are all hit by that. There are so many routes through the region where you have to cross Germany.” On the subject of waterways, he also mentioned problems on the lower
Connecting Europe and Africa
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36 BREAKBULK MAGAZINE www.breakbulk.com
MAY-JUNE 2022
BREAKBULK EUROPE REGIONAL REVIEW
Danube, where he said many ports are not equipped to handle heavy cargoes. Cranes are missing, quays need reinforcing and road access needs improving. “The lack of investment is historic. So many ports, even if they seem to be in a good location on the map, are not able to handle the cargo. Some are in the middle of a town. Others are well located but focusing on bulks – grain, sand, woodchips – and this type of cargo doesn’t require heavy cranes or strong piers. But when you discharge a 200-tonne generator, you have that weight plus the 80-90 tonne crane and trailer and tractor. A lot of quays would not resist that pressure.” Many ports have no storage space for large pieces of cargo, he added. “When you come with full river ships with ten big units, you can’t get 10 trucks simultaneously for direct delivery. You need space for at least a couple of days to move the cargo piece by piece to the job site. This is hampering the movement of cargo.”
Germany is pushing for the relocation of abnormal transport away from roads and on to water and rail. CREDIT: AAL SHIPPING
The challenges in Europe for project cargo movements are wideranging, but not insurmountable. If the work on aligning the bloc’s abnormal transport policies is successful and investment into crumbling infrastructure materializes, Europe has an exciting energy transition just waiting
to be supported by the project cargo industry. BB Felicity Landon is an award-winning freelance journalist specializing in the ports, shipping, transport and logistics sectors.
Port Tarragona. The best option for your cargo in the Med
Passeig de l’Escullera s/n 43004 Tarragona – Spain Phone (+34) 977 259 400 generalcargo@porttarragona.cat comercial@porttarragona.cat www.porttarragona.cat
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BREAKBULK MAGAZINE 37
BY FELICITY LANDON
PEOPLE AND PROJECTS
DHL IP’s Ryan Foley Explains Why the Two Are Inextricably Intertwined
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conversation with Ryan Foley throws up a consistent message – the importance of people. To put that in context – having the right people in the team will deliver the biggest opportunities, and a restructuring of the DHL Global Forwarding Industrial Projects division 38 BREAKBULK MAGAZINE www.breakbulk.com
is designed to provide a clear line of contact for customers, underpinned by expertise in specific sectors. However, the shortage of experienced and/or available people in the industry represents the biggest challenge. Earlier this year, Foley, Industrial Projects CEO, announced a series of management changes which he said
would “ensure we have the right people focused in the right areas on the right topics.” “In essence, we have simplified the structure. First, we previously had a commercial team split into two areas covering various sectors and functions. We have now brought all sectors and commercial topics together, with MAY-JUNE 2022
CREDIT: DHL AND MARK CLUBB
PROFILE
PROFILE
one point of contact,” Foley told Breakbulk. As the new vice president, global business development and commercial director Industrial Projects, Andy Tite leads a team of global sector heads covering mining, oil and energy, international energy companies, government and defense and engineering, procurement and construction, as well as a global bid team, Material Management System (MMS360) and marketing. “Second, for historic reasons we had the Americas split into two. We now have one regional vice president, Industrial Projects Americas – Jake Swanson. “Customers will see the difference from these changes. If they want to know who to go in the Americas, it is one person. If they want to know who is their commercial lead, they will have one focus point. It should be a simpler access point into DHL and for us it is an easy push down into connecting with our forwarding experts holding extensive project experience in specific areas. We always held that credibility, with our customers knowing they have a real industry expert guiding them – we are simply taking this to the next level.”
DIVERSE PORTFOLIO
DHL Global Forwarding’s Industrial Projects (IP) division covers a broad spectrum of activity, from major capital investment projects with a start and end date through to ongoing logistics contracts involving expediting, global supply chains, line item checking and added services that would not be part of a conventional standalone air or ocean freight offering. “If it is a bit more challenging, it falls into IP,” Foley said. “If it’s out of gauge, heavy – over 50 tonnes – or part of a large investment, our DHL colleagues have to come to us, although not necessarily just because it’s non-standard container movement. Ocean chartering, breakbulk, turnkey projects or requirements that are nonconventional generally land within the DHL Industrial Projects team. “We are actively delivering one-
off projects – while also completing and bidding for work with a lot of oilfield service companies, where there is a lot of cargo in the market. In the renewables sector, we have secured spot shipments for small wind farms as well as significant project volumes involving hundreds of turbines and with a strong pipeline for the future that we are actively quoting. So we are talking about a broad portfolio, from individual shipments to multi-vessel charter projects and five to 10-year MRO contract investments.” However, he said: “Whatever the contractual connections, the execution remains the same. We are still finding the most economic ways to move cargo and continue to push the market to provide the best possible commercial, environmental and operational solutions. Whether one-off or long-term, the work is still the same for our teams at their desk.” Which brings us to the people. Foley said that the two big challenges he faces are getting experienced people into the organization and upskilling existing teams while coping with the consequences of a virtual world. “When you look around at the number of projects being operated, there is clearly a skills shortage in our industry,” he said. “When we try to recruit, it is a challenge to secure a list
of available and competent people in the market. The pool of people that used to exist is simply not there anymore. Historically, the industry had a lot of contractors who would move from project to project. A lot have left the market and not returned, or are now taking full time roles with another forwarder.”
OVERCOMING DIGITAL OBSTACLES
Then there is the challenge of developing the right skills and experienced people in a virtual world. “I remember at the start of my career sitting next to a colleague and trying to get as much information out of them as possible – watching what they did, going to loadouts with them – and that is how I learned. That first-hand shadowing and learning opportunity is really difficult now, and will be in the future when we are still not in a full return to the office.” There are benefits from flexible working, but also many negatives in terms of being able to transfer knowledge to people, Foley said. “You can’t do that in a one-hour Teams call once a week or even once a day. “We are doing our best to give additional support, coaching and training to our people. But we are already in a difficult environment
DHL IP stays close to current bunker prices, daily rates for vessels, capacity coming on main lines and port constraints in the countries it is moving into or out of. CREDIT: DHL
www.breakbulk.com
BREAKBULK MAGAZINE 39
PROFILE
when it comes to getting talent into our organizations and getting young people interested in project forwarding. We are going to see, later down the line, the impact of the past two years in that we will have an even bigger talent shortage in the next two to three years, and that is a real problem.” He said his business is in a better position than some because IP can “try to entice” people from the rest of the DHL group, which runs (among other initiatives) graduate schemes. He himself joined DHL as an ocean freight clerk 19 years ago, before moving across to projects. “We do have some opportunities to bring people over from the other DHL business units into DHL Industrial Projects – but even so, it is going to be a challenge,” he said. “Our people are No. 1 – they are the reason for our achievements. If you have the right people around you, you are going to be more successful. If we can get the right people in the right roles, we are more than halfway there.”
OUTSIDE CHALLENGES
The pandemic, meanwhile, continues to have a direct and knock-on impact on day-to-day business. That includes supply chain congestion and delays, and huge demand on shipping capacity. The Ukraine conflict has now added a whole new dimension in terms of supply chain pressures. 40 BREAKBULK MAGAZINE www.breakbulk.com
DHL IP is now pricing for projects for mid-2023. CREDIT: DHL
“What’s available, at what cost and how can you secure needed capacity? It is a real challenge to source what we need for our customers. We continue to think it is going to change and we see indications that it will – then there is another port or terminal shutdown in China because of another Covid-19 outbreak or another factor such as war in Ukraine and that has a ripple effect, throwing everything into question.” On the container side, you can get a rate out of a carrier but when you come to ship you find that what you were offered is no longer available. On the multipurpose side, capacity is being grabbed and sewn up further in advance of shipping dates than ever. “We see customers, in the renewables space especially, taking vessels for the next two years out of the market. We are waiting for more tonnage to come in, which will help, but all these factors coming together do make the situation difficult.” Consequently, pricing ahead is a headache. “We are pricing work for mid-2023 now. Perhaps the market tells me the daily cost of a multipurpose vessel is hitting the peak and is going to level out or drop – but then suddenly another issue comes along. We work hard to manage the portfolio of risk in this rollercoaster of costs, rates and pricing as well as capacity.” He does not, however, present this
as a negative; there is an accepted element of risk in taking on any business. “If we were just in the business of taking a price from a supplier and adding a margin and putting it in front of the customer, there wouldn’t be any value to what we do. We need to find a way to manage the risk, but also carry an allowable amount of risk for our clients; that is the value we are adding, taking elements of risk out of our customers’ hands.” This means being close to current bunker prices, daily rates for vessels, capacity coming on main lines and port constraints in the countries IP is moving into or out of. “It is a matter to pulling all these factors together. But if you have the right people doing that and the right systems to support them, you are a long way towards solving the problem. And that is what we are here to do, to help our customers.” IP had just completed a project in Russia just before the invasion of Ukraine. Services to and from Russia, as well as domestic services, are suspended now, but the main concern is for about 450 employees based in Ukraine. “We are doing everything we can to support our teams. We have halted services into Ukraine across all parts of the network, as well as into Russia and Belarus. We will reassess that further down the line and hope for an end of the war as soon as possible.”
THE GREEN ROUTE
The sustainability agenda is, meanwhile, generating large amounts of project cargo activity – across wind, solar, tidal and also hydrogen. IP now has a dedicated renewables team, led by Lars Ingmann as global head of renewables and with Jacob Jensen as regional head for Europe. “Expansion within the renewables sector is obviously a huge opportunity for us, and bringing in a new renewables head to lead the team underneath reflects this,” Foley said. “However, and as mentioned previously, it is going to take a lot of capacity out of the market. With more and more projects getting positive final investment decisions – and with the oil price going up, meaning projects that were on the cusp of being decided or not gaining investment will MAY-JUNE 2022
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PROFILE
Forwarders are facing challenges getting experienced people to join the industry. CREDIT: DHL
TAKING ACTION ON DECARBONIZATION
Sustainability and decarbonization are, of course, high on the agenda. DHL Global Forwarding Industrial Projects CEO Ryan Foley said he is thankful to work for a company that takes sustainability so seriously. “Deutsche Post DHL Group are spending €7 billion between now and 2030 to get to the point where we will be net zero by 2050 groupwide. We are not just saying ‘we will try to do this or that’ – as an organization we are putting our money forward and ensuring that this is what we are going to do,” Foley told Breakbulk. The first steps have included DHL Express’s order of the first-ever allelectric cargo planes and in cleaner, sustainably fueled 777s, investment in electric vehicles for final-mile logistics and sourcing sustainable marine and aviation fuel in order to offer a zerocarbon product, as well as operating fully solar-powered warehousing. “We are doing a lot as an organization and that is filtering down
42 BREAKBULK MAGAZINE www.breakbulk.com
into the more niche areas of the business,” Foley said. “From the IP perspective, we are trying to leverage that – talking to our customers and understanding what they want. It is a challenge in a very difficult market, but we are laying the foundations. We are working to push down into the roots of our customers’ operations and build on that – and I think things will happen in the next 18 months, as we see projects operating and requiring operational execution with an overall carbon-neutral target.” DHL has four innovation centers, in Chicago, Cologne, Dubai and Singapore. “These are big think-tank locations where we are listening to customers, looking at what’s available in the market, talking about how we can drive change in the future. It is about working out how we can bring that to our customers and convincing them that we can continue to provide the service they want but with an alternative and sustainable approach,” Foley said.
now come back online – there will be a big influx of business to service with a lower capacity of equipment and people in the industry to deliver it.” The strategy at IP has been, and will continue to be, taking experts from the other side of the fence, he said. “For example, our head of renewables joined us from Ørsted, the wind farm manufacturer and installation provider. We want to bring as much knowledge and understanding of the challenges that exist in the delivery of these projects to DHL Industrial Projects.” Wind turbines are getting larger and heavier but are possibly now leveling out, he believes. “The challenge is not necessarily that the cargo is getting bigger than before, but that it is all coming at the same time and there maybe isn’t enough capacity long term to support it all. That’s especially the case when you see multipurpose vessels stepping in to take some of the business container lines can’t accommodate.” There could be an additional threat from the container lines choosing to spend some of their unprecedented profits on expanding and seeking to provide their own end-to-end solutions – recent acquisitions by key container lines have reflected the appetite for vertical integration. “Container lines are saying they want a piece of the whole pie, not just port-to-port,” Foley said. “Will they have the appetite to really get into the project market – not just handling individual project shipments but going after the whole project scope? That’s something we need to be wary of and monitor to see where it goes. We do see more and more players in different areas of our industry than perhaps there were in the past, but again a lack of real project experience. What we will do within DHL Industrial Projects is continue to be a specialist, with the right solutions and people to support our customers.” BB Felicity Landon is an award-winning freelance journalist specializing in the ports, shipping, transport and logistics sectors. MAY-JUNE 2022
PROFILE
Port of Rotterdam is known for its versatility as a breakbulk hub. CREDIT: ERIC BAKKER
SHOWCASING PROJECT CAPABILITIES Musician-turned-port director Oversees Breakbulk Development BY SIMON WEST
I
t is fitting that Breakbulk Europe, the world’s largest project cargo conference, is this year taking place in Rotterdam, home to Europe’s busiest deep-water port. Boasting specialized terminals for every kind of cargo, Port of Rotterdam is also billed as the region’s most versatile breakbulk hub. Danny Levenswaard, director breakbulk at Rotterdam, said the port’s capacity to handle the most demanding heavy-lift moves was on show last year after it successfully transported an entire bio-oil pyrolysis plant from the Netherlands to Sweden. Some 35 oversized modules measuring 20 meters long, 7 meters tall and 5 meters wide were collected in a single load and shipped for client M-Star Projects, who insisted the cargo was transported sustainably via inland shipping rather than overland. “It was a really nice project that showed Danny the capability of Levenswaard the forwarder, Port of Rotterdam but also of the 44 BREAKBULK MAGAZINE www.breakbulk.com
production people here in the Netherlands,” Levenswaard said. “It showed the capabilities of the port companies, the terminal that handled this whole operation and the shipping companies who were able to ship the whole thing to Sweden.” Levenswaard joined the Port of Rotterdam in 1992 following a successful 12-year stint as a professional saxophonist. After several roles in human resources, the one-time muso switched to the port’s commercial department, first as business development manager, then senior business manager for bulk and shipping. He has been director for the port’s breakbulk department since early 2016, overseeing the commercial development of project cargo, heavylift, forest products, cars, steel and non-ferrous metals, agro-food and warehousing.
SUSTAINABILITY MATTERS
Levenswaard also sits on the Breakbulk Europe Advisory Board, a group of industry professionals brought together to help shape the program for this year’s conference, taking place on May 17-19. Amid these unsettled times, the Board’s 11 members have the exacting task of pinpointing and exploring the issues that matter most to the industry. “If you look at the world today there are a lot of issues. I think
sustainability across the supply chain is a big one. Companies are forced to produce and to work in a more clean and green manner,” the executive said. A specific challenge for heavy-lift, meanwhile, is the ever-increasing size of cargo. The offshore wind energy industry in particular is being driven by constant technical innovation, with components such as monopiles and turbines getting bigger and more powerful every year. “For onshore wind they were big already, but for offshore wind they are even bigger,” Levenswaard said. “This puts a challenge on ports in terms of port infrastructure, but also in the design of vessels.” These issues and more will be explored in a series of panel sessions at Breakbulk Europe. Levenswaard, who attended his first Breakbulk event six years ago, said the conference is a surefire way of keeping pace with the market. “One of the main tasks of the commercial department is to attract cargo to the port and to generate as much commercial activity in the port as possible. You do that by meeting people within the industry and trying to find out where you can be of service to each other.” BB Colombia-based Simon West is senior reporter for Breakbulk. MAY-JUNE 2022
THOUGHT LEADER
Capitalizing on Trading Boom Regional Hubs Find Their Niche
R
ecent and ongoing events, including the Covid-19 pandemic, Brexit and now, geopolitical turmoil in Eastern Europe, have created a highly buoyant commercial environment for regional ports. This presents a unique opportunity for regional ports to strengthen their contribution to the local economy. For the Port of Tyne, it also presents an opportunity to continue its transition to becoming a global hub for wind energy production. Two years ago, when the Covid-19 pandemic first hit, management at the Port of Tyne faced a great deal of uncertainty about how this crisis would impact business. From crisis comes opportunity and, in our case, it has resulted in a huge spike of interest in using the port as a regional hub for container shipping. Many other regional breakbulk and project cargo ports are also benefitting from the container boom. Here’s why. Problems with port congestion, a shortage of road haulage resources and massively increased haulage and shipping rates have made many companies in the UK’s North East re-evaluate the case for shipping locally. The trend began with container shipping, and we are now seeing it expand into breakbulk cargo shipments, too. Recent months have brought many enquiries from steel, timber and panel shippers – each seeking a local and cost-efficient solution. It is business that would normally only be handled by deep seaports in the south of the UK, but customers are finding the solution to their challenges elsewhere.
For the breakbulk sector, the port’s key attraction lies in the ability to let customers seamlessly switch transport modes. During the last seven months, container costs have risen to their highest levels ever, so companies that would previously have used this method are now being forced to bulk ships instead. Since profit margins have been eroded, it’s essential to find a local partner able to provide a cost-effective and flexible handling solution – especially for outsized cargoes like offshore wind components. Added to this, the River Tyne is fast becoming a clean energy hub, with easy access to berthing facilities and a wide array of thirdparty expertise along its banks from specialists including Smulders, Shepherds and WB Close. These companies have a large skilled engineering base which is transforming from offshore oil and gas to offshore wind. Today, regional hubs offer local container and breakbulk logistics solutions that are faster, cheaper and greener. BB
BY RICHARD NEWTON
Richard Newton is commercial director, logistics at Port of Tyne in the UK.
WELL LOCATED
As one of only two deep seaports in the north of England, Port of Tyne is ideally placed to handle an increase in traffic levels. The rise has taken multiple forms, with more feeder traffic coming from Rotterdam and Felixstowe with some direct calls from the Far East. The port is also seeing real business diversification with the consolidation of its position from ‘mini regional hub’ to a full regional hub. Whereas in the past the port was generally only servicing the hinterland within a radius of 50 miles from the port, market reach is expanding, with the port’s hinterlands reaching Yorkshire, Cumbria and into Scotland. 46 BREAKBULK MAGAZINE www.breakbulk.com
Tyne has benefitted from a UK project and breakbulk cargo shift. CREDIT: PORT OF TYNE
MAY-JUNE 2022
d ou Pr LN GP ec Cz n r i 07 be 20 em ce M Sin h bl pu Re ic
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Es 04 20
Membership Available in Selective Markets! Application: info@gpln.net / www.gpln.net
17-19 May 2022 Rotterdam, Netherlands
EVENT ESSENTIALS WHAT’S INSIDE AGENDA-AT-A-GLANCE THINGS TO DO EXHIBITORS BREAKBULK EUROPE 2022 EVENT ESSENTIALS
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AGENDA-AT-A-GLANCE Tuesday – Thursday May 17-19 19:30 – 22:30
Breakbulk Boulevard
A socializing hub (temporarily renamed in honor of Breakbulk Europe) in the Schiedamse vest, where you can enjoy eight unique restaurants and bars, all offering 15% off their menus and reserved seating for the duration of the event.
