Breakbulk Magazine Issue 6 2024

ANNUAL OUTLOOK:

Project Cargo Experts

Share Their Forecasts for 2025 and Beyond

How To Win Project Cargo Business

Moving the World’s Largest Optical Telescope

Can The Panama Canal Mitigate Endless Drought?

Colin D’Abreo: Shipping in His Blood

PLUS Breakbulk Americas Recap and Best of Breakbulk 2024

With analysis from the Energy

Be a part of Breakbulk Events 2025

Breakbulk Middle East

Feb. 10-11, 2025

Dubai World Trade Centre Dubai, UAE

Breakbulk Europe

May 13-15, 2025

Rotterdam Ahoy

Rotterdam, Netherlands

Breakbulk Americas Sept. 30 - Oct. 2, 2025

George R. Brown Convention Center Houston, Texas, US

26 Global Outlook Energy Security Takes Priority By the Energy Industries Council (EIC), a Breakbulk Strategic Partner

28 Middle East Outlook Opportunities Abound in the MENA Region

Project professionals offer their perspectives on crucial topics such as infrastructure development, key sectors, freight rates and sustainability in the region

34 Asia Outlook

Power-Hungry Asia to See Raft of New Projects

Lagging Infrastructure and Capacity Constraints Temper Otherwise Positive Outlook

40 Europe Outlook On the Path to a Greener Europe

Clean Energy Projects Expected to Keep Sector Busy, but Logisticians Fear Impact of Continued Global Disruption

46 Americas Outlook Green Sector Sparks Growth in the Americas

Significant expansion ahead for oil and gas, wind and hydrogen projects

52 Global Moving the World’s Largest Optical Telescope

Italian Forwarder Plays Vital Role Shipping the Biggest “Eye on the Sky”

56 Global Pitch Like a Pro: How To Win Project Cargo Business

Start Small and Build Trust, Shippers Urge Logistics Providers

60 Africa

Namibia: Africa’s New Oil and Gas Hotspot

Cargo Community Readies for Project Boom

64 Asia

Middle Corridor: The Trade Route Gaining Traction

Asia-Europe Initiative Described as “Lifeline for Logistics”

68 Americas

Colin D’Abreo: Shipping in His Blood

Rhenus Executive on His 30-Year Career and the Importance of Staying the Course

LOOKING FOREWORD

We’re heading toward the end of another tumultuous year, so in this issue we’re taking the opportunity to look back and look forward.

You’ll find Breakbulk

Studio’s top-viewed videos in UpFront and the top eight stories of the year on page 89. You’ll notice some common themes. Resilience tops industry concerns, with leaders focused on navigating geopolitical disruptions and supply chain volatility – hello Red Sea. Sustainability follows closely, driven by mandated shifts to greener practices and carbon reduction. The third area of consensus is the optimistic push to expand operation, particularly into high-growth regions like Asia and the Middle East. Lastly, innovation supports these goals, with AI and other tech advancements seen as tools rather than end goals.

Looking ahead, we invited the Energy Industries Council to provide its perspective on energy projects in each region – what are the drivers, and what is holding investment back? Where should you expect to see new project cargo business?

The energy transition may have hit a wall. Clean technologies like hydrogen and carbon capture remain on the agenda, but progress has slowed due to high costs, supply chain snags, regulatory delays, and a skills shortage, the EIC said. As a result, oil and gas projects are far more likely to reach final investment decision thanks to their steady profitability and reliability.

This reality is clear across regions, as industry leaders weighed in on their own forecasts for 2025. The Middle East will power forward with big oil and gas investments, Europe’s green push continues to face red tape and high costs, and Asia and the Americas juggle renewables with fossil fuels amid infrastructure gaps. “Each region has its own hurdles,” says Sameer Parikh, president of JM Baxi Heavy in India. “From shifting policies to infrastructure gaps, adapting fast is key to keeping projects on track.” Turn to page 34 for more.

This issue wouldn’t be complete without a recap of the final Breakbulk event of the year: Breakbulk Americas. We introduced new features in Houston, and the top hits will be coming to every Breakbulk event in 2025. For instance, a breakfast keynote, the program’s most popular Main Stage session “Shippers’ Advice: How to Win Project Cargo Business,” inspired by our magazine interview with Mitsubishi Power’s Agustin Harriague, and an expanded Women in Breakbulk program will be integrated into Breakbulk Middle East, Breakbulk Europe and return to Breakbulk Americas next year.

