Port of Rotterdam’s Danny Levenswaard on How Music and Breakbulk Have Shaped His Successful Career
THE EUROPE ISSUE
Energy Special Energy a ‘Bright Spot’ in Project Pipeline Bottlenecks Challenge European Wind Ambitions Europe’s Energy Security Shake-up
+ Reshaping the Future of Work
Air Cargoes Taxi to Sustainability Take-off
Complications of Freight Rate Comparisons
Tightening of Sustainability Rules to Influence Contracting Choices
Cover
Story
“Pressure?
I Love It!”
Credit: Sif Netherlands b.v.
56
34 Energy Energy Markets Endure Tumultuous Times Multi-fuel Project Pipeline Reveals Resilience
38 Energy Europe’s Energy Security Shake-up Bloc Moves Fast to Vary Fuel Suppliers
Your Calendars for Upcoming Breakbulk Events
Rotterdam Ahoy, Netherlands
Breakbulk Americas 26-28 September 2023
George R. Brown Convention Center, USA
Breakbulk Middle East 12-13 February 2024
Dubai World Trade Centre, UAE
40 Air Cargo Air Cargoes Taxi to Sustainability Lift-off Counting the Cost of an Enhanced Environmental Focus
48 Recruitment Human Capital a Critical Factor Rotterdam Breakbulk Specialists Share Experiences and Insights about the Labor Market
52 Outlook Energy a ‘Bright Spot’ in Project Pipeline But Long Equipment Lead Times and Delays Hit Projects
56 Energy Bottlenecks Challenge European Wind Ambitions
Urgent Need for Cargo-carrying Assets and Standardization
60 Ports Labor Issues Loom on Port Horizon Congestion Eases, But Staff Still in Short Supply
Port of Rotterdam’s Danny Levenswaard on how Music and Breakbulk have Shaped his Successful Career
64 Contracts Complications of Freight Rate Comparisons Are Difficulties of an Industry-led Index Insurmountable?
67 Emissions Project Movers in Emissions Reporting Sights Tightening of Sustainability Rules to Influence Contracting Choices
72 Recruitment Reshaping the Future of Work Hybrid Working and AI Among New Workplace Trends
75 Oil and Gas Oil and Gas Project Recovery Not a Sure Thing Lack of Medium-term Lease Program Makes Planning Difficult
79 Renewables Clean Hydrogen Joins US Transition Team Demand for Fuel Facilities Expected to Soar
82 Singapore Singapore Plants its Project Cargo Stake City-State Enjoys Domestic and Regional Growth
85 Middle East Middle East Ready for Fuel Evolution Increased Post-Pandemic Project Activity in O&G, Fossil-free Fuels
88 Africa
Unlocking Mauritania’s Future Fuel Potential
African Nation Poised to Embrace Hydrogenpowered Future
91 Energy
African Gas: Boon or Bane? Finance Needed to Ensure Viability of Projects
To our friends and colleagues from around the world. Spring has sprung and we’re heading into my favorite time of year, one that has little to do with warmer days and everything to do with Breakbulk Europe. If you’re here onsite at Rotterdam Ahoy, welcome, and if you’re reading from afar, we have plenty of interesting content inside this issue to give you a taste of the conversations happening at the event.
Before we dive into the highlights of this issue, did you notice a difference with this publication? Breakbulk Events & Media has gone through a portfoliowide makeover to better reflect the characteristics of the project cargo and breakbulk industry — those that make it such a unique place to work. After a battery of surveys and questionnaires, the brand signature was easy to articulate: Breakbulk does it bigger; bigger projects and bigger cargoes across the world, and a bigger sense of dedication and innovation from employees in all sectors than you’ll see anywhere else. We dedicate this new look to you.
From a new dramatic headline font to a more modern body text, the Breakbulk brand is big and bold. Look closer and you’ll notice the “L” in Breakbulk sports a nice curve, a nod to waterborne transport. You’ll see the wave theme everywhere from towering onsite event graphics to the redesigned pages of the magazine’s UpFront section.
UpFront includes lots of great advice from Breakbulk Europe speakers, shippers and exhibitors on how to get the most out of the event. Try Networking Tips, Ask Me Anything, Career Advice from Women in Breakbulk, and the second part of Meet the New Exhibitors, following last issue’s profiles.
If you’re returning to Rotterdam this year, you likely know the man on the cover, but I’ll bet you didn’t know about his years spent as a professional saxophone player. How could being a musician apply to becoming the leader of breakbulk at Europe’s biggest port? Find out on page 30.
Project opportunities abound in this issue. For a global view, read Energy Markets Endure Tumultuous Times and Energy a ‘Bright Spot’ in Project Pipeline. Regional stories include Europe’s Energy Security Shake-up, Clean Hydrogen Joins US Transition Team, Singapore Plants Its Project Cargo Stake, and Middle East Ready for Fuel Evolution.
In addition, there are several must-read articles that could change the way you do business. See Project Movers in Emissions Reporting Sites and Reshaping the Future of Work, along with a quick read on AI and ChatGPT found in the UpFront section.
As spring turns to summer, we invite you to become a bigger part of the Breakbulk family. We’re on this journey together and look forward to your feedback and ideas about what you’d like to see in future issues. Don’t hesitate to drop me an email.
Best,
Leslie Meredith Marketing and Editorial Director Breakbulk Events & Media Leslie.Meredith@breakbulk.comMarketing and Editorial Director
Leslie Meredith / +1 (801) 201-5971
Leslie.Meredith@breakbulk.com
News Editor
Carly Fields carly.fields@breakbulk.com
Senior Reporter Simon West
simon.west@breakbulk.com
Designer Mark Clubb
Reporters
Asma Ali Zain
John Bensalhia
Jeremy Bowden
Neil Campbell
Iain MacIntyre
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
Jessica Dawnay
Jessica.Dawnay@breakbulk.com
To advertise in Breakbulk Media products, visit: http://breakbulk.com/page/advertise
Subscriptions
To subscribe, go to https://breakbulk.com/page/ breakbulk-magazine
A publication of Hyve Group plc.
The Studios, 2 Kingdom Street
Paddington, London W2 6JG, UK
In our “Reshaping the Future of Work” feature story on pages 72-74, Sven Hermann, managing director of ProLog Innovation, looks at how artificial intelligence is being deployed by HR professionals in the recruitment process. Sven will also be moderating the “Planning for the Future of Project Logistics” panel session at Breakbulk Europe, a deep dive into some of the most pressing challenges that project professionals can expect to encounter in the coming years. The not-to-be-missed session will take place on Wednesday 7 June at 1:20pm.
Also in this issue, Neil Golding, director of market intelligence at the Energy Industries Council, speaks to Breakbulk about supply chain constraints in our “Energy Markets Endure Tumultuous Times” feature story on pages 34-37. In Rotterdam, Neil will be presenting a Global Project Outlook –an in-depth overview of the current and upcoming major project developments in Europe and worldwide. His session is scheduled for Thursday 8 at 12:00pm.
Thomas Sender Mehl, senior vice president of global supply chain at CakeBoxx Technologies, is the facilitator of a new work group set up at last year’s Breakbulk Europe event to explore options for standardizing shipping equipment. You can read about the group in our “Bottlenecks Challenge European Wind Ambitions” story on pages 56-58. Thomas is also appearing on the “Managing the Offshore Wind Boom” panel session on the main stage at Breakbulk Europe on Wednesday 7 June at 2:20pm.
Thomas Skellingsted, president and global head of 4D Supply Chain Consulting, provides some valuable insight on mandatory Scope 3 emissions reporting in our feature story, “Project Movers in Emissions Reporting Sights” on pages 67-70
Thomas will be part of a group of industry professionals at an Industry Meet and Greet at Breakbulk Europe Education Day on Thursday 7 June between 1:30pm and 2:30pm. The session is a brilliant opportunity for our invited students to speak directly to professionals from across the supply chain about a career in breakbulk and project logistics.
Port of Rotterdam: “Danny Levenswaard profile”, pages 30-33; “Europe’s Energy Security Shake-Up”, pages 38-39: “Human Capital a Critical Factor”, pages 48-51
Mediterranean Shipping Company (MSC): “Air Cargoes Taxi to Sustainability Lift-Off”, pages 40-42
Bertling Logistics: “Supporting the Semi-Conductor Surge”, pages 44-46
CMA CGM: “Supporting the Semi-Conductor Surge”, pages 44-46
Rhenus Logistics: “Human Capital a Critical Factor”, pages 48-51
C. Steinweg Group: “Human Capital a Critical Factor”, pages 48-51
AAL Shipping: “Energy, a Bright Spot in Project Pipeline”, pages 52-55; “Labour Issues Loom on Project Horizon”, pages 60-63; “Reshaping the Future of Work”, pages 72-74; “Singapore Plants its Project Cargo Stake”, pages 82-84
Mammoet: “Bottlenecks Challenge European Wind Ambitions”, pages 56-58
Maersk: “Project Movers in Emissions Reporting Sights”, pages 67-70: “Reshaping the Future of Work”, pages 72-74
deugro: “Project Movers in Emissions Reporting Sights”, pages 67-70
Geodis Freight Forwarding: “Reshaping the Future of Work”, pages 72-74
Port Houston: “Oil and Gas Project Recovery Not a Sure Thing”, pages 75-78
Port of Corpus Christi: “Clean Hydrogen Joins US Transition Team”, pages 79-81
Asyad Group: “Middle East Ready for Fuel Revolution”, pages 85-87
DSV: “African gas: Boon or Bane?”, pages 91-93
ADNOC: “Middle East Ready for Fuel Revolution”, pages 85-87
Petrofac: “Middle East Ready for Fuel Revolution”, pages 85-87
Larsen & Toubro: “Middle East Ready for Fuel Revolution”, pages 85-87
Technip Energies: “Middle East Ready for Fuel Revolution”, pages 85-87
Saipem: “Middle East Ready for Fuel Revolution”, pages 85-87
ExxonMobil: “Middle East Ready for Fuel Revolution”, pages 85-87
Neste: “Air Cargoes Taxi to Sustainability Lift-Off”, pages 40-42 Air Liquide: “Supporting the Semi-Conductor Surge”, pages 44-46
SIF: “Bottlenecks Challenge European Wind Ambitions”, pages 56-58
LM Wind Power: “Bottlenecks Challenge European Wind Ambitions”, pages 56-58
Fluor: “Complications of Freight Rate Comparisons”, pages 64-66
Energy Transition
Photo Contest
Top 5 Winners
New Exhibitors at Breakbulk Europe
Networking Tips
Movers & Shakers
Women in Breakbulk
Summer Holiday Gift Guide
Artificial Intelligence, or AI, tools are becoming more mainstream today, and an increasing number of professionals such as designers, engineers and manufacturers are looking at ways to incorporate various AI-driven technologies into their workflows.
Automation technology using AI can be programmed to complete logical processes for a particular business. With the already large array of technological applications and programmes that businesses use, what makes AI technology the next best thing? Firstly, AI technology is flexible. It can be used by many industries in their own unique way, such as aiding them in data mining, targeted marketing or constructing precision-based financial models.
AI today can be found in markets such as medical equipment manufacturers, construction equipment producers, tech and engineering firms for industrial cargo, aerospace and automotive, mining precincts, utilities, oil and gas. Not only is the technology flexible in its implementation, but in what it is compatible with. This technology can work with diverse business applications, and structured or unstructured data.
ChatGPT is the latest technology driven by AI that uses natural language processing. It leverages deep learning algorithms to enable users to converse with chatbots. What has captured the attention of designers and engineers is that it is an advanced system that can understand complex questions and provide very accurate answers, almost immediately.
Because it was developed with conversational AI capabilities, it can immediately comprehend user queries and generate natural-sounding responses that are tailored to the conversation context. It also has built-in memory capability that stores information from past conversations to better respond to subsequent messages.
However, engineers for industrial cargo are also realizing that many projects throughout vertical industries require more than just the development of text and responding to prompts.
That is why these professionals are combining the powers of AI tools along with other progressive technologies like mixed immersive reality (augmented reality and virtual reality). They are building AI-models like ChatGPT to help create virtual worlds in the metaverse to run simulations and increase productivity/efficiency metrics.
More specifically, AI tools like ChatGPT and the metaverse can help create a 3D environment that replicates the real world, and the data used can be harnessed for analysis, running simulations and interacting with data more efficiently.
AI tools such as ChatGPT will also play a leading role in helping to create code and the language used in the development of digital twins – the virtual world where people, consumers, workers all gather to communicate, collaborate and share through a virtual presence on any device.
This means companies will build immersive virtual spaces, and it will allow employees to virtually collaborate using their digital twin through chats, emails, video calls and even face-to-face meetings.
The following are other examples how AI tools such as ChatGPT will benefit designers, engineers and manufacturers:
Automation Support. Engineers will have proximity to leading technology that supports automation processes and reduces time spent on manual tasks.
Task Planning and Management. Technology like ChatGPT can improve the process by enabling an intuitive platform for task planning and management.
Knowledge Sharing. Engineers and their teams will be able to increase collaboration and efficiency in the workplace since tools like ChatGPT allow for streamlined knowledge.
Error Detection. The use of natural language processing will now be leveraged to visualize errors in text-based data faster than ever before, critical in code review, error analysis, or debugging.
Security and privacy. Technologies like AR/VR leveraging leading AI tools are better equipped to handle security and privacy related to digital twins.
Dijam Panigrahi is co-founder and COO of GridRaster Inc., a leading provider of cloud-based AR/VR platforms that power compelling high-quality AR/VR experiences on mobile devices for enterprises.
Arnaud Garcia, Business Development Manager
France
Stand 1J50
What is the most interesting thing about your business?
As an IoT company, the most interesting part of our business is enhancing our client’s business operations by collecting and analyzing reliable and actionable data. Everyone at ADVEEZ is involved in connecting real-life, real machines doing real actions, with our high-value cloud-based solutions, and this supports our clients in their day-to-day operations. Our hardware solutions are designed and assembled by our teams in France and our software is also fully developed by us - that is also a point that can make our solutions very interesting (as well as secure). Thanks to this, we are proud to affirm that we master all the steps between data collection and data visualization through our platform, from A to Z.
Why exhibit at Breakbulk Europe?
We have been successful in the airport sector working to enhance ground support equipment in the past 11 years, and we wanted to diversify our activities. We believe that the seaport industry globally, breakbulk included, has a lot of opportunities to improve decarbonization and optimization to make this sector more efficient. Data is the key to doing so, and ADVEEZ is persuaded that our leading position in airports paves the way to make things in the port terminal industry. Airport and seaport industries are very similar at a certain point, with the same challenges of being efficient, fast, and reliable. Why choose Breakbulk Europe? This is the major event to attend, and we know we will have a great show with all the feedback we had!
What is your company’s outlook on project opportunities in Europe at the moment?
Our perspectives concerning Europe opportunities is to find projects with clients having a real issue of data capture and to take the opportunity to develop new features, specific to the breakbulk industry, for our platform. Every opportunity is interesting after all, and we would be happy to help any client if we know we are the most competent to answer.
Valeria Ihnatenko, Marketing and PR Specialist
Ukraine
Air Transport Stand 2L54-M55
What is the most interesting thing about your business?
ANTONOV Airlines is the air transport division of ANTONOV Company. We operate five AN-124-100 Ruslan, the largest transport aircraft in the world. In March 2022, ANTONOV`s AN-225 Mriya - which was the only aircraft larger than Ruslan - was destroyed during battles in Hostomel airport (the homebase of ANTONOV fleet). ANTONOV Airlines became the biggest operator of AN-124-100 aircraft and the only option for transporting oversized and super-heavy cargoes.
Why exhibit at Breakbulk Europe?
ANTONOV participated in other events before the pandemic and the Russia-Ukraine war. So, this event is important for us to renew our participation this year, to meet partners and customers face-to-face, and to discuss everything happening in the coming year.
What is your company’s outlook on project opportunities in Europe at the moment?
Positive as usual! We continue operating around the world. From Europe to the U.S., Canada, Africa, South America and any other routes our customers required.
Rob Bateman, Managing Director
United Kingdom
Industry-related Services
Stand 2C70
What is the most interesting thing about your business?
The opportunities to embrace digitalization, automation, and AI in our sector are incredibly interesting now. As a Group we have embraced digitalization
and have created a new division called Casper Digital, whose objective is to assist us in adopting the emerging technology that is coming to market in the upcoming years. Our innovation team is already using some of this cuttingedge technology to develop our own digital products including Flytta. This comprehensive end-to-end customs automation tool is designed to make trade across Europe and the rest of the world fast, accurate, and compliant.
Why exhibit at Breakbulk Europe?
After previous visits to Breakbulk Europe and being particularly impressed during 2022, we investigated the possibility of exhibiting in 2023.
Due to Casper Group’s growth and enhanced focus around all aspects of transportation of breakbulk cargoes within Europe, this appears to be an excellent opportunity to showcase our company’s capabilities and meet with new and existing clients at this event. As such, the group will be represented at the event by senior management from the Shipping, Chartering, Logistics, Customs and Port Agency divisions.
What is your company’s outlook on project opportunities in Europe at the moment?
Casper Chartering Limited and the Group in general has a positive outlook on project opportunities in Europe, particularly over the next 24 months. Our outlook has enabled us to continue with a strong investment strategy, growing our infrastructure and capabilities to put us in a strong position to offer our clients enhanced solutions for all their project logistics requirements.
Neale Proctor, Group Sales & Commercial Director
Ghana
Freight Forwarder Stand 1N14
What is the most interesting thing about your business?
No two days are the same. Dealing with challenges becomes a daily routine where problem-solving becomes a top priority.
Why exhibit at Breakbulk Europe?
It’s an opportunity to showcase our services and to re-assure companies unfamiliar with the continent there is huge market of over 1.4 billion people to tap into and they should not have any concerns about doing business there.
What is your company’s outlook on project opportunities in Europe at the moment?
We do not operate in Europe, but project opportunities in Africa are abundant for companies who take the time to understand the market and choose the right partners to work with.
Vichy Lang, Head of Project & Chartering Department
China
Freight Forwarder Stand 2M21
What is the most interesting thing about your business?
As a professional industrial project logistics service provider, we are solution and cost-efficiency oriented. We are committed to supporting decarbonization and delivering sustainable innovative logistics solutions to our customers. By consolidating global windmill resources, we provide seamless end-to-end logistics services to our project clients.
Why exhibit at Breakbulk Europe?
We are very glad to be exhibiting at Breakbulk Europe. Our purpose is to enrich lives by connecting our customers and communities around the world. We are dedicated to building long-term sustainable partnerships with our customers.
What is your company’s outlook on project opportunities in Europe at the moment?
We are looking forward to finding reliable clients/suppliers worldwide.
Norvic Shipping USA Inc.
Kasper Bihlet, Senior Chartering Manager
United States
Maritime Shipping Stand 2M56
What is the most interesting thing about your business?
No day is the same, you never know what will happen, there is always a new challenge around the corner.
Why exhibit at Breakbulk Europe?
We want to increase our footprint carrying more breakbulk and project cargoes to complement our existing fleet and business of about 150 vessels.
What is your company’s outlook on project opportunities in Europe at the moment?
We see a lot of requests for windmill equipment and business potential for breakbulk and project cargo out of especially the Mediterranean to the U.S./Caribbean.
United Kingdom
Stand 1N21
What is the most interesting thing about your business?
One of the most interesting things about Sedna is how we are challenging and changing the status quo when it comes to email, elevating its profile - especially for the maritime and broader supply chain industry which has long relied on this workhorse, the backbone of their communications as they move cargoes around the world.
Why exhibit at Breakbulk Europe?
Breakbulk Europe is a really valuable and globally important platform to network, meet new people joining the sector, share tips, ideas and developments, and stay abreast of the latest trends and technologies.
I was fortunate to speak at Breakbulk Americas last September and followed that by attending Breakbulk Middle East in February. Both reiterated how valuable these conferences are.
Finally, the supporting events and activities, like Women in Breakbulk, are particularly important to highlight. It’s so important to have this space and time to consider our achievements, for example, within gender diversity in the sector and what more we still need to do.
What is your company’s outlook on project opportunities in Europe at the moment?
Many European countries are continuing to shape and reshape their surroundings and push forward on new initiatives like the green energy drive, which includes the decommissioning of large energy projects like the North Sea oil and gas production, and the increase of European factories manufacturing electric transport vehicles and their components. As such, the maritime sector is using its powers to deliver essential breakbulk materials to make the region into a renewable generation powerhouse.
Digital tools will be essential to drive these project cargo activities forward. This is where Sedna fits in. Breakbulk companies already using Sedna, like AAL, BBC and Nova Marine, report Sedna has allowed them to repurpose time previously consumed by admin to more productive endeavors; directing incoming queries to the right set of eyes more quickly, allowing users the time to think and be creative on their first offers - resulting in more fixtures and higher first win rates.
57 Countries Represented
Breakbulk Events & Media reached out to speakers and moderators of Breakbulk Europe 2023 Main Stage sessions and asked them what thought-provoking questions they would like to be asked during the Q&A portion of their sessions, or when networking on the show floor.
Moderator: Managing the Offshore Wind Boom, Wednesday June 7, 14:20 - 15:05
How do you establish partnerships across the value chain to support more efficient collaboration with the benefits of shorter lead time, decreased costs and/or stronger innovation by utilizing the strengths of each company?
Moderator: ESG Across the Supply Chain, Thursday June 8, 13:45 - 14:30
What are the more challenging aspects of formulating an ESG strategy to get it right?
Is ESG more of a moral case and doing the right thing or a requirement?
What are three things corporations can do to stay ahead of the curve with ESG?
Betina Holst Nørgaard, senior manager, Deloitte Consulting Denmark Gina Panayiotou, founder & CEO, Oceans ArenaLars Greiner, vice president Middle East and Africa, associate partner, HPC Hamburg Port Consulting
Moderator: The Role of European Ports in Supply Chain Efficiency: Challenges, Opportunities & Demand, Thursday June 8, 11:00 - 11:45
How do you see digitalization and automation moving into multipurpose terminals affecting breakbulk shipping?
Łukasz Chwalczuk, board member, ESTA Europe Association; managing director, Kancelaria Prawna Iuridica; president, OSPTN board
Speaker: Nuclear Power Projects in Europe: Infrastructure, Feasibility and Collaboration, Wednesday June 7, 12:20 - 13:05
How does collaboration among stakeholders impact the success of nuclear power projects, and what challenges need to be overcome in this process?
What infrastructure is required to support nuclear power projects, and how can this be validated for feasibility?
What role can local communities play in nuclear power projects, and how can their concerns be addressed?
What are some of the risks associated with nuclear power projects, and how can they be mitigated effectively?
Nick Lurkin, senior adviser climate & environment, Royal Association of Netherlands’ Shipowners (KVNR)
Moderator: Measuring and Pricing C02 Emissions, Thursday June 8, 12:45 - 13:30
What are the latest developments in carbon pricing for shipping?
What is the impact of the EU Emissions Trading System (ETS) for shipowners?
Will the EU ETS accelerate decarbonization for shipping?
