Breakbulk Magazine Issue 4 2023

A Land of Opportunity

FOX Brasil’s Murilo Caldana on Latin America’s Thriving Project Market

A Land of Opportunity

FOX Brasil’s Murilo Caldana on Latin America’s Thriving Project Market

24

24 Americas Brazil Eyes New Oil Frontiers

Nation Looks to Nearly Double Crude Output by 2029

28 Americas

Unlocking Central America’s Project Potential Region Looks Forward to Some Major Investment Activity

40 Thought Leader Capturing the Benefits of an AI-Driven Workplace

Human flexibility will still be important as AI gains ground

42 Global Early Steps for Hyperloop Tech Projects Offer Only Long-Term Cargo Potential

Mark

Your Calendars for Upcoming Breakbulk Events

Breakbulk Americas

26-28 September 2023

George R. Brown Convention Center, USA

Breakbulk Middle East

12-13 February 2024

Dubai World Trade Centre, UAE

Breakbulk Europe

21-23 May 2024

Rotterdam Ahoy, Netherlands

32 Americas Complex Logistics for Italian-Mexico-US Transport A First-Hand Account of a Challenging Project

34 Americas Heavy Undertakings for Lightest Metal U.S. Lithium Mining and Processing Set to Surge

38 Americas ‘Tough Few Years’ Ahead for Global Economy

Inflation, Supply Chain Shortages Hamper Growth

46 Thought Leader

Attracting Talent in Project Logistics: Gaps and Opportunities

The Industry Needs to Rethink Its Attractiveness in the Modern Age

48 Europe Waterways: the Good, the Bad and the Ugly

Green Credentials of River Moves Butt Against Water Fluctuations

52 Middle East / Africa

Cracking Lebanon’s Oil, Gas Potential Offshore Prospects Gain Momentum with Maritime Boundary Deal

Credit: Petrobras

TURNING UP THE HEAT

At the time of writing, temperatures were soaring in many parts of the Americas, and indeed, around the world. The beginning of July was the hottest week on record for the planet, according to the World Meteorological Organization, a United Nations agency. This issue kicks off with a Beat the Heat summer gift guide and a roundup of tips from familiar industry leaders before moving into the editorial features that cover hot – not by temperature necessarily but definitely by potential – project sectors.

We begin our journey in Latin America with a trio of stories from senior reporter Simon West who is based in Colombia. You can feel the enthusiasm jumping off the page as you read our cover story profile on Murilo Caldana, head of FOX Brasil and former president of The Heavy Lift Group.

“I’m always very excited talking about this region. We have the political issues here, of course but there are so many projects to get done, so many developments going on,” Caldana told West.

In a related feature, we learn Brazil has overcome its “Car Wash” scandal that threatened to derail the country’s pre-salt drive and is now beginning a new era of deepwater exploration and production. Logistics firms including CET Logistics and Logtrade, along with shipping line UAL America, agree Brazil’s potential is massive.

Moving north, West outlines why opportunities for project logistics are set to soar in Central America with billions of dollars earmarked for

infrastructure, renewable energy, and other types of projects. You’ll learn why doing business in Costa Rica can be easier and more affordable than in other parts of the region.

You’ll find the story on lithium mining in the U.S. particularly eye opening as reporter Lori Musser speaks with Allie MacAdam, Bechtel’s president of its Mining & Metals unit, about a new lithium hydroxide plant to be constructed in Nevada. This is only the beginning – the U.S. is currently dependent on foreign sources for lithium, a critical component in electric vehicle batteries. No doubt additional projects are on the way with significant opportunities for project cargo specialists.

With Breakbulk Americas returning to Houston this fall from Sept. 26-28, there will be plenty of discussion on the Main Stage and throughout the exhibition hall on how to capitalize on these project opportunities. The features inside will give you a head start, and we’ll cover more regional hot topics in the next issue, which will be distributed in print at the event.

No issue of Breakbulk magazine would be complete without reporting from around the world. We’ve labeled each story by region so that you can find what interests you and your company more easily. This issue’s global coverage includes a practical look at hyperloop technology and inland transportation. The Middle East and Africa section features energy coverage in Lebanon and South Africa, while our Asia section examines opportunities around hydropower storage and a detailed review of a deugro transport that spanned a decade.

Stay cool and I hope to see you in Houston.

Best,

Leslie Meredith

Leslie.Meredith@breakbulk.com

Marketing 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

John Bensalhia

Jeremy Bowden

Felicity Landon

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

Leslie Meredith

The following Breakbulk exhibitors, sponsors and members of the Global Breakbulk Shipper Network are featured in this issue:

FOX Brasil: “Land of Opportunity” (pages 20-22); “Brazil Eyes New Oil Frontiers” (pages 24-27)

Universal Africa Lines: “Land of Opportunity” (pages 20-22)

Nakama Worldwide Solutions: “Unlocking Central America’s Project Potential” (pages 28-31)

Fagioli: “Breakbulk Throwback: 1998” (pages 32-33)

Albemarle Corp.: “Heavy Undertakings for Lightest Metal” (pages 34-36)

Bechtel: “Heavy Undertakings for Lightest Metal” (pages 34-36)

DP World: “Early Steps for Hyperloop Tech” (pages 42-45)

Hamburger Hafen und Logistik, HHLA: “Early Steps for Hyperloop Tech” (pages 42-45)

Fluor: “Attracting Talent in Project Logistics” (pages 46-47)

Drewes Logistics: “Waterways: The Good, the Bad and the Ugly” (pages 48-51)

deugro: “Waterways: The Good, the Bad and the Ugly” (pages 48-51) and “Importance of Proper Pre-planning” (pages 86-89)

Port of Hamburg: “Waterways: The Good, the Bad and the Ugly” (pages 48-51)

Gebruder Weiss: “Waterways: The Good, the Bad and the Ugly” (pages 48-51)

Air Products: “Waterways: The Good, the Bad and the Ugly” (pages 48-51)

Kestrel Liner Agencies: “Waterways: The Good, the Bad and the Ugly” (pages 48-51)

TotalEnergies: “Cracking Lebanon’s Oil, Gas Potential” (pages 52-55)

QatarEnergy: “Cracking Lebanon’s Oil, Gas Potential” (pages 52-55)

C. Steinweg Group: “South Africa’s Energy Crisis” (pages 56-59)

LASO: “Haul Around the World” (pages 60-63)

Alexander Global Logistics: “Haul Around the World” (pages 60-63)

Eastship: “Haul Around the World” (pages 60-63)

Port of Antwerp-Bruges: “Eyes on Car Trade Revival” (pages 64-67)

Grimaldi Group: “Eyes on Car Trade Revival” (pages 64-67)

Wallenius Wilhelmsen: “Eyes on Car Trade Revival” (pages 64-67)

GE Hydro Solutions: “Pump Up the Hydropower Volume” (pages 82-84)

Protranser: “Pump Up the Hydropower Volume” (pages 82-84)

TechnipFMC: “Pump Up the Hydropower Volume” (pages 82-84)

dteq: “Importance of Proper Pre-planning” (pages 86-89)

Roll Group: “Importance of Proper Pre-planning” (pages 86-89)

Felbermayr: “Felbermayr Transports Mammoth Tunnel Boring Machines” (page 90)

ExxonMobil: “ExxonMobil Inks CCS Deal with US Steel Maker” (page 91)

Bollore Logistics: “Bollore Hooks Up with Flying Whales” (pages 92)

deugro delivers cargo across the Baygorria Dam for UPM’s Paso de los Toros pulp project in Uruguay.

Credit: deugro

BEAT THE HEAT - A BREAKBULK GIFT GUIDE

Discover the ultimate collection of handpicked gifts designed to keep you cool, and perfectly equipped for the summer season. Plus how to stay cool in Houston from some familiar industry faces!

“There is no way to stay cool playing Houston golf in the summer. It’s just plain hot! Starting at sunrise is the best option!”

Ed Bastian Director global sales

BBC Chartering USA

Home base: Houston

Hottest Day on Record: 109° on August 11, 2011

Ed is organizing the annual golf tournament held during Breakbulk Americas. Book soon because this activity always sells out. To register and sponsor, visit https://americas.breakbulk.com/ page/golf-tournament

eno SingleNest® Hammock

$54.95

Perfect for ‘hanging out’, the compact and lightweight ENO SingleNest Hammock is expertly constructed with durable yet soft FreeWave® fabric, making it ideal for staying cool during the hot months. www.eaglesnestoutfittersinc.com

FUNBOY Inflatable Backyard

Rocketship Sprinkler

$79.00

The Rocketship sprinkler provides 360 degrees of water action to keep kids entertained for hours of fun at home.

Hydroflask 32 oz and 40 oz All Around™

Travel Tumbler in Dew and Goji

$39.95-$44.95

The new Travel Tumbler is here to hydrate more and refill less.

TempShield® double-wall insulation ensures cold stays cold all day. www.hydroflask.com

www.funboy.com

“I like what is called the ‘redneck fan method’ which is to place two frozen water bottles next to a portable fan. The wind generated from the fan touches the cold water bottles and produces a cooling effect.”

Philip Ovanessians Senior director

KBX

Home base: Scottsdale, Arizona

Hottest day on record: 122° on June 26, 1990

Aged & Infused: The Core Collection

$68.00

The easiest way to have gourmet cocktails at home this summer. Simply pour you favorite liquor in the bottle, infuse, and serve! Shop from flavors like, Mango Hibiscus, Strawberry Jalapeño and more! www.agedandinfused.com

Cuisinart ® Pure Indulgence ™

2-Qt. Frozen Yogurt, Sorbet and Ice Cream Maker

$99.95

Once the freezer bowl is fully chilled, simply insert the mixing arm, lock on the lid, press the on button, and pour ingredients through the spout. Fresh sorbet, frozen yogurt, ice cream or frozen drinks will be ready in approximately 30 minutes. www.crateandbarrel.com

BAN.DO Super Chill Cooler Bag - Watermelon

$32.00

This water-resistant watermelon bag is the cutest cooler of the summer! www.bando.com

“‘As someone who has traveled to Houston more than 130 times over the past 46 years my solution to staying cool is to get in my rental car as soon as possible and turn on the AC. Also, wear cotton clothes and ditch the necktie.”

John Amos President

Amos Logistics

Co-founder Breakbulk Events

Home base: Pleasant Hill, California

Hottest day on record: 112° on September 5, 2022

Recess Pickleball Paddles

$98-$346

Recess pickleball paddles are made with a durable fiberglass surface, a honeycomb polypropylene core, and a nice, sanded texture surface which gives extra spin and control on the ball.

www.recesspickleball.com

Bote

Wulf Inflatable Stand Up Paddle

Board with Paddle - 10’4”

$499

Whether you’re new to the sport or a dedicated paddle boarder, this 10 ft. 4 in. Bote Wulf inflatable stand up paddle board bundle lets you enjoy a day on the water.

www.rei.com

RTIC 32 QT Ultra-Light Cooler in Deep Harbor/RTIC Ice

$143.89

Ditch the weight, not the fun! Compact, and easy to maneuver, the 32 QT Ultra-Light is an even more portable version of their best-selling cooler. www.rticoutdoors.com

LATIN AMERICAN EXHIBITORS AT BREAKBULK AMERICAS

Breakbulk spoke with Latin American executives to learn more about their brands and project outlook in their region

FOX Brasil

Murilo Caldana, Project Director

Brazil

Freight Forwarder

Booth J02

Part of Global Project Logistics Network (GPLN)

1. What is the most interesting thing about your business?

The most intriguing aspect of our business lies in our engagement with diverse cultures, languages, and projects that positively impact people’s lives. We are passionate about fostering renewable developments and actively seek opportunities to contribute to sustainable practices. Moreover, our work affords us the privilege of traveling, connecting with individuals, and continuously learning from their unique perspectives.

2. What made your company want to exhibit at Breakbulk Americas?

Exhibiting at Breakbulk Americas provides our company with the opportunity to gain exposure and establish ourselves as a reference in Brazil. While Breakbulk Europe is important, Breakbulk Americas allows us to showcase and promote our projects in Brazil, while also fostering cooperation with companies throughout the Americas. This includes not only the United States but also Mexico, Canada, and the entire Latin American region. By participating in this event, we can tap into a broader market and forge valuable connections within the Americas, strengthening our position and expanding our reach.

3. What is your company’s outlook on project opportunities in Latin America at the moment?

Our company recognizes the significant potential for project opportunities in Latin America. Latin America possesses a considerable gap in development, particularly in areas such as energy and infrastructure. These sectors offer substantial prospects for growth and investment.

Our company is quite active on projects in that region. Despite the political issues, we truly believe in the potential and the need for projects.

BR Partners

Jonas Pelegrini, CEO Brazil

Freight Forwarder Booth R12

1. What is the most interesting thing about your business?

Since our company was founded, we have been a leading provider for the nautical sector in Brazil, handling boats and big yachts shipments to and from anywhere in the world.

2. What made your company want to exhibit at Breakbulk Americas?

Breakbulk cargo has been our main niche since the company’s establishment in 2009. Although we initially focused on boat shipments, we now handle all types of oversized cargo. After one of our staff attended Breakbulk Europe last year, we realized the importance of having a booth at these events. We decided to participate in Breakbulk Americas due to our regular shipments of breakbulk and OOG cargo to the USA. This event provides us with a valuable opportunity to network and connect with potential customers and agents.

3. What is your company’s outlook on project opportunities in Latin America at the moment?

The outlook is for growth, as the difficulties and bottlenecks that occurred during the pandemic have been practically overcome. This limited the transportation options for special cargo, making operations more costly and difficult.

Tradelossa

Carlos Cárcamo, AB Sales Director

Mexico Road Transport Booth L21

1. What is the most interesting thing about your business? The chance to make things that look hard or “impossible” a reality. Every project, client, and service bring different challenges, our goal is to learn how to overcome them and surpass all our clients’ expectations! In order to grow we believe discipline, creativity and adaptability are vital to reaching these outcomes. At Tradelossa we want to keep learning and growing every single day, not only as professionals but also as people.

2. What made your company want to exhibit at Breakbulk Americas?

The opportunity to strengthen relationships with clients and friends. Breakbulk Americas gives us the opportunity to break down barriers, build bridges and bring each other closer through great relationships. We also want to look for new chances to provide clients a high-quality service made in Mexico.

3. What is your company’s outlook on project opportunities in Latin America at the moment?

We believe nearshoring in Mexico and Latin America has the potential to be a good opportunity for the industry to grow and keep project cargo companies busy for the next couple of years. However, that wave can only be taken with a correct energetic strategy from the governments, most specifically on transmission and distribution of this energy to the different locations with higher demand, which also could bring a good size volume of operation.

MOVERS AND SHAKERS

Highlighting Recent Industry Hires, Promotions and Departures

APM Terminals Bahrain

Matthew Luckhurst has joined APM Terminals Bahrain as its new managing director, taking over from CFO and interim director Farooq Zuberi. Luckhurst was previously vice president for container shipping at logistics firm Milaha in Qatar. Prior to that, the Britishborn executive was vice president of Bahri Logistics in Saudi Arabia. APM Terminals operates the multipurpose Khalifa Bin Salman Port, Bahrain’s sole commercial port and a major regional gateway for project cargo and breakbulk.

“Matthew brings valuable commercial and business development flare and extensive leadership experience across the Middle East,” said Jon Goldner, APM Terminals’ managing director for Asia and the Middle East. “He has a strong background in the maritime sector and its related operations and is the perfect candidate to propel APM Terminals Bahrain’s future growth.”

Bolloré Logistics

Olivier Boccara has been appointed new CEO of Bolloré Logistics Asia Pacific, based in Singapore. The executive joined the Bolloré Group in 1994, most recently serving as CEO of Bolloré Logistics France then global CCO in charge of worldwide sales and marketing. Boccara will take over from Cyril Dumon.

“I am delighted at the prospect of building on the solid foundations laid down by Cyril, who has greatly contributed to positioning Bolloré Logistics as a leading logistics player in the Asia-Pacific region,” Boccara said. “I have complete confidence in our existing teams and together we will strive to further develop the immense potential of this region and expand our operations to better serve our customers.”

CMA CGM

CMA CGM has named Adeline Franger Chouraqui as CEO of CMA CGM Greater China. The executive, who began her career with the France-based shipping company in 2007 as a pricing and marketing analyst, will head strategic development and business growth in a cluster that includes China mainland, HK SAR and Taiwan area. Prior to this role, Chouraqui served as the group’s general director for Vietnam.

“China is the world leading shipbuilder and hosts some of the world’s largest and busiest ports,” the executive said. “Chinese market has always been one of the most important and strategic markets for the CMA CGM Group. Under the great leadership of Ludovic Renou (Chouraqui’s predecessor), CMA CGM Greater China consistently achieved steady progress with outstanding results, especially in challenging situations.”

Energy Industries Council

Bechtel’s supply chain manager, Andy Cuniah, has been named as new chairman of the Energy Industries Council, replacing Hugh Saville, who steps down after more than five years at the helm. In his new role, Andy Cuniah will work towards the EIC’s goal of helping its member companies to export, diversify and grow as the sector adjusts to the demands of net zero.

The EIC represents over 900 supply chain companies across the global energy industry and provides a range of services to its members including market intelligence, export support and networking opportunities. EIC executives are regular speakers at Breakbulk events in Rotterdam, Dubai and Houston.

Olivier Boccara

Matthew Luckhurst

Adeline Franger Chouraqui

Andy Cuniah

Georgia Ports Authority

Georgia Ports Authority in the U.S. has elected Kent Fountain as its new chairman of the board. Fountain has already served four years as the authority’s vice chairman. GPA has also named Alec Poitevint as vice chairman and Chris Womack as secretary-treasurer.

GPA recently announced plans to migrate breakbulk operations at the Port of Savannah’s Ocean Terminal to the Port of Brunswick as part of a longer-term initiative to convert the former into a container-only facility. Breakbulk cargo currently handled at Ocean Terminal will move to Brunswick’s Colonel Island Terminal by September 2023, once construction of new warehousing space and buildings has been completed.

“Kent’s four-year tenure on the GPA board, as well as his leadership across business and agriculture make him a solid choice to continue guiding the ports of Savannah and Brunswick through the current phase of infrastructure growth,” said Georgia Governor Brian Kemp. “Along with his fellow officers, board members and the GPA leadership team, Georgia’s deepwater ports remain in good hands.”

Höegh Autoliners

Gyrid Skalleberg Ingerø has been appointed board member of Norwaybased roll-on, roll-off specialist, Höegh Autoliners. Until April this year, the executive was EVP and CFO at global deep-sea and aerospace technology group, Kongsberg.

“Höegh Autoliners has a proud history as a pioneer in the international shipping industry and is today a company well positioned for the future. As a board member, I look forward to meeting the organization and contributing to the further development of the company,” Ingerø said.

Höegh Autoliners operates mainly within the roll-on, roll-off sector, operating a fleet of 40 pure car and truck carriers with capacities ranging from 2,300 to 8,500 CEUs. The company also ships project and out-of-gauge cargo, carrying almost 6 million cubic meters of high-and-heavy breakbulk cargoes every year.

Port of Gdańsk

Poland’s breakbulk-handling Port of Gdańsk has chosen Lukasz Malinowski as the port authority’s new CEO. Malinowski is an “experienced manager and legal advisor” with 20 years of professional experience specializing in corporate management and legal teams, the port said. For the past three years, the executive has managed the operations of the Gdańsk branch of Polish power generating company, Grupa Energa.

Gdańsk on the Baltic coast is one of Poland’s most important transport and logistics hubs and plays a key role in the Trans-European Transport Corridor linking the Nordic nations with Southern and Eastern Europe.

Wallenius Wilhelmsen

Roger Strevens has started a new role at Wallenius Wilhelmsen as vice president of regulatory affairs in the marine operations management team. The executive had previously served more than six years as the shipping company’s vice president of global sustainability.

“We’re in a golden era of regulatory development – one of the biggest transformative change drivers in our industry.” Strevens said. “It’s very exciting to have the opportunity to make a progressive and practical contribution on behalf of a company with a leading shipper ethos.”

Strevens, who has nearly 20 years’ experience in shipping and logistics, has also recently been made chairperson of the World Shipping Council’s Environmental and Climate Council, taking over from Maersk’s Simon Bergulf. The WSC provides a coordinated voice for the liner shipping industry in its work with policymakers and other industry groups with an interest in international transportation.

Gyrid Skalleberg Ingerø

Roger Strevens

Lukasz Malinowski

Kent Fountain

MEET EVAN CARTHEY

Q&A With Evan Carthey, Breakbulk Americas’ New Event Director

Q: Why are you excited to join Breakbulk Events & Media as events director for Breakbulk Americas?

Evan: First and foremost, I appreciate Breakbulk Events & Media’s reputation as a leading organizer of specialized events in the shipping, logistics, and project cargo industry. The company’s commitment to excellence and its track record of delivering high-quality events align perfectly with my own professional values. Being part of an organization that prioritizes innovation, industry knowledge, and relationship building is both inspiring and motivating.

Q: What experiences have you had that will be beneficial to shaping the event as it moves into the future?

Evan: I’ve been fortunate to be in sales and management in both events and media. I started my career by primarily selling print media but within a couple of years the landscape had shifted to digital media sales. Several years from there I had the opportunity to transition to event sales and management for conferences such as the Offshore Technology Conference, Subsea Tieback Forum, Offshore Wind Executive Summit, and several others. There have been excellent people, advisory boards, and committees who I have been able to learn from in the events industry throughout my career. One key aspect is that events are always evolving, and it is our job to provide the best platform for networking and the transferring of knowledge.

Q: What three words describe your leadership style? How do you apply those concepts to your everyday work life?

Evan: Empowering – I trust my team members’ abilities. I strive to create a supportive environment where individuals can grow, develop their skills, and take ownership of their work.

Adaptive – Different situations and individuals require different leadership styles. I aim to be flexible and able to adjust to the dynamic environment of sales by embracing change but still maintain a high level of performance.

Encourager – To be consistent in my support and motivation and to celebrate the success of every sale and milestone of others. I try to recognize and appreciate the efforts and achievements of those I work with.

Q: Breakbulk Americas is all about building relationships and laying the groundwork for working on projects together. What is your best networking advice for those attending Breakbulk Americas?

Evan: After attending Breakbulk Europe in Rotterdam, I experienced the powerful networking opportunities Breakbulk conferences generate for attendees and exhibitors. My best pieces of advice would be to take advantage of networking opportunities such as workshops, panel discussions, and networking events during the conference as well as the networking events we provide outside of the show hours. Approach networking with a genuine mindset. Encourage others to talk about themselves and their company while conversing in terms of the other person’s interests.

Q: When working with customers, what can they expect from you?

Evan: I believe in building strong relationships with customers based on collaboration and partnership. They are extremely valuable partners in the event planning process, and I actively seek their input and feedback. By understanding their goals, objectives, and preferences, we can tailor the event experience to meet their specific requirements. I value their insights and strive to create a collaborative environment where their ideas and suggestions are heard and integrated into the event planning process.

Q: Outside of work, what do you enjoy doing?

Evan: Outside of work I enjoy going to events with my family such as the Houston Astros, Houston Texans, and sporting events at Texas A&M.

Meet Evan at Breakbulk Americas in Houston, Sept. 26-28, 2023. Register as Evan’s guest and use code BBAM23EVAN25 for 25% off your ticket.

Evan with his wife Allison – both are big sports fans.

New Exhibitors Flock to Breakbulk Americas

At the time of publication, 33 companies will exhibit for the first time at Breakbulk Americas where they will meet the decision-makers for new project cargo business across this booming region, including Canada, the U.S., Latin America and the Caribbean.

The companies represent a variety of sectors and nine countries: Brazil, Canada, Germany, India, Singapore, Spain, United Arab Emirates, United Kingdom and the U.S.

NEW EXHIBITORS AT BREAKBULK AMERICAS 2023

LATIN AMERICA SPECIAL SECTION

Land of Opportunity: FOX Brasil’s Murilo Caldana on Latin America’s Thriving Project Market

Brazil Eyes New Oil Frontiers

Unlocking Central America’s Project Potential

1998 Throwback: Complex Logistics for Italy-Mexico-US Transport

Unloading operation of wind turbine equipment for 205MW Windpeshi Wind Farm Project at Puerto Brisa, Colombia (Caribbean coast).

Credit: DAKO Worldwide Transport

By Simon West

A LAND OF OPPORTUNITY

FOX Brasil’s Murilo Caldana on Latin America’s Thriving Project Market

Extolling the opportunities in Latin America’s thriving project market is something that comes easy to Murilo Caldana, project director at Brazil-based logistics specialist FOX Brasil and former president of The Heavy Lift Group.

“I’m always very excited talking about this region. We have the political issues here, of course, but there are so many projects to get done, so many developments going on,” Caldana told Breakbulk from his offices in São Paulo.

