Issue 6 2023
WOMEN IN BREAKBULK UNITE Challenging Unconscious Workplace Bias
Industry Anxious About People Pipeline for 2024 and Beyond Inflation Squeeze Delays Projects New Era in Carbon Accountability NEOM Construction Ramps Up North Africa’s Hydrogen Pathway Potential
Credit: Mammoet
Credit: David Brown
Inside this Issue
78
Cover Story
Challenging Unconscious Workplace Bias
Industry Urged to Address Implicit Prejudice
23 24 Middle East New Era of Manufacturing and Logistics Emerges
44 Global Outlook 2024 Projects Drive, but Talent Dearth
30 Middle East NEOM Construction Activity Ramps Up
50 Global Outlook 2024 Outlook 2024 Breakbulk Survey
Middle East Takes Up Fabrication Mantle
Mark Your Calendars for Upcoming Breakbulk Events Breakbulk Middle East 12-13 February 2024 Dubai World Trade Centre, UAE Breakbulk Europe 21-23 May 2024 Rotterdam Ahoy, Netherlands Breakbulk Americas 15-17 October 2024 George R. Brown Convention Center, U.S.
Saudi’s Record-breaking Development Roars Ahead
US$192 Billion in Capex Committed to Nearly 100 Projects
56 Global Inflation Squeezes Margins, Delays Projects
New Reality Forcing Contract Rethinks
36 Middle East North Africa’s Hydrogen Pathway Potential
Green Fuel to Catalyze Project Demand
40 Middle East Navigating Seas of Innovation and Connectivity
P&OML’s Martin Helweg Relishes Daily Opportunities for Learning
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52 Global Mix-n-Match for Air Cargo Move Logisticians Optimize and Synchronize Equipment to Handle Loads
34 Middle East UAE: ‘Hotbed of Project Opportunity’’
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Industry Anxious About People Pipeline for 2024 and Beyond
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62 Global Support for Zero Emission Drive
Heavy-lift Equipment Stepping Up to Climate Challenge
Credit: UHL
Inside this Issue
68 74
70
Also in this Issue 06
Foreword
09
UpFront
93
Best Of BreakbulkONE
96
Projects in This Issue
66 Global Second Time’s a Charm
82 Breakbulk Americas Recap
Degradation of Bridges Calls for New Thinking
70 Europe New Era in Carbon Accountability MPVs Ready Themselves for EU Emissions Trading
73 Europe Who Is Going to Bite EU ETS Bullet? Surcharges Will Put Strain on Breakbulk Relationships
74 Americas Harnessing Offshore Wind to Reshape US Energy Landscape Nearly 100 Vessels Needed to Meet Project Pipeline
78 Americas Challenging Unconscious Workplace Bias
Industry Urged to Address Implicit Prejudice
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84 Stories That Broke at Breakbulk Americas 89 Breakbulk Americas Students Set Forward Breakbulk Agenda
BBAM-hosted Inaugural Poster Competition Drives Innovation
MOVING THE FUTURE Efficient, trusted and flexible shipping solutions for global industrial projects.
chartering@swireprojects.com
www.swireprojects.com A division of Swire Shipping, a private and wholly owned company of John Swire & Sons.
Foreword
A SEASON FOR OPTIMISM The end of the year feels like it’s coming on like a runaway train – 2024 will be here before we know it. Let’s take a minute to celebrate some of the Leslie Meredith great things that happened at Breakbulk Events & Media this year before we turn our sights to what we might expect next year. If anyone had concerns around a lasting effect from the pandemic on event attendance, this year’s turnout set new records for each of the events. Breakbulk Middle East nearly doubled in size, Breakbulk Europe broke the 10,000-attendee barrier while Breakbulk Americas easily passed 5,000 attendees. We built stronger support for our exhibitors, sponsors, shippers and speakers by leveraging Breakbulk media products. The new UpFront section in the magazine included AMAs (Ask Me Anything) from speakers to help spark Q&A sessions following Main Stage panels, new exhibitor Q&As, conversations with companies from key sectors like ports, more executive profiles and thought leader pieces, networking advice from industry notables, and as many photos of people as possible to make recognizing faces at the events easier. LinkedIn became our social media platform of choice because that’s where you are. Stories from our weekly news, the magazine and from event interviews are posted to LinkedIn to give companies maximum exposure. In fact, Breakbulk posts were seen 890,566 times since the start of January. The top three posts,
Marketing and Editorial Director Leslie Meredith leslie.meredith@breakbulk.com
based on impressions, were an EPC interview at Breakbulk Europe with Alex Azparrent, director of supply chain for mining and metals at Fluor Corporation, and exhibitor interviews at Breakbulk Middle East with Steffen Behrens, president Middle East at deugro and Nasser Al Qadi, commercial director Industrial Projects at DHL Global Forwarding Saudi Arabia. See 25 top posts at https://breakbulk.com/page/top25-linkedin-posts-from-2023. For this issue, our focus is on the future. We conducted a survey to take the pulse of the industry and were delighted to learn that the majority of respondents are optimistic about the 2024 project market – they expect more project cargo contracts and more tenders for new projects. See page 50 for the full results. And don’t miss the Outlook feature story on page 44. With Breakbulk Middle East the first event in the new year, this issue has a robust Middle East editorial section including “UAE: ‘A Hotbed of Project Opportunity’” and a look into what could be the most buzzworthy project in decades: the US$500 billion NEOM development in Saudi Arabia. This section starts on page 23. But not everything on the horizon is rosy. In “Inflation Squeeze Delays Projects” we take a deep dive into the economic factors affecting project approvals. Spiraling costs on contracts agreed some years back are causing acute pain, resulting in delays and cancellations. There may be only one way forward. Read it on page 56. Still, you’ll find plenty of reasons for optimism inside. With best wishes for a festive holiday season and a happy new year, Leslie Meredith, Marketing & Editorial Director
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News Editor
Carly Fields carly.fields@breakbulk.com
Senior Reporter
Simon West simon.west@breakbulk.com
Designer Mark Clubb
Reporters
Jeremy Bowden Felicity Landon Heba Hashem Malcolm Ramsay Liesl Venter
Breakbulk Editorial Advisory Board John Amos, emeritus Amos Logistics
Dennis Devlin Maersk Project Logistics 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
Port Houston City Docks
Delivering what your customers need.
www.porthouston.com
Inside this Issue
The following Breakbulk exhibitors, sponsors and members of the Global Breakbulk Shipper Network are featured in this issue: New Era in Carbon Accountability page 68 DHL Industrial Projects - Global Event Partner WISTA International - Association Partner
Movers & Shakers page 14 Combi Lift - Exhibitor Chapman Freeborn – Exhibitor dship Carriers – Sponsor Geodis – Exhibitor Maersk Supply Service - Global Event Partner Port of Corpus Christi – Exhibitor Rio Tinto - Breakbulk Global Shipper Network Sallaum Lines- Exhibitor
Challenging Unconscious Workplace Bias page 79 Air Liquide - Breakbulk Global Shipper Network Air Products - Breakbulk Global Shipper Network APR Energy - Breakbulk Global Shipper Network Bechtel - Breakbulk Global Shipper Network dship Carriers – Sponsor Linde Engineering Americas - Breakbulk Global Shipper Network S&B Engineers and Constructors - Breakbulk Global Shipper Network
Pizza, Burgers, Christmas Trees as Project Cargo? Page 18 Fluor - Breakbulk Global Shipper Network New Era of Manufacturing and Logistics Emerges page 24 AAL Shipping (AAL) - Global Event Partner DB Schenker – Exhibitor DHL Global Forwarding - Global Event Partner
An Industry Tooling Up for Growth page 84 Bertling Logistics - Exhibitor Georgia-Pacific - Breakbulk Global Shipper Network Global Shippers Association - Breakbulk Global Shipper Network Mammoet – Global Event Partner Roll Group – Exhibitor
NEOM Construction Activity Ramps Up page 30 Kuehne+Nagel – Exhibitor Larsen & Toubro - Breakbulk Global Shipper Network UAE: ‘Hotbed of Project Opportunity’ page 34 Energy Industries Council (EIC) - Association Partner
Latin America’s Thriving Project Market page 85 DHL Global Forwarding Argentina- Global Event Partner FOX Brasil – Exhibitor Tradelossa – Exhibitor Valaris - Breakbulk Global Shipper Network
North Africa’s Hydrogen Pathway Potential page 38 DB Schenker – Exhibitor Maurilog – Exhibitor
Air Cargo Capacity Squeeze Endures page 86 deugro – Exhibitor National Air Cargo – Exhibitor
Global Outlook 2024 page 44 AAL Shipping (AAL) - Global Event Partner deugro – Exhibitor DHL Global Forwarding - Global Event Partner DP World - Global Port Partner dship Carriers – Sponsor Fagioli – Exhibitor thyssenkrupp - Breakbulk Global Shipper Network
Students Set Forward Breakbulk Agenda page 87 University of Houston - Education Partner The Winding Road to Decarbonization page 88 Swire Projects – Exhibitor US Maritime Administration (MARAD) - Exhibitor
Mix-n-Match Air Cargo Move page 50 Antonov Airlines – Exhibitor deugro – Exhibitor dteq – Exhibitor
Jumbo Handles TPS for Baltic Sea Wind Project page 94 Jumbo Offshore – Exhibitor SAL Heavy Lift - Exhibitor
Support for Zero Emission Drive page 60 Konecranes – Exhibitor Liebherr-MCCtec Rostock – Global Event Partner Second Time’s a Charm page 64 AAL Shipping (AAL) - Global Event Partner DB Schenker – Exhibitor
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INSIDE Breakbulk Americas – By The Numbers Look Who’s Talking About Breakbulk Americas Movers & Shakers New Faces at Breakbulk Middle East Throwback to the 1990s: Pizza, Burgers, Christmas Trees as Project Cargo? Holiday Gift Guide
Credit: TOTE Maritime
BREAKBULK AMERICAS BY THE NUMBERS 5,665 2406 261 90% Attendees
Companies
Exhibitors
(All-time Breakbulk Americas record and 19% increase over 2022)
7% increase over 2022
8% increase over 2022
Rebooked for 2024
BREAKBULK AMERICAS UNITES THE REGION’S PROJECT CARGO PROFESSIONALS
45
Canada
United States
Countries
Mexico
65
Dominican Republic Honduras Haiti Trinidad & Tobago Nicaragua Panama Costa Rica Venezuela Suriname Colombia Guyana
Guatemala
Ecuador Peru
Including: United States, Canada, Mexico, Brazil, Colombia, Chile, Argentina, Panama, Peru, Trinidad & Tobago, Ecuador, Guatemala, Dominican Republic, Guyana, Suriname, Haiti, Costa Rica, Nicaragua, Uruguay, Venezuela, Curaçao, Honduras
Chile
Uruguay Argentina
SHIPPERS THE DECISION-MAKERS EVERYONE WANTS TO MEET Breakbulk Global Shipper Network hosted
427
In total, Breakbulk Global Shipper Network members (14% increase over 2022)
248
Brazil
Companies (84% increase over 2022)
SHIPPERS WITH BIGGEST GROUPS AT BREAKBULK AMERICAS
Air Products • Baker Hughes • Bechtel Corp. • ChampionX • Chevron • Exiros • Fluor • Halliburton • KBR • Kiewit • Linde Engineering • McDermott • NOV • Siemens Energy • SLB • Toshiba Logistics America • Tricon Energy • Worley
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Top 10 US States Texas Florida California New Jersey Louisiana Georgia New York Illinois North Carolina Virginia
33 % Oil & Gas, Chemicals, Energy
21 % Manufacturer of Project Cargo
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of 50 US states represented
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31 %
BY SECTOR
EPC (Engineering, Procurement & Construction)
12 % Mining & Metals
TOP SECTORS
THE RIGHT AUDIENCE FOR NEW BUSINESS
27 % Freight Forwarder 20 % Maritime Transport Road Transport 15 % Ports & Terminals 12 % Industry-related Services 10 % TOP JOB FUNCTIONS 4 % Equipment 23 % Sales/Marketing 12 % Logistics Management 12 % Logistics 11 % Corporate Management 9 % Operations Management
Watch the official Breakbulk Americas 2023 video. www.youtube.com/watch?v=r7R-vptCuQA
BUYING POWER 37 % Final decision-maker 36 % Recommend/Specify
NEW+RETURNING
34 % First-time 16 % 6-10 times 34 % 2-5 times 16 % 10+ times
WHAT HAPPENS AT BREAKBULK REACHES THE WORLD TOP INTERVIEWS
Women in Breakbulk: Behind the Scenes with Sandra Guadarrama Sandra Guadarrama, Senior Project Logistics Manager, Linde Engineering
DHL CEO Perspective: “It’s All About People”
Roll Group’s Criteria for Global Business Expansion
Ryan Foley, CEO, DHL Global Forwarding
Edward Talbot, Managing Director, Roll Group
Intermarine to Go Global Lars Rasmussen, Chief Operating Officer, Intermarine
US Offshore Wind to Drive Billions in Investment Melanie Kenderdine, Principal – Vice President, Energy Futures Initiative
JOIN 16,000+ AND FOLLOW BREAKBULK EVENTS & MEDIA ON LINKEDIN FOR ALL THE LATEST NEWS NEW for 2023
INCOTERMS RULES & TRADE WORKSHOP
20
participants
28%
CHARTERING WORKSHOP
MAIN STAGE SESSIONS
In partnership with the Institute of Chartered Shipbrokers
Sponsored by DHL Industrial Projects
34
50 12
participants
Breakbulk Global Shipper Network Members
speakers
sessions
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EDUCATION DAY
177
students from eight schools participated
Schools included: Alvin Community College • Houston Tours Led by Community College • Inha University Korea • Lone Star College San Jacinto College • Texas A&M • Texas Southern University • University of Houston
LOOK WHO’S TALKING ABOUT BREAKBULK AMERICAS Murilo Caldana
Project Director FOX Brasil Exhibitor and Speaker “I would like to extend my congratulations to the Breakbulk Events & Media organization for orchestrating such a successful event. The opportunity to network and exchange ideas was truly invaluable.”
Therrance Chretien
Director of Cargo and Trade Development Port of Lake Charles Exhibitor “It’s simple for us. We’re a breakbulk port. We don’t do containers. This is the largest breakbulk conference in the United States, and the reason we exhibit is because we’re always looking for cargo opportunities. We’re Southwest Louisiana’s only deepwater port that’s not on the Mississippi River, so we don’t want to be overlooked. Visibility is important to us, and this gives us the opportunity to meet potential clients that may not know we exist without getting to connect in person. That’s so valuable.”
Kristin Morgan
Marketing Manager Ascent Logistics Exhibitor “We’ve had such a tremendous opportunity to connect and meet and onboard some really, really quality providers that we weren’t aware of here at Breakbulk, and we’re really happy with how things have gone.”
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Francisco Herrejon
Commercial Management Cordstrap Exhibitor and Sponsor “First, we find many of our current customers here. This event helps us to meet and greet here instead of in many different places and many different countries. Second, Breakbulk helps us generate invaluable leads for our business. Third is branding, because we get such great exposure and that helps us increase global awareness of what we do and how we can help you as a new or existing customer.”
Ryan Clancy
Area Head of Growth, Canada Maersk Project Logistics Sponsor “As a networking opportunity, Breakbulk is hard to beat. As well as catching up with everybody, I found that some of the conference sessions were particularly good this year.”
John Hark
Regional Director, North America Bertling Logistics Exhibitor and Speaker “Every year we see the value in being exhibitors. Having our stand, and having our name out there helps us meet people more than if we were just attendees.”
Jake Swanson
Regional Vice President – Americas Operations, Industrial Projects DHL Global Forwarding Exhibitor, Speaker and Sponsor “Breakbulk is a great opportunity to get together as an organization. My favorite part of the event is the networking!” 13 Breakbulk Magazine
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MOVERS AND SHAKERS
Rio Tinto
Jerome Pecresse
Highlighting Recent Industry Hires, Promotions and Departures
“Jerome brings a wealth of experience across renewable energy, mining, business development and strategy, ideal for shaping our industry-leading aluminum business for a lowcarbon future,” said Jakob Stausholm, CEO of Rio Tinto. Rio Tinto 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. Visit: https://breakbulk.com/page/bgsn
Sallaum Lines
Malfrid Lundell
Switzerland-based roll-on, roll-off specialist Sallaum Lines has named Malfrid Lundell as its new head of strategy and business development. Lundell, who has previously held executive positions with Wallenius Wilhelmsen, EUKOR and UECC, will focus on corporate strategies, business opportunities and partnerships, market analysis and stakeholder engagement.
dship Carriers
“Malfrid Lundell brings a distinguished career pedigree. Her depth of knowledge, acquired over years of handson experience, positions her to be an instrumental force in our strategic direction,” Sallaum Lines said.
GEODIS
Xavier Avrard
Dea Chincuanco
Xavier Avrard has been appointed chief strategy officer at GEODIS. The executive will lead the global logistics provider’s new group strategy department, set up to oversee strategy, mergers and acquisitions, post-merger integration and the monitoring of the group’s strategic investments and developments.
Dea Chincuanco has begun her new role as president of dship Carriers Americas, based in Houston. Chincuanco joined the Hamburg-headquartered heavy-lift specialist in January 2022, serving as the company’s assistant vice president for commercial and chartering, North America, before her switch to vice president of strategy and commercial management at the beginning of this year.
A passionate advocate for diversity, equality and inclusion, Chincuanco is a key member of Breakbulk’s Women in Breakbulk networking platform. At Breakbulk Americas 2023, she headed a nine-strong advisory council of female professionals established to shape the content of this year’s dship-sponsored Women in Breakbulk breakfast and main stage panel session in Houston. Visit: https://youtu.be/nlsfxBzRNkI?si=UXIIVcFPNveyihcU
Red Sea Gateway Terminal
Avrard joined GEODIS in 2014 as group controller. After contributing to the acquisition of OHL in 2015, he was named managing director for project logistics, initially for Africa and then for Western Europe, Middle East and Africa region. Prior to his latest role, the executive headed up strategic development for the operator’s Europe region, a stint that included the successful integration of trans-oflex, a logistics provider recently acquired by GEODIS. Lars Greiner
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Anglo-Australian mining company Rio Tinto has chosen Jerome Pecresse to lead its aluminum business, succeeding Ivan Vella. In his threedecade career, Pecresse has enjoyed senior leadership roles in several mining and energy companies. Prior to Rio Tinto, the executive was president and CEO of GE Renewable Energy.
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Middle East and Africa expert Lars Greiner has moved to Saudi Arabia, taking on the role of managing director for multipurpose business at the Red Sea Gateway Terminal (RSGT). Greiner, a regular speaker at Breakbulk events, has more than 30 years of experience in the shipping and transport industry, managing and running
Maersk Supply Service
multicultural, diverse offices in developed and developing countries. Prior to RSGT, the executive had been associate partner for the MEA region at Hamburg Port Consulting.
Michael Reimer Mortensen has joined Maersk Supply Service as chief commercial officer, replacing Jonas Munch Agerskov, who has transitioned to a newly created role of executive vice president of offshore wind.
Part of the Jeddah Islamic Port, the RSGT was established in 2009 as Saudi Arabia’s first private sector build-operatetransfer project. The terminal has a current annual container throughput capacity of 5.2 million twenty-equivalentunits. “I am extremely proud and excited to be joining this dynamic company with an amazing team,” Greiner said.
“Michael brings over 20 years of experience in the maritime services industry, most of which came from Combi Lift within the Maersk family,” said Christian Ingerslev, CEO at Breakbulk specialist Combi Lift, part of Maersk Supply Service. “His experience will help our offshore the Bremen-headquartered Harren Group, support vessel business build closer bonds to our customers has hired Esmeralda Smith-Garcia as and increase synergies in our key markets. This will help senior director for business development. improve the profitability of Maersk Supply Service.” The executive, based in Houston, boasts more than two decades of experience Agerskov, meanwhile, will assume full responsibility for Maersk in project cargo and logistics solutions, Supply Service’s offshore wind business. The Danish marine enjoying spells with Agility, GEODIS, Hansa services company announced in August it would be focusing Esmeralda Meyer, Weco RoRo and, most recently, DB on two core markets: offshore wind and offshore support Smith-Garcia Schenker. Smith-Garcia is also a speaker vessels. “Building on our current strong position, we will at Breakbulk events, participating in this year’s Breakbulk create value for our customers and together secure energy Americas Education Day on a “Breakbulk Career Opportunities” supply and support the energy transition,” Ingerslev said. panel session in front of a packed hall of students and young professionals. Chapman Freeborn Visit: https://youtu.be/Galt3v3FrMs?si=iOd3kY94JCmIPN11 Global air charter specialist Chapman Freeborn has appointed Jack Burt as Port of Corpus Christi senior vice president of cargo for the The Port of Corpus Christi in Texas has Americas. The executive’s responsibilities stuck with a familiar face and selected will include developing innovative new Kent Britton as its new permanent CEO. business and market growth strategies Britton had served as the port’s CFO for the region and ensuring clients are since April 2019 and as interim CEO matched with the most suitable aircraft Jack Burt since June following the resignation of type to meet their air cargo requirements. his predecessor, Sean Strawbridge. Based out of Fort Lauderdale, Florida, Burt rejoins Chapman Kent Britton Prior to joining Corpus Christi in Freeborn after previously serving as the company’s senior 2017 as financial controller, Britton cargo charter broker from 2012 to 2016. He has also enjoyed worked as CFO for the Glencore-owned Sherwin Alumina executive stints at Lift Management, AirX and Air Partner. Company. He has also enjoyed executive stints at aluminum company Alcoa and software provider Blackbaud. “Having had the privilege of working with the Chapman Freeborn team before, it’s an honor to return as senior VP “The Port of Corpus Christi is an incredible asset to the Coastal of cargo for the Americas, especially at such a dynamic Bend region, and I am honored to continue its stewardship with time for the company,” Burt said. “I very much look forward the support of our world-class leadership team,” Britton said. to taking Chapman Freeborn America’s team to new “As the global energy industry evolves in response to massive heights by solidifying ourselves as the most competitive, demand and rapidly advancing technologies, the ability to unmatched air cargo charter service in the world.” move fuels and chemicals safely and efficiently from Texas to destinations around the world will continue playing a makeor-break role in the creation of jobs and prosperity across the Coastal Bend region. The sky is the limit for our customers and this community, and we’re excited to be partners in that growth.” Michael Reimer Mortensen
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NEW FACES AT BREAKBULK MIDDLE EAST 2024 Get to know more new exhibitors at Breakbulk Middle East 2024 Logiswift
Greatkun Supply Chain Management
Kaan Boranalp, Marketing Director, Stand N40 United Arab Emirates Industry-related Services
Dylan Shen Middle East General Manager, Stand G02 China Freight Forwarder
What is the most interesting thing about your business? Logiswift offers a variety of unique products that are designed for serving the logistics industry. The interesting thing about our business it that we are one of few companies in the market with a team of industry experts who come from different fields of logistics and who understand how to build robust software solutions that meet the industry requirements. We combine our field proven expertise with the technology requirements of today’s digital world.
What is the most interesting thing about your business? Project cargo differs significantly from general shipments. I believe that we need to pay closer attention to it and be more connected with our clients. One of the most interesting aspects of our business, in my opinion, is that we sometimes read in the news that the breakbulk we delivered has started operating. It could be a rotating blade in the air, a train speeding on the track, or a component running in a factory. We feel very excited and proud, and we love to share this news with our company group.
What made your company want to exhibit at Breakbulk Middle East? Our HQ is located in Dubai. Therefore, we wanted to leverage our presence in the region and the potential networking opportunities that come with participating in Breakbulk Middle East.