Sven Hermann, managing director, Prolog Innovation
Moderator: Planning for the Future of Project Logistics, Wednesday June 7, 13:20 - 14:05
Which chatbot skills have Breakbulk Europe panelists already discovered to optimize their daily work?
What three wishes would industry representatives make to improve their work with logistics providers in the near future?
How is each panelist promoting sustainability within their own company?
Networking for new business is the common denominator for Breakbulk Europe participants: meet the right people and as many of them as possible. Faced with thousands of people across two halls at Rotterdam Ahoy, efficiency is key.
We asked seasoned exhibitors and speakers, “What advice would you give a first-time visitor to Breakbulk Europe?” See the responses of industry leaders as they share their tips for making the most of your time at Breakbulk Europe.
John Pittalis, marketing & communications manager, AAL Shipping (AAL) Maritime Transport Stand 2A10-B11
“The first piece of advice that I would give to anyone attending Breakbulk Europe for the first time is this: study the exhibitors list and plan your journey around the floor to ensure that you get face time with all your target contacts. Due to the congestion of people at the event, your time with these contacts will be limited, so collect those business cards and follow up at the earliest possible opportunity after the show! Make sure also to attend networking and social events happening around Breakbulk Europe where delegates and exhibitors are more relaxed and open to discussion.”
Andy Tite, vice president, global business development and commercial director industrial projects, DHL Industrial Projects Freight Forwarder Stand 2A30-B31
“Having attended many Breakbulk events over the years while representing different organizations in various roles, my biggest advice for any first-time attendee is to do your homework on who will be there and who is most important for you to meet. The Breakbulk website provides a great insight to this with the floor plan of exhibitors, agendas and panel members all available well in advance of the event.
When you are physically there, the other piece of advice is to take your time; stop and talk to people, whether they are existing or potential clients, subcontractors or peers in the industry. We remain a people orientated industry and it’s a great event to expand your network and knowledge. Finally, don’t drink too heavily on the first night, it’s a marathon not a sprint.”
“Research companies and individuals you’re interested in meeting – then find them! Don’t be shy. Reach out and introduce yourself. Take the incredible opportunity to meet people in person, attend the educational panels and learn something new. Be sure to follow up after the event with the people you meet to truly build your network.”
“Make a list with countries where you would like to develop new business. Once you have identified these countries go to the exhibitor list country by country and select the exhibitor you wish to visit. Contact the exhibitors and make an appointment. After you have made your appointments mark the location of the companies you are going to visit on the floor plan. Calculate enough time for each visit. Usually the third day (June 8) is less busy to walk the floor. Get prepared for your visits and make a list of questions you would like to ask. Check out and visit also exhibitors with whom you don’t have an appointment yet.”
“Plan your meetings in advance but be prepared to adjust and improvise. It’s also important to stay open-minded and embrace spontaneous opportunities to meet new contacts on the spot.”
Ports & Terminals
“We have the whole team coming over–probably more people than we need! We’ve split coverage to the wet side, the dry side and breakbulk, so conquering and dividing. We’re going through the exhibitor list to identify who we want to see, and we’re using social media to promote our presence and the products that we have. Our team is incredibly excited: they won’t be in the stand looking at each other, they’ll be out on the floor shaking hands, exchanging business cards and trying to get business.”
Pavel Kuznetsov, head of air chartering, deugro Switzerland Freight Forwarder Stand 2F20-G21
Stephen Spoljaric, corporate manager of global logistics, Bechtel Corporation Breakbulk Global Shipper Network: EPC
“Visit Breakbulk Boulevard, June 6 at 1930 hrs at Schiedamse Vest. It’s the best way to start networking at Breakbulk Europe!”
Danny Levenswaard, director breakbulk, Port of Rotterdam Authority
Stands 2B10-C11 +2B02 + 2C10 + 2B20-C21 + 2C20 + 2D21
Luzius Haffter, executive director, Global Project Logistics Network (GPLN) Association Stand 1A20
Energy services provider Halliburton has promoted Shannon Slocum to the role of president, eastern hemisphere, following the retirement of Joe Rainey. Slocum has held various executive positions since joining Halliburton in 2005, most recently as senior vice president for global business development and marketing.
“Shannon brings a track record of success to his new position, most recently leading our global business development efforts. He knows our business, has worked with our key customers throughout the eastern hemisphere, and is an excellent leader,” said CEO Jeff Miller. U.S.-based Halliburton is a member of the Breakbulk Global Shipper Network.
Tschudi Logistics has brought in Lars Sander as the company’s new head of projects and logistics. The executive will be based at Tschudi’s Danish office at Balticagade near the port of Aarhus. Sander joins the Norway-based forwarder after more than 15 years at DSV Global Transport and Logistics, where most recently he was a project manager based in Aarhus.
“I will be responsible for managing multimodal project logistics, providing innovative solutions to customers, and working closely with the rest of the Tschudi team to deliver exceptional service. I am confident that my experience and skills will help me succeed in this new position and make a positive impact for our customers,” Sander said.
Florian Braun has been named new chief operating office at Rhenus Air and Ocean, a division of the Germanybased Rhenus Group. Braun takes over from Jan Harnisch, who has become CEO of Rhenus Air and Ocean.
Braun has nearly 20 years of experience in global logistics, enjoying executive stints with DHL Global Forwarding, DB Schenker and, most recently, digital freight forwarder Flexport. Braun said he would like to “encourage innovations, efficiency and growth” at the company. “I’m delighted to start working for such a dynamic and forward-looking company and make my contribution towards its ongoing success,” he added.
Dutch offshore wind foundation maker Sif has named Monique van den Boogaard as the company’s new director of projects. “I am a professional with a mission. I have a helicopter view and I proved to be able get things done together with my team. In addition, I am a manager with a ‘hands on’ attitude, managing expectations without losing contact with reality,” said van den Boogaard.
Sif announced earlier this year that it would be investing some €328 million to build the world’s largest monopile foundation manufacturing plant in Rotterdam. The plant will be installed at the company’s existing Maasvlakte II site, with construction slated to begin in April.
Vishal Bedi, a seasoned technology and business process leader with more than 25 years of experience, has been appointed chief information officer at JAS Worldwide. Bedi, who will report directly to JAS Global President and CEO Marco Rebuffi, was previously CIO and head of BPO at DHL Global Forwarding Americas.
“We are delighted to welcome Vishal Bedi to the JAS team,” Rebuffi said. “His extensive background will strengthen our commitment to deliver even more innovative customer-centric solutions, enhancing our already industry-leading logistics services.”
Lars Sander
Vishal Bedi
Shannon Slocum
Florian Braun
As part of our ongoing initiative to support women in the industry, here we share advice from several Breakbulk Europe participants. Be inspired and add your voice to the conversation by joining the Women in Breakbulk Europe network at europe.breakbulk.com/page/womenin-breakbulk-europe-edition
Katherine Phillips, managing director, ABL
Speaker: Managing the Offshore Wind Boom Wednesday, June 7, 14:20 - 15:05
Be yourself; don’t change who you are at work. Keeping up a mask is very draining in the long term and can mean that you don’t form bonds with colleagues. Not being your true self at work can become a real disadvantage as you get more senior.
When I took over Intermarine, almost 10 years ago, I knew nothing about the job, in a world full of men staring at me and having technical difficulties. In the beginning I was afraid of speaking, making the wrong decisions and not knowing what I was talking about. I decided to take small steps from the bottom, directly on the field, looking and listening. As time passed, I gained respect, got closer to my collaborators and learned technical aspects.
Most decisions can be taken only by keeping your mind clear, using good common sense, and never being afraid of making mistakes. Nobody is perfect.
Speaker: ESG Across the Supply Chain Thursday, June 8, 13:45 - 14:30
My advice is to never ignore advice. Don’t exclude anything or any source because other — and even opposite — opinions can have merit. So, be open to that input and hear it out. Regardless of what you do or whom you work for, seeking different opinions gives you a better chance of making the decision that is right for you. You will know that your decision is well assessed because you explored different views. No one can take away that confidence.
I have worked for more than 10 years either with or in the shipping industry and have regularly heard that it is not always an industry that is easy to access for women. But I believe that image is wrong. It is so dynamic that both women and men can find the right career path based on their field of interest.
So, my advice to women in this industry would be to listen to all well-intended advice, assess it, read, learn and draw your own conclusions. Find your own way. If you want to work in shipping, don’t let anyone tell you that it has nothing to offer you, be aware of your talents, and then go claim your space!
My motto (I found it once in an Italian Chocolate ‘Baci’) is, “When everything seems to be going against you, remember that the airplane takes off against the wind, not with it,” Henry Ford
Women In Breakbulk Breakfast
Wednesday, 7 June, 8:45 - 9:45
Dock 1, Rotterdam Ahoy (by invitation only)
WISTA Members’ Coffee
Wednesday, 7 June, 10:00 - 11:00
Dock 1, Rotterdam Ahoy
Main Stage Session: Women in Breakbulk: Building Confidence at Every Level
Wednesday, 7 June, 15:20 - 15:55
Main Stage, Hall 1, Rotterdam Ahoy
Gudrun Janssens, manager intergovernmental relations, EU, BIMCOMaking great things even greater in the city and port of Rotterdam, and generating both sustainable and economic value - those are the ambitions of Karin van de Braak, marketing communications manager at the Port of Rotterdam Authority, and Arjanne Hoogstad, marketing and communications manager at Rotterdam Partners. Working with their partners in Rotterdam, they are putting events and innovations in Rotterdam on the global map. Now Breakbulk Europe is on the horizon, the breakbulk sector is center stage, with the branding to match: Bigger. Better. Breakbulk. Make it happen.
The two managers get on well, and that shows in what they are accomplishing together. “We brought Breakbulk Europe to Rotterdam in 2022,” Karin said. “It was a joint effort with Rotterdam Partners, Rotterdam Ahoy and the
City of Rotterdam. And it was one of the Port Authority’s goals: Breakbulk Europe is the largest breakbulk fair in the world and so it dovetails with our ambition to be the best breakbulk port. To bring the fair to Rotterdam, we presented Rotterdam’s unique selling points. One of those is the strong connection between the city and the port. Rotterdam is a unique experience for visitors, precisely because they can visit both our city and our port outside the traditional trade fair environment.”
A successful example here is Breakbulk Boulevard, an initiative of the Port of Rotterdam Authority and Rotterdam Partners in cooperation with the Rotterdam hospitality sector, the Rotterdam Breakbulk Community, the Rotterdam Port Promotion Council and, last but not least, Hyve, the organizer of Breakbulk Europe.
After Breakbulk Europe opens in Ahoy, Breakbulk Boulevard will kick off in a trendy location: Schiedamse Vest, a street in the heart of the city center. The fair visitors can reach the venue quickly and easily by public transport. For the occasion, the Schiedamse Vest will be transformed into a restrictedaccess food square and renamed Breakbulk Boulevard for the duration. The hospitality companies located here will serve special drinks and dishes, promoting culinary Rotterdam with its large number of diverse cafés and restaurants. Karin emphasized that Breakbulk Boulevard is a great networking
opportunity that will also be attended by the breakbulk community from the port of Rotterdam.
“It will also be a great stepping-stone for the visitors to explore the city’s nightlife,” Arjanne said. “Obviously, we are hoping that Breakbulk Boulevard visitors will fall in love with our city and return as tourists, possibly with their families, relatives or friends.” To make things even easier for fair visitors, the Rotterdam partners have produced a special visitor guide with all sorts of tips from locals about Rotterdam. The guide can be found on the Breakbulk Europe website, and it will also be handed out during the fair.
More than 1,000 Breakbulk Europe visitors registered for this unique networking event last year. “So things were nice and busy. The number of visitors exceeded our expectations. Of course, it was the first event after the pandemic. The location was special, and the weather was lovely,” Karin said. “It felt like a festival. There was a diverse crowd, and the atmosphere was great,” Arjanne added. “Together, we established a genuine connection between the city, the port, and the event.” Breakbulk Boulevard was such a success that Breakbulk Europe visitors can sign up for Breakbulk Boulevard again this year.
In addition to exploring the city, visitors can also go to the port. “We are organizing a free cruise: visitors can sign up for it when they register for Breakbulk Europe,” Karin said. “It is an opportunity to see the grandeur and dynamism of the port for themselves. They shouldn’t miss it!” This year, 300 participants will be able to join the boat tour.
When asked about the trends that affect their work and the breakbulk industry, Karin said “sustainability is essential for the port and city of Rotterdam but also for the breakbulk industry. That is reflected in the event conference sessions this year.” Arjanne added: “This also means that different sectors need to work together to be future-resilient and innovative. We need to be open to people who think differently, collaborate better, and join forces to work on issues together.”
“And we mustn’t forget the job market,’ Karin said. “Because it is difficult to find people with the skills needed given the challenges of digitalization and the energy transition. And that applies to breakbulk as well. So this is a major theme for the Breakbulk Europe Education Day and in the new Breakbulk Futures area on the show floor.”
For Arjanne, every Breakbulk Europe visitor should take a trip on the water taxi before they leave Rotterdam. On
King’s Day (the sovereign’s official birthday), even our King uses this cool boat. Karin also takes time to praise the Boijmans Van Beuningen Depot in Museum Park: “You should definitely pay a visit and look in the mirror, where you will see the Rotterdam skyline. It’s a wonderful sight!”
“You shouldn’t miss Katendrecht either,” Arjanne said. “This is where you find the beating heart of the port. The Stadshaven Brewery is also worth a visit.” Their list of suggestions is apparently endless, but they prefer to refer people to the visitor guide for the very best tips. Even so, Karin has one final idea: “From June 6 onwards, we hope people will come and see us at our stand in Hall 2 of Ahoy, where we will be present with about thirty breakbulk companies from Rotterdam. And of course, we look forward to seeing everyone at the drinks event at our stand on 7 June.”
Karin van de Braak
Hobbies: cooking, travel, hiking and tennis
Why are you a fan of the city and port of Rotterdam?
The city has the greatest skyline and it is always changing.
Arjanne Hoogstad
Hobbies: Walking through the city with the dogs, and travel (especially city trips). I also invest in Rotterdam in my leisure time in all kinds of clubs and networks.Why are you a fan of the city and port of Rotterdam? I love the city because of the mentality of the people: hard workers, straightforward and outward-looking. The New Waterway and the port allow us to maintain that world-oriented perspective. Literally and figuratively!
The Breakbulk Community aims to connect companies in the Rotterdam port and to further cooperation, knowledge sharing and business in these segments to strengthen the position of the port of Rotterdam and create value for breakbulk companies by organizing network meetings, knowledge sessions and company visits. But visits to trade fairs and participation at those fairs are also on the agenda. The community is facilitated by the Port of Rotterdam Authority and the Rotterdam Port Promotion Council.
Get ready for the summer season with these fun items, perfect for travelers whether it’s down the road or across the globe!
Belkin Secure Holder with Carabiner for AirTag $19.95 (each)
The Belkin Secure Holder with Carabiner features an innovative Snap and Lock design that keeps your AirTag safely inside. www.apple.com
Apple - AirTag 4 pack $99
With AirTag, keeping track of your belongings has never been simpler. By attaching one to your luggage and placing another in your backpack, you can instantly locate them on your radar within the Find My app. www.apple.com
Polaroid Now Generation 2 i-Type Instant Camera $119
This analog instant camera boasts autofocus, selftimer, and double exposure features, all in a classic design that now uses 40% recycled materials!
www.polaroid.com
Kindle Paperwhite Signature Edition (32 GB) With a 6.8” display, – Denim - $144 Whether you’re relaxing on the beach or exploring a new city, this is the ultimate travel companion for book lovers. www.amazon.com/kindlepaperwhite-Signature
Susan Bijl – The New Shopping Bag in Concept & Fluo Yellow LARGE €31,90
A simple yet iconic design with tremendous volume. The bag folds easily because of its thin material, making it the perfect bag to carry with you.
www.susanbijl.nl
Jellycat Stuffed Animals - $16.50-$110
Jellycat’s make the perfect companion for younger travelers. Choose from a wide range of animals in various sizes.
www.jellycat.com
Bose SoundLink Revolve II Bluetooth® Speaker - $219
The SoundLink Revolve II is the latest and greatest portable Bluetooth speaker that delivers exceptional performance. With a true 360° sound!
www.bose.com
Ray-Ban – Mega Clubmaster – $174
Just released this year in time for summer, the Mega Clubmaster is a bold new spin on the classic Clubmaster design. www.ray-ban.com
Baboon To The Moon – Go Bag: Small in Azure Blue $199
This versatile bag can accommodate 3 to 5 days’ worth of clothing and can serve as a carry-on when traveling, making it ideal for extended weekend getaways, beach excursions, and road trips.
www.baboontothemoon.com
Ooni Karu 12 Multi-Fuel Pizza Oven - $299
Opting for a staycation? Perfect for entertaining outside during the summer months, the Ooni Karu 12 cooks authentic wood-fired, stone-baked pizza in any outdoor space in just 60 seconds.
www.ooni.com
Sponsored by
As the energy mix around the world transitions into a cleaner, greener future, project cargoes are changing too. In the annual photo contest, 58 companies shared their photos of today’s energy transports. By popular vote, here are the top five.
Unloading wind blades from a ship in Romania to be delivered by barge to Serbia. Visit them at Breakbulk Europe, Stand 2G14
Rotra Vente delivers the first turbine parts for Hollandse Kust Noord in Eemshaven, Germany. Visit them at Breakbulk Europe, Stand 2F20-G21
FIfth Place
Transfer of wind turbines at Port Atlantique La Rochelle. Operation carried out on the ship Innovation, thanks to the maritime operator AMLP of the Maritime Kuhn Group. Visit them at Breakbulk Europe, Stand 1J21
Goldhofer AG
Transportes Montejo delivers wind power components to Ecuador’s largest wind farm with GOLDHOFER FTV.
Visit them at Breakbulk Europe, Stand 1E21-F20
Chipolbrok
Herbert carrying wind blades from China to Sweden
Visit them at Breakbulk Europe, Stand 2F40-G41
Profile
“PRESSURE? I LOVE IT! ”
I
t would be tough drawing too many parallels between a career in logistics and the world of music, but for Danny Levenswaard, director breakbulk at the Port of Rotterdam Authority, his 12-year stint as a professional saxophonist taught him some invaluable lessons. Learning to handle the long hours, tight schedules, and constant travelling – part and parcel of being a member of a successful touringband – prepared him well for his future role heading up an entire division at Europe’s busiest deepwater port.
AT BREAKBULK EUROPE…
“Sometimes you’d arrive home at six in the morning after doing some gigs, but then you’d need to be up on your feet again at noon to go to your first performance,” Levenswaard said. “So those types of dynamics have always been in my life, and to be honest, I love it. I always try to have focus on what needs to be done at a certain moment. You always need to make choices of what to pick up first.”
Levenswaard joined the Port of Rotterdam Authority in 1992 – after more than a decade touring Europe and playing in front of packed music venues, and with the pressure of having a young family to support, he was eager for what he called a “more regular life.” A short spell in human resources was followed by a switch to commercial operations, first as business development manager, then senior
business manager for bulk and shipping. He has been in his current role since early 2016, overseeing the commercial development of project cargo, heavylift, forest products, vehicles, steel and non-ferrous metals, port and maritime services, agro-food and warehousing. The job of managing the region’s most versatile breakbulk hub is a demanding one – roll-on, roll-off and general cargo throughput tops 30 million tonnes every year – and Levenswaard is grateful for a nine-strong team of talented business managers running the day-to-day operations of each business segment. The importance of teamwork is another lesson learned from his days in the band.
deal with nine different personalities, but I think I’m good at it, because I’m sincerely interested in people and how to utilize their capabilities within the team. Maybe I’m good at it because I enjoy it!”
Levenswaard’s three decades at the port have coincided with a transformation not just of the port itself, which in recent years has emerged as one of the world’s foremost green energy hubs, but of Rotterdam as well, which back in the day was “a city for work, not a city to live in,” he said.
“That has changed tremendously over the last 20 to 30 years. The city has become more vibrant, more open, more dynamic. It is not a city just to work in anymore, it has also become a city to love,” he said.
“YOU ALWAYS NEED TO FIND A MUTUAL GAIN ... AND OF COURSE, YOU NEED TO BE SINCERE.”
“In my former role, I was responsible for attracting cruise lines to the city. When I started that job, we had two cruise calls per year. Now, we have 120.”
Alongside its green energy ambitions that include plans to supply some 4.6 million tonnes of clean hydrogen per year to European industry by the end of the decade, Rotterdam is also focussed on maintaining its position as the region’s leading agrofood centre and operational base for food production and logistics companies. As part of these plans, the port is developing the Rotterdam Food Hub on a 60-hectare site near the Maasvlakte industrial zone.
It was there that Levenswaard said was one of his proudest achievements
– luring UK-based drinks giant Innocent to build an all-electric, carbon-neutral factory to produce its juices and smoothies. Dubbed “the blender” the factory was the first to move to the Food Hub, and once fully operational, it will have the capacity to produce 400 million bottles per year.
“It was an important deal to get the Food Hub started,” Levenswaard said. “Together with my business manager in agro-food, the two of us were able to attract this client to the Port of Rotterdam. And with our technical team as well, we managed to do the job. And they made a huge investment in the port – like E250 million. That was a big one!”
They say negotiation is rooted
in respect, a maxim with which Levenswaard can identify: “I always try to find out what drives the other party, to understand what they find important to get out of a deal, so you understand their position. Then you can act or react to that. You always need to find a mutual gain, something you should always look for. And of course, you need to be sincere.”
Danny Levenswaard is a member of the Breakbulk Europe Advisory Board, a group of industry professionals brought together to help shape the program for this year’s event, taking place on June 6-8 at Rotterdam Ahoy.
Colombia-based Simon West is senior reporter for Breakbulk
By Neil Campbell
Ayear on from Russia’s invasion of Ukraine and energy markets seem to have weathered a volatile situation — a “global energy crisis” says the International Energy Agency — to establish a new normal, albeit a delicate one. But they remain vulnerable to cross currents of political tension, an unpredictable global economy, and erratic demand.
Crude prices, which spiked to over US$120 per barrel after the invasion, have eased to around US$70-80 per barrel for U.S. marker West Texas Intermediate, amid ample stocks and still-tepid demand.
And gas prices, which threatened even more volatility given Europe’s reliance on Russian supplies, have settled from a peak of €340 per MWh to €40/MWh for Dutch marker TTF. A mild winter and increased liquefied natural gas imports, chiefly from the U.S., left Continental markets with ample gas in storage as winter ended, easing supply fears for this summer at least. Demand destruction was also a factor, with OECD European consumption in 2022 down by 70 billion cubic meters, or bcm, nearly 15 percent, on the year. But “the global gas balance is
fragile and a number of uncertainties in 2023 exist,” cautioned the IEA.
In oil, the IEA expected demand to bounce back and “accelerate sharply” in 2023, to reach a record 102 million barrels per day. Oanda senior market analyst Craig Erlam saw potential for prices rising in tandem, saying “if most countries avoid recession, then coupled with a strong Chinese recovery, we could see prices rally from here,” but noted that there is “immense uncertainty around the economic outlook.”