Tuesday, May 17 MAIN STAGE
9:00 – 16:30 Chartering Workshop 17:00 – 20:00 Welcome Reception at Rotterdam Ahoy 19:30 – 22:30 Breakbulk Boulevard Party at Schiedamse Vest – City Centre
Hosted by Breakbulk Europe, the city of Rotterdam, the Breakbulk Community Rotterdam, Rotterdam Port Promotion Council and the port of Rotterdam. Must register for Breakbulk Europe and add item to registration, party is free for Breakbulk Europe attendees. (Limited tickets available)
Wednesday, May 18 10:00 Exhibition Halls Open 10:00 – 10:50 Women in Breakbulk Breakfast: Europe Edition SPONSORED BY: 10:00 – 12:00 Complimentary Coffee, Hall 1 Bar
MAIN STAGE CONFERENCE SESSIONS, HALL 2 In partnership with Port Gdańsk 10:45 – 11:00 Opening Remarks 11:00 – 11:30 Global Economic Outlook – How Does It Impact the Breakbulk Community? 11:50 – 12:10 The MPV Fleet: Examining the Potential Shortfall
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12:10 – 12:50 Managing Rates and Capacity: What is ‘Normal’? 13:10 – 13:55 Sustainability Across the Supply Chain 14:15 – 15:00 Wind Spotlight: Examining the Pace of Industry Growth 15:20 – 16:20 Global Energy Transition and the Supply Chain
DISCOVERY & INNOVATION HUB, HALL 1 10:45 – 11:00 Welcome Remarks 11:00 – 11:45 Assessing the Current Breakbulk Technology Landscape 12:00 – 13:00 What Logistics Technologies are EPCs Looking for to Enable Better Orchestration of Projects? 13:15 – 14:00 Digitising End-to-End Logistics 14:30 – 15:00 Understanding Mixed Cargo Operation: Challenges & Opportunities SPONSORED BY: 15:30 – 16:00 Digital Innovation at Rotterdam Makers District 18:00 Exhibition Halls Close
Thursday, May 19 10:00 Exhibition Halls Open
10:00– 12:00 Complimentary Bloody Mary Cocktails, Hall 1 Bar
MAIN STAGE CONFERENCE SESSIONS, HALL 2 In partnership with Port Gdansk 11:00 – 11:30 Breakbulk and Project Market Outlook
11:50 – 12:35 The Environmental Agenda and Future Fuels 12:55 – 13:00 Support for Ukrainian Marine Professionals 13:00 – 13:30 Examining the Talent Gap 14:45 – 15:30 African Port Projects Update
DISCOVERY & INNOVATION HUB, HALL 1 11:00 – 11:45 Advances in Port Technology 12:15 – 12:45 How Oceanbird Wing Sails Will Revolutionize Shipping 13:15 – 14:00 Digitising Key Documentation 14:30 – 15:00 Tech Demo 15:30 – 15:45 Closing Remarks
EDUCATION DAY 9:30 Registration 10:00 – 10:15 Welcome Remarks 10:15 – 11:00 Session 1: Empowering the Next Generation of Breakbulk Professionals 11:00 – 11:30 Session 2: Breakbulk Project Case Study 12:30 – 13:30 Session 3: Graduate Opportunities 14:00 – 15:00 Round Table Discussions 15:00 – 16:00 Student Show Floor Tour 16:00 Exhibition Halls Close
BREAKBULK EUROPE 2022 EVENT ESSENTIALS
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THINGS TO DO
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500+ Exhibitors
Education Day
Discovery Zone HALL 1
INSPIRE
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Discovery & Innovation Hub HALL 1
ICS Chartering Workshop
Breakbulk Boulevard Party
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Welcome Reception
MORNING COFFEE
Main Stage Sessions HALL 2 SPONSORED BY
SEE MORE Rotterdam Travel Pass
HALL 1 Bar
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ENERGIZE
Women in Breakbulk Breakfast
Global Shippers Network Lounge HALL 2
Breakbulk BUSINESSrun
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INSPIRE Making Waves Photo Contest Lounge HALL 2
BREAKBULK EUROPE 2022 EVENT ESSENTIALS
NETWORK Spido Boat Tour
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BLOODY MARY BAR HALL 1 Bar
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EXHIBITORS A
“ADY EXPRESS LLC” 2J31 “K” Line” 2F34-G35 7 Worldwide Logistics GmbH – Logimar Srl 1G10 A.P. Moller - Maersk 1C31-D30 AAL Shipping 2A10-B11 Abnormal Loads Services - ALS 2B74 Across Logistics – MarcoPoloLine 1J41 Addicks & Kreye Holding GmbH 1F21-G20 – bremenports GmbH & Co. KG Admaren Tech Private Limited 1L53 AERTSSEN GROUP – The Heavy Lift 2E50-F51 Lift Group AGENCE DE PRESTATIONS MARITIMES 2L01 AGL Cargo - Brasil – MarcoPoloLine 1J41 AIR CHARTER SERVICE 2H24-J25 Air Partner 2E74 Airbus 2D72 Alcos Transport 2J11 Alexander Global Logistics GmbH 1F21-G20 – bremenports GmbH & Co. KG Algeciras Port – Ports of Spain 1A21-B20 All Seas Shipping Agency 2F50 Allelys 1D31 Alligator Shipping Co. LLC 2A45 Almajdouie Logistics Company LLC 2J20 Amarine Shipping - Korea – MarcoPoloLine 1J41 AMASUS SHIPPING B.V. 1E45 Ambercor Shipping 2L20 Amer Shipping BV – Rotterdam Pavilion 2B10-C11 American Roll-On Roll-Off Carrier 2E71 AMLP / Matitime Kuhn Group – Port 2H74 Atlantique La Rochelle AMRO Sp. Z o.o. 2A02 Amstaf 1A14 Anglo Galleon International Ltd 2J24 APDL – Port of Leixöes & Port of 1C21-D20 Viana do Castelo APFF - Administração do Porto da Figueira 1H31 da Foz Aprojects – Rotterdam Pavilion 2D21 ARIJUS, UAB 1L23 Ascent Global Shipping UK Ltd 1L46 ASIA IMPERIAL CARGO LOGISTICS 2E50-F51 (SHA) CO., LTD – The Heavy Lift Group AsstrA-Associated Traffic AG 2G55 Atlas Breakbulk Alliance 1G21-H20 Aurelis Real Estate GmbH 1B54 Autorità di Sistema Portuale del Mar 2K14-L15 Ligure Orientale (Port La Spezia)
B
Bahri Logistics Balena Projects Ltd. Baltic Line AS Balticon – Port of Gdańsk Barnhart Crane & Rigging BATI Innovative Logistics BBC Chartering BEEQUIP – Rotterdam Pavilion Bertling Logistics BigMove AG
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2D30 1F55 1F14 1B31-C30 1F10 2D20 1E31-F30 2B10-C11 2B30-C31 2G64-H65
BLG Cargo Logistics GmbH – bremenports GmbH & Co. KG Blomberg – Finland Pavilion Blue Mountains Consulting GmbH – Georgian Trans Expedition LTd Blue Water Shipping BOCS BOK SENG LOGISTICS PTE LTD BOLK Bolloré Transport & Logistics Bonn & Mees Drijvende Bokken BV – Rotterdam Pavilion Breadbox Shipping Lines B.V. Breeze Industrial Packing GmbH – J M BAXI HEAVY PVT LTD bremenports GmbH & Co. KG Bremer Lloyd Logistics GmbH & Co. KG Briese Group BROEKMAN LOGISTICS Brunsbüttel Ports GmbH – Port of Hamburg BSC GROUP
C
1F21-G20 1H21-J20 2A40 2B60-C61 1C34-D35 2L04 2D60 2F10-G11 2C20 2E25 1K34 1F21-G20 2B64-C65 1E35-F34 2D11 1B11-C11 1D45
C. Steinweg - Handelsveem B.V. 2B34-C35 C.I.S.Co – Western Ligurian Sea 2F61 Port-Ports of Genoa Care MPL – MarcoPoloLine 1J41 CargoSnap – Rotterdam Pavilion 2B10-C11 CargoSoft GmbH – bremenports 1F21-G20 GmbH & Co. KG Cargow BV / Longship BV 2D12 Carl Polzin GMBH 2A41 Carlos Sousa 1L37 CARU Containers B.V. – Rotterdam Pavilion 2C20 Ceekay Shipping Services LLC 2G60 Centralog 1D41 CEVA LOGISTICS 2D71 CF&S Group 2E55 CFT – Port of Marseille 2H70-J71 Chapman Freeborn Airchartering Ltd. 2C54 CharterWorks 1K43 CHECKMATE 2A37 Chipolbrok 2F40-G41 CHS Container Handel GmbH 1F21-G20 – bremenports GmbH & Co. KG Cimolai Spa 1K50 CIMOLAI TECHNOLOGY 1B50 CJ ICM Logistics 1G35 Clarksons Port Services 1D01 CLdN 2D10 CLP 1G14 CMA CGM 2J54-K55 Collett & Sons Ltd 1C01 COMARK D.O.O. 1A30 Combi Lift – Jumbo-SA-Alliance 2B50-C51 Cometto – FAYMONVILLE 2H64 COMPASS LOGISTICS 1K47 Conceptum Logistics Group Holding GmbH 1L11 Condor Heavy ServiceS – Rotterdam 2C20 Pavilion Conoship International 1E30 Consolidated Shipping Group 1C45 CONTAINER TECHNICS NV 1L21 Conti-Lines Group 2K02
COÖPERATIE NPRC U.A. – Rotterdam 2B10-C11 Pavilion Cordeel – NORTH SEA PORT 2K30-L31 Core Shipping 1D44 CORINTH CANAL S.A. (A.E.DI.K) 2E75 COSCO SHIPPING SPECIALIZED 2E20-F21 CARRIERS CO., LTD. COSMATOS GROUP – The Heavy Lift 2E50-F51 Group Cross Currents 88 1A53 CSP Zeebrugge – Port of Antwerp-Bruges 2E11 CTS S.P.A. 2K24
D
DAHER 2F70-G71 DAKO WORLDWIDE TRANSPORT GMBH 2E64 Danir 19 2F54 Darka Group 1J50 DB Cargo – DB Schenker 2J60-K61 DB Schenker 2J60-K61 DB-PRO 1A34 DCS LIBURNUS – The Heavy Lift Group 2E50-F51 DCT Deepwater Container Terminals 1B31-C30 – Port of Gdańsk De Ruiter Staalkabel Port of Rotterdam 2B10-C11 DEALEX APS 2E73 Dégra Holding B.V. 1D52 DEKRA Marine- & Cargo Survey 1F51 DEL CORONA & SCARDIGLI SPAIN 2E50-F51 SLU – The Heavy Lift Group Deufol SE 2E23 deugro – deugro group 2F20-G21 deugro group 2F20-G21 DFDS Seaways – NORTH SEA PORT 2K30-L31 DHL Industrial Projects 2D31 Dolezych GmbH & Co. KG 2L22 Dr. Shrink, Inc. 2A31 dship Carriers – deugro group 2F20-G21 dteq Transport Engineering Solutions 2F20-G21 – deugro group DYNAMIC SHIPPING – The Heavy Lift 2E50-F51 Group
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East Metals A/S 1F01 EASTSHIP PROJECTS & LOGISTICS 2G10 EAWL - Vietnam – MarcoPoloLine 1J41 Eco Worldwide Solutions B.V. 2B10-C11 – Rotterdam Pavilion Edwards Moving & Rigging, Inc. 2K25 EGYPTIAN GLOBAL LOGISTICS 2E50-F51 – KADMAR GROUP – The Heavy Lift Group EUKOR – Wallenius Wilhelmsen 1F31 Euroafrica Shipping Lines Ltd 2A27 EUROGATE GmbH & Co. KGaA KG 1F21-G20 – bremenports GmbH & Co. KG Euroports Belgium NV – Port 2E11 of Antwerp-Bruges Euroports Finland-Hangö Stevedoring 1H21-J20 – Finland Pavilion EUROPORTS Germany GmbH & Co. KG 1F11 – LHMV EuroRope – Rotterdam Pavilion 2B20-C21
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EXHIBITORS Exclusive Project Network GmbH – Logimar Srl Expeditors International EXPORT CONSOLIDATION SERVICE – The Heavy Lift Group
1G10 1G51 2E50-F51
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FAGIOLI 2D74 Fast Lines – Atlas Breakbulk Alliance 1G21-H20 FAYMONVILLE 2H64 Felbermayr Transport- und Hebetechnik 2J64-K65 GmbH & Co KG Ferest Shipping – Ports of Trieste and 2E51 and Monfalcone Ferrol-San Cibrao Port Authority – Ports 1A21-B20 of Spain FHP Holding Portuale Group – Ports of 2E51 Trieste and Monfalcone FLS GROUP 2J70-K71 Forankra Pol Sp. z o.o. 2L50 Fox Brasil – MarcoPoloLine 1J41 Fox Brasil – The Heavy Lift Group 2E50-F51 FRACHT GROUP 2G34-H35 Franklin Offshore Europe B.V. 2B02 – Rotterdam Pavilion FREEPORT OF RIGA AUTHORITY – Latvian 1K30 Pavilion Freeport of Ventspils Authority 1K30 – Latvian Pavilion Freight Lounge B.V. / Forwarders Connect 2A73 Friderici Spécial SA 2A25 FRITS KROON – The Heavy Lift Group 2E50-F51 Friultrans – Ports of Trieste and Monfalcone 2E51 Fronteq Frontier Equipment & Consulting 1F50 Services
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G2 OCEAN 2J10-K11 GAC Group 1J25 Gdynia Container Terminal – ort of Gdynia 2E31 Georgian Trans Expedition Ltd 2A40 Global Project Logistics Network (GPLN) 1A20 Global Shipping Services LLC – WCA 2B70 Projects Network Globalink Logistics 2F30 Globis NV – Discovery Zone 1A31-B30 GMB Maritime Liner Services GmbH & 2F60-G61 Co. KG Goldhofer AG 1H35 Goodrich Group 2G70-H71 Gosselin – Port of Antwerp-Bruges 2E11 GP Shipping 2A71 GRIESHABER Logistik GmbH 1J35 GRS MARINE OÜ 1B52 Grupo ETE 2K50 Grupo NOGAR – APDL 1C21-D20 GURKAN NAKLIYAT 1C44
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Hacklin Ltd 2C71 Haeger und Schmidt Logistics GmbH 2J64-K65 Hamburger Hafen und Logistik AG 1B11-C11 – Port of Hamburg Hansa Meyer Global Transport GmbH 1F21-G20 & Co. KG – bremenports GmbH & Co. KG Hanse Equipment GmbH 1D40 Hapag-Lloyd AG 1K31 HAREKET HEAVY LIFTING AND G50-H51 PROJECT TRANSPORTATION CO. Hartel Shipping & Chartering – Hudig 2C70 & Veder Hass Logistics Ghana Ltd – Eurofrica 2A27 Shipping Lines HEBO Maritiemservice B.V. –Rotterdam 2B02 Pavilion Hegmann Transit GmbH & Co. KG 2G64-H65 – Big Move HHLA PLT Italy – Ports of Trieste and 2E51 Monfalcone HLI LOGISTICS, LLC 2K21 HLI Rail & Rigging 1K24 HMM Co., Ltd. 2E30 Höegh Autoliners 2B24-C25 Holleman Special Transport & Project Cargo 1D35 Hooymeijer Stevedoring – Rotterdam 2B10-C11 Pavilion Houcon Cargo Systems BV 1L25 HSW Logistics GmbH – Felbermayr 2J64-K65 Transport Hudig & Veder 2C70 HUGO STINNES SCHIFFAHRT GmbH 2E60 Hutchison Ports Gdynia – Port of Gdynia 2E31 Hwy H2O 1H11 HydraSlide 2K10 Hydropure – Port of Antwerp-Bruges 2E11 Hyundai Glovis 2C74
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ICO Terminals – Port of Antwerp-Bruges 2E11 InstaDeep Ltd. – Discovery Zone 1A31-B30 Inter American cargo group SA – WCA 2B70 Projects Network Intermarine – Jumbo-SAL-Alliance 2B50-C51 International Car Operators – Port of 2E11 Antwerp-Bruges International Dunnage San ve Tic AŞ 2D57 International Lashing Systems NV 2H09 Interporto di Trieste – Ports of Trieste 2E51 and Monfalcone Interrijn BV – Rotterdam Pavilion 2B10-C11 ISS PALUMBO 1F41
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J M BAXI HEAVY PVT LTD JKG Transport Sp. Z o.o. Jumbo-SAL-Alliance Jutlandia Terminal – Port of Esbjerg
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1K34 2L10 2B50-C51 1E15
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Kador – Port of Gdańsk 1B31-C30 Kaleido Ideas & Logistics 2E14-F15 Karl Gross Internationale Spedition GmbH 2D64 KARPACK GmbH – LHMV 1F11 KBB TRANSPORT – The Heavy Lift 2E50-F51 Group KESS 2F34-G35 Kestrel Group 2B01 Khimji Ramdas Shipping LLC, Oman 2E50-F51 – The Heavy Lift Group Kita Logistics – The Heavy Lift Group 2E50-F51 KML - Khedivial Marine Logistics 1H51 Konecranes Finland Oy 2J50-K51 Koninklijke Van der Wees Transporten 2B20-C21 – Rotterdam Pavilion Kübler Spedition 2J34-K35 Kühne + Nagel (AG & Co.) KG 2E40-F41 KWH Logistics – Finland Pavilion 1H21-J20
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Landstar Global Logistics, Inc. 2A21 Langowski Logistics – Port of Gdańsk 1B31-C30 LASO 2F64-G65 Legend Logistics Group 2A61 LGH – Rotterdam Pavilion 2B02 Liburnia Maritime Agency Ltd 2L25 LICVEM SHIPPING ApS 2H20 Liebherr 1G11-H10 LIEPAJA SPECIAL ECONOMIC ZONE 1K30 AUTHORITY – Latvian Pavilion Lift-Tex® heavy lift slings 1J51 Load Monitoring Systems – Modulift 1B41 Logent Ports & Terminals AB 2H50-J51 Logimar Srl 1G10 Logistics Plus Projects GmbH – Carl 2A41 Polzin GmbH Logistics Solutions / LS Heavylift 2G01 Longship BV 2D12 Louis Dreyfus Armateurs 1L24 LPL Projects 1C25-D24 Lubbers Logistics Group – Rotterdam Pavilion2C10 Lübecker Hafen-Gesellschaft mbH 1B11-C11 – Port of Hamburg Lüders & Stange KG – MarcoPoloLine 1J41 LV Logistics – Rotterdam Pavilion 2B10-C11
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M/S Containers 1L20 MACS /STINNES 2E60 Magaya 2A57 Magdenli Transport and Trade Co. 1K52 MALIN ABRAM 1E11 Mammoet 2B10-C11 Mammoet – Rotterdam Pavilion 1D20-E21 MANN LINES – Rotterdam Pavilion 2C10 Mantsinen Group LTD Oy 2L34 Manuport Logistics – Spain – MarcoPoloLine 1J41 Manzell Döhle Shipping GmbH 1F21-G20 – bremenports GmbH & Co. KG