What made your company want to exhibit at Breakbulk Middle East? There are three main reasons why attending Breakbulk Middle East is an opportunity that should not be missed. Firstly, the Middle East region is experiencing rapid growth, and the relationship between China and the Middle East is becoming stronger. Attending Breakbulk Middle East will help us stay updated on the latest developments in the Middle Eastern market and establish closer partnerships with businesses in the region. Secondly, having a strong international presence is crucial for our clients, especially in this ever-changing world. Participating in Breakbulk Middle East will enable us to expand our overseas business, enhance our influence and competitiveness in the Middle East region. Thirdly, after the Covid-19 pandemic, there is a strong desire to explore more opportunities abroad. Attending Breakbulk Middle East will provide us with a platform to network and collaborate with professionals from around the world, opening up new business prospects.
What is your company’s outlook on project opportunities in the Middle East at the moment? We are one of the fastest growing SaaS companies in the region in the supply chain space. We are currently serving various clients in UAE. Since we have a client base consisting of industry leading project freight forwarders and EPC companies, many of the mega projects in the region, such as Mohammed Bin Rashid Solar Park, has direct experience of our software solutions to manage the challenges of those highly complex logistical operations. We are looking forward to expanding our client base throughout the region and growing in other continents where we have offices and clients such as Europe and North America.
What is your company’s outlook on project opportunities in the Middle East at the moment? There are several main sectors that offer promising opportunities, including infrastructure, oil, new energy, mining, and more. All of these sectors are currently experiencing growth in the Middle East.
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Sea Bridge Shipping Management
What is your company’s outlook on project opportunities in the Middle East at the moment? We are both excited and nervous about project opportunities in Middle East as we will be facing new challenges. In terms of the current relationship between Asia and Europe and Middle East, we believe that there is still a lot of potential for project development in Middle East, and we are committed to doing our best in this regard. Certainly, we will observe the premise of environmental and ecological sustainability and make our shipping solutions for Middle East projects to our satisfaction.
Cathy Li, Americas Operations Executive Stand E56 China Maritime Transport
What is the most interesting thing about your business? We are passionate about breakbulk shipping and stowage solutions, because there are many different types of breakbulk and each shipment has its own unique loading requirements; we are always taking on different “challenges” to find a solution that meets all the requirements of the shipment, and of course it is these challenges that make us progress.
New Exhibitors by Industry Sector Freight Forwarder 45% Equipment 14%
What made your company want to exhibit at Breakbulk Middle East? Sea Bridge Shipping (SBS) has been operating mainly in the U.S. Gulf Coast region, but now we want to try to develop the Middle East and European breakbulk shipping as well. As a fresher, attending Breakbulk Europe is a great opportunity to meet and be mentored by senior members of the industry, and to introduce the Middle East and European market to Sea Bridge.
Maritime Transport 14% Industry-related Services 18% IT 9%
NEW EXHIBITORS AT BREAKBULK MIDDLE EAST 2024 Company name
Country
Sector
C25
India
IT
All Seas Shipping Agency Tunisia
H41
Tunisia
Freight Forwarder
Atlas Dunnage Ambalaj San.ve Ti̇ c.a.ş.
H52
Türkiye
Equipment
Auxin Shipping Pvt Ltd
D49
India
Freight Forwarder
Barri Logistics Services Co.
D30
Saudi Arabia
Freight Forwarder
Container Hub
G03
United Arab Emirates
Equipment
Deugro Emirates Shipping Llc
H30
United Arab Emirates
Maritime Transport
Fracht Group
M30
United Arab Emirates
Freight Forwarder
Greatkun Supply Chain Management
G02
China
Freight Forarder
Haitun Container Lines
A11
United Arab Emirates
Equipment
Hanson Carriers Pte Ltd
J40
China
Freight Forwarder
Intels Nigeria Ltd. & Enhils Mozambique
L23
Nigeria
Industry-Related Services
Logiswift Dwc Llc
N40
United Arab Emirates
Industry-Related Services
Nautica Line Cargo & Shipping
E45
United Arab Emirates
Freight Forwarder
Neptune Container Line & Logistics Pvt Ltd
D60
India
Freight Forwarder
Nfident
M34
United Arab Emirates
Industry-Related Services
Ocean Network Express L.l.c
C30
United Arab Emirates
Maritime Transport
Sea Bridge Shipping Management Co.,Limited
E56
China
Maritime Transport
Tii Sales
B03
Germany
Industry-Related Services
Titan
M02
Türkiye
Freight Forwarder
Varamar
E30
United Arab Emirates
IT
Zajel Courier Company
B35
United Arab Emirates
Freight Forwarder
Admaren Tech Private Limited
Stand number
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Throwback to the 1990s
PIZZA, BURGERS, CHRISTMAS TREES AS PROJECT CARGO? It’s Not Just Industrial Cargo That is Needed at Job Sites
For air transport we utilized Emery Worldwide DC-8s out of Charlotte, North Carolina. The departure date was determined once we accumulated 50 tons of urgent cargo in Charlotte. The breakbulk vessels and aircraft charters departed approximately once a month over a two-year period. I was present for the loadout of each vessel and aircraft. This gave jobsite personnel the opportunity to provide me with a shopping list for each voyage and flight.
By Brent Phelps Who said project cargo was only about modules, turbines, transformers, pipe, valves, structural steel, etc.? What if I told you project cargo also consisted of pizza, ice cream, Christmas trees and more—would you believe it? Well, it’s true. These are some of the items that routinely shipped on our breakbulk vessels and aircraft charters while working for a U.S.-based engineering, procurement and construction contractor. I was the project logistics manager for an liquefied natural gas plant being constructed in Algeria during the 1990s. The country was facing a civil war between the government and Islamic extremists. I was stateside but our team at the jobsite was forced into lock down, and not the Covid-19 type. They could not leave the camp or jobsite. So, what do you do when you need a pizza delivered or to celebrate a holiday? Call the logistics guy in the States! USAID was providing assistance to the project, so the material had to be sourced in the U.S. and transport had to be through U.S. carriers. For ocean transport we chose Lykes Lines and utilized the Port of Charleston. Our breakbulk material was consolidated at our export packer in Charleston where it was export packed and sent to the port. Material that was already export packed was sent directly to the Port of Charleston’s Columbus Street Terminal. The call forward on the vessel was determined when we accumulated the necessary freight revenue tons for an inducement into the Algerian Port of Oran.
Growing List of Requests
The shopping list began rather innocently with a simple request for a weightlifting magazine when I was loading out our first breakbulk vessel. I provided the magazine to the chief complete with instructions to hand it over to our personnel at the offloading port. Soon word spread at the jobsite. For the next vessel I received a list with the employees’ names and what they were requesting. Requests included food items, clothing, toiletries, more magazines and anything else the folks could not get at the jobsite with the lockdown. The list would get longer and longer to the point when I would soon be scheduling a full day just for shopping. Thanksgiving was approaching and the jobsite had an idea on how to coordinate the dinner. They needed all the fixings for a feast. Simple enough, just put it on our aircraft charter, including the gravy. The Thanksgiving dinner success led to Santa’s list the next month. Christmas trees, lights, decorations, candy and you guessed it, more food, were loaded on pallets and included on the aircraft’s manifest. Then it finally came, the pizza request. “Can you get some pizzas and throw them on the plane, we only need 25?” Little did I know this would lead to the monthly fast-food requests for the remaining aircraft charters. One month it would be McDonalds, the next Burger King, KFC and so on. Luckily, they never requested Taco Bell - I don’t think a taco supreme would hold up very well for the long journey to jobsite.
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“OVER THE TWO-YEAR SPAN OF THE PROJECT, I THINK I WAS THE MOST POPULAR GUY AT THE JOBSITE EVEN THOUGH I DIDN’T PHYSICALLY WORK THERE.”
Missed previous Breakbulk throwback cases? Catch up here: breakbulk.com/articles/complex-logistics-for-italian-mexico-us-move breakbulk.com/articles/breakbulk-throwback-basic-logistics
Then a logistics study/plan was needed for shipping fast food to Algeria. It included sourcing ice, how much, coolers with specific dimensions, and timing the food pick-up to coordinate with the aircraft departure. Luckily the catered food for the crew on the plane’s journey was a step up from the fast food so we were never short of a burger. Who wants to be the guy at a jobsite without a burger?
Oh wait, what about the ice cream? Well, I would hand it over to the chief mate and he would put it in the vessel’s freezer in the galley. I was always told: “We never received the cookie dough ice cream,” – I’m sure the vessel’s crew enjoyed it somewhere on the Atlantic. So now you know the most important delivery to a jobsite may not be that 100-ton transformer the project manager is screaming for; it might just be an extra-large pepperoni pizza.
Mystery of Missing Ice Cream
Over the two-year span of the project, I think I was the most popular guy at the jobsite even though I didn’t physically work there. I also was able to hand deliver many of the items when I flew along with our aircraft charters. We flew out of Charlotte, refueled in Gander, Newfoundland, were on the ground in Algeria for a couple of hours and over to the Azores for a crew rest. I’ll save this for another story.
Brent Phelps has over 30 years of experience in the fields of logistics, contracts and supply chain management. He has worked on various mega projects for EPC contractors throughout North America, the Middle East, Europe and South America. He has managed project cargo for the oil and gas, mining and metals, power and infrastructure sectors. Brent Phelps is in project logistics and supply chain management for Fluor.
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2023 BREAKBULK HOLIDAY GIFT GUIDE Great gifts for your friends and family
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Papier Wellness Journal US$38 For the person who’s just getting into journaling, this wellness notebook comes with ideas for reflecting on their goals and habits. www.papier.com
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Jellycat Holiday Collection From US$12 These furry friends are the perfect stocking stuffer for kids. www.jellycat.com
Atlas Coffee Club Subscription Starting at US$60 For the caffeine lover in your life. A coffee of the month club that curates amazing micro-lot coffees from around the world. Tanzania, Kenya, Colombia & beyond. atlascoffeeclub.com
The Smart Garden 3 US$99.95 The Smart Garden 3 is an innovative indoor garden that cares for itself and grows fresh, flavourful herbs, fruits and vegetables for you. Experience all the benefits of having your own garden, no matter where you live. www.clickandgrow.com
Bright Cellars Wine Subscription Starting at US$55 After your loved one takes a short quiz about taste preferences, this subscription ships curated wine selections from around the world to their door. Plus, they can rate each bottle they receive, which helps the service better curate their future boxes. www.brightcellars.com
Solo Stove Mesa Tabletop Smokeless Fire Pit with Stand US$99 Sit around the fire with friends, without all of the smoke. Perfectly designed for backyard and urban settings, Mesa is the tabletop fire pit that brings warmth to the table. Weighing less than two lbs. It’s easy to set up and take down. www.amazon.com
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THE DESTINATION FOR NEW PROJECT CARGO BUSINESS
Dubai World Trade Centre
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MIDDLE EAST SPECIAL SECTION New Era of Manufacturing and Logistics Emerges NEOM Construction Activity Ramps Up UAE: ‘Hotbed of Project Opportunity’ North Africa’s Hydrogen Pathway Potential In Conversation: P&OML’s Martin Helweg on Navigating Seas of Innovation and Connectivity
Mammoet handles pipe rack modules for the world’s largest PDH plant at Saudi’s Jubail Industrial City. Credit: Mammoet
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NEW ERA OF MANU AND LOGISTICS EM
Credit: Mammoet
Middle East Takes Up Fabrication Mantle
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he Middle East is on the cusp of a transformative journey, shifting its economic landscape from oildependent revenues to a diversified and export-oriented economy. The goal is to use digital technologies to modernize
By Liesl Venter
and move beyond traditional processes, all while emphasizing local industry growth, particularly in manufacturing. “In recent years, the Middle East has witnessed a significant upsurge in fabrication activities, particularly
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in the context of the breakbulk and project industry,” said Sue Donoghue, Arab cluster CEO at DHL Global Forwarding. “This trend can be attributed to several factors. Firstly, the region’s strategic location has made
Middle East
UFACTURING ERGES
Region: Middle East Problem: A lack of fabrication facilities in the Middle East necessitate a dependency on international goods and services Solution: Regional governments are investing in fabrication expertise and infrastructure to reduce reliance on non-national supplies “Infrastructure development and global partnerships further amplify the need for specialized logistics in the breakbulk industry. Therefore, governments in the Middle East are actively investing in state-of-the-art fabrication facilities to bolster the region’s capacity to handle these complex projects. They also intend to develop local fabrication capabilities to reduce dependency on foreign talent and create job opportunities.”
Saudization Strategy
it a hub for major infrastructure and energy projects, leading to a growth in demand for fabrication services to meet project requirements.” The rise in fabrication also stems from an economic diversification
intent by the regional governments to reduce oil dependency. This shift could reshape economies in the Middle East and drive demand for breakbulk shipping, especially for diverse and oversized cargo.
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According to Rafael Vicens, managing director Iraq and head of global projects and industry solutions, Middle East & Africa at DB Schenker, Saudi Arabia has been at the forefront of this. In 2022, the Kingdom launched the Saudi Advanced Manufacturing Hub strategy focusing on three main priorities: helping people in the public, private, and academic sectors adapt to the changing industrial landscape, supporting small and medium-sized enterprises (SMEs) in their digital transformation journeys, and sharing technologies and best practices in alignment with the Global Network of Advanced Manufacturing hubs. “Much of this drive stems from continuous efforts to increase local content. Engineering, procurement, and construction companies, or EPCs, receiving projects are mandated to engage local manufacturers to produce or manufacture equipment required for a particular project,” Vicens explained. The Saudi strategy calls for building 59 logistics centers by 2030 with a total area exceeding 1 billion square feet as it
Middle East
Mammoet moved 15 pipe rack modules – measuring up to 46 m long, 33 m high and weighing up to 1,900 tonnes – from a fabrication facility in the UAE to Saudi Arabia. Credit: Mammoet
East to the U.S., Europe, and Africa. The fruits of Middle Eastern fabrication are being shipped worldwide at a much higher rate than ever before.” As a region, it is in a solid position to establish new fabrication facilities as it can use its geographical advantages between global markets. “In Europe, many manufacturing sites are located in the interior of countries, which start small and grow with success. If such businesses were to start fresh, it is unlikely they would choose to be located inland, as this makes shipping items quite a challenge. In the Middle East, fabrication yards have been and are being built in coastal locations - an ideal setup for global export,” Charnock said.
Manufacturing Powerhouse
sets out to become the global logistics hub for Asia, Europe and Africa. As it boosts manufacturing and nurtures the logistics service sector, the goal is to improve export strategies, widen investment prospects, and forge partnerships with private businesses. Saudi Arabia envisions that these completed centers will streamline the export of Saudi products and bolster e-commerce by enabling swift connections between logistics centers and distribution hubs across different regions, cities, and provinces. The United Arab Emirates has been punting manufacturing for some time already and is no stranger to exporting to its neighboring countries, said Colin
Charnock, group CEO at Trans Global Projects Group. “What we are now seeing increase is the frequency and volume of exports outside of the Middle
With a third of the world’s crude produced in the Middle East, the countries in the region heavily depend on oil to contribute to their GDP. However, the acceleration of the energy transition in recent years has caused substantial disruption in these countries, spurring governments to act in two areas: speeding up economic reforms to minimize reliance on oil and preparing for the post-oil situation through economic transformation activities. It makes sense that Gulf countries, including Saudi Arabia, the UAE, Qatar, Bahrain, and Oman, are establishing their strategies to become manufacturing hubs, said Karim Smaili, general manager Middle East, AAL Shipping.
Colin Charnock
Karim Smaili
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Aramco is establishing two offshore fabrication yards in collaboration with international partners. Credit: Aramco
“Countries like Saudi Arabia and the UAE are leveraging their oil and gas projects to boost manufacturing production,” he said. As part of its In-Kingdom Total Value Add (IKTVA) initiative to enhance the volume of goods and services produced in Saudi Arabia, Saudi Aramco signed 50 preliminary agreements with local and international companies, including Honeywell, Larsen & Toubro, and Sutherland Global Services, in 2022. Similarly, ADNOC is driving the charge in the UAE. In 2022, it signed nearly US$9.5 billion in partnerships with 25 businesses, including Schneider Electric, Emerson, and Siemens, to produce vital industrial goods domestically. Arabian Rig Manufacturing, a joint venture with NOV to manufacture drilling equipment locally for the first time, was announced, as was the opening of new offshore fabrication yards in Ras Al Khair to build and assemble offshore platforms, jackets, and structures for subsea pipelines in collaboration with National Petroleum Construction Company (NPCC) and McDermott International. This is good news for the project sector, Smaili said. “With all of these new facilities planned, projects will increase as the building progresses. We should expect more breakbulk enquiries for imports into the Middle East.”
In addition to the typical infrastructure, such as ports, transportation networks, and industrial zones, to support the growing fabrication operations, another critical factor will be developing renewable energy sources to help economic activity as corporations face increased scrutiny over their carbon footprint. “The region is importing project cargo to meet the local need and exporting steel and locally fabricated project heavy-lift components. We are also seeing trade lanes expand and develop with Southeast Asia, Africa and the U.S., strengthening ties on the back of widespread international re-engagement with the region and geopolitical uncertainty surrounding other areas of the world,” he said.
Navigating Opportunities and Hurdles
According to Donoghue, strengthening manufacturing in the Middle East holds several benefits. “It plays a pivotal role in a country’s economic growth and sustainability. It holds the potential of revolutionizing local economies. Beyond fostering export capabilities, manufacturing has a cascading impact on various sectors, including driving technological progress and productivity gains. Furthermore, strengthening domestic manufacturing gives countries strategic independence,
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reduces reliance on international trade and minimizes disruptions during crises or geopolitical tensions.” One key that increased fabrication in the Middle East presents is the need to enhance the workforce’s skill levels to attract more manufacturing projects to the region. Sustainability, Donoghue said, is another crucial consideration. Project operators must find ways to align the growing demand for increased fabrication with sustainable practices, including environmentally friendly logistics and resource management. “On the flipside, there are also several opportunities for project operators. Infrastructure development in the Middle East offers significant growth potential for logistics projects. Investments in specialized facilities, transportation networks, and logistics hubs can improve efficiency and attract more regional manufacturing projects. Furthermore, as the Middle East’s energy sector shifts towards renewables and sustainability, project operators can be vital in providing logistics and transportation solutions for renewable energy projects like solar and wind farms.” Vicens said challenges and opportunities are emerging for forwarders amid all these developments. “We’re observing a decrease in the number of breakbulk vessels we charter annually compared to previous years.
Middle East Sue Donoghue
This reduction, on the one hand, presents more opportunities for work within the country. Where you lose on the one side, you gain on the other,” he said. This was seen in the case of the first utility-scale wind farm in Saudi Arabia, Dumat Al-Jandal. Here, a local heavy equipment provider supplied the 150 hydro generators. Unlike before, when everything was sourced from places like Houston in the U.S. or factories in Europe, in this case, the towers were manufactured locally in Saudi Arabia and the blades and gas turbines were brought in from Saudi factories. The equipment that couldn’t be fabricated in Saudi Arabia still needed to be sourced externally. “While offshore work decreased, in-country logistics saw a significant increase,” Vicens said. Donoghue pointed out that accommodating the increasing fabrication activities in the Middle East will demand substantial advancement in logistics and infrastructure. “For instance, Saudi Arabia’s ambitious 100 billion Saudi riyal (US$26.61 billion) railway project, known as The Land Bridge Project, connects the eastern and western regions of the Kingdom. Similarly, in the UAE, initiatives like Rail Direct, a joint venture between Etihad Rail and DHL Global Forwarding, bolstered the region’s freighter network. Incorporating such developments and technological innovations in the industry promises significant benefits for businesses through optimized resource utilization, cost reductions and enhanced asset management efficiency.”
Charting The Course Ahead The overall outlook is incredibly positive, according to Charnock: “It can only go one way, and that is up. The Middle East is now, and historically has been, ideally at a crossroads between trade lanes, easily tapping into markets from the East and West. Ships arriving in the Middle East to discharge cargo will also have space to bring cargo back. If the Middle East continues this upward trajectory, it will benefit breakbulk operations globally.”
The region is expected to witness a 3.1 percent GDP growth in 2024 compared with 2.9 percent in 2023. This growth is higher than the world average of 2.6 percent and 2.4 percent in the respective years. “The growing export capacity truly has profound implications for logistics,” Donoghue said. “As Middle Eastern countries diversify their exports and expand their trade partnerships, they continue to experience economic growth, reduce their reliance on oil revenue, and improve trade balances. This expansion is spurring substantial investments in logistics infrastructure, leading to a more efficient and competitive logistics sector. “Furthermore, the region’s growing export capacity opens doors to economic benefits such as job creation, increased foreign direct investment, and the potential to become a global leader in sustainable exports. Overall, the Middle East’s export-driven economic growth and close alignment with logistics development position it as a vital player in the evolving global trade landscape.” It remains one of the world’s fastest developing economies, and the numerous ambitious infrastructure and development projects are expected to attract around US$1 trillion in investment by 2030. “These megaprojects will bring huge benefits to project operators in addition to the regular breakbulk cargo,” Smaili said. “However, when the region becomes ‘self-sufficient’ in the medium term, and the number of projects decreases, project operators may suffer from a cargo shortage. Furthermore, with the recent establishment of the India-Middle East-Europe Economic
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Corridor, constructing a rail link may shift goods away from the sea route.” Vicens added the project sector is, and always has been, a delicate balancing act. “It’s all about making prudent investments at the right moment. You need to exercise high caution while maintaining a careful equilibrium. The demand is expected to remain strong, and the future of projects looks promising. However, it’s crucial to ensure that the necessary equipment is available when required without overcommitting.” Donoghue agreed, saying the Middle East’s logistics landscape is poised for significant developments in fabrication, trade, and breakbulk operations. Economic diversification efforts will continue to drive the growth of advanced fabrication facilities, necessitating efficient logistics for material transportation. “For logistics project operators and stakeholders in the region, several key takeaways and advice are crucial for success,” she said. “Embrace cutting-edge technology solutions like IoT, AI and blockchain to optimize supply chain operations, enhance visibility and make informed decisions. Recognize the growing importance of sustainability and implement ecofriendly practices to meet market demands and reduce environmental impact. Stay agile and adaptable to respond to changing market dynamics. “Consider global logistics partnerships for expanded reach. Keep abreast of regulatory changes and invest in workforce training and development to maintain competitiveness. Prioritize customer satisfaction, employ robust risk management strategies and continually evaluate and improve logistics processes for enhanced efficiency and cost savings,” she said. By integrating these strategies, logistics operators can build resilient, efficient, and sustainable solutions that cater to the evolving demands of the market. Liesl Venter is a transportation journalist based in South Africa.
SEAMLESS CONNECTIONS At DP World, our ports and terminals help businesses streamline operations, lower costs and achieve sustainability goals. We’re working to end supply chain disruption by reducing friction in every part of your cargo’s journey, creating certainty and security for all. From the factory floor to your customer’s door, DP World is working to ensure the fast, transparent movement of goods, connecting you to your customer.