Erlam saw potential for OPEC+ countries to meet recovering demand, having trimmed output by 2 million
barrels per day last year: “There’s certainly scope for it to meet additional demand, but that ultimately depends on how strong that demand is.” The IEA sees enough output for the first half of the year as OPEC+ production bounces back and U.S. and Canadian output recovers from winter storms, but warned that the market could be tighter in the second half as Chinese demand and seasonal trends boost demand to record levels.
The IEA’s outlook for gas is for a slight decline in 2023, with OECD Europe seeing a fall of 3 percent as consumption by the gas-fired power sector is displaced by greater renewable and nuclear power output. The agency saw U.S. gas demand easing by around 5 percent in 2023, but Asian demand rising by 3 percent on recovering Chinese demand. For gas supply, the great unknown is how much gas will come into Europe from Russia. Exports to Europe from Russia fell by 50 percent in 2022, putting “unprecedented pressure” on both European and global gas markets, the IEA said. Falls were even greater
in Q422, at nearly 70 percent. LNG supply offset lower Russian volumes in 2022, along with a sharp fall in consumption by energy-intensive users and power generators. Russian flows to Europe over the next few years are impossible to predict — they could even drop to zero. One bank analyst told Breakbulk he expected a “cold war” in energy relations with Russia, with volumes taking years to recover, and probably only partially at best.
Despite the upheaval of global energy markets and the threat of recession in 2022, investment remained robust. The industry saw upstream oil and gas spending rise to just under US$500 billion, up nearly 40 percent on 2021, said a report by the International Energy Forum, or IEF, and S&P. This was partly driven by higher costs, but activity such as drilling was also up.
The IEF/S&P report stressed, however, that investment needs to rise further to meet supply needs and avoid a shortfall that would risk higher energy prices and endanger security of supply. It said investment of US$4.9 trillion will be needed by 2030 to match demand, or US$640 billion per year by 2030.
Oil and gas companies certainly have funds. High energy prices generated bumper profits last year – and the issue now is moving from availability of capital to allocation of capital. Shell and BP earned US$40 billion and US$28 billion in 2022 respectively, for example, but were outstripped by state-owned oil company Saudi Aramco, which made net profits of US$161 billion, up from US$121 billion in 2021.
Aramco has increased capital expenditure in energy projects accordingly, by 18 percent to US$36 billion. The firm said: “Given that we anticipate oil and gas will remain essential for the foreseeable future, the risks of underinvestment in our industry are real — including contributing to higher energy prices.” Saudi Aramco said it is investing in extra oil, gas and chemical production, but also US$1.5 billion in new lower carbon technologies. It expected to invest US$45-55 billion this year and increase capex until mid-decade.
Key investments including increasing productivity at existing fields, the completion of the Hawiyah Unayzah gas storage reservoir, and investments
Wednesday 07 June
12:20 - 13:05
Wednesday 07 June
14:20 - 15:05
Global Project Review
Thursday 08 June
12:00 - 12:30
in refinery and petrochemical projects in China and Saudi Arabia. The firm also began construction on its US$7 billion Shaheen petrochemical plant in South Korea through subsidiary S-Oil.
But oil and gas were not the only projects. With the Saudi energy ministry, Aramco also announced plans to build one of the world’s largest carbon capture and storage hubs at Jubail on the east coast of Saudi Arabia, with partners Linde and Schlumberger. When complete in 2027, it will be able to store 9 million tons per year of carbon dioxide, and the country eventually aims to capture 44 million tons per year by 2035. The kingdom is also boosting spending on renewables as it targets generating half of its electricity from green sources by end-decade. It is spending US$9bn on 13 renewable energy projects with total capacity of 11.4 GW.
Elsewhere in the Middle East, Qatar is embarking on the LNG industry’s largest ever project — the North Field Expansion, which will cost up to US$50 billion. This will see production
While oil and gas investment appear robust, most observers believe fossil fuel consumption will peak towards enddecade as the world grapples with the energy “trilemma” – balancing security of supply, affordable energy costs and cutting emissions. Investment in renewables, energy efficiency and low emission projects is central to the final part of that equation.
Clean energy investment is trending up — but not fast enough. The International Renewable Energy Agency, or IRENA, said there was investment of US$1.3 trillion last year in energy transition technologies, up by half since 2019. Renewable energy accounted for US$0.5 trillion of that, although IRENA said that is only 40 percent of the annual investment needed to counter global warming. “Annual additions of renewable power capacity must grow by three times the current level by 2030 if we want to stay on a pathway limiting global warming to 1.5°C,” said Irena Director-General Francesco La Camera.
Renewable capacity rose by just under 10 percent in 2022 to 3,372 GW by year-end, IRENA said, of which hydropower has the largest share. But in capacity additions, solar and wind power dominate, accounting for 90 percent of additions in 2022 – of which 191 GW was solar and 75 GW wind.
Additions are concentrated in a few areas, with Asia accounting for nearly half of the 295 GW added in 2022, and China alone 141 GW. Europe’s capacity was up by 57.3 GW and the U.S.’ by 29.1 GW. South American capacity was up by 18.2 GW and the Middle East by 3.2 GW. The glaring omission is sub-Saharan Africa, where per capita renewable investment is 1 percent of other regions.
Offshore wind is set for particularly rapid growth. Analyst McKinsey sees
EMEA capacity rising from 25 GW in 2020 to 100-120 GW in 2030 and up to 320 GW by 2050, while Asia-Pacific capacity could rise from 11 GW in 2020 to as much as 120 GW in 2030 and up to 820 GW by 2050. The U.S. is starting at a low level, but President Biden in 2021 called for 30 GW to be installed by 2030, later adding the ambition of 15 GW of floating wind power by 2035.
Floating wind power is a potential game-changer. It enables wind farms to be located in much deeper waters than turbines with bottomfixed foundations, and McKinsey said the technology increases the area suitable for wind power fivefold. Other technological developments include the pairing of wind power with hydrogen production, and a rise in turbine size from 8 MW in 2020 to 13-15 MW by 2024. At the same time, costs are falling, McKinsey said, from €150/ MWh in 2015 to a third of that in 2024.
Nuclear energy has also received a boost from COP26, with innovation taking the form of modular nuclear reactors of 250-500 MW each. Energy Industries Council Director of Market Intelligence, Neil Golding said: “Potentially even before the end of this decade we could see the first small modular reactors in Europe in place,” with the U.S., and Canada in particular, also looking at ramping up this sector.
But increasing non-fossil fuel capacity, while vital, faces considerable challenges. Golding said the issue is going to be “can the supply chain deliver on all these projects that are coming through?” He said there are supply constraints and pinch points, with [wind power] turbine manufacturing being one of them. “We have the ambition; now how do we get there — how do we scale up?”
from Qatar rise by two-thirds from its current 77 million tons per annum (mtpa) to 110 mtpa by 2025 in a first phase — the US$28.75 billion North Field East (NFEast) project, which includes four mega-trains of 8 mtpa each alongside carbon capture to reduce emissions. State-owned Qatargas has a 75 percent stake in NFEast and will partner with Shell, ExxonMobil, TotalEnergies and Eni in this stage.
Qatari LNG output will then increase to 126 mtpa by 2027 on completion of the second, North Field South (NFS) LNG project, which centers on two mega trains. Although this is still pre-Final Investment Decision (FID), the decision is expected in the first half of the year. Qatargas will hold 75 percent in NFS, with partners TotalEnergies, Shell and ConocoPhillips.
Alongside Qatar’s North Field Expansion in the first half, ADNOC’s Fujairah LNG in the UAE could reach FID in the second half of 2023, WoodMac said. This would add 9.6 mtpa of output to the country’s existing 6 mtpa plant at Das Island, with production set to start in 2027.
Global LNG output is set for a wave of FIDs in 2023-24, said WoodMac, after around 28 mtpa of liquefaction projects reached that stage last year. Some 200 mtpa of capacity is seeking FID, which with capacity costing around US$10 billion per 10 mtpa of output suggests investment of US$200 billion.
The U.S. also has several mega LNG projects that have just reached or are nearing FID as they have gained offtake commitments sufficient to raise debt.
Key U.S. developments are Sempra’s 13 mtpa Port Arthur LNG facility in Texas, which Sempra said on March 6 had reached FID for its first US$13 billion phase. This will involve two 6.5mtpa LNG trains and two LNG storage tanks, plus related facilities. The trains are due on stream in 2027-8. Some 10.5 mtpa of the total 13 mtpa
already has offtake commitments. Sempra said it is also “actively marketing and developing” a second phase of the same size. Another U.S. LNG mega project to reach FID in March was the second phase of Venture Global’s Plaquemines $21bn LNG export project in Louisiana, which will produce 20 mtpa once on stream.
The U.S. is also forging ahead with a mega project in the oil sector, not without controversy. President Biden in March approved ConocoPhillips’ $8bn Willow development on Alaska’s North Slope, which will produce 576 million barrels of oil over 30 years. Environmentalists have dubbed the project “a carbon bomb.”
Other key oil investments include TotalEnergies’ $10bn Lake Albert project in Uganda, which reached FID last February and involves development of the Tilenga and Kingfisher upstream projects in Uganda and the 1,400 kilometer
Qatar’s US$28.75 billion North Field East (NFEast) project includes four mega-trains of 8 mtpa each alongside carbon capture to reduce emissions.
Credit: TotalEnergies
East African Crude Oil Pipeline in Uganda and Tanzania. Output of up to 230,000 barrels per day is due in 2025. TotalEnergies and Uganda have also signed an MOU to develop 1GW of renewable energy.
In the UK, the US$9bn Equinoroperated Rosebank project in the West of Shetland area — the largest undeveloped field in the North Sea — is set to reach FID in 2023. It is
due to produce first oil in Q426, with subsea installation starting in 2024, well drilling in 2025 and the floating production and storage and offloading vessel arriving in Q226. It will produce up to 69,000 barrels per day at peak, with gas exported via a new pipeline link.
Neil Campbell is a specialist energy and renewables journalist and editor.
Last year’s invasion of Ukraine by Russia had a seismic impact on Europe’s energy markets when it was already preparing for a transition to greener energy. And the need to ensure energy security and diversity overnight became even more urgent than a lowcarbon future, with knock-on effects on the supply chain.
Alongside the impetus towards sustainable energy, plunging gas imports from Russia meant a scramble to secure supplies from other producers — chiefly as liquefied natural gas — and the infrastructure to import it. The International Group of Liquefied
Natural Gas Importers, or GIIGNL, described Russia’s invasion “a gamechanger,” with importers replacing Russian gas with supplies from the 19 international LNG producing countries.
Europe’s LNG regasification capacity, relatively flat for a decade, is set to increase by a third by 2024, with almost 50 billion cubic meters, or bcm, of capacity due online by end-2023. Much will be in the form of Floating Storage Regasification Units, or FSRUs, which can be quickly chartered and hooked up with minimal infrastructure.
This has been a major change for ports. “We see strong growth in LNG,”
By Neil Campbell
said Port of Rotterdam spokesperson Sigrid Hesselink. The port itself invested in a terminal dedicated to LNG (the Gate LNG terminal), which saw LNG imports rise by 63.9 percent in 2022, mainly from the U.S. The rise in LNG offset lower container trade, and throughput was similar to 2021 at 467.4 million tonnes.
Germany alone is installing up to five FSRUs by year end, said GIIGNL, to replace 58 bcm of Russian gas imports out of 90 bcm of annual consumption (2021 figures). Italy is adding three FSRUs over the next three years totaling 10 bcm per year
of import capacity, as it seeks to replace 29 bcm of Russian gas. The Netherlands will have two FSRUs by end-2023, while France, Finland/ Estonia, Greece and Cyprus are committed to one each. Greece has four further proposed FSRU projects.
Reduced Russian gas has underlined the need for energy diversity, especially renewable or low carbon options giving greater energy independence. This has meant more emphasis on offshore and onshore wind power, a revitalized interest in nuclear power, and a fillip for battery storage, hydrogen production and e-fuels. Carbon capture and storage is also receiving more attention to reduce the impact of fossil fuel production and use, with European economies still heavily dependent on oil and gas.
The wind power boom will challenge the supply chain. Consultant McKinsey sees wind and solar projects that have reached final investment decision, excluding China, rising from 125 GW in 2021 to 459 GW in 2030. The speed of this growth “requires stable markets and resilient supply chains,” McKinsey said, but added that renewables have seen volatile prices and supply levels. Solar material polysilicon went up by 350 percent from 2020-23, while key wind turbine materials steel, copper and aluminum have seen prices double or triple. Rare earth metals used in magnets in wind turbines and electric vehicles are in short supply.
The Port of Rotterdam’s Hesselink said: “We see an increase in [demand for] products related to the renewable industry.” This is not just in offshore wind components such as “foundations, blades, tower sections, transition pieces, cables, nacelles” but also energy transition components such as cobalt, lithium and nonferrous metals. Throughput is also increasing for users such as refineries that are upgrading to become more sustainable, Port of Rotterdam said.
For wind farms, “growth will continue in terms of project size and equipment size,” Hesselink said. “Turbines are expected to be upgraded to generate more MW and will be bigger. Therefore the blades, tower sections, etc., will also increase. The same goes for the foundations.”
But companies are responding. Sif recently took a €328 million FID to build the world’s largest monopile foundation manufacturing plant at Rotterdam, for example.
Europe saw 16.7 GW of onshore and 2.5 GW of offshore wind installed in 2022, the Global Wind Energy Council, or GWEC, said. Total offshore wind capacity in Europe is now 30 GW, of which the UK has 46 percent. Europe leads the nascent floating offshore wind sector, with 171 MW or 91 percent of the world’s total.
But there are supply bottlenecks, GWEC said. Europe’s existing offshore nacelle assembly capacity will meet only European demand in 2026 and would have to double by 2030 to meet demand then. And GWEC said, “Europe could see shortages before the end of the decade” in vessels used in offshore wind installations.
Hydrogen developments are increasingly paired with offshore wind. The Netherlands in March announced plans to use output from a new 700 MW wind farm solely to produce green hydrogen at a 500 MW plant off the Netherlands. Shell last July announced the 200 MW Holland Hydrogen 1 in the Port of Rotterdam, with the electrolyzer powered by the Hollandse Kust Noord wind farm. Shell will use the hydrogen at its local refinery, partly decarbonizing production of petrol, diesel and jet fuel.
Fresh interest in the nuclear sector is perhaps unexpected, with COP26 driving its revival. Poland in late 2021 announced the site of LubiatowoKopalino for its first nuclear power plant, on the Baltic coast near Gdansk. Three units of 1,600 MW each will be
Wednesday 07 June 12:20 - 13:05
developed, and come online in 2033-37.
The UK government recently unveiled new pro-nuclear policies. It is consulting on recategorizing nuclear power as “environmentally sustainable” — opening up the same investment incentives as renewable fuels. The UK is targeting nuclear power to generate 25 percent of its electricity by 2050. The government also launched a competition for Small Modular Reactors (SMRs) and will co-fund viable projects.
Last autumn the UK announced “the first state-financed investment in nuclear for a generation” with a £700 million investment in Sizewell C. And construction is already under way at EDF’s 3,260 MW Hinkley Point C in western England — the UK’s first new nuclear power station in 20 years.
Oil and gas remain in the mix. “Demand is still there — mostly [for] steel pipes, jackets and smaller project cargo,” Hesselink said. “With the current oil price, we expect that this will not change.”
But while production will continue, carbon abatement is on the agenda, with the UK alone allocating £20 billion of support for the development of carbon capture use and storage to capture 20-30 million tons per year by 2030.
Europe’s reliance on fossil fuels will not disappear overnight, but it is now rapidly diversifying its supply sources — particularly in gas — and developing its own independent and sustainable energy industries, with the supply chain to match.
In the wake of the Covid-19 pandemic, project cargo businesses have had to consider alternatives to seaborne shipping, partly on account of increasing ocean freight rates and also to expand to meet rising demand. While speed is the main attraction for project cargo air freight, reliability with accurate departure and arrival times is also appealing. But when it comes to environmental issues, the project air cargo industry needs to fly higher.
That’s one of the findings taken from the 2023 The International Air Cargo Association, or TIACA, sustainability
report. Pressure to boost sustainability levels has increased from last year, according to 64 percent of respondents – an increase that the report attributes to both customers and regulators.
One regulation making its mark – and driving that increase – is the European Council’s Environmental, Social and Governance, or ESG, amendments. Large companies will now be required to report on sustainability issues – which as well as social and human – include environmental rights. These new ESG air cargo requirements are expected to be introduced this year. The European
Regions: Global
Problem: Fast and reliable project cargo air freight will come at an even greater cost in the future as sustainability targets take hold
Solution: Scaling up of sustainable aviation fuels and applying ‘skins’ to improve efficiency will help cap costs
Council explained that by providing data, companies can spot any potential risks, while allowing investors access to information that can help them to
Cargo
implement sustainability-related issues into their investment decisions.
Greater awareness in tackling these issues is taking off. The TIACA report says that 76 percent of companies have sustainability strategies in place, with 82 percent already providing sustainability reports.
A spokesperson for shipper Neste said that the aviation industry has set itself an ambitious target of net zero carbon emissions by 2050. “Air cargo is an integral part of the aviation industry and IATA estimates cargo flights to represent around half of all flights. We also see a growing awareness among companies using air cargo to work on reducing the emissions related to their air cargo activities.”
With new projects being put into practice, sustainability considerations are being taken on board.
Mediterranean Shipping Company (MSC) – in conjunction with its operating partner, Atlas Air – has embarked on its mission to take cargo from the sea to the skies. Boeing has constructed the B777-200 freighter for the partnership. Four B777-200 air freighters are expected this year, making cargo deliveries to Europe, America, China and Mexico.
The MSC project has taken on the challenge of providing sustainable air cargo flight solutions. Lufthansa Technik and BASF have devised a surface technology called AeroSHARK, which is being used for all Boeing B777 freighters and is expected to save over 4,000 metric tons of kerosene per year as well as almost 13,000 metric tons of CO2 emissions. AeroSHARK takes its inspiration and name from its structure, which has been compared with shark skin. The surface film effectively mimics this structure, comprising 50 micrometer ribs, applied to the fuselage and engine nacelles of the Boeing 777 freighters.
Dorothea von Boxberg, CEO of Lufthansa Cargo, said: “We are proud to be able to operate our entire freighter
fleet even more efficiently in the future thanks to Sharkskin technology and to further reduce the carbon footprint of our modern fleet. Our investments for the introduction of AeroSHARK bring us closer to our goal of being 100 percent CO2-neutral in the air by 2050; on the ground, we would like to achieve this goal as early as 2030.”
Playing a key part in the achievement of the project cargo air industry’s net zero target is sustainable aviation fuel, or SAF. Around 65 percent of the emission reductions needed to get to net zero are predicted to be delivered through using SAF.
Wednesday 07 June 16:10-16:55
Neste is the world’s leading producer of SAF and is also working together with stakeholders in the cargo industry to increase the availability of SAF. “For example, in November last year, we announced a partnership with
also play a role in creating demand, by voluntarily using SAF for their air cargo related activities.”
Neste is increasing its SAF production capacity 15-fold with ongoing investments in its Singapore and Rotterdam refineries. “By the end of 2023, we will have an annual SAF production capacity of 1.5 million tons.”
CargoAi offering freight forwarders and their clients an option to reduce the carbon emissions of their air cargo transports by purchasing Neste MY Sustainable Aviation Fuel when booking a cargo transport,” the Neste spokesperson said.
The partnership between Neste and digital solutions provider CargoAi provides an opportunity for a customer to buy fuel when booking cargo transport – either after the booking confirmation or during cargo tracking.
In an online interview with supply chain consultancy Alcott Global, CargoAi CEO Matthieu Petot said that several steps have been taken to boost sustainability levels. “The first step was to measure all the CO2 for all the flights very accurately. Now, we are measuring and comparing to the rest of the industry. That’s what we call the ‘Efficiency Factor’.”
Project cargo movers face no operational hurdles to using SAF as it is available today. “SAF is a drop-in fuel which can be used in existing aircraft and is ASTM certified to be used as regular jet fuel and delivers a similar performance as its fossil counterpart,” said the Neste spokesperson.
Petot added that SAF is the “best solution” in reducing carbon emissions. “It is a bit expensive, but it is the undisputed way to reduce carbon levels.”
But that cost is a big hurdle to overcome. While delivering project
cargo by air may be fast and reliable, this comes at a price. As well as handling and security costs, there is the hefty price tag of fuel. As well as an airline charging higher rates to a customer to cover the price of fuel, this problem is magnified when counting the cost of low emission fuel.
In general, SAF is three to five times more expensive than conventional jet fuel. Neste said: “Fuel is a major cost factor for airlines, which are still recovering from the pandemic, so this might be a factor.”
However, the Neste spokesperson added that there is a big difference as the cost of carbon and climate impact is not included in the price of fossil jet fuel. “So, the question should not be ‘What does SAF cost?’ but rather ‘What will it cost if we don’t use SAF?’”
“To put it into perspective: although it is not specifically an air cargo example, in the coming years, the cost impact of using SAF on a ticket will be no more than the cost of a coffee and sandwich at the airport.”
Neste said that another big challenge is to ramp-up SAF production; currently it only represents around 0.1 percent of total global jet fuel consumption. “In addition, governmental policy support is crucial to create the demand certainty needed to attract the investments into new production capacity, as building new refineries is highly capital intensive. Next to that, companies can
Can greater sustainability take off in the world of airborne project cargo? Lufthansa Cargo suggests that this will be a key driver in the future of air freight logistics. This is a logical extension of the greater awareness of protecting the climate in the air industry. Inroads such as specially designed fuel, automation and surface technology have already been made, with more breakthroughs in technology anticipated in the future. However, Lufthansa added that it is important that sustainable fuel quota rules should be designed to “ensure fair competitive conditions.”
“For us, sustainability is a very special priority,” von Boxberg said. “We have set ourselves the ambitious goal of halving our CO2 emissions per kilogram when flying by 2030. Efficient flying and expanding the use of sustainable fuels are the focus. But to really make a difference, we need to think holistically about the issue and also take smaller measures such as loading equipment optimization and recycling seriously. We are convinced – every contribution counts.”
“We still have a long way to go to net zero carbon emissions but the key message is that we don’t have the luxury of waiting anymore,” the Neste spokesperson added. “We need action, and we all share this responsibility as combating climate change is a global challenge overarching all sectors. We have a solution available today (SAF), so let’s fully utilize this while at the same time work on the solutions of tomorrow.”
• Project Freight Management Platform (premium)
• PFN Cloud Office environment
• PFN-Meet (free to use for members)
• Educational materials for your staff
• Mobile apps for Cargo & Ops inspections
• Annual face-2-face meetings
• Driven by our Board of Advisors (BoA)
• Includes partnership of, Renewable Energy Project Logistics Alliance (REPLA)
With global semiconductor supply chains undergoing unprecedented change, the demand for new manufacturing capacity in developed countries is growing. Freight forwarder and transport specialist Bertling Logistics recently assisted in this shift, delivering two outsized air separator units from the United Arab Emirates to Germany, coordinating complex loading and discharge operations as well as overcoming weather-related challenges along the way.