Most importantly, what do you want to know? Just like in project planning, the earlier we start, the better the outcome. So don’t hesitate to send over your story ideas—I’d love to hear them.

Best wishes as we navigate through the end of the year. See you in 2025.

Best,

Leslie Meredith, Marketing and Editorial Director

Marketing and Editorial Director

Leslie Meredith Leslie.Meredith@breakbulk.com

Managing Editor

Luke King luke.king@breakbulk.com

Senior Reporter

Simon West simon.west@breakbulk.com

Designer Mark Clubb

Reporters

Malcolm Ramsay

Liesl Venter

Felicity Landon

Joanna Marsh

Breakbulk Magazine Editorial Board

John Amos Amos Logistics

Tina Benjamin-Lea Air Products

Dea Chincuanco dship Carriers

Elisabeth Cosmatos Cosmatos Group of Companies

Dennis Devlin Maersk Project Logistics

Dharmendra Gangrade Larsen & Toubro

Margaret Kidd University of Houston

Stephen “Spo” Spoljaric Bechtel Corporation

Jake Swanson DHL Global Forwarding

Grant Wattman Combi Lift Americas

Portfolio Director

Jessica Dawnay Jessica.Dawnay@breakbulk.com

To advertise in Breakbulk Media products, visit: http://breakbulk.com/page/advertise

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A publication of Hyve Group plc. The Studios, 2 Kingdom Street Paddington, London W2 6JG, UK

Leslie Meredith

Speakers, exhibitors and Breakbulk Global Shipper Network members in this issue:

Movers & Shakers, page 14

Trans Global Projects, Technip Energies, DP World, Combi Lift Projects USA (Harren Group), Hareket, Air Partner Service, Chapman Freeborn

Breakbulk Outlook 2025: Middle East & Africa, page 28

Al Faris, Bahri Line, deugro, DSV

Breakbulk Outlook 2025: Asia, page 34

Larsen & Toubro Logistics, JGC Corporation, Swire Projects, JM Baxi Heavy, Chipolbrok

Breakbulk Outlook 2025: Europe, page 40

Siemens Energy, Port of Rotterdam Authority, Fracht Group, DHL Industrial Projects, BBC Chartering

Breakbulk Outlook 2025: Americas, page 46

Fox Brasil, Maersk Project Logistics, Roll Group

Moving the World’s Largest Optical Telescope, page 52

DCS Liburnus Project SRL, The Heavy Lift Group, Intermarine

How to Win Project Cargo Business, page 56

Mitsubishi Power, Fluor, Siemens Energy

Namibia: Africa’s New Oil and Gas Hotspot, page 60

Shell, TotalEnergies, BP, Eni, Chevron, Breadbox Shipping Lines, MACS, DHL Global Forwarding, Blue Water Shipping

Middle Corridor Gaining Traction, page 64

Globalink Logistics, Trans Global Projects, Gianti Logistics

Colin D’Abreo Profile, page 68

Rhenus Project Logistics Global

Panama Canal: Mitigating Endless Drought, page 74

AAL Shipping, DHL Global Forwarding

Breakbulk Americas 2024 Recap: Big Beast Industry Coming, page 82

Bechtel Corporation, Fluor, DHL Industrial Projects

Breakbulk Americas 2024 Recap: Don’t Get Hung Up on Decarbonization, page 84

GEODIS Project Logistics, Maersk, Pasha Stevedoring and Terminals

Breakbulk Americas 2024 Recap: Women in Breakbulk – Thriving in Times of Uncertainty, page 86

Shell, Ports America, Gebrüder Weiss, Port Houston

BEST OF 2024

Profile: Cyril Varghese, Fluor, page 92 deugro, Petrofac, Siemens, CB&I, ABB, Dragon Oil, Alstom, Kuehne & Nagel, Technip, SAL

Interview: Koichi Kaizu, JGC Corporation, page 97 JGC Corporation, Shell, Mitsubishi, Fluor, deugro, Bolloré