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EXHIBITORS Maple Group – Rotterdam Pavilion 2C10 MarcoPoloLine 1J41 Marraffa s.r.l. 1A51 OBT Shipping Group 2J65 MarshMcLennan – Rotterdam Pavilion 2B10-C11 Ocean Network Express 2C66 MARTIN BENCHER GROUP 2E77 Oceanbird – Discovery Zone 1A31-B30 Matrans Rotterdam Terminal BV 2C10 OHB Digital Services GmbH 1F21-G20 – Rotterdam Pavilion – bremenports GmbH & Co. KG McS Logistics International Pvt Ltd. 2L06 OL-TRANS 2L51 Medkon Lines Egypt S.A.E. –Pan Marine 2E70 Onego Shipping & Chartering 2A50 Logistics Services OOG Project Cargo Network 2L11 Meriaura 2C75 Osprey Group 1J53 Mexico Logistics Audaxia 1L50 OT Port Gdynia – Port of Gdynia 2E31 MFC TRANSPORT – The Heavy Lift 2E50-F51 Ovet – NORTH SEA PORT 2K30-L31 Group MGS LOGISTICS – WCA Projects Network 2B70 MISJE REDERI LTD 2G24 Modulift UK Ltd 1B41 Moeco – Discovery Zone 1A31-B30 MOELLER – The Heavy Lift Group 2E50-F51 Paldiski Northern Port 1D50 MOL 2G30-H31 Pan Marine Logistics Services 2E70 Morska Agencja Gdynia Sp. z o.o. 1E44 Pan Marine Petroleum Services 2E70 Mouvers Srl – CLP 1G14 Pan Marine Shipping Services 2E70 MS Amlin Marine NV 2E21 PD Ports 2J14-K15 MSC MEDITERRANEAN SHIPPING 2A20-B21 PEREZ TORRES GROUP 2B40-C41 COMPANY Pewag Netherlands – Modulift 1B41 Mukran Port Terminals GmbH & Co. KG 1C11-D10 PKS International CARGO S.A. 2H75 MULTIPORT SHIP AGENCIES NETWORK 1C41 Plant Speed Limited 2A17 Multitrade 2C50 PORT ASSOCIATION MECKLENBURG1F11 Murlink 1A44 VORPOMMERN – LHMV MYCRANE – Discovery Zone 1A31-B31 Port Atlantique La Rochelle 2H74 Port Authority of Kribi 2G14 Port Authority of Seville – Ports of Spain 1A21-B2 Port Authority of Valencia – Ports of 1A21-B20 Spain Port Consultants – Port of Gdynia 2E31 N.M. Heilig B.V. 1J31 Port Esbjerg 1E15 Nanami Shipping 2K50 Port Gdańsk Eksploatacja PGE 1B31-C30 Navis LLC 2H61 – Port of Gdańsk Navitrans SA – Atlas Breakbulk Alliance 1G21-H20 Port Network Authority of the Ionian Sea 1F47 Nectar Group Ltd. 1A40 – Port of Taranto Negrini S.r.l. 1L42 Port of A Coruña – Ports of Spain 1A21-B20 NewTide Chartering BV – Hudig & Veder 2C70 Port of Algeciras – Ports of Spain 1A21-B20 Niels Winther Liner Agencies – Port 1E15 Port of Amsterdam 2E10-F11 of Esbjerg Port of Antwerp-Bruges 2E11 Nirint Shipping BV 2D15 Port of Aveiro and Port of Figueira da Foz 1H31 NMT GROUP 2H14-J15 Port of Aviles – Ports of Spain 1A21-B20 Noatum Project Cargo 1D11-E10 Port of Barcelona 2C50 Noatum Terminals 1D11-E10 PORT OF BILBAO – UNIPORTBILBAO 1E25-F24 NORDFROST GmbH & Co. KG 2G20-H21 Port of Cadiz – Ports of Spain 1A21-B20 Nordic Maritime Solutions 2D76 Port of Cartagena – Ports of Spain 1A21-B20 Norlat Shipping Ltd. AS – bremenports 1F21-G20 Port of Castellón – Ports of Spain 1A21-B20 GmbH & Co. KG Port of Dover Cargo Ltd 2G51 Norsea Denmark – Port of Esbjerg 1E15 Port of Ferrol – Ports of Spain 1A21-B20 North Adriatic Sea Port Authority – Ports 2D51 Port of Gdańsk Authority SA 1B31-C30 of Venice and Chioggia Port of Gdynia Authority 2E31 NORTH SEA PORT 2K30-L31 Port of Gijón – Ports of Spain 1A21-B20 Nova Natie Terminals – Port of Antwerp2E11 Port of Gothenburg 2H50-J51 Bruges Port of Hamburg 1B11-C11 NPCR – Rotterdam Pavilion 2B10-C11 Port of HaminaKotka Ltd – Finland 1G25-H24 NT Liftec Oy 2J35 Pavilion NYK BULK & PROJECTS CARRIERS LTD 2D50 Port of Hanko – Finland Pavilion 1H21-J20 NYK Group 2D50 Port of Helsinki Ltd – Finland Pavilion 1H21-J20 Port of Huelva – Ports of Spain 1A21-B20 Port of Karlshamn 1L55 Port of Kiel – Port of Hamburg 1B11-C11 Port of Kokkola – Finland Pavilion 1H21-J20 Port of Koper 2L03
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Port of Las Palmas – Ports of Spain 1A21-B20 Port of Lubmin – LHMV IJ31 Port of Málaga – Ports of Spain 1A21-B20 PORT OF MARSEILLE FOS 2H70-J71 Port of Moerdijk – Rotterdam Pavilion 2B02 Port of Nantes Saint Nazaire 2B41 Port of Oulu – Finland Pavilion 1G04 Port of Pori – Finland Pavilion 1G04 Port of PORT LA NOUVELLE (France) 1D53 Port of Rauma 2L30 Port of Rotterdam 2B10-C11, 2B02, 2B20-C21, 2C10, 2C20, 2D21 Port of Santander – Ports of Spain 1A21-B20 PORT OF SETE 1L45 Port of Stralsund – N.M. Heilig 1J31 Port of Sunderland 2G74 Port of Tarragona – Ports of Spain 1A21-B20 Port of Turku Ltd 1C24 Port of Tyne 1F53 Port of Vigo – Ports of Spain 1A21-B20 Port of Virginia 2H30 Portico 2J74 Ports of Normandy 2K75 Ports of Nova Scotia 1A50 Ports of Spain 1A21-B20 Ports of Tenerife – Ports of Spain 1A21-B20 Ports of Trieste and Monfalcone 2E51 Potteries Heavy Haulage 2A55 Project Expert Network (PEN) 2A51 Project Logistics Alliance GmbH 1F21-G20 – bremenports GmbH & Co. KG Project Partners 1B21 Projectcargo AG 2G75 ProjectCargoJournal.com – Rotterdam 2B10-C11 Pavilion Promos Italia 2F61 Promotion Council North Sea Port 2K30-L31 – NORTH SEA PORT PSA Breakbulk 2J64-K65 PTS Logistics GmbH – bremenports 1F21-G20 GmbH & Co. KG Puertos del Estado – Ports of Spain 1A21-B20 PWL Group 1C25-D24
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Qingdao Yuedasite Rigging Co. Ltd QTerminals Quality Cargo Networks
2L08 2K20 2F02
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RAK Ports 2D65 Rauanheimo – Finland Pavilion 1H21-J20 Rauma Cata Oy 1D51 Rendsburg Port GmbH – Port of Hamburg 1B11-C11 Rezayat Logistics Group 1L41 Rhenus Logistics B.V – Rotterdam 2B10-C11 Pavilion Rhenus Project Logistics GmbH & Co. KG 1B10 RMS Ports 1F15 Rontransmar 2J75 ROSTOCK PORT GmbH – LHMV 1F11
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EXHIBITORS Rostocker Fracht- und Fischereihafen GmbH – LHMV Rotterdam Maritime Capital of Europ – Rotterdam Pavilion Royal Dutch LV Logistics – Rotterdam Pavilion Royal Roos B.V – Rotterdam Pavilion Royal Wagenborg Group RS Logistics – MarcoPoloLine RW Solutions Ltd.
S
1F11 2C20 2B10-C11 2B02 1A01 1J41 1L43
SA-TU Logistics Oy – Finland Pavilion 1H21-J20 Saco Shipping GmbH – Port of Hamburg 1B11-C11 Safe Cargo Limited 1L51 SafeLifting Europe B.V. – Rotterdam 2B20-C21 Pavilion SAGA WELCO 2J30-K31 Sagro – NORTH SEA PORT 2K30-L31 Sallaum Lines 1E21-F20 Samer&Co. Shipping – Ports of Trieste 2E51 and Monfalcone Santova – MarcoPoloLine 1J41 SANY Europe GmbH 1F44 Sarens 1C40 Sarjak Container Lines 2E65 SCA Logistics GmbH – Port of Hamburg 1B11-C11 SCHEUERLE –The Heavy Lift Group 2E50-F51 Schmidbauer 1C20 Schultze Stevedoring GmbH & Co. KG – bremenports GmbH & Co. KG 1F21-G20 SCHRAMM Ports & Logistics Sweden AB 1B11-C11 – Port of Hamburg Schulte & Bruns 2C60 SDK FREJA 2J61 Seaber 2A01 Sea-Cargo AS 2F65 Seadock – Ports of Trieste and Monfalcone 2E51 Seaports of Niedersachsen Gmbh IJ21 Seehafen Kiel GmbH & Co. KG – Port of 1B11-C11 Hamburg Seehafen Wismar GmbH – LHMV 1F11 SENNEBOGEN 1F40 SevenLog Ghana 2K50 Shanghai Hanse Engineering – Hanse 1D40 Equipment Share Logistics B.V. AKA Share Projects 2B70 – WCA Projects Network Shine Logistics – Korea – MarcoPoloLine 1J41 SIA “Tranzīta Biznesa Informācija” 1K30 – Latvian Pavilion Silverknot Management Limited 2A33 SJSC “Latvijas dzelzceļš” (Latvian Railway, 1 1K30 LDz) – Latvian Pavilion SLOMAN NEPTUN Shipping & Transport 1F21-G20 GmbH – bremenports GmbH & Co. KG Smartcontainer B.V. – Rotterdam Pavilion 2B10-C11 SOGEBRAS – The Heavy Lift Group 2E50-F51 SOSERSID – The Heavy Lift Group 2E50-F51 SpanSet 1D02 Spedition Gutmann GmbH & Co. KG 2G64-H65 – BigMove Spedition Thomas – The Heavy Lift 2E50-F51 Group
Spliethoff Group 1A11 STA Logistic, UAB 2K54-L55 State Joint Stock Company “Latvijas 1K30 dzelzceļš” (Latvian Railway) – Latvian Pavilion Steelduxx 2K50 STENA LINE 2D75 Steveco Oy – Finland Pavilion 1G25-H24 Stevena – Finland Pavilion 1H21-J20 Stukwerkers Havenbedrijf – NORTH 2K30-L31 SEA PORT Supermaritime Nederland b.v. 2K30-L31 – NORTH SEA PORT SUVARI SHIPPING & TRADING CO. INC. 2H25 Swire Projects 1A10 Swire Shipping 1A10 SWS Seehafen Stralsund GmbH –LHMV 1F11
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Tag-Spezialtransporte & Projektlogistik 1G02 TCGL – Port of Leixões and Port of 1C21-D20 Viana do Castelo TCL-Terminal de Contentores de 1C21-D20 Leixões, S.A. – Port of Leixões and Port of Viana do Castelo TCO Transcargo GmbH – Port of 1B11-C11 Hamburg The Bristol Port Company 2J21 The Crosby Group 1J55 The Heavy Lift Group 2E50-F51 The Mission to Seafarers 1C42 THE RIEDL GROUP – The Heavy Lift 2E50-F51 Group Tiel Logistics B.V – Rotterdam Pavilion 2B10-C11 TOS Port & Logistics – Rotterdam 2B10-C11 Pavilion TOTAL MOVEMENTS –The Heavy Lift 2E50-F51 Group TPL Transport & Project Logistic – Port 2E11 of Antwerp-Bruges TradeLink & Associates GmbH – Hudig 2C70 & Veder TRADELOSSA – The Heavy Lift Group 2E50-F51 Trak Transportaciones 1B02 Trans American Trucking & Warehouse 1A48 Transannaberg Sp. z o.o. 2H60 Transcoma – Port of Barcelona 2C50 Transport Company Ville Silvasti Ltd. 1G31 Transport Międzynarodowy Ireneusz 2L56 Strychacz Transport- und 2A41 Handelsberatungsgesellschaft (THB) – Carl Polzin GmbH Transportes Y Gruas Aguado 1E34 Trieste Marine Terminal – Ports of Trieste 2E51 and Monfalcone Trusted A/S 1E40 Tschudi Logistics 1C50 TST Yokohama 2K50 TULPAR Survey Consultancy Maritime 2A15 Services Imp Exp Ltd Co Turku Stevedoring Oy – Port of Turku Ltd 1C24 Turun Vapaavarasto Oy – Port of Turku Ltd 1C24
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U
UECC Ultrabulk Uni Forwarding International Uni-Logistics – Port of Gdańsk Uniatlantico UNIPORT BILBAO – PORT OF BILBAO Unique Lights Nederland BV – Rotterdam Pavilion United Cargo Management - USA – MarcoPoloLine United Heavy Lift Universal Africa Lines – BOCS Universal Transport UPTEKO – Discovery Zone
2D54 2H34 2D61 1B31-C30 1E41 1E25-F24 2B10-C11 1J41 2C30 1C34-D35 1J45 1A31-B30
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Valenciaport – Ports of Spain 1A21-B20 VALLEY GROUP – The Heavy Lift Group 2E50-F51 Van Ameyde Marine 1F02 Van der Vlist Transport groep 2G31 Van der Wees Transporten 2B20-C21 – Rotterdam Pavilion Van Doorn Containerparts BV 1F45 Verbrugge International B.V. 1J10 Vertom and Vertraco 2B51 VESTA POLSKA – The Heavy Lift Group 2E50-F51 VETRO – Port of Gdańsk 1B31C30 Viktor Baumann GmbH & Co. KG 2D70 VOLANS MARITIME 2F60-G61 VTG Project Logistics 2E61
W
Wallenius Wilhelmsen Ocean 1F31 WCA Projects Network 2B70 Western Bulk Pte Ltd 2F74 WESTERN LIGURIAN SEA PORT 2F61 AUTHORITY- PORTS OF GENOA Westerstuw B.V. – Rotterdam Pavilion 2B10-C11 Wilson Eurocarriers AS 2C24 World Wide Shipagencies Association 2L58
XYZ
XLProjects XXL Consolidation GmbH Yilnak Project and Heavy Transportation YourPnI B.V. ZTZ Logistics Zuidnatie – Port of Antwerp-Bruges Zwatra Transport Zweckverband “Energie- und Technologiestandort Freesendorf” Industriehafen Lubmin – LHMV
2H10 1L44 1L31 1K45 2L02 2E11 2H13 1F11
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TECHNOLOGY
BY AMY MCLELLAN
CRYPTOCURRENCY FRONTIER
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Disruptive Technology Yet to Break Through
ast summer, unnoticed by many, a mass migration started. But it wasn’t people or animals on the move, rather thousands of high-powered computers. Deployed to “mine” for cryptocurrencies, the machines had to be evacuated from mainland China after the Beijing government announced a crackdown on bitcoin trading and mining. The Chinese pronouncement triggered a cryptocurrency exodus, with many machines moved to Kazakhstan
56 BREAKBULK MAGAZINE www.breakbulk.com
(a destination that has since fallen out of favor with some crypto-miners due to unstable power supplies), while others headed to North America. Canada’s FedNav was among the shippers who complemented their normal commodity and breakbulk cargoes with powerful computer servers, in this case on behalf of New York-listed BIT Mining. The Hong Kong technology company is building out a large facility in Ohio, where it conducts self-mining operations and hosts third-party miners.
BY AMY MCLELLAN
As with other industries that are reliant on computer hardware, cryptominers have been hit by a computing hardware and component supplycrunch, which is why it was important for these companies to extract their machines from China. BIT Mining CEO Xianfeng Yang said the company is making progress in its buildout and in securing mining machines, “despite ongoing industrywide supply-side constraints.” FedNav declined to comment on the shipments of the servers, with
MAY-JUNE 2022
TECHNOLOGY
a spokesperson stressing all the firm’s attention is currently focused on the safety of its people and complying with all sanctions requirements. China’s crypto-ban pulled the rug out from what had been a booming industry. There was much speculation about China’s motivations. Was it down to concerns about financial stability? The unsustainable energy consumption? To curtail financial crime? To prevent capital flight from its markets? Or to protect its own ambitions for the digital yuan? Whatever the real reason, last year’s ban certainly highlighted that crypto is still very much an emerging industry that still carries a certain amount of political risk for investors and users – what analysts at Deloitte call a “frontier.”
TRUST ISSUES ON THE FRONTIER
These new digital currencies only emerged in 2009, and the early years were marked with a certain amount of scandal, with bitcoin – and the many other cryptocurrencies that now exist – too often associated with fraud, money laundering and other criminal activities. Last year, the U.S. Department of Justice seized US$2.3 million worth of cryptocurrency from the DarkSide ransomware operators responsible for the attack on Colonial Pipeline. It certainly doesn’t help that there’s some suspicion that cryptocurrencies are being used by Russians to evade the sanctions imposed following the invasion of Ukraine. “We have taken steps to clearly signal to all those who are exchanging, transacting, offering services in relation to crypto assets that they are being accomplices to circumvent sanctions,” said Christine Lagarde, president of the European Central Bank, after a sharp increase in roubles being used to buy bitcoin and other virtual currencies. Russia has said it is considering accepting Bitcoin as payment for its oil and gas exports in a bid to keep income flowing to its stricken economy and, at the time of writing, large crypto exchanges, such as Binance, were still handling transactions in Russia. Yet it’s also worth pointing out that people
Blockchain A decentralized, distributed, and often public, digital ledger consisting of records called blocks that are used to record transactions.
Crypto-mining New bitcoins are created by solving complex mathematical problems, the first bitcoin “miner” to solve the problem is rewarded with bitcoin. This process also confirms transactions on the network to make them trustworthy.
Bitcoin A decentralized digital currency, without a central bank, that can be sent from user to user on a peer-to-peer bitcoin network.
Stablecoins a class of cryptocurrencies that are pegged to a stable real-world asset, like the U.S dollar or gold, in an attempt to offer price stability.
GLOSSARY
around the world have donated tens of millions of dollars’ worth of cryptocurrency to help the Ukrainian government and people in their fight for their country, demonstrating how this relatively new financial infrastructure enables speedy cross-border transactions.
CORPORATES STILL WARY
Given its decentralized and unregulated nature, it’s hard to estimate how much of the world’s wealth is held in crypto, but there’s no doubt it is big and getting bigger. Even so, this is still very much a fringe payment option that few corporates have yet to plan for, despite there being some clear efficiency gains. In late 2020, it was estimated that more than 2,300 companies in the U.S. were able to accept bitcoin as a form of payment, but the list of florists, coffeehouses, massage parlors and small law firms suggests the currency has some way to go before it breaks into the large corporates space.
“Companies venturing to use crypto in their businesses should have two things: a clear understanding of why they are undertaking that action and a list of the many questions they should consider,” said analysts at Deloitte. The corporate benefits include enabling access to new capital and liquidity pools through traditional investments that have been tokenized, facilitating real-time and accurate revenue-sharing and enhancing transparency to aid back-office reconciliation. Crypto payments can also enhance a host of more traditional Treasury activities, such as simple, real-time and secure money transfers, strengthen control over the capital of the enterprise and managing the risks and opportunities of engaging in digital investments. What’s more, crypto may serve as an effective alternative or balancing asset to cash, which may depreciate over time due to inflation. This is particularly pertinent now, given fears www.breakbulk.com
BREAKBULK MAGAZINE 57
TECHNOLOGY
GREEN MINING REQUIREMENTS
about hyperinflation and asset appropriation as a result of the Ukraine war. Could this tempt more people to hold some of their assets in a digital wallet? Certainly some cryptocurrencies, such as bitcoin, have performed very well, with some individuals making their fortunes through astute investments, but there has also been dramatic volatility, during which digital fortunes have been lost. For corporations engaged in global trade across multiple jurisdictions, there could be some advantage here – if their concerns about security, reputation and stability can be overcome.