The project originated when multinational semiconductor contract manufacturing and design company GlobalFoundries began work to upgrade its facility in Dresden, Germany and, having developed a strong relationship with French industrial gases and
Regions: Europe, Middle East Problem: Inclement weather and labor snafus put the brakes on the move of two air separator units
Solution: Quick thinking by the project teams found a replacement ship over the difficult festive period
services firm Air Liquide, selected them to supply two air separators for the plant.
“Our client was Air Liquide Electronics,” Enrico Lux, project and key account manager at Bertling Logistics, told Breakbulk. He explained that Bertling teams in Germany and Dubai were ready for the challenge having managed similar transports for Air Liquide in
By Malcolm Ramsaythe past, both from the UAE, and over shorter distances within Europe. The units were manufactured at Air Liquide’s Middle East manufacturing site in Ras Al-khaimah in the north of the UAE. Originally established in 2015, this facility has developed a reputation for fabricating outsized and complex components, including manufacturing the largest cryogenic column ever made by Air Liquide.
For this project, the heaviest unit was an N2 cold box which weighed over 77 tonnes and measured 27.4 meters in length, 5.2 meters in width and 4.0 meters in height. This highly engineered air separation system was destined to form a major part of the cryogenic
equipment for the upgrade of the Dresden plant.
The cargo was manufactured alongside a liquid oxygen (LOx) box that weighed more than 25 tonnes and measured over 21.1 meters in length, 3.9 meters in width, and 4.5 meters in height.
Both items required specialist handling expertise due to their size and the sensitive nature of components involved. For Bertling this meant coordinating detailed pre-planning sessions to define the most efficient and cost-effective route.
Bertling’s Lux explained that the project team in Dubai identified a route by road from the manufacturing site to the port of Jebel Ali, around 140 kilometers away to the south.
To load the breakbulk items at the fabrication site, Bertling relied on a conventional hydraulic axle trailer to move the cold box in 4 + 6 + 8 meter spacer + 8 configuration. The LOx Box was also moved by conventional hydraulic axle trailer, but then in 4 + 14 configuration.
“Both units were loaded at the workshop by trailer hydraulic from stools,” Lux said, and then transported directly by road.
Upon arrival at the port of Jebel Ali, the cargo was then destined for ocean shipment aboard a vessel operated by shipping line CMA CGM. Lux explained that the team selected CMA CGM as ocean carrier for the project as “they offered a feasible solution, and we had had good experiences with them for similar transports in the past.”
From the dock at Jebel Ali, the cargo was loaded directly from the waiting trucks to the vessel’s deck using onsite gantry cranes. While this should have been a relatively straightforward process, the teams faced logistical challenges, as weather conditions at the port had deteriorated significantly by the time operations were scheduled to begin.
“Due to unusually strong winds for the Jebel Ali location — resulting in some very strong gusts — the loading operation was stopped/ rejected by the terminal operator on very short notice,” Lux said, adding that this had numerous knock-on effects for the operations because the rigging was already prepared and the trucks were alongside the vessel before the order came through.
As a result, the vessel was forced to sail without the cargo on board and the team from Bertling were required to redraft their plans at short notice. This happened just days before the end of the year, meaning that many operators and alternative providers were paused or on holiday. “It happened on December 29, and we had to find an intermediate storage solution quickly around new year holidays to get the trucks free,” Lux said, adding that the team finally managed to secure another CMA CGM vessel to take the cargo. The cargoes were then both successfully loaded aboard the suezmax container ship APL Salalah
“The cargo left on the ship in December and then took some time to pass through the Suez Canal and then on to the Mediterranean before finally
arriving in Rotterdam, ready to be loaded again,” Sina Burkert, director of engineering at Air Liquide, said.
Founded in 1902, Air Liquide is the second largest supplier of industrial gases in the world and has operations in over 70 countries. Headquartered in Paris, France, the firm employs more than 67,000 staff globally and generated almost €30 billion in revenue in 2022.
Having successfully sailed more than six thousand kilometers, the cargoes finally arrived at the Port of Rotterdam where Bertling’s German team began preparations for the last leg of the journey.
The cargo was discharged directly onto a river barge using a Matador 3 floating crane and, once fully lashed and secured, the barge commenced its journey via inland waterways to Dresden River port, some 800 kilometers to the east.
While this route was free from weather-related issues, the team from Bertling nonetheless faced some challenges during this transport as river workers staged protests over pay and conditions on route through Germany.
“The river barge was blocked for one day on the river Weser due to a warning strike by the Verdi trade union,” Lux said, adding that “the locks were not in operation for a day without any prior notice. As result we had to postpone the unloading operation and road transport in Dresden just four days before the scheduled date.”
This again had knock-on effects for the project, with the team having to adjust the schedule and even having to go so far as rewrite 128 road signs by hand, as the period of validity for the ‘no parking’ signs had changed.
Having finally arrived in Dresden River port, the cargoes were then discharged from the barge onto trucks using crawler and mobile cranes, before the team oversaw delivery to the final destination in Dresden by road.
Lux noted that as the cargoes were discharged out of the river barge in Dresden River port, a key consideration for the team supervising the transfer was the “short distance to final destination within same city” which “required tandem lift by two cranes.”
Last year, GlobalFoundries announced plans to invest at least US$1 billion in its new Dresden facility as part of plans to increase its global wafer production
capacities from 300,000 in 2020 to 850,000 in 2022. The investment followed an extension of the supply agreement with Air Liquide in early 2022 for the supply of high-purity gases to GlobalFoundries’ Fab 1 in Dresden.
Praising the most recent project move, as ‘high-precision work’, Robin Corral, key account manager at Air Liquide, hailed the work by both the GlobalFoundries Facilities Team and his colleagues from Air Liquide in completing the final installation on time and without issues.
The delivery of the air separation units also followed a strengthening of the strategic long-term manufacturing agreement between GlobalFoundries and Qualcomm Technologies that aims to boost production, particularly in the U.S. and Europe.
Headquartered in Malta, New York, GlobalFoundries is the fourthlargest semiconductor manufacturer in the world and floated on the Nasdaq in October 2021. Since announcing the investment in new capacity in Dresden, the firm has seen rapid development with more advanced capabilities emerging.
“Our Dresden facility is the largest semiconductor manufacturing site in Europe, with approximately 500,000 300mm equivalent semiconductor wafers shipped in 2021,” a spokesperson
for GlobalFoundries said. “The facility occupies an area of approximately 407,000 square meters, with clean room extending over an area of approximately 63,000 square meters, which is home to our CMOS and FDX process technologies from 55 nanometer down to the 28/22 nanometer node.”
The specialist air separation units delivered by Bertling and Air Liquide will now play a vital role in the plant, refining gases in a separation process that involves a distillation temperature of around -196°C, helping to dramatically increase production capacity at the site.
“We have seen demand grow and this has driven the need to build new facilities here,” Andreas Riedl, process engineering technician at GlobalFoundries, said. “The air separation units will supply the factory with nitrogen and oxygen, and we will soon be generating up to 8,000 cubic meters of nitrogen per hour, saving up to twelve tankers.”
The firm is also optimistic about the new plant noting “we have this footprint in Dresden and the fastest way to increase capacity is to expand on an existing footprint.”
Based in the UK, Malcolm Ramsay has a background in business analysis and technology writing, with an emphasis on transportation and ports.
By Mark Dohmen
Human capital is more crucial than ever. Many sectors are struggling with a severe shortage of personnel, and ports are no exception. The labor shortage is expected to persist for another two decades. It is essential to focus on solutions, as economic and financial measures are needed to keep the breakbulk sector strong. But the societal aspect also needs to be addressed. Two Rotterdam breakbulk specialists share their experiences and vision of the labor market.
Currently, there are more than 8,000 vacancies in the port of Rotterdam. This number is expected to increase even further in the near future. On top of that, the labor market in the port and the industry will change in
the coming years, partly due to the energy transition. Existing jobs will disappear or change, and new jobs will emerge. It is estimated that between 10,000 and 15,000 new jobs could be created in the area. This presents a huge challenge, underscoring the urgency of a joint approach. Breakbulk stakeholders in the port of Rotterdam acknowledge the labor market issues and are making every effort to find and retain motivated and qualified employees for the future.
“Finding experienced employees is a big challenge,” said Jan Wickel, head of recruitment and continuity at the terminal of Rhenus Logistics. Rhenus operates two breakbulk multipurpose terminals in the port of Rotterdam. Rhenus Logistics BV in Rotterdam employs approximately 130 employees, with the majority working in operations. As a familyowned company, Rhenus has 39,000 employees at 1,120 locations in more than 60 countries. “Furthermore, a lot of experienced personnel are leaving the sector due to aging,” Wickel said. “Experienced employees who retire can no longer pass on their knowledge to younger colleagues. Additionally, young people often view working in the port as dirty and physically demanding. This is why the enthusiasm for current education is alarmingly low. We need to make working in the port ‘sexy’ again.”
Wendy Ladage, HR manager at C. Steinweg Group, recognizes the challenge as well. In the port of Rotterdam, Steinweg operates sea terminals and warehouses at 12 locations covering more than 2 million square meters. Besides base metals, ferroalloys, steel, soft commodities, chemicals and plastics, Steinweg also handles project cargo. The company employs 335 full time employees (FTE) in the office and 515 FTE in operations. Ladage identifies recruiting employees as the biggest challenge.
“We have now launched a recruitment campaign focusing on attracting dockworkers,” she said. “But we also have other vacancies, including technical positions. In the current market, recruiting the right people for those vacancies is a serious challenge. In addition, it is important to retain current workforce.”
Other trends include the importance of training — both for new employees and for staff who have been employed for years — and more personal attention to individuals. “It’s important to make the industry attractive to both newcomers and career changers — people who have already built a career elsewhere,” Ladage said. “As employers in the breakbulk sector, we can contribute to this together and seek collaboration. Furthermore, we see that the world around us is changing and topics such as sustainability are important. This affects employees as well.”
In addition, large onboarding processes are increasingly being launched to help new employees feel at home in the new work environment more quickly. At Rhenus, for example, new employees receive a welcome package and awareness training from HR and HSSE on their first day of work. “We make sure they receive workwear if needed and that they get to know the team. Then we have lunch together. So, there is no actual work on the first day. This is repeated several times in the first few months. This way, we try to make new colleagues feel welcome,” Wickel said.
According to both Ladage and Wickel, these actions are crucial for the port of the future and the Rotterdam breakbulk sector. After all, human capital is and will remain a critical success factor. “The work in the port is changing, that’s for sure. We see increasing automation and digitalization, for example. But no matter how much you implement these developments, you will always be
working with people,” Ladage said. “If we stop hiring people to do the work, the port will close. Not everything can be automated,” Wickel added.
Evidently, the changes do have an impact on the skills, training, and social competences needed for a future-proof breakbulk industry. Digital skills are becoming increasingly important, but so are technical and communication skills. In addition, the impact of social developments is becoming more visible in the workplace. Wickel said: “Employees need to have the right level of work and thinking. Awareness and a sense of safety are also important, for themselves as well as for the environment. Moreover, a good port worker has perseverance and is physically fit, not easily thrown off balance in social interactions, and enjoys working in a team.”
The Rotterdam breakbulk companies are each handling the challenges in their own way. For example, Rhenus Logistics ensures that the company gains as much visibility and awareness as possible. “We also look beyond the industry and are willing to train people from scratch for the job,” Wickel said. Daring to think differently is essential, he added: “In the past, it was unthinkable to work part-time in the port. That has changed. Where we used to look at whether education and experience matched the job, we now look at individuals and their engagement and motivation.”
Even before the labor market was tight, Rhenus hired people with disabilities. Today, there are also Ukrainians working there; two ladies in the office and a man who acts as
an intermediary between the office and the truck drivers. “He does not speak English as well as the ladies in the office, but he does speak several Eastern European languages. This has made communication with the drivers much more open and clearer. Besides, they all have an excellent work mentality,” Wickel said.
In early March, Steinweg launched a new recruitment campaign. Ladage said: “For the coming year, we have purchased advertising space on social media channels where we believe we can effectively reach our target audience. For this campaign, photos and videos were shot with our own staff. We will also expand the campaign to the World Port Days in Rotterdam, among others.” Vacancies at Steinweg are increasingly written from the perspective of a colleague,
explaining what working in the department entails and what new colleagues can expect. In short, people are at the center of communication.
Steinweg is also working on brand awareness. For 175 years, the company has been a standard in the Rotterdam port, but Steinweg has never presented itself to the outside world. “That has now changed,” Ladage said. “Investing in brand awareness and a good employer brand is necessary if you want to recruit personnel. As a new employee, you want to feel connected to an organization and know what the organization stands for.”
According to both Ladage and Wickel, a creative approach to addressing labor market challenges is not a temporary solution; it is a structural change. “We expect the labor shortage to persist for the foreseeable future.
In the coming years, more people will leave the Dutch labor market than new people will join,” Ladage said.
“We are already missing employees with one-on-one work experience in the industry. Given the image of this work among students, this is unlikely to change anytime soon,” Wickel added. “Employing people with disabilities or refugees may not be the solution to labor market challenges, but it does
contribute to it, and as a company, you need to be open to such possibilities. This applies to all companies in the breakbulk sector. Think broader and act broader. The port of Rotterdam was, is, and will always be attractive. It is up to us, as a community, to put this beautiful port back on the map.”
At the beginning of this year, six Rotterdam parties signed a declaration of intent to form the Human Capital Coalition Energy Transition, or HCCE. With this, a joint approach aimed at attracting and retaining sufficient and qualified port staff was launched. Deltalinqs, Port
of Rotterdam Authority, Municipality of Rotterdam, Rotterdam University of Applied Sciences, Rotterdam Technical College, and STC (Shipping and Transport College) are working together in the coalition to provide appropriate employment and education — now and in the future.
By Aditya Munshi, Julian Rippy, IPA
Over the past few months, the data has shown that the global economy continues to struggle despite some positive spots. Overall, the greatest threat to the global economy comes from high levels of uncertainty. We continue to see economic disruptions from the war in Ukraine and the continuing global recovery from the era of Covid-19 shutdowns, while recent pressures in the banking system have increased worries about global economic prospects.
The International Monetary Fund (IMF) estimated that global economic growth is likely to fall to 2.9 percent in 2023, down from 3.4 percent in 2022. This is the second year in a row that the IMF has reported lower prospects for economic growth. Similarly, the World Bank predicted a global rate of growth of just 1.7 percent in 2023, only about half of what it had projected for the year at the start of 2022.
AT BREAKBULK EUROPE…
Global Project Review
Thursday 08 June 12:00 - 12:30
An important source of uncertainty is the policymaking processes of major central banks worldwide. Markets have watched the Federal Reserve and European Central Bank for several quarters, looking for signs that the current program of interest rate hikes was ending. Persistently high inflation, however, has led central banks to pursue hawkish policies on interest rates up until the publication of this article. Both the U.S. and major European economies are seeing inflation at levels unmatched since the 1980s, with the U.S. reporting a 6 percent year-over-year inflation rate as of February 2023 and the EU reporting an 8.5 percent inflation rate over the same time period. These rates are both lower than the peak rates we saw in both places in 2022. Despite attempts to mitigate inflation, it has remained stubbornly high due to high commodity prices as well as consistently high wages and tight labor markets across most developed economies. However, the outlook for central bank policy may finally be changing as adverse events in the technology and financial sectors in recent months raise the possibility that central banks will halt rate increases in the near future.
The current outlook for capital expenditure is uncertain and varies widely across industries. When commodity prices are high, as they are now, we generally expect increased capital expenditure, but this effect is offset by ongoing economic uncertainty. The Federal Reserve Bank of Dallas’ (Dallas Fed) Texas Energy Outlook Survey, however, shows a bright spot for the energy sector. Each quarter, the Dallas Fed conducts a survey of
“WE’VE SEEN GOOD SUPPORT FROM THE ENERGY SECTOR AND NOT NECESSARILY RENEWABLES - IT’S FROM ANY TYPE OF ENERGY.”
Christophe Grammare, AAL
about 200 oil and gas firms located or headquartered in the eleventh district—Texas, southern New Mexico, and northern Louisiana—that operate regionally, nationally, or internationally to gauge broad market conditions.
The outlook for capital investment is strong in the energy sector, where high commodity prices and disruptions in the supply of Russian oil and gas have provided an incentive for additional spending. In Q4 2022, the Dallas Fed’s Energy Survey’s capital expenditures index, its broadest measure of market conditions in the energy sector, remained high at 53.2. This indicates that most executives in this sector expect to increase capital expenditure in the year to come relative to the year prior. Expectations for future capital expenditures (6 months from now) are also high. Furthermore, both of these confident responses are continuations of the historically high levels of capital expenditure optimism we have seen since the middle of 2021.
A March 2023 Independent Project Analysis (IPA) market trends survey of over 35 onshore industrial companies (refining, chemical, consumer products, life sciences, mining) shows similar trends in the survey responses as we see in the public economic data. The survey data showed a similar trend in capital investment plans, where about
Support for project cargo work from the wider energy sector – fossil or not – is borne out by business for multipurpose carriers.
Christophe Grammare, managing director for AAL Shipping, confirmed to Breakbulk: “We’ve seen good support from the energy sector and not necessarily renewables – it’s from any type of energy.”
For Australia – a key market for AAL – Grammare described renewable energy as the “big one”. Australian mining projects have not been as active as previously, and oil and gas project work is steady, but not soaring. Instead, AAL is seeing more work associated with the upkeep of equipment, which works well with the carrier’s regular liner service in Australia.
Europe is a different beast, however. “Europe is a very quiet, depressed market in general. We’re maintaining our core service –essentially one ship per month sailing from Europe and the Middle East Gulf and India and then another ship a month from Europe to Far East. This is our core business so we’re going to keep that as it is,” Grammare said.
Last year, AAL was pulling more ships towards Europe to serve increased opportunities, but that has not been the case this year. Instead, Grammare said AAL’s Far East ships were being rerouted to the U.S. and Australia. He also noted an increase in breakbulk trade from the Middle East Gulf to India and Southeast Asia. Steel was another cargo champion in 2022, but that hasn’t been carried through to 2023. “The steel cargo was very strong last year, but it slowed down a bit in the beginning of this year with the steel prices changing and the market slowing down a bit,” Grammare said. “That’s opened up more space for us to take project cargo.”
Christophe Grammare.
Credit: AAL
60 percent of companies reported that their project portfolio capital spend will be higher this year, while only 15 percent reported lower capex levels.
Reported lead times for major equipment are nearly 27 percent longer on average compared with the pre-pandemic period, while lead times specifically for electrical and instrumentation equipment are 67 percent longer relative to the same period. Transformers and other electrical components are particularly problematic categories of equipment. In response, teams have been forced to move procurement earlier in the project lifecycle, to pay premiums for fabricated equipment, and to accept onerous contract terms from their suppliers. These risks are particularly pronounced for equipment sourced from Europe or Asia: 60 percent of respondents reported delays on delivery of Asian equipment/materials while 74 percent reported delays in equipment sourced from Europe.
On the supply chain logistics front, it appears that some of the pressures have eased over the past couple of quarters. Compared to Q3 2022, IPA clients surveyed report that it is now easier to get freight on board a shipping vessel, to find a well-resourced port, and to secure a vessel for shipments, though more than 25 percent of project teams still reported problems in these areas.
However, vendor delivery delays, particularly for major equipment, continue to be significant problem, as reported by the survey respondents: 80 percent of the companies reported worse vendor supply delivery delays for equipment than pre-pandemic norms. This indicates that while the logistical parts of supply chains are recovering, the main source of delays remains bottlenecks in production among manufacturers and other suppliers of fabricated/intermediate goods.
Engineering delays remain significant as well: the number of project organizations reporting engineering
disruptions has stayed between 30 and 40 percent since early 2021, while the length of delay has steadily increased over the same period; it is now 20 percent above the pre-Covid baseline, which IPA data shows was around 30 percent on average for industry.
Survey respondents continue to report concerns about the qualifications and availability of engineering resources, specifically the ability to recruit engineering labor. Eighty percent of companies reported that they were very concerned about how engineering companies are likely to respond as project activity ramps up, and 73 percent were concerned about construction labor shortages.
Over the past two years, the majority of the price increases on capital projects have been concentrated on
the “goods” side, with relatively muted growth in prices for engineering and construction resources. However, one key finding of the latest survey is the inflationary pressures beginning to show up on the “services” side of project costs, where 77 percent of companies reported that they are considering higher engineering all-in rates for new estimates, and 90 percent for construction all-in rates than what they paid for projects in the field right now.
Overall, we expect that inflation will become less of a priority for policymakers over the next six months as consumer pricing indices begin to fall and fears of an economic downturn begin to predominate. We expect price levels for capital projects to remain high in absolute terms but to grow at a lower rate than observed in the past two years, as we do not expect commodity prices to fall and capex plans for industry
remain robust for now. We also expect that industry will struggle to actually deploy the announced capital spend, as we continue to struggle to secure the critical engineering and construction resources needed to deliver projects.
Downside risks will dominate in the global economy in the medium term: ongoing disruptions and geopolitical polarization from the war in Ukraine as well as the ongoing and uncertain impact of higher interest rates on the global financial system are both significant threats to economic activity in the year to come.
Aditya Munshi is product portfolio officer and Julian Rippy is research analyst at Independent Project Analysis. IPA is an advisory firm on capital projects, providing benchmarking, research, and consulting devoted to the empirical research of capital projects and project systems.
Sif Group’s decision to press ahead with the construction of the world’s largest monopile foundation manufacturing plant in the Netherlands will have been cheered by Europe’s wind energy sector, which faces a growing litany of supply chain challenges that threaten to derail onshore and offshore development.
The Dutch offshore foundation maker announced in February it had taken a final investment decision on the €328 million plant — an expansion of its existing Maasvlakte II complex at the Port of Rotterdam. Work on the project was scheduled to start in April, with first production in the second half of 2024. The facility
Wednesday 07 June 14:20 - 15:05
Thursday 08 June 12:00 - 12:30
Region: Europe
Problem: A looming transportation supply crunch will hamper Europe’s wind projects
Solution: Carriers need to invest in solutions today to avoid a blockage in the second half of the decade
will have capacity to produce some 200 monopile foundations per year, increasing the current industry’s production by 80 percent.
“Sif is one of the few companies that support the market with those foundations, so they are crucial for the development of offshore wind,” said Danny Levenswaard, director of breakbulk at the Port of Rotterdam Authority. “Sif fits in perfectly with Rotterdam’s ambition to build up the sustainable side of business. It brings a lot of heavy-lift and project cargo to the port as well.”
According to Sif, monopiles are the most commonly used type of foundation for offshore wind turbines as they offer the best value for money. The foundations made by Sif measure up to 105 meters in length, 11 meters in diameter and weigh
about 1,800 tonnes, and can be used in water depths of up to 60 meters.