Semi-Subs: The Mega Vessels Made for Modules, page 100 Roll Group, COSCO Heavy Transport, Fluor, COSCO Shipping Specialized, BigLift Shipping

Beating a Path to Poland, page 104 deugro, Baltic Hub, UTC Overseas, Vestas, Bechtel Corporation

Ukraine: Trade Continues, page 107

DB Schenker, Dealex Transport, Negabarit Service

Japan: Poised for Growth, page 113

Swire Shipping, BBC Chartering, JSI Alliance, AAL Shipping

Thought Leader – Ritesh Nair, page 116

Rhenus Project Logistics

Key:

* Breakbulk Exhibitor

*Breakbulk Global Shipper Network Member

2024 YEAR IN REVIEW

Breakbulk takes a look at the biggest events of the past 12 months

November 19, 2023 – Red Sea Attacks Begin

Location: Red Sea

Event: Houthi rebels attack commercial vessels, disrupting global shipping routes.

Significance: Ships are rerouted through the Cape of Good Hope, increasing transit times and operational costs, impacting international trade.

Photo: Hapag-Lloyd.

Breakbulk article: “Red Sea Shipping: Turmoil Turned Opportunity?” Issue 3

January 1, 2024 – EU ETS Extended to Maritime Transport

Location: European Economic Area (EEA)

Event: The EU expands its Emissions Trading System to include maritime shipping.

Significance: Ships over 5,000 GT operating in the EEA must track emissions and buy allowances, driving sustainability and decarbonization within the shipping sector.

Photo: SAL.

Breakbulk article: “Shelling Out for EU Shipping Charge,” Issue 3

February 12-13, 2024 – Breakbulk Middle East 2024

Location: Dubai, UAE

Event: The region’s largest event for the project cargo and breakbulk industry

Significance: The event focuses on strategic networking, solutions for navigating challenges impacting regional trade and logistics, and opportunities for new business.

Photo: Breakbulk Middle East by the Numbers. Breakbulk article: “UpFront: Breakbulk Middle East by the Numbers,” Issue 2

March 2024 – Bahri Sets Record for Largest Floating Desal Plant

Event: Bahri Desalination, part of the National Shipping Company of Saudi Arabia, inaugurates the world’s largest floating desalination plant.

Significance: Recognized by Guinness World Records, the plant—installed on a 123-meterlong marine barge—has a daily capacity of 50,000 cubic meters of freshwater, and is part of the Kingdom’s water security program.

Photo: Bahri.

Breakbulk article: “Best of BreakbulkONE,” Issue 3

MARCH

APRIL

March 26, 2024 – Francis Scott Key Bridge Collapse

Location: Baltimore, Maryland, USA

Event: A cargo ship accident forces the collapse of the bridge, disrupting port operations.

Significance: Freight is diverted to other East Coast ports, causing delays and increasing logistics costs.

Photo: Dali Cargo Ship Crash.

Breakbulk article: “Breakbulk Faces Challenges Amid Baltimore Port Closure,” industry news

April 2024 – AAL Limassol Completes

Maiden Voyage

Location: Europe

Event: AAL Shipping’s first Super B-Class vessel completes its maiden voyage, transporting 89,000 tons of cargo.

Significance: This vessel is part of a fleet of eight 32,000 DWT Super B-Class heavy-lift carriers, which offer 40% more cargo capacity than previous models.

Photo: AAL Shipping.

Breakbulk article: “Driving Decarbonization in Breakbulk Shipping,” Issue 4

MAY

May 21-23, 2024 – Breakbulk Europe 2024

Location: Rotterdam, Netherlands

Event: The world’s largest project cargo and breakbulk event sets new attendance record of more than 11,000 attendees.

Significance: Industry leaders discuss solutions to challenges in global trade, sustainability efforts, and regulatory shifts.

Photo: Breakbulk Europe 2024 Event Stats. Breakbulk article: “Breakbulk Europe 2024 Event Stats,” Issue 4

June 10, 2024 – Groundbreaking for Natrium

Reactor to Power Microsoft Data Center

Location: Kemmerer, Wyoming, USA

Event: Bechtel and TerraPower begin construction on a data center that will be powered by the first sodiumcooled nuclear reactor.