Middle East
NEOM CONSTRU ACTIVITY RAMP Saudi’s Record-breaking Development Roars Ahead By Heba Hashem
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CTION PS UP
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A
s the largest project in the Saudi Vision 2030, a post-oil blueprint which aims to transform the Kingdom into a sustainable, diversified economy, NEOM is a massive undertaking. Costing an estimated US$500 billion and covering more than 26,500 square kilometers in Tabuk province in northwest Saudi Arabia, the planned mega-city is expected to have capacity for 450,000 people by 2026 and up to two million people by 2030, eventually housing nine million by 2045. “Today in NEOM, there are 55,000 laborers, 3,000 employees, and around 50 contractors. In seven years, there will be 450,000 laborers. Companies are already moving earthwork and laying foundations for all the projects to be done,” NEOM CEO Nadhmi Al Nasr told participants at London Business School’s Middle East Conference in May 2023. Led by the Public Investment Fund, NEOM’s masterplan includes smart cities, logistics areas, research centers, sports and entertainment venues, and tourist centers. The city will be entirely powered by renewable energy, including 1.6 gigawatts, or GW, of wind and 6.5 GW of solar power. With these capacities, the government hopes to create an optimized energy mix at costs well below global averages. One of the largest projects in NEOM is a green hydrogen production facility which is set to be the world’s largest once operational in 2026. Located in the city’s Oxagon region, a fully automated port and integrated logistics hub, the landmark project is a joint venture between NEOM, Saudi utility Acwa Power, and Air Products, the world’s largest hydrogen producer. The facility will be powered by 3.4 GW of wind and solar energy to produce an initial 600 tons of green
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hydrogen per day for global export. However, since 2020 when it was first announced, the project’s capital needs have soared by 70 percent to US$8.5 billion from its original budget of US$5 billion, according to a Q1 2023 financial update from Air Products, a co-developer and the exclusive offtaker of the facility’s green ammonia. Breaking down the budget increase, Air Products attributed US$500 million to inflation, US$1.8 billion to “project financing costs, upfront fees, interest during construction, additional joint venture costs, spares, land, etc,” and US$1.2 billion to “additional scope to make the project more self-sufficient and lower operating costs.” To make the project “self-contained,” the company said the co-developers plan to provide services themselves, such as transmission lines and other infrastructure components.
Turbine Transport
Despite the higher investment value of US$8.4 billion, NEOM’s green hydrogen project reached financial close last May, securing US$6.1 billion in non-recourse financing from 23 entities. A month after financial close, Air Products selected Envision Energy for the supply of 1,670 megawatts, or MW, of wind turbines to the green hydrogen facility. The Chinese renewable energy group, in turn, contracted Swiss logistics company Kuehne+Nagel in August to transport 190 wind turbine generators and 67 tower sets to NEOM. The project entails the transport of 1.4 million tons of components and is expected to be completed in 2025. More than 100 project logistics professionals, vessel chartering experts, transport engineers, drivers and riggers have been deployed to manage cargo movements. Michael Doerpinghaus, global head of project logistics at Kuehne+Nagel, told Breakbulk that the company has delivered the first batch of turbines. “We have opened an office in Tabuk, successfully delivered the first six
Middle East
renewable energy transfer in Saudi Arabia. Besides the terrain, there are also potential risks of flash floods during the rainy season and strong winds that can cause delays in unloading the cargo, according to Doerpinghaus. He said that Kuehne+Nagel was familiar with the challenges in this region having already handled a project with 98 wind turbines from another manufacturer in NEOM, as well as project cargoes from other customers. “We are aware that we operate in Kuehne+Nagel delivered 1.4 million tons a very dynamic environment where of wind turbine equipment for the NEOM project in Saudi Arabia. conditions and infrastructure change Credit: Kuehne+Nagel within a short period of time and prepare our operations accordingly, always being wind turbines to the designated port wind generation balance of plant at able to react flexibly within a short time.” of departure, completed the loading NEOM’s green hydrogen project. The The Port of NEOM, the main port of the first vessel, started deploying company’s scope includes supply for Saudi Arabia’s northwest launched operations teams, handling equipment and delivery of solar PV panels and in 1994 as Duba Port, is now being and transportation to Duba, and are associated structures procured from completely transformed. Since taking already planning the second delivery.” multiple geographies, mainly Asia. over its management in 2022, NEOM The company’s scope of work includes “We have already identified logistics has expanded the port’s capabilities to collection of wind turbine components service providers including freight match the rising volume of cargo coming and accessories from Chinese factories, forwarders and customs handling into the new city, including container transportation to the port, chartering agents in Saudi Arabia for executing and general cargo handling. The port has and loading of vessels, and shipping the shipments. As a strategy, we’re already received the turbine components to the Port of NEOM. It also includes not entering any long-term contract for the Dumat Al-Jandal wind farm. customs clearance, temporary storage, with any shipping line or freight “From the development plan of the and delivery to 257 installation sites. forwarder, since freight market Port of NEOM, it looks like it would be one “We have partnered with a specialist and space remains volatile, and of the most technologically advanced, ocean carrier and contracted the we would like to take advantage of with modern facilities and the highest necessary transportation and crane available lower freight [cost] without standards of sustainable development. capacity from market-leading compromising on the targeted This could make it a role model for many industry partners for the duration of schedule,” Dharmendra Gangrade, upcoming ports which are considering/ the project,” Doerpinghaus said. head of the logistics management undergoing upgrades,” Gangrade said. Having capabilities on the ground is center at L&T, told Breakbulk. NEOM has invested more than US$2 facilitating the process. “At NEOM, we billion to date in developing the port have presence in three locations: in an Dynamic Environment and anticipates the first container office at the Port of Neom, from which With archaeological sites, nature reserves, terminal to be open in 2025. The city we manage ship unloading, port transfer, and towering mountains, the terrain of has also appointed U.S. construction interim storage and crane operations; Tabuk where NEOM is being built can be services company Jacobs as lead design in a project team office in Tabuk; and challenging for truck fleets, according to consultant for the redevelopment with an on-site representative for each Almajdouie Logistics. Back in 2021, the of the port, a US$48 million project part of the transport, who coordinates Saudi firm transported 98 wind turbines, spanning terminals, warehouses, on-site activities and interfaces with our each 205 meters long and weighing 69 rail delivery, infrastructure, and a customer and its installation contractor.” tons, for the Dumat Al-Jandal station, sustainable energy network. Meanwhile, Indian conglomerate the Middle East’s largest wind farm. “So far, our contacts with the Port of Larsen and Toubro, or L&T, is the The 1,700-kilometer journey from Duba NEOM have been consistently positive. engineering, procurement and Port (now Port of NEOM) to the project The port authority is striving to become construction contractor building site in Al Jouf took the fleet through a regional hub by modernizing and the 2.2 GW solar plant and 1.65 GW Tabuk’s rugged roads. It was the largest expanding the port infrastructure and
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Middle East
dealing with all stakeholders using the port facilities in a professional and transparent manner,” Doerpinghaus said. Road freight is also expected to become easier following the opening of NEOM’s Heavy Machinery & Truck Service Center last July. Operated by local automotive services company Petromin Corp., the facility will address the growing demand for maintenance and repair work for heavy machinery, trucks, buses, and various other vehicles supporting NEOM’s projects.
Petromin has partnered with NEOM to operate a state-of-the-art heavy machinery service center.
Social, Housing Infrastructure
As NEOM expands at a faster pace, dozens of companies are securing contracts to develop key pieces of infrastructure, which is expected to drive major breakbulk activity in the Tabuk region. One of these companies was India’s KEC International, a global infrastructure EPC major which won a turnkey order of US$138 million for the development and installation of a 380 kV overhead transmission line in NEOM. Hitachi Energy, a Switzerlandheadquartered technology company, has also signed agreements with the Saudi Electricity Co. and NEOM’s energy and water subsidiary Enowa to supply three high-voltage transmission systems. One of these systems will connect Oxagon with the larger Yanbu area south of Tabuk, more than 650 kilometers away in Western Saudi Arabia. Another company which recently secured a project in NEOM is National Engineering Services Pakistan. As part of a US$12.5 million contract, the Pakistani state-owned firm will provide construction management services for projects within various zones encompassing NEOM Bay, NEOM Mountain, and NEOM Phase II, according to a report by Saudi English daily Arab News. When it comes to transport infrastructure, construction work is about to start on the Connector, a high-speed railway that will run north
Credit: NEOM
to south along Saudi Arabia’s Red Sea coast, connecting NEOM’s port city of Oxagon with its linear city, The Line. A joint venture of Italian industrial group Webuild and local firm Shibh Al Jazira Contracting Co. will design and build 57 kilometers of the railway as part of a US$1.5 billion contract signed in May. The partnership includes the civil works for two high speed and two freight railway tracks, with Webuild leading the execution of work. It also covers the viaducts, road bridges, and road and rail underpasses to facilitate train speeds of up to 230 kilometers per hour. As the centerpiece of NEOM, The Line will cut across 170 kilometers, starting in the west at the Gulf of Aqaba, continuing through desert valleys, and terminating at the NEOM International Airport. Highspeed transit will be among the ways residents will be able to travel longer distances, making it possible to traverse the entire route in just 20 minutes. “The Line represents 92 percent of the whole NEOM, and the rest is 8 percent. So, when you [have] a project like this, it will take about 30 years to build it and bring residents and populations. This has never been done before, it’s a 500-meter-high complex livability, 9 to 10 million [people] will live there. Construction is the first of its kind, yet we are confident we will do it.” Al Nasr said during the Middle East Conference. NEOM has already finalized contracts
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worth more than US$5.7 billion with local investors to develop 10 communities, adding capacity for 95,000 occupants. The investors include Almutlaq Real Estate Investment Co., Nesma holding Co., Tamasuk, and Alfanar Projects. The latter is injecting US$2.7 billion to develop five residential neighborhoods in the city. With milestones being hit every month, NEOM’s attention is turning to its airport, the future gateway for visitors to the Red Sea destination. Earlier this year, the city awarded American infrastructure consulting firm AECOM a multi-year contract to provide project management consultancy services for NEOM International Airport. Clearly an ambitious project, NEOM offers a vision of what the new future might look like. But what is even more remarkable is the city’s commitment to protect 95 percent of its land and sea as a nature reserve. This means that all projects will be developed on the remaining 5 percent, including the four planned regions and 16 islands. “What we are going to deliver by 2030 and 2050, the two key dates, is only the beginning of the journey of NEOM,” Al Nasr said. “This is not just a project, what we are offering in NEOM is [the opportunity for] people to come and be part of a game-changer for the world.” Heba Hashem is an Arabic and Englishspeaking freelance journalist based between Dubai, UAE and Niagara Falls, Canada.
Middle East
By Ryan McPherson
UAE: ‘HOTBED OF PROJECT OPPORTUNITY’’ US$192 Billion in Capex Committed to Nearly 100 Projects
T
he UAE has a strong track record of economic success in the Middle East, and one sector that stands out in the Gulf Arab state is the project cargo industry, which facilitates the transportation of large-scale projects across the region and beyond. A look into the current state of this sector in the UAE reveals the country as a hotbed of opportunity. Indeed, energy supply chain companies, including members of the Energy Industries Council (EIC), the global energy supply chain association, can harness these prospects for growth. As it stands today, we can confidently say that the UAE is highly active in the project cargo sector, with investments pouring into the downstream, upstream, midstream, power, and hydrogen sectors. Let the numbers speak for themselves: the country, which is one of the world’s top oil producers but also a breeding ground for a wide mix of energy projects from hydrogen to nuclear and solar, has a staggering US$192 billion in capital expenditure spread across 98 projects.
Ryan McPherson
A granular look at these projects shows a diverse spectrum of investments across various sectors in the UAE. In the downstream sector, an allocation of US$64.825 billion is distributed among 19 projects, while the upstream sector has 41 projects with an investment of US$63.221 billion. The power sector boasts 11 projects and an investment of US$37.383 billion, and the midstream sector has 20 projects with an investment of US$24.604 billion. Lastly, the hydrogen sector, though
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smaller in terms of investment at US$1.9 billion, comprises 7 projects. This impressive financial commitment underscores the sector’s significance in the UAE’s economic landscape and indeed highlights the ample opportunities that come with it for companies that are willing to invest in both capability and capacity and for companies still not active in the region but actively looking to venture into new markets.
Sea Freight Support
Successful project cargo transportation hinges on the capabilities of sea transportation companies, and the UAE already boasts a formidable roster of 23 maritime shipping companies. These include both homegrown giants and international heavyweights that have set up shop in the UAE. These companies are ensuring the secure and timely delivery of project cargo, making them integral to the sector’s growth. The current project pipeline across multiple sectors and the UAE’s 2050
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Energy Strategy, focused on diversifying the nation’s sources of energy output, means that opportunities abound for those energy supply chain companies that are capable and willing to venture into new waters. Members of EIC, such as Baggio Transportes Ltd, ATPI Marine & Energy Division, and CEVA Logistics FZCO, are among the notable players in this arena. Their involvement further underscores the UAE’s reputation as a strategic business hub. Energy supply chain companies are well-placed to leverage these existing partnerships and networks to tap into the growing demand for project cargo services. The UAE government has not merely stood by but actively supported the project cargo sector’s growth. Significant investments are being poured into port and transportation network upgrades, bolstering cargo movement efficiency and positioning the UAE as a prime destination for project cargo transportation. Furthermore, the UAE is embracing cutting-edge technologies like blockchain to enhance supply chain transparency. This forward-thinking approach not only streamlines cargo tracking but also strengthens the security and reliability of project cargo transportation. Energy supply chain companies should view this as an opportunity to integrate such technologies into their operations to ensure seamless and transparent supply chain management. Situated at the crossroads of major trade routes, the UAE boasts a geographical advantage that few can match. It acts as a crucial bridge connecting the Red Sea, East Africa, and the Indian subcontinent. This strategic location not only facilitates smooth cargo movement but also opens doors for trade expansion and economic growth. In 2022, almost half of the cargo flows from the Gulf Cooperation Council countries came through the UAE. This statistic underscores the
UAE Investment: Industry by CAPEX ($m) 70 000s 64,825
45
63,221
60
40
41 35
50
30
40 30
37,383
25
20 19
20
24,604
15
20 11
10
7
10 0
1,900 Downstream
Upstream
Power
Midstream
Hydrogen
5 0
Source: EIC
UAE’s dominance in the region and its central role in the movement of goods. Sea freight is leading the charge in the UAE’s logistics market, highlighting significant potential for growth. Among the UAE’s key ports, Khalifa Port, launched in 2012, serves as a game-changer for the project cargo sector. Nestled in Abu Dhabi, Khalifa Port’s state-of-the-art infrastructure and strategic location have propelled it to the forefront of the industry. With deep-water berths and advanced handling facilities, Khalifa Port has the potential to fuel substantial growth in the project freight forwarding market.
to tap into the growing demand for energy-related project cargo services in the area. The EIC can help energy businesses expand into new markets through our comprehensive global project data, our networking events, strategic advice, and working with governments and key stakeholders. With reference to government, another way for companies to take advantage of the ample opportunities in the country is through collaborating with UAE government initiatives by investing in logistics infrastructure to support the project cargo sector. The project cargo sector in the UAE is a sea of opportunity, and energy Leveraging Opportunities supply chain companies are in a How can energy supply chain companies prime position to ride this wave. With benefit from these opportunities? substantial investments, a strategic We believe this can be achieved in location, government support, and multiple ways. One is through forging technological advancements, the long-lasting strategic partnerships UAE’s project cargo sector is poised for that leverage existing partnerships sustained growth. By forging strategic and networks with maritime shipping partnerships, embracing innovation, companies in the UAE to ensure and tapping into the UAE’s booming efficient project cargo transportation. energy projects, energy supply chain Companies should also embrace companies can not only benefit from innovative technologies like blockchain these opportunities but also contribute to enhance transparency and reliability to the growth and prosperity of the in supply chain management, making UAE’s project cargo sector. services more competitive. Moreover, for companies still lacking Ryan McPherson is regional director for the Middle East, Africa, Russia and CIS at the Energy a presence in the UAE and the wider Industries Council. region, consider expanding operations
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NORTH AFRICA’S HYDROGEN PATHWAY POTENTIAL By Liesl Venter
Green Fuel to Catalyze Project Demand
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orld trade is gearing up for a hydrogen revolution. A total of 660 million tons is required for global carbon neutrality by 2050. This shift towards hydrogen as a significant commodity marks a colossal economic opportunity on the horizon. For North Africa, this news couldn’t be more welcome. With its vast renewable energy resources, the region is primed to play a pivotal role in this burgeoning hydrogen market. “Green hydrogen is not just a game-changer for the project sector, but for North Africa,” said Mohamed Abdellahi Yaha, owner and CEO of Maurilog, an integrated logistics service provider that has been servicing the oil and energy sector in North Africa for the past 20 years. “It holds incredible economic promise, but also positions North Africa as a vital player in the global effort to achieve sustainability goals, underscoring the region’s strategic significance in the clean energy transition.”
Produced through a process known as electrolysis, using renewable energy sources like solar or wind power to split water molecules into hydrogen and oxygen, its versatility and potential to replace carbon-intensive fuels make it a cornerstone in the global effort to combat climate change. “North Africa has plenty of water, sun, space, and wind. When you add in the demand from the market, it’s clear this region is on the brink of significant change,” Yaha said. “The conflict between Russia and Ukraine
Region: Africa Problem: Investment, infrastructure development and regulation all stand in the way of North Africa’s green hydrogen bonanza Solution: Regional governments are forming alliances and smashing down barriers to facilitate this ‘economic opportunity of our time’
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has highlighted Europe’s urgent need for energy independence. These nations are seeking ways to reduce their dependence on Russian gas and exploring alternative options. When we factor in the pressing issue of climate change and the fact that green hydrogen, unlike today’s fossil fuels, doesn’t emit harmful gases into the atmosphere when used, thus contributing to the fight against global warming, it becomes clear that countries such as Mauritania, Morocco, Egypt, and Tunisia are poised to emerge as leaders in this crucial transition.” A recent study published by Deloitte confirms the intrinsic role countries in the north of Africa will play. In its 2023 global green hydrogen outlook, the consultancy stated that by 2050, North Africa, Australia, North America, and the Middle East will collectively account for 45 percent of global hydrogen production and 90 percent of trade. North Africa has the highest export potential at US$110 billion per
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year, followed by North America (US$63 billion), Australia (US$39 billion) and the Middle East (US$20 billion). Yaha underscored that the already established pipeline networks are crucial in enhancing North Africa’s green hydrogen potential. Countries across the region are increasingly recognizing their capacity to seize this opportunity. Egypt, Morocco, Mauritania, Kenya, South Africa, and Namibia stand as founding members of the Africa Green Hydrogen Alliance. Together, those nations are committed to strengthening their cooperation to accelerate the growth of green hydrogen projects throughout the continent. Their collaborative efforts encompass developing public policies and regulatory frameworks, building capacity, securing financing, and addressing certification requirements, all to facilitate the production of green hydrogen for domestic consumption and exportation.
A Transformative Path Forward
Throughout history, numerous African nations have confronted daunting issues like poverty, political instability, and restricted access to education and healthcare. However, green hydrogen has ushered in a newfound wave of optimism and purpose that is now sweeping across the continent. Countries are stepping up their ambitions, embracing a new era of growth and inclusivity. These nations, once seen as not dreaming big enough, are now championing change and setting their sights on a brighter future. “Africa has the best renewable energy in the world, and scaling up production of green hydrogen can transform access to low-cost electricity and clean water,” said Ambroise Fayolle, vice president of the European Investment Bank, which is working closely with countries in North Africa to harness renewable energy potential to produce lowcost green hydrogen at scale.
The bank’s report, titled Africa’s Remarkable Green Hydrogen Potential, presents clear opportunities to revolutionize access to green energy and clean water within the continent and the wider world. It outlines what can be accomplished and the necessary steps to achieve these goals. The research outlines three essential conditions for producing 50 million tons of green hydrogen in Africa by 2035. Firstly, national planning, regulation, and incentive programs must be established to attract private sector investments. Second, pilot projects must demonstrate successful green hydrogen generation, storage, distribution, and utilization at demonstration and commercial scales. Third, market-oriented collaborations are required to create substantial domestic and international demand for green hydrogen. Additionally, increased cooperation is needed to design, finance, construct, and operate green hydrogen production, storage, and distribution infrastructure. According to the study, large-scale green hydrogen generation will enable Africa to supply 25 million tons of green hydrogen to global energy markets, equivalent to 15 percent of current gas used in the European Union. “The advantages of green hydrogen are evident. Governments are realizing
they stand to gain a lot with minimal risk. Although these countries are competitors in North Africa, they increasingly recognize the need for cooperation. There’s room for everyone in this vast market, and the demand knows no bounds. Everyone will benefit. It’s simply a matter of making it a reality,” Yaha said.
Navigating the Obstacles
While North Africa’s exceptional geographical advantages, including vast deserts and abundant sunlight, make it an ideal location for largescale green hydrogen production, harnessing its hydrogen potential comes with its fair share of challenges. Infrastructure development is at the forefront of these challenges, which demands significant investments to establish the essential components for green hydrogen production, storage, and transportation. This encompasses the construction of solar and wind farms, electrolysis facilities, and hydrogen pipelines. Additionally, addressing regulatory frameworks, a process that can be time-consuming, in Africa is essential. Regional governments must establish clear and supportive regulations to attract private investments and maintain a stable business environment for green hydrogen projects. Another
Global Hydrogen Trade Among Key Regions, 2030
Share of net exports in domestic consumption
Self-sufficiency Importer
Exporter 100
200
300
400
500
Seaborne transport
Trade flows > 7Mt
Trade flows > 1Mt
Pipeline transport
Trade flows > 2.5Mt
Trade flows > 0.3Mt Source: Deloitte
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Middle East Green Hydrogen Production* in Africa, Split by Country 8 Million tonnes 7 6
Egypt
Morocco
South Africa
Mauritania Dijibouti
Namibia
5 4 3 2 1 0 2022
2023
2024
2025
2026
2027
2028
*Based on annoucements as of February 2023
obstacle to overcome is education and workforce development. The training and developing of a skilled workforce capable of operating and maintaining green hydrogen infrastructure will be vital for progress. However, several governments are already taking proactive measures in this regard. Egypt, for instance, is forging ahead with its ambitions to become a green hydrogen producer and has solidified multiple agreements with international companies. In August of this year, Egypt inked a preliminary deal with Ocior, an Indian renewable energy firm, committing to invest US$4 billion in green projects. Furthermore, the nation has signed at least seven additional Memoranda of Understanding with companies from Saudi Arabia, China, Germany, Britain, and India, all for green hydrogen initiatives. In recent months, the Egyptian Cabinet approved the establishment of the National Council for Green Hydrogen, aimed at promoting green investments and implementing the national green hydrogen strategy. This Council will also oversee the review of all legislation and regulations related to green hydrogen and its derivatives. As part of this comprehensive strategy, Egypt has set its sights on producing green hydrogen at the
2029
2030
2031
2032
2033
2034
2035
Source: Rystad Energy Hydrogen Cube
world’s lowest cost by 2050, targeting a remarkable US$1.7 per kilogram, and aspires to capture an 8 percent share of the global hydrogen market, as stated by government officials. Morocco has also unveiled its national strategy outlining its path to becoming a global player in the green hydrogen industry. It plans to commence production and exports as early as next year. The government aims to achieve a 52 percent share of renewable energy in its total capacity by 2030, and it is preparing for significant investments totaling at least US$60 billion across approximately 454 projects focused on green hydrogen and ammonia. Meanwhile, Tunisia has set an ambitious target of manufacturing 8.3 million tonnes of green hydrogen annually by 2050, demonstrating its commitment to this sustainable energy source. Additionally, Mauritania has announced plans to establish itself as a green hydrogen hub in North Africa, positioning the country at the forefront of this burgeoning industry in the region.
‘Positive Signs’ for Projects Rafael Vicens, managing director Iraq and head of global projects and industry solutions for the Middle East & Africa at DB Schenker, noted that the demand
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for infrastructure is a positive sign for the project sector. “Considering the substantial investments made by countries like Mauritania and Senegal, there is a promising outlook for projectrelated work. These developments are progressing so rapidly that there is a risk of insufficient assets to support these projects when the time arrives.” Vicens and Yaha highlighted that logistics operators are facing a delicate balancing act. They emphasized the importance of being prepared for the impending project boom but caution against acting too early or too late. The challenge lies in aligning readiness with the pace of developments in the region. “Undoubtedly, the demand for infrastructure to transport and export hydrogen will surge. We don’t have much congestion at the moment, but it will come if the hydrogen boom takes off,” Yaha said. There are also concerns that the hydrogen industry’s rapid growth may outpace supporting infrastructure development. “Of course, the transport and storage of hydrogen requires specialized equipment and facilities. If these logistics elements are not expanded concurrently with the industry’s growth, it can lead to bottlenecks and congestion.” However, according to Vicens, the advantages outweigh the drawbacks as operators prepare to meet the increasing demand. Yaha added that North Africa is in a favorable position to seize the most incredible economic opportunity of our time while significantly contributing to the battle against climate change. As the demand for project logistics surges due to the increasing trade in green hydrogen, this region is poised for substantial growth. Liesl Venter is a transportation journalist based in South Africa.