TOO NEW, TOO VOLATILE
A crypto mining ‘farm’. CREDIT: SHUTTERSTOCK
When it comes to embracing the possibilities of cryptocurrencies, companies will need to consider what impact this may have on their decarbonization efforts and their Scope 3 emissions. Mining for bitcoins is one of the most energy-intensive activities on earth, with a report from Fitch Ratings pointing out that cryptocurrencies and highly profitable crypto mining have created ecosystems that already consume an estimated 0.4–1 percent of global electricity. Electricity represents up to 90 percent of crypto mining costs, and therefore the sector is sensitive to electricity prices, with “mines” often located close to low-cost energy, particularly in countries where electricity prices are state-subsided. In some locations, new mines have reportedly caused energy networks to be overloaded, leading to supply outages. Crypto’s carbon footprint has grown since China’s crypto crackdown last year, which forced miners relying on Chinese hydropower to migrate to areas that were reliant on fossil fuels, such as coal in Kazakhstan or natural gas in the U.S. Bitcoin, with a 40 percent share of crypto assets, has annualized power demand of 125 terawatthours, according to the Cambridge
58 BREAKBULK MAGAZINE www.breakbulk.com
Centre for Alternative Finance, which is comparable to the electricity consumption of countries such as Norway and Sweden. Meanwhile the Ethereum blockchain, with its own decentralized finance system (DeFi), including the digital currency ETH and non-fungible tokens (NFTs), has seen its energy consumption spike by 658 percent since January 2021 to 112.4 TWh, around the same power consumption as the Netherlands and the same carbon footprint as the nations of Serbia and Montenegro. There is a push to “green” this energy-hungry industry by shifting to renewable energy to fuel the banks of computers. A Costa Rican hydropower plant recently converted into a green Bitcoin mining plant and many argue that as the industry becomes more regulated, so too will be its use of energy. “Further requirements may include appropriate registration of mining datacenters, require their location to be close to abundant renewable energy sources, and demand response contracts with networks requiring miners to decrease electricity use during peak hours at short notice or to link their energy consumption to periods of low demand,” said the Fitch Rating analyst.
Shippers and contractors contacted for this article had not yet enabled crypto-payments, nor had any intention of doing so in the near to medium term. “We don’t see cryptocurrencies as a viable form of payment at our company,” said a spokesperson for Jumbo, the Dutch heavy-lift maritime specialist. “Jumbo Shipping has never done this in the past and has no plans on doing so in the foreseeable future. The unstable value of cryptocurrencies does not provide an advantage for our business.” This was echoed by others contacted for this article, with the Russia-Ukraine war making an uneasy backdrop to any talk of international cryptocurrency payments. Blockchain – the distributed ledger technology that underpins cryptocurrencies – has been gaining ground, with container shipping taking a lead over other shipping segments because of its utility in tracking cargo or facilitating document sharing, but companies remain wary of crypto, particularly given that, as with any disruptive technology, there are still many operational issues yet to iron out. “Crypto can be very volatile, so I can’t see many businesses taking a risk at this moment in time, and we haven’t seen any appetite from our client base to pay in crypto,” said Louis Perrin, director of Hemisphere Freight Services. “Another barrier is if you get paid in crypto you still need to have USD, GBP or EUR to pay your own supplier invoices, so unless you are cash rich it may not be feasible. In five years’ time, this may change so it makes sense for companies to keep watching and learning.” MAY-JUNE 2022
17 - 19 MAY 2022 | ROTTERDAM AHOY, NETHERLANDS
Hall 2, Stand 2B10 (Rotterdam Pavilion)
Meet us where the world comes together for new project cargo business
Rhenus Logistics B.V. is a proud sponsor of
Contact us via sales@nl.rhenus.com www.projectcargorotterdam.com
TECHNOLOGY
The markets are entering a phase where all of the world’s money, commodities and assets will become digital. CREDIT: SHUTTERSTOCK
Matthew Le Merle, managing partner of Blockchain Coinvestors, which invests in blockchain-based businesses, said companies and their advisors know that digital monies, commodities and assets are part of their future but have not really got on board yet. “It’s no different from us knowing that digital education and healthcare are the future but not using them now,” Le Merle said. “It is a knowing, doing gap.” “We are now entering a phase in which all of the world’s money, commodities and assets will become digital and so all of the world’s supply companies will have to upgrade their infrastructure to accept digital transactions,” he said. “But whether those are central bank digital currencies (CBDC) and stablecoins, or conversely decentralized, distributed cryptocurrencies, only time will tell. Today, most enterprises can’t use cryptocurrencies.”
FUTURE FOCUS
Change is coming, however. One signal of where this might be leading 60 BREAKBULK MAGAZINE www.breakbulk.com
is the role of governments and central banks. On March 9, the Biden administration released an Executive Order calling for studies and plans over the next 180 days to address the risks – and the innovation opportunities – resulting from the growth of digital assets and blockchain technology. This includes a report on the potential impact of a U.S. central bank digital currency, which has been given the “highest urgency.” Analysts at PwC admitted some surprise at the EO for its “relatively warm stance toward responsible innovation in the digital asset space,” although they noted there would now be a lengthy process towards a more comprehensive digital asset regulatory framework, which could prove protracted as any plans for a CBDC, and regulatory framework would likely require Congressional authorization. The clock, the analysts said, “is now (slowly) ticking.” China, India and Russia are among the big economies with CBDC
ambitions and the international infrastructure to facilitate global crypto payments is gradually being built out, through initiatives such as Project Dunbar, led by the BIS, which has developed two prototypes for a shared platform to enable international settlements using digital currencies issued by multiple central banks. For now, this remains a horizon technology for most companies. Given the fast pace of change of disruptive technologies, however, it’s likely that those shipping and project cargo players already watching, analyzing and preparing for that change will be best placed to exploit its advantages – and avoid its pitfalls – when it does finally arrive. BB Freelance journalist Amy McLellan has been reporting on the highs and lows of the upstream oil and gas and maritime industries for more than 20 years. MAY-JUNE 2022
ENERGY UPDATE
WIND INFLATES AFRICA’S SAILS BY LIESL VENTER
I
But Logistics, Regulatory Hurdles Still to be Overcome
n Africa, a continent with enormous energy needs, wind turbines are a rare sight. While several African countries have built sizeable wind industries in the past decade, the installed capacities in 2020 only stood at about 6.5 gigawatts, or GW. Not much, considering the size of the continent, but this is about to change, according to Duncan Bonnett, a partner at Johannesburg-based research and consulting company Africa House. “The potential for renewable energy on the continent is enormous. It is possibly the greatest good news story this decade. We are going to see a lot of activity in the next few years.” A report from the International Finance Corp. estimates that just onshore, the wind energy potential could satisfy the entire continent’s electricity demand 250 times over. According to Bonnett, who tracks projects across Africa, anything from three to five new projects, on average, are being identified per day in the renewable sector. “And we are not even scratching the surface as yet,” he said. “Africa’s extensive coastlines have substantial wind power production potential for both small- and
utility-scale turbines. Several projects, completed successfully, have proven what can be done, and the interest in renewable energy is at an all-time high.” He said projects, such as Kenya’s Lake Turkana that produces 310 megawatts, or MW, of reliable, lowcost energy, the Tarfaya Wind Farm in Morocco with its 131 turbines in the Saharan Desert and the Ras Ghareb wind farm near the Gulf of Suez, are all hugely successful. “There is also Adama I and II in Ethiopia, Taiba N’Diaye in Senegal, and Khobab and Loeriesfontein in South Africa. The activity and interest in renewable energy exists across the continent and is not concentrated in any one particular region.”
MEETING ENERGY NEEDS
Africa’s energy need is well documented. According to the African Development Bank, 640 million Africans have no access to energy, corresponding to an electricity access rate for African countries at just over 40 percent, the lowest in the world. “Africa’s energy potential, especially renewable energy, is enormous, yet only a fraction of it is being currently
employed. Hydropower provides around one-fifth of current capacity, but not even a 10th of its total potential is being utilized,” reads a bank report on African energy needs. Bonnett said they are monitoring more than 500 projects at present, and while many of these are fairly small, they do include some big investments as well. “There is an acceleration taking place when it comes to renewable projects. According to our analysis, project announcements for the first two-and-a-half months of this year have equaled the entire project basket announced in 2021. Projects from 1 to 100 MW from Burkina Faso, Mali and Nigeria, to Zimbabwe, Kenya and Tanzania are being announced or taking off. Few countries are not looking at the opportunity.” In South Africa, the government recently awarded 25 contracts for renewable energy projects worth a total of US$3.3 billion, to reduce the country’s heavy dependence on coal. These 25 projects – 12 wind farms and 13 photovoltaic plants – will breathe some life into a breakbulk sector that has been under pressure thanks to the outbreak of the global Covid-19 pandemic.
TOP: Africa’s installed wind energy capacity was only 6 GW in 2020. CREDIT: SHUTTERSTOCK 62 BREAKBULK MAGAZINE www.breakbulk.com
MAY-JUNE 2022
ENERGY UPDATE
African Countries’ Wind Energy Installed Capacity (MW) MW 2500
2465
2000 1465
1500
1309
1000
Delivering renewable energy projects in Africa is not easy, requiring real tenacity from project owners and their logistics service providers, according to Chris Morris, general manager of Specialized Transport, a company based in Beira, Mozambique. “The projects are going up in remote and far-out areas. While the equipment to move these massive pieces of cargo is available locally and the ports are increasingly able to receive breakbulk vessels, the convoys have to travel long distances, covering thousands of kilometers across several countries with different jurisdictions, regulations and policies.” Africa, he added, can be a scary place for operators that have not worked here before. While solar projects have some breakbulk components, for the most part, it is easier to containerize that
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the next few years. “Africa’s growing population needs energy. The projects to deliver this energy will come and we are very upbeat about the prospects for project cargo. But at the moment there is no real clarity as to when these projects will really start to take off.”
CHALLENGING ENVIRONMENT
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Paul Okpurughre, director of business development and operations (MEA) at SAL Heavy Lift, said the possibilities for renewable energy in Africa are tremendous. A rapidly growing population and a steep increase in urbanization call for higher demand for power. But, he noted, many projects – wind, hydro or solar – are being slowed by a lack of grid infrastructure development, either due to political, financial or geographical challenges. Bonnett added that, while the interest is there, when actual cargo movements will start is “anyone’s guess.” According to Howie Frylinck, strategic business and project management specialist at Pentagon Freight Services, the scope for breakbulk in the wind and hydro sectors is massive, but projects have yet to take off. “There seems to be a lot of projects in the planning stage, but we are not seeing any real movement on the ground as yet. “When it does take off, it is going to be a very competitive arena and come down to those operators that have real experience and knowledge of the African landscape, who can deal with the robustness, the challenges and the high risk.” Okpurughre added that it is on the liquefied natural gas side that SAL is seeing a continuous number of projects taking place. “We might even come to see more now due to the gas delivery issues being experienced in Europe right now. Ghana, Mozambique, Angola and Nigeria are all areas with great prospects in this regard, and we do support several of them.” And while project delays are also anticipated in this sector due to political instability, Okpurughre said the gas business could grow substantially on the export side. Kevin Hutton, general manager of the Beira Logistics Terminal, agreed, saying oil and gas project cargoes make for stable volumes on the continent, still far outweighing that of the renewable sector. This, however, does not mean that renewables is not an exciting industry to watch and hopes are high for more business from this sector in
M
CAUTIOUS OPTIMISM REMAINS
Source: Africa-EU Energy Partnership
cargo and the real opportunity lies in wind energy, he added. But not everyone can move a wind turbine from a port to a remote location 2,500 kilometers away with limited infrastructure in place. “If these projects do take off, they will require careful planning,” he said. The reality, said Franco Bornmann, director at Abnormal Solutions, is that Africa is a high-risk environment. “The locations are remote, often thousands of kilometers from the port. The ability to detour is very limited and if something goes wrong with project cargo, there is no quick fix or solution around the corner. If a truck breaks down, it can take weeks to get a part to it and the cargo is just standing in the middle of nowhere until that happens.” If Africa is to build the projects it is planning, especially wind farms, ports must be the first point of focus going forward. While many ports have the equipment needed to load and off-load cargo, turbines need a lot of laydown space. “That has been one of the biggest challenges we have had to overcome with current and past projects,” Bornmann said. “Ground-bearing capacities www.breakbulk.com
BREAKBULK MAGAZINE 63
ENERGY UPDATE Concrete pouring of a wind turbine base at a South Africa construction site.
CREDIT: SHUTTERSTOCK
are going to have to be increased and massive pieces of land will have to be cleared in and around ports to accommodate the project cargo. This will have to take place in already congested environments.” Road infrastructure is just as limited and few bridges can handle heavy loads, especially in the more remote and farflung regions.
POLICY MISMATCH ACROSS BORDERS
A lack of harmonization of policy and regulation across countries is another major issue, Frylinck said. Sometimes several permits are required to accommodate the different provinces or counties in a single country. “This is not even taking into account the requirements of different countries.” Border posts are also often major obstacles due to the long delays experienced, while cargo in some jurisdictions is not allowed to move without being escorted by local law enforcement. “The logistics requires careful planning because there is literally zero room 64 BREAKBULK MAGAZINE www.breakbulk.com
for error. An increased number of projects will put the current capacity under real pressure,” Bormann noted. Both he and Frylinck also share reservations about equipment capacity. While the big players around the world can import the increased number of trucks and trailers required, along with any other equipment needed to handle more volumes, this in itself will be a huge undertaking. “For one turbine you might need 10 transport combinations,” Bornmann said. “If you are having to deliver three a week you will need 30 vehicles, but if you are travelling 2,500 kilometers from port to final destination and considering the lack of laydown facilities at ports you are going to need at least 50 combinations or you will never make it. It also takes days to get back to ports with empties to reload.” To successfully deliver to timelines and keep cargo moving far more equipment will be required, especially for the mega projects being planned. While there is limited concern for the capabilities and drive to rise to the
challenge, there are worries around cost. “Anything can be done, but it also has a number attached to it. These projects are not going to be cheap simply due to the operating environment,” Bornmann said. Frylinck expected that this will call for more involvement from international companies, rather than African operators. “If one just looks at the clearing of this cargo alone, it is clear to see the forwarding and logistics will be handled by the big multinationals more than anyone else. Few local clearing agents can pay VAT of R20 million or R30 million which is the requirement for a big project.” Hennie Muller of Evergreen Solutions predicted that new players would come to the fore to service the burgeoning market. “Delivering four projects a year in Southern Africa – where the infrastructure is relatively good compared to other parts of the continent – has been a struggle at times. If we are talking about increased project activity, new players will have to enter the market. There is no other way.” MAY-JUNE 2022
ENERGY UPDATE
South African Wind Farms Name
Amakhala Wind Farm Chaba Wind Farm Cookhouse Wind Farm Copperton Dassiesklip Wind Farm Dorper Wind Farm Excelsior Garob Gibson Bay Wind Farm Golden Valley Gouda Wind Farm Grassridge Wind Farm Hopefield Wind Farm Jeffreys Bay Wind Farm Kangnas Karusa Khobab Wind Farm Kouga Wind Farm Loeriesfontein 2 Wind Farm Longyuan Mulilo De Aar 1 Wind Farm Longyuan Mulilo De Aar 2 Wind Farm MetroWind Wind Farm Noblesfontein Wind Farm Nojoli Wind Farm Noupoort Wind Farm Nxuba Oyster Bay Perdekraal East Roggeveld Soetwater Tsitsikamma Community Wind Farm Waainek Wind Farm West Coast 1 Wind Farm
Installed Capacity (MW) WTGs 134 21 139 102 27 100 32 136 111 117 138 60 67 138 137 140 140 80 140 101 144 27 74 88 81 139 140 108 140 139 93 24 94
56 7 66 34 9 40 13 46 37 48 46 20 37 60 61 35 61 32 61 67 96 9 41 44 35 47 41 48 47 35 31 8 47
Rating (MW)
OEM
2.4 3.0 2.1 3.2 3.0 2.5 2.5 3.2 3.0 2.5 3.0 3.0 1.8 2.3 2.3 4.2 2.3 2.5 2.3 1.5 1.5 3.0 1.8 2.0 2.3 3.2 3.6 2.3 (40)x3.15 + (7)x3 4.2 3.0 3.0 2.0
Nordex Vestas Suzlon Acciona Sinovel Nordex Goldwind Acciona Nordex Goldwind Acciona Vestas Vestas Siemens Siemens Vestas Siemens Nordex Siemens United Power United Power Sinovel Vestas Vestas Siemens Acciona Vestas Siemens Acciona Vestas Vestas Vestas Vestas
Status
Fully Operational Fully Operational Fully Operational In Construction Fully Operational Fully Operational In Construction In Construction Fully Operational In Construction Fully Operational Fully Operational Fully Operational Fully Operational In Construction In Construction Fully Operational Fully Operational Fully Operational Fully Operational Fully Operational Fully Operational Fully Operational Fully Operational Fully Operational In Construction In Construction In Construction In Construction In Construction Fully Operational Fully Operational Fully Operational
Source: South African Wind Energy Association (SAWEA).
PORT CALLS NEEDED
More port calls of breakbulk vessels will also be required, Frylinck said, noting that at present there is not enough service to deliver the number of turbines and other cargo required if projects are to increase. SAL’s Okpurughre said there is already a steady growth of port calls in Africa happening, particularly in West Africa. “We also see some development of intra-Africa trade. In the past, we had to leave African destinations empty, but now we see some export cargo as well.” This is an important development, Frylinck said, as the need to increase exports out of the continent was especially necessary as it allowed for
improved costs when it comes to the maintenance of renewable energy infrastructure. But while the challenges to deliver projects are real, the overall developments on the continent are positive, Bonnett said. “Governments are understanding the need to change regulatory environments to increase power delivery to growing populations. We are seeing cooperation on a regional level like never before.” In an unprecedented move, the African Continental Free Trade Area, that entered into force in May 2019, saw 41 of the 54 signatories deposit their instruments of ratification in record time.
“If we look at the logistics sector in Africa, we are seeing a huge amount of investment into the expansion and upgrade of ports in all the regions. Infrastructure investment to move cargo more efficiently is ongoing not only as Africa gears up to trade more with itself but as it realizes its dream of exporting more,” Bonnet said. As the demand for power generation continues, especially as a result of growing urbanization in Africa, renewable energy across the continent will remain in the spotlight. BB Liesl Venter is a transportation journalist based in South Africa. www.breakbulk.com
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TRAINING
HONING THE CRAFT BY LORI MUSSER
Project Logistics Apprenticeships Reimagined
A
multimillion-dollar turbine is carefully lowered into position on an energy utility’s site. It is on time and on budget and in tip-top condition even after having traveled thousands of miles by truck/rail/ship/barge and crossing several regulatory jurisdictions. Almost improbably difficult tasks like this are repeated all around the world every day, thanks to highly skilled global project cargo supply chain professionals.
In an industry with very little room for error, keeping up a steady stream of such talented professionals is an onerous responsibility, but one made easier by continually evolving and improving training, including on-thejob training such as apprenticeships. To add value to any shipment requires immense transportation and logistics experience, coupled with specific cargo knowledge. While transportation and logistics programs are proliferating at post-secondary
institutions, only so much can be taught in a classroom or online. Jay Thomassen, director at global forwarder ATS International, said: “Not a lot of people know how to get a 240,000pound combustion Jay Thomassen chamber from India to KanATS International sas.” Fortunately, Thomassen said to Breakbulk, shadowing and apprenticing are available to help fill the talent gap, and to do so in a safe and effective way. Training new project cargo logistics professionals is a challenge, especially in the U.S. While U.S. universities have an increasing number of logistics programs, few offer in-depth project cargo training. In the past,
Ingram Barge Co. is an advocate of rigorous internal training programs. CREDIT: INGRAM BARGE COMPANY
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MAY-JUNE 2022
TRAINING
Shadowing and apprenticing are available to help fill the talent gap. CREDIT: CROWLEY MARITIME
ATS has been able to bring on graduates from rigorous programs provided outside of the U.S. Germany’s DAV Bremen, for example, offers a two- to three-year advanced logistics program followed by a three-year internship that has produced exceptional candidates. However, evolving U.S.-entry requirements and Covid-19 have essentially eliminated that option, Thomassen said. Today, ATS International uses a medley of training tools, primarily provided within the organization. “We look for entry-level folks coming out of a university-level logistics program. We have an ATS academy training program that teaches all the facets of our business, starting with the basics such as Incoterms and what they mean for a cargo move. We introduce cargo operations, which is foundational to project cargo logistics. We have a two-week introductory course, 90-day structured daily training routine, and an online learning hub,” Thomassen
said. The hub is robust and includes blogs, case studies, videos and a wide range of communication tools and information. “When you get into breakbulk and project cargo, it is special. Our training is comprehensive,” Thomassen said. ATS also includes various external logistics seminars and certifications in its training mix. Most importantly, “for a few hours each day, all the new recruits shadow experienced team members,” he said. “The learning never stops in this industry.”