Significance: This $4 billion Natrium reactor, backed by Bill Gates, will provide sustainable power to the Microsoft data center, showcasing nuclear energy’s role in supporting AI-driven workloads and digital infrastructure.

Photo: Bechtel’s Kristin Homsi on stage at Breakbulk Americas.

Breakbulk article: “Big Beast Industry Is Coming,” in this issue, page 82

JUNE JULY

July 2024 – First JSI Orca Class

Newbuild Hits the Water

Location: China

Event: SAL Heavy Lift, part of the Harren Group and the JSI Alliance, has launched the first of five Orca Class heavy-lift vessels, the MV Elise, at Wuhu shipyard in China.

Significance: These newbuilds will serve the growing demand for heavy-lift transport and offshore wind installations, aligning with the industry’s sustainability goals.

Photo: SAL.

Breakbulk article: “Carriers “Cautiously Optimistic” on Market,” from Breakbulk Americas event coverage

August 28, 2024

– Charlie Jenkins Named CEO of Port Houston

Location: Houston, Texas, USA

Event: Charlie Jenkins officially takes over as CEO of Port Houston, following the retirement of Roger Guenther on August 28, 2024.

Significance: Jenkins, a 34-year veteran at Port Houston, gives his first public interview as CEO to Breakbulk Events & Media. In the interview, he outlines plans for infrastructure upgrades, including “Project 11,” a channel-deepening initiative designed to accommodate larger vessels and enhance Houston’s role as a major hub for breakbulk and project cargo.

Photo: Charlie Jenkins, Port Houston.

Breakbulk article: “Port Houston – Poised to Get Bigger and Better,” Issue 5

AUGUST

July 23, 2024 – CEVA and Almajdouie Partner

Location: Saudi Arabia

Event: CEVA Logistics and Almajdouie Logistics create a joint venture (JV) to target multiple sectors, including energy, petrochemicals, automotive, and e-commerce.

Significance: With CEVA holding a majority stake, the JV brings together 2,000 employees and a fleet of over 2,000 assets. It aims to integrate CEVA’s global logistics capabilities with Almajdouie’s regional expertise, establishing one of the top five logistics players in Saudi Arabia and aligning with Saudi Vision 2030 to bolster economic transformation and global connectivity

Photo: CEVA and Almajdouie.

Breakbulk article: “CEVA, Almajdouie Join Forces in Saudi Arabia,” industry news

September 4, 2024 – Mammoet

Unveils World’s Strongest Land-based Crane

Location: Westdorpe, Netherlands

Event: Mammoet unveils the SK6000, the world’s most powerful land-based crane, with a 6,000-ton lifting capacity.

Significance: Designed to support large-scale projects in sectors like offshore wind, oil and gas, and nuclear power, the SK6000 enables faster construction with lifts of up to 3,000 tons to heights of 220 meters. It can operate on electric power and is optimized for global transport using shipping containers.

Photo: Mammoet.

Breakbulk article: “Mammoet Unveils World’s Strongest Land-based Crane,” industry news

SEPTEMBER

September 2024 – ADNOC’s Ruwais LNG Project Gains

Global Partners

Location: Abu Dhabi, UAE

October 1-3, 2024 – ILA Port Strike

Location: East and Gulf Coast Ports, USA

Event: The International Longshoremen’s Association goes on strike, briefly halting operations at key U.S. ports.

Significance: The strike disrupts supply chains across industries. At the end of three days, ILA agrees to a tentative agreement that extends its master contract to Jan. 15, 2025, and members return to work.

Photo: Breakbulk Americas 2024.

Related video interview:

“No Challenge Too Great for ILA” with Paul Mosley, President, International Longshoremen’s Association Local 1414.

OCTOBER

October 2, 2024

– Spliethoff Expands Fleet

Location: Wuhu, China

Event: Shell, TotalEnergies, BP, and Mitsui each acquire a 10% stake in ADNOC’s Ruwais LNG project, marking the MENA region’s first LNG export facility powered by clean energy.

Significance: The Ruwais project will include two liquefaction trains with a combined capacity of 9.6 million tons per year, nearly tripling the UAE’s current LNG production. This plant will become one of the world’s lowest-carbon LNG facilities, setting a new benchmark for sustainable natural gas projects.