Read more about Mauritania’s hydrogen potential in Issue 3, 2023 of Breakbulk magazine: issuu.com/breakbulk_issue_3_2023
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Martin Helweg, CEO of P&O Maritime Logistics. Credit: P&OML
NAVIGATING SEAS OF INNOVATION AND CONNECTIVITY By Liesl Venter
P&OML’s Martin Helweg Relishes Daily Opportunities for Learning
F
rom the exotic spices that once fueled the Age of Exploration to the cutting-edge technologies that define our digital era, shipping has consistently catalyzed innovation, sparking the rise and fall of civilizations and forging unbreakable links between societies. For Martin Helweg, CEO of P&O Maritime Logistics (P&OML), shipping underpins the very essence of our interconnected world. “It’s not just about moving goods from one place to another; it’s about building connections, fostering collaboration, and enabling progress on a global scale.” It’s an industry that captured his imagination early in his career. It was
while working in London, equipped with a Masters in Business Administration from the Copenhagen Business School, that Helweg discovered the world of shipping – one of the few industries to provide avenues for involvement in international settings rich with diverse cultures, an integral requirement for his wanderlustfueled heart and curious mind. “Having spent most of my career in the shipping industry, I’ve realized that the essence of our value proposition rests in the transformative differences we affect in the lives of everyday individuals across the globe. Shipping is the vital link between nations, economies, global trade, and energy networks.”
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His enthusiasm and unwavering dedication to driving change through his daily work is unmistakable. His commitment shines as he speaks about the profound sense of purpose derived from bolstering local economies, enabling them to engage with the global trade and energy sectors. “In this dynamic landscape, where diverse cultures intersect, and myriad business methodologies thrive, each day becomes an opportunity for learning,” he said. “The sheer variety ensures that no two days are alike.” Helweg has spent over 15 years in marine service solutions working for Svitzer, an A.P. Moller-Maersk company, in regional CFO and CEO roles across the Americas, Europe,
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the Middle East and Asia. Before taking up the CEO position at P&OML, he headed up its global operations for several years. Offering a value proposition to customers, the company focuses on providing marine logistics solutions across three strategic segments – offshore, port services and bulk transport – delivering capabilities across industries, with safety and the environment at the forefront. A core focus is the optimization of offshore logistics for energy companies, Helweg said.
Driving Innovation
“We’ve come to understand that solutions are inherently unique,” Helweg said. “Our role involves bridging the initial and final stretches, seamlessly integrating them into the broader supply chain solution.” In today’s rapidly evolving business landscape, embracing innovation in the logistics sector is crucial for staying relevant and gaining a competitive advantage by streamlining operations, enhancing efficiency, and meeting the ever-changing demands of customers. “The juncture where our value flourishes is precisely where innovative solutions take root,” Helweg said. “It is critical to reimagine the utilization of our assets and determine what we can do differently to meet the needs of our customers.” Logistics has moved beyond the realm of just delivering the obvious solution. It’s about discerning the aspirations of one’s customers, envisioning novel approaches, and collaboratively unravelling the challenges to be conquered. Helweg believes that P&OML is uniquely positioned in the maritime logistics industry to reshape the market and deliver these solutions. “Our affiliation with DP World affords us global reach and strength and allows increased investments in the fleet, technology, and innovation. It is a strength that we continue to leverage to deliver maximum value to our clients and stakeholders.”
The company owns and operates approximately 400 vessels and provides a broad portfolio of value-added marine services. The ability to integrate these offerings for its customers is an important distinguishing factor. “Our approach hinges on collaboration and the cultivation of partnerships. It is about delivering value within highpressure landscapes where the imperative for efficiency is high.” This often necessitates addressing challenges through a fresh and distinctive lens. Such was the case for a large oil project in Kazakhstan where the client wanted to double production volumes. “The initial directive entailed the transportation of assembled modules using tugboats and barges within a river system. The ultimate solution culminated in conceiving and constructing 17 dedicated vessels – our Multi Carrying Vessels (MCVs) tailored for the transportation task.” This innovation enabled an enhancement in their logistical supply chain, accelerating it by 40 percent. Simultaneously, it achieved a 30 percent reduction in fuel consumption. Moreover, the transformation meant the oil company could now construct more substantial modules in regions P&OML owns and operates approximately 400 vessels. Credit: P&OML
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where their confidence in build quality was unwavering—shifting from conventional stick-building methods to assembling larger modules beyond the confines of Kazakhstan. “The journey was immensely fulfilling,” Helweg said. “It commenced at one juncture and concluded at an entirely different destination. What holds significance is that the solution forged was unprecedented—a feat never before accomplished. It entailed walking hand in hand with the customer, and there were many uncertainties as we ventured into uncharted waters. Yet our unwavering trust in the prowess and experience of our team allowed us not only to deliver the solution but to do so ahead of schedule.”
Customer Centricity
Cultivating a deep understanding of clients’ needs is a cornerstone of success for P&OML. “To achieve solutions that enhance efficiency, satisfaction and foster enduring partnerships, it is imperative that we delve into a comprehensive understanding of our customers’ desires. Our dedicated commercial team invests substantial effort in meticulously charting our clients’ needs. This entails an extensive
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The commercial terrain is undergoing “profound shifts.” Credit: P&OML
initial inquiry, surpassing the rudimentary framework typically outlined by a procurement department at the project’s inception.” In sectors like projects, especially within the offshore energy realm, a profound comprehension of the project’s objectives is a pivotal determinant of success. “Merely adhering to the requisites laid out by procurement in the logistics domain might confine success to securing the lowest transportation cost,” he explained. “The true essence, however, lies in discerning the broader panorama, crafting solutions that seamlessly align with those comprehensive requisites, ultimately leading to an invaluable contribution.” He said that the company’s competitive edge is founded on its unique perspective towards clients. This approach involves meticulously mapping their needs and pertinent factors, ensuring precise delivery aligned with those requisites. “Integral to this endeavor is our profound affiliation and partnership with DP World, an invaluable asset to our company. As one of the world’s largest and most influential infrastructure entities in ports and trade, DP World’s extensive reach empowers us to cater to an even broader spectrum of audiences. We tap into DP World’s immense size and scope, leveraging its unparalleled expertise to enrich our offering.”
For Helweg, the distinction of P&OML’s success lies in its ability to craft tailor-made solutions that navigate challenging waters and execute them promptly, minimising delays and effectively managing costs. The company is actively aiding Saudi Arabia’s endeavor to diversify its economy beyond hydrocarbons, a venture involving offshore transportation and installation of hotel pods. Meanwhile, in Papua New Guinea, it plays a crucial role in facilitating the export of precious resources, including gold and copper.
2023 and Beyond
Logistics and maritime companies are under mounting pressure to retain their relevance in an everevolving world where the growing importance of sustainability is reshaping the landscape. “As a sector, we have a major responsibility towards delivering energy sustainability, and while countless initiatives are already in motion, and substantial efforts are underway to align the industry with sustainable practices, we still have a long way to go.” Helweg believed it is naive to assume that a singular, straightforward solution exists. “Sustainability stands as unequivocally the most formidable challenge facing our industry. Its
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prominence will transform it into an imperative for upholding a ‘license to operate,’” he forecasted. “Without a clearly defined roadmap and robust sustainability programme, we risk forfeiting that license.” In tandem, an enduring challenge persists—the volatile market environment. “The commercial terrain is undergoing profound shifts. The significance of collaboration is growing, necessitating companies to embrace a level of agility unprecedented in previous scenarios,” he said. The final challenge, closely tied to sustainability, revolves around talent acquisition. “Shipping has faced significant hurdles in attracting women to our sector, and the outreach to younger generations has also proven a challenge,” he said. Coupled with the intricacies of technical markets and the sometimes unaligned commercial aspects, the industry’s efforts to draw in fresh talent have been complex. “The true challenge rests in maintaining agility, fostering innovation, and broadening perspectives beyond the immediate product.” His vision sees mere vessel ownership as no longer sufficient. “We aspire to transcend that and cultivate seamlessly integrated solutions, where as an entity we are deeply woven into our customers’ supply chains.” The goal is to assume a more expansive role worldwide, focusing on transportation’s crucial first and last segments. In the wake of the Covid-19 pandemic, as the world has gained a heightened appreciation for the significance of supply chains, the market’s landscape is shifting towards heightened competitiveness. “The demand for efficiency is immense,” he said. “While the challenge can be daunting, it also presents a substantial opportunity for us to enhance and catalyze change by embracing innovative perspectives.” Liesl Venter is a transportation journalist based in South Africa.
Global Outlook 2024
PROJECTS DRIVE, Industry Anxious About People Pipeline for 2024 and Beyond
By Carly Fields
Credit: AAL Shipping
Positivity on the project outlook for 2024 in Breakbulk’s annual outlook feature is tempered by an increasing concern of a lack of talent to service future demand. Experts from different facets of the project cargo and breakbulk industry gave their insight on the key topics of sustainability, flexible working and future fuel choices, while highlighting their top concerns for tomorrow’s breakbulk world.
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Global Outlook 2024
BUT TALENT DEARTH What is your outlook for 2024?
Daniel Duus, global head of logistics, thyssenkrupp: “I expect 2024 will be another very challenging year in project logistics. We will continue to be intensively concerned with the topics of climate protection, inflation, shortage of skilled employees, digitalization, and global trouble spots. The topic of supply chain resilience and risk assessments will also suddenly increase. In such an environment, it is even more important that outstanding networks are formed in project logistics in order to be able to develop, operate and complete plant engineering projects positively despite the unrest. Furthermore, I see the increasing trend towards modularization of our plants, so supply chains will also change and the topic of transport engineering will become increasingly important.”
Fabio Belli, CEO, Fagioli: “We do about 30-35 percent of our business in North America, then we have about 15 percent of our business in the APAC region between Indonesia and Australia with the remaining, let’s say 50 percent, in the MEA region. The markets now that are going very well are Australia – which is booming for mining and liquefied natural gas – and North America, where we have a huge amount of investment. Australia is booming in everything and the potential for projects is really good. There are a lot of barriers – quarantine, fumigation, a lot of rules – so if you are there, you have a big advantage.” Felix Schoeller, director, AAL Shipping: “I think generally, the outlook for projects is absolutely fantastic. I’m very positive. Where the freight rates will be is a different question. You can’t really compare it to
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last year and the year before – these were two exceptional years. Late last year we saw rates coming down very quickly once the container boom was over and we basically reached a “new normal” in quarter one this year. The rates have been fairly stable since. The areas that I’m most bullish about when it comes to project cargo are quite easy – it’s the Middle East and it is the U.S. Gulf. And, of course, Australia is our home market. We are the number one breakbulk carrier in Australia, where we see a lot of mining and renewable energy as well. India is interesting for me because that was my first new route that we developed. There’s a lot of potential, but it remains to be seen whether companies move their sourcing and their procurement to India.” Mark Hollenstein, president – South and Central America, deugro: “Looking at South America’s short-term outlook, we see the biggest excitement in activities related to the offshore oil and gas sector. This includes not only Brazil, the single biggest market on a global basis for subsea-related works,
Global Outlook 2024
“WHEN YOU’RE IN GLOBAL TRADE, YOU’RE INTERLINKING THE WORLD USING TECHNOLOGY.” - MIKE BHASKARAN, DP WORLD but also many other activities in and around Guyana and Suriname. Brazil itself is expecting an increase of 18 units in its floating production storage and offloading (FPSO) fleet from 2023 to 2027. The nominated suppliers for those FPSOs are not only the historical players, but also new operators entering the South American FPSO market. In line with this increase in the FPSO fleet, we will see a massive increase in demand for works related to subsea installations. We have looked at the main cargo movements associated with these significant investments. Part of the shipping may not be directly to/from South America, but within Asia, or from worldwide origins to Asia, where the FPSOs and topside modules are being built.” Mike Bhaskaran, group chief operating officer for digital technology, DP World: “I am very excited about the Far East, Africa and Latin America and the opportunities that we see in trading and new trade routes using technology. When you’re in global trade, you’re interlinking the world using technology.”
we’re investing in the tech space. Lithium and minerals mining is a really growing sector for us, not just because the sector itself is growing but because we haven’t had so much market share. So, we see big opportunity there. We continue to see the oil and gas space and LNG as real projects that we think we can play a part in. We’re working closely with our customers and our partners to see how we can move that forward. We see the Central American-Caribbean area expanding from an oil and gas perspective as well. Renewables is the one where we have invested the most as DHL, to be able to try and position ourselves for a lot of these projects that are coming up. It’s still a space that I think we don’t do enough in as a company, and we really want to continue to make our mark in those sectors. We’ve put sector heads in place to really focus on those to try and understand what the customer wants and what they need and then use that as the platform for us to try and win work.”
What’s the most common concern you are hearing in the market today?
Dea Chincuanco, president Americas, dship Carriers: “Industry Ryan Foley, CEO trends, pain points, Industrial Projects, and sustainable DHL Global developments are Forwarding: typically top of mind “For us, the outlook for shippers, forwarders, and carriers. is very positive. However, the underlying theme of these We’re not the biggest concerns always centers around how freight forwarder in to drive profitability and growth within terms of project logistics, but what we their respective organizations. One of the want to do is continue to grow. For the most prevalent concerns, widely shared various sectors that we’re working in among industry peers and competitors
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alike, revolves around the skills of the future. The dynamics of supply and demand inevitably impact all business activities – especially in logistics and the supply chain, expertise and specialized knowledge are critical to meeting complex requirements while navigating challenges such as weather, costs, and geopolitical events. In the project and breakbulk industry, all three parties involved are increasingly recognizing the importance of workforce sustainability. This pertains not only to the need for younger professionals to enter the industry but also to acknowledging the invaluable contributions that women professionals can make to the workforce.” Fabio Belli, CEO, Fagioli: “One of the main challenges we have is the personnel. You can’t find people. If you look to Australia, but also Italy, in the last few years we have lost 50 percent of the crane drivers. Another problem we have is to find engineers. We have to encourage a new generation to be proud to work as an engineer. No one wants to do engineering anymore because it’s difficult to take responsibility to design a bridge that could collapse. Honestly, I’m quite afraid of what will happen in the future, and I don’t know what the solution is. The fact is that we are moving to a bigger infrastructure moment everywhere in Europe because all the bridges were built after the Second World War. They are all collapsing. How can we replace all this infrastructure without the engineers? There are people of 75-80 years old that are still doing engineering because they like it, but they cannot be replaced. It is a very strange moment.” Felix Schoeller, director, AAL Shipping: “Talent acquisition is a big topic for us. How do you train and retain the talent of the future? The project business we do is very niche and talented young people don’t necessarily know what we’re doing. Our business isn’t as popular as, say, going into consulting or going into banking, so I think we as an industry need to lobby hard at the universities and offer
Global Outlook 2024
Fagioli handles a bridge section in Italy. Credit: Fagioli
good apprenticeships, traineeships, and corporate programs to make sure young people are interested to work in our industry. Another main concern when it comes to the project pipeline is space on the ships. We had a shipping crisis after the financial crisis in 2008 and since 2010 to now, there has been few new building of ships. At AAL, we have a young fleet, our ships are around 10 years old, but there’s also a lot of old tonnage, and there hasn’t been much fleet renewal. With all the projects coming in, there’s not that much vessel supply. Space is limited and the market hasn’t seen massive new building programs.” Mark Hollenstein, president – South and Central America, deugro: “Qualified human resources are a scarcity in our market. As the deugro organization does not historically expand through M&A, but through organic growth, we always seek out the most suited candidate to take on the challenge of
continuing our growth path. The deugro management trainee program, DMP (deugro’s Most Promising), was started 25 years ago by our current co-CEO, Klaus Strahmann, as a totally innovative concept. To date, we have several hundred candidates who have completed our two-year management trainee program. Out of those, a third are still working for deugro and of those, more than 90 percent have assumed a managerial position within the organization. The DMP program was a true gamechanger that helped the organization to grow to where we are today. On a smaller and more local scale, we are also doing the same in South America, in Brazil. The Humboldt School offers a dual education program, in which deugro has been participating for 13 years. Each year, we offer at least one to two students an apprenticeship position. The individuals either go to the school in a block session for one and a half months, or work as an intern in one of deugro’s Brazil offices as a fully integrated
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team member. This permits them to gain early access to the work environment and, at the same time, gain knowledge in our area of expertise. Over the last 13 years, we have had 16 participants, out of which four have already joined the DMP program and more than seven are still working with us in the deugro organization.” Ryan Foley, CEO, Industrial Projects, DHL Global Forwarding: “This is an industry that at some point will run out of people and we need to do everything we can to help bring people in – show them that it’s interesting. We run graduate programs at DHL – we’re a big company, we employ 700,000 people around the world and less than 0.1 percent of the graduates that come into the organization choose to be in project logistics. So how can we make this industry more attractive to people to get them in and come and work for us at DHL and be the future? I joined the company as a trainee on a training
Global Outlook 2024
program and have had a great experience – 20 years this year. We want to make sure that we’re offering those kinds of opportunities to people so that we can continue to feed for the future, because otherwise none of these projects will be able to happen. It’s all based around people; AI is great, and technology and digitization is great, but at the end of the day it’s going to need people to run the project, so we need to continue to invest in that. For me, that’s a key area for all of us and it should be cross borders, across carriers – everyone all focusing on the same thing because otherwise we won’t be able to keep the industry running.”
Is the shift to more flexible working arrangements sustainable in the long-term?
Credit: AAL Shipping
Dea Chincuanco, president Americas, dship Carriers: “The widespread adoption of flexible working arrangements was primarily triggered by the Covid-19 pandemic. In
the logistics and supply chain industry, which comprises both blue-collar and white-collar professionals operating within one of the oldest industries, global trade, the historical norm has been onsite work. However, a significant shift has occurred. According to the Third Edition of McKinsey’s American Opportunity Survey from spring 2022, 58 percent of Americans had the opportunity to work from home at least one day a week, while 35 percent of respondents reported having the option to work from home five days a week. This study encompassed a wide range of job types across all sectors of the economy, including traditional “blue-collar” and “white-collar” professions. In the current landscape where the Covid-19 pandemic is no longer an unfamiliar or highly threatening factor, various industries, companies, and owners have introduced a spectrum of policies regarding on-site work, hybrid models, or remote work setups. Ultimately, the decisive factors revolve around identifying specific segments
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of the workforce that organizations aim to engage alongside the strategic and cultural initiatives they choose to adopt. Given the skills of the future and labor participation rates, the sustainability of flexible working arrangements is tied to the talent pool from which companies can draw the highest levels of efficiency and profitability from.” Mark Hollenstein, president – South and Central America, deugro: “We believe that flexible working arrangements will be beneficiary in the long term and that they are sustainable going forward. We all agree that with the Covid restrictions, we were pushed into the home office, and we made the best out of it. It forced us to start working in different ways. The circumstances have changed a lot since then. However, it hasn’t changed the fact that individuals gain quality time with their families, or time to run errands, when they otherwise would be commuting to the office and back. For example, commuting to work
Credit: deugro
Global Outlook 2024
in megacities like São Paulo may easily take one and a half hours, each way. By providing flexible working arrangements, we attract team members who, at other workplaces, face stringent conditions based on traditional office policies. We have also responded to the post-Covid situation with the opening of a new office in Santos, providing a local workplace for our team instead of their commuting to São Paulo on a three/two basis.”
How can breakbulk companies balance increasing environmental responsibilities against profitability? Dea Chincuanco, president Americas, dship Carriers: “Much like in other industries amidst the Fourth Industrial Revolution, the project logistics and supply chain sector has its own intricate ecosystem. A notable technological advancement that has profoundly impacted global trade is the Internet of Things. In this context, achieving a delicate balance between meeting rising environmental responsibilities and ensuring profitability heavily depends on the purchasing behavior of consumers. This aspect of behavioral economics is particularly
conspicuous in lifestyle industry segments. Here, values and culture are highly visible, as a younger demographic of buyers places significant emphasis on B2C purchasing practices that prioritize environmentally conscious initiatives. These initiatives are more readily apparent and adaptable compared with traditional B2B transactions, where purchasing decisions may not always be transparent. Specifically for breakbulk companies, this balancing act becomes palpable, given the intricate trade-offs between short-term and long-term investments in resource management. The pressure to meet evolving sustainability and environmental standards while managing costs and striving for revenue growth is a significant challenge. Just like any new policy standard, efficiencies must keep pace to effectively handle the rising costs.” Fabio Belli, CEO, Fagioli: “This is a real challenge. We have ESG certification - we’re one of the first in the sector – and we are all looking to the carbon footprint. But today, prices are not reflecting what we are doing to reduce this. We have to invest, but the risk is that you invest a lot, but the price remains exactly the same. This is the challenge we have… but we have to go in that direction.”
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What vessel fuel option will become the fuel of choice for MPVs in the future? Felix Schoeller, director of AAL Shipping: “I can tell you that at AAL, the new building program that we’ve commissioned is dual fuel and methanol ready. That gives a multipurpose player flexibility – ports are not very predictable, so you need to have a technology which allows you to bunker in different ports. There’s a lot of talk about ammonia, however this is potentially hazardous for the crew. Liquefied natural gas is not practical for multipurpose ships because we are running comparatively smaller ships, and it’s very expensive. Hydrogen is simply not a technology that is available, or close to being available, so I believe methanol or dual-fuel ships with methanol are a very good technology to bridge the gap for the next few years, until hopefully there’s a consensus on the propulsion for merchant ships in the future. Of course, the innovation push has to come from the bigger shipping segments – from the container market.” Carly Fields has reported on the shipping industry for the past 23 years, covering bunkers and broking and much in between.
OUTLOOK 2024 BREAKBULK SURVEY What’s ahead for the project cargo and breakbulk industry? Who better to ask than shippers and exhibitors who participated in Breakbulk events this year? Here’s what they had to say on the general project outlook, countries with the most potential for project development, the direction of chartering rates, and much more.
1
2
(Survey based on 268 respondents) Yes
No
Abstain
Will the demand for proect cargo shipping increase in 2024?
78.36%
6.43%
15.20%
Will specialized project cargo vessel capacity grow next year?
43.86%
28.07%
28.07%
Do you expect to bid on more projects this year than last year?
70.18%
14.04%
15.79%
Will geopolitical factors have a bigger impact on projects in 2024? 71.93%
8.19%
19.88%
Is there a likelihood of new trade agreements or partnerships shaping economic activities in 2024?
52.05%
22.81%
25.15%
Is current contract pricing for future transport fair to all parties?
20.47%
43.27%
36.26%
Is friendshoring (manufacturing and sourcing components and raw materials within a group of allied countries) a good solution in this era of global upheaval?
51.46%
15.20%
33.33%
Which country has the most project potential? USA
23%
Saudi Arabia
13%
India
11%
China
6%
Middle East
6%
UAE
5%
Africa
4%
Brazil
4%
Germany
4%
Mexico
4%
3
How many years until renewables investment exceeds that of oil & gas? No more than 10 years
56%
10-20 years
27%
More than 20 years
16%
Comments: • It already has! See IEA World Energy Investment 2023 www.iea.org/reports • After 2035 (population must start to decrease) • Depends on many external factors, including geo-political agendas. • Depends on who will become president in the U.S. in 2024. • Difficult to ascertain with Eastern Europe situation–sooner rather than later. • I do not see the current trend meeting the targets of 2050. • Sometime in 2040s. The new generation will accelerate the investment.