“Infrastructure I would say is number one. Then we have projects for oil and gas and all the support that needs – FPSOs, platforms, refineries; there’s a lot of investment there. We are quite active in ethanol plants and biomass, not only in Brazil but also Latin America, and we even export to the U.S. Pulp and paper is booming as well. Brazil is now the new hub for this industry.”

Renewable energy is another sure source of project work. Besides impressive growth in domestic installed capacity, Brazil has also emerged in recent times as a major supplier of machinery and equipment for the global energy sector.

In a recent move, FOX Brasil oversaw the delivery of oversized components for the Yacyreta hydroelectric project in Corrientes, northern Argentina. The plant, which has been generating power since 1994, was recently upgraded with 18 new excitation systems. “We supported the cross-border overland transport of transformers, control panels, and assembly materials from multiple locations throughout Brazil to the Yacyreta job site, as well as the customs clearance of goods,” Caldana said.

From Trainee to Team Builder

Caldana began his logistics career 25 years ago as a trainee with Bosch Brasil. After a spell with Brazilian

industrial company Wabco, the executive joined German logistics group Dachser, enjoying stints in Frankfurt, Hamburg and Kempten where the executive could put his German language skills – which he had learned at school – into good practice.

Following an assignment in Dachser’s Mexico City offices, Caldana returned to Brazil in 2010 to focus on project development before joining FOX Brasil two years later to launch its new project logistics division. His first task was masterminding a shipment of components from Brazil to a worldscale ethanol plant in Venezuela.

“It was a challenge for us because we had to build a team, to build

everything from scratch because we didn’t have any tools. But the project was successfully delivered,” Caldana said. “And from then on, we started getting many projects in Brazil. Of course, we were competing with the big companies, but we also got respect. Because here we directly compete with deugro, DHL, Schenker and others. Nowadays, for sure, we are in the top ten –maybe the top five for projects.”

In 2014, FOX Brasil became a member of The Heavy Lift Group, or THLG, a worldwide network of companies involved in large-scale industrial project forwarding, crane operations, machinery installation

FOX Brasil delivering units for the Yacyreta hydro project, Argentina. Credit: FOX Brasil

“I’M ALWAYS VERY EXCITED TALKING ABOUT THIS REGION ... THERE ARE SO MANY PROJECTS TO GET DONE, SO MANY DEVELOPMENTS GOING ON”

and rigging, vessel chartering, port operations, oversized road transport, engineering and barge operations.

A regular at THLG’s meetings, Caldana’s dynamism, vision and passion for breakbulk logistics were quickly spotted by the group’s “old guard,” and after a short stint as volunteer business development officer, he was invited to put his name forward for president – he secured the necessary votes, becoming the firstever Latin American to lead the group.

“I think my communication skills were an important factor in the decision. Latinos are very easy-going, very open – we like to bring people together. This was maybe the reason they chose me,” the executive said. “But it wasn’t just about connecting people. My idea in the THLG was to build trust among our partners so we could work strategically together on worldwide projects. For example,

we have a project right now in Brazil for a nuclear power plant. We have a member company in Germany that is working with the supplier, we have a team in France that can handle the equipment, and we have here the plant in Brazil. We approach the customers as a group.”

Bringing in More Heavy-lift Experts

THLG’s membership during Caldana’s two-term mandate – which concluded in May – increased from 45 to 65 companies, a remarkable feat given that much of his tenure coincided with the pandemic that brought a large chunk of the global project market to a standstill.

The baton has now passed to his colleague Elisabeth Cosmatos, THLG’s first female president. Cosmatos, general manager of Greek transport and logistics firm Cosmatos Group, has been part of the THLG executive

committee for more than six years, previously overseeing the group’s marketing and corporate image.

For Caldana, Cosmatos’ appointment is testament to THLG’s progressive values and its recognition of the integral role that women play in a still male-dominated industry. “This is something new, for sure, but a sign of a new generation coming through. It’s a big change that I respect, and one that I like. I see (Cosmatos’ appointment) as very positive for all our members, showing that it doesn’t matter if you’re male or female –being professional is what counts.”

Given the demands of the job and a young family to support, Caldana may be forgiven for wanting to take things easier in his spare time, but no such luck. The executive – a fitness enthusiast – is currently training for El Cruce, a 100-kilometer trail run through the Andes mountains from Argentina to Chile. More than 2,000 participants from over 35 countries are expected to compete in the grueling three-day race in December.

“I’m training three days a week and the other two I’m at the gym to make sure my muscles are in shape. It’s already quite intense, and it’s going to get even more so. Last Sunday I woke up at 0600 hrs and did two hours and 40 minutes of training up and down the hills,” he said. “It gets tiring, for sure. But I’m focusing on my health –I’m 42 now, so I hope for another 40 or 50 years I can stay healthy. I try to be more relaxed and for me, sports and keeping fit is the best way.”

FOX Brasil will be exhibiting with GPLN at Breakbulk Americas, taking place on September 26-28 at the George R. Brown Conference Center in Houston, Texas.

Colombia-based Simon West is senior reporter for Breakbulk.

Caldana is currently training for El Cruce, a 100-kilometer trail run through the Andes mountains from Argentina to Chile. Credit: FOX Brasil

BRAZIL EYES NEW

Nation Looks to Nearly Double Crude Output by 2029

By Simon West

Region: Americas

Problem: A multi-billion-dollar cash-for-contracts scandal in Brazil’s oil & gas sector threatened to derail project development of ‘pre-salt’ reserves

Solution: Industry reforms, improved oil prices and a re-focus on core offshore reserves has stabilized the nation’s project outlook

FPSO Anna Nery

Credit: Petrobras

NEW OIL FRONTIERS

Brazil’s massive pre-salt oil and gas boom is providing plenty of work for project logistics, from transporting flowlines and masterminding rig moves to dismantling decommissioned platforms and supporting the construction of new liquefied natural gas units.

The demand for floating production, storage and offloading, or FPSO, platforms has also called for significant breakbulk support. These colossal vessels measuring up to 330 meters long – three times the length of a football field – are deployed at offshore oilfields to produce and store crude until it can be offloaded onto tankers for distribution.

Although FPSOs stationed in the prolific Campos and Santos basins off Brazil’s southeast coast are often built in Asia where shipyards are more equipped to handle such large platforms, local content laws require at least some components and equipment to be sourced domestically. Logistics firms are tasked with shipping these parts to shipyards in Asia for assembly, and then transporting the completed vessels back to Brazil for pre-salt operations.

Petrobras is the dominant force in the development of Brazil’s pre-salt reserves – so-called because they are buried in the seabed beneath thick sheets of salt – and the world’s largest operator of FPSOs. The state-controlled energy company’s latest five-year strategic plan calls for the deployment of 18 new vessels by 2027.

Logistics Support

Sao Paulo-based freight forwarder FOX Brasil is currently providing logistics services to engineering company Toyo Setal, which is producing modules for Petrobras’s P-79 FPSO. The modules, which include units for the treatment and separation of crude oil, water and gas, are expected to be shipped to the Daewoo shipyard in South Korea later this year.

P-79, being built by a joint venture between Daewoo and Saipem, will have a capacity to produce 180,000 barrels per day, or b/d, of oil and 7.2 million cubic meters of gas. The vessel, which will also be equipped to store two million barrels, is expected to be deployed in the Buzios field – a large, ultra-deepwater oilfield in the Santos basin 200 kilometers off the coast of Rio de Janeiro – in 2025.

Decommissioning is another key area for breakbulk movers. Over the next five years, 26 platforms including eight FPSOs, 360 wells and 2,500 kilometers of risers and flowlines have been earmarked for decommissioning, with an additional 27 platforms slated to be dismantled between 2028 and 2030.

“If you look at the investments planned in the coming years, there will not only be possibilities for building these new FPSOs, but also decommissioning some of the old platforms. We’re now working on a decommissioning project that will end up being shipped abroad,” said Murilo Caldana, project director at FOX.

The Port of Açu, one of Brazil’s most important offshore oil and gas hubs, also eyes opportunities in decommissioning. Açu, located in the north of Rio de Janeiro looking out on the Campos and Santos Basins, is the largest port in the Americas, boasting more than 130 square kilometers of land – more than twice the size of Manhattan.

The port boasts 10 private terminals including a multi-cargo terminal (T-MULT) capable of handling oversized oil and gas components such as risers, reels, Christmas trees for subsea operations, condensers and turbines. The terminal’s total bonded area for storage tops 360,000 square meters. Alongside a new 6,000-square-meter yard dedicated to breakbulk and project cargo, the terminal is also expanding its quay size from 340 meters to 500 meters, a project slated for completion by the end of 2024.

Such an expanse of land means Açu is well suited for offshore projects that require space for assembling components, carrying out rig and vessel maintenance and coldstacking platforms, as well as housing production facilities for flexible pipes and other infrastructure.

“There are some things we don’t do yet, but we see possibility, for example the decommissioning of older oil rigs. A third of these rigs are more than 25 years old, so at some point they will have to be dismantled,” Maartje Driessens, international business manager at Açu, told Breakbulk

“We’re not doing that yet because we’re waiting for the regulatory framework from the government, but it’s an area that could create new business for us. We’ve already done a learning mission to the Port of Dundee in the UK to understand how they deal with this type of activity and learn from their best practices.”

Exploring New Frontiers

Brazil’s pre-salt buildout over the last two decades has been impressive, with average oil output at the Campos and Santos basins soaring from 41,000 b/d in 2010 to 2.2 million

b/d in 2022 – about 73 percent of the country’s current nationwide production of some 3.0 million b/d.

A multi-billion-dollar cash-forcontracts scandal last decade – dubbed “Car Wash” – involving a handful of corrupt Petrobras executives and some of Brazil’s largest construction companies briefly threatened to derail the nation’s pre-salt drive, but a series of industry reforms, better oil prices and Petrobras’s focus on developing its core assets –particularly its offshore reserves – has re-energized the industry. By 2029, the government wants to increase

crude output to 5.6 million b/d – a level that would transform the country into the world’s fourth-largest oil producer, up from ninth place today.

To lure the necessary investment and expand drilling, the energy ministry announced in March its Potencializa E&P Programme, which aims to channel resources into marginal commercial fields, mature basins with declining production rates and “new frontiers” that have yet to be fully explored, such as the equatorial margin, a more-than 560,000-squarekilometer deepwater area off Brazil’s north and northeastern coasts that includes the Foz do Amazonas, ParaMaranhao and Barreirinhas basins.

Mines and Energy Minister Alexandre Silveira described the equatorial margin as Brazil’s “new pre-salt,” a region with the potential to generate US$200 billion in state revenues if 10 billion barrels of oil were discovered and produced, he said.

Some major projects in the northeast are expected to be up and running soon, such as Petrobras’ Sergipe Deepwater Project, or SEAP, located in the Sergipe-Alagoas basin some 100 kilometers off the Brazilian coast. The energy giant earlier this year said it had begun the process for chartering two FPSOs for SEAP with production capacities of 120,000 b/d by 2026.

In many areas along the equatorial margin, such as in the Amazonas basin, activity has been limited to preliminary drilling carried out by Petrobras. Felipe Feres, a Rio de Janeiro-based partner in Brazilian law firm Mattos Filho and an expert in the country’s energy sector, said the government’s targets were achievable given that many of the big pre-salt fields in the Santos basin had yet to reach their peak production curve.

“Just with the current Santos basin pre-salt fields, we’re probably going to add at least a million or so barrels, without new frontiers,” he said. “But in the Campos and other mature basins, production has been declining. So, the problem that we’ll have in the midterm

Açu is the largest port in the Americas, with more than 130 square kilometers of land.

Credit: Port of Açu

FPSO Sepetiba.

Credit: SBM Offshore

is actually replacing declining reserves and production. It’s not so much reaching the 5 million-plus barrels – I think we can do it. But what happens next decade, from 2029 onwards, when pre-salt production will reach its peak and start declining, and we need to replace it? That’s where investments in these new frontiers will come in.”

Attracting Foreign Spend

Brazil has ramped up its efforts in recent years to draw foreign investment and expertise.

A stable political and regulatory context, good infrastructure, strong local expertise in deepwater development and robust domestic markets for oil products and natural gas have been decisive in enabling the development of pre-salt reserves. Energy majors such as Shell, ExxonMobil and Chevron have been lured to the region by a raft of industry-friendly reforms, including a new rule in 2018 scrapping Petrobras’ mandatory role as sole operator of pre-salt projects.

Feres said Brazil has always been a “safe haven” for investors but warned that the current administration’s new taxes on crude exports that applied until the end of June to existing contracts and an instruction to Petrobras to halt the sale of assets including smaller onshore and offshore oilfields could dampen confidence.

Measures to revamp the country’s tax system – currently being debated in Congress – that could lead to the scrapping of a tax break on imported E&P offshore equipment and machinery – dubbed “Repetro” – is also spooking investors.

“That benefit is absolutely key to attracting investments because it makes the import of E&P components and equipment that we don’t produce efficiently in Brazil cheaper,” Feres said. “Killing Repetro will obviously make exploration and production in Brazil more costly, meaning that some future projects might not be economically viable. Hopefully, the

BRAZIL: ‘POTENTIAL IS MASSIVE’

Logistics professionals speaking to Breakbulk were bullish about Brazil’s oil & gas prospects.

Marcelo Franceschetti, chief commercial officer at CET Logistics, a Rio de Janeiro-headquartered firm that focusses on oil and gas, said the country’s Potencializa E&P Programme was a “great development” that would generate employment in one of the country’s more impoverished regions.

Ana Josephina, commercial director at Salvador-based logistics firm Logtrade, added that breakbulkhandling ports in the northeast such as Suape in Pernambuco state and Mucuripe in Ceara state were wellequipped to support the buildout of offshore hydrocarbons.

Marcelo Urbano, Houston-based chartering director at UAL America, part of global shipping line Universal Africa Lines, said Brazil was “top of the company’s list” in Latin America. Urbano, who has three decades of experience working in shipping and logistics in Brazil, is heading UAL’s expansion into South America.

UAL already regularly operates vessels to Guyana, carrying breakbulk and container cargo mainly for the oil

Potencializa E&P program will put the current administration back on track in attracting investments.”

Another major challenge for developers is complying with Brazil’s strict environmental laws.

In May, Brazil’s environmental regulator Ibama blocked Petrobras’ request to drill a deepwater well in the Amazon Basin, citing ecological concerns. Reuters quoted Petrobras as saying in a securities filing that it had fulfilled “every technical requirement from Ibama” for the project to be approved and was ready to refile its request.

and gas industry. The carrier, which owns 10 vessels, operates another eight or nine and is planning to build another five, is in talks to set up regular contracts with clients in Brazil.

“Brazil, Guyana and Suriname followed by Mexico are our main destinations,” he said, pointing to Brazil’s oil and gas recovery after the Car Wash scandal that nearly brought Petrobras to its knees. “For us in shipping, there was a lot of business as companies pulled out of the country. Two or three years of demobilizing rigs and all the equipment they normally use. But it was negative for the country. I see now demand for equipment to be repositioned back to Brazil, and we’re receiving already an increase for drilling rigs – that tells me that (the sector) is back.”

The challenges are still there, Urbano said, citing the high taxation rates that Brazil would do well to address, as well as soaring logistical costs of operating in the Amazon basin, where prices for pilots, tugs, port services and other shipping services were “way above inflation.” But, he said, if Brazil can overcome those obstacles, “then the potential is massive.”

“It’s a huge problem – the operators need these licenses to be able to drill and confirm what seismic studies say. Without that, it’s simply money spent for no good reason,” Feres said.

“People in the market think the equatorial basin has the same type of geological plays that have been discovered in Guyana and Suriname. But we can only confirm once those drilling licenses are granted by Ibama, and up to now they’ve been denied. That’s the main hurdle that we face.”

Colombia-based Simon West is senior reporter for Breakbulk.

UNLOCKING CENTRAL AMERICA’S PROJECT POTENTIAL

Region Looks Forward to Some Major Investment Activity

Opportunities for project logistics in Central America are set to soar in the coming years, with investments worth billions of dollars earmarked for infrastructure, renewable energy and other sectors.

Across Central America, from Panama in the south up through Costa Rica, Nicaragua, Honduras, El Salvador, Belize and Guatemala on the border with Mexico, governments are attempting to write a new chapter of development, security and prosperity in what has often been a turbulent history for much of the region.

Panama, with its strategic location, stable government and investorfriendly policies, has emerged in recent years as a regional powerhouse for

renewable energy and power projects.

In 2016, the government approved a new energy program that aims to boost the share of renewables – particularly wind and solar – in the country’s energy mix to 70 percent by 2050. Tax incentives and other financial support mechanisms were launched to lure more foreign investment and expertise, while permitting processes for projects were streamlined.

“Panama is a leading market in terms of activity, concentrating the majority of energy projects and capital expenditure in Central America. Renewable energy represents a key business opportunity for the country, with 1 gigawatt of solar PV, wind and hydro power developments being

By Simon West

tracked by the EIC,” said Pietro Ferreira, senior regional analyst for the Americas at the Energy Industries Council, or EIC.

“Investment in grid infrastructure also plays a key role in the country, with 16 transmission and distribution projects under development representing a total investment of US$1.3 billion. Looking beyond renewables and transmission and distribution, U.S.-headquartered SGP BioEnergy has announced the US$7 billion Ciudad Dorada biofuels project in partnership with the government of Panama and other private investors,” he added.

Rosy Malave, co-owner and commercial director at Panamabased Nakama Worldwide Solutions,

KTC Logistics generator move to El Salvador. Cargo shipped by road across Guatemala.

Credit: KTC Logistics

pointed to several world-scale projects that have required significant breakbulk support, such as the 270-megawatt, or MW, Penonome wind farm, one of the largest in Central America and Panama’s first. The project in central Cocle Province has been developed in phases, with a first phase launched in 2014.

Nakama, which began operations in 2021, has also been busy transporting components for the solar and hydroelectric sectors, as well as for fossil fuel-based projects such as the Costa Norte terminal, a liquefied natural gas, or LNG, regasification and storage terminal close to the Caribbean city of Colon, some 60 kilometers north of capital city Panama. The terminal, which came online in 2018, has a capacity of 1.5 million tons per year and operates alongside a combined cycle gas-fired power plant.

“Currently we are managing the logistics distribution of LNG in 40foot ISO tanks. Starting in 2022, we have been delivering to Ecuador and Colombia, providing the complete logistics chain from Panama to those countries,” Malave said. “As a small country, which recently started to develop new infrastructure and business possibilities to generate income, Panama’s ports are at an early stage when handling heavylift cargoes. Additional to this, land transportation must be well calculated, as the allowed height varies a lot along the roads, for which a proper route survey must be done in advance.”

Santiago Vasquez, project cargo and network director at Mexicoheadquartered Sea Cargo Logistics, said Panama’s project market had been strong even before the Covid pandemic, with solid opportunities in additional sectors such as mining, communications, mass transportation, construction and infrastructure.

Across the Continent

Sea Cargo Logistics, which has operations in Mexico, Peru, Colombia,

Panama and Costa Rica, recently teamed up with an Italian partner to import machinery and equipment for the Panama Metro Line 3, a 34-kilometer monorail project being developed as part of the subway system in Panama City. The new line, slated to start full operations in mid-2025, is billed as the country’s largest infrastructure project since the expansion of the Panama Canal.

Between 2021 and 2023, Sea Cargo Logistics oversaw the transport of 23 shipments to Panama’s Port of Balboa and the project cargo-handling Manzanillo International Terminal close to the Atlantic entrance to the Panama Canal. The cargo, which included 80-ton piling machines, cranes, sedimentation tanks and auxiliary machinery, was carried to the construction site on lowboy trailers to enable transit through tunnels and under pedestrian bridges.

Costa Rica’s project sector is also booming, Vasquez said, with megaprojects focusing on highway overhauls, airport expansions and new rail lines. Most renewable energy buildout is happening in the sparsely populated northernmost province of Guanacaste, which in recent years has become the beating heart of the country’s green energy revolution. Last year was the eighth consecutive year that power generated from renewable

resources represented more than 98 percent of total energy output. In 2017, the country ran on 100 percent renewable energy for 100 days in a row, setting a new world record.

Some 16 of Costa Rica’s 18 commercial-scale wind farms have been erected on the volcanic Cordillera de Guanacaste, with rotor blades, ring generators, steel towers and other components carried upcountry from Caldera, the country’s main port on the Pacific Coast.

Costa Rica’s hydroelectric dams have also been big business for breakbulk, while the installation of industrial-scale warehouses has also emerged as a surefire source of cargo-carrying contracts. “The building of bigger and much bigger warehouses is now a common business in Costa Rica and as it is, the country needs to bring absolutely everything from abroad, for which we are participating and supporting local companies,” Vasquez said.

Challenges in Guatemala, Honduras

Opportunities for project logistics are also on the rise elsewhere in Central America.

Guatemala City-based KTC Logistics, a specialist in the transport of breakbulk and out-ofgauge cargo, recently managed the

Discharge Port of Barrios, Guatemala.

Credit: KTC Logistics

door-to-door transport of a 63-ton power generator from Finland to El Salvador. The nearly-five-meterwide component was shipped on a roll-on, roll-off vessel from Finland’s Port of Rauma to the Port of Antwerp before its onward journey across the Atlantic to Guatemala’s Caribbean breakbulk-handling Port of Barrios.

From there, KTC Logistics carried the cargo by road from Barrios southwards along the Honduran border, then crossed into El Salvador for the short trip down to the construction site in the port city of Acajutla. According to Marc Mahle, CEO at KTC Logistics, the unit was successfully delivered ahead of schedule.

Still, the 490-kilometer drive from Guatemala to El Salvador exposed many of the challenges that typically confront breakbulk movers in the region, with Mahle pointing to the laborious task of calculating and checking the strength of “dozens” of bridges along the route, as well as grappling with low height restrictions in Guatemala of less than five meters.

Project logistics in Guatemala’s

next door neighbor Honduras can be an equally exacting business, with an infrastructure network often proving a big headache for project professionals tasked with carrying heavy breakbulk cargo through the country’s mountainous, rugged terrain.

“For just one project, you can estimate a cost for civil works to bore through mountains or build new bridges of maybe US$7-8 million,” Mahle said. “Compare that to Costa Rica: for a similar size project, you’re talking maybe US$800,000900,000. It’s a big difference, but there’s so much more work needed in Honduras. Everything is a little bit more open in Costa Rica as well. The country is helping foreign investors and companies more in terms of taxes and free zone regimes to incentivize investment, so it’s more interesting to do business there.”

Politics at Play

The region’s often volatile politics with its endless lurching back and forth between right and left can also impact project planning and execution.

Christopher Knuth, general manager of KTC Logistics’ sister company in Honduras, KTC Heavy Lift, recalled an incident when the company had shipped 19 diesel generators weighing 50 tons apiece by barge from Panama to Honduras during the Honduran presidential elections in 2021. Towards the end of the move, close to the construction site in Honduras, Knuth and his team were told by the client that a change in government had forced the construction project to be abandoned. The motors ended up surplus to requirements and were eventually sold to private investors in other countries.

“This instability is very common in the region when the government is involved in projects,” Knuth said.

Despite these challenges, breakbulk movers are gearing up for some major project activity in both countries. Business intelligence platform BNamericas has reported that in Guatemala, the government has earmarked US$680 million for spending on infrastructure projects, including US$220 million for the Belize

Panama caption. Credit: Sea Cargo Logistics

“COSTA RICA IS HELPING FOREIGN INVESTORS AND COMPANIES IN TERMS OF TAXES AND FREE ZONE REGIMES TO INCENTIVIZE INVESTMENT”

II bridge in Guatemala City. The project, slated for completion in 2026, would connect different zones in the city, reorganize road networks, and reduce congestion. Guatemalan contractor Grupo Muratori was awarded a contract last year to design and build the bridge.

Honduran ports company ENP, meanwhile, has inked a US$269 million agreement with China Harbor Engineering Company to overhaul the Pacific port of San Lorenzo, a project that would include the construction of a new 300-meter pier and some major dredging work. The deal, struck after Honduras established diplomatic ties with China earlier this year, also calls for the installation of two bridges at the Caribbean port of Cortés – the region’s sole deepwater port.

As rising population numbers exert pressure on national grids, both countries are also looking to exploit their abundant natural resources and expand their renewable energy capacities.

Honduras’s first wind farm – Cerro de Hula, about 20 kilometers south of capital city Tegucigalpa – came online a

decade ago and is the largest in Central America. The 126-turbine farm has a capacity of 102 MW, providing power to some 50,000 homes.

Other projects in the making include the 99-MW Yuayupe wind farm in Paraiso department, and Francebased developer Total Eren’s 112-MW San Marcos wind farm in southernmost Choluteca department. The project, billed as one of the largest foreign investments in a renewable energy project in Central America, also calls for grid reinforcements, including the construction of 95 kilometers of transmission lines and a new 230-kV substation, as well as the overhaul of two existing substations.