But Guy Willems, strategic communications advisor at WindEurope, an industry group representing about 500 mostly European companies including OEMs, developers, electricity firms and component manufacturers, said the Maasvlakte II plant alone would be insufficient to meet soaring demand from offshore wind developers in Europe.
“Right now, the whole European industry has a capacity to produce 250 to 300 units per year, and major bottlenecks are starting to form because of that. Europe’s offshore foundation manufacturers are basically fully booked for the next three years,” Willems said. “So, you can imagine this new plant provides quite a significant increase in production. But by 2030 we will need 1,200 bottom-fixed foundations annually and 600 to 700 floating ones. The European industry will need much more expansion in the coming years.”
Monopiles are not the only component under threat of bottlenecks in Europe — other production facilities also need to scale up to meet the EU and its member states’ green energy
ambitions. The conflict in Ukraine is creating further uncertainty for investors, who are grappling with high energy prices and disrupted markets for key raw materials. Last year, Europe invested €17 billion in new wind projects, down from €41 billion in 2021 and the lowest figure since 2009, said WindEurope.
For Willems, another particularly acute problem is permitting for new wind farms, especially onshore. On the national level, rules can be complex and burdensome, with lead-times taking up to 10 years.
“A lot of rules relate to how far wind farms have to be from houses, military zones or natural protection areas. Poland, for example, until recently had a rule called 10H whereby a turbine’s height determines how far it needs to be from a residential zone. This rule excludes 95 percent of the whole of Poland from any development. They have now lowered this limit to a 700-meter distance rule, which is still more restrictive than the European average.
“On top of that, procedures are just super slow. There are a lot of administrative authorities involved — you have national governments, regional governments, municipal and local governments. You sometimes
have up to 30 or 40 authorities that are involved in issuing a single permit.”
WindEurope said the EU should be building more than 31 GW per year to meet its 2030 wind energy capacity targets. To achieve this, Europe must “continue to simplify permitting and invest heavily in its wind energy supply chain to deliver its energy and climate targets,” it said.
Another supply chain challenge is the ever-increasing size and weight of components. The offshore wind industry in particular is driven by constant technical innovation, with pieces such as monopiles and turbines getting bigger and more powerful by the year.
As these mammoth units get more complex, so does the equipment required to move them, resulting in capacity and affordability challenges for specialist transport companies.
“What you are seeing in offshore development is that the race for bigger turbines is moving so quickly that you really have to look at the type of equipment you are investing in,” said Pieter Jacobs, head of onshore wind at Mammoet. “Today it could be suitable for the market, but maybe in two or three years, it is too small. It is not feasible to use anymore, or at least for the capacity that is required.”
Specialized vessels to transport, install and service turbines are also feeling the pressure as offshore wind components increase in size and weight, with single turbines from European producers expected to reach 16-18 MW in the coming years, up from about 7 MW today. A looming shortage of such ships is likely to create another bottleneck unless serious money is spent on new assets.
To keep pace with the demand in Europe alone, an additional 56 vessels of all types will need to be built and brought online by the end of the decade, WindEurope said. If the sector invests now, the worst shortages expected to hit between 2028 and 2030 can be avoided, the industry group added.
Some exciting industry-led developments are already starting to emerge.
In April, Maersk Supply Service announced it had paired up with GustoMSC to begin design work on a next generation wind installation vessel tailored for the European market.
According to Jonas Munch Agerskov, vice president and CCO at MSS, the new concept has the potential to change the way wind farms are installed from both an offshore and onshore perspective.
The upgraded model, Agerskov said, would allow the jack-up vessel
to stay on location at the offshore site, with tugs and barges deployed instead to sail to and from ports carrying the turbine towers, nacelles and blades. As projects move further ashore, efficiency gains would rise.
The new design, which could hit the European market as early as 2027, would be capable of completing a project 30 to 35 percent faster than conventional wind installation vessels, which have to transit back and forth from site to port to reload components.
“To an extent, Europe, while being the pioneers in offshore wind, have built their way into fixed infrastructure bottlenecks, with more or less only two ports in the region geared for the new 15 MW-plus projects, adding massive onshore logistical challenges with large layout areas and dead capital tied at key sites waiting to be installed,” Agerskov told Breakbulk
“Operating our concept requires a significantly smaller key site than Bremerhaven or Esbjerg — compare birthing a tug and barge versus a 170-meter-long wind installation vessel — and you do not need to prepare the seabed in port for jacking operations. Furthermore, we transit with one wind turbine at a time in a continuous flow, which means that you do not need to have the same level of wind turbine components in stock in port. All of the above has the potential to enable a
range of smaller ports that otherwise would not qualify as load-out hubs.
“This can enable ports to be in closer proximity to both project sites and to where the actual supply chain of turbine components is being manufactured, and thereby solving the increasing onshore logistical challenges of moving components from assembly plant to port.”
Mammoet’s Jacobs, meanwhile, said the segmented nature of the supply chain remains a major challenge, with more communication needed to bridge the divide between heavy-lift transport capacity and the shipping demands of OEMs.
For Jacobs, standardizing transport solutions could be the solution to reducing the complexity and cost of moving turbines and other wind farm components. The Mammoet executive is one of several members of a work group set up at Breakbulk Europe 2022 to explore options for standardizing shipping equipment and interfaces and reducing the carbon footprint of transport.
The group, which reunited in Rotterdam this year, is facilitated by Thomas Sender Mehl, senior vice president of global supply chain at CakeBoxx Technologies, a company focused on supply chain systems
engineering and end-to-end solutions for the transport and storage of cargo.
Jacobs said the initial focus was to look at ways to standardize the tower feed component used by manufacturers to ship the onshore and offshore tower parts of the turbine. “With the different parties involved we can start sharing information and making the first steps towards standardizing.”
Group member Antonio Lazaro Alonso, global operations planning director at LM Wind Power, a part of GE Renewable Energy, said the group was a “unique opportunity” for the industry.
“This is exactly what has made global logistics efficient. Imagine a world without standard containers — shipping goods would be much more expensive. We are looking at something similar — let’s get a standard way of shipping wind turbine components,” Alonso said.
“This will allow all the logistics value chain to innovate and plan around something that is fixed for everyone. Yes, this may bring some limitation in the design of components, but in return it will allow everyone else in the value chain to develop the needed equipment in parallel. On top of that, this could allow transport equipment interchangeability and hence a better asset utilization — something we should not be competing on.”
Regions: Asia, Australasia
Problem: Port labor shortages and high handling costs threaten Asian breakbulk volumes
Solution: Relationships key to ensuring breakbulk handling can co-exist with container moves
Pandemic-related congestion at breakbulk ports around the world may well have eased alongside other positive developments, but multipurpose vessel operators are still having to proactively navigate a range of ongoing and different challenges.
Singapore-based AAL Shipping commercial director Felix Schoeller credited China’s reopening at the end of 2022 as a key contributor to a wider return to more “normal operations.”
“Due to the rise in container bookings over the last couple of years there were fewer terminals that accepted breakbulk and project cargoes,” he told Breakbulk. “It was certainly easier for port authorities to manage quick vessel turnarounds of simple container or bulk commodities rather than accepting a vessel at berth that took between three-to-six days for the loading and discharging of complex project cargoes.”
Schoeller noted that process inefficiencies at various ports have also diminished. “During Covid there were understandable dramatic inefficiencies due to labor shortages, port closures, congestion and other measures to fight the pandemic.” Additionally, there is increasing alignment in charging between ports due to “transparency across the world for standardized cargo costs.” In Asia the cost for port calls and labor for breakbulk and project cargoes are today comparable across China and Southeast Asia.
However, breakbulk cargo is “still getting less attention than it needs,” he said, which further limits port options for MPV carriers. “If this project and breakbulk cargo trend continues there might be further congestion and labor shortages. The Middle
East is an area where despite strong imports of project and breakbulk cargo, port capacity is decreasing.”
Schoeller also acknowledged the impact of a strong union presence in, particularly, the U.S. West Coast, Canada, Europe and Australia.
“This has exacerbated due to the freight increases over the last few years. Stevedores across the world –and especially unionized labor pools – have raised their fees dramatically. For instance, in the West Coast of the U.S. this has increased by 25 percent, compared with a year ago.
One of the major consequences of these cumulative factors is that MPV carriers frequently face unforeseen variable costs relating to port calls and delays of voyages, Schoeller said.
“As these delays often fall under the responsibility of the shipping line, they cannot always be recovered through freight. Furthermore, it makes scheduling very hard, which is a big problem for clients that have tight supply chain commitments.”
On a positive note, Schoeller credited the main hubs of Shanghai, Taiwan, Rotterdam, Antwerp, Hamburg, Masan and other Korean ports, Houston and U.S. Gulf ports for their continued focus on breakbulk cargoes. “[They] support our industry with prime port space and labor availability. This is one of the reasons why AAL pays so much attention to building strong, direct local relationships with our port authority and in-port service partners worldwide – to ensure that every operational stakeholder is invested and our operational objectives transparent and understood.”
Regarding measures individual carriers can take to best navigate such issues, Schoeller said AAL strives to provide transparent and smooth operations, and closely analyzes and monitors port congestion, delay and labor situations across all ports that it calls regularly.
“This demands close communication with all key stakeholders, to ensure safe, fast and efficient operations.
“We further mitigate potential risk by having several terminal/port options within our main regions, to be able to react quickly to any problems and unforeseen circumstances. Due to our regularity in North Asia, Northern Europe and the U.S. Gulf, we offer clients flexible options with predicable estimates in waiting times, costs and operational performance – ensuring that they receive the best performance possible.”
Outside of the MPV carrier and port realm, Schoeller believes local governments and administrative
Port of Tauranga sees labor supply as the big issue when it comes to breakbulk port handling in the region.
Credit: Port of Tauranga
• Closest port to Florida’s largest and fastest growing market
• Over 500,000 SF of on-dock warehouse space and 6,000 linear feet of berth
• Florida’s largest steel port
• Expanding lumber, perishable, container, project cargo, and heavy-lift business
• New and expanded container services with Central America, Mexico and Asia
bodies could better inform and align themselves with the actual demand for breakbulk port operations.
“China does well, as they are the main exporter for breakbulk and project cargo such as steel and equipment. They heavily invest not only in port infrastructure but also in specialized equipment such as cranes, trained personnel, ample cargo lay down and storage area, and road and rail access to the terminals. This is a model we would like to see replicated elsewhere around the world and we are lobbying hard for this at every level.”
That said, he noted that breakbulk and project cargo import markets often find themselves in a difficult position. “They tend to mainly invest in container ports and landside infrastructure –despite needing to import most of their breakbulk and manufactured goods. As a result, the infrastructure for the
import of our cargo segment remains underdeveloped in many regions.”
However, he recognized that it can be difficult for governments to properly assess the demand for required infrastructure, as breakbulk project cargo imports are sensitive to highs and lows and depend on the progress of third-party domestic and inland projects, general infrastructure developments and so on.
Julie Wagener, spokesperson for New Zealand’s largest import port, Ports of Auckland, or PoAL, noted a “slight decrease” in breakbulk volumes over the past six months and expects those levels to “continue in the short term.”
However, having historically had extremely bitter clashes with unions, PoAL is heralding a breakthrough new agreement that will support
breakbulk and other cargo trade. “The relationships with our unions have never been stronger at PoAL, particularly with our largest union, the Maritime Union of New Zealand (MUNZ),” Wagener said. “We have been partnering with MUNZ on a number of projects including a new salary arrangement and rostering schedule for stevedores, and a new Stevedoring Code of Practice.”
Port of Tauranga spokesperson Rochelle Lockley, whose port is both New Zealand’s largest overall and largest export port, said that her team was “not aware of any significant issues” regarding handling breakbulk cargo – “except for the big one: labor supply.”
The robust multipurpose ship freight rates of the past 18 months have left engineering, procurement and construction companies in a predicament. With contracts confirmed 12-24 months before project execution, predicated on time charter rates that were in some cases 50 percent cheaper than the spiking rates of the first half of
AT BREAKBULK EUROPE…
Examining the MPV Fleet
Wednesday 07 June 11:00 - 11:20
Regions: Global
Problem: Robust multipurpose rates prompt calls for a fairer mechanism to spread the risk and reward of seaborne freight costs
Solution: Industry needs to come together to work on transparency and auditability
2022, EPCs are finding that their transportation books just don’t balance in today’s market.
While freight rates have come off their peak, they are still at a comparatively high level. Projects still need to go ahead and transportation needs to be found, regardless of increased rates, so EPCs need to find a way forward.
By Carly FieldsFor Cyril Varghese, global logistics director at Fluor, everything boils down to fairness: “One of the most important discussions we are having with our clients is regarding fair and balanced contracts.” He sees it as ‘fair’ to work in an environment where no stakeholder within the supply chain is disadvantaged. That fairness includes working to market rates; however, that’s easier said than done because EPCs have become used to receiving fixed and firm prices for an agreed upon duration. “Those fixed and frozen rates allow us to be able to plan and budget properly.”
The biggest question that Varghese hears from clients in today’s market is ‘how do you bring transparency and auditability?’ “We need to have
“But we also want to make sure that once the contract is entered into there is some mechanism where, in case rates increase, the partners are compensated for the higher rates and in case the rates decrease our clients receive the benefit of the lower rates.”
That, Varghese said, “leads us into a question about how the industry can move into a conversation where freight is considered a commodity, not as something that you buy upfront and fixed for a fixed duration and without any relief, regardless of market shifts.” This in turn leads to a conversation about whether there is merit in indexlinking certain freight rates, reaching an environment where base rates are valid for three months, six months, or whatever is mutually agreed. “We want to discuss practical issues in terms of looking at a particular index or a particular methodology in terms of a fair and balanced engagement. This allows the shipping lines to increase their earnings when the market goes up and not be disadvantaged because they’ve given a rate with a three-year validity within which the market had an uptick.”
The long lead time for projects makes EPC freight-related planning much more difficult. A manufacturer selling, for example, pharmaceutical goods, has a reasonable projection about demand – they know how they convert into containers, they know where they’re being shipped from, and therefore they can make a plan. “But in an EPC environment, by the time we award a contract, half the purchase orders may not be awarded, and we just don’t know whether these are going to come from Mexico, China, India, Europe or other locations,” Varghese said.
Therefore, in a lumpsum environment, he noted that the risk of cost escalation is purely on the EPC companies; so is the opportunity to reduce cost and maintain profitability. However, when an EPC is spending
its client’s money, it needs to show how it is protecting their interests and maintain complete transparency, accountability and auditability in terms of how the freight procurement works.
“The whole conversation is about how we as an industry start focusing on execution rather than having commercial discussions with one disgruntled party in the equation pretty much all the time. We are also clear that if there is a move from the industry to embrace an index-linked mechanism, it should also be in effect during all cyclical movements of freight, not just during the stage where rates are falling, but also when rates are rising.
“This is a two-way street that should embrace fairness and risk sharing, focused on execution,” Varghese said.
Creating indices is something that research consultancy Drewry Shipping Consultants is no stranger to. In 2011 it created the World Container Index, which focuses on container rate trends. The World Container Index, or WCI, reports actual spot container freight rates for major East-West container trade routes. It consists of eight routespecific indices representing individual shipping routes. All indices are reported in U.S. dollar per 40-foot container. The WCI is a composite of the eight route indices weighted for volume on each of the route’s representative trade. Volume is expressed in million twentyequivalent-units. Data for the index is collected from transport intermediaries – freight forwarders and NVOCCs – based in Europe, North America and Asia. These organizations report the freight rates on which they are moving cargo with a number of major shipping lines. Drewry also publishes benchmark spot container freight rates on over 700 lanes in its Container Freight Rate Insight and provides beneficial cargo owners with contract rate benchmarking services via its Benchmarking Club, as well as airfreight rate indices in its Sea and Air Shipper Insight. Drewry also publishes a Multipurpose Time Charter Index which is updated monthly and is free to access on the company’s web site.
some sound justification, based on historical data on performance and commercial competitiveness, in terms of how we make those decisions. I need to be able to make decisions based on certain metrics or clear parameters,” Varghese said.
However, applying the same approach to the multipurpose vessel sector could be tricky. Speaking to Breakbulk, Dr Ferenc Pasztor, deputy head of research for Drewry, said it is a “challenging sector” for which to create an index. For the WCI and other Drewry freight rate indices, it created a list of port pairs - which total several hundred and are audited monthly by an auditing group. This group sacrifices internal information in return for improved transparency in the overall market. “Despite the fact that the unit of cargo is standardized, it still requires substantial effort to maintain the indices due to the high number of stakeholders involved in the process and the various surcharges that usually come with the cost of transporting a 40-foot container.” he said.
The first stumbling block with an MPV freight rate index is a lack of standardization. Pasztor explained that in terms of process, the first step would be to set up a list of different
cargoes, the typical breakbulk and project cargo items. Step two is to list the port pairs for each cargo –“that will be another long list for each item.” Step three is to then get a committee or audit group together.
“People in the industry would be happy to use a reliable freight rate index but so far seemed reluctant to take the initiative and then put the effort into it in the long term.” Pasztor said. There is also the regulatory side to
consider. Anti-trust regulations might be an issue, so an independent body would need to lead the process.
Returning to the issue of standardization, he explained that spot freight rates on certain routes might be significantly different between carriers depending on the utilization of their vessels and the competition for cargoes, which complicates indexing.
Pasztor felt that for an MPV freight rate index to be successful the beneficial cargo owners/EPCs might have to catalyze it and it would need to revolve around a few select cargo types where size and weight per unit are not too diverse. “If a sufficient number of EPCs were willing to share information confidentially through a neutral third party, such as Drewry, to an agreed set of parameters, a credible index could be created,” Pasztor said.
Carly Fields has reported on the shipping industry for the past 23 years, covering bunkers and broking and much in between.
The International Sustainability Standards Board, or ISSB, has made reporting of Scope 3 emissions mandatory from 2023. This, along with other mandates and internal targets, is putting increased pressure on breakbulk and project cargo businesses to tighten up their greenhouse gas calculation and reporting – with mixed results so far. The process could add to costs but should also increase the preference for low carbon transport options.
As the deadlines for international, national, and corporate net zero and other interim GHG emissions’ targets gets closer, more companies are falling under regulatory calculation and reporting obligations, especially in Europe – where remaining emissions will eventually translate to financial penalties, unless they are removed. Scope 3 emissions include indirect emissions from
Region: Global Problem: Emissions reporting has increased in complexity with 3PLs now mandated to report to shippers
Solution: Forwarders have found novel ways to report to give them an edge over emissions counting laggards
transport and supply chains, as well as emissions “embedded” in acquired materials and assets, which are normally associated with raw material extraction and manufacture.
This means most of the direct Scope 1 (and Scope 2 in the case of electric propulsion) emissions of those involved with the transport of breakbulk and project cargo are the Scope 3 emissions of their clientsthe manufacturers and producers of
breakbulk and project cargoes. Air transport is more emission-intense than road, with seaborne cargo the least polluting, although there are significant variations between subsectors – as well as variations depending on equipment, energy type and operational efficiency.
The need to gather external data means the Scope 3 reporting process is much more complex than Scope 1 & 2 reporting. In recognition of this, the ISSB’s decision to impose mandatory Scope 3 reporting came alongside relief provisions to help companies apply the new requirements. But while the ISSB’s move has added to pressure to report, Alan Lewis, technical director at the Smart Freight Centre, said to Breakbulk it was far from the only motivation, with pressure also coming from the EU, International Maritime Organization, and other external bodies, as well as internal corporate targets.
So far, however, the pressure to report Scope 3 does not yet appear to have extended to the logistics providers themselves within the breakbulk sector, but only to the manufacturers and other breakbulk/project cargo users. Ton Klijn, director of ESTA, told Breakbulk that “[Our members] are not yet required to report Scope 3 data… Our Scope 1 & 2 data is our clients’ Scope 3 data, so as they need to report that data, we have to provide it.”
available and will also be under direct pressure to lower these. Under new EU rules, decided in March 2023, freight and vessel operators will be required to cut GHG intensity by 2 percent from 2025, 6 percent from 2030, 14.5 percent from 2035, 31 percent from 2040, 62 percent from 2045 and 80 percent from 2050, against 2020 baselines. The IMO has more modest global targets. “We are in a transition phase at the moment. The timetable is already laid out –depending on the size of companies. Some are required to report now, and all will be within seven years,” Klijn said.
Scope 3 reporting by logistics firms would involve assessing any GHGs used in the manufacture of the transport they use, such as ships, lorries and planes, and in the extraction of the materials that went to make up those assets. Failure to report Scope 3 here means recycled materials, green energy involved in manufacture or extraction and assets that function as part of a circular economy in the sector will not be flagged or rewarded/penalized.
Klijn added that there was a widely varying take-up of Scope 1 & 2 reporting among carriers, with some reluctant and unaware of what data is required, especially outside Europe. He said it was very much a “top-down approach, with big companies first,” with some in Europe, such as Mammoet, already including the data in their annual report. He expected this would trickle down to smaller companies.
Indeed, in Europe the larger transport companies are facing their own Scope 1 & 2 targets, so will have to have the data
As many freight forwarders and third-party logistics firms are generally asset light, they will need to get the information from the shipping lines, truckers, railroads, and air freighters that they contract to move the shipper’s - their client’s - cargo. And those carriers may not know exactly which ship, truck, or plane will be available at the time of booking vs the time of execution of the project. The result is a need to mix projections based on modelling and extrapolation of past performance with reporting that is based as much as possible on actual data about vessel, load and fuel consumption – a trend that is advancing elsewhere, especially in road transport.
Outside Europe the picture is murkier. Dennis Devlin of Maersk, which has its own internal carbon reduction targets, in the U.S., said most carriers don’t “seem especially keen about [reporting emissions] because it may put many of them at a disadvantage sometimes. Many of the ships in the fleet are old and emit quite a lot... breakbulk and heavylift carriers will follow the lead of the container carriers, and (again, my view) move reluctantly and when pushed to do so (which clients/shippers are doing).”
If adequate data is not yet available from logistics providers, SFC’s Lewis said it was possible to supplement the data with modelling to give best estimates. The key to this is to use
the best possible information and a common, accepted methodology such as ISO 14083 and the GLEC Framework to ensure you’re comparing like with like. Faced with mandatory Scope 3 reporting – in Europe at least – and the threat of tougher regulations to follow, many of the major project cargo manufacturers and breakbulk producers are beginning to ask for Scope 1 & 2 information from those involved in breakbulk logistics. 4D Supply Chain Consulting President and Global Head, Thomas Skellingsted, noted that this was inevitable, as “non-compliance with reporting requirements will lead to huge penalties, impacting the bottom line. This, in turn, will affect the competitiveness of companies.”
4D Supply Chain Consulting said some of its clients had increased their requests for carbon emission information, but that many were not yet prepared. “It is apparent that although [our clients] are generally aware of the requirement, there is a lack of in-depth understanding of how they can help to deliver the required reports,” Skellingsted said. He added that while top management may be aware, this had often not yet filtered down into the company, leaving many without a process to calculate Scope
3 emissions. “There is also a lack of sustainability goals incorporating the Scope 3 reporting and its associated actions to reduce GHG emissions.”