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Global Outlook 2024
4
Will chartering rates be higher, lower or about the same as they are today? 51%
Higher
About the same
30%
Lower
18%
Comments: • Depending on geopolitical situation, we all hope lower but higher if inflation does not drop. • Depending on how many carriers have suitable tonnage but presume for project cargo, rates will be competitive to secure the business. • Higher because of more demand (especially in the wind energy sector) and capacity remaining much the same or even decreasing. • I guess they will be higher due to new CO2 taxes • The wars should be finished, so the rates will be higher.
5
Assessing Technology
New technologies may change the way projects are executed but there are many variables that will affect their impact. Here we asked industry operators to estimate the amount of change they expect from seven well known technologies on a scale ranging from none to total game changer. Autonomous Vehicles: These include self-driving trucks, ships and drones 38%
Game changer
7.21%
Some impact
23.42%
Game changer
6.31%
None 21.62% Minimal impact 20.72% Some impact Augmented Reality (AR) and Virtual Reality (VR)
44.14%
Game changer
13.51%
Some impact
24.32%
Game changer
7.21%
Some impact
33.33%
Game changer
13.51%
Some impact
26.13%
Game changer
2.70%
Some impact
32.43%
Game changer
16.22%
None 27.03% Minimal impact 31.53% Some impact Blockchain and Distributed Ledger Technology None
27.03%
Minimal impact
43.24%
Internet of Things (IoT)
None
30.63%
Minimal impact
37.84%
Robotics and Automation None
22.52%
Minimal impact
30.63%
3D Printing and Additive Manufacturing None
32.43%
Minimal impact
38.74%
Artificial Intelligence (AI) None
22.52%
50 %
Minimal impact
28.83%
None
Minimal impact
Some impact
Game changer
Autonomous Vehicles
Blockchain and Ledger Technology
Internet of Things (IoT)
Augmented Reality (AR) and Virtual Reality (VR)
40 30 20 10 0
Robotics and Automation
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3D Printing and Additive Manufacturing
Artificial Intelligence (AI)
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MIX-N-MATCH FOR AIR CARGO MOVE Logisticians Optimize and Synchronize Equipment to Handle Loads By Malcolm Ramsay
Region: Asia Problem: Forwarders tasked with balancing costs and speed for a testing air freight move Solution: Prioritization of cargoes and forward planning on land transportation permits kept project on track
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Asia
Unloading operations directly onto trailers at George Bush Intercontinental Airport, Houston U.S. Credit: deugro
I
n the high-stakes world of industrial facility start-ups, every ticking second equates to mounting costs. Downtime translates into dollars lost, making the use of airfreight operations for parts a necessity - but there is also a delicate balancing act between costs and speed to manage. Project freight forwarding specialist deugro USA was tasked with meeting those challenges in a recent project involving shipment of 37 pipe spools from Thailand to the U.S. With a total volume of 213 tonnes and 1,628 cubic meters, this record move involved nine charter flights in total and complex coordination to ensure seamless multi-modal, door-to-door delivery for these valuable components. “Facility downtimes cause immense hourly costs,” Gert Jensen, senior vice president operations, deugro USA, told Breakbulk. “Therefore, quick organization, preparation, fastest possible and safe delivery of the urgently needed components were paramount. Against this backdrop, and as several challenges had to be overcome simultaneously - from the planning and preparation phase up to the final delivery - deugro deployed a well-rehearsed international team of experienced air charter, project and transport engineering experts.”
Meticulous Preparation
With capacity in the heavy-lift air charter market tight as a result of the war in Ukraine, one of the biggest challenges was locating and securing aircraft that could not only be available at the right place and at the right time, but which also allowed for loading the oversized equipment. Given the scale of the cargo, the aircraft had to be able to accommodate extremely odd dimensions and complex shapes, with lengths of up to 36.6 meters, widths of up to 5.5 meters and heights of up to 4.4 meters. To make the project more complex, the teams had to first arrange urgent transport of a critical piece of piping from the U.S. to the original manufacturer in Rayong Province,
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Asia
Thailand. This critical piece had to then be incorporated into a fulllength pipe spool, saving several weeks of costly fabrication time. “To have this piece moved from the U.S. to Thailand in the shortest possible transit time, the deugro team secured an AN-12 aircraft within just 24 hours, which was immediately available for departure from George Bush Intercontinental Airport, Houston, and quickly reached the destination,” Pavel Kuznetsov, head of air chartering at deugro, explained. With this part safely delivered the main scope of the project could begin, transporting the giant pipe spools from Thailand to the facility in the U.S. With the cargo including several sensitive components, the team had to carefully scrutinize available aircraft types, loading and lifting equipment, and airport capacities, all of which varied greatly. To address this challenge, deugro worked closely with loadmasters and engineers from dteq Transport Engineering Solutions, or dteq, to craft tailored packaging solutions, design safe and efficient loading methods, and secure supplementary loading equipment.
Founded in 2016, dteq is an independent company of deugro group and provides tailor-made transport and marine engineering solutions, as well as port captaining, surveying and supervision services, and project consulting.
Close Communication
To ensure the timely progress of the project, there was daily interaction between the production plant, client, carriers, transport engineers, and all institutions and service providers involved. Besides this, the team from deugro Thailand also made regular visits to the manufacturer’s site to verify progress on cargo readiness and arrange special packing measures for the cargo. Detailed Toolbox Talks and risk assessments were also conducted prior to each operation to ensure the personal safety of all involved. “Since the oversized cargo units included lengths of over 36 meters, a variety of mobile cranes and trucktrailer configurations, as well as the special permits and police escorts required for road transportation had to be arranged for in advance to ensure
Cargo pickup at the original manufacturer in Rayong Province, Thailand. Credit: deugro
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a timely and smooth delivery of the replacement components from the Rayong plant to U-Tapao Airport,” Kumphol Chatthong, deputy general manager, deugro Thailand, said. When it came to selecting an aircraft, the team faced additional challenges beyond the lack of capacity as loading the larger spools would require a minimum of three cargo main-deck loaders to move through the nose door of a Boeing 747 freighter, and U-Tapao Airport only had a limited number of such units. As a result, an AN-124-100 aircraft operated by Antonov Airlines was chosen for the first three flights, allowing independent loading via the nosecone. The team then contracted a B-747 aircraft from Luxembourg heavy-lift airline Cargolux for the remaining cargoes. “A tailored solution was required to fit this extraordinary cargo and transport it safely. Taking into consideration the size of each piece, the AN-124100 was the only aircraft possible to use,” Vladyslav Ishchuk, commercial executive at Antonov Airlines, said. Besides the critical transportation of the cargo by aircraft, a variety of
Asia
other preparations were essential to ensure the timely and smooth deliveries of the replacement components from the factory in Rayong to U-Tapao Airport, around 50 kilometers away. This was especially pertinent for the exceptionally lengthy spools, measuring over 36 meters. Coupled with the truck-trailer setups employed during pre-carriage in Thailand, the cumulative lengths were over 45 meters. To ensure the secure movement of these oversized components, suitable loading and transport equipment had to be identified. This encompassed the deployment of 80-metric-ton mobile cranes, main-deck loaders, and a range of truck–trailer configurations. Franklin Alvarez, regional director transport engineering Americas at dteq USA, explained: “We used our experience in all modes of transportation along the logistics chain to develop and design cargo frames, enabling the cargo to fit into the aircraft and simultaneously making sure that the cargo can be lifted and lashed safely from the manufacturing yard in Thailand to the final destination in the U.S., resulting in the optimization of the aircraft’s capacity, the reduction of costs for the client and adherence to the tight project schedule.”
Packing Puzzle
For the pre-carriage from the factory to U-Tapao Airport, the local deugro Thailand team prepared detailed road surveys and organized all necessary permits, including gate passes and appropriate approvals for a smooth entry of the cranes and trailers into the airport, ensuring on-time loading upon arrival of each of the individual aircraft and avoiding delays. For the first AN-124-100 flight, a 34.7-meter-long pipe spool was loaded using a hydraulic trailer and extension ramp, ensuring optimal fit and orientation. Subsequently, a more efficient approach was employed in the second flight, loading four large spools through the rear cargo door with synchronized movements of the
Spools with odd shapes and dimensions fixed at a specific angle in metal frames to allow for loading into the AN-124-100. Credit: deugro
onboard crane and hydraulic trailer. For the third flight, 12 spools were transported, with deugro optimizing packing by arranging smaller ones in stackable metal frame bundles. Once the three AN-124-100 flights were completed, deugro turned to the more cost-efficient Boeing 747 freighter to deliver the remaining spools. The next 14 spools were then delivered across four flights, including one which contained the longest pieces of cargo ever moved on a B-747 freighter. “The most challenging spool for example had dimensions of over 7.3 x 5.5 x 4.4 meters and could not even fit in the AN-124-100 because it exceeded the height of the aircraft’s cargo hold,” Franklin said. “To fit this spool in the AN124-100 without modifying the cargo, we designed special metal frames in which these spools were fixed. This solution solved space restraints while providing lifting and lashing possibilities for pre-, main and on-carriage at the same time.”
Arrival in Houston
Given that the majority of flights landed outside regular business hours, often in the late evening or early morning, the deugro USA teams proactively secured special permissions from the Texas Department of Transportation. This allowed the road transport of components, some exceeding 36 meters, outside the typical daylight hours restriction. As the transport had to leave Houston at rush hour, police escorts were also required to provide additional safety during transit from the metro area.
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“To ensure all equipment and resources were available after arrival at George Bush Intercontinental Airport, Houston, on time, close coordination with the ground handling agent, truck driver and crane company was paramount, including special gate entry and exit permissions required due to the extreme cargo dimensions,” Jensen said. With the cargo safely landed at George Bush Intercontinental Airport in Houston, the team deployed specialized Scheuerle and Goldhofer trailers, boasting 30-meter decks, for the onward journey to the job site. “Urgent projects with such a tight schedule, as in this case, prove once more how essential close, transparent and proactive communication and cooperation are,” Jensen added. “Key to successfully delivering such projects safely and according to schedule and budget is a team of experts who have expertise and practical experience in their respective disciplines - be it project management, air chartering or transport engineering.” Echoing this sentiment, the client noted that “success for this project can be measured by the fact that the cargo arrived on or before the site requirements and did so without any damage or safety incidents.” With the cargo all on site, the components were installed in record time and the facility returned to operation with a minimum loss of revenue. Based in the UK, Malcolm Ramsay has a background in business analysis and technology writing, with an emphasis on transportation and ports.
Global
INFLATION SQUEEZE DELAYS PROJECTS New Reality Forcing Contract Rethinks By Jeremy Bowden
P
lanning ahead is never easy, especially when it involves large amounts of capital spent over many years to achieve a major project - like many of the projects involving the breakbulk sector. Recently, inflation and rising supply chain costs have played havoc with many major project calculations, often bid and won in times of far lower cost pressures. According to Offshore Energies UK’s Supply Chain Manager, Graeme Rafferty, supply chain operating costs in the UK offshore sector have risen 10-20 percent over the last year or so, based on a recent survey. A range of factors are responsible for this, depending on the company, but raw material costs in particular have “spiraled”, with 4 out of 5 companies saying they had been negatively affected. “Tier one contractors and SMEs are reporting difficulty in getting certainty on long term costs,” he said, which is making fixed price bidding risky. “Commodity price volatility as well makes it very difficult to agree
lead times for process equipment (tanks, columns, etc.) supply are up 30 percent since the pandemic. “So 50 weeks from purchase order to delivery, has now extended to 65-70 weeks,” with transport and logistics factors playing a key part in the delay, he said. The biggest bottlenecks are in electrical equipment, which is partly due to competition from new renewable on long term pricing.” OEUK Market energy projects as electrification and Intelligence Manager Ross Dornan the transition to renewables picks added that there had been a particularly up speed. “Deliveries of electrical dramatic change between now and equipment now takes 60-75 percent the height of the pandemic in 2020. longer than 2-3 years ago. For example, “Only 2-3 years, and it’s a completely a transformer now takes 60-70 weeks different cost environment.” to be delivered, compared to 35 IPA Global’s Product Portfolio Officer, weeks before.” He said the impact Aditya Munshi, agreed that supply was pretty global, but Europe and chains had been stressed for three years Asia tended to be worse than the now due to price pressures. Based in U.S., with Russia’s invasion of Ukraine Washington, Munshi said that a recent adding extra pressure in Europe. survey of 50 large industrial companies (big oil companies and refiners, chemical producers and miners) showed
Region: Global Problem: Spiraling costs on contracts agreed some years back are causing acute pain points for project cargo handlers Solution: Cooperation encouraged to share the burden and stop projects from being canceled
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Global
S MARGINS,
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Vattenfall remains committed to UK wind farm development despite the cancellation of the world’s biggest offshore wind farm, Norfolk Boreas, due to rising costs. Credit: Vattenfall
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Trickle Down Effect
The rise in costs is now moving from equipment and materials to services, labor and construction. Up to late 2022, engineering services costs and labor held fairly steady at near 2021 levels, with all the rises due to equipment and materials. Now vendors are short of skilled people, and there are delays as a result. “EPC houses, vendors, are all struggling to find and retain talent,” Munshi said, which is resulting in delays and upward pressure on prices. A rise of 6-7 percent in engineering and construction rates is expected this year in some parts of the world, with equipment still rising too but not so fast. “There’s also a lot of fear in the market; commodities are still high, so capex is still there, but EPCs are in terrible shape to ramp up after the pandemic.” Munshi said the logistics element, on the other hand, including breakbulk, was “getting better,” with freight rates down this year. He said freight was included in the 30 percent cost rise since 2020, making up about 8-10 percent of the total delivered cost. Inflation impacts the breakbulk sector in various ways, including factors like port congestion and import backlogs, labor availability, and fuel prices, among others, according to Jaymie Freeman of Cargoos Logistics. These factors squeeze margins, delay orders and extend lead times. Aditya Munshi
The IPA Global research showed that this year only 20 percent of owners are finding it difficult to get freight on board, compared to 40 percent last year. Similarly, now only 20 percent of owners are reporting limited resources at ports, compared to 45 percent in 2022. And vessel availability is even better, with 25 percent of owners now reporting no difficulty, compared to 60 percent in 2022. “This is based on our survey and suggests cost pressures in the freight sector are easing off a bit… Part of [the inflation issue] is freight but there’s much more to it, rates have gone down, but price pressures are still there.” Munshi said looking ahead a year, supply chain inflation was expected to continue, with a forecast of 5-7 percent cost estimate rise overall although this may be revised upwards due to higher fuel costs. “Over the last three months, crude has risen sharply to the mid-US$90s per barrel - as crude goes up, everything goes up.”
Projects Delayed and Canceled
While inflation can squeeze margins for those in the breakbulk sector, it can also result in major project delays or cancellations – which can reduce the total volume of work in the market. The IPA Global research showed 27 percent of companies had postponed at least one project in the last year. Munshi Ross Dornan
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thought this may rise over coming months “because bids for current projects are so high and the cost of capital has gone up significantly – especially if raising money from market. The hurdle (interest) rate is going up and costs are going up, so business cases are moderating. Business feedback is still broadly positive, but it has moderated.” To some extent, any fall in volume in the market should dampen demand and reduce bids but only if vendors survive. “The cure for high prices are high prices”, Munshi said, “but maybe not this time. There is something different this time and that’s new renewable energy, which is often driven by public spending and incentives” such as the IRA (U.S. Inflation Reduction Act), and EU renewable programs. This is expected to drive capital spending not seen in previous cycles, so preventing a softening in inflation and project lead times. “This is demand that wasn’t there before,” he added. The situation is seen at its most extreme in the offshore wind sector, where at least one major project (the world’s biggest, Norfolk Boreas, off the east coast of England) has been canceled, costing Vattenfall US$455 million. The Swedish energy firm, which was building the project, said it would cease working on the wind farm because its costs had increased by more than 40 percent, making it unprofitable. At least one other UK wind farm is thought to be at risk, while the latest UK offshore auction round received no bids. In the U.S., Ørsted - the world’s biggest offshore wind producer - has been forced to incur significant additional charges and delays related to offshore wind projects, leading to huge write-offs and sharp falls in its share price. OEUK’s Dornan said the Vattenfall offshore wind failure and cancellation was a prime example of where companies simply could not make projects work in the current cost
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environment, with a range of factors - materials, supply train constraints and logistics – to blame. OEUK’s Rafferty added that a failure “to recognize the wider inflationary environment - in the case of wind within contracts for difference, and in other cases within contracts – is causing real damage and holding back activity.” Munshi also noted that the chemical sector in Europe had been particularly badly affected, partly due to high energy costs, leading to a lot of shutdowns and delays. Dornan acknowledged that the breakbulk sector is crucial for the offshore energy sector in the UK over coming years: “We’ve got 2,000-3,000 wind turbines to be installed this decade alone. Dozens of offshore platforms need removal, although there are only a few installations. There have definitely been some upward revisions to topside removal costs and heavy-lift needs within the oil and gas sector, as well as wind. He expressed concern that project delays and cancellations would eventually mean less work in the pipeline, which could see breakbulk vessels moving to other regions where the renewable work is being done/subsidized – for example, the U.S. or EU - or where hydrocarbon taxes are lower.
“WE’VE GOT 2,000-3,000 WIND TURBINES TO BE INSTALLED THIS DECADE ALONE” ROSS DORNAN
Margins Squeezed
In other cases, where projects are not canceled, and contracts have already been signed on a fixed price basis without inflation clauses in them (sometimes years in advance), the rising prices have been squeezing margins and causing considerable disagreement between developers, contractors and freight forwarders. EPCs contacted for comment in this article declined, citing the sensitivity of the issue and NDA clauses in contracts with developers and others. What is clear, is that inflation is a huge challenge for the project cargo industry, putting margins under
Danish renewable energy giant Ørsted may write off as much as US$2.12 billion because of supply chain problems at three offshore wind installations off the U.S. East Coast. Credit: Ørsted
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Global
“INCREASINGLY, THERE NEEDS TO BE REASONABLE AGREEMENT ON SHARING PAIN IF MARKETS MOVE. OWNERS DON’T WANT VENDORS TO GO UNDER.” ADITYA MUNSHI
Pickier Vendors
Rafferty said that the experience of being squeezed, combined with an increase in some offshore activity due to higher oil prices, meant contractors, freight forwarders and others were being more selective about the work they took on. “Companies are saying, when a tender does come out, do we want to bid on this. Is this the type of customer we want to work with?” Munshi agreed that project developers must work more closely with their suppliers, and take on pressure and adding a renewed focus OEUK’s Rafferty said inflation was some of the price risk as they were on reducing costs. Until recently, changing the nature of contracts. normally better placed to handle most vendors and contractors did not “Some companies, especially large it. “Increasingly, there needs to be foresee the inflationary pressures, tier one contractors, previously reasonable agreement on sharing leaving many without provisions would go for lump sum models, but pain if markets move. These projects to offset against this risk. If fuel, they are now shying away from that are taking longer and costing more, labor and other costs rise, at least and trying to negotiate inflation and so owners have to be more some of this needs to be passed on mechanisms into contracts.” He said flexible and cooperative – they to customers through higher rates, alternative types of performancedon’t want vendors to go under.” otherwise margins are squeezed, and based contracts were also expected Rafferty added that project little or no return can be made for the to become more popular. These offer developers can no longer pass price shippers and freight forwarders. closer relationships between customer risk right down the supply chain. However, OEUK’s Rafferty said and supplier and switch the focus to “There needs to be a pause to reflect SMEs, logistics providers and value and away from purely cost. on what’s gone wrong and the types suppliers were having difficulty Munshi added that fixed price of contracts used. A balance of risk discussing the issue and passing on commitments had completely and reward is required, which would any of the costs to their customers. “In disappeared over the last two years: involve more flexible contracts, with many cases there’s no mechanism to “Vendors are too risk adverse now. incentivization models and shared ask for an inflation linked rise in cost. Sometimes teams are not able to secure models where both can gain.” He If their customer has agreed fixed quotes that last longer than a week now said recently he had seen examples term rates and is focused on costs, or even a day sometimes,” compared to of suppliers and contractors then they don’t want to accept any 1-3 months previously. He said contract looking at different contract models increases. But contractors can’t afford provisions linked to “current market to see which one would be the to proceed at a price agreed up to two pricing” – tracking market indices best win-win for both parties. years ago.” He said recent offshore for major cost components - were But while there may be workers’ strikes in the UK North Sea becoming more common. “Not everyone, disagreement between contractors had made the situation more difficult. but most project owners are accepting within major projects, there is this now to get vendors to bid. If the a broader danger that the cost Adapting to a New Reality contract terms are not relaxed, then pressures may result in fewer projects However, as inflation rises, logistics they’re not getting any bids,” he noted. overall, reducing the amount of companies are implementing Munshi said that EPCs were available work over coming years. strategies to manage its impact bidding into contracts 30 percent Challenged by conflicts within on their businesses. These include higher than last year – “but we don’t projects and delays and deferrals optimizing their supply chain, see prices have gone up that much of projects themselves, breakbulk adopting new technologies, in just the last year – they don’t want providers could be in for a rough time. and renegotiating contracts to take the risk so are pricing in Jeremy Bowden is a freelance journalist, with their carriers, according contingencies. They can do this when researcher and analyst, specializing in energy to Cargoos’ Freeman. there are so few skilled resources.” matters with a focus on the energy transition. 60 Breakbulk Magazine
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Global
SUPPORT FOR ZERO EMISSION DRIVE By Felicity Landon
Heavy-lift Equipment Stepping Up to Climate Challenge
LHM 420 mobile harbor crane from Liebherr runs on fossil-free HVO100 diesel made of 100 percent renewable raw materials. Credit: Liebherr
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his year, Mammoet announced it was offering a zero-emission option for self-propelled modular transporters, compatible with any trailer in its fleet. The retrofit system “represents another step towards zero emission on site, eliminating the carbon footprint of SPMT transport entirely,” said the company, which developed the SPMT nearly 40 years ago. “The SPMT revolutionized heavy industry by maneuvering practically any load safely, efficiently and with precision. This next step in its story will be just as significant, reducing their CO2 and NOX emissions to nil and pointing the way towards a sustainable future for heavy transport,” said the announcement. Mathias Hoogstra, head of sustainability at Mammoet, told Breakbulk that many customers are looking to reduce the carbon impact of their operations, from the largest projects to the smallest. “Hywind Tampen floating wind farm, with which Mammoet was recently involved, is offsetting 200,000 tonnes of CO2 emissions from industry in the North Sea. Also, many organizations in the civil sector are moving towards a zeroemissions onsite environment. Demand for lower carbon lifting and transport solutions is steadily growing, and our investment in technologies such as the electric SPMT, electric skidding systems, the SK series of cranes, and so on, means we are well placed to help our customers to meet these demands.” Mammoet said it is the only engineered heavy lifting and transport company with a dedicated innovations
Region: Global Problem: ‘Hidden’ emissions from project cargo handling equipment can reduce the green credentials of a project Solution: Heavy-lift machinery manufacturers have come up with a range of options to improve the carbon footprint of SPMTs and cranes
and R&D department separate to operational activity. “So naturally, we are always working on ways to bring additional value for our customers, whether that is lifting heavier, transporting faster or – in this case – working less carbon intensively,” Hoogstra said. “Having said this, we are proud to work with partners across heavy industry and in government to find a path to sustainability for large projects, as was the case here.” Mammoet has 5,361 axle lines of SPMT, with a total capacity of more than 230,000 tonnes. At present, it has capacity for a few dozen axle lines of electric SPMT, but Hoogstra emphasized that the solution has been built to be deployable at scale, and conversion is taking place in line with customer demand. “We expect this to be highest in Europe in the first instance, as stringent environmental legislation in the country means that many of our customers are looking to decarbonize their supply chain. We are proud to be at the forefront of this.” Mammoet said the power pack units, or PPU, vastly reduce noise levels at project sites; in locations where sound restrictions are in place, longer operational windows are now possible. The conversion process involves replacing the diesel powertrain by installing SPMT PPUs. Once retrofitted, each trailer combination has comparable power to existing industry standard units. “The powerpack development requires investment – however, the value it delivers is significant,” Hoogstra said. “It helps to extend the lifecycle of equipment, which is advantageous from a sustainability perspective. As well as helping customers to decarbonize their own operations, it brings down maintenance and fuel costs relative to an internal combustion engine (ICE) solution. With tens of thousands of SPMT lines globally, this is also a significant step towards making heavy industry sustainable over the long term.”