Meanwhile, El Salvador’s first commercial-scale wind farm, the 54-MW Ventus project in northwest Santa Ana department, began operations in 2021; the project’s Guatemalan developer Tracia Network is also active in Nicaragua’s renewable energy sector.

The EIC’s project database is currently tracking 16 large-scale solar PV, wind, hydro and geothermal

projects in Guatemala, Honduras, Costa Rica, El Salvador and Nicaragua with a combined capex topping US$4 billion. In addition to renewable energy, the transmission and distribution sector provides opportunities in Guatemala, Honduras and Nicaragua, with close to US$500 million of capex tracked across the three countries, EIC’s Ferreira said.

Central America’s economies, meanwhile, remain buoyant, with the International Monetary Fund forecasting growth in the region of 3.8 percent this year and next versus 1.6 percent and 2.2 percent, respectively, for the whole of Latin America and the Caribbean. Panama’s economy this year is tipped to expand 5.0 percent, outpacing every other nation in the Americas barring the Caribbean.

If logistical challenges can be overcome and investments continue to flow, Central America stands every chance of emerging as an exciting project market in the coming years.

Colombia-based Simon West is senior reporter for Breakbulk.

Passing through a bridge in Guatemala. Credit: KTC Logistics

Breakbulk Throwback: 1998

COMPLEX LOGISTICS FOR ITALIAN-MEXICO-US TRANSPORT

A First-Hand Account of a Challenging Project

The scope of this project was very complex, probably one of the most challenging “door-to-door” transports ever performed on a long itinerary combining many different segments, interfacing issues and techniques.

Our job consisted the complete transport of two steam generators, each weighing 710 tonnes and measuring 22.6 meters in length with a diameter of 7.30 meters from the manufacturing plant in Milan, Italy, all the way to the receiving Palo Verde Nuclear Power Plant, located near Phoenix, Arizona.

I signed the contract with the client, Arizona Public Service, in 1998. At that time the scheduled execution and delivery date, early 2003, appeared far away, but more than four years were just enough to setup and manage full and complete engineering, planning, preparation and execution of all necessary civil, road, barge and nautical work, and the permitting procedures, including a very consistent amount of civil construction and improvement activities on roads and transhipment facilities in Italy, Mexico and Arizona.

By Riccardo Tippmann

To allow a safe journey to the nearest river facility, considering that transport of the fully assembled steam generators was not possible because of weight and measures, we designed and constructed a special convoy and carrying frame to transport the main part of each steam generator to the inland river port of Cremona. Still, the resulting road convoy was more than 100 meters long with an overall weight exceeding 1,000 tonnes and a total height of more than 9 meters.

Steam generators cross the Mexican desert. Credit: Fagioli.

Many civil road improvements and bypasses were necessary and had to be designed and prepared on the 45-kilometer itinerary to finally obtain special permits from the authorities. From the inland port the transport took place by barge to the industrial port of Marghera in the northern Adriatic, where a special facility was chosen to finally assemble the main parts into two finished steam generators.

Mexican Port Provides Best Transport Solution

After several itinerary surveys in the U.S., it became clear that due to several impediments and limitations from any U.S. port, the unique port-of-entry to allow the transport to Arizona would have to be a Mexican port on the Pacific side to accommodate a safe mooring of an ocean vessel with considerable draft. Finally, we decided on Guaymas in Baja California, the nearest to Puerto Penasco in Sonoyta State, a small tourist port from where the route to Arizona was feasible.

In consideration of the committed pre-advice to match the agreed delivery schedule, we chartered well in advance a special self-geared heavy-lift vessel to transport the two items from Italy through the Panama Canal to Guaymas. The timing of the final assembly of the steam generators in Marghera lasted several months; it was therefore imperative to plan the shipping date very carefully in perfect combination with cargo readiness.

Matching the arrival of the ocean vessel in Guaymas, we prepared a suitable roll-on, roll-off barge on which the generators were transshipped and accommodated on shorter selfpropelled modular trailer platforms.

Many months before arrival a special temporary offloading dock was also designed and constructed in Puerto Penasco. Here the barge was moved and grounded to allow beach landing and safe rolling off for further preparation of the road convoys.

Through the Deserts

The journey through the deserts of Mexico and Arizona resulted in one of the most complex logistics ever planned. A lot of different interfacing with multiple participants was required. It took us around four years of intensive work with the client to prepare, obtain permits, coordinate and manage all necessary civil road improvements and construction for the safe transit of two convoys of more than 1,000 tonnes each over a 300-kilometer itinerary.

More than 40 different direct interfacing entities were part of the process both in Mexico and the U.S., from private property owners to utilities and road authorities, national park organizations (for transit through Organ Pipe Cactus National Monument), environmental officers, Corps of Engineers, city and border authorities, customs officers, railway representatives and many more.

Several bypasses and road segments were constructed along with considerable improvement excavation work to allow safe under passage of the very high convoys under Interstate crossings.

Special logistics like mobile accommodation for the crew of about 30 people was necessary due to shift work and no facilities available on the itinerary, a trip of about 20 days through desert areas.

Continuous formal communication with Mexican authorities was also fundamental in consideration of the required transit of such delicate and strategic cargo through the country along the only technically possible route. Their support was vital.

After a trip lasting around 90 days, the two steam generators were delivered safely on site at the power plant about 10 days ahead of schedule, thanks to more than four years of planning.

It was an example of great teamwork among all participants, entities, all utilities and stakeholders. The client was particularly satisfied so that after some time, we signed an additional contract for another four replacement steam generators to the same plant on the same itinerary.

A legacy and cooperation lasting more than 10 years in total - a fantastic experience.

Riccardo Tippmann is an Austrian citizen living in Milan, Italy, with more than 40 years in the heavy transport, heavy lifting and project forwarding industry. He joined the Fagioli Group in 1985 as business development manager and over 33 years with the firm he set up and managed several group companies in the U.S., Canada, Germany, Poland, UK, UAE, Iran, India, South Korea, Singapore, Australia and others. He served as executive director and member of the board at Fagioli Corporate global HQ from 2008 to 2018. Riccardo now operates as an independent professional consultant at his own firm RTC. Riccardo can be reached at riccardo@rtconsult.it

Cargo on a barge draws a crowd at Puerto Penasco. Credit: Fagioli.

HEAVY UNDERTAKINGS FOR LIGHTEST METAL

U.S. Lithium Mining and Processing Set to Surge

Mid-century American films immortalized down-on-their-luck prospectors astride crotchety burros, staking claims across the deserts of Nevada. In a Biden administration-triggered twist to transition the U.S. to clean energy, those prospectors are back, minus the burros. This time they are looking for lithium, which is a critical mineral in electric vehicle battery production.

The Nevada Division of Minerals reported 20,127 active claims as of April 30, 2023, almost all for lithium or lithium brine. These claims span 18 hydrographic basins.

Lithium, sometimes called white gold, is a soft alkali metal. It is scattered around the globe, usually found in low concentration in rocks and brines and clay. In Nevada, and indeed in all of the U.S., there is only one active mine, the Silver Peak Mine. It is operated by the world’s second largest lithium company,

Region: North America

Problem: Domestic production of lithium is falling well short of ultra-ambitious government targets

Solution: Project cargo supply chains need to be built from scratch for the U.S. energy transition

North Carolina-based Albemarle Corp.

The Nevada operation removes lithium-laced brine from underground aquifers and deploys evaporation ponds that leave behind the lithium and other minerals.

The U.S. is currently supplying 1 percent of world lithium, nowhere near what is needed for the American energy transition, according to Tim Crowley, vice president of government and community relations at Lithium Americas. He said: “The U.S. hasn’t built

By Lori Musser

a lithium production facility since the 60s. We are [almost] completely dependent on foreign sourcing. Most comes from South America or Australia, but it is processed in Asia, predominantly in China.”

The U.S. is vulnerable from a supply standpoint, and a national security standpoint. There is a tremendous push to begin to grow the domestic supply of lithium and other minerals critical for the energy transition.

According to the Federal Consortium for Advanced Batteries’ National Blueprint for Lithium Batteries 20212030, the global lithium battery market is expected to grow by a factor of 5 to 10 in the next decade.

A 2021 report by Wood Mackenzie confirms growing demand. Wood Mackenzie’s base case scenario expects EV penetration to reach 23 percent by 2030. “The transition to the massive scale-up of EVs naturally points to an

A new clay-based lithium mine and processing facility is under development at Thacker Pass

Credit: Lithium Americas

equally high demand for Li-ion batteries. By 2040, 89 percent of Li-ion battery demand will come from the EV sector.”

Max Reid, research analyst at Wood Mackenzie said: “Underneath the surface of this electric future lies a relatively young supply chain struggling to keep up. The Li-ion battery demand market can fluctuate over months and expanding upstream and midstream to produce battery materials involves lead times of several years.”

Administration’s Push for Domestic Lithium

The Biden Administration has incentivized EV production and, directly and indirectly, lithium production, through its Inflation Reduction Act. For example, there are now Advanced Manufacturing Production Credits (for producing materials such as battery cells, battery modules and critical minerals), and special Defense Production Act Funding of US$500 million for additional incentives to spur onshoring for critical minerals. A major pool of capital is available through the Bipartisan Infrastructure Law, with provisions to spark investment in mineral and raw materials supply for battery makers.

John Bozzella, president and CEO of the Alliance for Automotive Innovation, cast his support for these developments in a recent statement. He said: “There is more than US$15.5 billion in incentives and grants to ensure the United States is building automotive supply chains and a globally competitive battery manufacturing platform.” He emphasized that the Inflation Reduction Act will help expand the production of EVs … and locate raw material and battery components on American soil.

Now that batteries for new EVs have to be sourced in the U.S. (or a very short list of favored countries) to qualify for tax credits, entirely new supply chains from mine to dealership will need to develop. The U.S.’ new climate policy doesn’t plan to rely on the dominant global supplier of lithium, China. So the

Department of Energy is busy awarding sizable loans and some grants to lithium companies.

Lithium Americas is one loan recipient. In February 2023, it received a Letter of Substantial Completion from the U.S. Department of Energy Loan Programs. “We are now in due diligence,” Crowley confirmed. The loan is expected to cover up to 75 percent of capital costs for Phase 1 construction at Thacker Pass in northern Nevada.

Mining and processing companies are announcing new lithium properties and developments throughout Canada and the U.S. For example, lithium brine extraction and technology development company Prairie Lithium announced in 2021 that it had acquired 188,000 acres of subsurface mineral permits in Saskatchewan, Canada. In June 2022, Albemarle Lithium CEO Eric Norris unveiled plans to construct a lithium processing plant in the U.S. Southeast with a capacity of 100,000 tons per annum by 2030. The new plant would be supplied with lithium produced by Albemarle’s currently mothballed Kings Mountain mine in North Carolina, which, the company said, could be reopened by 2027. In December 2022, Lithium One Metals announced that it signed option agreements to acquire six lithium properties in northwest Ontario in Canada. Also in December, Koba Resources acquired two Canadian lithium-pegmatite projects.

Spotlight on Thacker Pass

The biggest industry news by far is for the massive new clay-based lithium mine and processing facility now under development at Thacker Pass. General Motors, with 10 percent of shares and rising, is a key investor in this project.

According to Crowley, GM will have access to all the Thacker Pass product for the first ten years. A fee scale has already been negotiated. For now, other buyers will have to look elsewhere for American product.

Ailie MacAdam is president of Bechtel’s Mining & Metals global business unit. She confirmed that Bechtel is the engineering, procurement, and construction management contractor selected by Lithium Americas for the 40 ktpa lithium hydroxide plant.

Aquatech International was awarded the contract for the magnesium sulfate and lithium carbonate chemical plants.

Core samples to prove the presence of lithium.

Credit: Lithium Americas

Ailie MacAdam

EXP Global was awarded the sulfuric acid plant contract with MECS, Inc. technology.

The Thacker Pass project may prove to be pivotal in the U.S. energy transition.

MacAdam said to Breakbulk: “Our role is to enable the U.S. green energy transition by applying our experience in complex projects and EPC execution for mining and other customers. We’re seeing growth signals not only in lithium but also nickel, copper, and rare earth elements.”

Bechtel’s expertise in process design, engineering, constructability, modularization, pre-commissioning and start-up, and project management tools, undoubtedly played a role in its selection for the project, but another important factor, MacAdam said, was Bechtel’s strong relationships along the supply chain.

“Our customers are keen to meet the urgent demands of the energy transition. We can support this through our Centers of Excellence which house our teams of experts in specialty areas such as process technology, plant design and bulk material handling,” MacAdam said.

At Thacker Pass, lithium is found in large quantities at the site of a longextinct super volcano, where clay deposited in a basin millions of years ago can now be relatively easily accessed with open-pit mining.

Thacker Pass is the only new lithium project permitted at this time in the U.S. Other projects are being advanced, but Thacker Pass is the largest.

“There is not enough supply to fulfill demand. The industry is in a catch-up mode. The U.S. needs more projects of our size,” Crowley said to Breakbulk.

The US$2.3 billion Thacker Pass project will build a mine and chemical processing facilities. Approximately US$2.1 billion will be invested in the processing facilities. Production of lithium carbonate will begin at about 40,000 tons per year. By comparison, the U.S. produces about 5,000 tons per

year. “There is a 40-year mine life. Eventually, production will increase to 80,000 tons per year. The facility wants cash flow before scaling to size,” Crowley said. He added that 40,000 tons of lithium carbonate would fill the need to make about one million EVs annually in the U.S./Canada.

Thacker Pass Lithium carbonate is slated for use in GM’s proprietary Ultium battery cells.

Nascent Supply Chains

In March, Thacker Pass initiated its “early works” construction – water, road, fencing, security, concentration pond, and so on. “Construction will ramp up and earthwork will start soon,” Crowley said.

“There is a 30-month buildout, but the clock hasn’t started,” he added.

Project cargo for the buildout is mostly transiting through Winnemucca, Nevada, a rail site since the 1860s when the transcontinental railroad laid tracks through the town. The town sits about 50-60 miles from Thacker Pass.

Lithium Americas is building a transload facility in Winnemucca. The company uses reagents, as well as sulfur, caustic soda, lime, diesel fuel – most will arrive by rail in bulk then be transloaded to trucks.

“The finished lithium carbonate will move out of the processing facility in super sacks by truck,” said Crowley.

The supply chain for lithium is complex. “Once the chemical is made, it is turned into a cathode, and then it is turned into battery cells that are then incorporated into battery packs before finally going into the EVs,” Crowley said.

GM is reportedly investing more than US$7 billion in a venture with LG, building three battery plants, one each in Ohio, Tennessee, and Michigan. A US$2.5 billion Department of Energy loan was awarded to assist. Other auto manufacturers are investing similarly.

Entire supply chains are being built from scratch for the U.S. energy transition. There are opportunities in project logistics for the many lithium mines and processors, battery plants and EV production facilities that will be constructed in the U.S. and the world over. And there are opportunities to transport the raw materials and input components used by all these operations, as well as their output.

American lithium supply chains are expected to be a lead player in achieving U.S. greenhouse gas reduction goals.

Based in the U.S., Lori Musser is a veteran shipping industry writer.

Bechtel is the EPC for the Thacker Pass’ 40 ktpa lithium hydroxide plant. Credit: Lithium Americas

‘TOUGH FEW YEARS’ AHEAD FOR GLOBAL ECONOMY

Inflation, Supply Chain Shortages Hamper Growth

Independent trade economist Rebecca Harding spoke to Breakbulk about the big factors driving economics, global trade and supply chains in the U.S. and further afield over the next 12 months.

Q: What are the main challenges facing the global economy?

A: A lot of what happened in 2022 – and what has continued in the first half of 2023 – has been a product of us not necessarily understanding how globalization really works. What we haven’t realized is that if those interdependencies that have been built between all countries across the world through international trade – if any of

those pillars falls – then the whole system starts to creak. We’ve seen that particularly in supply chain issues, and today we’re looking at results from the U.S. which suggest that the trade gap has widened. More imports are coming in and less exports are going out, and a lot of that is because of supply chain shortages. That comes in the wake of the pandemic, China’s slowdown and general logistical issues around all of this. We have a series of problems, and in a sense the Russia-Ukraine crisis just acted as a catalyst to everyone thinking about what global trade meant and how the international economy was going to go. It’s not a great outlook I’m afraid. I think some parts of the world are going to avoid recession

By Simon West

where it had been accepted that recession was going to happen, but it’s going to be a tough few years ahead.

Q: Why are countries around the world struggling to rein in inflation?

A: Inflation is coming from two things. The first is massive spending by governments around the world during the pandemic. This was hugely inflationary, and there’s a lot of retrenching now in terms of interest rates and reining back expenditure to try and bring that under control. We’ve seen that recently with the U.S. debt ceiling in the last couple of weeks. The other source of inflation is supply chains. And this is where China comes

Project move at Portland International Airport.

Credit: Mammoet

in, because we don’t know how quickly the Chinese economy is going to recover – there’s a sense that maybe it’s not recovering quite as quickly, which means its production base is not quite as strong. And that creates supply chain shortages, which are still being seen in countries like the U.S. and the UK, where the economies are very dependent on imports from China. All of that creates inflationary pressures in the global economy. But we’ve also seen this big switch from Russian fuels in Europe towards renewable energies and supplies from the Middle East and America. And that has also created a lot of upward pressure on prices.

Q: Turning to the U.S., is the country in danger of tipping into recession?

A: The U.S. has narrowly rescued itself from recession by allowing the debt ceiling to be raised. And I think that was more about America’s position in the world and the power of the U.S. dollar in global trade, because obviously the dollar is the largest currency in international trade and so they had to do something – they could not let that debt ceiling be hit. There’s still some nervousness out there, but if you look at retail spending, it’s still very strong. If you look at imports coming into the U.S., it suggests the consumer market is still buoyant, and inflation is coming down quite quickly. The Federal Reserve is starting to be a little bit more bullish on outcomes, and that says to me that we’re not as worried as we were at the beginning of the year.

Q: How will the Biden administration’s Inflation Reduction Act impact the economy and trade?

A: The inflationary aspects are less important than the supply chain aspects of this. Effectively, it is a very large-scale program with huge amounts of money behind it to facilitate energy transition and more sustainable economics. If we are

beginning to focus on making global trade more sustainable, that’s brilliant because local trade is worth something like US$23 trillion. And much of the global finance behind all of this doesn’t come from the companies themselves but comes from banks – about US$17 trillion. Only one dollar out of every five of that is going positively towards sustainable development goals. So, if we can start to think about how to make trade more sustainable - and the IRA is a mechanism for doing that - then that has to be a good thing. The flip side is that there is a huge amount of infrastructure that needs to be built, and technology and research and development that needs to be done, and a huge amount of around sourcing rare earth elements and critical minerals to be able to produce, for example, batteries in the West. The G7 actually has a net trade deficit on the things that we need for energy transition. And as you manage that type of transition, you’re spending

money, and that creates more inflation. Global trade is just full of these paradoxes.

Q: How important is political stability for trade in the U.S.?

A: The problem the U.S. has is that politically, it’s deeply divided. That started happening from the rise of Trump in 2015, and it’s creating this huge problem for the economy. Is it going to go down this more isolationist route or is it going to go back into the global fold and start thinking about the power of the U.S. dollar and to drive a positive and more multilateral world around trade again? Is it going to be isolationist, or do we accept that we’ve got to work with China and be a bit more integrative and more outward looking in terms of trade and foreign policy – the two are very closely related.

Colombia-based Simon West is senior reporter for Breakbulk.

Rebecca Harding –keynote speaker at Breakbulk Europe 2023. Credit: Hyve

CAPTURING THE BENEFITS OF AN AI-DRIVEN WORKPLACE

Human flexibility will still be important as AI gains ground

Fears that AI-driven technology will replace humans in countless jobs are well-founded. This is especially the case in industries such as breakbulk cargo logistics, which are relatively labor-intensive.

However, there are two critically important caveats to this worrisome scenario. First, industrial revolutions such as the one we are now experiencing also create countless employment opportunities. Second, despite AI’s incredible capabilities, it cannot match the flexibility of humans in the workplace.

It is impossible to accurately predict the types of jobs that AI will create because these employment opportunities are undefined. But history teaches us that waves of innovation unleash bounties of new jobs.

An example in the logistics space is the advent of containerization. The concept of carrying cargo in standardized boxes transformed world trade after it became a force for global change in the 1950s. Initially, this revolution in cargo carrying eliminated many jobs because much of the

By Yossi Sheffi

back-breaking work associated with the manual unloading and loading of vessels was mechanized. However, as the revolution gathered steam, it became necessary to mass-produce steel boxes and to maintain and improve their design. Also, switching to standard cargo units opened new ways to improve the efficiency of supply chains. These changes created jobs in manufacturing, cargo operations, and associated fields such as data analytics and demand forecasting. It should also be noted that containerization increased global trade volumes,

subsequently stimulating growth not only in international supply chain management but also in allied industries such as international tourism.

AI will have a similar influence on industries such as breakbulk logistics as the application of algorithms improves and becomes better understood. The impact will vary depending on the nature and size of the industry, but AI-driven innovation will extend to job markets.

Moreover, the value of human flexibility will not diminish as AI gains ground, ensuring that people do not disappear from the workplace. This is often overlooked or underestimated in discussions about the future of work. The flexibility of human workers comes in various forms.

Real-world Experience

A lifetime of experience in the physical world allows people to detect changes or discrepancies between normal and abnormal situations. For example, during the financial crisis in 2008, companies worried about the financial health of their suppliers. Many companies asked for economic data from suppliers, but these numbers could be manipulated and only provided a lagging, infrequently updated view of conditions at the supplier. To augment the data, companies sent people to spot-check critical suppliers’ production of parts or materials on behalf of the company.

Many work tasks involve value judgments and subjective elements based on the system designer’s or manager’s preferences. However, objectives, moral understandings, and preferences change over time. While machines may be able, if appropriately trained, to sift through large amounts of data and present options for actions, people must make the ultimate decisions in cases where the implications matter. This is especially true when the context changes and decisions must be made in a different

environment. For example, when prioritizing the response to a disaster, should preference be given to customers, employees, suppliers, shareholders, or the community? The honest answer is “it depends” on the nature of the event and the context, which are difficult to program or train a model.

People are more adaptable than robots when faced with unstructured conditions and environments. Robotic software systems are built and optimized for specific tasks or domains. However, change (disruptions, new knowledge, new products, competitors’ actions, economic cycles, etc.) can render the machine’s appropriateness moot, requiring a person to take over the task. Also, social networks are adept at creating new corporate organizational structures to manage change. This has happened in response to numerous disruptions over recent years, such as the 2011 earthquake in Japan and the Covid-19 pandemic.

Change that requires adaptation is built into many consumer and technology supply chains, such as fast fashion. These fast-moving supply chains search ceaselessly for differentiation that can spur demand for any new product or service. People, not machines, are part of a cultural milieu that stimulates creativity. Also, humans understand the vagaries of everyday life, and this hands-on experience creates possibilities for new products and services.

Empathy and Communication

While a growing number of AI applications are used in health care, computers cannot show the empathy required of a nurse while treating a patient. Likewise, a machine cannot replace the smile of a service worker, such as a cashier in a local supermarket. Similarly, procurement contract negotiations cannot occur without both sides understanding each

other, developing rapport, and appreciating each other’s points of view. Even though algorithms that mimic these qualities are becoming increasingly sophisticated, it isn’t easy to imagine absolute acceptance of machine-generated, simulated emotions and empathy.

While rules can be programmed based on different contexts, the most appropriate choice in a situation that requires a company to select a way forward may differ from the one suggested by the rules. For example, if the company suspects that a recession is on the horizon, it may prefer the safer course of action rather than the high-risk/high reward. Humans are used to taking such nuances into account when making decisions.

Importantly, awareness of the opportunities AI and related technologies will bring to the workplace is insufficient. To take full advantage of these changes, we must prepare employees with education and training platforms that enable them to acquire and update the skills they will need going forward. In the logistics workplace of the future, people will be required to work with automated, AI-enhanced systems and processes to maintain and improve supply chain performance.

Dr Yossi Sheffi is the Elisha Gray II Professor of Engineering Systems at the Massachusetts Institute of Technology and director of the MIT Center for Transportation and Logistics. Visit sheffi.mit.edu/magicbelt for details of his recent book: The Magic Conveyor Belt: Supply Chains, A.I., and the Future of Work.

Dr Yossi Sheffi

Projects Offer Only Long-Term Cargo Potential

Several hurdles still need to be cleared before full scale commercial hyperloop projects can move forward. Eventually, breakbulk opportunities could be extensive, but opinions are divided over the likely speed and extent of commercial hyperloop development.