Photo: ADNOC.

Breakbulk article: “Quartet of Shippers Invest in UAE Gas Project,” Issue 5

Event: Spliethoff announces the expansion of its fleet with an order for eight L-type multipurpose vessels.

Significance: The 203-meter vessels will have a total capacity of 33,700 cubic meters and a deadweight tonnage of 28,600, making them the largest in Spliethoff’s fleet. The ships will feature five side-loaders and three 150-tonne cranes, increasing energy-efficient operations.

Photo: Spliethoff

Breakbulk article: “Spliethoff Expands Fleet With Eight New Vessels,” industry news

October 2024 – Panama Canal

Drought Restrictions Add Up

Location: Panama Canal

Event: Drought conditions limit ship crossings, creating severe delays.

Significance: Monthly toll revenues fall by $100 million because the canal was unable to fully handle the $270 billion worth of annual cargo flow since August. Companies like Maersk shift cargo to rail transport, while others extend their routes to avoid the canal.

Photo: Wallenius Wilhelmsen.

Breakbulk article: “Can Panama Canal Mitigate Endless Drought?” in this issue, page 74

October 15-17, 2024 –Breakbulk Americas 2024

Location: Houston, Texas, USA

Event: The largest regional event for the project cargo and breakbulk industry across the Americas.

Significance: Participants discuss solutions to recent disruptions, explore business opportunities, and foster connections across the industry among more than 5600 participants.

Photo: Breakbulk Americas 2024.

Breakbulk article: “Breakbulk Americas 2024 Event Recap,” in this issue, page 79

MOVERS AND SHAKERS

Highlighting Recent Industry Hires, Promotions and Departures

Combi Lift Projects USA

Ralph Stierli has started a new position as COO of project forwarder Combi Lift Projects USA, which is part of the Bremen-based Harren Group. Stierli boasts nearly three decades of experience in the logistics sector with companies including Panalpina, American Lamprecht Transport, Solaris Global and Fracht USA. Prior to Combi Lift, the executive was CEO at chemical manufacturing company Renewco2.

Based in Houston, Stierli said his new position would involve supporting the team with the “execution and expansion of both regular and oversized projects from start to finish.”

DP World

DP World has named David D’Annunzio as its global vice president for automotive logistics. D’Annunzio, who previously held executive roles for KRE Partners, a consulting firm specializing in the automotive and logistics sectors, will oversee the strategic development of the company’s automotive business, helping to expand its presence across the industry.

Dubai-based global port operator DP World’s automotive division provides supply chain solutions including inbound transport, production and assembly, and finished vehicles. “With David at the helm, we are poised to expand our reach and elevate our services to position DP World as a frontrunner in automotive logistics,” said Beat Simon, global CCO of logistics.

Technip Energies

Robert Scott has started his new role as managing director for the Americas at energy services company Technip Energies. The Texas-based executive will oversee Technip Energies’ operating centers in Houston, Claremont and Boston in the U.S., and Bogotá in Colombia. Scott’s previous experience includes executive roles with Bechtel and maritime engineering firm Birdon America. He is also a decorated veteran of the U.S. Marine Corps., where he received the Legion of Merit and Bronze Star medals.

“We are pleased to have Robert joining Technip Energies to be part of the solution,” said COO Loïc Chapuis. “He will bring his recognized leadership and extensive knowledge of our industry to this newly created position to deliver on our ambitions in the Americas.” Technip Energies is a member of the Breakbulk Global Shipper Network

Chapman Freeborn

Chapman Freeborn has appointed Allen Liu as president of its newly expanded operations across Greater China. Liu joined the aircraft charter company in 2012, enjoying successful stints as senior cargo manager for China and vice president for cargo for North Asia. During this time, he led the establishment of new offices in southern and southwestern China. In his new role, Liu will oversee all freight operations in the region as part of Chapman Freeborn’s long-term strategy to deepen its commitment to the Chinese market.

“For more than twenty years, Chapman Freeborn has been making steady progress in the vibrant Chinese market with six offices in major cities such as Shanghai, Shenzhen, Beijing, Chengdu and Hong Kong,” Liu said. “This appointment is proof of Chapman Freeborn’s commitment to the Chinese market, which has grown significantly in recent years. I look forward to leading our team in China and leveraging the Group’s more than fifty years of experience to continually innovate our services and strengthen Chapman Freeborn’s competitive position in China.”