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Mammoet’s SK series of cranes can be fully electrically operated, he added, and the company is working on retrofitting other equipment to operate from battery or mains electric power. “We are also actively purchasing world-first electric equipment from our existing suppliers.”
Battery Drive Options
Konecranes has offered electric-driven Konecranes Gottwald mobile harbor cranes, or MHC, for many decades and every Konecranes Gottwald MHC is retrofittable with external power supply, Robert Vennemann, MHC marketing manager, told Breakbulk. “When terminals have harbor mains, we offer these cranes with external power supply for many voltage areas. Since the market launch of the most recent Generation 6 in June 2021, Konecranes now provides a battery drive for all its models. These battery systems offer sufficient power for traveling the crane and some cargo movements when the crane is unplugged.” Konecranes helps customers to reach their climate targets by offering equipment with low-carbon power options and energy-saving solutions, said Sustainability Manager Laura Sarkkinen. “For example, regenerative braking and electric alternatives for terminal operations can reduce the product lifecycle emissions during its use phase by 60-80 percent, according to Life Cycle Analysis calculations verified a third party.” However, Sara Malagoli, marketing specialist for lift trucks at Konecranes, noted an important point: “When talking about zero emissions equipment, let’s be clear – there is no such thing as a zero-emission vehicle. Steel body panels don’t grow on trees. Lithium doesn’t flow out of the ground and into battery plants. Electricity – even if it’s generated by solar panels – isn’t captured without a great deal of capital and carbon expense. There is too much focus on ‘tank-to-wheel’ while it should be from ‘well-to-wheel’ emissions.”
Global
Mammoet’s new electric SPMT system is initially available for transformer transports in the Netherlands. Credit: Mammoet
CO2 emissions from machines, or tail-pipe emissions, are nil for battery electric vehicles (BEV), and up to 2.6 kilogram per liter of diesel for ICE, Malagoli said. “Considering also CO2 emissions from the generation of electric energy for charging the BEV batteries, the total ‘well-to-wheel’ emissions vary from essentially zero (renewable electric energy) to even worse than ICE (electricity generation from coal power). However, in most cases ‘well-towheel’ CO2 emission is significantly lower for BEV than for ICE.” Konecranes has chosen a stateof-the-art, responsibly sourced lithium-ion NMC battery-electric solution with the greenest cells in the industry, 95 percent recycled for its E-VER electric forklifts, Malagoli said. “When it comes to lift truck products, we offer various Ecolifting solutions such as Power Drive and Flow Drive to reduce fuel consumption, carbon emissions and costs while keeping the same equipment performance.”
Array of Choice
Breakbulk equipment manufacturers hear customers asking for a variety of potential solutions today: everything from 100 percent battery electric vehicles through to hybrid drives, CNG ICE and even hydrogen ICE powered machines. “Today it feels like there is a vast array of potential technological solutions being developed and no one knows which will be the dominant solutions for the future,” said Jeffrey Stokes, Konecranes director product and technology management, Lift Trucks: “Often we see customers have clear ambitions or commitments when it comes to sustainability and carbon emissions reductions, and they approach us to support them in this. However, they often have a slightly different opinion of how this should be best done. Often key aspects like their operational function, geographical location or local natural resource availability will sway them to a certain type of technology solution and they come to us asking us to support that.” There is pressure out there, Stokes
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added: “Some of it from clients, some from company boards of directors, or local regulatory bodies – some even from a self ‘do right’ principle. There seems to be no single common drive – it can be quite local and individual.” Creative and positive regulation changes, or carbon taxes, could drive change faster but there needs to be a practical approach as well, he noted; it is pointless to push for full electrification unless you have plans for the infrastructure to charge the equipment with. Funding will continue to go a long way to help innovation, he said, “but the crux comes when the funding stops and the hard reality of technology readiness and commercial viability become key. This we have seen in our industry over the past decade and in other adjacent industries, and I am sure will continue to be the case for whatever the future brings.” In practical terms, the main challenge for MHCs is the high power demand of cranes handling heavy cargo or providing high handling rates, Vennemann said.
Global
“Using harbor mains has been the easiest way for decades but batteries don’t deliver enough power density for such unplugged applications at the moment. But this is maybe just a matter of time in the overall development process.”
All-Electric Portfolio
Liebherr said that besides its wellestablished hybrid options, it continues to expand its portfolio of all-electric options. One of Liebherr’s latest developments in the heavy-lift ship crane sector is the all-electric LS 800 E, which offers lifting capacity up to 800 tonnes and tandem lifts up to 1,600 tonnes. Meanwhile, the LHM 800 MHC, described as the most powerful mobile harbor crane in the world with lift capacity up to 308 tonnes and tandem lifts up to 616 tonnes, is available with electric drive and systems such as Pactronic, Liebherr’s hybrid drive system; this features an additional energy storage device, or accumulator, which is charged when the load is lowered or if there is surplus power from the conventional drive unit. Liebherr describes the Pactronic system as an impressive power booster which speeds up lifting and lowering times without changing the primary power and reduces fuel consumption. “For more than a quarter century, Liebherr mobile harbor cranes do not emit any CO2 during operation when our electric drives are in operation, according to Scope 1 GHG protocol, and provided that the customer has the corresponding infrastructure,” said Mathias Haugner, marketing manager – maritime cranes at Liebherr-MCCtec Rostock. “The expansion of the infrastructure is therefore the key to sustainable operation of the port equipment. In the MHC sector, we are focusing significantly on electrification (E-Drive), HVO and efficiency improvements such as Eco-Mode and Pactronic, which will continue in the future.” Liebherr’s focus is not only on new equipment – younger diesel-powered
TOP: World’s first mobile harbor crane with battery drive. Credit: Konecranes
ABOVE: The ePPU during an earlier test phase at Mammoet’s yard in Schiedam, the Netherlands. Credit: Mammoet
equipment in the field can be converted. “In addition, one of our standout programs is Liebherr Reman. It is not strictly related to retrofitting diesel engines for electric power, but up to 75 percent of raw materials and energy can be saved through the remanufacturing of used components and the CO2 footprint is reduced by over 50 percent.” An increasing number of customers are demanding electric drives in the MHCs they purchase, Haugner said. “There are also customers who require proof of sustainability in the manufacture and operation of our mobile harbor cranes. We are able to provide this evidence. One example is a gold award in the EcoVadis rating.” With customers creating sustainability or zero-emission strategies for the midterm future, as
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a supplier, Liebherr demonstrates the possibilities and vision for a “hand-in-hand alignment” he added. Liebherr’s pre-development and innovation management team looks at the megatrends and one example of its focus on new technical solutions and gathering of knowledge is the group’s battery competence center. “We’ve seen an increase of as much as 280 percent between 2019-2022 of cranes with electric drives. Hybrid drives have also been offered for over two decades, demonstrating that there has generally been a demand for providing electrification in operations by our customers,” Haugner said. Felicity Landon is an award-winning freelance journalist specializing in the ports, shipping, transport and logistics sectors.
Asia
AAL Singapore transports critical Toshiba-built power station components from China and Japan to Queensland, Australia. Credit: AAL Shipping
SECOND TIME’S A CHARM Degradation of Bridges Calls for New Thinking
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ending replacement parts to existing sites is often deemed a simpler endeavor than launching greenfield projects. However, as heavy-lift specialist AAL Shipping (AAL) and global logistics firm DB Schenker discovered in a recent Australian undertaking, this assumption doesn’t always hold true. The project involved transport of a massive transformer and generator as well as 600 cubic meters of accompanying accessories and required detailed planning from the outset. Working on behalf of Japanese multinational Toshiba, DB Schenker was contracted to move a range of
heavy-lift cargo components for a power plant in central Queensland, Australia that was initially built in 1999. Fast forward 22 years and a new generator and transformer were required urgently as part of a US$200
Region: Asia Problem: A 2022 repeat of a project first undertaken in 1999 exposed new infrastructure challenges Solution: Project specialists reduce axle ratings and work with millimeter precision to safely deliver the cargo
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By Malcolm Ramsay
million project to fix damaged turbines and return one of Queensland’s newest and most vital coal-fired power plants to full capacity, after several power outages from the NSW border to the north of Cairns. The logistics of what should have been a fairly simple and standard heavy-lift shipping and specialized road transport delivery scope became an increasingly difficult transport engineering “Pandora’s box,” Bernd Schuler, head of ocean chartering for Asia Pacific at DB Schenker, told Breakbulk. “The reality as it turned out was vastly different.”
Asia
In 1999, the original power plant components had arrived at Auckland Point 4 wharf in Gladstone and were then lifted directly into a girder beam trailer before being driven 315 kilometers to site. While the same trailer was still available, and some of the same people were still employed at the company that did the original move, ageing public road infrastructure meant the trailer axle weights used in 1999 now exceeded the current weight ratings of several bridges enroute from Gladstone Port to the site. “Wherever our project team turned for transport routes from the various Australian east coast ports between Brisbane and Mackay, it ended at a dead-end with no possibility to cross a certain bridge enroute due to the bridge trailer axle weight limitation,” Schuler said.
Selecting a Carrier
Having studied the various routes in detail, and working closely with Gladstone Port, DB Schenker formulated a plan to circumvent the first few bridges, but this required transshipping the largest heavy-lift units - a generator and transformer each weighing over 250 tonnes. To achieve this, the firm brought in the services of project heavy-lift specialist AAL to oversee transfer from the main vessel berth to a tug and barge as well as manage delivery of some of the cargo from its origin in China to final destination in Australia. “AAL was selected for the project due to its long-standing relationship with DB Schenker, history of strong performance on Toshiba cargoes, and the reliability of AAL’s monthly AsiaEast Coast Australia Liner Service, on which this latest cargo was shipped,” Chris Yabsley, chartering manager at AAL Australia, said. Among the first items to arrive at Gladstone was the giant generator unit, which was delivered to Gladstone in Sept. 2022. This arrived aboard a SAL heavy-lift vessel from Yokohama,
Japan, and had to be stored temporarily in Gladstone Port until November as it awaited the arrival of the transformer and ancillary cargo. The temporary storage of the generator in Gladstone was required due to a shortage of suitable sized landing crafts or barges on the east coast of Australia until the November window when the barge Cronos from Heron Construction New Zealand became available as it sailed to Australian waters for a five-year survey inspection before returning to its New Zealand home base. In Shanghai, the transformer was loaded aboard AAL’s 31,000 deadweight mega-size A-Class heavy-lift MPV AAL Singapore in November and was initially bound direct for Australia, but logistics considerations resulted in a rerouting. “Whilst loading the transformer in China and before her sailing to Gladstone, our client requested if the AAL Singapore could deviate to Yokohama in Japan and load other critical accessories for the same project, which we were happy to do,” Yabsley said.
Having made the detour to Yokohama, the AAL Singapore finally arrived in Gladstone in mid-November and discharge operations commenced. “AAL was then further engaged to harness our vessel’s heavy-lift cranes and transfer the large 276-tonne generator stator from wharf laydown to a waiting barge, which we again executed seamlessly,” Yabsley said. With all the auxiliary cargo from Shanghai and Yokohama offloaded from the AAL Singapore, the stored generator was temporarily re-loaded onto the AAL Singapore, before transshipping to the barge deck. As the transformer and gen stator both had to be perfectly positioned by AAL’s cranes to avoid unbalance, the discharge could also only take place during daylight hours. The tug and barge then sailed 9 kilometers upstream from Gladstone harbor to a shallow draft berth, allowing roll off the barge via self-propelled modular transporters, considering the tidal windows and minimum underwater clearance necessary.
There were “numerous obstacles” in the 302-kilometer journey overland to the power plant. Credit: DB Schenker
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AAL’s vessel heavy-lift cranes transferred the 276-tonne generator stator from wharf laydown to the barge. Credit: DB Schenker
Land Move Tests Mettle
Having transported these components 7,000 kilometers from Yokohama and 7,335 kilometers from Shanghai without issue, some of the greatest challenges were still to come as the team faced numerous obstacles in the remaining 302-kilometer journey overland to the power plant. For this section a set of Cometto platform trailers were utilized in 2x14 configuration. “The Cometto trailer was chosen due to its wider wheelbase, allowing its wheels to travel closer to the bridge girders than a traditional Goldhofer trailer at a maximum width of 3.6 meters,” Schuler explained, adding that axle loadings were 19.3 tonnes per axle with a total width of 4.3 meters. Unfortunately, the load carrying capacity of three out of fifty-eight bridges and culverts along the route had been derated and required an axle rating as low as possible. After much calculation and pre-planning, the team were able to achieve a final solution with 16.2 tonnes per axle
and just 2.1 tonnes loading per tire. “To achieve 16.2 tonnes per axle loading, a customized bridge crossing procedure had to be developed which included an additional 6-axle Goldhofer THP being positioned directly under the load for vulnerable bridges at Raglan Creek, Neerkol Creek 1 and Neerkol Creek 2,” Schuler explained. As part of this solution, the 6-axle Goldhofer THP had to be manually steered as it crossed the bridges, due to strict lane control requirements resulting from degradation of the supports under the bridge beams. To meet these tight lane control requirements, the team had to keep the trailer within 150 millimeters of the bridge center line. Lines were painted on the three vulnerable bridges so that the trailer operators could steer the prime movers, 14 axle trailers and the 6 axle THP all within the 300-millimeter window of the center line. “Maintaining the center line of the entire long combination within the 300-millimeter window proved
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extremely challenging as all bridge crossings were done in the night with limited visibility and full road closures,” Schuler said. “Bridge strengthening works for one of the bridges couldn’t be completed for the first planned transport schedule, and the bypass route also had to be planned with civil and roadworks.”
Broad Partnerships
DB Schenker worked closely with the power station owners, heavy haulage specialist Lampson Australia for specialized transport scope and also with the Department of Transport and Main Roads (TMR), Rockhampton Regional Council and Gladstone Regional Council to prepare the route. “The generator stator was transported in a 116-meter-long convoy, consisting of four prime movers and a beam set carrying the load with its weight distributed across two trailers,” a spokesperson for the power station owner said. “Like the transformer, the generator stator followed a route
Asia
that had been carefully planned and approved by TMR to ensure the safety of road users and support the logistics of transporting such a large load.” In total, the transformer transport, including four prime movers, had a total weight of 622 tonnes, and measured 5.8 meters in height and 4.45 meters in width. The generator transport combination, in contrast, weighed 640 tonnes, measured 5.75 meters in height and 6.30 meters in width. On top of these challenges, 16 kilometers of the route was over partially unsealed bypass roads which required major civil and roadworks for culvert and floodway crossings. This included the cut back of both the entry and exit shoulders of one section of road as well as infill and raising of a road surface by 2.5 meters to avoid a 250-meter segment of unpassable gully with floodway section.
“The first night transport for the transformer involved one bridge crossing using the special procedure with the Goldhofer THP and during the second night the detour route was successfully defeated. The cargo finally reached the power station safely on the fourth night thanks to a great team effort by all involved,” Schuler said. Having delivered the transformer, a second transport with the generator began and this time the journey was shortened to three nights on the road without the bridge detour route, allowing the final component to arrive safely in January 2023. Schuler concluded: “The entire supply chain for a project like this is only as strong as the weakest link in the entire chain, consisting of many DB Schenker offices, suppliers and partners in different countries and modes of transports which needed to
be orchestrated. The more challenges we face, the more interesting it gets for us. A difficult but ultimately rewarding project requiring out of the box thinking with engineered solutions, executed with our premium partners in +50,000 manhours incident- and injury-free to the full satisfaction of all stakeholders.” Yabsley agreed on the vital part that collaboration played throughout, concluding: “The biggest challenges we faced were the complex heavy-lift operations themselves, shore-ship transfers, and making all critical delivery dates to meet barge, tide, and local authority deadlines. This was only possible with strong communication, flexibility, and trust between supply chain stakeholders.” Based in the UK, Malcolm Ramsay has a background in business analysis and technology writing, with an emphasis on transportation and ports.
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Europe
NEW ERA IN CARBON
ACCOUNTABILITY MPVs Ready Themselves for EU Emissions Trading
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he European Union (EU) has embarked on a mission to set a price on greenhouse gas (GHG) emissions from all ships over 5,000 gross tonnage, including multipurpose vessels, through its Emission Trading Scheme, or ETS. Effective from 2024, this initiative marks a pivotal moment in international shipping and could serve as a blueprint for global adoption by the International Maritime Organization.
The EU ETS is an emission cap-andtrade system designed to curtail carbon emissions within the European Union. It sets a cap on the total allowable emissions and allows companies to trade emission allowances. This cap diminishes annually, aligning with the EU’s ambitious climate goals – a 55 percent emissions reduction by 2030 and climate neutrality by 2050. Starting from 2024, ships above 5,000 gross tonnage engaged in
There is a lack of clarity of who will pay the bill for the increased costs of the ETS. Credit: UHL
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commercial activities within the EU must acquire and surrender emission allowances for their GHG emissions. The EU has outlined a gradual expansion in the coming years. Beginning in 2024, methane (CH4) and nitrous oxides (N2O) must be reported, with emissions included in the ETS from 2026. General cargo and offshore ships ranging from 400 to 5,000 gross tonnage will be subject to the EU’s Monitoring, Reporting and
Europe
Verification (MRV) starting in 2025, with potential ETS inclusion to be evaluated in 2026. The EU’s MRV is mandatory and was introduced in 2017 as the first step in a larger process to collect and analyze shipping emissions data. Non-compliance with the EU ETS regulations comes at a significant cost. Companies failing to surrender allowances face an excess emissions penalty of E100 per tonne of CO2 (tCO2). Importantly, they remain responsible for acquiring the required allowances. If a company repeatedly fails to comply for two or more consecutive periods, it risks being denied entry into the EU for all its ships – a serious threat to European MPV operators.
Peter Norfolk, global head of freight pricing at S&P Global, underscored the complexity of implementing alternative fuels for tramp and spot voyages, common in the MPV sector. He pointed out: “When we’re talking about tramp voyage, or spot voyages, who knows where they might change destination to halfway through. It’s a slightly The EU ETS, in essence, imposes more complicated story in terms of a surcharge on fuel, primarily having the available infrastructure due to the limited availability of around those alternative fuels.” alternative fuels, Jackson added. But despite the challenges, the Once the EU ETS is in full swing, maritime industry must align itself with a two-tier market seems imminent. global decarbonization goals. There is Jackson explained: “The U.S. hasn’t a need for innovation and collaboration come out with its ETS yet and the to achieve those goals. Kostas Gkonis, UK is coming up with its ETS. But at secretary general of Intercargo, the moment, if those systems aren’t speaking an S&P Global event, said: Implications for MPVs fungible, they don’t recognize each “To achieve decarbonization, we The EU ETS is set to exert a substantial other.” This complexity may lead to need to go into ship designs, new influence on the operations, costs, inefficiencies in the market, creating technologies, alternative fuels. These and contractual agreements of opportunities for MPV ship owners and are in the direct remit of shipbuilders multipurpose ships. As of May 2023, adding barriers to entry for newcomers. and engine manufacturers.” the ETS emission allowance price Regarding other market-based Gkonis also noted that the stood at approximately €90 per tCO2, measures, China’s national ETS started challenges of the ETS are particularly adding €290 to the cost per tonne of operating in 2021 and covers power acute for small and medium sized fossil fuel combusted. This represents production only at the moment. The companies - the backbone of the MPV nearly a 50 percent surge in fuel planned expansion of its ETS into seven sector. “These are transformational costs for operations within the EU, new sectors does not include shipping. times,” he said. “The IMO and these assuming a fuel cost of around E600 However, the national market has been regulators set the broad framework per tonne, according to data from DNV. built on the successful experience of within which the industry needs to “This will be the first time that local pilot markets. The Shanghai ETS evolve and operate. When it goes ships in international trade are subject market has included local shipping down to the company level one needs to a carbon price, and the EU ETS companies and ports in its carbon to adopt an agenda that best reflects is expected to have a significant emission allowance management the challenges that are currently financial impact,” DNV said. unit list since 2021, indicating that being faced and what they do to deal Mark Jackson, CEO at The Baltic the national ETS could be further with them in their due diligence. Exchange, explained the dynamics of expanded as well, noted DNV. “This is why I often argue that regulatory adoption at a Reed Smith the decarbonization agenda is not seminar. While acknowledging the initial Shippers and the appropriate one for shipowners. challenges and uncertainties within Burden of Costs Instead, it’s the ESG agenda, and the EU ETS, he believed that these Chris To, global containers managing the sustainability agenda. This is could create opportunities. Jackson editor at S&P Global, pointed to the more relevant as it better reflects explained: “For a lot of the smalluncertainty surrounding who will the current challenges. It’s a medium sized companies, the de-risking bear the costs of the EU ETS. He question of shifting mindsets.” is just don’t go there. It’s as simple noted: “There is a lot of lack of clarity as that. And that in itself presents and opacity with regards to who will Joint Efforts opportunities.” He anticipates that be footing the bill, and that kind of Global logistics giant DHL Industrial pioneering companies specializing in goes across all shipping markets Projects has set the bar high trading EU allowances, or EUAs, will gain in general.” This ambiguity raises with its “Mission 2050.” Speaking a competitive edge, thus transforming questions about how these costs will with Breakbulk, Torben Waalkes, the breakbulk market landscape. be distributed along the supply chain. global head of marine chartering,
Region: Europe Problem: Regional emissions regulations set to complicate MPV trading from 2024 Solution: Operators to work with shippers and freight forwarders to share the burden
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Europe
ETS is expect to disrupt European trading patterns, meaning more MPVs will be needed. Credit: Jumbo
emphasized the need for collective efforts to decarbonize the logistics sector: “Decarbonizing logistics is a joint effort and requires clarity on regulation and reporting procedures.” His thoughts were echoed by Elpi Petraki, WISTA International President, who called for unity across the industry: “Definitely we need everybody from energy makers to the suppliers of energy to start making big steps. We are there waiting, seriously waiting to see what this is. Everybody knows that something has to be done. We have to move forward. It’s not an easy way and we don’t have the solutions ready.” She suggested that the biggest ship owners lead the way as they have the resources to experiment. “There is a will, but we have to find a way,” she said. MSC has already declared its intentions for its container ships, which also carry project cargo. In a customer note, the carrier said: “As a result of the EU ETS implementation, we anticipate higher operating costs to be compliant. Customers will therefore contribute to this added cost through a manifested surcharge called ETS. The surcharge will be applied to all Spot and Long-term contracts, existing and new ones.