A hyperloop is high-speed transportation system for both public and goods transport with pressurized pods that run virtually free of air resistance or friction inside a tube using magnetic propulsion. Hyperloop technologies are slowly being finetuned through pilot projects and testing – mostly in Europe, but also in the U.S. and China, with both full-scale commercial passenger and cargo options being considered longer term. According to market growth reports, the

Region: Global

Problem: Hyperloop technology is in its infancy with safety and regulatory hurdles to overcome Solution: Project cargo logistics support will be needed when commercial-scale loops move from planning to production

global hyperloop technology market size was valued at US$1.15bn in 2022 and is expected to expand at a compound annual growth rate of 40.54 percent to 2028, when it will reach US$8.9bn. But opinions are mixed over the likely future of the technology, and any significant breakbulk opportunities are some way off, according to those who discussed the topic with Breakbulk Hyperloop start-up and research

By Jeremy Bowden

companies, Swisspod, Swissloop and Delft Hyperloop all agreed that before any full-scale commercial system is put in place, more testing is required. HyperloopTT also reported only test or prototype projects. This means test sites are the main area of construction right now and will probably be for several more years to come, presenting limited breakbulk opportunities in the short term. Once the testing is complete then regulatory issues need to be sorted and full political backing secured before a commercial project can be launched. Developers are likely to be consortia backed by government in a similar way to railways. Hyperloop developers said that the first full scale project would probably be freight due to safety and passenger trust considerations, and it would possibly be in the UAE.

Expanding From Test Projects

The Delft Hyperloop team said that while there were no actual projects yet, “there are quite a few companies who are building large test tracks with actual vacuum tubes.” For example, Hardt Hyperloop is building a test track of around 300 meters in Groningen, which they hope to “eventually” extend to 2.6 kilometers by 2030. “This will prove the possibility of travelling with a hyperloop,” they said.

Work on the project has begun. Managed by the European Hyperloop Centre (a public-private initiative by the Province of Groningen, the City of Groningen and Hardt Hyperloop), the project is beginning hyperloop-specialized tube steel production in partnership with

Tata Steel Nederland (TSN), Korean POSCO, and Hardt Hyperloop.

Steel has already been shipped and supply of the hyperloop-specific steel alloy will continue through to 2025, in addition to steel for the installation of magnetic tracks in 2023.

It is hoped that this early test section can then be expanded, and a regional network put in place by 2040 to transport freight and passengers. By 2050, a network of 24,000 kilometers is planned for Europe, although this vision is still some way off.

Other companies involved in testing include Swisspod, which opened Europe’s first operational test track in 2021 in Switzerland, and is partnering with TTCI, a subsidiary of the Association of American Railroads, for the development and construction of another Hyperloop testing facility in Pueblo, Colorado. Swissloop said EuroTube also wanted to build a 3-kilometer test tube in Switzerland by 2027.

HyperloopTT, meanwhile, has a test facility in Toulouse, and in May was awarded an US$800 million contract to construct a prototype hyperloop project in northern Italy, called Hyper Transfer, which is expected to begin later this year. HTT said more projects should be announced “in the coming months.” HTT has also been active in the development of a hyperloop insurance framework in partnership with Munich Re and safety and certification guidelines in the U.S. and Europe. HTT said it was still focused on its Great Lakes Hyperloop project in the U.S., which it claimed is the most comprehensive study for a commercial hyperloop system in the world so far.

Global Reach of Projects

In Asia, there are plans in China, which sees hyperloop development as a strategic priority, although a commercial project is not expected to be running until 2035. India also has plans for a network between major cities, starting with the Mumbai-Delhi corridor. A collaboration between Hardt

Hyperloop and India’s TuTr Hyperloop aims to achieve interoperable hyperloop technology between Europe and India.

And in west Asia, Hyperloop One (previously Virgin) is reportedly considering a freight route (after abandoning plans for a passenger route last November) between Dubai and Abu Dhabi in partnership with DP World, known as DP World Cargospeed. In addition, Hyperloop Saudi Arabia eventually has plans to connect the country’s futuristic Red Sea sustainable city, Neom, with Jeddah, Makkah, Riyadh, Kuwait, Abu Dhabi, Dubai, and Muscat.

However, Vlad Iorgulescu, COO of Swisspod, cautioned that none of the commercial plans had reached development stage: “There are proposed routes, but none of them have received any funding or regulatory approval. These processes take a very long time… There are test sites, and those are being expanded – but they are purely for testing technology and not for commercial use. After the testing is complete, the project needs to be prepared on a commercial basis, alongside the lengthy process of permitting, budgeting and obtaining rights of way before logistics are considered.”

Louis Chambre, operations lead at Swissloop, added that the outlook for the hyperloop industry was unclear. “On one side, Hyperloop companies/projects are convinced that it will become reality in the next 20 years; others don’t believe it will come at all. I expect that the first (commercial) project will become a reality in the UAE, where there is financial support and where the desert allows for easy use of tubes.”

Chambre added that while hyperloop activity would make most sense in Europe or the U.S., high speeds mean curving lines around obstacles such as villages is not possible. So, it is now felt that hyperloops will need to be underground – making them more expensive in those countries. “Then also comes the long-term financial question – is the EU able to commit to investing large sums for the next 30 years?”

Credit: Hardt

Progress in Europe ultimately depends on support from the EU, national governments and private industry. Some manufacturing and project management companies are already involved. For example, Siemens, Leybold, Lawrence Livermore Labs, and Hitachi Rail are involved with Hyperloop TT and are developing aspects of the technology. Some hyperloop start-ups have also received support fro m stateowned companies. For example, Zeleros has partnered with Spanish railway RENFE and Nevomo has signed a cooperation agreement with French railway company SNCF.

Testing Still to Be Completed

Swisspod’s Iorgulescu said that, to date, very few hyperloop companies had even built testing facilities, which he said were indispensable for any company involved. He cautioned that while certain subsystems within hyperloop technology had reached a level of maturity suitable for market deployment, the overall technology readiness level, or TRL, of the entire hyperloop system remained relatively low.

“While it is technically possible to build a hyperloop system using existing technologies, it would still require thorough testing and validation to meet rigorous safety and performance criteria, a critical step that is yet to be undertaken.” And to guarantee the economic viability of hyperloop, he said further advances were necessary, particularly in propulsion. “These advances aim to enhance energy efficiency and reduce infrastructure costs.”

The Delft team agreed that there are still some technologies that need to be developed, including lane switching, heat control, optimum system choice and how the pod will move from a vacuum environment to the station at atmospheric pressure.

In addition, strategic partnerships, regulations, and standards must be sorted out, all of which build upon the TRL of each existing hyperloop company, according to Iorgulescu. Delft said different companies in EU countries are still using different hyperloop systems, including hanging or floating pods, and different motors, which all needed to be standardized. Germany and Holland agreed last fall to cooperate in this area.

Iorgulescu said it was likely that the first operational routes for hyperloop would “become available towards the end of this decade,” but “predicting where the first routes will be implemented poses a challenge, as these projects heavily rely on political perceptions and incentives.”

Regulation a Prerequisite

As well as more testing, hyperloop developers agreed that the formulation and implementation of a robust regulatory framework was a prerequisite for hyperloop deployment in Europe.

Iorgulescu said the European Hyperloop would have to cross several countries, and will need to run alongside existing transport and other infrastructure. “This means that it will most likely be state-owned, and a lot of regulations will have to be implemented. Security will most likely have to be similar to that in airports and all countries must cooperate.”

Delft said that because the EU hyperloop would be international and take years to build, European standardization was crucial. “There needs to be regulations about what the infrastructure should look like and what systems should be used.

HyperloopTT has been awarded an US$800 million contract to construct a prototype hyperloop project in northern Italy.

Credit: Hyperloop TT

Without this, every country would do its own thing.” This is less of an issue in the U.S., where private capital is likely to play a bigger role.

Iorgulescu noted that the EU had already taken some initial steps in regulating hyperloop. A standardization committee (CEN/ CENELEC) has been founded and an initial regulatory framework was included in the European Commission work program in 2023 for the first time.

Swisspod said that seven companies (Hardt, Zeleros, Swisspod, HTT, Nevomo, Transpod and H One) are currently involved in manufacturing hyperloop components and project management. “Each company aims to develop its own proprietary technology either internally or by leveraging existing solutions from known suppliers.”

Hyperloop companies need to collaborate closely to shape the regulatory and standardization framework, but that is not happening. “Currently everyone is holding their cards close to their chest, and all are trying to build the whole thing, but over time you will see differentiation among the companies focusing on

different areas, such as open-air solutions, some services, some on propulsion,” Iorgulescu said.

Swisspod is prioritizing the development of the hyperloop vehicle, with the ultimate goal of becoming the main provider within the sector, although HTT said it had teamed up with Airtificial in Spain to make its first full scale passenger capsules. Swissloop’s Chambre said the Hardt Hyperloop start-up is the biggest player on the European market and is focusing on development of a lane changing feature for the hyperloop track. Several companies are involved in different guidance systems. The competing technologies must be objectively assessed, and a single option chosen to ensure a standardized approach in Europe.

Iorgulescu said there was currently no breakbulk involvement with component design. “If we look at purely construction, we can take our inspiration from the rail network – it will be a similar form of construction and component installation, with exception of tube added on top (possibly).” The hyperloop can be above ground with islands, or in a ditch in the ground or below ground.

Depending on the option chosen there will be different logistics requirements and construction methods – large concrete slabs and stanchions may be required. The tubing material choice will be steel or composite material, with the main objective to reduce the cost of the tube and its operation.

Organization, Pitching and Tendering

Swisspod said that the logistics pitching and tendering process, when it comes, would be managed by consortia. “The realistic approach to realizing hyperloop infrastructure is through Public-Private Partnerships, which employ a design-build-operatemaintain business model. Under this model, a consortium consisting of various companies will collectively contribute with their expertise in specific areas,” Iorgulescu said.

The type of consortia was expected to depend on the scale of the project – if national, then national-backed consortia, if supranational then that needs to be at EU level. “But I think that these are conversations that are well in the future at this point. For these consortia to be formed, you need to build them around something; feasibility studies are a nucleus you can begin to build around, but as long as you don’t have the technology ready, you are doing just studies.”

However, HTT said it already had agreements with some construction and operations companies, such as WeBuild and Leonardo in Italy and global infrastructure leaders like Capgemini and Altran. A spokesperson said: “Innovative port operator HHLA in Hamburg worked with us to develop our HyperPort System which is being looked at by several leading ports around the world.”

Jeremy Bowden is a freelance journalist, researcher and analyst, specializing in energy matters with a focus on the energy transition.

Seven companies, including HTT, are currently involved in manufacturing hyperloop components and project management.

Credit: Hyperloop TT

By Gautham Krishnan

ATTRACTING TALENT IN PROJECT LOGISTICS: GAPS AND OPPORTUNITIES

The Industry Needs to Rethink Its Attractiveness in the Modern Age

How receptive has the industry been in attracting fresh talent or welcoming back those who have left the sector for other arenas? Are the pastures green for project logistics? These are relevant questions amid the various challenges in the supply chain today.

While passion towards particular roles and/or sectors are definite drivers when individuals choose a career, project logistics isn’t usually

among the most preferred choices. Start-ups, E-commerce, consulting, investment banking and so on are well-sought avenues, favored for their quick, high-flying career paths, albeit with long and demanding hours. The rigors and processes behind moving heavy equipment or critical packages might also require haphazard working hours, but it is irregular and on a case-by-case basis.

There’s also the complex nature of project cargo and the traditional nature of projects to consider, with both calling for experts and specialists at the helm. Specialization in certain areas means that some roles can be considered richer than others. Conventional roles in the sector lean towards specializing in a specific/ particular key area while gradually exposing the professional to other

Credit: deugro

areas. There is also cognizance of the fact that the sector is perhaps outof-tune with the younger generation.

A couple of decades ago, professionals would have agreed to take on back-end clerical roles that would lead to gradual carving of a specialist. But today, professionals are ready to embrace challenges more quickly, demanding a quicker path to the top. The agile nature of projects and the flexibility of challenges steer professionals towards roles where in-depth knowledge in a set of work functions result in better rewards in terms of designations and compensations. Is this something that the project logistics sector should consider? Rather than expecting the newer talent to fit to existing roles, can the industry be flexible to the tunes of the younger generation? This needs food for thought from all stakeholders.

The project cargo industry has seen pioneers who’ve steered the industry through tough waters, but many of them are in the twilight of their careers. While natural succession of incumbent talent is a must to replace this knowledge drain, there should also be breakthroughs beyond conventions to look out for talent from other sectors.

The sector estimates a compounded annual growth rate of 4 percent through to 2027-28. Considering the opportunities in infrastructure and consumption across the globe, this could be viewed as conservative. This growth requires fresh perspectives and knowledge beyond conventional project logistics functions.

Training Gaps

Another aspect that the industry needs to be aware of is how to bridge the gap in training. Learning and development is a key facet of digitally driven sectors. Unfortunately, for our sector, learning and

development and upskilling have been concentrated in geographies and areas. Consequently, there is a need for more affordable and better chalked, ‘all-round’ programs for professionals, which again demands the joining of hands. This stands apart from the need of mentorship at each organization level for budding professionals and other aspirants.

This isn’t to say that project logistics has always been hard to populate. International exposure via travel to project sites helped mold professionals. However, the industry has evolved with a realization that a fair degree of execution and interaction can happen without travel. This evolution is possibly less attractive for new professionals who may have considered travel as the industry’s unique selling proposition (USP).

This can be offset to a great degree by more networking opportunities such as Breakbulk conclaves, project logistics conferences and crossstakeholder lunch-and-learns while also expanding these opportunities across geographies. This should also be seen by enterprises as avenues for participation for their younger and mid-level talent, allowing them to shape their personal brand as ambassadors for their companies.

Raising awareness of the job of a project logistician can also attract talent from outside the industry. As someone who has been in the sector and worked in others in the past, I have first-hand experience when it comes to saying that no two days have been equal. There has been a lot of scope to learn, plan, implement, and self-reflect – be it moving heavy equipment from the equator to Europe, planning the roll-on, roll-off operation of a 9,000-metric ton heavy module, or devising pricing strategies for project awards. There has been some satisfaction in delivering both at the individual level and as a team.

Sustainability Starter

Sustainability, meanwhile, is painting the sector greener. Despite being a late-starter and a slow-adapter, the era of analytics and digital transformation will catch-up the sector. Adoption is the key to remaining competitive and project cargo companies can use these tools to usher in strategic differences in corporate strategy. From dashboarding and tracking mechanisms of cargo to adoption of AI/ML for planning and audio-video analytics for site management – all will become a part of the sector at some point in the not-so-distant future.

The very nature of contracting too has undergone changes. The industry is gradually seeing the rise and benefits of index-linked contracts, hedging strategies, and predictive pricing algorithms. This could attract new talent with different perspectives and experiences into the industry.

While these are some of the key areas the industry can offer professionals looking for a different set of challenges, the basics will hinge upon the necessities of competitive benefits, a well-rounded atmosphere at work, the scope to learn and the broadening of experiences across geographies or functions, leading to high-paying, growable career paths.

The packaging of a well-structured talent management plan for the project logistics professional is as complex as the sector itself. Still, the sector could help itself by listening and adapting. It could bring in newer faces, solutions, perspectives and perhaps a newer path to evolution.

Gautham Krishnan is a logistics professional with Fluor Corporation. A project management professional, an alumnus of the Indian Institute of Management, Bangalore and a naval architect, he has handled and led heavy-lift projects and project logistics implementation. He has also worked in the areas of project management, business development and government consulting.

By Felicity Landon

Green Credentials of River Moves Butt Against Water Fluctuations

The desire for ‘greener’ transport solutions, the trend towards more modularized construction projects requiring movement of large modules to site, and the practicalities that were always there add up to continued demand for the shipment of project cargoes by inland waterways.

The specialists involved are well used to ‘thinking outside the box’ here. Now they must find innovative ways of working around the growing uncertainties of water – too much, or too little – as well as changing expectations from authorities.

The challenges have increased over the past 10-20 years, with a number of floods, said Frederik Geirnaert, global group project manager at Antwerpbased Drewes Logistics. “As a result of those disasters, the authorities have of course become increasingly mindful about the importance of riverbanks and dykes, which in turn

Region: Europe

Problem: Extremes in inland waterway water levels are upturning project planning in Europe

Solution: Technological improvements in measurement and the expertise of project cargo specialists allow for continued use of canals and waterways

can make it complicated to receive permission to move heavy cargo over those banks in some locations. But we fully understand that the integrity of the riverbanks is paramount and, to our good luck, with a proper technical study we have so far always managed to propose a technical solution that was accepted.”

He noted that on the one hand there is flooding to contend with

and on the other there are droughts.

“More than a few inland waterways have always had seasons where inland waterway transport was not possible on some sections of this or that particular river, but in the past five years we have noticed that these periods have become significantly longer,” he said. “There have also been regions and seasons where transport was possible, but at a restricted draft. That in turn caused barges to travel with less load, creating a lack of space and big rate hikes.”

Impacts of Changing Climate

Climate change is affecting inland waterway transport worldwide, but the form of this change and how much a region is already suffering is very diverse, said a spokesperson for deugro. From low water levels due to hot, dry summers, to high

Top: deugro discharges a reactor in Kelheim, Germany. Credit: deugro

water during rain periods, to blockages during icy periods.

deugro highlighted a project to move four liquefied natural gas tanks, each weighing 225.4 tonnes and measuring 48.93 x 5.8 x 6 meters from a manufacturer’s yard in Decin, Czech Republic via the Port of Hamburg to the construction site in the Caribbean.

The transport had been scheduled to start in December 2020, but challenging weather conditions forced a change to plans. With only 90 centimeters instead of the required 1.90 meters, the water level of the river Elbe was too low for any barge transport. deugro had to quickly arrange a secure storage area at the quay near the Port of Rozbelesy, Czech Republic, to store the tanks until the Elbe water level was sufficient.

“At the Port of Rozbelesy, the barge loading operations were executed directly from the trailers onto four barges, one for each tank. After two days of loading and cargo securing, the barges were ready for their voyage to the terminal in Hamburg, with the four river barges connected and then pushed by a tugboat in twos,” deugro said.

Eight days after leaving Rozbelesy and after 536 kilometers of river transit, the LNG tanks arrived at the Port of Hamburg.

Franco Ravazzolo, head of project logistics and breakbulk at Gebrüder Weiss in Austria, said the ongoing increase, and expected future increase, in the use of inland waterways is very much linked to the road permitting situation in Germany, “which is getting worse.”

“We now have waiting times of three to four months for permits, which in the past took three to four weeks,” he said. “Right now (in June) we have had to shift some of our shipments from road to river ship just to get them going, otherwise we would have to wait until September to move them. So, we are experiencing already a strong shift from road to river.”

Vital, But Problematic Routes

Like every forwarder in landlocked Austria, GW uses the Danube, Main and Rhine as vital transport links. GW is preparing to move even more cargo by river, but at the same time this option is throwing up more problems, he said.

“The water levels in the rivers were always a problem. Now it’s more acute, more pressing, especially during the dry season. Here in Vienna, we don’t suffer so much from the low level but in the upper part of the Danube, the German part around Regensburg, for example, the water level in the past 5-6 years has been dropping year after year. This means vessels are still able to call at the ports but sometimes only loaded to 50 percent of capacity to reduce draft.”

There have been frequent draft problems on the Main-Danube Canal, he added: “At one point the lowest level in August was 25-28 centimeters. This is a disaster for river ships, which need at least 1 meter of water under the keel. August is a challenge going north.”

Going south to the Black Sea, the Danube being deeper and wider is not so sensitive to low/high water, Ravazzolo said, but the war in Ukraine is making this option far less attractive, with higher shipping rates and higher insurance costs.

GW is also active in the Czech Republic, sometimes using the Elbe from Prague to Hamburg. “There, the situation is even worse – basically 4-5 months a year where navigation is seriously limited and, on some days, not even possible because of the drought. On the other hand, heavy rainfalls in late autumn and winter can have the reverse effect, with the water too high so we have a problem passing under the bridges.

Overall, he said this leads to negative conditions, with more days where navigation is not possible or very limited. However, on the other hand “we need river vessels even more than ever,” he added.

Normally, a forwarder would seek to bundle cargoes at one port – Linz, for example – to maximize the use of a vessel. However, Ravazzolo said: “This leaves us with a longer transit time and less flexibility.”

In summer 2022, GW was contracted to move two floodgates, each measuring 40 x 9 meters and weighing 140 tonnes, from Turkey to Austria. “We had to store the cargo for two months in Constanza, waiting for the ideal water level situation. Right now, we are working on moving some 6-meterwide units to the U.S. We already know the road permits in Germany will take too long. Some of these cargo movements will take place at the end of July/beginning of August, a critical phase on the Rhine in Germany. We have explained the situation to our client; if we wait for a road permit it will definitely be too late. Using the Rhine gives a 70-80 percent chance of making it before the water is too low.”

The solution agreed was to bring the cargo to Linz on the Danube to head out in the last few days of July to get through the tricky parts of the Rhine early in August.

Blazing a Trail

In the UK, the transport of a 57 x 6-meter cold box and 10 vast storage tanks to a new Air Products site at Alloa, Scotland, in May, effectively led to the reopening of a navigation channel on the River Forth.

Kestrel Liner Agencies was approached by Air Products for proposals to move a complete factory to the construction site. After ruling out road access due to buildings already at the site, Kestrel approached the statutory authority, Forth Ports, about river transport – the company was told that no commercial ship had ventured this far up the tidal river for more than four decades.

Shipping company Robert Wynn and Sons was contracted to provide the 80 x 16.5 meter heavy-lift roll-on, roll-off barge Terra Marique for the

task and before any movement could be confirmed, Kestrel was required to carry out a bathymetric survey to identify a channel from the Port of Rosyth to the site. A re-survey would also be required three months before the actual moves, because the riverbed changes frequently due to tides and currents, and Kestrel was required to set out navigation buoys to mark the channel. Forth Ports could not provide a pilot because none of its pilots were trained upriver.

The cold box was shipped into Rosyth by an AAL heavylift vessel while the tanks arrived on the Nordic Kylie.

Meticulous plans were made around tides, said Des Nott, Kestrel’s head of breakbulk and projects, to ensure enough water for navigation but also that it was not too high, as the loads had to pass under two bridges. Kestrel carried out laser measurements of the bridges at different points of the tide and Forth Ports required an emergency anchorage site to

be identified in case the barge missed the tide on its way out.

The cold box and tanks were taken to the site on the Terra Marique in a series of shipments, loaded on to Mammoet self-propelled modular trailers and rolled off within extremely tight tidal windows.

The survey carried out by Kestrel has been uploaded onto the Admiralty charts. “Where Kestrel has led the way, others can follow – the extensive survey work completed for the Air Products job has opened the river for future opportunities to transport freight,” Nott said.

Inland Moves Encouraged

Wynn has championed the movement of abnormal indivisible loads along at least 16 rivers and waterways in the UK in the last 20 years and others have followed – to an extent – because Wynn proved it could be done, said company secretary Tim West. “Some of the rivers are used for access to inland ports such as Ellesmere Port, Goole, Sharpness,

Sutton Bridge and Truro. The cargoes moved include items for power generation and transmission, large silos, brewery vessels, construction equipment and offshore structures.”

West, however, is frustrated by what he says is a lack of political will and focus from a transport perspective on the opportunities of inland waterways for low-carbon freight movements in the UK. While rail and road come under the Department for Transport, inland waterways are now controlled by the Canals and River Trust, or CRT, which falls under the remit of Defra (Department for Environment, Food & Rural Affairs). “Government strategy documents talk about a national freight network but we don’t have all the transport modes under the same roof.”

There is also the issue of suitable loading/offloading points on waterways, he added. The Port of London Authority has a safeguarding policy to prevent residential development of identified wharves on the Thames and has forced some

Drewes moved three LNG storage tanks, each measuring 50.65 x 5.80 x 6.00 meters and weighing 246.70 metric tons, from the Czech Republic to Cologne in Germany. Credit Drewes

“IN AN IDEAL FUTURE, MORE INLAND

WATERWAYS MIGHT BE OPENED UP FOR NAVIGATION AND THOSE WHICH ARE ALREADY OPEN MIGHT BE IMPROVED UPON” - MUFREDERIK GEIRNAERT, GLOBAL GROUP PROJECT MANAGER, DREWES LOGISTICS

facilities back into operation via compulsory purchase. “There are other similar ideas outside London – for example, Leeds planners have safeguarded some facilities,” West said. “But it is a constant battle. You can safeguard them, but you can’t necessarily force them to operate as a wharf.”

Modularization Drives Waterway Use

Drewes’ Geirnaert said inland waterway transport is becoming more important in the drive for decarbonization, but this is a “rather indirect effect.”