David D’Annunzio

Allen Liu

Robert Scott

Ralph Stierli

Trans Global Projects

Eva Heumann has joined Trans Global Projects (TGP) as the company’s global head of communications and marketing. Heumann, a public relations expert specializing in transport and logistics, previously served almost three years as a senior communications specialist for deugro Group.

“Eva brings a wealth of experience to the role having worked across the construction, research and logistics industries,” said Colin Charnock, CEO of TGP. “This is an exciting time for TGP as we continue to expand both the scale and scope of our operations. Eva will be key to communicating this to customers – old and new – and proving TGP really is a trans global player.”

Air Charter Service

ACS Time Critical, part of the Air Charter Service Group, has named Robert Alleman as CEO of its North American Time Critical Services division. Welcoming Alleman to the team, ACS Group cargo director Dan Morgan-Evans said that given North America was the largest market for the aircraft charter broker’s onboard courier and truck offerings, it was “essential” to have an experienced CEO on board.

Alleman, who will be based in ACS’s Houston office, previously held executive positions with logistics firm Royale International and air charter company Chapman Freeborn. “Houston is the ideal base for us as the heart and soul of Texas,” he said. “The city has a diverse cultural population and is a global logistics hub. I’m really looking forward to getting started here and we are hiring at the moment in order to build a formidable time critical team in Texas.”

Hareket

Nimalan Logeswaran has joined Türkiye-headquartered heavy-lift specialist Hareket as the company’s new chief commercial officer. Logeswaran’s remit includes collaborating with the CEO and Board to shape the group’s sales strategy, drive Hareket’s global expansion and lead the development of its innovation series and specialized equipment division.

“Working and living in various regions has given me the opportunity to gain significant knowledge and experience, which will be invaluable for Hareket’s growth ambitions,” Logeswaran said. “Hareket’s mission to become a global leader in the engineered heavy-lift industry, along with its commitment to investing in innovative equipment, will no doubt bring great value to our clients. I look forward to contributing to Hareket’s growth and success.”

Methanex

Roger Strevens has started his new role as director, low carbon regulation and advocacy at Methanex Corporation, the world’s largest producer and supplier of methanol. Strevens, a regular speaker at Breakbulk events, previously served as VP of global sustainability then VP of regulatory and environmental affairs at Wallenius Wilhelmsen.

“I’m moving from the demand to the supply side of green energy. My new role with Methanex is so exciting because I can help to bring those worlds closer together. Regulation is the key driver in making that happen – the sense of purpose is huge,” Strevens said on LinkedIn.

Port of New Orleans

The Board of Commissioners at the Port of New Orleans (Port NOLA) has named Beth Ann Branch as the facility’s new president and CEO. Branch, who previously served as chief commercial officer at the Alabama Port Authority in Mobile, was also appointed CEO of the New Orleans Public Belt Railroad (NOPB). The executive will start her new roles on Dec. 1.

“Port NOLA plays an essential role in driving economic growth for our region and state, and I look forward to building on this strong foundation in global commerce,” Branch said. “Together, we will pave the way for more opportunities, creating jobs and driving the economy. I’m eager to work with leaders at all levels as we continue to invest in infrastructure and secure long-term prosperity for Louisiana.”

*BGSN member

*Breakbulk Exhibitor

Eva Heumann

Robert Alleman

Nimalan Logeswaran

Roger Strevens

Beth Ann Branch

HEARD AT BREAKBULK AMERICAS

It was standing room only at the main stage in Houston for the highly anticipated panel discussion “Fleet Capacity: Planning for the Future”. Sponsored by dship Carriers and moderated by Drewry Shipping’s Ferenc Pasztor, panelists from BBC Chartering, Bahri Line, Intermarine and dship went head-to-head on a broad range of critical issues from newbuilding programs, freight rates, project cargo demand and regulations.

“The market we see is extremely positive. This year has been really booming – carriers around the world are struggling for space, which is a good thing for vessel owners.