ON THE WATER
For thousands of years, mariners have been trained at sea. And while exceptional maritime academies now exist, the required knowledge base continues to grow, securing a place for a wide variety of complementary training methods, including seafaring apprenticeships. Century-old Dutch multipurpose vessel operator Spliethoff still finds
value in providing young people with maritime shadowing cadetships that emphasize “theory and practice.” The sneak peek at onboard work and life is an important recruitment tool – corporate videos promote cadetships at sea as a way to try on the lifestyle of a mariner for a few days before making a more permanent choice. It’s good outreach for the industry and a win for both the cadets and the employer. Ingram Barge Co., a top U.S. inland waterway tug and barge operator, is an advocate of rigorous internal training programs. Katie Cronin, Ingram’s human resources busiKatie Cronin ness partner, said to Breakbulk: Ingram Barge “As our current Company www.breakbulk.com
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TRAINING
Despite hearty Covid-19 protocols, Ingram has found safe ways to allow the apprenticeship programs to continue. CREDIT: INGRAM BARGE COMPANY
POWER IN APPRENTICESHIPS
ACCELerate Apprenticeships is an almost US$6 million U.S. Department of Labor (DOL) grant-funded initiative of the American Association of Port Authorities. It aims to develop new or expanded apprenticeship opportunities in transportation, distribution and logistics supply chains. Eligible employers include carriers across all modes, ports, 3PLs, warehousing and distribution companies, energy distribution companies, and others. Barbara Murray, ACCELerate’s executive director, said to Breakbulk that while the effectiveness of apprenticeships in developing specific competencies has been proven, there have been barriers to delivering such programs. One stumbling block relates to putting an apprenticeship program together on paper and getting it registered for DOL approval and grant funding. “Just giving out grant money doesn’t work. There are a lot of steps,” Murray said. At no cost to the employer, ACCELerate can help design a program to meet needs, develop workplace learning plans and related
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education, build partnerships with key stakeholders, provide mentor training, customize marketing and outreach materials and provide limited, strategic funding for the new or expanded apprenticeship programs. “We also pull in senior subject matter experts and technical schools, colleges, and maritime institutes,” Murray said. Grant funding covers items such as program administration, instruction costs, materials and tools, and mentor training. “There is no better way of closing the skills gap,” Murray said. In March 2022, the American Trucking Associations, or ATA, became an official registered apprenticeship sponsor with the U.S. Department of Labor. ATA can now provide its member-companies with the ability to offer apprenticeships to job applicants while ATA administers the program along with its partner FASTPORT – a U.S. DOL intermediary specializing in transportation and logistics. Apprenticeships can help fill an 80,000-driver shortage in the U.S. by combining paid, on-the-job training with instruction.
wheelmen and engineers retire, spots open for others to move into those roles. Associates who move through and graduate out of our internal Pilot Trainee and Junior Engineer programs have the benefit of learning the job on-site (while keeping their regular pay and schedule) with experienced, knowledgeable associates.” Costs are covered and the programs run up to 24 months and include off-site training relevant to the program. Cronin said apprenticeships are an important part of Ingram’s succession planning. Their role has grown in the wake of pandemic-related staff shortages. “We began to see that our employee population decreased. As a result, it was more difficult to hire new associates and move them through the positions necessary … We are working to combat the shortage by placing focus on hiring experienced, external people who would be able to move up quickly and in return, not have to wait so long in order to be eligible for our [highly specialized] training programs,” Cronin said. Despite hearty Covid-19 protocols, Ingram has found safe ways to allow the apprenticeship programs to continue. “When needed, we have implemented virtual trainings and created safe-distance, masked learning when in person,” Cronin said.
ROLE OF INDUSTRY ASSOCIATIONS, ORGANIZATIONS
Today, apprenticeships and other on-the-job training initiatives are almost always part of a bigger training package that may include programs by educational institutions, industry associations and others. Some are very specific, dealing with niche issues within project cargo logistics, such as route planning or trailer configuration. Some are very generalized, depending on the goals of the industry association. For example, at U.S.-based Women in Maritime Operations, or WIMOs, an organization dedicated to retaining, advancing and promoting women in the maritime industry through sharing knowledge and continuing education, MAY-JUNE 2022
TRAINING
Crowley Maritime Corp., has begun a fullcourt press on workforce training for the developing U.S. wind energy industry. CREDIT: CROWLEY MARITIME
a strong webinar program has emerged since the advent of Covid-19. WIMOs Founder and CEO, Kasey Eckstein said web training began as a way to keep members engaged at a time when in-person events had to be cancelled. Since the start of Covid-19, WIMOs has offered a three-part leadership series, a three-part cultural intelligence series, as well as 17 other virtual events with subject matter experts. Industry training initiatives that are tailored to need can expand dialogue with individuals who have parallel or divergent experiences, greatly enhancing the experience, Eckstein said to Breakbulk. Cyril Joseph Varghese is global logistics director at Fluor Corp. He said that the talent gap issue in project logistics was a hot topic during Breakbulk Middle East. The dialogue focused in part on how to make logistics, as an industry, appeal to the younger generation and their novel and distinctive aspirations.
Varghese said the industry has to work harder at that and must “get creative to transfer knowledge from the experienced logistics professionals to the new generation.” Varghese said more extensive and successful industry recruiting and knowledge transfer requires a new, better approach – a collective effort. If all partners in project cargo movements – shipping lines, heavy haulers, port authorities, freight forwarders, EPCs and owners – work together, the industry will be better able to grow the project logistics talent needed for the future. To that end, Fluor has increasingly engaged with logistics service providers to provide training related to EPC logistics. While hands-on training has always been important in project cargo logistics, “it is high time we re-look at these formats,” which, Varghese said, boils down to creating a more complete training ecosystem where there are structured training programs
working in tandem with “a slice of the industry.” He said it is time for apprenticeships to evolve. They need to be part of a package that recruits, trains and retains talent.
NO QUICK FIX
However, creating training ecosystems takes time. In a series of recent announcements, U.S. Jones Act maritime solutions provider, Crowley Maritime Corp., has begun a fullcourt press on workforce training for the developing U.S. wind energy industry. Jennifer Sylva, Crowley’s manager of people development, said to Breakbulk: “To support the growth of the offshore wind industry, we have begun to establish training programs and curriculum, certified by the Global Wind Organisation, at various maritime academies and colleges around the U.S. These programs, in partnership with RelyOn Nutec, will enable the growth of a qualified workforce www.breakbulk.com
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TRAINING
Alison Rumsey, Associated British Ports. CREDIT: ABP
TRAINING ALIGNS AS INDUSTRY CHANGES
Talent engagement and instructional programs everywhere are being bombarded with challenges. Between the pandemic and global supply chain crisis, emerging decarbonization goals and technological advancements, it is difficult for training to keep up with industry changes. “We want to make sure that our business has the skills and people we need to withstand the next set of challenges – whatever they are,” said Alison Rumsey, Associated British Ports’ chief HR officer. In 2022, ABP expanded its apprenticeship and graduate entry programs and enhanced specialized training for existing staff, to grow the talent pipeline for functional jobs and for handling all cargo types. “The last couple of years have been an extraordinary time for the ports sector, and we are proud that we continued Keeping Britain Trading across all our [21] ports throughout a very challeng-
ing time,” Rumsey said to Breakbulk. ABP offers apprenticeships in marine operations, engineering, port management, and other specialized functions. Rumsey underscored the importance, especially for an island nation, of rapidly adapting to supply chain challenges: “For frontline staff and many of our apprentices, working from home wasn’t an option, but we have always put safety at the heart of the way we operate.” She said ABP’s apprentices and other employees were able to easily shift to the academic element of their courses moving to a virtual classroom. “Our Beyond Zero safety program, which is renewed and delivered to every colleague annually, has moved to a virtual format very successfully. I am delighted to note it has also had the unexpected benefit of bringing geographically distant colleagues closer together.”
A collage of past and present ABP apprentices. CREDIT: ABP
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in the U.S. offshore wind industry, particularly in communities that may be underrepresented.” Working with government and higher learning institutions, the training programs will leverage Crowley’s hands-on experience in the energy sector. “For example, at Massachusetts Maritime Academy we anticipate new programs to continue to grow to meet the demand for new jobs – the Biden administration anticipates 30,000 jobs will be created in offshore wind if the White House goal for project deployment is reached by 2030,” Sylva said. Crowley is the largest employer of U.S. mariners, Sylva said, and an important supporter of the “sea term” offered by maritime academy partners. “Cadet shipping not only offers maritime students invaluable hands-on training prior to their graduation, it integrates industry exposure and work experience to support and develop the next generation of skilled mariners,” Sylva said. She noted an uptick in interest in internships across Crowley’s business units this year. In 2021, Crowley endowed the University of North Florida with a US$2.5 million gift for the creation and operation of the Crowley Center for Transportation and Logistics, already deemed a landmark commitment to the growth and development of transportation and logistics talent. Crowley’s sectoral approach to wind energy training and development may be a good test case for the project cargo logistics ecosystem concept. Crowley’s offshore wind programs are in addition to an existing program of internships, rotational training, and on-the-job training for participants to explore opportunities, expand knowledge, and strengthen field experience across numerous business divisions. Project cargo logistics expertise can’t be developed overnight. Apprenticeships and similar on-the-job training programs are being introduced and refined along the entire project cargo supply chain. They are being used to ensure continuity of talent and expertise, and can help transportation and logistics firms thrive in an era marked by talent shortages and rapidly evolving supply chain structures. BB Based in the U.S., Lori Musser is a veteran shipping industry writer. MAY-JUNE 2022
CONVERSATION THOUGHT LEADER
Agents of Change
Weeding Out Supply Chain Risk
Supporting Future Project Professionals STEM Distinction Key to Undergraduate Success
T
he U.S. Department of Education notes: “In an ever-changing, increasingly complex world, it’s more important than ever that our nation’s youth are prepared to bring knowledge and skills to solve problems, make sense of information, and know how to gather and evaluate evidence to make decisions.” These are the kinds of skills that students develop in science, technology, engineering and math, including computer science, disciplines collectively known as STEM/CS. The Education Department states that building students’ skills, content knowledge and literacy in STEM fields is essential if we want a nation where future leaders, neighbors and workers can understand and solve some of the complex challenges of today and tomorrow, and to meet the demands of the dynamic and evolving workforce. Also, all children – no matter where they live – should have access to quality learning environments: “A child’s ZIP Code should not determine their STEM literacy and educational options.” Beginning fall 2022, the Supply Chain and Logistics Technology Program, B.S. Degree Plan at University of Houston will join an elite group of supply chain programs in Texas that are STEM/STEM-related as determined by the Department of Education’s Classification of Instructional Program (CIP), U.S. Department of Homeland Security (DHS) STEM Designated Program List, and the Texas Higher Education Coordinating Board. We are excited to share this major milestone for the Supply Chain and Logistics Technology program, as we will be one of three undergraduate supply chain programs in Texas to have this distinction. The other two are in Dallas and Ft. Worth. 72 BREAKBULK MAGAZINE www.breakbulk.com
TRAINING TOMORROW’S PROJECT WORKFORCE
It is notable that Texas, the nation’s No. 1 export state, and Houston, the nation’s fourth-largest city and home to Port Houston, the No. 1 port in tonnage, will have in fall 2022 a STEM-related supply chain program training tomorrow’s workforce for critical 21st century jobs, as capital projects for energy transition, intelligent infrastructure and SMART cities become the new normal for economic prosperity, global security and a sustainable planet. The STEM-related classification will expand opportunities for students to apply for scholarship funding, allows international students an opportunity upon graduation to apply for a STEM OPT extension for a 24-month period of temporary training that directly relates to their program of study in an approved STEM field, and provides a competitive advantage for students when applying for internships and jobs. Students entering or enrolled in the Supply Chain and Logistics Technology program in fall 2022 will benefit from the new CIP Code approved spring 2022 by the Texas Higher Education Coordinating Board. The new code 52.1301 Management Science is a STEMrelated field. This is a game changer for our program of study, for students, and for industry partners in the capital projects sector. BB
BY MARGARET KIDD
Margaret Kidd is program director, supply chain & logistics technology at the University of Houston.
MAY-JUNE 2022
THOUGHT LEADER
Competence and Capacity Gaps Time for Action on Logistics Labor Challenges
A
lmost all industries are facing a severe talent gap, and this is especially true for the project logistics industry. This development can be seen at nearly every level: from management to logistics specialists and further along the supply chain in terms of skilled technical and operations people. We have an aging workforce in general in this industry, and the attrition of experienced professionals far outweighs the speed at which we can bring in new skills and experience. There is the perception that logistics is an old-fashioned discipline, making it difficult to find logistics talents from within the industry or to attract and bring new talents into project logistics from the outside. This means that recruiting, retaining and developing people into end-to-end thinkers is needed. At the same time, the industry has lost many experts over the last two years due to experienced professionals going into retirement, as well as people transitioning to careers outside of logistics. After decades of working in this industry, I see that we have to compete for young professionals with industries that offer more tangible and defined career paths in new and emerging businesses and digital environments. So, it is critical that as an industry we can easily demonstrate to young professionals the importance and attractiveness of logistics as a key role within the supply chain, highlighting the many opportunities available in this specialized and challenging career path.
People are the industry’s greatest asset. CREDIT: deugro
Continuing professional development opportunities, succession planning and consistent knowledge transfer are important aspects in any professional’s career path or organization’s HR strategy. Due to the diverse nature of the global project logistics industry, it can make defined career planning difficult, at a time when new graduates are looking for definition, commitment and certainty in their career journeys.
ATTITUDE COUNTS FOR MUCH
Project logistics is a complex and challenging industry; therefore, professionals with the right attitude, values and work ethic are a critical asset. Hiring and developing resources can be based on mindset – not necessarily on experience or skills alone because those can be taught and developed. Once you have attracted and developed strong people, staff retention is the next challenge. At deugro, we feel it is very important to gain a broad knowledge base in terms of project management methodologies, tools and practices to support this journey. This is coupled with an important focus on digitalization and automation to support the transition between the old and new ways of supply chains being managed and project logistics delivered. It is important that together, we address both the challenge and the solution to close the competence and capacity gaps we currently have. And we need to invest in short- as well as long-term solutions – positioning project logistics and all its facets as a career of choice to ensure that we have a strong, reliable and sustainable future. By working together, we have an opportunity to look at transferring skills up and down the supply chain. From manufacturing and engineering to shippers and logistics service providers, all must collaborate and invest together in a cross-industry drive to provide a more comprehensive view of the logistics chain and requirements. We are committed to supporting this industry requirement and look forward to Breakbulk Europe 2022 in Rotterdam as an opportunity to discuss and align with our peers in the industry and get this joint initiative started. BB
BY TIM KILLEN
“Hiring and developing resources can be based on mindset – not necessarily on experience or skills alone because those can be taught and developed”
Tim Killen is chief sales officer at deugro.
www.breakbulk.com
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CASE STUDY
COMPLEXITY OF MODULAR MOVE Pre-planning Keeps Design Costs in Check BY MALCOLM RAMSAY
A
t its simplest, cement production can be completed by hand, but the relative minimalism of this ancient process belies the complexity of the modern industrial cement plant and the huge diversity and scale of machinery required for its construction. Freight forwarder UTC Overseas navigated many of the challenges involved in shipping such a varied cargo when it recently helped establish a new greenfield cement plant in Mexico. The complex project involved transport of 3,500 pieces of equipment for the Progreso Plant of Cementos Fortaleza in the Yucatán region of Mexico. With shipments scheduled to arrive from around the world, this project required careful preplanning and close monitoring throughout.
“The client contacted us to run a route survey and ports assessments to identify the destinations ports and their human and operational resources,” Rodrigo Chittoni, vice president projects and head of UTC Cement Division, told Breakbulk. “Global trade today is facing tremendous challenges, and flexibility is key as plans made today may need to change tomorrow. A massive cement plant move requires that all aspects be reviewed daily and adjusted due to Covid-19, weather and other circumstances. Constant monitoring and astute attention to detail are paramount to successful delivery.”
PREPLANNING
UTC had to complete extensive route surveys in advance to ensure that the regional infrastructure could support delivery of all the items. This involved careful analysis of all
potential sea and land routes and was closely tied to the design of the plant, with UTC’s findings helping to shape the manufacturing and construction process. “The first task was to identify the maximum allowable dimensions and weights without modifying the local infrastructure. Next, the client engineered their equipment based on our findings,” Chittoni explained. “Concomitantly, we assessed the ports in the region and studied the existing shipping routes from export locations to these ports to determine which shipping services to utilize and identify the best shipping plan for the breakbulk items.” Based on this detailed data, the partners were able to design modular cement equipment to reduce transportation costs. Chittoni noted that UTC had the “entire project thoroughly planned before the client started the
TOP: UTC Overseas identified the maximum allowable dimensions of the cargo in advance, allowing the partners to design modular cement equipment to reduce transportation costs. CREDIT: UTC 74 BREAKBULK MAGAZINE www.breakbulk.com
MAY-JUNE 2022
CASE STUDY
manufacturing [and] that allowed the client to set the milestones for the construction correctly and gave a clear picture of the budget, alternatives to the plan, and risks.” Some of the largest items to be shipped were components for the mill system, supplied by German equipment manufacturer Gebr Pfeiffer. The MVR 2500 C-4 vertical mill comprised the broadest scope available within the firm’s ready2grind lineup and included pre-feeding, grinding, downstream material transport to silos as well as packing and palletizing. “These ultra-modern plants offer many advantages: from easy transportation, short installation times and fast commissioning to smooth and highly efficient grinding operations and the highest quality standard,” said Rodney Pradet, project manager at Gebr Pfeiffer Americas USA. Based in Rheinland-Pfalz in the southwest of Germany, Gebr Pfeiffer manufactures a range of grinding, separating, drying, slaking and calcining equipment and technologies. Its 2500 C-4 system can deliver a production rate of up to 50 tonnes per hour, with a mill motor installed with a power rating of 1.2 gigawatts. The system is also equipped with frequency converters to enable the mill to rapidly adapt to market requirements, adjusting parameters such as cement fineness and clinker content on demand.
BENEFITS OF MODULAR PLANT
The modular approach developed by the partners proved particularly important as the equipment was set to be manufactured in multiple locations, with deliveries required from Germany, Italy, Spain and Turkey aboard numerous different vessels. “The ready2grind systems are a proven technology with more than 15 systems installed worldwide providing the benefits of a modular plant for fast delivery and quick installation,” Pradet said, adding that the new system “provides the flexibility to produce many types of cement, enabling a changeover between products in a comparably impressive short time. [It] is the most efficient in terms of electrical power and water consumption, easily achieving common global standards for dust and noise pollution.” Occupying a site of less than 6.9 hectares, the Progreso plant is relatively compact. This meant the partners had to carefully calculate the arrival and installation of each unit to ensure there was sufficient space on site, and room to maneuver pieces into position. Local environmental regulations also added further constraints for the project managers, as requirements such as share of tree/ greenfield areas and maximum permitted building height limited some options for the build.
The project was carried out on behalf of the project developer and owner Cementos Fortaleza, a local cement producer that operates three other plants in Mexico – the Tula, El Palmar and Vito plants – all in Hidalgo state to the west. A subsidiary of Mexican industrial conglomerate Elementia, the firm is headquartered in Mexico City. Elementia group comprises some of the largest companies in the construction sectors in Mexico and Latin America. With expertise in cement, concrete, fiber cement, plastics, copper, brass and other metal alloys, the group was keen to develop its own production base in Yucatán, targeting average capacity of 50 tonnes per hour. “Through this project, Elementia aims to participate in the growth of the Yucatán Peninsula and Southern Mexico,” said Jaime Rocha Font, CEO of Elementia. “Yucatan has it all, good and hardworking people, progressive businessmen and collaborators and an excellent administration that supports development in favor of its people.”