“We find that more and more of our customers are investigating and executing modularized construction projects where larger modules are produced in a location where that can be done very efficiently and then those larger modules are shipped to site, often requiring inland waterway transport. This method saves on carbon emissions as the production can be done in a controlled, efficient and cleaner location and, when compared with the more traditional ‘stick built’ method, it also requires a lot fewer transports to move structural steel and other parts to the jobsite.”

He also highlighted the importance of using historic water level figures for calculations to schedule the transport of units on the Elbe.

It has become ever more important to make customers aware of seasonal restrictions and to assist them in monitoring and trying to predict water levels that could be too low or too high to make the transport possible, Geirnaert added. “Customers will have to take these factors into consideration and where possible construction schedules should be planned to account for this. I am, however, always optimistic that these and other problems outlined above can be worked around.”

For all stakeholders using this mode of transport – shippers, freight forwarders, terminal operators, barge

operators and also authorities and waterway managers, this requires continued and reinforced effort. “In an ideal future, more inland waterways might be opened up for navigation and those which are already open might be improved upon. Sluices and water level management are important, not only for navigation but also for irrigation and water supply,” he said.

Air draft clearance can be an issue at times and Geirnaert encouraged authorities to investigate that and solve existing bottlenecks to help the

movement of project cargo. “I also hope that at some point more consultation can happen in each region or area and that where needed more critical moves may be given precedence.” For example, he noted, it is fairly easy to split 80 containers over two or three barges when water levels drop or rise, but the same cannot usually be done for big modules and other cargo items.

Felicity Landon is an award-winning freelance journalist specializing in the ports, shipping, transport and logistics sectors.

Wynn has championed the movement of abnormal indivisible loads on along at least 16 rivers and waterways in the UK.

Credit: Robert Wynn and Sons

A loading operation at the Port of Rozbelesy in Decin, Czech Republic.

Credit: deugro

CRACKING LEBANON’S OIL, GAS POTENTIAL

Offshore Prospects Gain Momentum with Maritime Boundary Deal

Lebanon’s maritime boundary dispute with Israel has long hindered its ability to tap into the vast potential of its offshore resources. However, following the signing of a groundbreaking maritime boundary deal last year, a new era of investment and exploration is dawning for the Lebanese energy sector. The resolution of this decades-long dispute paves the way for cooperation and sets the stage for Lebanon to harness its offshore prospects and fuel economic growth.

By Liesl Venter

The country’s long-awaited second licensing round, delayed for years, is now slated to take place later this year. Moreover, the border deal has unlocked opportunities for exploration in the coveted Qana prospect in Block 9.

Marc Ayoub, an energy researcher, a non-resident fellow at the Tahrir Institute for Middle East Policy, and an associate fellow at the AUB Issam Fares Institute, has high hopes for the unfolding developments in Lebanon.

“We have been monitoring the situation in Lebanon for several years. Substantial progress has been

Region: Middle East

Problem: Successive disappointments in Lebanon’s oil & gas exploration have deterred investors

Solution: A new boundary agreement could be the catalyst for new drilling, spearheaded by TotalEnergies

made quickly since the boundary agreement was signed at the end of last year. The first drilling will start as soon as September this year.”

Looking at a timeline of the events, it is indicative of the belief in the Lebanese oil and gas potential. In October last year, Israel and Lebanon agreed on the maritime boundary. Within weeks of this, TotalEnergies and its partner ENI signed a framework agreement with Israel to implement the agreement on the maritime border.

Not even two months later, TotalEnergies announced that Russia was no longer part of the consortium and was welcoming QatarEnergy into the fold. In the agreement, TotalEnergies and Eni each retain a 35 percent interest in the blocks, with QatarEnergy holding the remaining 30 percent.

According to Patrick Pouyanné, chairman and CEO of TotalEnergies, the delineation of Lebanon’s maritime border with Israel created a new momentum for exploring Lebanon’s hydrocarbon potential, justifying the mobilization of teams on the ground.

Fast Timeline Justified

By the end of March, the team mobilized in Beirut had reached more than 20 employees. The call for tenders to secure the drilling rig had been launched, and pre-orders were already placed with suppliers for equipment required for the well. In parallel, offshore resources were also being mobilized to contribute to the environmental

studies, which, at the time of going to print, were in the final stages.

Both TotalEnergies and the Lebanese government are adamant that drilling will start by September and that it will be known if there is a discovery or not before the end of the year.

“The fact that we are going to see the first drill vessel in Lebanon as soon as September, not even a year after this agreement was signed, shows that the hold-up has been due to the ongoing political issue and not because of the lack of technical ability or interest in Lebanon’s oil and gas sector,” Ayoub said.

The license for Block 4 had already been received as far back as 2018, and with a permit now in place for Block 9, oil and gas exploration is expected to pick up in the country.

“The border problem has been causing delays in the oil and gas sector development for years. In 2020 TotalEnergies drilled in Block 4 but only found traces of gas. Since then, all activities have come to a complete standstill. Yes, Covid-19 did play a role in this, but the politics around the maritime border issue was by far the driving force in most role-players taking a step back and not willing to commit to exploration in Lebanon,” Ayoub said.

Diana El Kaissy, an energy governance specialist and advisory board member at the Lebanese Oil and Gas Initiative (LOGI), as well as a member of the international EITI Board

representing several civil society organizations, agreed with Ayoub saying the country has finally moved out of the deadlock it found itself in.

“This stalemate prevented companies from working in the oil and gas sector. The willingness of companies like TotalEnergies and ENI to immediately commit to drilling Block 9 mere weeks after the maritime boundary agreement was signed is a testament that any form of investment or action in the oil and gas sector would only happen around a border resolution.”

Speaking to Breakbulk, El Kaissy said Lebanon was in a perfect storm shortly after the first exploration in 2018. “Covid-19 was happening on one side, and on the other was the decreasing value of oil barrels. Also, TotalEnergies had come up empty-handed in 2018. Investors’ appetite was low, and for US$150 million to drill just one well and come up dry, no-one would touch the Lebanese energy sector.”

And the risk factor only increased exponentially with political unrest in the country and an ongoing dispute over maritime boundaries.

Managing Expectations

While excited about the outlook and positive developments in the past few months, El Kaissy warned that it is still early days. “The likelihood of discovering anything significant from drilling a single well in Block 9 is only 20 percent. It is important to manage our expectations in this regard. While there is a potential for finding untapped resources and exploring deep-sea territories, the minimal insights provided by seismic surveys should be considered. We must be aware of these limitations and consider the broader perspective when making decisions,” she said.

Ayoub agreed, saying that Lebanon was still far from oil and gas riches. The country, he said, remains wracked by political turmoil, and financial chaos prevails. Like El Kaissy, he warned

Patrick Pouyanné

Marc Ayoub

Potential areas of exploration

Potential area of operations

border claim

claim

that there are still no proven gas reserves and even if TotalEnergies hits the jackpot in September and makes a significant finding, it would take a minimum of five years, if not more, before the country could successfully pump anything.

“What we must take from the developments thus far is that there is potential and opportunity. The move by

TotalEnergies could be the catalyst to convince other companies to consider Lebanon for oil and gas exploration.” He added that while oil and gas activities started in 2013 and there is some indication that the country has oil and gas reserves, there are significant hurdles to overcome still.

Logistics companies Breakbulk spoke with were hesitant to

comment on the developments saying that investment into the necessary infrastructure to service a burgeoning oil and gas sector was yet to materialize.

“Contracts have been signed, and logistics companies are involved in the TotalEnergies exploration drilling taking place later this year,” Ayoub said. But for the most part, it is still a wait-and-see game. “We must not forget that Lebanon has been here before. In 2013, there was talk about the big oil and gas finds, and the impact and change it would bring to the country when it became this major oil and gas producer. There was disappointment when drilling happened, and the wells turned out to be dry. There is a lesson to be taken from this,” he said. “Yes, the current developments are good and positive, but we need to be critically aware of what is real and what is not. Lebanon must be wary of selling its gas before it has evidence of it being there. Expectations around the country’s oil and gas development must be managed very carefully.”

At the same time, he said, the recovery of Lebanon could not be built on the possibility of a burgeoning oil and gas sector.

“We are far from being an oil and gas producing country. We do not know the quantities of oil and gas in Lebanon, the value, or the potential markets. We also cannot wait for a developed oil and gas sector to recover the country’s macroeconomics. It must happen irrespective of the oil and gas developments.”

Challenges Prevail

Meanwhile, implementing a legal framework poses significant challenges for the Lebanese government, El Kaissy said. “The rule of law, which exists on paper, must be transformed into a functional and robust institutional setup. Although we have devised a promising model, transparency laws, and a governance

structure, the lack of a functional industry and political deadlocks within the council of ministers have proven fatal obstacles.”

She explains how Lebanon’s first licensing round in 2013 ultimately failed due to the non-issuance of several necessary decrees. This saw a loss of investor confidence, as only three out of the initial 50 interested parties remained, with bids received for only two blocks.

“To overcome these challenges, addressing political deadlocks and ensuring effective decision-making within the council of ministers is imperative. Additionally, we must focus on creating a conducive environment for a functional industry to thrive, thus attracting more investors and fostering economic growth,” she said.

This is a long-term commitment and needs to move beyond the short-term euphoria currently being experienced. “On the other hand, we have time on our hands,” she said. “Even if we discover a well today, it will still require an extensive period to determine its commercial viability. Moreover, reaching agreements with neighboring

countries, such as Israel, regarding shared waters will also take significant time, possibly several years. These discussions and developments will be essential in establishing the best approach for developing the wells and maximizing potential.”

This will also give Lebanon muchneeded time to focus on developing the necessary logistics infrastructure. “This will set Lebanon on the right track; ports, roads, pipelines – all of it will collectively address some of the challenges in the country. It will bring major project opportunities and, in turn, employment. We need to recognize that our current weakness is not a permanent state; instead, it is an opportunity for growth and improvement.”

Winning Hearts and Minds

Ayoub and El Kaissy agreed that Lebanon must work hard to entice investors and convince them of political stability. That will take more than just the signing of an agreement or two.

“Functional regulatory authorities, a solid government that is transparent, a

clear commitment to political stability – this and more will be needed before we are even going to get close to reaping any kind of reward out of the oil and gas sector,” El Kaissy said.

At the same time, there has to be a clear drive towards sustainability, considering the move away from oil and gas.

“As academics and analysts, we are calling on the Lebanese government to be careful and not place all its eggs in one basket but also to drive diversification and a strong move towards renewable energy,” Ayoub said.

He believes politics will continue to be the biggest obstacle in Lebanon. “There is talk about a pipeline coming from Cyprus and some discussion with Israel. How will these discussions impact if we find gas later this year? Yes, it will lead to infrastructure development and more project work in the country, but will we use the energy for internal use first and export what is left over? And to where would we export it? These questions and several more really depend on what TotalEnergies discovers later this year.”

With a second licensing round expected to open up the eight remaining blocks in the country, cautionary optimism prevails around the Lebanese oil and gas sector. However, a June deadline for its release was not met.

“Lebanon is not an easy country to operate in,” said a logistics operator who preferred to remain anonymous. “There is potential. We have seen some international companies get tenders to move the project equipment via Beirut port to Block 9 later this year for drilling. There have been tenders to service the boats and move cargo to and from the exploration drill. But it is all still early days.

“At this stage, it is anyone’s guess whether Lebanon will strike it big.”

Liesl Venter is a transportation journalist based in South Africa.

“THERE IS POTENTIAL. WE HAVE SEEN SOME INTERNATIONAL COMPANIES GET TENDERS TO MOVE PROJECT EQUIPMENT. BUT IT IS STILL EARLY DAYS. ”

Credit: Shutterstock

By Liesl Venter

SOUTH AFRICA’S ENERGY CRISIS

Mining Sector Struggles, Renewable Energy Provides Glimmers of Hope

Embracing Simon & Garfunkel’s haunting lyrics of “Hello darkness, my old friend,” South Africa is trapped in a disheartening reality. These words resonate deeply as the nation grapples with its most severe energy crisis. Each passing day brings forth a relentless series of blackouts, known as load shedding, plunging the country into an uncharted realm of uncertainty. The mining sector, a vital pillar of South Africa’s economy, bears witness to the profound impact of this ongoing struggle.

Statistics compiled by independent energy analyst Pieter Jordaan showed that during the first five months of 2023, load-shedding had been in effect for the entire year with only one day of full suspension and only a handful of days with partial rest.

According to Jordaan’s data, the impact of load shedding on South Africa is alarmingly severe. On average, the country endured 23 hours of blackouts daily, with approximately 16.7 hours spent in a state of anticipation known as “rotation time.”

Astonishingly, this means that South Africans have collectively spent over 758 hours without electricity in 2023

Region: Africa

Problem: Planned blackouts to stop the national grid from collapsing are threatening South Africa’s mining sector

Solution: Mines are turning to development of renewable energy projects to keep the lights on

alone, equivalent to a whole month of darkness. These distressing statistics, covering data until April, account for a quarter of the year thus far. To put this into perspective, Jordaan highlighted that it took nearly an entire year for the country to reach a similar level of blackouts in the past.

To make matters worse, South Africans have had it drummed and beaten into them that load shedding will likely worsen in the winter months ahead. The worst, they are told, is yet to come.

Shedding Load

The mining industry in South Africa finds itself navigating uncharted territory due to the escalating severity of load shedding, said Henk

Langenhoven, chief economist for the Minerals Council South Africa. Currently averaging at stage 6, these power outages disrupt mining and mineral processing operations, marking a critical point of concern.

Stage 8 load shedding is the highest ever experienced in South Africa. It requires the country’s power utility, Eskom, to shed about 8,000 MW. Practically it means power must be shed up to six times a day, or having power for only 50 percent of the time with the power off for 12 hours a day, depending on the schedule. Stage 6 and 7 requires 5,000 MW to 6,000 MW of power be shed in order to prevent the national grid from collapsing. Stage 6 load shedding means power cuts are scheduled over a 4-day window to take place twice a day at 4 hours a time.

Langenhoven explained that load curtailment agreements are in place between the mining industry and Eskom and are activated during stage 6 load shedding to maintain grid balance. Under these agreements, the mining industry curtails its electricity consumption by 20 percent of the contracted supply for 10 hours, from 1400 hrs to 0000 hrs.

With the mining and smelting sector accounting for about 10,000MW or 30 percent of Eskom’s supply, this curtailment equates to surrendering 2,000 MW of electricity. However, Langenhoven warned that should Eskom escalate to stage 8 load shedding more regularly - a fastapproaching reality - the mining industry would face curtailment of 2,666 MW over the same timeframe. Such a scenario would result in further production losses, with some operations forced to halt to comply with the required load reduction. “If power constraints worsen, essential loads would be implemented, limiting the mining industry to only 20 percent of its contracted electricity supply. In this scenario, only critical services like fans and pumping would operate, leading to a complete halt in mining, mineral processing, smelting, and refining until normal electricity supply is restored,” he told Breakbulk

Langenhoven emphasized a direct correlation between Eskom’s energy availability factor (EAF) and mining production, with a 7 percent decline observed in mining production in 2022 compared with the previous year, mirroring the decrease in Eskom’s EAF. Considering this, it is estimated that the mining industry suffered a loss of approximately R100 billion (US$5.36 billion) in production in 2022. In contrast, the South African Reserve Bank forecasts that load shedding and curtailment cost the country nearly one percentage point of GDP growth, with an expected cost of 2 percentage points in 2023. These figures underscore the profound economic impact and urgency to address the energy crisis plaguing South Africa’s mining sector.

Rethinking Energy Strategies

As South Africa plunges into unprecedented darkness, mines nationwide must reassess their energy strategies. With the duration

of power outages surpassing previous records, what was once a long-term consideration has now become an urgent priority. Mines are compelled to swiftly reevaluate their energy plans, adapting to the immediate challenges of the energy crisis.

Mining companies are proactively pursuing alternative energy sources to mitigate the supply shortfalls caused by Eskom and maintain uninterrupted operations. With a growing global focus on green and sustainable energy and concerns about climate change, the mining industry is actively aligning itself to achieve net-zero greenhouse gas emissions by 2050. Additionally, the industry faces increased scrutiny and compliance with Economic, Environmental, Social, and Governance (EESG) standards.

Mining companies are implementing, planning, and exploring various solutions such as solar, wind, hydrogen, and battery technologies to address these imperatives to fulfil their electricity requirements, Langenhoven said.

“This strategic shift toward renewable energy sources reflects the industry’s commitment to reducing its environmental impact while ensuring operational continuity. By embracing these innovative energy solutions, mining companies aim to supplement the current energy shortfalls and contribute to a sustainable future in line with global sustainability objectives,” he said.

According to Langenhoven, the mining industry accounts for an impressive 7,500 MW of the extensive pipeline of public sector energy projects, which collectively exceed 9 GW in capacity and are valued at over R150 billion (US$8.04 billion). “These energy projects represent a significant investment in the sector, underscoring the commitment to meeting the growing energy demands of mining operations. With such substantial potential, these projects can transform the energy landscape, ensuring a

reliable and sustainable power supply for the mining industry while fostering economic growth and development in the public sector. The substantial scale and value of these projects reflect the crucial role that mining plays in driving energy infrastructure advancements in the region.”

It also actively allows the mining sector to reduce its exposure to Eskom’s fossil fuel-based electricity as critical markets like Europe move towards carbon border taxes. South Africa is also implementing carbon taxes, which will add to the general cost of mining.

“Eskom’s prices for industrial clients have increased more than sixfold since 2008, making electricity the second most expensive input cost for mines after labor. The mining industry supports the net zero greenhouse gas emission target by 2050. However, Eskom will remain a source of baseload electricity because the industry operates around the clock and the existing sources of renewable energy and technologies cannot provide steady, cost-competitive sources of energy 24 hours a day,” Langenhoven said.

Need for Project Cargo

Andrew Wallace, managing director of Paccon Logistics, highlighted the escalating demand for project cargo in the renewable energy sector, reflecting the urgency and gravity of South Africa’s energy crisis. “The severity of the situation cannot be overstated, pushing businesses across various industries, not just mining, to seek sustainable solutions and invest significantly in renewable energy projects. The critical need to maintain operations and ensure a continuous power supply has prompted large-scale investments in renewable energy throughout South Africa.”

Given the substantial electricity requirements of the mining industry, this industry is particularly compelled to find alternative

solutions to sustain their production capabilities, Wallace said.

This, in turn, has presented favorable opportunities for the breakbulk and project cargo sector. As the demand for renewable energy plants grows, the industry has witnessed a steady increase in volumes as businesses actively pursue the installation of these plants as a viable solution to combat the energy crisis.

Chris Gerber, head of commercial – Africa projects, mining and energy at C.Steinweg Bridge, agreed, saying the lack of electricity in the country has created an opportunity, particularly for the logistics industry.

“The movement of solar panels, inverters, lithium batteries, wind turbines, and associated cargo has witnessed a substantial boom. The mining industry is making significant investments in renewable energy solutions, necessitating the importation and transportation of project cargo to remote mining locations.”

The logistics sector plays a crucial

role in facilitating the delivery of these vital components, ensuring that mining operations in remote areas can access the renewable energy infrastructure they require.

Gerber emphasized that the benefits of the energy transition extend beyond the transportation of project cargo for renewable energy plants. The shift towards renewable energy has resulted in a significant surge in demand for battery minerals, leading to the expansion of mining operations in sectors such as copper, lithium, and platinum.

Importantly, this positive development has also had a favorable impact on the logistics landscape. Gerber highlighted that there has been a marked improvement in the two-way flow of cargo between various mines in South Africa. This bi-directional flow proves to be more cost-effective, as logistics providers are not solely retrieving minerals from the mines but also delivering the necessary equipment for renewable energy plants to ensure their continuous operation.

The symbiotic relationship between the mining industry’s demand for renewable energy infrastructure and cargo transportation signifies a mutually beneficial arrangement, he said. As the mining sector embraces renewable energy solutions, it enhances its environmental sustainability. It drives economic growth and logistics efficiencies, leading to an overall positive impact on industry and the nation.

Opportunity Amid a Growing Crisis

While the decision by the Seriti coal mine to build a 155 MW wind farm in the Mpumalanga province is a good indication of how far mines are willing to go to find new sources of power, there are a variety of other developments across South Africa that bode well for the project cargo sector, Gerber said.

“It is not only an increase in the movement of wind turbines and the like. We have witnessed a significant volume increase for secondary renewable energy sources, such as solar farms. These solar farms are a

Spain-based Kaleido Ideas & Logistics ships wind power components for a project in South Africa. Credit: Kaleido Ideas & Logistics

substitute power source when the main grid fails. However, considering the substantial energy demands of mining operations, relying solely on solar power may not be feasible with current technology. Hence, alternative solutions are being explored.”

He said the company continues to collaborate with several engineering, procurement, and construction companies and original equipment manufacturers, conducting feasibility studies for various other ways of generating electricity for mines that will require efficient and reliable logistics solutions.

One such study involves using iron ore smelters in a renewable manner. By recovering and utilizing the heat to drive turbines, generating electricity that can be fed back into the grid becomes possible. Companies like Anglo-American are already implementing this approach,

and others are considering similar initiatives. This innovative approach allows for simultaneous heat recovery, waste reduction, and renewable energy generation. It presents a promising avenue to supplement the energy requirements of mining operations and contribute clean electricity to the overall power supply.

The biggest challenge to realizing renewable energy solutions, however, remains the time it takes to secure regulatory approvals and the timeconsuming and costly agreements with Eskom to tie into the national grid.

“There is a turning point in mining metrics, especially from an upper turning point in commodity prices, which will influence export performance. Apart from uncertainty about world commodity prices, domestic structural constraints like energy, transport and water must be urgently addressed,” Langenhoven said.

“Perceptions about the mining environment in South Africa have declined for some time. The Fraser Institute Survey ranked the country in the bottom ten global mining jurisdictions for two consecutive years. Although the minerals potential is deemed to have improved (due to better commodity prices over the last 18 months and the good mix of minerals), perceptions about policy have deteriorated further.” South Africans, Wallace said, prove their resilience time and time again. “This is not the first crisis the country has faced and will not be the last. It’s a well-known fact that when the going gets tough, South Africans make a plan. It is a relevant observation: when crisis erupts, we put our heads down, make a plan, get stuck in and make it work.”

Liesl Venter is a transportation journalist based in South Africa.

Seriti Resources’ executives announce the construction of South Africa’s largest wind farm in Mpumalanga, with power supply coming online by 2025.

Credit: Sereti Resources

HAUL AROUND THE WORLD

Lack of Standardization, Staff Shortages Complicate Project Trucking

By John Bensalhia

Traveling around Europe, on the face of it, the heavy transport market has much going for it and a rosy future.

LASO is a company that works all around Europe, with offices, personnel and equipment in Portugal, Spain, Italy, France, Slovenia, Germany, The Netherlands, UK, Morocco and Mozambique. “By analyzing our day-to-day business, we have a sense of feeling for the market,” explained Francisco Ruiz Miranda, director and managing director at LASO. “Today, there is a very high demand for renewables, construction equipment and everything related to the energy market, but also with

the post-pandemic activation, the outlook looks promising.”

Ton Klijn, director of ESTA, added that overall, the heavy transport market is in pretty good shape, with many

Region: Europe

Problem: Permitting problems, dearth of truckers, and crumbling infrastructure all threaten the growth of the European project cargo haulage industry

Solution: Operators and organizations are working with regulators to ensure the industry remains attractive and progressive

companies very busy. “They are driven by renewable energy, infrastructure investment and industrial markets –and given an extra uplift by the growing moves towards off-site construction.”

Meanwhile, Riza Gögüs, business development manager of projects at Alexander Global Logistics, spotlighted two trends: “There is a very high level of competition of freight forwarders and haulage companies,” he said, noting that there is a paradox with the second trend. “There is a high demand for employees with professional competence and know-how.”

Scratch the surface, however, and it’s clear that there are concerns about the sector. “While there is

Credit: Eastship

demand for employees, the problem is that there are hardly any available on the market,” Gögüs said.

Real world issues are also obstacles to the sector reaching its full potential: “Unfortunately, we also see uncertainty and delays in the market, as a result of the conflict in Ukraine,” Ruiz Miranda said.

Klijn added that there are specific problems that the authorities in Brussels and the national government urgently need to address to avoid longterm harm to the European industry.

“Heavy transport as an industry is small compared to many, but our members are a crucial part of global supply chains. For example, and put simply, the energy transition will not happen if we are unable to transport and erect wind turbines.

“Currently, the problems are at their worst in Germany, but the situation is very similar in a great many European countries - namely weak and poorly maintained infrastructure and the absurd difficulty and often very long delays in obtaining permits for abnormal road transport.”

National Problems Need Addressing

There are also serious issues in individual markets. Klijn highlighted problems in the Netherlands: “The government’s action to radically reduce the country’s high level of nitrogen emissions has stalled many construction and transportation projects, a position

made worse by shortage of site workers such as crane operators.”