Lewis added that clients were beginning to require reporting for their Scope 3 calculations as a condition of use. “Others are now requesting that carriers calculate and report but are not (yet) using the information in their own processes – the main purpose of this is to raise awareness, understanding and ownership in preparation for future requirements,” he added.
Major engineering, procurement
and construction companies and project cargo shippers have started an initiative through the SFC to push project and breakbulk carriers to commit to some form of Scope 3 reporting. Discussions have been underway for a while based on the GLEC Framework, according to Lewis. The approach is reflected in the recently published ISO14083 that covers GHG emission accounting and reporting for both freight and passenger transport. “More and better quality reporting is happening as each year passes,” he said.
ESTA’s Klijn said most of his member companies first run into the mandatory emissions reporting issue when they quote for state or municipality jobs, as these entities are under direct political pressure to decarbonize. “So, any government contractors will ask for the data from our members,” and in some cases, it will influence whom they award a job to. North European companies also tend to be in the vanguard of demanding clients, he added.
In the long run, only companies that work to these stricter standards will qualify for public contracts. He noted that Europe was far ahead in this aspect. Lewis added that this should put more pressure on breakbulk and project cargo businesses to tighten up their GHG calculation and reporting, so they can effectively answer the inevitable questions that will come from more of their customers and external reporting platforms.
Several companies and organizations are helping facilitate the Scope 3 reporting process by developing emissions calculators. Among these is 4D, which (in addition to reporting its own Scope 1 & 2 emissions) is developing “a sustainability product” to aid its clients’ reporting. Its emissions calculations are based on origin, destination and routing, mode of transportation and cargo weight. Comparisons can be made, and the results used to develop new lower emissions transport strategies.
Focusing on heavy road transport, ESTA is also introducing a CO2 calculator. “Gearing it around heavy transport and the machines that are typically used makes it easier for our members… You can compare different options – surprisingly, sometimes many small trucks emit less than one big one,” Klijn said. He added that lower CO2 options were normally more expensive, while assets with electric plug-in
options as an alternative to diesel had an advantage. Once introduced later this year, “the CO2 calculator should also help members with records and auditing if they report consistently.”
So far, however, there is limited evidence that the reporting and pending penalties are actually changing behavior in favor of lower carbon breakbulk transport options. Klijn said some clients were beginning to choose such options, but in the near future, the most that could be expected is that a client “may award a contract to the runner-up bid if it is lower on carbon.” He noted that some cities have already banned diesel, so electric options were now essential in those cases.
Klijn added that as well as greater efficiency through ongoing tightening
of European standards, carriers were looking at hydrogen as an alternative to diesel, although a refueling network was still required. “The horizon for hydrogen [use in heavy road vehicles] is between now and five years, certainly by 2030,” he said.
Similarly, big sea freight companies are increasingly ordering vessels fueled with lower carbon options such as LNG and more recently methanol, with ammonia also being considered. Maersk and some other ship operators have set internal net zero targets and are already in the process of reporting and addressing their Scope 1 & 2 emissions.
Mario Hess, global head of customer solutions at deugro, said that in the short term, the requirement to report Scope 3 emissions would probably increase competition among logistics
providers as clients sought out providers with lower emissions profiles and solutions in place to report the emissions. “In the longer term, it is likely to become a standard part of doing business, and logistics providers who are able to provide accurate and comprehensive emissions data will have a competitive advantage.”
However, reporting is one thing, reducing is another. Klijn said that eventually all involved would have to pay a penalty for emissions – “that’s the only way it’s going to work – it’s no good just saying it’s better for the environment, there has to be a penalty/ financial incentive.”
Of all the seismic changes triggered by the pandemic, the shift towards more flexible working arrangements has undeniably had the biggest impact on our professional lives.
Most office-based positions in shipping and logistics now allow for some form of hybrid working whereby employees split their time between home and the physical workplace, a model that offers greater freedom and autonomy for staff and cost savings for companies.
“Since all the disruption, working partly from home has certainly become more common,” said Sarah Charles, cluster HR manager AMEA at Svitzer.
Regions: Global Problem: A sparse pipeline of talent could leave the project cargo industry with a large people hole to fill
Solution: Embracing modern hiring techniques and looking for experts from outside the industry could help fill the gap
“A lot of people now prioritize flexibility over salary. And it is something that companies have had to adjust to on a permanent basis. And if you want to attract talent, having that as an option, at least for certain types of positions, is just critical.”
By Simon WestLike most companies in the sector, Svitzer, part of the Maersk Group, has put into practice a hybrid working model where onshore employees have the opportunity to work partly in the office and partly from home, said Charles, whose regional HR department is responsible for recruiting and training some 1,400 employees.
“It allows you a better work-lifebalance, which usually means you are a better colleague and employee. Some have family commitments and the added flexibility might enable you to spend more time with them and still continue to work – it is a huge benefit,” Charles said. “Of course, not all workers in the shipping and logistics sector
have the option to work remotely, it all depends on the specific role.”
At Geodis Freight Forwarding, the move to hybrid working has been “almost painless,” said senior vice president for projects, Luke Mace. “I can safely say that our customers have noticed no difference in the quality of our output,” he told Breakbulk.
Nor has the France-based forwarder had to make allowances to those unable to work remotely: “We have seen more of our employees missing their onsite or outdoor work during the confinement period than employees complaining about not having the opportunity to work from home,” Mace said. “There are elements of concern regarding over-working, and we are working towards ensuring that all our
employees are aware that productivity and efficiency does also require an adequate work-life balance,” he added.
Singapore-headquartered AAL Shipping has implemented a “moderate form” of hybrid working whereby the heads of each office worldwide liaise with their own teams and propose rotas and solutions that best fit their regional regulations, cultures, colleague needs and business objectives – an approach that has been well-received by employees, said managing director Christophe Grammare.
But, he added, as more day-to-day communication switches to online, the challenge of “disconnection” remains. “AAL puts a lot of emphasis on creating those personal connections between our teams, either through formal exchanges with other offices, in-office days (a day where the whole department is in the office), visiting crews on board, visiting other global offices or taking part in informal activities and events like celebrations or sports,” Grammare said.
Hybrid working is just one way that Covid has turned traditional employment models on their head. A report by research firm Gartner said the pandemic has had a “lasting impact” on the future of work, with organizations facing “historic challenges” including a competitive talent landscape, an exhausted workforce and pressure to control costs.
The report, which covers all sectors and not just shipping and logistics, identifies several trends to watch out for – how an organization responds could determine its status as an “employer of choice.” Among the work-related developments listed in the report is the pursuit of “nontraditional” candidates, a trend that has been catalyzed by the pandemic.
More than ever, employees are charting nonlinear career paths, with some 56 percent of candidates applying for jobs outside their area of expertise, Gartner said, with that
figure slated to rise in the coming years. To fill critical roles in the future, organizations will need to become comfortable assessing candidates purely on their ability to perform the role rather than their credentials and prior experience, the report added.
Over the last four years, Charles has seen a number of candidates moving into shipping with no prior experience in the industry: “I personally think that is always a great idea – to get a bit of diversity of thought, bringing people in from different industries. And I think it is happening more and more,” the executive said. “Anything to do with tech, IT, decarbonization or green initiatives – the shipping industry is definitely hiring a lot of people from outside. If you want to bring about change, you have to do things differently.”
David Cohen, a London-based senior global talent alchemist at Alchemy Global Talent Solutions, also believes companies should be putting in the time and effort into pursuing nontraditional candidates, but questioned whether the fast-paced and demanding environment of shipping and logistics lends itself to such a practice.
“Most companies (in the sector) simply do not have the time or infrastructure to hire non-experienced candidates and provide them with adequate training,” the executive said.
A quick LinkedIn analysis of appointments at a major European forwarder over the last year appears to back Cohen’s thesis: besides internal promotions, the vast majority of its new hires came from direct competitors.
According to the Gartner report, while the pandemic has upended traditional models of work, it has also resulted in isolation and workforcewide erosion of “soft skills”, such as negotiating, networking, speaking confidently in front of crowds and developing the social stamina and attentiveness required to work long hours in an in-person environment.
Charles, though, believed such skills were actually put to the test during Covid. “Suddenly trying to put your point across or presenting virtually is a lot harder than doing it face to face. Negotiating, speaking with confidence, trying to articulate your point – you really need those skills to deliver on your role.”
The pandemic, meanwhile, has also driven innovation and the switch to digital: one of the trends featured in the Gartner report centers on the use of artificial intelligence and machine learning to help streamline the recruitment process.
AI-based software is increasingly being deployed by HR professionals to sift through large quantities of documents such as online resumes and social profiles and to quickly identify the best applicants for a job. The technology can rank and shortlist candidates, conduct video interviews and even scrutinize a potential employee’s demeanor, facial expressions and tone of voice to determine their suitability for a role.
Sven Hermann, founder and managing director of logistics
consulting firm ProLog Innovation, believes many of the larger shipping and logistics companies are already using AI techniques as part of their selection processes.
“AI helps HR and recruiters discover talent, reducing the time it takes to get new employees onboard, and will extensively automate their workflow for more accurate, fair and efficient hires within the next years,” Hermann told Breakbulk
“By using AI-based recruitment platforms, companies can benefit from a more diverse talent pool and better uncover relevant soft skills as well as develop more successful matching processes. There are already a growing number of AIbased options and those will have a huge impact on how organizations plan their workforce, develop their employees and create the future working environment.”
But some HR professionals speaking to Breakbulk questioned whether the AI-powered techniques currently on offer are suited to the sector. Charles said it was a “surprise” to hear that shipping companies were using the technology in their hiring processes.
“It is very handy for large organizations doing bulk recruitment – if you are setting up a call centre and you have got to hire 500 people, that is when AI would be really beneficial. For us, we still mostly hire in the traditional ways – through targeted adverts on LinkedIn for example, or we reach out through CVs. Our colleagues globally are beginning to experiment with AI to introduce in the future.”
According to Gartner, organizations that choose to use these emerging technologies could face pressure to get out ahead of government regulations on privacy. The research firm’s report urges companies to be more transparent by publicizing their data audit while giving candidates the choice to opt out of AI-led processes.
Gartner also pointed to how organizations are using AI to gather data on their employees’ physical and mental health, family situations, living conditions and even sleep patterns in a bid to respond more effectively to their needs. Such practices, which have the potential to violate boundaries around personal and private information, are creating a “looming privacy crisis,” Gartner says.
Laura Voda, a partner at Fichte & Co., a Dubai-based law firm specializing in maritime and shipping, said transparency in HR was “paramount,” and that job applicants must be informed from the get-go that details of their personal life could be revealed to a potential employer. Organizations should have mechanisms in place allowing applicants to consent to this disclosure.
“If we look into the personal data regulation, we see that most jurisdictions that have enacted such regulation follow a model: informed consent, doubled by safeguards on usage, controlling and processing personal data,” Voda said.
“Nevertheless, I must admit that such usages of technology could lead to a privacy crisis, because AI may deliver information that is not qualified as “personal data” in the sense of the existing regulation, such as taste in clothing, preferred places to spend the weekend, expenditure habits and web surfing preferences. This is what actually creates an ethical dilemma.”
She added: “The solution is indeed enacting appropriate regulation, however this will not by itself create a hedge. Further education on digital literacy in the employment market – especially for job applicants – will make a significant difference too.”
On the heels of some inflated oil prices, hopes are high along oil and gas project cargo pipelines for a resurgence in exploration and production. But all that glitters is not black gold.
It comes as no surprise that oil and natural gas are America’s leading fuels today, and the U.S. Energy Information Administration reports that oil and gas will continue to be the front runners in 2050, according to its Annual Energy Outlook, or AEO, released in March 2023.
The AEO said that the U.S. will also remain a net exporter of petroleum products and of natural gas through 2050, under all case scenarios. However, that doesn’t
Region: North America
Problem: Confirmed need for U.S. oil and gas through to 2050 could get tied up in regulatory red tape
Solution: Project movers need to be ready to serve a fossil fuel energy revival when permits finally flow
mean there will be a rush of new exploration and production.
The Energy Information Agency expects U.S. production of crude oil to grow a little over 4 percent in 2023 and expects natural gas production to stay flat.
By Lori MusserPort Houston, the largest breakbulk and project cargo complex in the U.S., keeps close tabs on the oil and gas industry. Spokesperson Lisa AshleyDaniels said to Breakbulk: “Although domestic demand is expected to stay flat, international demand for U.S. crude product is rising. It is expected that production will increase while exploration blows off some steam following 2022 activity.”
Higher crude oil prices could pave the way for additional rigs in 2023. At the end of March 2023, the U.S. had 83 more active rigs than it had at the same time in 2022.
Because the flow of energy related project and general cargoes
through Port Houston is highly correlated with the demand for new oil and gas production, when permitting and rig count increase, there is also an increase in cargo.
to more than 1 percent of world oil supplies, worsening an already low supply.
Eversole is the American Petroleum Institute’s executive vice president and chief advocacy officer. She said the API wants U.S. policymakers to find ways to bolster U.S. energy production, with “smart, bipartisan energy policymaking that puts the focus on long-term solutions and stability,” to ensure U.S. energy security.
She acknowledged that unforeseen events, more energy cuts and foreign action are outside of the control of the U.S., but, she said, there are ways to “help insulate America from decisions made half a world away.”
A second lease sale is scheduled for late September. It is mandated, as was the Lease Sale 259, by the U.S. Inflation Reduction Act, or IRA.
The offshore planning and production industry has expressed concern that there are no other future lease sales scheduled, ever.
Garrett Golding is a business economist in the Research Department at the Federal Reserve Bank of Dallas, or Dallas Fed. He said to Breakbulk: “It’s hard to expect any significant resurgence in U.S. oil and gas exploration this year. What we’ve seen from company announcements thus far likely leads to a repeat of 2022, with steady increases in drilling activity and a slightly lower year-over-year increase in production volumes.”
After the first weekend in April 2023, when OPEC+ announced a collective production cut of more than 1.2 million barrels of crude oil per day following Russia’s move to cut 500,000 starting in March, oil prices surged to the highest level since January.
Amanda Eversole called it a Sunday surprise. And not a particularly welcome one. The new cuts add up
From the API’s perspective, bolstering American energy leadership includes reforming infrastructure permitting processes; increasing access to offshore resources; supporting American production; and taking steps to help unlock access to capital.
Eversole said begging other countries to produce more oil or cutting U.S. energy exports is not an answer because these actions would further reduce America’s leadership in global markets and hurt allies.
In late March 2023, the U.S. Bureau of Ocean Energy Management, or BOEM, held Lease Sale 259 for the Gulf of Mexico. BOEM reported 32 participants, and US$310 million in total bids, for tracts covering 1.6 million acres in the Gulf.
Pietro Ferreira, senior regional analyst, Americas, at the Energy Industries Council, is more optimistic. He said: “Looking at the exploration side, the results of the Lease Sale 259 … demonstrated there is enthusiasm for E&P work in the Gulf of Mexico. BOEM received a total of 353 bids for 313 blocks, with Chevron and BP winning various blocks. Looking ahead, the IRA provision associating new offshore wind leases to oil and gas auctions is also a good sign for future E&P work.”
There are Gulf projects in the offing. “In the short term, offshore oil and gas production in the Gulf of Mexico will see a boost with new projects coming online, such as BP’s Mad Dog II and Shell’s Rydberg and Dover tie-backs. Indeed, operators such as Shell, Chevron, BP and Talos provide a robust portfolio of new field development projects, which will keep the supply chain busy in the coming years,” Ferreira said. Activity is also ramping up in the Permian basin and Haynesville shale, driving investment in new midstream infrastructure to accommodate increased output, according to Ferreira.
However, for the better part of a year now, the U.S. has not had a fiveyear offshore leasing program. The program’s lapse creates “risk for future declines in production from one of the country’s most important oil and natural gas production zones – given that offshore oil made up nearly 15 percent of U.S. production in 2022, and the vast majority of it came from the Gulf,” according to API blogger Mark Green.
Not knowing where and when lease programs will be conducted hamstrings U.S. oil and gas producers and their supply chain partners. A fiveyear plan would provide a roadmap and some predictability – vital to an industry with long lead times and high price tags like offshore oil and gas.
An Energy & Industrial Advisory Partners’ study entitled The Economic Impacts of a 5-Year Leasing Program Delay for the Gulf of Mexico Oil and Natural Gas Industry, confirmed that a lapse in the leasing program could signal disaster for U.S. energy security and could eliminate jobs by the thousands. It could result in no lease sales taking place for several years. “Leasing is critical to the oil and natural gas industry. For example, before a lease is obtained, oil and natural gas
companies cannot drill exploratory wells. This potential delay is projected to significantly impact Gulf of Mexico oil and natural gas industry activity. This reduction in leasing activity could lead to reduced industry spending, supported employment and GDP, government revenues, and oil and natural gas production,” according to the EIAP study, which was commissioned by the API and National Ocean Industries Association.
A Dallas Fed energy survey published in June 2022 collected comments from exploration and production firms on the state of the industry. On the topic of supply chain effectiveness, some companies reported significant delays in obtaining materials and services, as well as costs that were
increasing substantially. There were concerns that supply chain issues were materially impacting capital allocation decisions.
Other factors mentioned that might shutter projects included the Biden administration’s so-called “anti-oil, anti-gas, anti-pipeline” stance, a new level of hesitation from investors, and ongoing labor shortages. However, this year’s approval of ConocoPhillips’ massive Willow oil drilling project on Alaska’s North Slope flies in the face of much of that.
One respondent summarized escalating uncertainties in the industry as being strictly aboveground issues: politics, windfall profits tax, surtaxes, leasing bans, product prices, inflation, supply times, material availabilities, contractor availabilities and capital availability.
Survey respondents expressed concern about making obligations based on high prices that would have to be fulfilled when low prices return, especially because industry prices, once adjusted for inflation, aren’t that high.
“The industry is still firmly in the mode of generating returns and maintaining capital discipline and not ramping up drilling activity in response to higher oil prices. Additionally, the inventory of quality drilling locations across U.S. basins is dwindling. These two factors mean production growth in
“WE HAVE SEEN PROJECT ACTIVITY IMPACTED BY THE INFLATIONARY SURGE IN CAPEX COSTS, WHICH HAS LED FINAL INVESTMENT DECISIONS TO BE POSTPONED ACROSS GLOBAL OIL AND GAS MARKETS.”BP’s Mad Dog II Argos platform arriving in Texas. Mad Dog II is one of several projects coming online in the Gulf of Mexico. Credit: BP
the U.S. is slowing down and will likely level out and start to decline in the next few years,” Dallas Fed’s Golding said.
The Energy Industries Council’s Ferreira added: “We have seen project activity impacted by the inflationary surge in capex costs, which has led Final Investment Decisions to be postponed across global oil and gas markets as developers work on optimizing their projects. I would also highlight the relevance placed on energy security following the Russian invasion of Ukraine, which has put pressure on producers to ramp up output to meet demand.”
On the positive side, “the oil and gas industry will likely enter 2023 with its healthiest balance sheet yet and with continued capital discipline. This could help companies overcome the energy underinvestment of recent years and help enable an accelerated energy transition,” according to Port Houston’s Ashley-Daniels.
The API shared with Breakbulk that it is currently tracking more than 40 regulatory actions that could impede the U.S. oil and natural gas industry’s license to operate and to distribute energy. A mountain of federal regulatory proposals will, undoubtedly, slow overall energy production and delay the approval of oil and gas infrastructure projects.
Despite solid prices, some new oil and gas projects will be impeded by a confluence of many factors, chief of which is political will. Nevertheless, the sheer importance of the industry to the U.S. will ensure that oil and gas will continue to be America’s leading fuels for decades to come. The project pipeline may embrace growing volumes of renewable energy components, but it would do well to save some room for its traditional energy project cargoes too.
Based in the U.S., Lori Musser is a veteran shipping industry writer.
The Biden administration’s climate action agenda may not have fully considered the carbon footprint of oil produced in the Gulf, and its possible role in the energy transition. According to Houston-based McKinsey & Company, the Gulf has some of the lowest emissions per barrel of all major basins in the world.
A 2022 McKinsey report said: “The lower-carbon potential of the Gulf of Mexico is determined by the Scope 1 and 2 emissions that are associated with the direct and indirect greenhouse gases released from development and production operations. In the oil and gas value chain, these steps are where the source of supply matters most,” McKinsey said. Conversely, emissions from midstream and downstream work such as refining and transportation, are largely independent of the oil source. “The Gulf releases less than half of the emissions per barrel compared with other major basins … That potential matters to the many oil and gas companies that are investing in the
Gulf of Mexico, especially to those that have announced net-zero emissions targets,” according to the report. The Gulf still has two-thirds of its estimated recoverable volumes available, a great deal of existing infrastructure and project pipelines, and it can therefore “ensure continued supply during the transition to netzero emissions. The low carbon oil of the Gulf of Mexico can help fill the supply gap during the energy transition, while helping to balance the goals of policy makers and oil companies as they meet the world’s energy needs and prepare for a new energy future,” the report said.
Some of the Gulf’s low-carbon advantages include the proximity of production to market (minimizing routine flaring), efficient designs (minimizing methane leakage), high well throughput (reducing energy-intensive new starts), and active decarbonization efforts, according to McKinsey.
If the transitional demand is supplied by those with higher carbon product, the U.S. would be a net loser.
Arms have been opened wide as the U.S. races to embrace new hydrogen production. That is good news for supply chain members who have been anticipating an upswing in the movement of components needed to build hydrogen production capacity in the U.S.
Hailed as the fuel of the future, hydrogen gas is the simplest of elements – colorless, odorless, tasteless, yet highly flammable. It is already used in many industries, from chemicals to electronics, and from foods to glass making. It fuels vehicles and helps generate electricity. Hydrogen is readily available, with the
Region: North America Problem: Long-term need for hydrogen has not translated into projects in the short term Solution: The importance of the fuel for the world’s decarbonization means that the pipeline will soon start to materialize
right infrastructure. It could provide up to 12 percent of global energy demand and account for 10 percent of reductions in carbon emissions by the year 2050, according to the International Renewable Energy Agency, or IRENA.
Some industries are hard to electrify. In IRENA’s World Energy Transitions Outlook: 1.5°C Pathway study, it estimated that only 52 percent of end use can be electrified, and that 25 percent of CO2 emissions cannot be abated through the use of renewables or electrification, despite the use of very efficient energy processes.
“It is estimated that using hydrogen for heavy industry and transport that cannot be electrified can, however, reduce emissions by 12 percent and 26 percent respectively,” according to Barbara Jinks, program officer for green gas at IRENA.
Thursday 08 June 12:00 - 12:30
The American Petroleum Institute, or API, has some concerns about the U.S. Department of Energy’s focus on green hydrogen.
Rachel Fox is API’s policy advisor on Low-Carbon Energy, API Natural Gas Markets. She said to Breakbulk: “The expansion of a hydrogen economy, including all forms of low-carbon hydrogen production, is considered to be critical to meeting any meaningful emissions reduction goals. As our industry advances emissions reduction efforts, it is vital that the necessary energy infrastructure is developed.”