COVID SECURE
Alongside the detailed route planning, this intercontinental project also required comprehensive machinery knowledge as well as a firm grasp of international and regional regulations. On top of this the partners www.breakbulk.com
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CASE STUDY
researching the various risks and identifying alternative measures to ensure flexibility. “During the project, we faced the limitations caused by Covid-19 in all ports, and we also encountered a hurricane. But, again, everything was planned, and risks were measured,” Chittoni said. Cargo from Germany, Italy, Spain and Turkey was finally able to be loaded at several European ports and the majority was shipped directly to the port of Progreso in the north of Yucatan. “Necessary personnel were in place to lift signs, signals, cables and lines. Safety measures were of the utmost importance, and Covid-19 protocols required adjustments with short notice,” a spokesperson from UTC Mexico explained.
From start to finish the project took 14 months. CREDIT: UTC
CLEAR COMMUNICATION
The introduction of Covid-19 safe practices initially threatened delivery schedules, but the project was still delivered on time. CREDIT: UTC
faced a range of challenges due to the arrival of the Covid-19 pandemic. “Social distancing, travel restrictions, lockdowns, curfews and uncertainty about the future of the economy were some of the challenges that Gebr Pfeiffer faced,” Pradet noted, adding that the “extraordinary efforts” of the teams involved ultimately led to a positive outcome for the project. When the first plans for the project were announced in 2018, the prospect of a global pandemic was not something that any of the partners were expecting. But by the time the cargo was ready to be moved in 76 BREAKBULK MAGAZINE www.breakbulk.com
early 2020, supply chains were facing serious issues and availability of staff and resources had shifted dramatically. “The introduction of safe practices during the very first weeks of Covid-19 threatened delivery schedules from the outset,” Pradet said. “Coordinating work with sub-suppliers, which for a while did not have access to important documentation, proved frustrating. Fortunately, in good time, everybody learned to work remotely and efficiently.” Despite the huge change to global supply chains, UTC was well prepared, having spent months
Given the scale of equipment required to construct the new plant, a total of 800 truckloads of cargo were delivered to the site. Ensuring that these loads all arrived on time and intact required outstanding communication between the partners. For UTC, this involved close partnership between its various regional offices to ensure every step of the delivery went flawlessly. Chittoni explained that information management was a “crucial aspect” of the project. “For example, we don’t use emails to communicate the status of the shipments with our clients. Instead, we use our own IT platforms to provide information and serve as a depository of documents.” While these IT systems were able to guarantee internal consensus, the bespoke nature of this project also required UTC to develop new means of information sharing. “The client demanded tailor-made solutions for managing the information of their project,” Chittoni said. “As a result, we designed a web page-based on SharePoint, allowing all the stakeholders to access it at many different access levels. Thus, all the interested parties had real-time access to the status and documents, allowing the engineering and logistics department to focus on their main stacks, instead of spending time in repetitive tasks, such as trying to search emails for finding out the status of a shipment.” MAY-JUNE 2022
CASE STUDY
The use of electronic information sharing also helped Gebr Pfeiffer in the construction phase when travel restrictions made on-site inspections impossible. In response, the firm introduced electronic systems that proved highly effective, with new remote assistance functionality helping to drive forward the tasks of optimization and commissioning. “Foreign technicians were not able to travel to Mexico in all the planned phases,” Pradet said. But he noted that the necessity of switching to new remote systems actually helped the teams discover that “there is no such thing as too much communication.” From start to finish the project spanned 14 months and with the final cargo delivered, construction was finally completed in mid-2020. Elementia inaugurated the US$25 million Progreso site in the third quarter of 2020, adding a production capacity of up to 250,000 tons of cement per year and creating 450 direct and indirect jobs. Speaking at the commissioning ceremony for the Progreso plant, Yucatán region Governor Mauricio Vila Dosal said: “The inauguration of this plant goes hand-in-hand with our vision of generating balanced economic growth, that is, that there are job opportunities not only in Mérida but throughout the state.” Alongside this project, UTC also partnered with Gebr Pfeiffer for a second project in Mexico at the same time, delivering cargo for the Quetzal plant on behalf of Holcim México. Located in Umán, near Merida, this new grinding facility is based on Gebr Pfeiffer’s MVR 3350 C-4 mill and now complements the Progreso facility. “The plants provide a combined cement capacity of 1.1 million tonnes per year to the local construction market and a significant economic stimulus during a challenging time where it is necessary to revive the local economy,” Pradet concluded. Based in the UK, Malcolm Ramsay has a background in business analysis and technology writing, with an emphasis on transportation and ports.
SUPPORTING PORT INFRASTRUCTURE
While the small port of Progreso is primarily a passenger cruise destination, it also accommodates a container terminal operated by Dutch port operator APM Terminals and offers some limited multipurpose handling. Located 36 kilometers north of the city of Merida, the port sits at the northwest head of the Yucatán Peninsula and has deep-water access with a channel depth of 12.2 meters. Having determined that this site had the necessary infrastructure to unload the cargo, UTC arranged charter vessels to collect the various components in Europe and coordinated logistics with APM staff to ensure seamless discharge upon arrival in Mexico. “APM Terminals Yucatán has a highly qualified team that operates 24 hours a day in eight-hour shifts, 365 days a year,” a spokesperson for APM said. “The terminal provides stowage, and loading and unloading of goods between various types of transport.”
Covering more than 11 acres, the port features one berth with draft of 9.75 meters and 273 meters of quayside, and a second berth with 7 meters draft and 217 meters of quayside. The landside infrastructure also includes one Panamax portable crane and two mobile harbor cranes. Thanks to the careful preparation by UTC and partners, the port infrastructure had been carefully vetted and onward transportation was closely coordinated with local authorities. “The delivery of some 4,500 tonnes from Europe to a very small port facility in Yucatán would present a logistical challenge even under normal circumstances,” said Rodney Pradet, project manager at manufacturer Gebr Pfeiffer Americas USA. “Container vessel sailings were drastically reduced because of Covid-19, so keen logistics planning was key to guaranteeing space on board [but] many cargoes were consolidated in four charter vessels.” BB
The cement plant has added production capacity of up to 250,000 tons of cement per year and created 450 direct and indirect jobs. CREDIT: UTC
www.breakbulk.com
BREAKBULK MAGAZINE 77
CARGO LENS
CONFUSION ON COAL T o take an overview of the global mining sector is to find numerous stories: of high demand for coal but green pressures and investor reluctance; of high demand for copper required for low-carbon technology but investor uncertainty; of projects delayed by Covid-19 and now gathering pace; and of a new phenomenon of renewable energy projects being built on the site of former mines. Last year saw investments in mining soaring, and the expectation is of
more to come. That means increasing demand for the movement of mining infrastructure components, vehicles, power generators, pumps, dumpers and giant tires, to name a few. According to the Global Energy Monitor’s Global Coal Mine Tracker, new coal mine proposals in January 2022 equated to 1.94 billion tonnes annual production capacity, with China, Australia, India and Russia dominating that volume. The largest new coal mine projects include Siarmal in India, with
A Tale of Many Parts for Dirty Commodity BY FELICITY LANDON
annual production capacity 48 million tonnes per year; the Galilee and Carmichael projects in Australia; and the VostokCoal-Diskon project in Russia. Expansions and upgrades include Alpha North in Australia (30 million tonnes), and China’s Shengli East (stage two, 20 million tonnes and stage three, 30 million tonnes). The world’s state-owned enterprises, with majority government interest, remain the major sources of new coal mine projects and expansions – especially in China and India, said Ryan The 19,000 dwt AAL Fremantle discharging 22,400 cbm of Chinese manufactured mining plant components in Western Australia for the Eliwana Mine & Rail project. CREDIT: AAL SHIPPING
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Driskell Tate, Global Energy Monitor researcher. For private and investor-led projects, Australia and Russia head the table – but in Australia, many mining projects are struggling to secure financial close. “In 2021, Australia shelved 103 million tonnes of proposed mining capacity and downsized ongoing projects by 37 million tonnes. Meanwhile Russia’s newest projects, primarily intended for export to Asia, are now in a shambles because of the war in Ukraine,” he said. Without a doubt, says Driskell Tate, investments in new mines are at odds with Paris climate targets for 1.5 degrees, which require a phase-down in coal production of 11 percent each year. “It’s also at odds with the International Energy Agency’s Net Zero 2050 roadmap, which requires no new mines or mine expansions,” he added. It is difficult to find investors willing to put their name behind mining projects, said Driskell Tate, although this can be circumvented because mining companies can raise finance without specifying particular projects. “In Australia, so many mines have been shelved and cancelled – they have done Ryan Driskell the exploration, Tate assessed the resources and lined Global Energy up potential opera- Monitor tors and the project just can’t get into production because they can’t get the finances.” There is often a huge political incentive for politicians in Australia, the U.S. and elsewhere to support the coal industry, he noted, “but at the same time they are up against a market not necessarily telling the same story. In the U.S. we have had so many coal companies go bankrupt in the past five years – it has been quite astounding.” Physical access to a new mine development is also a challenge. For example, in Australia there are a half-dozen other projects in the same region as the
proposed Carmichael development, all on hold because they are dependent on being able to use the railroad access to Carmichael. “These projects are all backlogged, hoping for the railroad to be built – or they can’t get the coal out.”
APPROVALS COMPLICATIONS
Marc Willim, general manager for AAL Shipping, agreed that environmental concerns are growing. “Everything is getting more complicated to get approval for transport,” he said. “Some of the coal mines in Australia are very close to the Barrier Reef and that has caused some impact on how much traffic is allowed for exports. On the one side it is getting more difficult to build or expand coal mines, and on the other side they don’t really have the finance to do so.” This would also apply to any plans to build new coal-fired power plants, he added: “There would be massive issues getting financing.” Because of its trading pattern, AAL’s main involvement in mining is limited to Australia. “We have regular services and carry large pieces Marc Willim – some for minAAL Shipping ing and some for mining-related port infrastructure,” Willim said. “We recently carried some big ship loaders from Asia to Australia – fully erected, weighing a few hundred tonnes, a substantial deck cargo. We also carry conveyor belts, either to load mining products in port or for mining activity. We are also engaged in bringing spare parts, mining trucks, big tires and all kinds of mining equipment.” Last year was a very strong one in the global market for high and heavy machinery – and demand for mining machinery was no different, said Robert Berg, market intelligence and finance manager at Wallenius Wilhelmsen.
“Global exports of mining machines shot up approximately 50 percent from the Covid-induced trough in 2020 and, with the exception of the coal-driven strength leading up to the last peak in 2018, one would have to go all the way back to 2014 to find similar volumes,” he said. “With our significant market presence in transporting this type of equipment, we also benefited from this strong momentum. We experienced strong volume growth in all our major trade lanes, with rebounding demand across Europe, North America and Oceania. We also saw significantly increasing appetite for machinery in South America. Similarly, growth was geographically broad in terms of export regions.”
STRENGTH EXPECTED TO CONTINUE
Berg said that in the near term, he expected demand to remain strong. “Due to the supply strain caused by the pandemic, our customers are reporting solid order backlogs, which would help carry demand in the time ahead. At the moment, it’s all about meeting the strong demand out there for both us and our customers.” WW does not expect any material shifts in terms of the type of mining machinery cargo it carries in the near term, Berg said. “There will always be a demand for parts and components for servicing and maintenance, and we certainly welcome what we are seeing in terms of miners wanting to replace what has now become an aging fleet. We believe there is more runway in this replacement cycle,” he said. While some commodity prices were already at decade-high levels, the conflict in Europe continues to push prices upwards, which may result in even further increased capex activity, Berg predicted. “There has been an increase in activity in commodity sectors such as the gold segment. On behalf of AAW Projects (Metso Outotec), WW Group recently supported the carriage of a ball mill plant from Italy into Queensland for a gold mine expansion project.” www.breakbulk.com
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CARGO LENS
The 19,000 dwt AAL Nanjing transports a cargo of ‘petals’ (mining plant components) in South East Asia. CREDIT: AAL SHIPPING
As well as plant and processing equipment, WW is seeing an increase in mining consumables being shipped via roll-on, roll-off rather than the traditional container mode – for example, conveyor belting and plant equipment parts such as slew rings and drum hoists, Berg said. Overall, sourcing points of mineral processing equipment is ever-changing and this sometimes brings in more complexity, moving away from established
supply chains, he noted. “The WW Group through Armacup are, for example, able to offer solutions from China into Oceania to support such sourcing shifts.”
MORE OPPORTUNITIES
Container line Hapag-Lloyd has become increasingly involved in mining shipments as it has pushed for special cargo in general, said Sarah Schlüter, Hapag-Lloyd’s senior director, niche
SPLIT COAL PRODUCTION OUTLOOK Global Energy Monitor’s Ryan Driskell Tate described a “growing chasm” in global coal production – with state-owned enterprises in China and India committed to new developments, but many private and investor-owned firms seeking ways to offload thermal assets and diversify portfolios in renewables. Peabody recently announced plans to pursue solar projects on former coal mines, he pointed out; Global Energy Monitor is starting to track projects where renewable energy infrastructure is being built on abandoned coal mines or facilities. There is an advantage in doing that because a lot of infrastructure
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is already in place, it’s unlikely there will be land use disputes to deal with and few would argue with using industrial brownfield sites for solar power projects. “It makes a lot of sense; it will be interesting to see whether others follow,” Driskell Tate said. “Globally, there’s a downward trend in the number of projects moving from exploration into production. The environmental perspective is that these closures and wind-downs aren’t happening fast enough. But small and midsize coal companies continue to pursue new projects and remain more bullish on their projects than some banks and investors.”
products. “I think there are definitely more opportunities,” she said. “We are moving quite a bit of mining equipment – mainly to Australia and South America, including Brazil, Chile and Peru, and also some to Africa.” There are challenges, she said: “All that equipment is going to places where there is often nothing else. The issue we have is a whole lot of equipment goes in, but no business goes out; also mining operations tend to be in parts of the world not super well-connected, so it usually involves transshipments as well, so higher costs. It is challenging for us to get the boxes out again – we have to reposition them empty most of the time as you cannot really get a circular flow in place.” Overall, she said, mining offers attractive business in that it has a lot of volume, but it comes with the downside of the carrier being exposed to high costs. Hapag-Lloyd recently carried tires for large mining trucks and a consignment of mining truck dumpers measuring 10 by 12 meters. “We carry a lot of breakbulk cargo related to mining, including machinery and parts for the vehicles working in the mines.” For Santiago de Chile-based logistics firm Integral Chile, the focus is on copper mining, where there has been some hesitancy over new investments due to the change in government. “Many investors were waiting to see what the new government’s policies would be regarding mining and other infrastructure projects,” said Rodrigo Izquierdo, deputy general manager. “However, while projects may have stopped, been delayed or put on standby the regular mining activity continued, even when we had full lockdown. They can’t stop because Chile’s main income is from copper.” Chile is the world’s No. 1 copper producing nation. For the general picture, it is important to differentiate between new and ongoing projects, Izquierdo said. “Regarding the first, there is a lot of investment that has stopped, put on standby or just delayed, because of the high risk of the Covid19 crisis, and ever higher freight costs that made many projects unviable and the hardware unavailable. On the other hand, ongoing projects are usually long-term and many can’t be stopped, so materials, machines, spare parts, vehicles and other kinds of cargo, are MAY-JUNE 2022
CARGO LENS
Proposed Coal Mines by Country Country
Proposed Projects Projects Projects Projects New Multi-Stage Projects Announced Under Permitted Under Mine Expansion Recommission Development Exploration Construction Projects Projects Projects Projects Australia
53
9
25
14
5
27
21
Botswana
3
1
1
0
1
1
2
Bangladesh Brazil
Canada China
Colombia
Czech Republic India
Indonesia
Kazakhstan Laos
Malaysia
Mongolia
Mozambique Myanmar Niger
North Macedonia Pakistan Poland
3 1
3 0
0 1
13
2
10
3
0
1
67
3
57
2
2
0
169 1
12 1 1 5 5 1 1 1 1 2
2
0 2 0 0 2 3 1 0 1 1 0
0 0 0
0 0 1
2 1
11
0
0
0
0
0
2
27
139
133
36
1
0
0
0
1
5 1 0 3 2 0 1 0 0 0
5 0 0 0 1 0 0 0 0 0 0 1
1
3
2
62
0
0
5 0 0 0 0 0 0 0 0 1
9
0
3
2
1
0
1
0
0
1
0
1
1
1
Russia
69
29
17
10
13
29
39
South Africa
22
3
13
2
4
17
4
0
0
1
1
Serbia
Turkey
Ukraine
United Kingdom United States Uzbekistan Venezuela
Zimbabwe TOTAL
2 5 1 1
14
2 2 2
465
2 1 0 1 1 2 0
71
0
0
0
3
0
1
1
0
0
6 1 0 0
150
0 5 0 0 0
66
2 0 0 2
178
0
2
0
18
0
0
0
0
0
0
5
0
5
0
0
2
1
0
0
3
1
4
1
1
1
4
0 0 0 0 0 0 0 0 0 0 0 1 0
1
0 1 0 0 0 0 0 0 0 0 0 0 0 8 0
0
5
0
0
1
1
0
0
0
0
9
5
1
1
2
0
1
1
328
130
0 0 0 0 0
6
0 0 0 0 1
33
Source: Global Coal Mine Tracker, Globalenergymonitor.org
still needed, and freight forwarders are doing their best effort to fulfil this need. Integral Chile participates in different projects – some inside the country, and some with other countries as origins or destinations.” Last year Integral Chile participated mainly in industrial and construction projects, he said. “But in our domestic division, we have customers that are mining companies and other important suppliers of the sector, such as equipment or machinery, or certification companies that send time-critical samples to laboratories.”
MAKING COPPER CONTACTS The copper industry can be difficult to access direct as mining companies often have their own freight forwarders or freight contract rates, Izqeuierdo noted. Integral Chile usually participates by working with other cargoes related with the industry. “For example, we have recently moved 22-tonne power transformers and 5-tonne water pumps, both in the north of Chile and regarding mining sites. We handle that kind of cargo on a more-or-less regular basis.” Government proposals to raise
royalties on copper sales are still up in the air, but Izquierdo said regardless of whether this new tax regime starts or not, the mining industry is so important to Chile that it would not stop. “Some mining companies may try to be more cost-efficient and that’s where we enter. Not to offer lower prices, but to provide a betterover-peers service, so projects can be fulfilled in a very reliable way. After all, logistics and transport companies are a very important component of the value chain within this industry,” he said. www.breakbulk.com
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IMPACT OF RUSSIA’S INVASION
The disruption from the Russian invasion of Ukraine on metals supply is a less-than-welcome obstacle for the energy transition, said Robert Berg, market intelligence and finance manager at Wallenius Wilhelmsen. “Global exports of mining machines shot up, although it could help accelerate the push for lowcarbon alternatives, for example through the EU’s highly ambitious RePowerEU plan. “In terms of mining machinery, we expect low-emission equipment to play an increasingly important role, albeit gradually. There are lots of exciting developments in this area at the moment, but we do not expect this to be a material factor in terms of demand until the back half of this decade.” Berg said 2021 represented yet another all-time high in demand for coal, driven by China, but also by a
strong rebound in demand in the U.S. and the EU due to the high electricity prices. “While coal’s share of the global power mix is down from the peak, alternative energy sources are just not able to keep up with the strong growth in energy demand. One would think that the pledges to reach net zero emissions should have strong implications for coal (including China), but for now the latest forecast from the IEA puts demand on track for a continued climb through 2024. And with Europe now scrambling to find alternative sources to Russia, surging prices make further investments for coal miners increasingly attractive – despite the obvious uncertainty surrounding the longerterm demand outlook – as illustrated by the recent capacity expansions approved in China.”