In Italy, Klijn said that many local authorities are reluctant to award permits for heavy transport: “This is due to fears about the strength of roads and bridges following the Genoa bridge tragedy in 2018.” French transport companies, meanwhile, complain that the routes for heavy transport identified by local administrations often do not connect to each other.

Then in the UK, the Heavy Transport Association - an ESTA member - is one of a number of organizations that have been complaining about how the regulations are interpreted and enforced differently by local police forces, creating delays and uncertainty.

“In addition, there are the panoply of rules and regulations governing marking and lighting, escort vehicles, the language requirements of drivers and more. All of the above puts up costs and means that the industry is less efficient and less safe,” Klijn said.

With respect to European regulations, Gögüs noted that there are three main areas of attention: “Obtaining the necessary transport permit is the biggest problem in Europe. The run time is approximately six weeks for heavy and special cargo.”

“Secondly, the staff must be increased by new employees to reduce the processing time. And finally, the project business must be considered in the planning of infrastructure.”

Driven To Distraction

The shortage of professional drivers in the project cargo sector has become a pressing and complex issue across Europe. Recent data from the International Road Transport Union, or IRU, indicated a critical shortage of more than 2.6 million drivers worldwide, with a 42 percent increase in driver shortages specifically in Europe from 2020 to 2021. This shortage has been particularly noticeable in countries like Romania, Poland, Germany, and the UK, where significant gaps in the driver workforce have emerged.

“The magnitude of the problem extends beyond the immediate challenges faced by transportation companies,” said Ioana Ionita, marketing manager for Eastship.

“According to the IRU’s report, the scarcity of project cargo drivers has far-reaching consequences, including inflation risks, social mobility issues, and disruptions in the supply chain.

“Furthermore, the report shed light on the under-representation of women in the industry, with less than 3 percent of truck drivers being women across all regions. Similarly, attracting younger drivers remains a challenge, with drivers under 25 accounting for only a small percentage of the workforce.”

Ionita observed that the IRU report emphasizes a number of other problems. The first is ageing and outdated infrastructure which presents a significant challenge for project cargo drivers. “It results in longer transport routes for special cargoes,

Riza Gögüs

Ioana Ionita Ton Klijn

which in turn leads to extended trips for drivers. This not only affects their work-life balance but also increases physical strain and fatigue. Investing in infrastructure upgrades is crucial to improve working conditions and optimize operations. By advocating for modernizing roads, bridges, and ports, Eastship aims to reduce travel times, minimize physical strain on drivers, and enhance overall efficiency.”

The availability of suitable truck parking areas remains limited, posing a considerable challenge for project cargo drivers. Due to legal requirements and the necessity for rest breaks, drivers spend a significant portion of their time stationary. “However, the scarcity of parking spaces, especially those suitable for project cargo, compounds the problem,” Ionita explained. “Inadequate parking areas hinder drivers’ ability to comply with regulations, jeopardize their well-being, and cause delays in delivery. Addressing this scarcity is crucial to ensure drivers have access to safe and suitable parking, allowing them to rest and recharge effectively.”

One of the key challenges in attracting and retaining skilled project cargo drivers is unfair compensation. Ionita said that offering competitive remuneration is important to mitigate

the driver shortage and maintain a satisfied and committed workforce.

While the shortage of experienced project cargo drivers necessitates investment in the development of inexperienced drivers, costly training programs pose a significant barrier. “Eastship recognizes the need to bridge this skills gap by providing extensive training programs and constant support to inexperienced drivers,” Ionita said. “By offering accessible and comprehensive training, Eastship enables these drivers to acquire the necessary expertise and confidence for project cargo transportation. This commitment to nurturing talent plays a pivotal role in combating the driver shortage and ensuring a skilled and competent workforce for the future.”

Road To Nowhere?

Another issue in the project cargo industry is outdated equipment, which poses challenges to driver productivity and job satisfaction, leading to operational inefficiencies and the compromise of driver comfort. To address this issue, Eastship is investing in modern and well-maintained vehicles equipped with the latest technologies.

“Equipping drivers with advanced tools and technologies allows them to

perform their duties effectively and enhances their overall job satisfaction.”

Maintaining favorable working conditions and ensuring driver safety is also important. Drivers often face long hours on the road, demanding schedules, and physical strain. By providing a supportive work environment and also prioritizing driver safety and work-life balance, Ionita said that Eastship aims to create an environment where drivers feel valued and motivated.

“The shortage of project cargo drivers in Europe presents significant challenges for companies like Eastship, despite their efforts to offer attractive salaries, respect break times, and invest in modern equipment,” Ionita said, urging a need for a collective approach to address the underlying issues and ensure the availability of a skilled and motivated driver workforce.

“By fostering collaboration within the industry, sharing best practices, and working together to improve the accessibility and attractiveness of the profession, companies like Eastship can contribute to a sustainable and prosperous future for the project cargo sector in Europe.”

ESTA’s Klijn noted that the shortage of drivers reflects the ongoing fact that the heavy transport industry is not a high-enough priority for political leaders. For him, there are two crucial and connected changes needed. “The first is to ensure a radical improvement in the working conditions of driverswith safe parking and decent facilities.”

“The second is for the industry to recruit from a much broader section of the population - more young people and more women. That means we are competing with other industries, and we have to be able to offer attractive wages and good quality and secure rest areas.”

While heavy road transport companies stand ready to help and support their clients with their needs, the main issue that LASO is experiencing is not new and, according to Ruiz Miranda, is getting worse.

LASO highlights the “forced relationship” with local authorities and entities that grant permits. Credit: LASO

He explained: “It is with regards to the forced relationship we must have with local authorities and entities which are the ones that should grant us the permits. This, together with the problems in infrastructure needing urgent and unexpected civil works, is jeopardizing activity and causes delays on deliveries to important projects, with consequences for the society at the end.”

At the same time, control is also an issue, with LASO witnessing more permit-free trucks on the route. “This is a problem for companies like ours, that are serious, have a brand and reputation to keep, and do things properly.”

Miranda also noted the lack of professionals that want to join the market. “This is not a sexy career at all, it demands sacrifice and knowledge,” he said, adding that youngsters do not want to try it out.

Gögüs noted that while older, experienced drivers are preferred, these will drop out more and more within the coming years and even months. “Younger generations should have more responsibilities and be given more opportunities to develop and grow on their own in the individual projects,” he said.

Cautious Optimism

European regulations can also pose problems. Klijn argued that one issue is the huge variation and the way in which they are interpreted. The solution is straightforward - in theory: “Agree common standards and regulations, and enforce them,” he said. “For example, how hard can it be for us to agree common standards on marking and lighting? Very, apparently. As ESTA, we have been trying to achieve this for years, but everywhere we are hampered by local administrations that do not want to change.

“More important still, however, is the need to develop a common, agreed system of electronic permitting for heavy transport and abnormal loads.”

Klijn added that if progress is to

be made, proactive support from the top of the European Commission and national governments is required.

Miranda agreed that unity is much needed: “We need to work together, not in the way we are working today, where we have, most of the time, no access to them and no twoway communication channel.

“We all need to realize that we are all here to serve society: the authorities by regulating and facilitating our activity, and us by fulfilling the requirements. But, again, this MUST be a two-way channel, and this applies to the entire European region.”

ESTA is cautiously optimistic about the future of Europe’s ability to properly service project cargo moves. “The poor state of much of Europe’s infrastructure is putting increasing pressure on our national politicians,” Klijn said. “In addition, there are signs that officials in Brussels are waking up to the importance of the heavy transport sector and that a coordinated and strategic approach will be essential - not for the benefit of our members alone, but for the development

of a successful and sustainable European industry as a whole.”

All of Europe needs to “move towards a series of sensible and long overdue policies to support heavy transport that will have a great and positive economic impact,” he added. “The revision of the Directive 96/53/EC on weights and dimensions for road transport, currently in progress in Brussels, offers a golden chance for Europe-wide reform. We just hope that this opportunity is taken, as it should be. We have our fingers crossed.”

Despite the myriad problems, projects will not stop and project cargo from European producers will continue to be sold and exported, according to Ruiz Miranda. “But, if we cannot perform our services on time, following the regulations and supported by the authorities, our companies will lose competitivity and we then give an advantage to other regions to take the lead. Nobody realizes the importance of all the logistic chain of actors until there is a delay that causes big budget deviations.”

John Bensalhia is a freelance writer and author with 25 years’ experience of writing for a wide range of publications and websites.

Permitting, staffing and weak infrastructure are all concerns for Europe’s heavy haulage industry. Credit: Alexander Global Logistics

By Malcolm Ramsay

Welcome Recovery From Pandemic Slump

EYES ON CAR TRADE REVIVAL

In the turbulent world of breakbulk shipping, few sectors have witnessed more dramatic shifts and challenges than the automotive industry over the past few years. Global supply chain disruptions, a stark slowdown in new car registrations, and a debilitating microchip crisis have all battered the sector even as the industry grapples with the transition from internal combustion engine, or ICE, vehicles to electric vehicles (EVs).

Since the start of 2023, however, the tide has been turning and according to data from the European Automobile Manufacturers Association, passenger car registrations in the EU market saw a significant increase, marking a 17.2 percent growth in April 2023 from the previous year. While this is positive news for the sector, deep

Region: Europe

Problem: The recovery in vehicle trade lacks specialist logistics support

Solution: Supply chains need to be rebuilt after being decimated in the pandemic

issues remain and many operators have been forced to reevaluate their strategies, even as new uncertainties appear on the horizon.

As Ann De Smet of Port of Antwerp-Bruges aptly describes: “The automotive industry had been suffering from a variety of disruptions: consumers doubting to buy an EV or still an ICE car, the pandemic, the shortage of semi-conductors, so it was in urgent need of a boost… It

was to be expected that if production increased again, the gap between seller and buyer would fill up, leading to an increase in sales. The question remains, what the situation will be after the gap has been filled. Will the demand remain high, stabilize or drop?”

Ann De Smet

Top: Grimaldi’s Grande Mirafiori entering Piraeus. Credit: Grimaldi

Rising From the Lows

The rapid onset of the pandemic not only shut down transport networks but caused many long-standing supply chains to break down. A marked slowdown in new car registrations and widespread supply chain issues significantly disrupted global trade.

Paul Kyprianou, external relations manager at Grimaldi Group, added: “The lack of microchips and spare parts triggered a domino effect, exacerbating the lack of visibility and the ability to plan properly. Events in recent years exposed weaknesses in supply chains, and outbound logistics is an integral part of this phenomenon... Logistics operators have paid a huge bill in terms of poor utilization of their assets, often finding themselves unable to carry out the necessary investments, especially in light of the expected market recovery.”

Despite overwhelmingly positive momentum in the first quarter, the European vehicle trade is still down by 22.8 percent compared with the same period in 2019, indicating there’s still much ground to cover.

“The trend has mostly confirmed our expectations,” Kyprianou said, adding that “the marked slowdown in registrations over the past few years has created enormous potential for the market.” Having overcome the latest uncertainties related to phenomena such as inflation and rising interest rates, as well as a more robust supply of environmentally friendly cars and infrastructure, the expectation is for a huge demand for transport capacity, which unfortunately will have to confront an already very unbalanced scenario.

According to UECC Director Sales & Marketing Bjorn Svenningsen, adaptation has been key during this period: “We have had to adjust some of our networks and the dialogue with our partners is more fluid and at the same time we have asked for volume commitments.”

Shifting Gears

While an uptick in demand might be expected to be a positive sign, it currently presents serious challenges in a fragmented sector like automotive logistics. This is particularly true in the wake of the pandemic and the microchip crisis, which had significant impacts on the relationships between original equipment manufacturers, or OEMs, and their logistic service providers, or LSPs.

“Today, shipyards and factories are full of orders for new ships and trucks, but re-establishing the right capacity in the market will take a long time,” Kyprianou said. “This critical climate has necessarily led to a strengthening of partnerships in order to have a common front to challenges affecting the entire automotive industry.”

In the heat of the crisis, LSPs were often left in the lurch with little to no notice that contracted volumes would be significantly reduced or even eliminated, and this lack of warning resulted in precarious cash flow situations, forcing many logistics providers to lay off staff or pivot their focus to more profitable trades.

“Every disruption brings its own supply chain challenge: either unsold volumes on the terminals, closure of plants during the pandemic (so no supply); or shortage of semiconductors (hiccup in production, late deliveries),” De Smet said, highlighting that there can be both winners and losers as “during these disrupting times we saw a drop in volume but at the same time an increase in market share.”

As demand now recovers, OEMs for the most part are grappling with the reality that their previous supply chains have been fundamentally altered. Many are finding that the reliable, efficient systems they relied on prepandemic have been replaced with a disjointed network, a consequence of logistics providers having to adjust their operations in response to the unexpected disruptions.

This breakdown in trust will take time to repair, according to Hervé Moulin, telematics project leader at Renault Group. He said: “The capacity crisis will continue even as volumes return as there are numerous factors that impact the sector now, for instance driver shortages or missing components.” The solution “is not easy, we need to restore confidence in our relations with our LSPs we have to prove ourselves.”

Navigating the Bottlenecks

The seismic shift in the global automotive supply chain landscape isn’t just transforming the operations of manufacturers and end consumers; it also poses substantial challenges for breakbulk carriers. While ports and seaborne capacity have largely recovered, the onward delivery of vehicles has emerged as a significant bottleneck.

While increased demand for breakbulk shipping is generally positive, carriers are hindered by a lack of road capacity. Many operators let staff go during the pandemic and are now struggling to reinstate them, leading to a significant shortage of truck drivers across Europe. Consequently, the race is on to get the vehicles from the port to their final destination in a timely manner, creating an operational pressure cooker.

Port of Antwerp-Bruges’ De Smet explained: “The biggest challenge the EU market as a whole is facing is the shortage in trucking capacity (both driver and equipment) combined with high charter rates for pure car and truck carriers, pulling them away from the short sea market into the more lucrative ex-Asia market. The stockbuilding of new OEMs combined with a shortage in last mile capacity is leading to pressure on compound surface and operational efficiency.”

This pressure is also changing onward supply, with increasing incentives for customers to travel themselves to collect vehicles. “Cars

are produced, they are sold, but they cannot be delivered. This crisis probably makes less noise than the microchip crisis, but unfortunately it has the same ultimate effect,” Grimaldi’s Kyprianou said. “Many manufacturers have had to start rethinking their logistics schemes. The lack of trucks and trains has also led to saturation of land space in compounds and ports. The lack of car carrier ships, deployed on new world trades and no longer easily employed for capillary regional deliveries, is leading to the use of roll-on, roll-off ships on new intra-European routes.”

For example, some manufacturers are now offering incentives for customers to collect directly from port hinterlands, instead of adding the cost for onward delivery. This might lead a German customer to drive to Belgium or the Netherlands to collect a car to save both time and money.

From the perspective of breakbulk carriers like UECC, cautious optimism is the order of the day. In May, the firm launched a new service for automotive and breakbulk cargoes between the Port of Pasajes in Spain and the Port of Cuxhaven in Germany. UECC’s Svenningsen noted: “We are positive, but cautious.

Interest rates are climbing, and we are somewhat concerned that the new order intake for cars will not be so strong in the coming months.”

Renault Group’s Moulin meanwhile emphasized the need for a collaborative, multi-pronged approach. “There is no single action that can be taken to alleviate this crisis or miracle cure but instead we need lots of different solutions, working together,” he says. “The first step is to restore confidence in new investment, but this will not be an easy path as we have already been through a long string of crises and maybe these are not over yet.”

In this complex environment, adaptation and flexibility will be key to navigating the unfolding landscape effectively, as carriers grapple with new realities and bottlenecks.

BEV growth

As European car manufacturers grapple with the complexities of restarting their traditional supply chains, the industry is simultaneously facing a paradigm shift brought on by the surge of battery electric vehicles, or BEVs, into the market.

For many years, BEVs were something of a niche, with Tesla largely

synonymous with the sector. Now, the landscape has dramatically changed, and the mounting competition is most apparent in the surge of imports from China. The Asian superpower has rapidly developed some of the most advanced BEV manufacturing and supply chains in the world, and this year has reaped the benefits as Chinese exports have surged. For Q1, electric car exports from China to Europe more than doubled, compared with the same period in 2022, and these volumes are carried exclusively by sea.

In contrast, incumbent European OEMs typically have distributed manufacturing facilities across the continent, which necessitate intricate logistics for market delivery. For example, BEVs typically weigh more than internal combustion engine (ICE) vehicles, and this can make car carriers too heavy for some European roads.

This rising tide of seaborne imports presents both challenges and opportunities for logistics, however, as De Smet noted: “Most of the terminal capacity in European ports is fully utilized, so Chinese brands are looking for alternative solutions: sending vehicles in racks on container vessels or stuffing vehicles in containers. The thing to watch will be if there is a

Wallenius Wilhelmsen has increased its digital supply chain tools with the purchase of Syngin.

Credit: Wallenius Wilhelmsen

match between the sales targets of the Chinese OEMs and their production/ import stock capacity. If a mismatch would come into play, this could place additional pressure on the supply chains and terminal operations.”

Grimaldi’s Kyprianou added: “The increase in Chinese imports is an important part of the criticality. Car carrier ships used under charter contracts in Europe have mostly been returned and dedicated to trades where demand is higher. Trades that have longer deployment times and therefore result in a reduction in the supply of space on a global scale.”

Finally, while the trend towards electrification is undeniable, there are also concerns about its pace and cost, particularly in Europe. Luca de Meo, ACEA president and CEO of Renault Group, argued: “We want to accelerate electrification, but if we keep piling up regulations, it will cost too much. The Chinese started building their entire electric vehicle value chain a generation ago...They sell 6 million electric cars in China compared to barely a million in Europe. It’s a very good springboard for exporting and since they can’t go to the U.S., the next battle is Europe.”

Investing in the Future

As this landscape continues to evolve, it’s clear that both breakbulk sea carriers and European manufacturers will need to adapt quickly to these shifting currents and make new investments to improve efficiencies. Scandinavian shipping line Wallenius

Wilhelmsen is one firm taking strides in this direction, recently completing the purchase of Syngin Technology from Haute Tour Holdings.

Offering a range of digital supply chain tools, Syngin offers the potential to manage operations more effectively and overcome bottlenecks. Hailing this as a “tremendous asset,” Michael Hynekamp, chief operating officer at Wallenius Wilhelmsen, explained the significance of these digital tools, saying it allows the firm to “take the next step in offering dedicated services for the fleet management industry.”

Grimaldi Group is also making notable advancements. Kyprianou highlighted that the company “has been pursuing major investments for years now,

currently boasting a portfolio of 27 new ships (one of which has already been delivered a few weeks ago).” Seventeen are pure car and truck carriers, and therefore dedicated to automotive trades. “The group continues to carry out important investments in terms of space in its main port terminals as well as maritime and land personnel. We are always trying to guarantee our partners resources and solutions in line with their future projects.”

Looking ahead, UECC’s Svenningsen holds an optimistic view about the rising tide of battery electric vehicle registrations, seeing this trend as a gateway to future business opportunities and noting there is “more to come” in terms of investment from the firm.

As the landscape continues to transform, adaptability and agility remain central, and despite mounting cost pressures it seems clear that strategic investment and technological innovation are the order of the day for players to navigate this evolving terrain.

Based in the UK, Malcolm Ramsay has a background in business analysis and technology writing, with an emphasis on transportation and ports.

Credit: ACEA

Luca de Meo Michael Hynekamp

Port of Antwerp-Bruges is a key hub for the vehicle carrier trade.

Credit: Port of Antwerp-Bruges

3 DAYS OF EXCEPTIONAL NETWORKING AND LEARNING

TUESDAY, 6 JUNE

Peer-to-Peer Learn, Discuss, Network:

• Chartering Workshop

• Executive Summit

WEDNESDAY, 7 JUNE

Networking Activities:

• BUSINESSrun

• Women in Breakbulk Breakfast

• Rotterdam Boat Tour

Main Stage Sessions:

• Examining the MPV Fleet

• Business & Market Outlook

• Nuclear Power Projects in Europe: Infrastructure, Feasibility and Collaboration

• Planning for the Future of Project Logistics

• Managing the Offshore Wind Boom

• Women in Breakbulk: Building Confidence at Every Level

• Air Cargo Solutions for Project Cargo

THURSDAY, 8 JUNE

Education Day Sessions:

• An Introduction to Breakbulk

• Project Case Study Workshop

• Breakbulk Career Opportunities

• Skills Profiles

• Student Success Stories

• Industry Meet & Greet

• Student Show Floor Tour

Breakbulk Futures Sessions:

• Power Hour: Innovation Across the Supply Chain

• Breakbulk Recruitment Insights: Expectations, Trends & Attracting Talent

• Port XL Alumni Pitches

Networking Activities:

• Welcome Reception

• Breakbulk Boulevard

Breakbulk Futures Sessions:

• Wind Logistics Group: Industry Collaboration in Action

• TU Delft Student Presentations

• The Future of Digitalization for Project Logistics

• Power Hour: Innovation Across the Supply Chain

• Open Innovation: How to Implement It Successfully

• Port XL Alumni Pitches

• Reshaping Supply Chains: Embracing Resilience in the Digital Era

• Data and Insight - Sustainable Change Within Global RoRo, MPP and Offshore Wind – The Esgian Approach

Main Stage Sessions:

• Global Economic Outlook

• The Role of European Ports in Supply Chain Efficiency: Challenges, Opportunities & Demand

• Global Project Review

• Measuring and Pricing C0 2 Emissions

• ESG Across the Supply Chain

EVENT FEEDBACK: OUR EXHIBITORS SAY IT BEST

Here are just a few of the comments we received from our customers at Breakbulk Europe, the world’s largest event for the project cargo and

Abir

Leheta, CEO, EGYTRANS Freight Forwarder, Egypt

“Breakbulk for us is about partnerships. It’s about great opportunities for us to meet with and connect more closely with our business partners, our customers, and our suppliers. It’s also an opportunity for us to see what’s new in the industry and how we can be a part of that.”

Danny Levenswaard, director breakbulk, Port of Rotterdam Authority Ports & Terminals, Netherlands

“I’ve seen only smiling faces and people connecting with each other! It has been a really good show. We have 30 companies on our stand and everyone is really positive; they have met a lot of new faces and have reconnected with old ones. We are looking forward to another year of Breakbulk Europe!”

Julian Skyrme, commercial director, AD Ports Group Ports & Terminals, United Arab Emirates

“Over the last two days we’ve met with a cross-section from the chartering sector, insurance sector, but most importantly the EPCs in our field. We’re talking about some very exciting upcoming projects! It has been a very busy two days.”

Alan Appleyard, group operations manager, Casper Shipping Limited Maritime Transport, United Kingdom

“We’ve been here before but never exhibited. The stand is fantastic and the footfall has been fantastic! There isn’t a bad thing to say...we’ll be back next year!”

breakbulk industry

“We’ve been attending the exhibition for more than 15 years now, and it’s the way to meet our existing customers and get to know other people who we might not be doing business with currently, but maybe in the future. The exhibition this year for us has been quite successful – very crowded and very interesting contacts. So, we are ready to come next year!”

“We consistently recognize Breakbulk Europe as a significant event in our calendar, serving as a prime platform to showcase not only our group but also our company’s capabilities. It offers a valuable setting for one-on-one interactions with customers, enabling us to foster existing relationships and forge connections with new clients. Additionally, it grants us the advantage of meeting industry influencers and initiating fruitful relationships that pave the way for future collaborations.”

“Breakbulk Europe is truly unparalleled in its ability to bring together a vast number of industry professionals in a condensed timeframe. This event presents an incredibly powerful business opportunity, extending beyond mere networking to provide a platform for showcasing our company, products, and services. The reality is that people prefer to buy from people, and at Breakbulk Europe, we have the privilege of forging meaningful connections that enable us to conduct business in a more personal and impactful manner.”

“This event holds significant importance, as it caters to both the desires of our customers and provides us with a convenient and effective platform to engage with numerous individuals in a short span. Over the years, Breakbulk Europe has consistently facilitated the formation of strong and enduring partnerships for us, and this year is no exception. It stands as an exceptional exhibition that unites a vast array of exhibitors and visitors spanning the entire supply chain, making it an outstanding opportunity to connect and collaborate.”

Ryan Ebeling, senior manager marketing, American Roll-on Roll-off Carrier Maritime Transport, United States

Beatriz Alvarado, sales and chartering director, Kaleido Logistics Freight Forwarder, Spain

Juliana Gibbons, VP, Swire Projects Maritime Transport, Singapore

Gelu Batrinca, Chartering Broker, MUR Shipping Romania Maritime Transport, Netherlands

A recap of the stories that broke at Breakbulk Europe

DIGITALIZATION, TRANSPARENCY, SUSTAINABILITY

Panelists at Breakbulk Europe had the opportunity to make three wishes for the future of project logistics, which included more digitialization, greater transparency, greater cooperation and sharing of information on sustainability, flexibility, better EDI connections with logistics providers, improved proactiveness and mentoring of the older generation to the new to stem a loss of expertise.