In oil and gas, hydrogen production infrastructure already exists. The industry is an established supplier of feedstock for hydrogen production, consumer of hydrogen, and leader in CO2 management. It expects to expand that role, producing, transporting, and consuming low-carbon hydrogen, according to the API.
“The natural gas and oil industry is working with industries across the value chain to urge policymakers to advance a transparent, timely and consistent permitting process and support American energy infrastructure,” Fox added.
The U.S. Department of Energy, or DOE, unveiled its Draft National Clean Hydrogen Strategy and Roadmap last fall, calling clean hydrogen an important element along the nation’s path to decarbonization.
The DOE’s plan was fathered by BIL, the Bipartisan Infrastructure Law. BIL outlined major investments to be made in clean hydrogen, including: US$1 billion toward an electrolysis program; a half billion dollars to assist clean hydrogen manufacturing and recycling; US$8 billion for regional clean hydrogen hubs; and a hydrogen production tax credit, among other funding and incentives.
This funding is only a start. By some estimates, generating enough green hydrogen to meet only 25 percent of global energy needs would require more electricity than the world currently makes. BloombergNEF, for example, estimates that 25 percent would necessitate an investment of US$11 trillion in production, storage and transportation infrastructure around the world.
Prioritization will be critical to ensure clean hydrogen is rolled out as an effective decarbonization tool in the U.S. The DOE set out three priorities: to target strategic, highimpact uses for clean hydrogen (specifically, the industrial sector, heavy-duty transportation, longduration energy storage to enable a clean grid, and exports); to reduce the cost of clean hydrogen (leveraging the Hydrogen Energy Earthshot launched in 2021 to catalyze innovation and scale, stimulate private sector investments, and spur development along the hydrogen supply chain); and to focus on regional networks – clean hydrogen hubs.
The DOE strategy acknowledged that heavy investment and action in the near, mid, and long-term are needed to lay the foundation for broader clean hydrogen adoption, to drive down cost, and to increase scale sustainably.
U.S. ports are looking at opportunities to move hydrogen infrastructure cargo, transport finished hydrogen and provide carbon capture alternatives to hydrogen producers.
Jeffrey Pollack is chief strategy and sustainability officer for the Port of Corpus Christi. He described several port MOUs supporting energy transition. One is with Howard Midstream Energy Partners, LLC to convert Howard’s Javelina refinery services facility into the region’s first carbon-neutral (blue) hydrogen production plant. The transition would be supported by the facility’s existing pipeline connectivity to all six local refineries. Javelina controls sixty-million-cubic-feet of steam reformer hydrogen production per day.
Another project aims to develop renewable energy infrastructure on Port of Corpus Christi property to support the production of green hydrogen – and potentially provide renewable power directly to the port and its customers. The port envisions a renewable energy and clean-fuel hub that includes solar facilities, battery storage facilities and the electrolyzer facilities that create green hydrogen.
One of America’s largest green hydrogen projects is the conversion of Intermountain Power Project’s coal-fired plant in Utah. Construction began in 2022. The new plant, which will be operational using natural gas and 30 percent green hydrogen in 2025, will eventually transition to 100 percent hydrogen fuel, according to Intermountain Power Agency General Manager Cameron Cowan.
To ensure hydrogen is continuously available for grid-scale electricity generation, underground salt caverns will be used for storage of the hydrogen produced by electrolysis.
While green hydrogen is getting a lot of attention because it is produced in a climate-neutral manner from the electrolysis of water, hydrogen can be produced in other ways. Some are “cleaner” than others.
The World Economic Forum outlined the differences. Grey hydrogen is a common form generated from natural gas through the “steam reforming” process. Blue hydrogen is low-carbon – carbon generated from steam reforming is captured and stored, typically underground. Black or brown hydrogen is produced from bituminous or lignite coal, respectively, and typically generates CO2 or carbon monoxide that is not recaptured. Other forms include pink hydrogen (created through electrolysis of water, like green hydrogen, but via a process powered by nuclear energy rather than renewables);
turquoise hydrogen (produced through the process of methane pyrolysis, which generates solid carbon); and yellow hydrogen (made through electrolysis using solar power, although the term is evolving and may include hydrogen produced through mixed processes).
Heavy investment in low or no-carbon hydrogen production plants will create
a pipeline of project cargo. Input cargo and components will be needed by new hydrogen production plants, as well as by the new and expanding renewable energy facilities that will provide the energy to produce green hydrogen, or indeed any clean hydrogen. Components include industrial gas storage, compressors, liquid storage tanker, and vacuum pumps. However, most new projects will be years in the making; there is very little green hydrogen infrastructure now.
Yet, as the globe stumbles through its clean energy transition, clean hydrogen may be the answer, especially for hard-to-electrify sectors such as transportation and heavy industry, according to Francesco La Camera, IRENA’s directorgeneral, in a report last June.
IRENA’s World Energy Report for 2022 is a geopolitical survey that indicated three quarters of global green hydrogen can be expected to be produced and used locally. That indicates a demand for new
infrastructure the world over, not just in traditional energy-producing nations. In fact, green hydrogen is expected to be most economical in locations that have abundant renewable resources, space for solar or wind farms, and access to water, along with, of course, the capability to export. American hydrogen fuel cell company Plug Power and global engineering, procurement and construction company McDermott have proposed a scalable solution to accelerate infrastructure development. They have collaborated to deploy green hydrogen with a concept design for a 1GW plant. Built around PLUG’s PEM electrolyzers, the design integrates modular technologies and optimizes the balance of plant through standardization and centralization, a best practice in many scale projects across industries today.
Based in the U.S., Lori Musser is a veteran shipping industry writer.
The saturation of container terminals stretching along Singapore’s southern coast from its city-center westward to Tuas port leave no doubt regarding the country’s continued leading position in the container sector, in regular rivalry with Shanghai and Hong Kong. The volume of container traffic,
along with the related massive terminal footprint, can tend to overshadow other sectors that contribute to the diversity of the nation’s transportation mix, including the tanker trade, air freight, logistics, cruise ships, bunkering, the offshore sector, and operations that facilitate the project and heavy-lift sector.
By Thomas TimlenThe diversity of project and heavylift operations conducted in Singapore is as varied as the multiple activities driving demand for these services. The offshore sector is one of the key businesses generating demand, yet even here, provision of transport covers only part of the story. Singapore’s
are repositioned in accordance with the seasons and their owners’ whims.
While there are several providers of out-of-gauge transport services based in Singapore, there is only one gateway capable of facilitating such operations: Jurong Port, or JP. “Jurong Port is the only gateway port for breakbulk and project cargo entering or departing Singapore,” Walter Lin, general manager of general cargo and the project logistics hub at JP told Breakbulk. Lin pointed out that the largest items that the country’s container terminals can handle are those that can be lashed to flatrack containers; anything beyond those dimensions arriving or departing by sea must be routed via JP.
port, offering users a staging ground where operations can be performed with professional support. With over one hundred acres available in a free trade zone, customers can conduct pre-deployment testing of equipment and vessels, equipment fabrication and other activities, within a 24/7 operating environment.
One example involved the assembly of a subsea cable carousel. The carousel’s parts were shipped in containers and arrived at a PSA terminal. From there the containers were moved by road haulage to JP where the carousel was assembled and then loaded on board a cable-laying vessel for operations in the region.
As Singapore’s only multipurpose port, with connectivity to more than 300 ports worldwide, JP has become a hub for project logistics, enabling the consolidation of cargoes from various origins for onward forwarding throughout the region.
ambitious domestic infrastructure development also generates demand for the project and breakbulk sector, including extensive expansion of the nation’s underground railway system and expressways. The wealth and prosperity present in Singapore and neighboring countries also drives demand for the transport of luxury goods too large to fit within containers, such as yachts that
Since the days of Singapore’s independence more than fifty years ago, JP has been the main point of entry and is today in the midst of a ten-year services enhancement initiative. Having already established its initial homeport area catering to complex land and vessel operations supporting offshore and onshore projects, the port has more recently added its Offshore Marine Centers, OMC1 and OMC2. OMC1 primarily handles fabrication, load outs and maintenance, repair and overhaul (MRO) for offshore vessels and equipment, while OMC2 offers fabrication of heavy modules, load outs and MRO for deep draft vessels with expanded features coming on stream this year.
Lin pointed out that such operations establish JP as much more than a
The pursuit of renewable energy has also generated business at JP. The port’s connectivity with Australia, Taiwan and Vietnam has benefitted carriers engaged in the development of offshore wind farms. During the past two years JP has facilitated the movement of wind turbines, towers, hubs and blades to the expanding offshore wind farms off Taiwan’s western coast. Closer to home, JP has been the conduit for the movements of underground train carriages serving Singapore’s expanding train network, as well as the tunneling equipment used for the construction of new stations and track.
Recent consignments carried by transport providers demonstrate the diversity of activity in Singapore, as AAL Shipping’s General Manager and Global Head of Chartering Marc Willim told Breakbulk. “AAL has been involved in shipments of wagons for Mass Rapid Transit (MRT) systems as well as Tunnel Boring Machines (TBM) for both MRT and Expressway Tunnel extensions in the past. Furthermore, we are regularly transporting yachts out of Europe and the Persian Gulf to Singapore, which then sail to final destinations in Southeast Asia, including Thailand, Indonesia, and beyond.”
“For this shipment, the planning required from AAL as the carrier and in particular our engineering department was extraordinary, not only because of the sensitivity of the cargo, its intended final use, and dimensions - at 6 meters by 6 meters by 11 meters, with a unit weight of almost 300 metric tonnes - but also because the cargo was manufactured in a local shipyard with very high safety regulations, far above the usual requirements for port operations. AAL was successfully able to meet these stringent requirements, thanks to our strict operational standards and ISO certifications.
“The cargo handling and cargo lifting both sides were carried out by one of our fully owned A-Class vessels and its 350 metric tonnes Safe Working Load on-board cranes and spreader bars, available as part of the standard rigging equipment.”
to-stern transshipments as well as challenging Mediterranean mooring, the latter not only involving specialized skillsets but also authorization from harbor authorities for blocking movements of other vessels for the duration of the operation.
Looking ahead, the indicators are good for sustained activity at JP and for the port’s users. Cargo is expected for the expansion of the underground train network: during the next seven years the country has set a target to expand the rail network to about 360 kilometers. At that length, Singapore will have a total rail length that is longer than Tokyo or Hong Kong, and be on par with London and New York City. The project will call for movements of tunnel boring machinery and train carriages.
Regarding Singapore’s multifaceted role in the offshore sector, Willim highlighted the country’s activity in the manufacture and export of project cargo. “In September 2022, AAL was entrusted by one of its U.S.-based oil and gas clients to transport four locally manufactured Blowout Preventer stacks, used to control abnormal pressures in the well bore while drilling the well, from Singapore to the U.S. Gulf.
Willim continued that while Singapore operates one of the largest container ports globally alongside what’s often considered the first choice for replenishing bunkers in Asia, the number of actual projects in Singapore itself is rather limited. This highlights the innovative approach that JP has taken to offer services well beyond the limits of discharging and loading operations of a port, to provide a staging ground in a free trade zone that supports operations throughout the region.
In addition to commission, fabrication and assembly works at the port as a staging ground, the port also caters to decommissioning operations, plus it can handle stern-
The offshore sector has traditionally had a strong presence in Singapore, and as its stakeholders continue to support the oil and gas sector many are now simultaneously involved in sustainable energy initiatives. Here, Taiwan’s offshore wind farms are set for continued expansion: In December, Taiwan’s Bureau of Energy confirmed that the Haiding 2 windfarm had been successfully awarded 600 MW grid capacity following the first phase of Taiwan’s Round 3 auctions. This set the stage for the signing of new joint venture partnerships aimed at expanding development, which is expected to have a positive effect on further related activity at JP.
Singapore has been laying the groundwork for increasing project volumes for some years. Now, it’s ready to reap the benefits of projected breakbulk and heavy-lift cargo growth, both domestic and from the wider Asia region.
Thomas Timlen is a Singapore-based analyst, researcher, writer and spokesperson with 31 years of experience addressing the regulatory and operational issues that impact all sectors of the maritime industry.
Post-pandemic momentum for project activity in the Middle East region has not slowed; if anything, it has continued to grow at an incredible pace. From brownfield emission-reducing facilities and gas pipeline construction to subsea transmission systems, the region is realizing its oil diversity ambitions faster than ever before.
Thursday 08 June 12:00 - 12:30
Region: Middle East Problem: The Middle East needs to meet demand for long term alternative fuels while still supplying fossil fuels Solution: Projects are progressing in tandem to desulphurize fossil fuel plants and construct hydrogen facilities
Underneath it all is a mission to diversify economic resources, become more sustainable, and carve out a place in the post-oil world. The Middle East has long been a major player in the global oil and gas industry and remains one of the world’s largest producers and
exporters of oil and gas. However, this dependence on fossil fuels alone has made it highly vulnerable to supply disruptions and price shocks in the past. Not to mention, with oil and gas resources depleting, economic and energy diversification is critical for a secure future.
Countries in the region have already realized that diversification of the energy mix will help reduce vulnerability and make them more energy secure. Beyond that, the same strategy is powering the region’s economic diversification as well. By investing in renewable energy, upgrading existing infrastructure, and developing downstream, countries across the Middle East are creating new sources of income and jobs.
Climate change is another key factor driving project activity in the region; there’s deep-seated awareness of the need to address the challenge. The Middle East is particularly more vulnerable to the impact of global warming and investments in renewable energy and other sustainable practices will help to mitigate environmental impact, enabling the region to contribute to the global efforts to combat the challenge.
From a purely business standpoint, the oil and gas industry in the region has a lot to gain from investing in renewables as it faces increasing competition from alternative sources of energy. Therefore, to remain competitive, Middle Eastern countries, particularly the UAE, Saudi Arabia, and other GCC nations, are investing in technological innovation to improve the efficiency and sustainability of their operations. All of these factors are shaping the energy dynamics of the region and adding to the post-pandemic momentum for project activity being seen today.
This year got off to a strong start for fuel-related projects with many multimillion-dollar deals announced and energy projects in the works across the region. In the UAE, projects are led by ADNOC, which recently awarded nearly US$140 million worth of total contracts for the pre-construction works of its mega Hail and Ghasha development.
The project is a significant initiative for the UAE, with the potential to deliver economic, technological, and environmental benefits that will position the country as a leader in the global energy sector while ensuring the long-term sustainability of the Emirate’s hydrocarbon resources. ADNOC has also contracted the National Petroleum Construction Co and its partners Saipem and China Petroleum Engineering and Construction Corp to the tune of US$60
million to initiate pre-construction works related to the offshore facilities of the master development.
Petrofac, a UK-based company listed on the London Stock Exchange, has been awarded an engineering, procurement, and construction lumpsum contract by ADNOC in the UAE. Petrofac will design and install new facilities at the Habshan production complex, located in the southwest of Abu Dhabi, which will optimize operations and curb methane and greenhouse gas emissions. The project involves designing and installing state-of-theart facilities to ensure sustainable and eco-friendly energy production. As part of the Habshan production complex’s expansion plans, a pipeline will be constructed to transport gas from the facility to the Fujairah liquefaction plant, which is expected to produce up to 9.6 million tonnes annually by 2027.
A spokesperson at Petrofac, said: “The MENA region is an important market for Petrofac. We are supporting ADNOC with the delivery of facilities for their Habshan Complex, providing engineering, procurement and construction services to optimize operations and reduce methane and greenhouse gas emissions.
“The UAE is an operational base for many of Petrofac’s projects. Putting in-country value at the center of our delivery, we are procuring a large portion of goods and services from local vendors and suppliers. This simultaneously creates a huge number of local jobs while training and expanding the capacities of the local people.”
Highlighting the same level of hyperactivity in the region’s green fuel sector, Saudi Arabia’s ambitious NEOM Green Hydrogen Co selected Larsen & Toubro, or L&T, to serve as the sub-EPC contractor for the country’s massive hydrogen plant. L&T will be responsible for executing power grid and power generation works for the plant on an EPC basis. The green hydrogen plant is expected to be huge in size and scope, producing up to 650 tonnes of green hydrogen per day, which would be used primarily for transportation and other industrial applications.
Representing a major investment in renewable energy, the mega project is part of Saudi Arabia’s efforts to reduce its dependence on oil and diversify its economy. Once complete,
it will contribute to the creation of a sustainable hydrogen ecosystem in the region, while supporting the development of a new clean energy industry in Saudi Arabia. With broader implications for the global energy sector, the project demonstrates the potential of green hydrogen as a viable alternative to fossil fuels.
Carrying the momentum, Technip Energies, a French engineering and technology company, has been granted a contract to upgrade the sulfur recovery facilities at Aramco’s Riyadh Refinery, under its ongoing long-term agreement with the Saudi Arabian oil company. The contract will involve the installation of three new tail gas treatment units, which will improve the performance of the three existing sulfur recovery units to meet more stringent regulations for emissions. With a recovery efficiency of over 99.9 percent, the upgraded facilities will comply with the new regulations and enhance the refinery’s overall operational efficiency.
Other GCC nations are also investing in fuel resources. Asyad Shipping, which is a subsidiary of Oman’s stateowned Asyad Group, recently inked a deal with Hyundai Samho Heavy Industries, a South Korean shipyard, to construct two advanced liquefied natural gas, or LNG, carriers. As per the agreement, the new fifth-generation LNG carriers will be supplied to
the group, marking a significant milestone in its expansion plans to boost energy logistics capabilities and cater to rising global demand.
Meanwhile, the Kuwait Oil Company, or KOC, has granted maintenance contracts to two local companies for critical oil facilities. The contracts, worth around $176.2 million combined, will be provided by Bader Almulla and Brothers Co. and HOT Engineering and Construction Co. respectively. Bader Almulla and Brothers Co. will be responsible for providing maintenance services for KOC’s South and East Kuwait facilities under a US$74.6 million contract, while HOT Engineering and Construction Co. has been awarded a US$101.6 million contract for maintaining KOC’s South Kuwait facilities. These maintenance contracts are expected to help KOC maintain the efficiency of its upstream industry operations.
Saipem, an engineering and construction company, has also announced new contracts in Egypt and Guyana, with a combined value of US$1.2 billion. The first contract was awarded by ExxonMobil, a major U.S.-based oil company, for work on the Stabroek block located offshore in Guyana while the second contract was given by Petrobel for the pre-commissioning of control lines spanning 170 kilometers for the Zohr Field, off the coast of Egypt.
The future of the Middle East’s fuel industry is likely to face a number of challenges and uncertainties. On one hand, rising demand from emerging economies, particularly in Asia, is likely to provide a continued source of demand for the region’s hydrocarbon resources. However, the global transition towards cleaner, more sustainable forms of energy will also have a significant impact on the industry in the region. With a post-oil era on the horizon, some Middle Eastern countries will see their fossil fuel resources run out over the next two decades.
From geopolitical tensions and competition within the region to increasing concerns around climate change, these elements will shape the region’s fuel industry in complex and unpredictable ways. But one thing is certain: as long as the region has the drive and tenacity to initiate mega projects and see them to fruition, they will inevitably be ready for what comes next. Ultimately, the ability of the region’s governments and energy companies to adapt to these changing dynamics will be critical in determining the long-term viability and competitiveness of the industry.
Asma Ali Zain is a Dubai-based journalist with over 20 years’ experience in writing for and editing business-to-business publications.
Amid bountiful natural resources, African nations compete fiercely for global investment attention. This is also true of Mauritania, a country grappling with ongoing poverty and unemployment.
Nestled in the northwest corner of Africa, Mauritania has been striving for years to implement reforms that enhance its business climate, attract foreign investment, and diversify its economy. Despite continuous efforts, it frequently remains unnoticed as it is overshadowed by its more well-known neighbors like Morocco, Egypt, and Tunisia. The harsh climate, characterised by hot, dry, and windy conditions, coupled with its remote location, only compound its challenges, causing project developers to seek opportunities elsewhere on the continent.
Ironically, these very conditions have now propelled the West African nation onto the global stage. As hydrogen, the most abundant element in the universe, has gained significant attention as a promising solution to address global challenges such as
Thursday 08 June 12:00 - 12:30
Problem: Alternative fuel production in Africa has long been dented by underinvestment and aspirations that do not marry with reality
Solution: Mauritania is bucking the trend by setting a realistic and achievable strategy for hydrogen development
climate change, energy security, and the transition to a low-carbon economy, so Mauritania has emerged as the ideal location for its production.
“Mauritania has made significant strides in the adoption of renewable energy, with a growing number of projects being launched across the country,” said Mohamed Abdellahi Yaha, owner and CEO of Maurilog, an integrated logistics service provider that has been operating in Mauritania for decades. “When it comes to hydrogen the potential is huge and there is a growing realisation of this around the world. Right now, three of the biggest hydrogen projects planned for Africa are in Mauritania.”
Yaha believes the hydrogen potential is, in fact, far bigger than currently perceived.
“The conditions in the country are perfect. The abundance of solar and wind resources, along with a large
amount of space available, make it an ideal destination for green hydrogen projects. Our proximity to Europe only makes the offering more enticing.”
Compared with other West African countries Mauritania stands out, he said. “Nigeria, for example, has the space and the sun, but not that much wind. Morocco, on the other hand, has good sun and wind but less space especially as the Western Sahara dispute continues. Mauritania, however, has the exact conditions required.”
According to the UN Agency for Renewable Energy, the country’s renewable energy potential amounts to at least 4,200 GWh. In 2020 the government adopted a national strategy to transform its energy sector, setting itself a goal to increase its share of renewable energy in its energy mix to 60 percent by 2030. Development of the BP-operated Greater Tortue Ahmeyim liquefied natural gas (LNG) project is currently underway. The first exports from this project are expected before the end of this year.
Change in Mauritania, Yaha said, was therefore imminent. “We are on the cusp of some very big developments that have the potential to change the trajectory of our country.”
Ismail Abdel Vetah, a senior advisor to the Mauritanian Ministry of Petroleum, added that hydrogen is the gamechanger the country has been waiting for.
“The studies have been done and the strategy is in place. To date, we have signed four agreements putting
us on track to become one of the major players in the world’s energy transition,” he told Breakbulk
Vetah said what stands out is the speed at which the hydrogen sector is developing in Mauritania. “Africa is not known for quick delivery and it can take years to get a project off the ground. What we are seeing in Mauritania is a definite increase in pace to get these projects up and running.”
He said the government had taken a proactive approach. “The strategy is realistic and achievable and the goals that are being set are attainable. This is not a case of just talking about the potential that exists but systematically doing the necessary work to turn it into a reality. We believe that we will see the construction of at least one of the four projects start no later than 2026 with the first hydrogen produced as early as 2027.”
According to Vetah, much work has already gone into developing the necessary political and economic frameworks. “By the middle of this year, we will be the first country to have a dedicated Hydrogen Code. We realised very early on that the existing Mining, Petroleum and Hydrocarbon Codes would not suffice. Having the correct legal framework in place is critical if we want to be successful with our strategy.”