“Furthermore, given the phased-in approach decided by the EU, we expect the cost of compliance to increase over time, further impacting operating costs for the next three years.” S&P Global’s To pointed out that the ETS is “a little bit peculiar” because it goes against the polluter pays principle that EU legislation generally promotes. “Carrier companies have been suggesting that this additional surcharge will be passed down to the shippers and the customers themselves. Then the shippers are saying that we are not going to be paying some of these costs on these overhangs for decarbonization. So, who is actually going to be paying? That’s a very, very interesting question.” He foresees the creation of a block charge that might be passed down to the shippers and potentially to the customers. But, overall, there is “a lot of lack of clarity and opacity in regard to who will be footing the bill.” The Baltic Exchange’s Jackson agreed that there are a lot of grey areas and therefore, in the initial phase, there will be opportunity to make money out of the regulation - with one caveat: “I always come at regulations saying ‘don’t make it your core business’. It
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should be icing on the cake. You should already be trading your trading pattern and should already be going to that EU area and then you decide whether you want to preserve it or not.” He added that the ETS could be bad for the consumer and relatively good for business services because split markets and grey areas provide opportunities. But there will also be more disputes, more delays, more problems, he said. “The trading patterns are disrupted so therefore you’re going to need more ships.” The inclusion of multipurpose ships in the EU ETS signifies a pivotal moment in the global shipping industry’s journey towards carbon accountability. While it presents challenges in the form of increased costs, it also offers opportunities for innovation and sustainability. Stakeholders across the breakbulk and project cargo supply chain must collaborate to ensure that these costs are appropriately managed through contracts between ship managers, owners, charterers, and cargo owners. Carly Fields has reported on the shipping industry for the past 23 years, covering bunkers and broking and much in between.
Thought Leader By Christoffer Dam-Larsen
WHO IS GOING TO BITE EU ETS BULLET? Surcharges Will Put Strain on Breakbulk Relationships
A
s we get closer to the official introduction of the EU’s Emission Trading System within the shipping sector, owners and shippers are surely starting to ask: Who is going to pay? Let’s be honest, the end client will more than likely end up absorbing this additional tax on top of the freight cost. But what seems less clear is how the invoice will be presented… if it is being presented at all. Container lines have already flagged fixed surcharges on to freight rates. Some liner services, like Maersk, have even added a plot twist: Choose our ECO Delivery and avoid the surcharges. Their alternative is a more environmentally friendly type of fuel, which naturally comes at a premium compared with the most used available bunker types. In other words, there is no escaping from a freight increase regardless of direction you take. Having said that, this at least gives customers the chance to play the cards to their advantage, especially when forming their sustainability strategy. A clever move by Maersk, and others who may be as like-minded. For the multipurpose and heavy-lift sector, the horizon seems a bit more unclear in respect to splitting the bill. One could fear that this will become yet another add-on, adding to the already existing list of extras carriers charge shippers for, for example, Bill of Lading fees, engineering fees and maintenance fees, to name just a few. The method reminds me of a recent experience with a plumber at my apartment. The hourly rate presented in his offer looked fine, but when I received the final invoice, I had paid an additional surcharge for the usage of his car, in addition to road tolls and parking fees, as well as a surcharge for the use of his tools. Sure, it is
Christoffer Dam-Larsen
difficult to maintain a profession as a plumber without transport and tools and wear and tear should be compensated, but why not include it in the hourly rate? Post-fix disagreement avoided; instead, those two lines on the invoice worth €130 left a bitter taste on a job that cost €6,000. In the same manner, shipowners should consider whether the time
is right to include minor add-ons, as well as the incoming ETS tax, within vessel day rates. Owners and commercial managers should already have software to assist in the calculation of ETS taxes as part of their voyage calculations. From there, it is a reasonable task to create an overview of the average expected cargo moving to and from Europe. This would be a welcome hand for shippers, who are already struggling to guess what tomorrow will look like. Yes, this would be an administrative initial burden to the carriers. However, considering the potential ongoing stress of generating these invoices for clients, it should be a bullet worth biting. Christoffer Dam-Larsen is heavy-lift and transport chartering manager at Ocean Installer AS.
How will MPV carriers handle fuel-related surcharges? Credit:UHL
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Americas
Melanie Kenderdine delivered the keynote speech at Breakbulk Americas 2023. Credit: Hyve
HARNESSING OFFSHORE WIND TO RESHAPE US
ENERGY LANDSCAPE Nearly 100 Vessels Needed to Meet Project Pipeline
M
elanie Kenderdine, principal and executive vice president of the Energy Futures Initiative, delivered a keynote speech at Breakbulk Americas that shed light on the evolving landscape of U.S. energy markets and the imperative of developing a worldscale offshore wind sector. She discussed critical aspects of the energy transition, such as greenhouse gas emissions, renewable portfolio standards, and the offshore
wind industry’s growth and potential. Kenderdine kicked off her presentation by emphasizing the importance of understanding greenhouse gas emissions, with a particular focus on carbon dioxide (CO2) and methane (CH4). While methane has gained considerable attention, she argued that its impact might be overrated due to its relatively short atmospheric lifespan of 10-12 years. In contrast, CO2 can persist for
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thousands of years, accumulating with each passing year. Kenderdine’s message was clear: tackling CO2 emissions should be a top priority for mitigating climate change. Kenderdine presented a breakdown of U.S. greenhouse gas emissions by sector. Notably, transportation and electricity were the leading contributors, responsible for 27 percent and 25 percent of emissions, respectively. Comparing this with global
Americas statistics, the U.S. places a significant emphasis on transportation emissions, with a higher percentage than the rest of the world. Consequently, the rise of electric vehicles in the U.S. holds immense importance. Conversely, power generation emissions in the U.S. were relatively lower than the global average, accounting for 25 percent of emissions compared with 35 percent worldwide. This led Kenderdine to underscore the significance of renewable energy, especially offshore wind, in reducing emissions and transforming the U.S. energy landscape.
Global Net Zero Targets
Kenderdine highlighted the global shift towards net-zero emissions, with 128 countries and self-governing territories setting ambitious climate targets in 2022. Notably, 60 percent of the world’s countries are committed to achieving net zero. This trend is mirrored in the corporate sector, with 702 publicly listed companies from the Forbes Global 2000 also adopting net-zero targets. Investors are closely monitoring these commitments, and governments worldwide are introducing policies to support them, including offshore wind initiatives. Offshore wind was put forward as a key driver in achieving these net-zero goals by Kenderdine. She highlighted
the development of renewable portfolio standards in U.S. states, especially in regions along the coast and in the Great Lakes area. These standards and commitments reflect the urgent need to transition to clean energy sources. By 2040, these standards could drive the installation of a massive 42,730 megawatts of offshore wind capacity, transforming the energy landscape. Detailing the advantages of offshore wind over other renewable sources, Kenderdine noted that offshore wind boasts a higher capacity factor compared with solar and onshore wind. The capacity factor for offshore wind is around 45 percent, ensuring a more reliable source of energy. Using the example of spaceconstrained New England, Kenderdine examined how much wind and solar would be needed to replace the region’s oil, gas, and nuclear generation. “I wanted to know, based on the capacity factors, what would I have to do to replace all of the nuclear, gas, and oil generation with 100 percent solar PV with a capacity factor of 24.5 percent. I would need 59,826 megawatts of generation capacity, and I would need 57 square miles for that, while 194 square miles would be needed for onshore wind generation capacity to replace nuclear, gas, and oil.” With limited space to accommodate that onshore wind capacity, Kenderdine
Paulsboro Marine Terminal, South Jersey Port. Credit: South Jersey Port
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turned to offshore wind with a 45 percent capacity factor. “For the same capacity you’re installing, you’re getting a lot more actual generation. That’s an important point: in a spaceconstrained region, you can do it offshore. You would need 2,183 wind turbines out there and that’s huge, but it’s important for a region like New England where you don’t have space.”
US Offshore Wind Pipeline
In an overview of the U.S. offshore wind pipeline, Kenderdine highlighted states like New Jersey, New York, Massachusetts, California, North Carolina, and Delaware, which have taken substantial steps in offshore wind development, with a combined capacity of 24,596 megawatts that are under site control. These states are paving the way for a future powered by offshore wind. “There’s a huge amount of activity moving towards offshore wind – it’s very, very significant,” she said. The total onshore and offshore wind-generated capacity in 2021 in the entire U.S. was 133,000 megawatts; the total offshore wind generation capacity approved, permitted, or under site control – so very advanced in the process – stands at 26,674 megawatts. “That’s 35 percent of the total onshore and offshore wind generation that already exists,” she said. To support this growth, Kenderdine
Americas
stressed the critical need for developing infrastructure. This includes marshalling ports, manufacturing facilities and a robust domestic supply chain. Her figures pointed to the requirement for at least 34 new manufacturing facilities, an investment of over US$11 billion in marshalling ports, and substantial resources for deployment. These developments are poised to create thousands of jobs and foster U.S. economic growth. “For marshalling ports for offshore wind, you need a huge, huge amount of space and weight, load, and protection,” she said. “The manufacturing ports, again, are very important – we need to be manufacturing close to the ports because you can’t transport these wind turbines that are as tall as the Eiffel Tower.” To deploy the planned offshore wind pipeline in the U.S. will require 2,100 wind turbines, 6,800 miles of cables, 4 to 6 installation vessels, 2,100 foundations, 58 crew transfer vessels, 4 cable lay vessels, 11 service operation vessels, 11 service operation vessels, 4 to 8 transport vessels and 12,300 to 49,000 jobs. “We need 87 to 99 vessels alone to meet the 30 gigawatts by 2030,” she concluded.
Resources/Investments Needed for Offshore Wind by 2030 Investments in Manufacturing Facilities Needed to Establish Supply Chain by 2030
Required Resources to Deploy 30 GW of Offshore Wind Energy by 2030
2100
2100
$3.5 billion
58
$1.3 billion
Foundations
Wind Turbines
6800
Wind turbines
Crew transfer vessels
Miles of cable
4-6
Substructures
11
Wind turbine installation vessels
Service operation vessels
4
2
Cable lay vessels
Scour protection installation vessels
4-8
4-6
Transport vessels
Heavy lift vessels
87- 99 vessels needed
$22.4 billion of investments needed
Electrical components
$3.5 billion Installation vessels
$8 billion Ports
https://www.nrel.g ov/wind/offshoresupply-chain-roadmap.html
12,300-49,000
$1.8 billion
Full-time equivalents average annual workforce
$3 billion Steel plates
$1.3 billion
Offshore Wind: Issues, Needs
Other components
Reference Frames for New England Installed Capacity/ Dispatchable Technologies: 100% Wind & Solar Replacing Oil, Gas & Nuclear 2019 Installed Capacity/Avg. Capacity Factors* 15,803 15,803 MW MW Natural Natural Gas Gas
Capacity Capacity Factor Factor
4,343 4,343 MW MW Nuclear Nuclear
Capacity Capacity Factor Factor
6,618 6,618 MW MW Oil Oil
Capacity Capacity Factor Factor
67% 93.5% 15%
MW Capacity Needed to Replace Gas, Oil & Nuclear Capacity
Square Miles Land Needed*
4051 MW Solar PV
Capacity Factor
24.5%
59,826
57
2836 MW Wind **
Capacity Factor
35% (onshore)
41,878
194
Source: land use for wind solar NREL, 10 MW PV 6.1 acres, 10 MW onshore wind 44.7 acres, 640 acres = sq. mile *Capacity factors, solar PV, Gas, nuclear onshore wind: EIA *Capacity factors offshore wind: https://energynumbers.info/uk-offshore-wind-capacity-factors ** Assumes 15 MW per installed turbine ***For purposes of analysis, assumes all wind generation is currently offshore
112 2836MW MWWind Wind*** ***
Capacity Capacity Factor Factor
45% (offshore) (offshore)
Credit: Melanie Kenderdine’s slides at Breakbulk Americas
Capacity factor indicates the extent of the use of the generating station. If the power generation unit is always running at its rated capacity, then its capacity factor is 100%
# Turbines Needed**
32,752
2,183 Why Offshore Wind?
We caught up with Melanie Kenderdine post-session to find out more about renewable energy and mining developments in the U.S. Watch the interviews here: www.youtube.com/watch?v=xomyUHNzOGI www.youtube.com/watch?v=umDvaLHjdvE
Monopiles arrive at Paulsboro Marine Terminal, April 2023. Credit: Roll Group
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Cover Story
A Breakbulk Americas Women in Breakbulk session provided a space to discuss unconscious bias. Credit: HYVE
CHALLENGING UNCONSCIOUS
WORKPLACE BIAS Industry Urged to Address Implicit Prejudice
U
nconscious bias in the workplace can have myriad negative consequences. Discrimination, reduced diversity, inequitable treatment, lower employee morale, weakened team performance, and stifled innovation – the list of downsides is not pretty. Female professionals in the
industry were given a vital space to discuss the importance of recognizing unconscious bias in the workplace at Breakbulk Americas, which offered an opportunity to share best practice and learn from peers. A Women in Breakbulk breakfast invited women in the sector to meet and network in an informal setting,
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By Alex Keimig, Carly Fields
while a main stage session brought all parties into the discussion. Session moderator Leslie Meredith, marketing and media director at Breakbulk Events & Media, welcomed participants to the event before inviting several Women in Breakbulk advisory council members to share their contributions. The Council was
Cover Story
organized by sponsor dship Carriers under the leadership of Dea Chincuanco. “One of the reasons that we chose unconscious bias as our topic this year is that it touches everybody,” said Audrey Murillo, senior estimator for Bechtel and Women in Breakbulk advisor co-lead. The executive shared a story featuring her two children that had revealed her own unconscious bias toward their interests in football based on gender differences, and the steps she ultimately took to rectify that disparity. The story served as a salient reminder that even those who may be negatively impacted by unconscious biases are not automatically free of holding them. “We all have unconscious bias,” Murillo said. “Being self-aware and recognizing that makes a big difference.” Featured speaker Valerie MoulinMajor, logistics director at APR Energy, echoed Murillo’s sentiment as she delivered her address.
“We don’t all have to agree, but we can certainly maintain a collaborative attitude,” Moulin-Major said. “We are all in the same boat, moving in the same direction, and we all have similar goals. Why are we allowing unconscious bias to make things more difficult for us?”
‘Spirit of Collaboration’
Sandra Guadarrama, senior project logistics manager for Linde, backed the importance of a spirit of collaboration and finding common ground as natural antidotes to unconscious bias. “My message to all women today is that as you reach new heights, as you reach that new level, bring the other women up with you,” she said. She also emphasized the importance of education, preparation, and awareness as additional tools to combat unconscious bias, pointing to the reality that human capital is a crucial component in the modern
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supply chain, and that means that the equitable presence of women professionals is crucial as well. “The power now belongs to us,” said Wendy Rentschler, global head of corporate citizenship, DEI and ESG for BMC Software. “Don’t doubt yourself. They need you more than you need them, and we need each other. We need to empower each other, to lift each other up, to mentor each other. You are all running circles around your peer group, and you need to have the confidence that matches that.” Creating a network of strong women who are able to serve as mentors to one another amplifies the benefit of collective experiences, while forging resilient relationships with male coworkers and industry contacts allows women professionals to foster additional backing in the form of boardroom sponsorship or peer endorsement when in need of further support. “Don’t hide who you are. Bring it out. In this industry, we need to work together as women. Don’t be afraid to use what you have, because we as women have so much to offer in this world,” said Joyce Alexander, logistics specialist for Air Products. “The skillsets that women in shipping and supply chain – or anywhere – have to offer are invaluable, which is why it is so vital that they be afforded equal space at the table.” Joyce and others encouraged not only those in attendance this morning but women across the world to leverage their experiences, their voices, and their unique talents to continue making progress for themselves and their fellow female professionals.
On a Level
Continuing the conversation on unconscious bias in the workplace, Rentschler asked for positive soundbites from the eight-strong Women in Breakbulk Advisory Council at Breakbulk Americas. Isabella Canham, project chartering specialist at Bechtel, kept her thought short, impactful,
Cover Story
CHECK YOUR BIASES Unconscious bias was the headline theme of the 2023 Breakbulk Americas Women in Breakbulk sessions. Unconscious bias refers to the attitudes, beliefs, stereotypes, and prejudices that people hold at a subconscious level, without being consciously aware of them. These biases can affect our perceptions, decisions, and behaviors in various ways, often leading to unintended discrimination or unfair treatment. Recognizing and addressing unconscious bias is crucial in promoting diversity, equity, and inclusion in various aspects of society, including in the breakbulk workplace. Breakbulk asked its Women in Breakbulk Advisory Council what advice they would give to someone who wants to assess their own unconscious bias. Dea Chincuanco, President for dship Carriers Americas: “Everyone has biases. It’s not recognizing biases that can lead to bad decisions at work, in life, and in relationships,” - an excerpt from the American Bar Business Law Section. Embracing self-discovery can be a rewarding journey, sometimes humorous, occasionally embarrassing, yet growth inspiring. Consider taking the Harvard Implicit-Association Test to uncover hidden biases and recognize your own baseline. Isabella Canham, Project Chartering Specialist at Bechtel: I would recommend using caution
By Isabelle Begier
when making assumptions about situations or people. Engaging in self-reflection can help uncover the roots of these assumptions and whether they might be a product of implicit biases. Other factors that influence assumptions are culture and past experiences, so when working with teams globally, it is important to be open minded. Tania Smith, Project Logistics Manager at S&B Engineers and Constructors, Ltd: Embark on a journey of soulsearching to identify your own biases and bring them into conscious awareness. By doing so, you can effectively manage and address these biases. Sandra Guadarrama, Senior Project Logistics Manager at Linde Engineering Americas: I always remind myself to maintain objectivity in the situation, avoiding the trap of letting unconscious biases interfere with my decisions. This ensures that my choices are based solely on the facts at hand and what truly matters. Silvina Mendez, Manager, Project Logistics at Linde: I’d start by having that someone identify their natural tendencies, both positive and negative, towards certain groups
or cultures. Following this honest self-assessment, the next step is to develop a corrective path to overcome any unhealthy tendencies. The goal is to foster conscious decision-making aimed at creating an inclusive workplace that promotes a healthy environment, diversity, and various cultures. Joyce Alexander, Logistics Specialist, Air Products: Take a moment to reflect on your impact. What have you done for others to improve their lives, careers or even relationships? Are these others a diverse group of people from various backgrounds, or do they primarily look and think like you? Audrey Murillo, Senior Estimator at Bechtel’s Manufacturing and Technology business unit: I recommend “flipping the script” in order to find out if a decision is influenced by any level of unconscious bias. What I mean by it is simple: ask yourself if your decision would remain unchanged if it involved someone from a different gender, age, race… if that decision becomes weird when you operate the flip, then you might want to ask yourself why. What I like most about this strategy is that it is quick and can easily become second nature. There is also absolutely nothing to lose by giving it a try.
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Cover Story
Joye Runfola, Logistics Principal – Americas, Air Liquide: Focus on the task at hand and not on which gender is doing the task. Do this not only in your professional life but also in your personal life. Stop asking your spouse or significant other for “help” around the house. It’s not “help”; it’s a shared responsibility. Valerie MoulinMajor, Logistics Director at APR Energy: Start by directing your attention inward to explore your thoughts, feelings, actions, and motivations. Gain self-awareness through tools like the 4 color personality test, shedding light on distinct personality types and brain chemistry. Additionally, be mindful of your reactions to individuals, news, and social media content, as they can offer valuable clues about your biases. Wendy Rentschler, Global Head of Corporate Citizenship, DEI And ESG, BMC Software: To uncover and address unconscious bias, a good starting point might be my curated YouTube playlist for inclusive leadership. Enroll in Coursera’s diversity and inclusion course. After engaging with these resources, contemplate crucial questions regarding inclusive leadership traits, personal courage in confronting biases, and the commitment to fostering respect and inclusivity.
and to the point. “Always look a man at eye-level,” she said. In any given moment, an individual may be bombarded with up to 11,000,000 individual points of stimulus from the environment around them. We can only consciously process 40 or so at a time, which means that what draws our attention most tends to capture our conscious focus. These moments tend to overwhelm when our brains draw upon our unconscious biases: processing shortcuts to help reduce the clutter and filter out sensory noise from what else needs our brainpower. Unfortunately, this can lead to inefficient decision-making as well as a lack of growth and innovation. “There are so many opportunities in shipping and logistics that allow us to bring a more diverse workforce to the table. For example, robotics and generative AI open the door to bringing so many more women and other diverse specialists into your staff while also significantly increasing your productivity,” Rentschler said. “When you have more women in leadership roles, your other diversity metrics organically start to grow, your bottom line starts to grow, and your innovation starts to grow.”
companies that utilize skills-based hiring, whereby applicants complete objective, skills-based assessments and are offered or denied an interview based on their performance score, often see the diversity of their subsequent hires increase even in the absence of any other changes. By removing human subjectivity and bias from the first stage of the hiring equation, companies can reduce attrition, increase retention, foster diversity, hire across industries to find the most qualified potential candidate, and make data-backed hiring decisions that benefit the organization as a whole. “Human capital is the largest investment in every industry. On average, you’re spending 70 percent of your money every year on people – that’s salary, benefits, training, and so on. If you start to think strategically about how you’re going to invest in those resources, you can see real growth,” she added. “This is heading the right direction,” said Tania Smith, project logistics manager for S&B Engineers and Constructors. “This is relevant and important to all of us, but we cannot walk before we crawl.” One panelist was asked what stood out to her most about the experience of the session. “I didn’t see my boss Pay Gap Persistance there in the audience to support me,’ The growth of productivity and bottom she said. “He’s here today. But what line begged a related question from difference is my participating in this Silvina Mendez, senior project logistics effort making to the company if my manager at Linde: if companies do boss doesn’t have twenty minutes to better when women are allowed more hear me talk about my experiences?” seats at the table, then why does Carly Fields has reported on the shipping the gender-based pay gap persist? industry for the past 23 years, covering A large component of the pay bunkers and broking and much in between. gap, according to Rentschler, is due Alex Keimig is communications coordinator at the University of Houston’s Cullen College not necessarily to women being of Engineering. offered lower salaries than men for the same work, but to women being significantly underrepresented in Watch highlights from the Women in upper-level and C-suite roles, which Breakbulk Breakfast at Breakbulk drives down their relative average pay. Americas 2023. She offered one potential antidote www.youtube.com/watch?v=nlsfxBzRNkI to promote more diverse hiring:
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BREAKBULK AMERICAS 2023 PHOTO RECAP
Take a look at some of the fantastic photos from the event! To see even more photo coverage, visit our Flickr page at https://www.flickr.com/photos/breakbulk/albums/
Exhibitor and Main Stage sponsor, DHL Industrial Projects enjoyed an evening full of networking at the Welcome Reception.
The Welcome Reception kicked off Tuesday evening with crowds in every aisle.
Following the Welcome Reception, attendees joined us at The Rustic for the After-Party (sponsored by Port Houston).
The After-Party was filled with live music, great food and even some line dancing. Sponsored by Port Houston.
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Over 100 women joined us at the Marriott Marquis Wednesday morning to discuss this year’s topic, ‘Recognizing Unconscious Bias’. Sponsored by dship Carriers.
Audrey Murillo, senior estimator (indirects), Bechtel, and Women in Breakbulk Advisory Board co-lead, shared her words of wisdom.
Industry leaders from the Energy Industries Council, Roll Group, Georgia-Pacific, Bertling Logistics, and the Global Shippers Association spoke during the session ‘Project Outlook – Are We Ready?’
The Main Stage, sponsored by DHL Industrial Projects, was packed for the ‘Breakbulk & Heavy Lift Fleet Update’ session.
Edward Talbot, Roll Group, sat down for an interview in Breakbulk Studios with Leslie Meredith, Breakbulk Events & Media, following his session on the Main Stage.
Breakbulk Americas attendees used MSC’s VR headset at their booth.
Second place winners of the Student Research Poster Competition posed with competition advisory members.
Students were taken on a tour of the show floor by members of the ECMC (Exporters Competitive Maritime Council). There they had the chance to speak with a plethora of different companies covering the entirety of the supply chain.