The “genie” – session moderator Sven Hermann, managing director of ProLog Innovation – put the offer to speakers on the Planning for the Future of Project Logistics panel, which took place at Breakbulk Europe 2023.

Andreas Ulrich, global head of logistics and supply chain management at SMS group, opted for more digitalization, describing the need to create standard interfaces between logistics providers and

project specialists. “I don’t want to use logistics providers’ portals and they do not want to use ours,” he said.

Monika Beckfeld, director of sales at Hansa Meyer Global, wanted industry stakeholders to cooperate more closely and share more information at an earlier stage on green logistics. “It is not a competition to be sustainable,” she said. “We can only manage if we are working as a team.”

Richard Long, senior recruitment consultant for shipping, maritime and logistics at Helm Specialist Recruitment, used his wishes to urge employers in the industry to offer flexibility and clear career progression, encouraging them to reach out to students at a younger age to attract them to project logistics.

Thomas Dahmen, managing director at Siempelkamp Logistics & Service, wished for EDI connections with logistics companies. “We are

TOP LOGISTICS

WISHLIST

EDI connected to our customers, but we have no EDI connection with our logistics providers. We are going back to telefax – that is not the future! Where is the platform?” he asked.

He also urged the industry to be more proactive with information: “It cannot be, for example, that three containers have been left in the port and nobody knows about it - we need proactive information.”

Lastly, he encouraged the room to “keep the experts.” “In the audience, I see experts I have known for years. Let them pass their expertise to the younger generation because you need a really wide range of expertise and a wide range of experience and knowledge to get projects done.

“We are all going into retirement in the next 10 years, and we have to find a way to pass our knowledge to the next generation, otherwise we are screwed.”

CONTAINER BOOM CREATES RIPPLE EFFECT IN THE SHIPPING INDUSTRY

The industry is currently buoyed by optimism, despite lingering concerns over demand in specific sectors.

While industries such as commodities, energy transition, and construction exhibit a better-thanaverage outlook, experts caution that these positive prospects will take time to materialize fully. Nonetheless, the overall sentiment remains positive, with market conditions offering promising opportunities for sustained growth and development.

This perspective was shared by industry experts who participated in the Business and Market Outlook panel at Breakbulk Europe 2023 in Rotterdam. The session was moderated by Johan-Paul Verschuure, director at Rebel Group.

Stressing the importance of sustainable growth and responsible practices while building a resilient and enduring industry, Lars Feller, president of dship Carriers, said now more than ever, careful planning, collaboration and steadfast commitment from key stakeholders were necessary.

“I am optimistic about the next three to four years,” he said, reflecting the general sentiment shared by his fellow panelists Kyriacos Panayides, CEO of AAL Shipping; Carsten Wendt, senior manager – head of sales high & heavy and breakbulk Germany for Wallenius Wilhelmsen; Andy Tite, VP, global business development & commercial director of industrial projects at DHL Industrial Projects; and Drewry multipurpose vessel sector analyst, Peter Molloy.

The shipping industry underwent notable disruptions due to the container boom, which had farreaching implications for various sectors. Molloy highlighted the substantial rise in the Drewry Container Index. This rate surge was not solely attributed to the introduction

of new cargo but was also influenced by the container scarcity induced by the Covid-19 pandemic. Consequently, he said, these developments had a discernible impact on the MPV market.

“Looking back at the shipping industry over the past year, it’s evident that various segments experienced a bullish trend,” Wendt said. “The container sector achieved record-high rates, while the multipurpose and roll-on, roll-off sectors also enjoyed favorable conditions. Expectations were high for this positive momentum to persist. However, with the arrival of new tonnage in the market and a decline in consumer goods demand during the autumn, rates plummeted significantly. Despite these developments, inquiries about rates remain elevated, even as container rates continue to decline.”

He said this was due to an increase in demand in the construction, mining, energy and agricultural sectors.

“Since 2021, rates for mining products have witnessed a remarkable surge, with a notable 20 percent increase. Australia, in particular, has seen a substantial rise in coal exports, reaching unprecedented levels. The demand is further

bolstered by China’s construction of new coal-fired power plants. Conversely, Europe is experiencing a decline in coal consumption, reflecting the diverse geopolitical circumstances surrounding the coal industry,” Wendt said.

Another sector experiencing significant growth was agriculture, also driven by geopolitical factors. The market for wheat and corn was thriving, fueled by countries seeking greater independence in their food supply chains. Also, the energy sector continued to see increased volumes moved with more projects taking off worldwide. Experts agreed this surge in demand across these sectors would continue to boost the MPV industry going forward.

Another exciting development, Tite said, was the cross-over currently being seen in the three distinct worlds of shipping – containers, roro and MPV, each driven by its unique supply and demand factors. Despite the current challenges with short-term demand issues, the experts maintained a bullish outlook for 2023 and beyond, saying expectations were high for an increase in demand over the next few years.

EUROPE READIES FOR NUCLEAR REVIVAL

The project supply chain can look forward to a resurgence in nuclear power projects in Europe, but obstacles will need to be overcome to ensure successful buildout, delegates at Breakbulk Europe heard.

Climate change targets, regionwide government plans to phase-out coal-fired power stations and the conflict in Ukraine that continues to wreak havoc on energy markets are fueling a revival in nuclear power, with the UK, France, the Netherlands, the Czech Republic and Slovenia among several European nations planning to build new plants or expand existing ones.

A Nuclear Power Projects in Europe panel session at Breakbulk Europe 2023, moderated by Marco Poisler, chief operating officer at UTC Overseas, focused on Poland’s bid to build its first-ever nuclear power plant, or NPP.

The ambitious project got a recent boost after state nuclear power company Polskie Elektrownie Jadrowe, or PEJ, signed an agreement with U.S. firms Bechtel and Westinghouse setting out a plan

for the delivery of the NPP, which will likely be installed on Poland’s Baltic Sea coast, close to the breakbulk-handling Port of Gdańsk.

Construction is slated to start in 2026, with first power in 2033.

On the panel, Wayne Trent, manager of procurement and contracts at Bechtel, said preliminary work had already begun and meetings had taken place with local companies to discuss opportunities for collaboration, and while sourcing skilled workers could be a challenge, it was a not a unique one to Poland.

“We’ve seen this issue all over the world. We’ve done things in various locations, such as opening training centers to train local welders –working in conjunction with our customers and local contractors. I see it as a challenge, but it’s not unique. It’s something inherent in these types of projects.”

Łukasz Chwalczuk, president of the Polish Heavy Transport Association, said the project could face infrastructure challenges. “The location at Kopalino is next to the sea, about ten kilometers from a

village. There is no infrastructure at the moment. So cooperation is needed between road owners, the ministry of infrastructure and companies to make sure the cargo will be transported in a safe manner.”

Still, Poland is on the right track. Chwalczuk said that 20 years ago, Poland had just 500 kilometers of highways; now the country has 5,000. “The main roads are being built or rebuilt, so hopefully for heavy transport and oversized transport there will be new roads that can handle such big units within the next few years.”

The executive also pointed to recent gains in the digitalization of the permitting system for abnormal loads vehicles.

Also on the panel, Glenn Mazijn, global segment lead of nuclear at Mammoet, said it was imperative that a project of this magnitude has access to temporary storage and port facilities. Check out our post-session interviews with the panelist Łukasz Chwalczuk: https://www.youtube. com/watch?v=ktjYwCSGzDU

GROWTH PREDICTION, BUT CONCERNS ON AN AGEING MPV FLEET

The key takeaway from Drewry Shipping Consultant’s keynote speech at Breakbulk Europe 2023 in Rotterdam was that there would be growth in multipurpose ship demand from 2025, even in a lower economic activity scenario. However, there were caveats to that upbeat prediction, with warnings of an ageing fleet and an orderbook that is “not where we expect it to be” to balance freight rates.

Speaking at the event, Peter Molloy, Drewry’s multipurpose vessel sector analyst, said he sees the energy sector as one of the largest supporters of project cargoes and therefore MPV vessels. “When we talk about vessel supply there is a clear indication towards heavy-lift vessels. We also have a situation where we have not just the environmental requirements, but also discussions about energy security based on exposure for different governments

and their way of protecting their country against fluctuations in energy markets. That also helps to push through certain energy projects.”

Molloy noted that there is an ageing MPV fleet in certain segments, particularly in the mid-range geared vessel sector. “That sector is going to continue to age if it doesn’t have any further investment,” he said.

Meanwhile, the small orderbook led Molloy to warn that underordering could bring different investors into the sector, without the experience that traditional operators have. “If we don’t build and order ships within the next couple of years, we will see an increase in the age of vessels operating and ‘strange’ players coming into the market, which creates a risk.”

Drewry’s figures revealed that there are very few large-size MPVs being built with the whole segment dominated by smaller size vessels of

around 10,000 deadweight-tonnes. “We have a lot of vessels on the smaller side, but we haven’t had anything significant built in this sector for quite some time,” he said.

While there is “growing and consistent investment” in the premium project cargo carrier sector, more generally, investment appetite in the MPV sector is still limited. This is due in large part to the continuing uncertainty on the choice of fuel for newbuild ships and the real risk of stranded assets if an owner selects a fuel that does not turn out to be a feasible choice for bunkering down the line.

He added: “Environment regulations could force ships out of the market.”

A final takeaway from Molloy was that the sector is to remain profitable despite uncertainties. “Demand is to remain positive, in a situation where supply will start to get tight,” he said.

WOMEN IN BREAKBULK SHARE INSIGHTS AND STRATEGIES

Breakbulk Europe became an empowering platform for women in the sector to discuss and address the challenges of imposter syndrome. Femke Brenninkmeijer, CEO of NPRC, and Christel Pullens, managing director of PortXL, shed light on their experiences and shared strategies to overcome this pervasive phenomenon.

Opening the Women in Breakbulk breakfast session, Breakbulk Marketing & Media Director Leslie Meredith said imposter syndrome, defined as the feeling of inadequacy and self-doubt despite accomplishments, did not discriminate. It affected individuals from all backgrounds, and even accomplished figures such as Sheryl Sandberg, Priyanka Chopra Jonas, Maria Neira, and Michelle Obama have admitted to experiencing it.

Recognizing that these doubts can arise at any point in one’s career, the discussion specifically addressed

how imposter syndrome affected women in the breakbulk sector.

“It is important to recognize that we all have doubts, especially when one steps out of one’s comfort zone,” Brenninkmeijer said.

She emphasized the importance of self-confidence, knowing oneself, and being aware of strengths and weaknesses. Brenninkmeijer encouraged women to define their leadership styles and not conform to traditional masculine notions. She said that women leaders brought a fresh perspective and contributed to a more inclusive industry by promoting their unique qualities and caring for their teams.

Pullens agreed, saying it was important for women to continue to show up despite self-doubt and stand their ground. “It is important that we as women take risks, engage in difficult conversations, and trust in our abilities. Only by persevering through challenges

do women gain confidence and demonstrate their capabilities in male-dominated environments.”

Both panelists also stressed the importance of educating both men and women about women’s unique needs and perspectives in the workplace.

According to Brenninkmeijer, mainly women in middle management often face the brunt of gender disparity. “As a CEO, I am responsible for the culture in our organization, and I have far more influence in the gender discussions. At middle management, you are not always part of that discussion, and you must prove to people around you that you are just as capable as your male counterparts of doing the job.”

Pullens and Brenninkmeijer encouraged women in the breakbulk sector to step forward, share their expertise, and participate in discussions, ensuring a broader representation of voices.

PROJECT LOGISTICS A ‘MOST EXCITING SPACE’

Don’t enter the world of project logistics if you are looking for the humdrum of a 9-5 regular job, panelists at Breakbulk Europe’s Education Day told students.

“You might get a call at 2200 hrs because something is delayed, a ship has to sail and there is a problem somewhere,” said Milind Balaji, director of global distribution and supply chain services at GeorgiaPacific LLC. “If you are excited by that, absolutely go for it.”

There are other parts of logistics that are more “steady,” but project logistics is the “most exciting space,” Balaji added. “I’ve done everything from trucking to rail, containers and now to project cargo and breakbulk. It’s very niche; the people are some of the most intelligent and

passionate people that I’ve ever met.”

Moderating the panel, Susan Oatway, research analyst for breakbulk and project cargo at Journal of Commerce, S&P Global, advised those interested in a career in project logistics not to pigeonhole themselves too early. “Look at the whole picture and then focus in on an area. Have that broad sense before you narrow down.”

She added that while project logistics might not be as “sexy” as Google, it is still an industry of the future.

Eszter Ilyes, global tender manager at Kuehne + Nagel, highlighted the travel opportunities available: “This is a great opportunity especially when you are young as you can follow the cargo and travel a lot.”

Diana Kaufmann, president

for Central Europe, global risk management and HR development at deugro, added that project forwarders are very keen to get young people on board and that they are “craving young talent.”

Representing carriers on the panel, John Pittalis, marketing and communications manager for AAL Shipping, stressed that students from a diverse range of backgrounds and experiences are being sought.

“Whatever your background, however diverse your education, there is a place here. There is an opportunity for everyone,” he said, adding that when employees join a shipping company in one position they do not necessarily stay in that position. “You move around and there are lots of opportunities.”

By Carly Fields

BRINGING INNOVATION TO LOGISTICS

Start-ups Set to Disrupt the Sector

Breakbulk Europe 2023 welcomed start-ups bringing technology and innovation to disrupt the logistics sector. Breakbulk spoke to two of the exhibitors about their products.

Aaron Spandehra, CBDO and cofounder of driveMybox, described his product as a digital platform for container transport, aimed at clients as well as transport companies and self-driving truck drivers. driveMybox’s goal is to solve the complexity and opaqueness of the transport market through an all-in-one solution. “In doing so, the entire transport process is digitized, from booking requests to cost processing, and all parties involved are brought together via a direct contact person: driveMybox.” Other features include dynamic route optimization,

empty run avoidance, trucker matching, short payment terms and direct and “uncomplicated communication.”

Spandehra said the potential for change in the logistics industry is “gigantic,” which excites him to push for sustainable change in the sector. “In general, it is very difficult to introduce innovation and to be honest, it’s not always easy as a young start-up in the container transport industry since resistance to innovation is still very high. But this is exactly why we need to continue driving innovation in this sector to sustainably optimize it.” He continued that digital exchange can create transparency in the entire container transport industry. “We managed to build up a functioning network with qualified cooperation partners, which shows me that platforms like driveMybox are definitely the right way for long-term change in the container transport industry.” He therefore encourages other start-ups in the logistics industry not to be deterred by old and sluggish processes, but to be “brave” and take the opportunity to bring about change into this industry.

Still Progress to be Made

He noted that the understanding of the power of data and technology is still lagging and gave the example of

administrative tasks carried out by a haulage company, which are still done manually. “They might be able to provide more capacity, but they are blocking themselves by the amount of administrative tasks,” he said. On the other hand, some larger transport companies that have invested in transport management systems only look at their own area, and not to their network. “Therefore, we can say that especially the haulage companies are not yet as digitally positioned and prepared for the future as they should be.”

Spandehra is used to countering objections from breakbulk and project cargo stakeholders on investment in technology. He tells them that technology is key. “We need digital change in the logistics industry and the ones that are not willing to participate and digitize themselves, will get kicked out sooner or later.”

Initially, driveMybox experienced skepticism on its new concept, but he acknowledged that the skepticism came from fear of technology and digitalization in general. “But we were able to convince our users how they can profit from digitalization and over the years, we are able to prove that digitalization is the future of logistics.”

Likewise, a lack of trust, standardization and transparency

Credit: NautilusLog

Aaron Spandehra

is holding back the evolution of this sector. “There is a huge lack of trust and standardization,” Spandehra said. “The average age in forwarding companies for example is between 45 and 50. Therefore, it is extremely difficult to pick up the old-established colleagues, to bring them along and convince them that they need to apply new processes in their daily work.

“We must get rid of the idea of perfectionism, and react flexibly and agilely without losing focus. Progress and innovation must be the ultimate goal, and we must not let ourselves get off track here.”

‘Digital Data Engine’

Liam Phelan, COO, and Wouter Hagens, head of business development, gave insight into their platform NautilusLog, a Hamburg-based shiptech startup that they claim is revolutionizing shipping through the development of a digital data engine. The start-up sets new standards in digitalization in the maritime industry and defines new business models via the platform.

The platform and digital logbook replace paper and analog processes to “transform data into added value via integrated know-how, stakeholders into partners, and obstacles into growth opportunities in the maritime industry,” said the executives.

Phelan and Hagens were attracted to the maritime sector as they saw it offered a “thrilling area for innovation and growth.” An industry that has been reliant on manual processes and outdated systems presents a significant opportunity for technological advancements, they said. “The prospect of revolutionizing operations through the integration of digital technologies, such as Internet of Things, artificial intelligence, and blockchain, is truly exciting. By leveraging these technologies, we can streamline processes, enhance safety and efficiency, reduce costs, and create sustainable solutions for the maritime sector.” They continued

that the vastness and complexity of the maritime industry – with its global reach and interconnectedness – provides an “expansive canvas for our startup” to make a meaningful impact and contribute to the digital transformation of an industry that plays a crucial role in global trade and commerce.

However, they note the “noticeable gap” in understanding of the true potential of data and technology in the industry. “The industry’s traditional nature and the constant changes in regulations make it challenging for stakeholders to stay updated.” Also, the volume of paperwork in the maritime industry can be overwhelming, leading to slow processes and difficulties in managing documentation and followups. “While many people recognize the importance of data, they often lack the knowledge and tools to utilize it efficiently,” they said. “This is where our startup, NautilusLog, steps in to facilitate the digitalization of processes for assets both at sea and on land.” The platform provides 24/7/365 accessibility to various parties, promising to transform existing data into valuable and comprehensible insights for everyone involved. “We aim to bridge the understanding gap and empower stakeholders in harnessing the power of technology in the maritime sector.”

Offering Tangible Benefits

When countering objections from breakbulk and project cargo stakeholders on investing in technology, NautilusLog focuses on addressing specific concerns and demonstrating the tangible benefits a digitalization solution can bring to operations. “By actively listening to the feedback and requirements of stakeholders in the maritime industry, such as crew members, ship owners, ship managers, classifiers, and flag states, we have gained valuable insights into their pain points and challenges.” They added that their technology is designed to improve usability, efficiency, and user experience, taking into account the daily tasks and operations of stakeholders.

“Despite the industry’s traditional nature, we are dedicated to driving the digitalization of shipping and take pride in being pioneers in addressing the diverse needs of the business through our adaptable approach.”

However, a lack of trust, standardization, and transparency have been significant obstacles to the evolution of the maritime sector. “During our interactions with crew members and shipping companies, we encountered a strong desire to replace traditional logbooks with our digital application while on board,” Phelan and Hagen said. “However, regulatory limitations posed a challenge to implementing such changes. In response to the market struggles, our startup has actively worked on a solution by collaborating with other industry partners to develop a new ISO Standard, ISO 4891, for smart applications in ships and marine technology.”

The standard has been designed with a customer-centric approach, incorporating feedback from users through interviews,” they said. “By establishing a common framework and guidelines, this ISO Standard will enable the development, testing, and integration of smart applications, fostering greater trust, standardization, and transparency within the maritime industry.”

Carly Fields has reported on the shipping industry for the past 23 years, covering bunkers and broking and much in between.

Liam Phelan, and Wouter Hagens from NautilusLog at Breakbulk Europe 2023. Credit: NautilusLog

BREAKBULK EUROPE BY THE NUMBERS

BIG NAME SHIPPERS AT BREAKBULK EUROPE

BY SECTOR In total, members, twice the number present last year

shippers attended Breakbulk Europe.

Air Liquide, Air Products, ALCOA, Alstom, Andritz, Aramco, Baker Hughes, Bechtel Corp., BMW, Bouygues Construction, BP, British Steel, Caterpillar, Chevron, Enel, Enercon, Enerkem, Europipe, FLSmidth, Fluor, GE, Glencore, Halliburton, Hitachi Energy, Jacobs Engineering, Kiewit, Linde Engineering, McDermott, Mercedes-Benz, NOV, NEOM, Nordex, Repsol, Saipem, Samsung Engineering, Shell, Siemens, Sumitomo, Tata Steel, Technip Energies, Técnicas Reunidas, Tecnimont, thyssenkrupp, TotalEnergies, Vallourec, Vestas, Volvo, Wärtsilä, Westinghouse Electric Company

25 % 33 %

EPC (Engineering, Procurement & Construction)

Manufacturer of Project Cargo

42 %

PUMP UP THE

By Thomas Timlen

HYDROPOWER VOLUME

Energy Storage Development Calls for Project Cargo Expertise

China is expecting to add 315 pumped storage hydropower, or PSH, projects by 2031, making it far and away the top PSH developer in the world.

Much attention is given to expansion plans surrounding energy projects of every kind, as these serve well as drivers for demand for project cargo

Region: Asia

Problem: The global energy transition needs adequate storage to cope with the variability of renewable energy sources

Solution: Pumped storage hydropower could be the answer and its buildout will need the support of project cargo professionals

transportation services. Developments for sustainable energy programs with power generated by wind and solar farms or traditional hydro energy facilities are familiar to project cargo stakeholders. Yet PSH has received comparatively less attention.

First, what is PSH? Pascal Radue, president and CEO of GE Hydro Solutions, describes PSH as “the largest source of energy storage that exists today, which can help stabilize the grid with the integration of wind and solar power.” In practical terms, PSH consists of pumped storage units that help to stabilize the grid by acting as giant batteries. Water is pumped from the lower to the upper reservoir in times of surplus energy and, in times of demand, water from the upper reservoir

is released, generating electricity as it passes through a turbine.

Energy to power the pumps can be provided by any source on the grid that is operating during off-peak periods, whether conventional or sustainable (wind, solar or hydro), which improves efficiency of the respective units by leveraging over-capacity power generation while setting the stage to exploit the more sustainable hydro units when energy demand requires their contribution to the grid.

PSH does, however, have some drawbacks. These facilities can only be built where specific geographic conditions exist, allowing for two large bodies of water at different elevations to be created, connected, and maintained. Projects, especially

Aerial view of Jinzhai Hydro Plant, China.

Credit: GE Renewable Energy

greenfield developments, can face opposition, as with conventional hydropower. Additionally, PSH requires regulatory ecosystems and market structures that accommodate and incentivize energy storage systems. Looking at China’s management of significant infrastructure initiatives, history has shown that these are planned and launched at a faster pace compared with similar initiatives in Europe and North America.

China to Drive Buildout

Researchers at the Global Energy Monitor, or GEM, have determined that a massive, planned buildout of pumped storage hydropower in Eastern Asia, driven by China, would allow the region to single-handedly meet the International Renewable Energy Agency’s, or IRENA, target of 420 gigawatts, or GW, of pumped storage worldwide by 2050.

IRENA is an intergovernmental organization that supports countries in their transition to a sustainable energy future, and serves as the principal platform for international cooperation, a center of excellence, and a repository of policy, technology, resource and financial knowledge on renewable energy. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar and wind energy in the pursuit of sustainable development, energy access, energy security and lowcarbon economic growth and prosperity.

Adnan Z. Amin, IRENA’s directorgeneral, said that the global energy system requires rapid, immediate and sustained change. “The deployment of renewables must increase at least sixfold compared to the levels set out in current plans. The share of electricity in total energy use must double, with substantial electrification of transport and heat. Renewables would then make up two-thirds of energy consumption and 85 percent of power generation. Together with

energy efficiency, this could deliver over 90 percent of the climate mitigation needed to maintain a 2°C limit.”

GEM’s new Global Hydropower Tracker catalogues 2,212 GW of hydropower globally with nearly 4,000 pumped storage, conventional and run-of-river hydropower projects of at least 75 megawatts, or MW, or larger. Analysis of almost 4,000 projects in 134 countries revealed that the Eastern Asia region has a total of 425 GW of pumped storage capacity operating and prospective, announced, in pre-construction, or in construction, which represents 73 percent of the global total.

Pumped storage is a crucial component of the global energy transition, as the worldwide growth in variable renewable energy sources such as wind and solar increases the need for energy storage solutions. Modelling by IRENA suggests that 420 GW of total installed pumped storage hydropower will be needed to allow the world to meet the Paris Agreement’s climate goals by 2050.

Promise of Pumped Hydro

Of all operating hydropower projects with at least 75 MW of nameplate capacity, only 14 percent (161 GW) is accounted for by pumped storage, while the other 86 percent (967 GW) is conventional storage or run-of-river. But pumped storage makes up 49 percent (439 GW) of prospective capacity, indicating the rising importance of this technology type in the coming years relative to other types of hydropower.