Integral Chile, celebrating its 30th anniversary this year, has five branch offices/sites in Chile and is looking to open more. “For this year, we are evaluating local expansion in some locations within Chile and one of them is precisely to foster miningrelated projects and cargo,” Izquierdo said. “This means a significant investment in facilities, personnel, vehicles and other equipment. Also, even though we already belong to several freight forwarder networks, we are investing in some more memberships in 2022 and at least one of them is exclusively project cargo oriented.” As to expectations for the coming years, WW’s Berg said: “Trying to say something about the more distant future is a challenge at the best of times and now perhaps more so than ever with the world throwing one exogenous shock after another at us. “Still, we certainly believe that the environmental agenda will be a strong driver for the mining industry going forward. Not only on the
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CARGO LENS
demand side for metals, but also for the miners themselves, as illustrated by the ambitious climate targets being laid out by mining majors. The energy transition dictated by COP26 will require vast quantities of key enabling metals due to the material intensity in low-emission alternatives for both power generation and vehicles.” This, however, will require significant investments from miners, “and we know that the industry has been very prudent in its capital allocation since the end of the super cycle,” Berg said. “We now see the needle moving on capex, but it will require commitment from the industry (and its investors) to develop the required mining and processing capacity in time.” BB Felicity Landon is an award-winning freelance journalist specializing in the ports, shipping, transport and logistics sectors.
On behalf of AAW Projects (Metso Outotec), WW Group recently supported the carriage of a ball mill plant from Italy into Queensland for a gold mine expansion project. CREDIT: WW
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EQUIPMENT
TAKING BACK CONTROL Heavy-Lift Specialists Laud Benefits of Synchronous Lifting
W
hen Ritchie Services was recently hired to handle a pressure vessel in a tight space onboard an offshore oil platform in the North Sea, the project team quickly ruled out deploying conventional lifting equipment. Instead, the UK-based heavy-lift specialist called into action its Enerpac SL60 gantry, a 60-tonne capacity hydraulic crane boasting four “legs,” header beams and an in-built IntelliLift wireless control system. Once the gantry was set up, it was shifted along skidding tracks and positioned to take the weight of the pressure vessel, with the operator controlling the lift to avoid overload. With the vessel hoisted off the ground, the project team used cold cutting techniques to remove its feet for easy loading and shipping. “As this was a live, offshore platform, the need for controlled lifting 84 BREAKBULK MAGAZINE www.breakbulk.com
was paramount to ensure the security of the lift,” said Iain Ritchie, director of Ritchie Services. “The gantry system synchronizes the four lifting legs to within 14 millimeters of each other. This allows for a controlled lift and lower at the touch of a button and prevents jacks from becoming overloaded due to the header beams being out of alignment. Not only does this improve the stability of the system during lifting operations, but it also improves efficiency as the operator does not need to constantly adjust the individual jacks to ensure a level lift.” Synchronous lifting is becoming increasingly commonplace at project sites, with the electronically controlled systems being deployed to handle some of the world’s largest and most complex structures. The systems are often called into action when lifting heavy and oversized cargo in confined spaces with
BY SIMON WEST
limited access for cranes, such as factories or industrial plants, or when large-scale conventional lifting equipment is just too costly. The technology, which can include in-built computers that process and send to clients detailed, up-to-theminute information on operations, is typically used in sectors such as power, civil construction, automotive and aerospace.
FUSION PROJECT SUPPORT
In southern France, synchronous lifting techniques are helping to assemble giant components for the ITER prototype nuclear fusion project. Billed as one of the world’s most ambitious energy initiatives, the ITER experiment is designed to prove the feasibility of fusion – the nuclear reaction that powers the sun and the stars – as a large-scale sustainable source of energy. The project is slated to begin operations in 2025. MAY-JUNE 2022
EQUIPMENT
millimeter,” Jeremy Stubbs, commercial director at Enerpac, told Breakbulk. “If they were doing it with a dial test indicator or a pressure gauge, you would have to go out and look at each jacking position every minute or so and check everything is OK. The other thing you can do with a synchronous system is weighing – confirming design weights of structures. And we can do that with our synchronous lifting systems.”
LOAD LEVELING
Wagenborg Nedlift deploys synchronous hydraulic jacks to lift a concrete bridge deck. CREDIT: WAGENBORG NEDLIFT
Nine pre-installed hydraulic cylinders connected to Enerpac’s EVO synchronous lifting pump are scheduled to be mobilized in two years’ time to lift up an 11-meter-diameter, 320tonne circular poloidal magnet at the base of the ITER’s tokamak, the hulking structure that will eventually host the fusion reaction. The EVO pump, with its built-in warning and stop alarms to improve safety, will enable each of the nine lifting points to be monitored and controlled by a single operator, with real-time status updates sent to the client. “The benefit for the customer is that the operator gets a complete understanding of what is going on with their lift from a central control position at the best vantage point. They do not have to worry about non-uniformly distributed loads. The system automatically manages the operator’s instructions safely and efficiently, within controlled load and synchronicity parameters to within a fraction of a
Allelys, the UK-based haulage company that often deploys synchronous lifting for its projects, recently completed seven installations of the largest aluminum die cast machines in the UK. The components, including a fixed plate weighing 57 tonnes and a moving plate weighing 87 tonnes, were delivered from Europe on a multi-axle transport vehicle and offloaded inside the project site. Due to space restrictions in the production facility, Allelys used two hydraulic lifting gantries with integrated synchronous lifting and lowering technologies to carry out the move. A 450-tonne capacity lift and lock system was used to transship the plates from the transport vehicle onto a 6-axle self-propelled modular trailer, or SPMT. The pieces were then maneuvered through the facility’s gangways and stanchions to the second lift stage using a 900-tonne capacity gantry with side shift technology links for precise final positioning. Charlie Latham, head of tendering and business development at Allelys, said synchronous lifting is preferred over traditional jacking in situations where it is imperative the load remain level. “Traditional jacking operations where the load is jacked at opposing points in succession, or end for end, cannot guarantee this,” Latham said. “The system also offers more accurate placement of loads whereas end for end jacking may result in the load shifting during the operation. “It will apply less unwanted stresses to the load and therefore may be
declared the preferred method of handling by the manufacturer.” Another key advantage of synchronous lifting is footprint, Ritchie said, where large or heavy loads can be lifted by hardware that fits into the back of a van. “We have found this particularly useful within the modular construction sector. We use a 200-tonne capacity jacking system with our split flow pump to raise buildings weighing up to 100 tonnes to a height of one meter to allow for loading to transport,” he said. “The system and the required timbers fit on the back of a small wagon and negate the need to send large mobile cranes to site. We are also not limited by location and working radius, which can so often be a limiting factor for mobile cranes.” Michel de Jong, senior project manager at Wagenborg Nedlift, a subsidiary of Dutch maritime logistics group Royal Wagenborg, said synchronous lifting systems are deployed in more than half the projects involving the company. Last year Wagenborg Nedlift used eight electronically controlled hydraulic jacks to lift a 900-tonne concrete bridge deck onto SPMTs in Groningen. The preparation, installation of the jacks, transfer to SPMTs and driving to the final destination was completed in one week. “We use synchronous lifting when the customer asks for it,” de Jong said. “But also where the load is critical to the capacity of our system – when you are close to the limit you want to know what you are doing, and be able to control it. It is also used in situations where you have more than four lifting points. We can go up to 32 lifting points, and you can imagine it is hard to control that manually.”
CAPACITIES AND SYSTEMS IMPROVEMENT
The technology behind synchronous lifting is constantly evolving, with new systems being launched according to customer demands. Capacities are also rising – Wagenborg Nedlift can now lift up to 2,400 tonnes using synchronous and hydraulic lifting, de Jong said. www.breakbulk.com
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Enerpac’s EVO synchronized system handling the PF6 magnetic ring at the ITER fusion project. CREDIT: ENERPAC
Enerpac offloads a 1,300-tonne hydrocracker. CREDIT: ENERPAC
A split flow hydraulic pump in action in the UK. CREDIT: RITCHIE SERVICES
According to Latham, new feedback systems featuring a microprocessor control device that maintains cylinder stroke by throttling oil supplies is replacing older systems that relied on a separate pumping circuit to each jack with a multi-chamber pump. “The systems have already evolved to become less mechanical and more digital,” Latham said. “The design of the system has also improved. Traditionally they were solid structures that needed to be transported on low loaders or layover, but more recent models now have the ability to fold, meaning that they can be transported more efficiently on a Euroliner trailer.” The technology still has scope for improvement though. De Jong said more standardized products were needed to enable project teams to operate different types of systems, while Ritchie would like to see an improved range of sensors with wireless communication and the introduction of a controller for split flow pumps to allow the operator to move around and monitor the lift during operation. “So often the lift becomes a clutter of cables and hoses. The technology exists within the gantry system range but would be great if it could be applied across the whole product range,” he said. Enerpac’s Stubbs, meanwhile, pointed to growing customer demand for remote connectivity, monitoring and real-time uploads to project progress websites and clients’ enterprise resource planning systems. “Digitalization of project progress and machine status can be used to simplify communication, and improve operational efficiency and the equipment’s longevity,” the commercial director said. “We are also sometimes asked for remote offsite operation – but we do not want to put operations into the hands of somebody sat on a desk miles away when you are lifting hundreds or thousands of tonnes around. That is a stretch too far.” BB Colombia-based Simon West is a freelance journalist specializing in energy and biofuels news and market movements in the Americas.
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INLAND TRANSPORTATION
TAKING TO THE TRACKS Enhancing Eastern US Rail Freight Infrastructure BY LORI MUSSER
Fort Worth and Western Railroad. CREDIT: AMERICAN SHORT LINE AND REGIONAL RAILROAD ASSOCIATION
S
ome U.S. rail operators are all smiles. Society’s surging sustainability aspirations favor rail over truck, and new technology and supply chain strategies are unlocking benefits for customers. Add to that US$66 billion of new federal funding for rail infrastructure, and new freight projects, and customers, may be just around the corner. U.S. railroad infrastructure projects convey important socioeconomic benefits, but capital expenditures by railroads are rarely capacity projects; railroads typically report that more than three-quarters of their investment dollars are used simply to maintain a state of good repair. Railway economist Jim Blaze’s outlook for 2022-2023 rail capital 88 BREAKBULK MAGAZINE www.breakbulk.com
programs across North America, as published in his February 2022 Railway Age report, predicted average to above-average growth in railroad capital expenditure for bridges and key rail structures, with investments largely triggered by “aging of bridges and structures, plus some bottleneck fixes,” and, the prospect of joint passenger/freight rail funding largely related to the U.S. Bipartisan Infrastructure Law. Chuck Baker is president of the American Short Line and Regional Railroad Association, or ASLRRA. Referring to the new five-year funding for the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grant Program, he said: “We are over the moon about it. There is a
total of about US$1.3 billion available for short lines to compete for – four times what it has been in previous years.” Short line projects may also be eligible for other major transportation infrastructure grants. “Also, there is a new grade separation grant program with US$600-plus million per year guaranteed for five years,” Baker said. While rail Chuck Baker grant programs ASLRRA help, Baker said MAY-JUNE 2022
INLAND TRANSPORTATION
to Breakbulk there is more than US$12 billion in needed infrastructure upgrades, primarily because “a large chunk of short line track is not able to handle the 286,000-pound modern heavy freight rail car, and there are literally thousands of bridges that need to be rehabilitated and maintained.” The nation’s 600 short lines are mostly light density, rural, or first/ last mile facilities, often with spurs off Class 1 railroads, Baker said. Modernized short lines may be a major opportunity for breakbulk and project cargo shippers. “They are known for their white glove service, willingness to ‘go beyond,’ and for working with customers to grow business,” he said.
SHORT LINE OPTIMISM
Watco owns and operates a diverse network of short line railroads, terminals, ports and mechanical shops. Marc Massoglia,
senior vice president of sales for Watco Terminals and Ports, said: “Watco is excited about the funding opportunities available for our short line railroads and ports.” He said Watco has about five short line projects in the works, mostly focused on modernizing track infrastructure to handle 286,000-pound railcars. “This will meet customers’ expectations as well as build resiliency and efficiency into our lines while increasing safety,” Massoglia said to Breakbulk. Nicole Brewin is senior vice president of government and public affairs Nicole Brewin with the Washington, DC-based Railway Supply Institute trade association
Railway Supply Institute. She said that the Bipartisan Infrastructure Law secures historic investments in rail, modernizes key programs, preserves balanced regulations, and creates and maintains industry standards. “It represents the largest federal investment in our nation’s rail infrastructure in history,” Brewin said to Breakbulk. It will help U.S. rail entities “repair and replace aging fleets, rebuild core infrastructure, expand service, and improve safety and accessibility,” Brewin said. It also contains provisions to strengthen American competitiveness, improve supply chain security, and enhance safety. There are new restrictions on the foreign-stateowned content on freight cars, and the law “also re-establishes the One Federal Decision policy, which should expedite rail permitting. That’s critical for contractors, railroads and suppliers,” Brewin said.
Short Line and Regional Railroads of the U.S.
Source: Short Line Statistics 2014
Class II and III Railroads Others
Number of Class II Railroads 21 Number of Class III Railroads 539
Route-miles operated by Class II Railroads 10,335 Route-miles operated by Class III Railroads 32,776 www.breakbulk.com
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ACQUISITION ROUTE
Not all rail investments are construction projects. Railroads grow organically and through acquisition. In November 2019, for example, Class 1 operator CP announced the acquisition of CMQ, with about 481 miles of rail lines primarily in Quebec and Maine. That transaction extended CP’s reach into the Northeast U.S. and Atlantic Canada, giving customers seamless access to the deepwater ports of Searsport in Maine and Saint John in New Brunswick via Eastern Marine Railway Co. and New Brunswick Southern Railway. The CMQ deal provided CP with five short line connections, and access to 10 new transload locations. Now CP plans to invest up to US$90 million in upgrading CMQ’s infrastructure, a CP spokesperson said to Breakbulk. Rail infrastructure improvements are helping supply chains reduce carbon emissions. Baker said. “It is
a great environmental story – any given ton of freight that moves by rail versus truck reduces GHG emissions 75 percent. On average, railroads can move one ton of freight 480 miles on one gallon of diesel.” Customers want to deal with companies that use fuel efficiently, invest in emissions reductions and combat climate change. Norfolk Southern has been recognized for its green bond investments that help reduce supply chain emissions. Projects such as locomotive fuel efficiency improvements and investing in terminals to further promote the shift of freight from trucks to trains has led NS to a 7 percent improvement in fuel usage, saving 47 million gallons of fuel, and avoiding more than 470,000 tonnes of GHG in the last two years.
LEANING INTO SUPPLY CHAIN
Railroad investments are about having capacity in the right place, at
the right time. Delving more deeply into the supply chain has been a rail growth strategy. Watco, for example, is teaming up with Crowley to support the development of the U.S. offshore wind energy. The partners are creating a single-source terminal and supply chain management solution. Similarly, many railroads have invested in pop-up cargo yards that have been a successful solution to recent U.S. intermodal supply chain issues. The yards have also created value for breakbulk industries, if only to release the pressure on mixeduse port storage space. Some railroads’ logistics divisions even help companies that aren’t rail-served. Arthur Arthur Adams Adams, senior vice president of CSX
PLETHORA OF GRANTS AVAILABLE FOR RAIL FRIEGHT The U.S. Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grant Program aims to reduce congestion, improve short line and regional railroad infrastructure, relocate rail lines, enhance multimodal connections and facilitate connectivity. In 2021, the FRA announced US$362 million for projects that assist freight and passenger rail. In the funding announcement, FRA Deputy Administrator Amit Bose said: “CRISI is an opportunity to invest in safety and economic progress across the rail networks that support and connect America.” In the 2020 round of CRISI funding, selected eastern U.S. projects included: • US$47.6 million to the North Carolina DOT for the Southeast Corridor Acquisition Project (a right-of-way project along CSX’s lines that will, in part, improve freight capacity, reliability and resiliency on CSX’s A-Line). • US$16.9 million awarded to the Springfield Terminal Railway Co. for Pine Tree Corridor capacity and safety improvements (replacing about 75 miles of rail, upgrading crossings, and
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strengthening five bridges in central Maine). • US$13.67 million awarded to the Buckingham Branch Railroad Co. for corridor improvements between Charlottesville and Clifton Forge, Virginia (including 70 miles of new rail, 14 crossings, five railroad bridges, tunnel drainage and tunnel clearances). Most 2020 CRISI projects addressed safety, including: • US$2.3 million in Florida for dynamic envelope pavement markings in rural environs on crossings owned by CSX and South Central Florida Express. • US$2.5 million to rehabilitate rail in Maryland on the Chestertown freight line. • Nearly US$1.8 million to replace the 103-year-old East Mountain Road Bridge on the Pioneer Valley Railroad’s mainline in Massachusetts. • A US$13.1 million project in North Carolina along the Aberdeen, Carolina & Western Railway. • US$7.9 million in projects for rail telematics in Pennsylvania. • The US$4.6 New Hampshire Northcoast Railroad project.
• US$2.2 million Cumberland River Bridge rehabilitation and automation project in Tennessee by R.J. Corman Railroad Group. In late 2021, USDOT announced US$241 million in awards under the Port Infrastructure Development Program, including US$86 million for six railrelated projects. Morehead City, North Carolina’s Radio Island Rail Improvements Project was awarded about US$1.7 million to replace existing tracks to meet Class 1 track-safety standards. In July 2021, USDOT announced awards totalling US$905 million for 24 highway and rail projects of regional and national economic significance, in Infrastructure for Rebuilding America, or INFRA, discretionary grants. Palmetto Railways, a division of the South Carolina Department of Commerce, was awarded US$25.0 million to build about 22.7 miles of new track and related facilities to connect a commerce park to the CSX rail network, and the South Jersey Port Corp. was awarded US$9 million to rehabilitate a waterfront facility and refurbish its rail connection.
MAY-JUNE 2022
INLAND TRANSPORTATION
sales and marketing at CSX, said his company has specific targets in modal conversion: “We work with customers to get their entire supply chain.” CSX’s TRANSFLO division is a value-added services platform that includes transloading and warehousing and leverages CSX’s heavy investment in a network of more than 45 terminals and counting. “TRANSFLO gets us into dimensional freight, carload quantities. In Atlanta, we repurposed Brownfield space and built a destination transload facility. Freight that was trucked from the Pacific Northwest to Atlanta is now railed and trucked only the last mile into Atlanta,” Adams said. “Customers are truly reimaging their supply chain … government incentives have helped companies to think through their supply chains in that regard,” Adams said. He added CSX’s industrial development program even goes into a brown or greenfield site and does pre-engineering, sharing expertise and working with municipalities and others so customers “don’t have to strategize from ground zero.” “We are leaning in and making sure that we are agile and flexible to meet customer needs. That is going to make us the premier service,” Adams said. Rail technology investments are also helping unlock the power of Big Data, artificial intelligence, robotics and automation to add value for customers, enhance infrastructure maintenance and help rapidly address shifting market demands.
GROWTH MINDSET
Railroads in the eastern U.S. are investing broadly to best serve breakbulk, project cargo and other supply chains. While the cost of rail improvements, unlike roadway infrastructure, has been largely borne by the railroads themselves, there is some federal funding on the table to help. Nevertheless, the rail industry will continue to rely heavily on reinvesting revenues, and deploying strategic controls and technological advancements, as well as supply chain integration to position the industry for greater growth and enrich societal and environmental benefits.