Four projects are currently on the table in Mauritania. CWP’s Aman project, located in the Dakhlet Nouadhibou and Inchiri regions of the country, is a 30 GW green hydrogen project that will generate approximately 110 TWh at full capacity. It is expected to produce at least 1.7 million tons of green hydrogen per year. Chariot’s Project Nour will see another 10 GW of renewable energy installed for a production of 750,000 tons of hydrogen and 4.5 million tons of ammonia. Vetah said both these projects were progressing well with framework agreements signed.
In November last year, the government signed its third MOU, this time with BP to carry out several
studies to evaluate the feasibility of producing green hydrogen. “The fourth MoU was signed in March this year with Infinity Power and Conjuncta,” Vetah said. “This project will develop a plant over three phases with 15 GW of renewable energy for 10 GW electrolysis and a production of 8 million tonnes of ammonia. The first phase is expected to be operational by 2028.”
He said all four projects were ambitious, planned on a massive scale, and an indication of the country’s commitment to transitioning towards a low-carbon economy. “The importance of the current developments cannot be overemphasized. Hydrogen will play a critical role in Mauritania’s economic development and sustainable growth, creating much-needed employment along with a host of other opportunities along the value chain.”
Philippe Martinez, managing director of IFP Training ME, a subsidiary of the IFP EN group, said hydrogen had the potential to offer several benefits to Mauritania. “As a clean and renewable source of energy, it can reduce the country’s dependence on fossil fuels and lower its carbon emissions. Secondly, the production and export of hydrogen could provide economic opportunities for Mauritania. The country has significant reserves of iron ore; hydrogen could be locally used to produce green steel on a massive scale .”
He said the first LNG gas production — expected by the end of the year — would bring about much-needed economic change, but this would not be enough to drive the country’s growth path.
“Mauritania’s strong offshore winds and very good sun conditions possibly provide one of the best combined renewable energy resources in the world which would allow them to significantly reduce the cost of hydrogen produced. Leveraging its resources and its ability to drive down the cost there is no arguing that it could become a major exporter of green hydrogen.”
Maurilog’s Yaha said while there was much excitement in Mauritania over the hydrogen developments this past year, there were several challenges that the country would have to overcome.
“The infrastructure required for the production, storage, and transport of hydrogen is non-existent. This means we will need significant investments to build the necessary infrastructure and establish the supply chain for it,” he said.
New roads, railways, pipelines and at least one port are necessary for the hydrogen strategy to stand any chance of success. “While this is in some respects a challenge, it is an opportunity for the project sector as it simply means more work. At the very least a new port will have to be built, while the existing two ports in the country would need to be upgraded. The country also does not have the necessary heavy equipment and that will all have to be brought in.”
Questions about skills shortages also abound, but according to Martinez, this is not as big an issue as one might think. “When it comes to renewables it is much easier in terms of competency than oil and gas, for example. The wind is there and the sun and almost
everyone knows where it is coming from. The project logistics capability will also be quite easy to address.”
Said Yaha: “It is not a difficult country to do logistics in and moving project cargo is not necessarily any more challenging here than in many other locations in Africa. The government will have to find the resources, however, to upgrade and expand its infrastructure to do so efficiently.”
According to IFP Training ME’s Martinez, the bigger challenge lies in the unpredictability that still exists around hydrogen itself. “There is still no international hydrogen market. This makes it very difficult to draw up a business plan as one is unable to foresee what will be sold to whom. This is a challenge not just faced by Mauritania, of course, but all countries looking at hydrogen production.”
Also, given that green hydrogen projects are only in their early stages of development, the prices and costs of the main project drivers remain uncertain.
“At this stage, the assumption is that the hydrogen will be converted into ammonia which will be transported and exported. It is an easy enough derivative and the market has shown steady growth over the past few years and is expected to continue growing around 5 or 6 percent per annum,” Martinez said. In light of growing competition in the hydrogen sector, Mauritania was considered to be doing well. “The government has taken a pragmatic approach and is doing very well in what they have achieved so far. Moving faster will, however, become necessary. One must not forget that when it comes to hydrogen there is no infrastructure anywhere ready to use, but the competition is fierce and there are plenty of locations where it could happen. Being the first to market could hold significant advantage for Mauritania,” Martinez said.
For the better part of a decade now, African gas finds have been the staple of headline oil and gas stories. Home to some of the largest gas reserves in the world, with estimates suggesting that the continent holds over 620 trillion cubic feet of proven natural gas reserves, understandably makes it a hot topic in the world of oil and gas. The potential is real, proven by reading numerous adjective-rich articles and reports of how it can drive economic growth, provide clean energy, and diversify export revenue streams. Gas has been anointed as Africa’s savior, heralding a new era for the continent that is in desperate need of energy.
However, the question of whether the gas potential will be fully realized is a complex one. While there are many benefits to the development of the gas industry in Africa, there are also challenges and risks that need to be carefully managed.
According to a recent report by Global Energy Monitor, the US$245 billion planned expansion of gas infrastructure underway in Africa represents an enormous assetstranded risk especially as much of the gas is intended to correct Europe’s
Problem: Africa’s reliance on European demand for gas could backfire if the bloc wants to diversify suppliers
Solution: A focus on Southern and East Africa infrastructure development could prove a safer bet for project cargo handlers
short-term energy crisis resulting from Russia’s invasion of Ukraine.
Raising several concerns about the expansion plans, the report titled The Scramble for Africa’s Gas highlights that much of the continent’s gas pipeline buildout has yet to secure investment and that regional imbalances in gas plant generation persist. At the same time, investments in planned liquefied natural gas, or LNG, export terminals dwarf planned investments in gas plants to power Africa. The estimated capital expenditure for the development of LNG terminals is US$103 billion; 92 percent would be for LNG export terminals. This total estimated investment would increase the region’s 79.3 million tonnes per annum of LNG export capacity by 111 percent while doing little to improve electrification on the continent, according to the report. It warns that without long-term financing and offtake agreements, these assets are likely to quickly become stranded once the European energy crisis abates.
Duncan Bonnett, an African project expert and analyst at Africa House, told Breakbulk that African countries need to be careful in placing too much reliance on Europe’s interest in the continent’s gas reserves. “There has been a clear indication from the European Union that it never wants to be held hostage by Russia again and while the move towards Africa’s potential to provide it with gas is real, the intent they are showcasing should not be ignored. Europe does not want to be held hostage by anyone anymore in terms of energy supply so what we can expect from that continent is energy diversification going forward.”
Patrick Prestele, a consultant at Frost & Sullivan Africa, said in the global context Africa holds around 13 percent of the world’s natural gas and while there are concerns about the exact potential of the continent there are reasons to be optimistic about the future of the gas industry.
“Several African countries are developing down and upstream natural gas projects. These are especially found in West and Southern Africa, including Mauritania/Senegal where Phase 1 of the Greater Tortue Ahmeyim Floating LNG project is underway, the Sanha Lean Gas project in Angola, the Republic of Congo’s Fast LNG Project, the much anticipated Baleine Phase 1 in the Ivory Coast, the Tanzania Lindi Project, the UgandaEthiopia Gas Pipeline as well as Mozambique’s Coral South LNG,” he said.
Highlighting the complexity of the African continent, he said that there are also several projects showing high potential but not moving forward at all. “These projects are being kept from further development because of limited or absent funding, geopolitical instability or external factors such as terrorism - as has been the case with Mozambique’s Total Energies LNG project. The potential will certainly not be released due to the absence of funding,” he said.
Bonnett added that Africa’s gas story – or the potential that it holds for the continent – is not new. “Talk of gas projects has been around for years, particularly in the traditional oil and gas markets such as Nigeria which has flared gas for decades. If one looks at countries such as Toga, Benin, and the Ivory Coast then gas has been part of the project discussion for some time.
“It is in Southern and East Africa where the so-called excitement is being generated as it is a new phenomenon.
Mozambique and Tanzania have made massive finds and projects were quick off the bat even though there have been delays.”
Bonnett said it was important to recognize that projects in Africa do not develop quickly and it can take years to get them off the ground. “When we look at Mozambique in context then the projects in the country have developed very quickly with the first offshore terminals already producing gas. The Total project was put on hold due to insurgency but is expected to start up again in July this year and work is ongoing in the Ravuma Basin project, although that has not reached Final Investment Decision stage as yet.”
He added that developments at the Bailine project in Ivory Coast were particularly notable as they happened in record time, demonstrating that projects can take off quickly and successfully in Africa under the right circumstances. “Mozambique would have been a lot further down the line had it not been for the outbreak of the Covid-19 pandemic and the insurgency. This set the onshore LNG project back by years and it would have been at least 60 percent completed by now.”
Bonnett said while concern that African gas projects could result in stranded assets was justified to some degree, there is a fair amount of projects underway on the continent to keep project cargo operators busy for decades.
DSV general manager for oil and gas business development in Africa, Leandro Trindade, said the speed at which projects are taking off is increasing. “There are a lot of countries on the continent that are moving quickly. Namibia is a good example. Even in South Africa, with the discovery of helium in the Free State, we have seen very fast movements calling for project cargo operators to be ready and able on the ground.”
Trindade added that onshore development in several countries is ongoing and moving in the right direction.
“Africa has an energy crisis, where approximately 600 million people do not have access to electricity, yet Africa is the place where so many discoveries have been made over the last decade. The potential is there but we need foreign investment to develop these projects.”
Prestele agreed that this is possibly the biggest hurdle for project developers on the continent.
“Access to financing is by far the biggest challenge. Africa relies heavily on direct investment. All of the leading economies on the continent have natural gas infrastructure projects either developed or with plans in place to expand. Financing is needed.”
He said other projects to watch out for included South Africa’s Richard’s Bay
refinery upgrade, the Nigeria-Morocco gas pipeline, the Nigeria-Algeria gas pipeline, as well as the Rovuma Basin LNG project in Mozambique.
Project cargo operators are keeping a close eye on the gas developments on the continent. Bonnett said while it was anyone’s guess if the continent would realize its full gas potential, the reality is that projects in the gas sector and logistics service requirements are on the rise.
However, it is currently very much a chicken and egg situation. “Are project cargo operators readying themselves for a gas infrastructure boom? Yes and no,” Trindade told Breakbulk. “It is the chicken and egg scenario. No carrier or cargo handler will invest in assets while there is no volume confirmed and no investment in a project, even if the potential is huge. Once the FID is concluded, however, and the project kicks off, carriers can and do commit assets as the volumes are then on hand.”
Prestele, like Bonnett, believed that project cargo operators are best advised to be ready. “In North Africa, if natural gas can be produced and exported at market-competitive prices to Europe, then the European market will buy it. It’s a different picture in Sub-Saharan Africa. Several developed nations, including the U.S. and Europe, have decided to stop funding energy infrastructure projects in poor countries that depend on coal, gas and oil. These nations rely heavily on foreign direct investment for new infrastructure projects and will struggle to find the funds to develop the natural gas economy independently,” he said.
Bonnett added: “Developing gas infrastructure on the continent will require investment into transport infrastructure meaning more project work. Roads, railways, pipelines and ports will have to be upgraded. Projects in Africa do take longer and so when we talk about US$245 billion of planned infrastructure and the possibility of it being stranded then yes, the skepticism is understandable.
“On the other hand, if we just look at the east coast of Mozambique up to Kenya and Uganda, then there is US$140 billion in potential projects right there and at least half of that is already underway. We might only be tiptoeing
towards the line, but we are moving in the right direction.”
Breakbulk Events & Media’s biweekly BreakbulkONE newsletter keeps the industry connected between Breakbulk events in Dubai, Rotterdam and Houston. Here’s a selection of recent subscriber favorites. Subscribe at https://breakbulk.com/page/one
Project forwarder deugro was recently called into action to deliver 13 timecritical petrochemical components from Italy and Belgium to Saudi Arabia.
The crucial consignment, required after a Saudi petrochemical plant had suffered a line production shutdown, was transported using an Antonov AN124-100 in three consecutive charter flights. The move was completed within a week, deugro said, minimizing costly downtime for the client.
The AN124-100 is one of the heaviest cargo aircraft on the market, with a gross payload capacity of 120 tonnes. The Ukrainian carrier currently has five AN124-100s available for commercial operations.
The cargo transported by deugro contained heat exchange equipment weighing a combined 252 tonnes, and included convection modules weighing more than 54 tonnes each. The exchangers were picked up from a company close to Milan.
A fan casing from another supplier in the Netherlands was added to the third of the three flights during a stopover at Ostend-Bruges Airport in Belgium.
“Due to the critical schedule, an air charter solution was selected to provide the shortest transit time,” said Joost Maranus, senior project coordinator at deugro Netherlands. “This allowed for choosing the airports of origin and destination as close as possible to the supplier locations and the plant site, and the schedule of the flights could be planned in accordance with the manufacturing schedules.”
According to deugro, the
biggest challenge was securing the required aircraft in good time, with the conflict in Ukraine severely curtailing the availability of aircraft to transport project cargo.
Volga-Dnepr, one of the market’s main suppliers of combined widebody, heavy-lift airplanes such as the B747-F, the Ilyushin IL76TD-90VD and the AN124-100, has been banned from commercial flights to the U.S., Canada, Europe and other major markets.
Antonov, meanwhile, was forced to relocate to Leipzig in Germany from its headquarters at the Gostomel airbase close to Ukraine’s capital city, Kyiv. Before the conflict, Antonov had seven AN124s in operation.
“Thanks to deugro’s long-standing strategic relationship with the
carriers, and despite the severe shortage of these aircraft in the view of the military conflict in Ukraine, we were able to successfully lock in the aircraft for the required dates of transportation,” said Pavel Kuznetsov, deugro’s head of air chartering.
Other challenges during the Saudi move included ensuring the in-flight conditions aboard the aircraft — particularly temperature and pressure change rates — were suitable for the modules to be transported, and securing special loading ramps and external mobile cranes to handle the units.
The components arrived at King Fahd International Airport in Damman in Saudi’s Eastern Province and were then carried some 100 kilometers to the construction site.
The Jumbo-SAL-Alliance, or JSA, has begun transporting industrial components for the Basra Refinery Upgrade Project, or BRUP, in southern Iraq.
The series of shipments carried out for constructor Japanese Gasoline Company, which kicked off with the heavy-lift vessel Jumbo Javelin loading 19 units at Dahej port in India, is one of the largest projects ever undertaken by JSA, the group said.
The alliance expects to transport a total of 450,000 freight tonnes of cargo from locations in India, China, Thailand and Korea, including 80 modules from the Morimatsu plant in Nantong, China. The scope of the work will also include delivery of 31 pieces including a regenerator, vacuum columns, a fractionator and seven 800-tonne bullet tanks, each measuring 82 meters in length.
For JSA, planning for the project began in 2019 with the provision of engineering support. This included the design of four different loading spread mats covering the various vessel types to be deployed, cargo footprint and location of the cargo on the vessel.
Preparations also covered the potential risks of working in a hostile
environment. “In every project that we undertake we consider not only the costs of transportation, but also the total project cost,” said Laurens Govers, commercial manager at JSA. “With this project, our early involvement played a considerable role in this. We were able to work along with the client in tweaking the sailing schedule and suitable vessel rotations to match the vessels and maximize efficiency.”
which will undertake seven voyages each, are compact enough to access the restricted Morimatsu plant, where much of the cargo will be loaded.
Other ships selected from JSA’s fleet will carry out an additional five voyages, the group said.
“Having the two dedicated vessels for the duration of this phase gives us visibility, ensuring that we can remain on schedule,” said Kiharu Yamashita, JGC’s project logistics manager for the BRUP. “Jumbo-SAL-Alliance, who can accommodate the size and capability required for this project, is indispensable for the successful delivery of the project to our client.”
KBR has been selected by green fuels developer Avina Clean Hydrogen to supply its patented technology for a 2,200 tonne-per-day green ammonia plant on the U.S. Gulf Coast.
Houston-based KBR will provide the process technology license and engineering design, covering electrolysis, air separation and ammonia synthesis for the unnamed project, billed as the largest green ammonia plant in North America.
As a hydrogen carrier, ammonia is widely acknowledged as playing a leading role in decarbonizing power
Two heavy-lift vessels have been assigned to the project: Jumbo Kinetic, equipped with two, 1,500-tonne cranes, and SAL Heavy Lift’s Svenja, with its two 1,000-tonne cranes. The vessels, generation and marine transport.
“KBR is the world leader in ammonia technology and extremely well positioned to work collaboratively with innovative companies like Avina to bring this first-of-a-kind green ammonia project in the U.S.,” said Vishal Shah, founder and CEO of Avina Clean Hydrogen.
KBR has also revealed it has been named the primary integrated project management contractor for BP’s worldwide hydrogen project portfolio.
The scope of the contract includes joint contribution to front-
end, optimization and execution project phases, and management support through construction, commissioning and start-up for BP’s global hydrogen projects.
The contract will commence under the existing global agreement with BP.
KBR and BP are members of the Breakbulk Global Shippers Network, a worldwide networking platform for executives operating at the top end of the project supply chain in sectors such as oil and gas, energy and renewables, mining and minerals, construction, forestry, industrial manufacturing and aerospace.
Maersk Supply Service has paired up with GustoMSC to design a next generation wind installation vessel for Europe’s burgeoning offshore wind market.
The upgraded model will build on the same patent and characteristics of the current feeder concept developed for US waters, said Maersk Supply Service, a leading provider of marine services and project solutions for offshore energy sectors.
The design will allow the jackup vessel to stay on location at a wind energy project, with tugs and barges deployed to sail to and from port facilities to collect the turbine towers, nacelles and blades.
The concept is cost-competitive and expected to be 30 percent more efficient than conventional jack-up vessels, the company said. It will also be weather-dependent, enabling continuous installations year-round.
Work on the basic design process will start soon and conclude later this year.
“Europe is an attractive market for offshore wind, and we believe that our concept is also suitable for this region,” said Jonas Munch Agerskov, COO at Maersk Supply Service.
“As the wind installation vessel itself does not sail into ports, this can solve some of the bottlenecks we currently see in Europe, where only a few ports are large enough to handle the growing wind turbine sizes. We look forward to collaborating with GustoMSC on getting this new basic design ready.”
Nils van Nood, managing director at GustoMSC, said both companies would bring years of offshore experience and know-how to the venture.
“Against the backdrop of growing turbine sizes, we jointly aim to further
improve installation efficiencies and development economics in the bottomfixed offshore wind market,” he said.
The EU is targeting 300 gigawatts of offshore wind capacity by 2050, up from about 15 gigawatts today. But industry lobby group Wind Europe believes an upcoming global shortage of specialized offshore wind vessels could hamper the region’s offshore wind ambitions.
The group said in a recent report that Europe needs an additional 56 vessels of different types to support the industry just until 2030.
The so-called project cargo ecosystem is a one-stop shop breakbulk terminal facility located on the south side of the Churchill Dock, and the first of its kind at the port, said PSA Breakbulk, a joint venture launched in 2021 by Singapore-based port operator PSA, logistics provider Haeger & Schmidt and heavy transport equipment specialist Felbermayr.
The terminal boasts a quay length of 500 metres and a draught of 13 metres, and offers infrastructure, equipment and space to load and unload, store and handle all types of project cargo, as well as direct tide-
free access to the sea and hinterland.
The facility is equipped with a fixed 750-tonne capacity heavy-lift crane dubbed “Big Felb” and SPMTs with up to 40 axle lines to move out-of-gauge cargo. PSA Breakbulk is also installing its own wind turbine, slated to come online from 2025, which will provide a clean source of power for the terminal’s electric cargo-handling equipment.
“We strongly believe in the added value of this project cargo ecosystem for the industry in and around the Port of Antwerp and for the development of the port and Flanders itself,” said Dennis Verbeeck, PSA Breakbulk’s
general manager. “By offering a onestop shop concept, we make the entire process more transparent, visible and convenient for our customers.”
In a separate statement, the Port of Antwerp-Bruges said 10 million euros had been invested in the new facility. It also said the terminal would house marshalling activities for Ineos Project One, a world-scale ethane cracker plant being built in Antwerp.
PSA Breakbulk’s other deepsea terminal at the Port of Antwerp, located on the north side of the Churchill dock, focusses mainly steel and general cargo.
Project: Hawiyah Unayzah Gas Storage Reservoir (page 35)
Country: Saudi Arabia
Developer: Saudi Aramco
Project: Shaheen Petrochemical Complex (page 35)
Country: South Korea
Developer: Saudi Aramco / S-Oil
Project: North Field East (page 36)
Country: Qatar
Developer: Qatargas
Project: North Field South (page 36)
Country: Qatar
Developer: Qatargas
Project: Fujairah LNG Plant (page 36)
Country: United Arab Emirates
Developer: ADNOC
Project: Port Arthur LNG Plant (page 36)
Country: United States
Developer: Sempra
Project: Plaquemines LNG Export Project (page 37)
Country: United States
Developer: Venture Global
Project: Willow Oil Project (page 37)
Country: Alaska, United States
Developer: ConocoPhillips
Project: Lake Albert Oil Development Project (page 37)
Country: Uganda / Tanzania
Developer: TotalEnergies
Project: Rosebank Oil & Gas Project (page 37)
Country: Scotland
Developer: Equinor
Project: Holland Hydrogen I (page 39)
Country: Port of Rotterdam, the Netherlands
Developer: Shell
Project: Lubiatowo-Kopalino Nuclear Power Plant (page 38)
Country: Poland
Developer: State-run Polskie Elektrownie Jadrowe
Project: Sizewell C Nuclear Power Plant (page 38)
Country: United Kingdom
Developer: EDF Energy
Project: Hinkley Point C Nuclear Power Plant (page 38)
Country: United Kingdom
Developer: EDF Energy
Project: Mad Dog II Oil Project (page 76)
Country: United States
Developer: BP
Project: Rydberg Oil Project (page 76)
Country: United States
Developer: Shell
Project: Javelina Refinery Services Facility (page 80)
Country: United States
Developer: Howard Midstream Energy Partners
Project: Intermountain Coal-to-Hydrogen Conversion Project (page 80)
Country: United States
Developer: Intermountain Power
Project: Haiding II Wind Farm (page 84)
Country: Taiwan
Developer: Formosa 3
Project: Hail & Ghasha Gas Development Project (page 86)
Country: United Arab Emirates
Developer: ADNOC
Project: Habshan Oil & Gas Complex (page 86)
Country: United Arab Emirates
Developer: ADNOC
Project: Greater Tortue Ahmeyim LNG Project (page 88 and 92)
Country: Mauritania
Developer: BP
Project: Aman Green Hydrogen Plant (page 89)
Country: Mauritania
Developer: CWP
Project: Project Nour Green Hydrogen (page 89)
Country: Mauritania
Developer: Chariot
Project: Sanha Lean Gas Connection Project (page 92)
Country: Angola
Developer: Chevron / Cabinda Gulf Oil Company
Project: Baleine Phase 1 Oil & Gas Project (page 92)
Country: Ivory Coast
Developer: Eni
Project: Richard’s Bay Refinery Upgrade (page 92)
Country: South Africa
Developer: Petroleum Oil and Gas Corporation of South Africa