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A recap of the stories that broke at Breakbulk Americas
AN INDUSTRY TOOLING UP FOR GROWTH “We will rise to the occasion” was the optimistic consensus of speakers on a Project Outlook – Are We Ready? panel session at Breakbulk Americas, who also acknowledged that the industry is not yet fully ready for an anticipated uptick in business. Prior to the panel, Amanda Duhon, regional director at the Energy Industries Council, said there were “opportunities in abundance,” despite a slowdown in new oil and gas announcements. She pointed to some 26 new nuclear projects in the works, as well as a slew of renewables activity, particularly on the U.S. East Coast. For industry veteran John Hark, North America regional director for Bertling Logistics, staff issues pose a threat to the post-pandemic recovery. “We see a shortage of staff, as well as large salary increases caused by inflation and competition.” Concurring with this sentiment was Brian Putallaz, senior commodity manager, Global Shippers Association, who was concerned that “10,000 baby boomers are turning 65 every day – and you can’t fix that overnight, even with AI and tech.” An ongoing pinch point in the supply chain remains the availability (or otherwise) of barges – a situation exacerbated by the Jones Act, which requires that domestic shipping be conducted only by U.S.-flagged vessels. Panelist Edward Talbot, managing director for Roll Group in the Americas, expected the situation to remain difficult for the foreseeable future. “Barges are being booked even before the project starts, which reduces availability further and pushes prices up,” he noted.
By Luke King
Project Outlook panel included (from left) Amanda Duhon, Brian Putallaz, Milind Bilaji and Edward Talbot. Credit: Hyve
Milind Balaji, director of global distribution and services at Georgia-Pacific, an importer and shipper of breakbulk and project cargo, pointed to how a lack of investment in critical infrastructure, especially ports, was placing “huge burdens” on supply chains. Addressing the issue of staffing, Balaji spoke of the industry’s “perception problem” among younger people. “Some people look at us and think our work is archaic – though nothing can be further from the truth.” On terms and conditions, Hark welcomed some positive developments. “We are starting to see contracts that are more fit for purpose, and not so many that cause us indigestion. But there are still issues – things like 180-day payment terms, and that’s tough to manage.” Putallaz was concerned that, as stability returns following the
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pandemic, people would “go back to thinking that logistics is cheap and easy again.” He also spoke of the “paradox” between OEMs in the renewables space who “aren’t making money” and “the fossil fuel industry, which is making record profits” – a situation that he said could undermine the energy transition. Closing the session, Hark concluded: “We are ready, we will rise to the challenge, but I tell everybody visiting Breakbulk – go and talk to the students, because we need them working with us.” Watch our post-session interviews with panelists in the Breakbulk Studios: Edward Talbot: https://www.youtube.com/ watch?v=jrIOT3GevYc John Hark: https://www.youtube.com/ watch?v=8A18pyiy8PM
Breakbulk Americas
LATIN AMERICA’S THRIVING PROJECT MARKET Latin America’s project market is gearing up for significant expansion in the coming years, with offshore wind in Brazil and nearshoring in Mexico among the drivers of growth, speakers on a main stage panel session told an audience at Breakbulk Americas. “Energy, mining, and infrastructure are taking up the biggest share of megaprojects currently under construction and the region is tipped for huge growth in the renewables sector, particularly offshore wind and hydrogen,” said Murilo Caldana, project director at FOX Brasil and moderator of the Latin America Spotlight: Outlook, Projects and Opportunities session. “The decommissioning market is also on the rise and alongside this, large scale port development to service the needs of the region’s projects,” he added. In Argentina, surging shale gas production at the world-class Vaca Muerta formation and the buildout of supporting infrastructure is generating myriad opportunities for project logistics, said Pablo Hanacek, head of industrial projects at DHL Global Forwarding Argentina. The 30,000 square-kilometer oil and gas formation in Neuquen Basin in western Argentina is home to the second-largest shale gas reserves in the world and the fourth-largest unconventional crude reserves. A massive infrastructure drive to ensure the gas keeps flowing is also providing breakbulk with fresh streams of work. “Projects are not only related to the consumption of gas and the potential export to other countries, but it will also cascade into other projects such as LNG, fertilizers, and ports. So definitely we are very excited,” Hanacek said. In Brazil, Latin America’s largest economy, hydrocarbons, renewable energy and pulp and paper continue to represent the fastest-growing sectors for breakbulk. The Port of Açu in the north of Rio de Janeiro, one of Brazil’s most important offshore oil and gas hubs, is one of the
By Simon West
Panelists agree Latin America’s project opportunities are vast. Credit: Hyve
largest port complexes in the Americas, with 10 private terminals including a multi-cargo terminal (T-MULT). “The forecast for oil and gas in Brazil in the next few years is very good,” said panelist Jose Lucas Moreira, commercial manager terminals at the Port of Açu. “We expect to be in the top five oil producers in the world. “There are a lot of projects going on, but I’d like to highlight the decommissioning of platforms, which is a new area for us in Brazil. The Port of Açu is one of the most capable ports to handle this new demand in the market. The scenario is very good for us. We believe there will be a lot of work to do.” Moreira also pointed to opportunities stemming from energy transition, including offshore wind. “Brazil has a huge coastline, almost 8,000 kilometers. We have three hotspots to develop offshore wind, including right in front of Açu. We strongly believe it will be a reality very soon and we are ready to receive it.” Mexico, meanwhile, is gearing up for more investment amid nearshoring from China. Carlos Carcamo, assetbased sales director at Mexicoheadquartered heavy-lift specialist Tradelossa, said the trend represented a “real opportunity” for the country.
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Some 400 U.S. and Asian companies are interested in relocating to Mexico by 2024, generating some 700,000 jobs, while nearshoring could boost the country’s GDP by US$50 billion over the next six years. “Our advantages are with the trade agreement we have with the U.S., the location close to the U.S. and the cost of labor force. It’s an opportunity to grow and make a real change in the international market.” Marcelo Lopes, manager of logistics and trade compliance at offshore drilling company Valaris, pointed to the importance of pricing integrity in Latin America, as well as the benefit of local knowledge. “Knowing the territory is so important,” Lopes said. “And most of the time the companies that understand the territory are the small operators – it’s not always the big guys. I believe in today’s business, when you have that local knowledge, and the understanding of how that country operates.” The session was sponsored by PhilaPort – the Port of Philadelphia. Watch out post-panel interview with DHL’s Pablo Hanacek: https://www.youtube.com/ watch?v=zxStiMVOQ3E
Breakbulk Americas
AIR CARGO CAPACITY SQUEEZE ENDURES
By Luke King
Boeing freighter for “a long time to come,” according to White. “Right now we feel we’re in a good spot where we’re not constrained by having too many aircraft. “The 747s that we operate today are here to stay – I think we’ll see the longevity of our freighters. They’re such an amazing aircraft and we do a lot of project and oversized cargo, throughout the globe. It’s one of the most flexible aircraft available. It can work wonders.” Final speaker Joe Irvine, operations manager at Seacoast Aviation, an air cargo handling company at Portsmouth International airport in New Hampshire, told the audience they would be wise to consider a smaller, regional Air Freight Solutions for Breakbulk Cargo was moderated by John Amos. Credit: Hyve airport for their next cargo flight. Irvine proudly shared how his New aircraft to serve the and that industry should expect airport recently hosted two of the heavy-lift and project cargo sector longer lead times to book. five existing Antonov 124s on the remain a “quite limited” prospect, “We also need to be prepared ground at the same time – quite an delegates heard on the closing day that the number of Boeing 747 achievement for a small facility. of Breakbulk Americas in Houston. freighters will gradually reduce, “I see a major movement away Speaking at the Air Freight since production of that aircraft from the big hubs,” he said. “JFK Solutions for Breakbulk Cargo has been discontinued,” Kuznetsov (John F. Kennedy airport in New panel, Pavel Kuznetsov, head of said. “It’s not something that’s going York) is getting backed up and the air chartering at deugro, noted to happen overnight. The aircraft truck driver is sitting for 30 hours that in terms of general air has a lifespan of 30 to 35 years, waiting to unload their cargo. I freight, the “dramatic shortage which may be extended with certain tell everybody that I can have your of capacity” observed during the additional investments, but it’s cargo any place in the world, long pandemic is “certainly behind us.” something to keep on the radar.” before that truck has unloaded. With ocean freight normalizing, He added: “We’ll also see new “You’re not going to get your plane demand for general air freight has generation, wide-body freighters out on time. You’re not going to get been relatively weak for the last coming, which are more eco-friendly, the service that you need. If you 18 months, driving rates lower, but they’ll have more limitations when come to a regional airport, we do Kuznetsov said. “On the other hand, if it comes to project cargo. From my everything for you. We’re trying to we look at project cargo, we haven’t point of view the prospects for new beat the Bostons and the JFKs.” seen any dramatic reduction of aircraft entering the heavy-lift sector Air Freight Solutions for Breakbulk demand from our project customers at the moment are quite limited.” Cargo was moderated by John Amos, – we’ve seen moderate growth.” Fellow panelist Alan White, chief president of Amos Logistics. The deugro executive said a growth officer at National Air Cargo lack of heavy-lift ramp aircraft Inc., held a “cautiously optimistic Hear more from Pavel Kuznetsov such as Antonovs and Ilyushin view” on where the market was going, in our post-session interview 76s was an enduring problem, in though he felt resigned to the fact in the Breakbulk studios: part due to the military conflict that “volatility is the new norm.” in Ukraine and subsequent With a fleet of eight 747s, https://www.youtube.com/ sanctions against Russian airlines, National sees a future for the watch?v=GpqkTMmD2D8
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Breakbulk Americas
THE WINDING ROAD TO DECARBONIZATION
By Alex Keimig
The discussion provided much food for thought. Credit: Hyve
The road to decarbonization is paved with good intentions, but implementation in breakbulk shipping continues to prove a challenging prospect, delegates were told during a main stage “Journey Towards Decarbonization” panel session in Houston. With the U.S. government’s challenge to reduce carbon emissions by 35 percent by 2030 having been set into motion, some areas of the industry are facing difficult changes. Jeffrey Short, vice president of the American Transportation Research Institute, or ATRI, said regulations in California were “pushing us forward toward battery electric vehicles – in particular, battery electric trucks – and while we want to move toward decarbonization, what we really need is the tools to do that as effectively and efficiently as possible. “My suggestion would not necessarily be one answer for a single solution to this, but investment in research and development related to all different types of tools and possibilities, especially for trucking.”
Opportunities abound, however, to find alternative methods of decarbonization that allow industry players to help meet sustainability goals without sacrificing productivity or performance. “We’re not a regulatory agency,” said Brian Hill, Western Gulf Gateway Director at the U.S. Maritime Administration. “So how we encourage more decarbonization is through our grants. Our grant applicant will more likely be successful if they can share some steps they’ve taken or are taking toward decarbonization, environmental justice, emission reductions, and other such efforts. That’s how we can encourage this industry now, without waiting for one perfect solution to appear.” Looking for many smaller or more specialized opportunities and weaving them together into a larger picture is how Namir Khanbabi, general manager at Swire Projects, described their approach to the issue in an area where one larger solution – battery electric systems – may not be possible: maritime shipping.
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“We already have two options available to us: one is fuel efficiency, and the other is green fuel transition,” the executive said. “We aren’t going to discuss electric battery operations for ocean trade because they won’t have the necessary range. It’s just not going to work for the services we run. But we have a lot of initiatives going on with the existing fleets where we’re looking at what we can do to meet the standards that are being applied, like applying silicone coatings at our own cost.” Though it may be slow going, the maritime transition to green fuels is making steady progress. “The Port of Houston just completed a methanol bunkering barge to fuel other (methanol-running) vessels. So now if there’s a methanolrun ship that comes in, it can be refueled here for the first time. The Port of Victoria is also participating in work to produce renewable ammonia for transportation. There’s a brand new industry starting and changing right before our eyes. More will come in the future, but these innovations are starting to happen right in front of us,” said Hill. While one single perfect option to unite the industry beneath the banner of decarbonization may not exist, there remain almost limitless approaches that can leverage their individual strengths together to continue making progress toward a greener future. “To mandate a single solution is literally not going to work,” said Short. “I am hopeful that folks realize that, and we can look at these other solutions that exist – some of them that we’ve mentioned today – and continue to do much more research to get this right so that we don’t find ourselves missing opportunities.” The session was sponsored by AsstrA-Associated Traffic AG, a global provider of comprehensive, end-to-end logistics solutions.
Breakbulk Americas
STUDENTS SET FORWARD BREAKBULK AGENDA B BBAM-hosted Inaugural Poster Competition Drives Innovation reakbulk Americas hosted an inaugural Student Research Poster Competition in September in Houston to coincide with Education Day. The launch of the competition was intended to further engage students into the sector and to identify an early talent pipeline. This provided an opportunity
Awards and honorable mentions: 1st Place: Implementing Smart Port Technology - Daniel Mendez, Zain Hussnain, John Nguyen, Alex Kasymkanov, Jamal Olasode, and Taylor Fusco. 2nd Place: The Kra Canal: Pros, Cons & Future Opportunities - Adrian Rodriguez, Tyriana Terrell, Vuong Hong, Ndeye Sofia Marre, Bryan Martinez, and Ivan Leon 3rd Place: Quenching Global Thirst: The Power of the Sun - Lindsey Guerrero, William Day, Gavin Chang, Herson Medrano, and Abigail Lopez Honorable Mentions: Energizing Solutions: Tackling Oil Price Challenges: Anthony Reyes, Christian Sallese, David Zacher, Raja Singh, and Sergio Morales. Port AI: Smart Solutions for Modern Maritime Infrastructure: Sebastian Nguyen, Herb Lopez, Westley Adame, Anissa Warren, and Ali Khowaja. The State of Automation in Container Ports: Aliu Haruna, David Rodriguez, Ali Syed, and Kevin Tran.
for undergraduate and graduate students at area universities to both contribute to applied research related to three thrusts - global capital projects, sustainability/energy transition and port infrastructure - and to showcase their work. Breakbulk Americas, as the region’s largest trade event for the project cargo and the breakbulk industry, also provided an opportunity for students to engage with global sector leaders, including decision-makers from leading energy firms and engineering, procurement and construction companies, as well as regional specialized service providers. The posters submitted depicted research performed by typically student teams of five, along with an incorporation of a faculty advisor and in many cases an industry advisor(s). The research included interviews, literature reviews, an explanation of emerging technology, policy analysis, case study or other relevant topics focused on the three topics. The goal was for poster research to identify a gap or problem area, evaluate possible solutions or way ahead, and outline future actions, policy steps, or research needed for continued advancement. A panel of five judges reviewed thirty-one posters submitted from
student teams representing the Supply Chain & Logistics Technology program, University of Houston, and the Maritime Administration program, Texas A & M Galveston. The contest judges evaluated the posters using a rubric with the following criteria: methodology, poster organization, coverage of topic, use of sources, use of graphics and the ‘wow’ factor. Each were assigned a score of 1-5. The top three submissions in terms of cumulative points received were provided a financial award and six Honorable Mention submissions were presented certificate awards on Sept. 28, 2023, on the Breakbulk Americas Main Stage. The competition was made possible by a generous sponsorship from both a global and diverse group of industry stakeholders including Bechtel, DP World, 4D Supply Chain Consulting, and UTC Overseas, along with operational support from the Cullen College of Engineering, University of Houston and the Breakbulk Events and Media team. “As an inaugural event, it was exciting to see so much enthusiasm and dedication to excellence from 155 students at the beginning of the academic year with a big focus on research related to digitization and sustainability”, said Margaret Kidd, conference chair.
Port Infrastructure: Risk Assessment of Maritime Cyber Attack - A Probabilistic Model: Jessica Perez & Juanita Monteiro. Impact of Digital Twinning on Global Capital Projects & Port Infrastructure: Ashley Velazquez, Kevin Velazquez, Zaki Hamel, and Bethel Mbakaogu. The Sustainability & Energy Efficiency of Offshore Windmill Turbines: Vanessa Davis, Karina De La Rosa, Ronaldo Quiroz, Sardar Islam, Munif Monim.
The winners receive their prize on stage at Breakbulk Americas. Credit: Hyve
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Breakbulk Americas WINNING POSTER ENTRY By Daniel Mendez, Zain Hussnain, John Nguyen, Alex Kasymkanov, Jamal Olasode, and Taylor Fusco. Check out our short video on this year’s Education Day in Houston. https://www.youtube.com/ watch?v=d9JzRXZO114
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Breakbulk Americas
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WWW.BREAKBULK.NEWS
YOUR NEWS FOR HEAVYLIFT, BREAKBULK & PROJECT CARGO BREAKBULK NEWS & MEDIA B.V.
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
COLLETT DELIVERS 184-TON TRANSFORMER TO IRISH SUBSTATION UK-based heavy transport specialist Collett & Sons has delivered a 184ton transformer from Dublin Port to the Corduff Substation in Ireland. The “complex” move of the 9.3-meter-long unit, carried out in collaboration with Netherlandsbased Wagenborg, called for extensive preliminary work including a detailed road survey to identify obstacles or obstructions along the route. The necessary permits also had to be secured. Prior to the transformer arriving at Dublin Port – Ireland’s busiest seaport – Collett marshalled their 550-ton capacity girder frame trailer and heavy tractor units, which were shipped from the UK to Ireland. Once docked in Dublin, Collett piloted Wagenborg’s 22-axle trailer
loaded with the transformer from the vessel to a designated transshipment zone, where it was lowered onto stools using the trailer’s hydraulic suspension. Collett then built the girder bridge trailer around the component to self-load the cargo before transfer to a storage area for final delivery. The 13.4-mile nighttime move, traversing Dublin city center, took about four hours, with a maximum vehicle speed of five miles per hour. Police escorts and Collett’s in-house pilot cars accompanied the 65.4-meterlong load to the substation site. At Corduff, the trailer’s suspension was lowered to enable safe passage under overhanging cables. Once alongside the bund area, the transformer was self-offloaded
Collett uses a girder frame trailer to deliver the 184-ton transformer to Corduff, Ireland. Credit: Collett & Sons
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onto the skid track and skated 16 meters onto the final plinth. Hydraulic jacks were then deployed to lower the transformer onto the plinth, where it was moved into its final position using specialized positioning plates. “This extraordinary feat of engineering and logistics highlighted Collett & Sons’ expertise in handling oversized and intricate cargo deliveries,” the company said. Based in Halifax in northern England, Collett operates a fleet of heavy-lift trucks, trailers and SPMTs and provides project logistics solutions throughout the UK, Europe and worldwide. Collett & Sons is a regular exhibitor at Breakbulk Europe. Next year’s event is taking place on May 21-23 at Rotterdam Ahoy in the Netherlands: https://europe.breakbulk.com/home
BBOne
JUMBO HANDLES TPS FOR BALTIC SEA WIND PROJECT Jumbo Offshore, part of the Netherlands-headquartered Jumbo Group, has been hired by dredging and offshore specialist Van Oord to transport and install transition pieces, or TPs, for the Baltic Eagle offshore wind farm in Germany. The project, which began in October, calls for the TPs – steel tubular structures used to connect the wind turbine generator to the monopile – to be shipped from the marshaling yard to the wind farm site some 28 kilometers off the northeast coast of the German island of Rügen, in Mecklenburg-West Pomerania. The 50-turbine, 476-megawatt
Baltic Eagle is being built by Iberdrola, with commissioning slated for next year’s first quarter. According to Iberdrola, the TPs have been stored at the ferry port of Sassnitz on Rügen. The monopiles are being delivered from EEW’s factory at nearby Rostock. “To date, Jumbo Offshore has transported and installed over 400 transition pieces with our DP2 heavylift vessels,” said Brian Boutkan, commerce manager at Jumbo Offshore. “After working together on the Arkona offshore wind farm, we are looking forward to working for Van Oord
Jumbo Offshore installs steel TP used to connect the wind turbine generator to the monopile. Credit: Jumbo
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again. This project award shows the continuation of our focus in the offshore wind industry with our efficient T&I solutions as well as the trust of our clients on our capabilities and equipment.” In related news, SAL Heavy Lift – a member of the Harren Group and Jumbo’s partner in the Jumbo-SALAlliance – is beefing up its fleet and expanding its project cargo capabilities with two “super modern” semisubmersible deck carriers. The 26,000 deadweight-ton Zhong Ren 121 and Zhong Ren 122 will be chartered on a long-term basis with Chinese partner Shanghai Salvage and marketed through the Jumbo-SALAlliance. Delivery is expected between December 2023 and February 2024. “We don’t use the term ‘milestone’ lightly – but, in this case, it’s more than appropriate. This project is extremely important to us as a group, both commercially and strategically,” said Dr. Martin Harren, CEO of SAL Heavy Lift and the Harren Group. “Our combined MPP and heavy-lift fleet, which currently comprises 54 units, is one of the world’s leading fleets. We offer our customers the most powerful heavy-lift vessels in the world. However, the truth remains that the demands and requirements of our clients – especially in the offshore wind sector – are becoming increasingly extensive and complex. These two new additions give us the opportunity to meet and possibly even exceed these requirements. Customers will benefit from more choices and better solutions.” Following delivery, SAL will utilize the two vessels for cargo shipments from Asia to Europe, after which they will be deployed for an unnamed, offshore wind project in the U.S. Jumbo and SAL Heavy Lift are frequent exhibitors at Breakbulk events.
BBOne
L&T transports a carbamate condenser for a urea fertilizer facility. Credit: L&T Energy Hydrocarbon
L&T SECURES ORDER FOR AUSTRALIAN UREA PLANT L&T Energy Hydrocarbon, a division of Indian multinational Larsen & Toubro, has won a “significant” order to build and supply process and pipe rack modules for a 2.3-million-ton urea fertilizer plant in Western Australia. Some 50,000 metric tons of modules will be delivered over a 32-month period, L&T said. The modules will be manufactured at L&T’s export-oriented Kattupalli facility at Tamil Nadu on India’s east coast and shipped in a fully tested, pre-commissioned, and ready-toinstall condition to the project site in Australia. The contract was awarded by joint
venture Saipem & Clough against “stiff competition,” L&T said. The JV itself signed the engineering, procurement and construction contract with developer Perdaman Industries in 2020. The facility on the Burrup Peninsula, some 20 kilometers north of Karratha, is being billed as the largest urea plant in Australia and one of the largest in the world. In a separate contract, L&T Heavy Engineering secured multiple orders to supply the same project with urea equipment including reactors, carbamate separators, carbamate condensers and urea strippers. For this contract, 1,160 metric tons
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will be delivered over 25 months. “L&T have gone through SCJV’s meticulous tender process and have been awarded a significant package of modular fabrication based on their technical expertise, quality, HSE and operational excellence,” said Vikas Rambal, chairperson of Perdaman. L&T 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. https://breakbulk.com/page/bgsn
Opportunities
PROJECTS IN THIS ISSUE Project: The Landbridge Project (page 28)
Project: Hywind Tampen (page 61)
Country: Saudi Arabia
Country: Norway
Sector: Rail
Sector: Offshore Wind
Developer(s): Saudi Railway Company (SAR)
Developer(s): Equinor
Project: Rail Direct (page 28)
Project: Vaca Muerta (page 85)
Country: United Arab Emirates
Country: Argentina
Sector: Rail
Sector: Unconventional Oil & Gas
Developer(s): Etihad Rail, DHL Global Forwarding
Developer(s): YPF, Chevron, Shell, Petronas, ExxonMobil, others
Project: NEOM Green Hydrogen (page 31) Country: Saudi Arabia
Project: Corduff Substation (page 93)
Sector: Renewables
Country: Ireland
Developer(s): NEOM Green Hydrogen Company (NEOM,
Sector: Power
ACWA Power, Air Products)
Developer(s): n/a
Project: Connector (page 33)
Project: Baltic Eagle (page 94)
Country: Saudi Arabia
Country: Germany
Sector: Rail
Sector: Offshore Wind
Developer(s): Webuild, Shibh Al Jazira Contracting Co.
Developer(s): Iberdrola Group
Project: Norfolk Boreas (page 56) Country: U.K. Sector: Offshore Wind
Credit: Fagioli
Developer(s): Vattenfall
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