“Customers are truly reimaging their supply chain … government incentives have helped companies to think through their supply chains in that regard.” – Arthur Adams , CSX
Wind turbine blades move by U.S. railroad. CREDIT: AMERICAN SHORT LINE AND REGIONAL RAILROAD ASSOCIATION
CSX Transportation is a Class I freight railroad operating 21,000 route miles in the eastern U.S. and parts of Canada. Tom Tisa, CSX head of business development, said that CSX has invested Tom Tisa heavily over the past several CSX years in projects designed to add capacity and serve breakbulk and project cargo customers more efficiently. A US$466 million expansion project will provide vertical clearance improvements at the Howard Street Tunnel and 21 other locations between Philadelphia and Baltimore. The 127-year-old tunnel is being reconstructed to add 18 inches of clearance for trains moving to and from the Port of Baltimore. Tisa said that the extra inches “will expand opportunities for shipping large dimensional cargo moving
through the Port of Baltimore, such as heavy machinery and power plant and alternative energy equipment.” He said that CSX is committed to continued capital investment in rail infrastructure to support increased capacity and more efficient service across its network for all customers, including breakbulk and project cargo shippers. “Our double-stack clearance projects … have specifically benefitted dimensional shipments, which can take advantage of new rail service lanes. Also, siding projects across the network support more efficient handling of train-meets and are benefitting commodity unit trains and dimensional loads moving through key corridors,” Tisa said. Regarding new business opportunities, “we are excited about handling large cargo loads related to alternative energy projects, which represent a promising source of business growth for CSX and the rail industry,” Tisa said to Breakbulk. BB Based in the U.S., Lori Musser is a veteran shipping industry writer. www.breakbulk.com
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EMERGING MARKETS
COUNTING ON INDIA’S CORRIDORS Trillion-dollar Program Promises Project Lift
BY THOMAS TIMLEN
I
n the government’s own words, the “National Industrial Corridor Development Programme (NICP) is India’s most ambitious infrastructure program aiming to develop new industrial cities as ‘Smart Cities’ and converging next-generation technologies across infrastructure sectors.” Officials have said that the project will provide integrated connectivity for the movement of people, goods and services from one mode of transport to another. It also aims to create “last-mile” infrastructure and reduce travel time for people and goods. Putting its money where its mouth is, the Indian government has dedicated US$1.4 trillion towards the completion of 11 industrial corridors
with 32 projects to be developed in four phases through 2025, promising project cargo moves for domestic and international movers and handlers for at least the next three years. However, where the funding will come from is not yet clear, as Prime Minister Narendra Modi has not specified how the government plans to raise the funds needed for the project. Despite that lack of specificity, historically India has been successful in obtaining assistance with the funding of infrastructure projects, as illustrated by Japan’s agreement to provide funds for the Mumbai-Ahmedabad High Speed Rail project. In March 2022 Modi announced that Japan had agreed to increase funding for the project by Yen5 trillion over the next five years. Phase one of the NICP is already
well underway while the subsequent phases are taking shape. On the sidelines, stakeholders in the project cargo transport sector have good reason for optimism.
MULTIMODAL DEVELOPMENT PLAN
India’s plans are aimed at regions in all corners of the country, which also call for projects with roads, railways and airports to keep them all connected. Logistics companies already engaged with project cargo transport in India could very well be moving cargoes related to projects that are part of the NICP without knowing it, as the tenders would focus on the items to be moved, with no need to indicate any relation to the related NICP project.
TOP: The Indian government has dedicated US$1.4 trillion towards the completion of 11 industrial corridors to be developed by 2025. CREDIT: SHUTTERSTOCK
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India’s energy sector has proven to be a consistent driver of demand for project cargo transport as well as heavy-lift operations. Mining activity, support of wind farm operations and the petroleum sectors have all drawn upon the services of project cargo carriers and heavy-lift providers, including heavy-lift air transport. Today’s attention is on India’s ambitions to comprehensively improve and expand its national infrastructure, initiatives that go far beyond the sole support of the energy sector to cover all aspects of commercial activity. While the energy sector remains a key factor, new initiatives are aimed at an ambitious infrastructure expansion and enhancement that will also involve highways, railways, airports and so-called “industrial corridors” within which electronics manufacturing, pharma facilities, mega food parks and agro-processing centers, electronics manufacturing clusters, textile clusters and corridors of clusters to accommodate defence goods and services. The maritime sector will also see cargo throughput volumes boosted as capacities at seaports and inland waterways are expanded. The expansion of ports and inland waterways also has the potential to boost project cargo transport as well as heavy-lift operations, as the construction itself will lead to demand for new port equipment including ever-larger, gantry cranes.
stakeholders, further easing compliance with regulatory requirements and securing tenders. The Gati Shakti platform has been designed to address past inefficiencies through institutionalizing holistic planning for stakeholders for major infrastructure projects. Instead of departments planning and designing separately in silos, the projects will be designed and executed with a common vision. This will incorporate the infrastructure schemes of various ministries and state governments like Bharatmala, Sagarmala, inland waterways, logistics centers and seaports. Economic Zones like textile clusters, pharmaceutical clusters, defense corridors, electronic parks, industrial corridors, fishing clusters, and agricultural zones will be covered to improve connectivity and make Indian businesses more competitive. It will also leverage technology extensively including spatial planning tools with Indian Space Research Organization imagery developed by the Bhaskaracharya National Institute for Space Applications and Geoinformatics. The infrastructure initiatives have also been wrapped up under the
NICP. The NICP identifies the specifics regarding the development of 11 industrial corridors that together involve 32 projects.
FINANCING NEEDED
While planning ambitious projects is one thing, seeing them come to fruition is another. Absent of adequate financing the prospects for completion would not be promising. India has so far committed US$1.4 trillion to the work found within the NICP program. There is also a degree of support from Chinese industry. A spokesperson for Sany, a Chinese manufacturer of construction equipment including excavators that already commands a significant share of the Indian market, sees the infrastructure initiatives as potential drivers for additional equipment demand. The increased volume of equipment such as excavators will, in turn, boost demand for project cargo transportation services. While Chinese equipment manufacturers welcome potential increases in sales volumes, the Chinese government has sought to provide financing for India’s infrastructure plans. Such offers have been on the table previously, however, political consequences
A Sany SY800 machine fitted with a ripper arm at Lignite Mines, Tadkeshwar, Gujarat. CREDIT: SANY GROUP
CONNECTIVITY IMPROVEMENTS PLANNED
In October 2021, Modi announced the launch of the National Master Plan for Multimodal Connectivity. Modi also explained that the related “Gati Shakti,” a new digital platform, will bring 16 ministries including railways and roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects. The number of projects involved make it easy to understand why a digital platform is needed to shore up planning and coordination. The digital platform is also open to industry www.breakbulk.com
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EMERGING MARKETS
Prime Minister Modi with Japan Prime Minister Kishida Fumio, at Hyderabad House, in New Delhi on March 19, 2022. CREDIT: OFFICE OF THE PRIME MINISTER
loom. When loans have previously been secured for India from the Asian Infrastructure Investment Bank – where China is a key stakeholder – Modi has faced criticism as the timing coincided with the deaths of Indian soldiers at the border during clashes with Chinese troops. How heavily geopolitical blowback will weigh on future financing decisions remains to be seen.
INDUSTRIAL CORRIDOR PROGRESS
The Delhi Mumbai Industrial Corridor (DMIC) is the first of the 11 industrial corridors being implemented wherein substantial progress has been made. Of the 10 projects within the DMIC, the four that are underway are: • Dholera Industrial City, Gujarat (22.5 square kilometers). • ShendraBidkin Industrial Area, Maharashtra (40 square kilometers). • Integrated Industrial Township, Greater Noida, Uttar Pradesh (745 acres). • The Integrated Industrial Township, VikramUdyogpuri, Ujjain, Madhya Pradesh (1100 acres). The main difference between industrial corridors and special economic zones, or SEZs, is that while industrial corridors are for the purpose of 94 BREAKBULK MAGAZINE www.breakbulk.com
industrial development and growth, SEZs are for the promotion of exports. Currently, there are more than 250 operational SEZs in India, whereas only 11 industrial corridors are envisaged. Freight corridors will be created to link the industrial corridors. For railways, the target by 2024-25 is to handle cargo of 1.6 billion tons from 1.21 billion tons in 2020, decongesting 51 percent of the railway network by completing additional lines and implementation of two Dedicated Freight Corridors (DFCs). Also, detailed project reports are to be prepared for 4,000 kilometers of East-West, North-South and East coasts DFCs to be built in the public-private partnership mode. In civil aviation, the target is to double the existing aviation footprint to a total of 220 airports, heliports and water aerodromes by 2025, which would require the construction of 109 additional facilities.
ACCESS FOR ALL
Modi announced the plans on India’s 75th independence day, saying: “From free cooking gas to health insurance schemes, the poor of the nation know the strength of the government schemes. These schemes have expanded
rapidly in recent times, but now we have to move toward saturation. “One hundred percent of villages should have roads, 100 percent of households should have a bank account, while 100 percent of eligible persons should get insurance, pension and housing schemes. We have to operate on a cent-per-cent mode. All manufacturers should target the global market. India should become the hub of global market.” Although the announcement was welcomed by many, some recalled how similar initiatives in the past had failed to meet their stated goals. Setbacks caused by Covid-19 that resulted with a recession last year have raised concerns, as do current geopolitical disruptions. India’s plans also look towards energy security and tying this to the pursuit of renewable energy. The recent announcement by the power transmission and distribution business of Larsen & Toubro is one example. Larsen & Toubro’s renewables division has won an order to construct a 245-megawatt solar power project in Rajasthan in northern India. This project alone will generate business for the transport of components and supplies to the construction site as well as to the related infrastructure required to connect it with India’s electrical grid, as well as access roads and other requirements. Ultimately the objective of the development of industrial corridors is to expand the industrial output, increase employment opportunities, provide better living and social facilities for the new and growing workforce by way of providing “plug and play” infrastructure at the plot level for industries. While the various goals of this objective are being pursued, it is likely that the dozens of related projects will present continued demand for project cargo transportation by sea, road, rail, and perhaps even by air. BB Thomas Timlen is a Singaporebased analyst, researcher, writer and spokesperson with 31 years of experience addressing the regulatory and operational issues that impact all sectors of the maritime industry. MAY-JUNE 2022
Breakbulk Events & Media’s biweekly BreakbulkONE newsletter keeps the industry connected between issues of Breakbulk. Here’s a selection of recent subscriber favorites.
DREWRY DAMPENS MPV OUTLOOK AMID CONFLICT
Offshore Wind Could Provide Timely Boost for Sector BY SIMON WEST
The conflict in Ukraine and new Covid-19 lockdowns in China have dampened the outlook for multipurpose shipping, maritime consultancy Drewry said during a webinar on the latest trends and outlook for the sector. Susan Oatway, senior analyst for multipurpose and breakbulk shipping at Drewry, said the conflict and a fresh wave of restrictions in Shanghai amid a surge in Covid-19 cases are leading to a “multitude of ripple effects” that impact the global economy and weaken demand. “When we last wrote our forecast report at the end of 2021, we described ourselves as ‘cautiously optimistic,’ ” Oatway said. “In the last three months – really in the last month – that has waned considerably. And it is all to do with the uncertainty in the market.” The analyst pointed to renewables and offshore wind in particular as sources of demand that could alleviate crunch issues. The Global Wind Energy Council has projected a 6.6 percent rise in wind power capacity over the next five years, driven partly by pledges made during COP26, but also growing global concerns on energy security that have been triggered by the conflict. “That is only going to push the world further towards seeking out those new energy sources, because of those concerns. And that is a positive for this sector, definitely,” Oatway said. (Data from the Drewry webinar is incorporated into an infographic in UpFront, page 10.)
DEMAND GROWTH TO SLOW According to Drewry, demand for dry cargo – made up of bulk, containerized and general cargo – bounced back in 2021 with a rise of 4.5 percent. Demand is expected to slow over the
next two years, but still at an average growth of 3.5 percent per year. “Much of the recovery we have seen over 2021 is more to do with the supply chain crunch in the competing sectors than it is with any significant volume increases. The multipurpose sector has benefited from the desperate search for space, which has resulted in cargoes that were previously containerized moving back into breakbulk vessels,” the analyst said. “We do expect that effect to weaken over the second half of this year and into 2023.” MPV freight rates meanwhile were likely to plateau over the first half of 2022, the analyst said. Supply chain turmoil has seen rates soar by 43 percent over the last year and by 78 percent since March 2020, according to Drewry. Its latest Multipurpose Time Charter Index fell by 0.2 percent month on month in March to US$11,170 per day. The weakening trend is likely to continue into April, with Drewry projecting a further fall to about US$11,100. “Russia’s invasion of Ukraine might not have a clear impact on multipurpose rates except perhaps in those short sea northern European markets,” Oatway said. “But the impact on global confidence, rising commodity prices and the competing sectors has definitely caused the recent rate rise to falter.” The analyst warned the sector continues to suffer from a lack of newbuild development and investment, with newbuilding slots at a premium as yards remain chock full of container tonnage.
In a story in Breakbulk’s MarchApril issue (“MPV Bull Run Nearing Plateau,” https://breakbulk.com/ Articles/mpv-bull-run-nearing-plateau), Oatway said that the sector witnessed very limited speculative ordering, with owners preferring to order to replace or build with a specific commodity or project contract in mind. “Although the short-term outlook remains weak, we do expect newbuilds to pick up marginally post-2023 when there is space available and also as the need for more eco-conscious vessels will become more pressing,” Oatway said. BBONE Susan Oatway will be participating in two sessions on May 18 at Breakbulk Europe, presenting “The MPV Fleet: Examining the Potential Shortfall,” and as a panelist for “Managing Rates and Capacity, What is ‘Normal’?”
www.breakbulk.com
BREAKBULK MAGAZINE 95
BREAKBULKONE
ALLELYS DOUBLES DOWN ON COMPLEX REACTOR MOVE Hauler Carries UK’s First-ever Girder Frame Convoy UK-based heavy haulage company Allelys used two of its specialist girder frames to transport a 150-tonne reactor and a 195-tonne transformer to an electrical substation in southeast England. The move was the first-ever double girder frame convoy deployed on UK roads, Allelys said. The heavy components were first carried by road from Stafford to Ellesmere Port in northwest England, loaded onto a specialist heavy-lift barge then shipped south to Shoreham Port. The reactor and transformer were removed from the vessel using roll-on, roll-off operations, then transported again by road using the two girder frame trailers in convoy to the
96 BREAKBULK MAGAZINE www.breakbulk.com
substation site close to the coastal town of Ninfield. To complete the move, an overbridge over the River Ouse had to be constructed and central reservations removed. Skilled drivers meanwhile had to navigate the narrow streets and turns of the nearby towns of Polegate and Bexhill. “This operation was extremely complex right from the start, involving several transportation stages and requiring a lot of technical operations to negotiate obstacles and structures on route,” said Zac Smout, project manager at Allelys. “There were many pinch points along the route that the transport team effectively managed. The level of engineering and planning involved
was evident through the successful execution of the project.” Girder frame trailers are designed to “cradle” very heavy components such as transformers, generators and turbines at a height just above ground level, with the cargo’s weight distributed evenly through the vehicle’s frame and axle lines. The trailers are commonly deployed to move cargo under low bridges, through tunnels and across weight sensitive surfaces. Allelys’ fleet of Goldhofer-manufactured trailers can carry loads ranging from 200 to 500 tonnes. BBONE Allelys will be exhibiting at Breakbulk Europe 2022, May 17-19 at the Rotterdam Ahoy Convention Center.
MAY-JUNE 2022
BREAKBULKONE Antonov loading a Turkish satellite for SpaceX delivery. CREDIT: ANTONOV AIRLINES
UKRAINE CRISIS SQUEEZES AIR FREIGHT CAPACITY Aircraft Diverted to Support Humanitarian Release Efforts BY SIMON WEST
The conflict in Ukraine is tightening air freight capacity, with airspace restrictions and a reduced pool of aircraft curtailing options for shippers. “Service cancellations and an increase in transit times are seeing available services at a maximum capacity as demand for space increases,” said Germany-based forwarder deugro, in a market update. Companies originating from Russia are barred from flying in European and North American airspace, while Ukraine-based carriers have suffered grounded fleets and, in some cases, loss of assets. Ukrainian project cargo specialist Antonov Airlines’ AN-225 “Mriya”, the world’s largest cargo aircraft, was destroyed during fighting between Russian and Ukrainian troops for control of Gostomel Airport outside the capital city Kyiv. The plane, the only one of its kind ever built, was undergoing maintenance at the time of the Russian attack. The whereabouts of the remainder of Antonov’s fleet including its seven AN-124s has not been confirmed by the company.
CAPACITY SQUEEZE
According to breakbulk specialist Dachser Air and Sea Logistics, global air
freight capacity has shrunk by about 20 percent since the outbreak of hostilities. The use of cargo transport aircraft to deliver relief supplies to victims of the conflict is further squeezing capacities. The number of refugees fleeing the violence in Ukraine has climbed to more than 4 million, prompting a steep rise in emergency airlifts organized by international aid organizations. “Short-term aircraft availability is becoming scarcer as demand is rising for urgent humanitarian charters in Europe,” deugro said. The use of commercial freight aircraft to deliver humanitarian and emergency medical provisions is commonplace. Antonov recently told Breakbulk it had been “heavily involved” during the pandemic in the transport of medical supplies such as PPE equipment from China to Europe and the U.S. “The cargo industry is going to have to move into yet another gear to help deal with increased demand and the smaller pool of aircraft now available,” said Ben Dinsdale, director of humanitarian services at aircraft charter company Air Charter Service, which began chartering flights with relief cargo for various aid organizations at the beginning of March. “In a market already struggling for available aircraft due to the well-
publicized supply chain issues gripping the world, we have mobilized our cargo team and emergency response procedures to ensure we can find solutions for all relief flights heading to the region.”
COSTS AND SURCHARGES
deugro meanwhile said the conflict was pushing up transit costs for shippers, who are being forced to re-route flights from Europe to Asia amid Russian-imposed airspace restrictions. Rising jet fuel prices are also increasing freight rates. Sanctions cutting Russian oil exports, which account for about 8 percent of global supply, are putting more pressure on crude prices, which touched a near 14-year high of US$130 per barrel in the first week of March. deugro also warned that some carriers could start imposing so-called War Risk Surcharges for cargo transported to and from Asia. “The overall market rates remain high and are spot rate driven making forecasting extremely difficult,” deugro said in its report. “Shippers on long term contracts will be affected by delays and cancelations, however the price and capacity commitments will still be locked in with the carriers. Negotiations for new long-term contracts are becoming increasingly difficult.” BBONE www.breakbulk.com
BREAKBULK MAGAZINE 97
BACK PAGE
EUROPEAN UNION ECONOMIC ACTIVITY 2020-2023 GDP FORECAST
Consensus Economics anticipates a retrenchment given inflation and the impact of the war in Ukraine, continuing into 2023. 2020
%
2021
2022*
2023*
INFLATION FORECAST
KI N G D O M UN IT ED
SW IT ZE RL AN D
SW ED EN
SP AI N
N O RW AY
N ET HE RL AN D S
ITA LY
G ER M AN Y
FR AN CE
BE LG IU M
8 6 4 2 0 -2 -4 -6 -8 -10 -12
While Consensus Economics noted forecasts were changing rapidly at Breakbulk’s press time, their forecasts for 2022 ratchet interests rates upward, but will moderate in 2023. %
KI N G D O M UN IT ED
SW IT ZE RL AN D
SW ED EN
SP AI N
N O RW AY
N ET HE RL AN D S
ITA LY
G ER M AN Y
FR AN CE
BE LG IU M
8 7 6 5 4 3 2 1 0 -1
CURRENT ACCOUNT FORECAST
KI N G D O M UN IT ED
SW IT ZE RL AN D
SW ED EN
SP AI N
N O RW AY
N ET HE RL AN D S
*Forecast
ITA LY
261.3
233.9
269.4
G ER M AN Y
FR AN CE
BE LG IU M
US$ BN 100 80 60 40 20 0 -20 -40 -60 -80 -100
292.7
Current account balances are the difference between a given nation’s imported and exported goods, services and transfers and are an indicator of foreign trade trends.
Source: Consensus Economics, www.consensuseconomics.com 98 BREAKBULK MAGAZINE www.breakbulk.com
MAY-JUNE 2022
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