GEM’s tracker has identified the top five countries with the most operating pumped storage hydropower as China (30 percent of the global total), Japan (14 percent of the global total), U.S. (13 percent of the global total), Italy (5 percent of the global total) and Germany (4 percent of the global total), while China leads the world with 82 percent of the prospective pumped storage hydropower.

“Pumped storage capacity is set to grow much faster than conventional

dams worldwide, and China is the clearest example of this trend. Pumped storage and hydropower are an integral part of the global energy transition, and the rest of the world should take note of the buildout in Eastern Asia,” said Joe Bernardi, project manager for the Global Hydropower Tracker

How will this translate into opportunities for the project cargo sector? “Much of the PSH capacity in China is in the announced or preconstruction stages in our Tracker, both of which come before the physical construction stage,” Bernardi told Breakbulk. “In the coming years, as prospective facilities move toward actualization, we would expect to see a significant increase in the transportation of facility components and construction equipment to the corresponding prospective PSH sites.”

While China has well-established and well-known hydro facilities such as the Gorges Dam Hydro Electric Power Plant, not all new PSH projects will be situated at these sites. Cheng Cheng Wu, project manager for GEM’s Global Energy Transition Tracker told Breakbulk: “GEM’s Global Hydropower Tracker shows that many provinces which do not currently have any operational PSH facilities above 75 MW nonetheless have plans to greatly build out PSH capacity in the future. As a result, these provinces may not yet have as much experience with the construction logistics and supply chain processes needed for the significant planned expansion.”

Joe Bernardi

Prospective PSH: Global versus China

This lack of experience and know-how can serve well to create opportunities for logistics companies that are prepared to support the related movements of components and equipment to the new PSH sites, which could also involve participation in the development of infrastructure required to transport these items.

Local Moves to Increase

Providing a view from China, Protranser International Logistics Marketing Manager Leo Liu pointed out that a significant quantity of components destined for domestic hydro power facilities are manufactured locally, with the movements from manufacturing plant to project site arranged by the component

producers. In addition, there is some activity involving the export of hydro power facility components.

Recent activity involving GE illustrates Liu’s observations. Under a contract signed in 2017, GE Hydro Solutions was selected by Anhui Jinzhai Pumped Storage Power Co., Ltd, one of the divisions of State Grid Xin Yuan, to supply four new 300 MW pumped storage turbines, generator-motors and the balance of plant equipment for the Anhui Jinzhai pumped storage power plant located in the Jinzhai County, Anhui Province, China. The first two units were connected to the grid in October 2022.

In line with the planned schedule, all units of the Jinzhai pumped storage power plant have now

been successfully connected to the grid and have completed 15 days of trial operation. All units are now under commercial operation.

Addressing findings by GEM’s tracker and IRENA’s goals, GE states that the 1.2 GW Jinzhai hydro power plant project will play a key role in fostering a stronger energy mix in China. The project’s annual generating capacity represents about 1.4 times the annual household electricity consumption in Jinzhai. Acting as a sustainable giant energy storage system, the Jinzhai pumped storage station will save up to 120,000 tons of coal and cut 240,000 tons of carbon dioxide emissions every year.

“The Jinzhai pumped storage project, now fully operational, will provide for a huge amount of clean energy to China and will help stabilize the grid to ultimately help integrate more renewable energies in a reliable way,” Radue said. “And the beauty of hydropower projects is that they are set to be operational for the very long term, about 80 years, meaning that the project will provide affordable energy for several generations to come.”

Will China continue to grow its PSH capacity? Analysts at GEM seem to think so. Their analysis points out that China is the top-ranked country in terms of operating PSH capacity with 50.7 GW, holding 30 percent of the world’s total. This is roughly equivalent to the combined PSH capacity of all European countries. China’s current share of global prospective capacity exceeds 80 percent, making it the primary country for the development of the pumped storage industry.

On the road towards achieving China’s prospective capacity, a substantial quantity of hydro components and equipment will need to be moved, boding well for project cargo transporters able to operate in the 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.

Global Energy Monitor, Global Hydropower Tracker

IMPORTANCE OF PROPER PRE-PLANNING

Seminal Project Ten-plus Years in the Making

When it comes to demonstrating the power of meticulous planning, global coordination, and innovative problem-solving in the breakbulk industry, few projects stand out like the Long Son A1 – Olefins Plant Project in Vietnam. The scale and complexity of the undertaking, conducted amid an array of unpredictable challenges, including the Covid-19 pandemic, have set new standards for what can be achieved in the sector.

For this project, freight forwarding specialist deugro was tasked with the timely shipment and delivery of

Region: Asia

Problem: Move of 155 separate breakbulk shipments had to overcome remote working, under-strengthened quays, and rocketing rates

Solution: Early involvement championed as accommodating daily schedule changes become the norm

280,000 freight tons of petrochemical equipment from over 35 seaports and airports around the world to

By Malcolm Ramsay

the construction site on Long Son Island near Vũng Tàu, Vietnam.

This vast cargo included 178,300 freight tons of critical oversized and heavy-lift components, including a behemoth C3 tower, weighing a colossal 778.1 metric tons and stretching almost 100 meters in length. In total, 155 separate breakbulk shipments were delivered over the course of the project, utilizing 55 chartered heavy-lift vessels.

The successful completion of the project this year is the culmination of plans stretching back over a decade.

Loading operation of the C3 tower at Kuantan. Credit: deugro

Asia

For any project as ambitious as the Long Son A1 Plant the preplanning process will be lengthy and, in this case, deugro began its first conversations almost a decade and a half ago. However, delays meant it was at a standstill for much of that time.

“The project started to gain momentum in 2017, after being on hold since 2009,” Benjamin Mutti, regional director, deugro Singapore & Malaysia, told Breakbulk. “deugro Singapore, together with deugro Vietnam, closely monitored the developments of the project, and in February 2018, deugro conducted an initial route survey for TechnipFMC on Long Son Island and the nearby port,” Mutti explained.

Being one of TechnipFMC’s approved project freight forwarders, deugro was strategically positioned and its experience, coupled with its well-established office setup in Vietnam, proved vital. By August 2018, TechnipFMC had clinched the award for the project, opening the way for preliminary budgetary inquiries and shipments.

With the wheels in motion, the main tender was released in early 2019, leading deugro Singapore to secure the offshore award and deugro Vietnam to receive the onshore award by Christmas time that year.

Close Coordination a Necessity

Given the magnitude of the petrochemical plant and the diverse array of origin countries for cargo,

a high degree of coordination was required from the start. Components were required from over 15 countries, and this entailed an intricate dance of logistics and planning, with teams coordinating across multiple time zones.

“Ensuring the on-time shipment and delivery of over 1,400 breakbulk, container and air freight shipments was challenging,” Mutti noted. “And to ensure the required sequences of the construction site, timing, flexibility, and daily status reports demanded a high level of communication and coordination with all parties.”

Having finally got the project started at the tail-end of 2019, the teams then faced a massive curveball in the form of the Covid-19 pandemic. A few short months into the planning process the world was locked down, with widespread and ever-changing restrictions put in place at short notice, significantly impacting shipping and delivery schedules.

This necessitated frequent, sometimes daily, changes to the schedule, which had to be integrated into the project plan. Yet through a combination of adaptability, clear communication, and swift decision-making, the team navigated these unanticipated waters in the early days of 2020.

In total, deugro Singapore, as the project control hub, worked closely with 16 deugro country organizations around the globe, connecting more than 50 deugro experts with client and subcontractors daily to ensure up-to-the-minute status updates.

Collaboration With Carrier

Early in the project’s lifecycle, deugro and dteq teams identified the size of the largest components as challenges when transiting key chokepoints, with the hefty size and weight of the main cargo pieces, such as the 338-metricton C2 tower and the 600-metric-ton quench water tower, presenting significant logistical hurdles.

“More than 70 comprehensive method statements had to be prepared for the safe movement of the cargo components across all interfaces,” Mutti said. “To ensure cargo movement, loading and stowage processes in accordance with the highest safety requirements, there were detailed route surveys, motion response analyses, ballasting and mooring calculations, ramp arrangements, lifting and rigging calculations, as well as stowage and sea-fastening designs.”

To streamline this process, deugro and Roll Group built on the close partnership already developed between the two firms on previous projects and began devising a solution that was both pioneering and safe, ensuring the successful navigation of the cargo between the vessel cranes.

“deugro worked with the experienced teams from dteq Transport Engineering Solutions and Roll Group, whose experts conducted route surveys, identified obstacles and developed technical solutions during personal on-site visits in Malaysia and Vietnam over a period of several weeks,” Mutti said. “They prepared route surveys, designed lifting, rigging, stowage and cargo securing plans, calculated ramp arrangements and drafted loading and discharge plans.”

The initial plan was to use roll-on, roll-off operations for the larger pieces of cargo. However, the combined expertise of the partners led to the creation of a more efficient solution. Instead, the teams redesigned the early lifting plans and found a way to safely lift the quench water tower and the C2 tower. This included the temporary removal of a crane boom support, a clever adaptation that made room for the large units and not only ensured the safety and integrity of the cargo, but also saved the client time and costs.

Robin Koenis, managing director Asia Pacific at Roll Group, highlighted the importance of clear timescales for successful execution, noting the need for sufficient time to fix vessels and equipment and to setup and align the

Benjamin Mutti

land and sea engineering scope. “The early involvement of the land and sea carrier to align fabrication supports and grillage and sea fastening on the ship, as well as the SPMT trailer configurations on both sides was vital,” he said.

Foreseeing the skyrocketing global freight rates, deugro also proactively contracted six semi-submersible, heavy-lift multipurpose cargo vessels, providing a guarantee of cargo space and some stability on project budget.

Choregraphing Complexity

With pre-planning out of the way, the next major stage of the operation was the pre-carriage of the largest breakbulk components from the production yard of KNM Process Systems in the Gebeng industrial area, Kuantan, Malaysia. This included the giant C3 tower, which had to travel six kilometers to the nearby Kuantan Port on Malaysia’s east coast.

“To roll the cargo onto the vessel was not an easy task. It took months of planning and careful calculations by a team of professionals from Kuantan Port, Roll Group, Worldwide and KNM, among others,” a spokesperson for Kuantan Port explained.

For the safe transportation of the C3 tower from the production yard to Kuantan Port, a journey management plan, including traffic and road diversion, was designed and approved by the port prior to the start of the operations. Safety analysis meetings were then held to ensure emergency routes and access for emergency vehicles and to inform the public about waiting times and road closures.

Mutti explained that the main challenges were “obstacles at the fabrication yard, tight turning radiuses, and inadequate ground-bearing capacities on the road and especially at the port – resulting in countless axles being added to distribute the load better. Therefore, additional trailers from the U.S. had to be shipped in to meet these exceptional requirements.”

Further preparations included the removal of lamp posts, the arrangement of permits and police escorts, levelling and compacting pinch-points, power and telephone cable lifting, strengthening of drains, as well as trailer performance checks and daily equipment maintenance.

This operation was made more difficult by the tight space at the dock and the team from Kuantan Port noted that “to position the cargo parallel to the vessel, the ground team had to turn the cargo 90-degrees in a very limited space. Then they had to wait for hours until the sea tide was at the desired level to roll the cargo onto the vessel. The overall operation took 6 hours to complete.”

To ensure the safety of this maneuver, the ground had been reinforced with almost a hundred ramps and steel plates placed to achieve a load spreading sufficient to meet the port’s groundbearing capacity of 3 metric tons per square meter. Even with this precaution, the concrete curb at the jetty had to be removed and rebuilt, and then repaired after the operation was completed.

“The biggest challenge was coordinating with the relevant authorities to ensure smooth and

timely operations from fabrication yard to site, while adhering to strict Covid restrictions,” Koenis of Roll Group added.

Loading Operations Underway

After the arrival of the ocean vessels, the components were loaded aboard with additional sea-fastening requiring various welding and lashing work. To safely secure the C3 tower on the turntables, additional “d” rings had to be welded to the trailer and the cargo to be able to secure it properly.

“The most challenging units were the 600-metric-ton quench water tower, which required two 36-axle lines to be driven alongside the vessel, and the C3 tower, which required two 48-axle lines,” Mutti said.

“Comprehensive method statements for the operations were based on detailed motion response analyses, ballasting and mooring calculations, ramp arrangements, lifting and rigging calculations, as well as stowage and sea-fastening designs.”

Prior to each loading, meetings and toolbox talks were held with the vessel’s master, the cargo superintendent, the marine warranty surveyor and the client’s representative, as well as all persons involved, to minimize any risks.

All units, except the C3 tower, were loaded by vessel crane in tandem lift operations at the main berth, although some units, such as the C2 tower and the quench water tower, caused additional challenges

Maneuvering the nearly 100-meter C3 tower on the project construction jetty in Phu My Port, Vietnam. Credit: deugro

since they nearly reached the vessel crane’s lifting capacity and the space was tight between the cranes to swing the cargo on board.

As Kuantan Port had never conducted a roll-on, roll-off operation before there was a steep learning curve for some staff, but meticulous preparation and clear communication ensured each operation proceeded without incident.

“The chance to handle such an unusual and delicate operation was a meaningful experience for the staff of Kuantan Port,” the port authority’s spokesperson said. “We are honored and glad to get everyone involved connected to this golden opportunity.”

Overcoming Discharge Hurdles

After the secure arrival at the Phu My construction jetty in Vietnam, the components began their discharge phase. This was a well-orchestrated process that utilized both roll-on, roll-off and lift-on, lift-off operations. Notably, Phu My port’s ground-bearing capacity stood at an impressive 10 metric tons per square meter, significantly higher than that of Kuantan Port, making the discharge process somewhat less

complicated as it reduced the need for as many steel plates and axle lines.

Despite this, there were still some obstacles. As Mutti described: “One of the biggest challenges was the turn from the jetty to the road at the job site, which was overcome through detailed planning and the correct use of axle lines… to safely roll off the C3 tower, several fenders had to be removed to allow the vessel to move closer to the jetty for positioning the ramp.”

Once cleared through customs, the cargo began its final journey along a 1-kilometer heavy haul road to the site’s dress-up area, utilizing 64 axle lines across self-propelled modular trailers and traditional trailers. The sheer size and weight of the C3 tower, alongside restrictions imposed by the trailer setup and the terrain, demanded thorough preparation and engineering.

“The area in and around one pipe rack on the construction site was extremely tight, so it took several meetings, site inspections and engineering sessions to identify a safe travel path,” Mutti said. “The road around the pipe rack had to be compacted and levelled to ensure the turning radius was fully utilized.”

As it was the rainy season by this time, many areas were completely

under water, and sand and soil had to be piled up. As a result, deugro’s teams arranged for pumps and drainage to remove the water and dry out the area. Despite these challenges, however, all components were safely delivered to the site, on time and in good order, even amid the challenges of Covid-19 restrictions.

Christophe Reveilloux, head of transport operations at Technip Energies, praised both deugro Singapore and deugro Vietnam for their professionalism, highlighting the hard work put in by all partners in getting this ambitious project over the line.

“While it seemed impossible at first, a project can be managed remotely if you have the right people on the ground,” Mutti concluded. “Early engagement with the right partners was the key to success. deugro brought the teams of TechnipFMC, deugro, dteq, and the heavy-lift partners together at an early stage, and this made it possible to engineer solutions around the many challenges we were facing and keep to the client’s project schedule.”

Based in the UK, Malcolm Ramsay has a background in business analysis and technology writing, with an emphasis on transportation and ports.

Six kilometer journey of the C3 tower from the production yard to Kuantan Port. Credit: deugro

“WHILE IT SEEMED IMPOSSIBLE AT FIRST, A PROJECT CAN BE MANAGED REMOTELY IF YOU HAVE THE RIGHT PEOPLE ON THE GROUND”

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

FELBERMAYR TRANSPORTS MAMMOTH TUNNEL BORING MACHINES

Heavy transport equipment specialist Felbermayr has transported two gargantuan tunnel boring machines for the construction of Europe’s 55-kilometer-long Brenner Base Tunnel, the world’s longest underground rail corridor.

The machine components weighing up to 270-tonnes a piece were carried along a six-kilometer stretch from a temporary construction site south and above Innsbruck through steep and narrow tunnels to the assembly caverns. Felbermayr described the stretch as “tough-going,” with a gradient of up to 12 percent along half the route and wet mountain tracks that made traction difficult.

“We used the self-propelled modular units from Scheuerle with six, ten or twelve axles for these transports; twelve were used for the largest piece weighing

270 tonnes each for the two drives with a diameter of 7.8 meters,” project manager Markus Meusburger said.

“With a total weight of almost 300 tonnes and the steep gradient, we reached the mathematical limit of the brakes, so to safely carry out these transports nonetheless, we used a fouraxle heavy-duty tractor as an additional braking vehicle. It took us roughly three hours to cover the first three kilometers with the steep gradient, and five hours to complete the entire route.”

Transporting some 30 shipments per tunnel boring machine entailed passing narrow branches, whereby “maneuvering with centimeter precision was necessary in these areas, and that was probably the greatest challenge,” Meusburger said.

“Parts of the so-called trailer are 15 meters long, four meters wide and

four meters high. Because it was very narrow towards the tunnel ceiling, one employee spent five hours sitting on the load in order to precisely instruct his colleague, who was driving the self-propelled unit,” the manager said.

Once inside the assembly cavern, the individual parts were brought into position by Felbermayr’s Engineered Solutions division using a 1,000-tonne lifting frame. The parts – which included a 250-tonne drill head with a diameter of 10.7 meters – were then gradually assembled into a large complete unit in the assembly cavern.

Once built, each of the tunnel boring machines weighed an “almost unimaginable” 2,000 tonnes complete with the trailer, Felbermayr said.

Felbermayr had also been awarded the delivery contract for the project.

“From the manufacturer Herrenknecht in Schwanau, BadenWürttemberg, 97 road transports were required for a tunnel boring machine alone, and a further 30 for the trailer produced in Slovakia,” Meusburger said.

Felbermayr is based in Austria and boasts 77 sites in 18 European countries. The company specializes in heavy transport, mobile crane and working platform rental, heavy-lift handling as well as civil engineering and building construction activities.

Felbermayr recently took over Bulgarian crane rental firm, Maritza, a move designed to strengthen Felbermayr’s position in southeast Europe and allow it to start renting out working platforms in Bulgaria.

Credit: Felbermayr

EXXONMOBIL INKS CCS DEAL WITH US STEEL MAKER

ExxonMobil has signed a carbon capture and storage, or CSS, agreement with Nucor Cooperation, one of North America’s largest steel producers.

The deal calls on the U.S. energy major to design, permit, install and operate facilities to capture up to 800,000 tonnes per year of CO 2 from Nucor’s manufacturing site in Convent, Louisiana.

The plant produces direct reduced iron, a raw material used to make high-quality steel products such as automobiles, appliances and heavy equipment. The CCS project with Nucor is led by ExxonMobil’s Low Carbon Solutions business and is slated to start up in mid-2026.

The project supports Louisiana’s 2050 net zero emissions targets.

“Our agreement with Nucor is the latest example of how our Low Carbon Solutions business is scaling up CCS to help reduce emissions from steel and other hard-to-decarbonize industries,

which currently account for about 80 percent of global energy-related CO 2 emissions,” ExxonMobil said.

“It’s also a milestone for our Low Carbon Solutions business: It brings the total amount of CO 2 we’ve agreed to transport and store for our CCS customers to more than 5 million tonnes a year – equivalent to replacing approximately 2 million gasoline-powered cars with EVs.”

ExxonMobil has already inked CCS agreements this year with industrial gases company Linde and fertilizer producer CF Industries.

Breakbulk Opportunity

CCS is tipped to be a major source of cargo-carrying opportunities for breakbulk and project cargo in the coming years. The technique is deployed in power plants and other industrial facilities to trap and compress CO 2 before transporting it to special sites for underground or subsea storage. Large-scale CCS projects such

as Convent will require breakbulk support to carry and position pipelines, storage tanks, giant compressors, processing equipment, ship-handling facilities and other oversized components. According to the London-based Energy Industries Council, or EIC, more than 200 carbon capture developments have been announced since 2020. The U.S. boasts the highest number of projects, followed by the UK, Australia, Norway, the Netherlands and Indonesia.

Global spending on new projects scheduled for start-up before 2026 is estimated at US$48 billion, the EIC said.

ExxonMobil is a member of the Breakbulk Global Shipper Network , an extensive 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.

Credit: ExxonMobil

BOLLORÉ HOOKS UP WITH FLYING WHALES

Bolloré Logistics has signed a memorandum of understanding with France-headquartered aeronautics company Flying Whales to use its LCA6OT airship for the transport of abnormal loads.

The MoU was inked at this year’s Breakbulk Europe event in Rotterdam.

The LCA6OT is a 200-meter-long hybrid-electric airship that will be deployed to lift and transport up to 60 tonnes of cargo. The first of the fleet will leave the production line by the end of 2025, with operations slated to start in late 2026, early 2027, once certification has been obtained.

Bolloré said the “game-changing solution” would give customers a wider range of more sustainable transport options. The forwarder, also headquartered in France, has pledged to cut carbon emissions as part of its CSR program “Powering Sustainable Logistics,” launched in 2018.

“We are particularly proud of this agreement with Flying Whales,” said Philippe Lejeune, energy and projects director at Bolloré Logistics Europe. “Deliveries by LCA60T will enable us to provide our customers with an extensive choice of vehicles in order to decarbonize the transport of the goods they entrust us with.”

Speaking to Breakbulk, Habiba Idiri, sales manager at Flying Whales, said its airship concept, which is in its final engineering phase, would transform the way breakbulk and project cargo were delivered. The company is aiming to have 160 units in operation by 2033.

Idiri said a key advantage of the LCA60T was its ability to load and unload while remaining airborne, meaning it could be deployed to deliver to remote and hard-to-reach locations such as mountain tops or disaster zones.

“We do not land to load the cargo, which allows us to reach remote places with no or very poor infrastructure,” Idiri said. “If

we take the wind industry as an example, the blades require a lot of modifications of the road and a lot of handling by the blade lifter, which add to the project’s footprint. Whereas our concept will pick the blade up from a port or other site and deliver directly to the wind farm.”

In addition to energy and construction industries, the airship could also be deployed in humanitarian and disaster relief. “We can provide a response to supply logistics and other cargo currently

carried by helicopter, boat or plane.” The airship, which is expected to run on a fully-electric system by 2028, will be produced in France at Flying Whales’ manufacturing facility in Gironde, as well as at sites in Quebec and in the Asia-Pacific region. Bolloré Logistics is an exhibitor at Breakbulk events. The next event in the calendar is Breakbulk Americas 2023 on September 26-28 at the George R. Brown Conference Center in Houston, Texas. Registration for the event is now open

Mock-up of the LCA6OT airship delivering blades to an onshore wind farm. Credit: Flying Whales

Opportunities

PROJECTS IN THIS ISSUE

Project: Yacyreta Hydroelectric Plant (page 20)

Country: Argentina

Sector: Hydropower

Developer: Entidad Binacional Yacyreta

Project: Sergipe Deepwater Project, or SEAP (page 26)

Country: Brazil

Sector: Oil & Gas

Developer: Petrobras

Project: Ciudad Dorada Biofuels Plant (page 28)

Country: Panama

Sector: Biofuels

Developer: SGP BioEnergy

Project: Costa Norte LNG Regasification Terminal (page 29)

Country: Panama

Sector: Liquified natural gas

Developer: AES Colon

Project: San Marcos Wind Farm (page 31)

Country: Honduras

Sector: Renewables

Developer: Total Eren

Project: Port of San Lorenzo modernization project (page 31)

Country: Honduras

Sector: Ports and Terminals

Developer: China Harbor Engineering Company

Project: Panama Metro Line 3 construction project (page 31)

Country: Panama

Sector: Infrastructure

Developer: State-led

Project: Belize II Bridge construction project (page 31)

Country: Guatemala

Sector: Infrastructure

Developer: state-led

Project: Silver Peak Mine (page 35)

Country: U.S.

Sector: Lithium

Developer: Albemarle Corp.

Project: Thacker Pass (page 35)

Country: U.S.

Sector: Lithium

Developer: GM / Lithium Americas

Project: Qana natural gas exploration project (page 52)

Country: Lebanon

Sector: Oil & Gas

Developer: TotalEnergies / Eni

Project: Lubiatowo-Kopalino Nuclear Power Plant (page 60)

Country: Poland

Sector: Nuclear Power

Developer: Polskie Elektrownie Jadrowe

Project: Anhui Jinzhai pumped storage plant (page 84)

Country: China

Sector: Pumped storage hydropower

Developer: Anhui Jinzhai Pumped Storage Power

Project: Long Son A1 Olefins Plant (page 86)

Country: Vietnam

Sector: Petrochemicals

Developer: Long Son Petrochemicals

Project: Nucor Steel CSS project (page 91)

Country: U.S.

Sector: Carbon capture and storage

Developer: ExxonMobil