Rajith Aykkara, vice president of Bahri Line

“Right now freight rates are a bit higher than they were pre-COVID and this is healthier for the market. A lot of that is based on the fleet and the project outlook not only for oil and gas and renewables but also data centers and other things we haven’t seen before. So there is a flow of cargo expected to come in that keeps the ships busy for right now.”

Richard Seeg, president of Intermarine Carriers

“There are a lot of regulations coming in – especially in Europe, where we are expecting even more – and it’s all costing money. Either you need new ships, which are much more expensive than ten years ago, or you need to do something to those old ships, which also costs money. It’s going to make things more expensive either way.”

Melanie Drehkopf, CCO of dship Carriers

“We need to increase the fleet or else we’re going to have a lack of tonnage. We’ve had a decade where not much has been developed and that’s where we are now – if people do not start taking it seriously, we will have a demand-supply imbalance from 2026 and 2027 onwards when older vessels start to hit twentyplus years.”

“We are finally in a balanced market post-COVID. But let me start with this number: US$2.5 million deadweight tons. That is what’s missing from the project carrier orderbook.”

Ferenc Pasztor, head of ports and specialized shipping research at Drewry

Lars Schoennemann, managing director of BBC Chartering Singapore

BEST OF BREAKBULK STUDIOS

The year’s most-watched interviews filmed at or alongside Breakbulk events in 2024.

Event: Breakbulk Americas

Title: No Challenge Too Great for ILA

Featuring: Paul Mosley, President, International Longshoremen’s Association Local No. 1414

Event: Breakbulk Middle East

Title: Técnicas Reunidas: Making Oil & Gas Greener

Featuring: Mauro Varelo, Global Logistics, Purchasing, and Commodity Manager, Técnicas Reunidas

Event: Breakbulk Americas

Title: Join DHL’s Jim Giedraitis on a Walk and Talk

Innovation Tour

Featuring: Jim Giedraitis, Head of DHL Americas Innovation Center, DHL Global Forwarding

Event: Breakbulk Middle East

Title: DHL Strategy Provides Stability in an Uncertain Market

Featuring: Peter Dudas, Head of Global Commercial and Tendering Strategy - Industrial Projects, DHL Global Forwarding

Event: Breakbulk Middle East

Title: How Projects Are Transforming Saudi Arabia

Featuring: Lars Greiner, Managing Director/RSGT Multipurpose Business, Red Sea Gateway Terminal

WOMEN IN BREAKBULK UPDATE

5 Ways to Advance Your Career: Lessons from Houston Rockets’ Gretchen Sheirr

By Leslie Meredith

At first glance, you might wonder why the president of business operations for the Houston Rockets was the keynote speaker at Women in Breakbulk this year in Houston. Yes, she’s a female executive in a sea of men—one of only five women at the executive level in the NBA. But her experience has valuable lessons for women across many industries, including project cargo, logistics, and maritime. Plus, she had an easygoing, matter-of-fact manner that I knew would appeal to our members. Over the course of 30 minutes, Gretchen shared advice that women could put to work as soon as they returned to their offices.

Take the Road Less Traveled – and Own It

Gretchen started with a story about her early career path, one she admitted was less glamorous and often seen as a stepping stone rather than a destination: ticket sales. “Nobody stays in ticket sales,” she recalled. For most, it’s a route into the sports industry—a foot in the door, a way to get to the “cooler” jobs in sponsorship or marketing.

But Gretchen saw something others didn’t: ticket sales meant being close to the revenue, and, in sports, revenue is everything. “It’s the biggest revenue stream for a team outside of TV deals, and yet no one wanted to be an expert in it,” she said. So, she made that her niche. “Sometimes the road less traveled is the one with the most opportunity,” she said, encouraging others to consider roles that are overlooked but essential.

Don’t Wait for Permission – Take Initiative

“If I saw something that wasn’t being done, I just did it,” she told us. This mindset isn’t about being reckless; it’s about being proactive and showing value. In male-dominated industries, especially, this advice hit home. Instead of waiting to be asked, Gretchen took ownership of projects and let her work prove her capabilities. “If it’s not your job, someone will tell you to stop,” she said. “Until then, keep doing it.”

Trust in the Confidence of Those Who Support You

Like many, Gretchen admitted she battles imposter syndrome. “Every day, 24/7,” she said, but she offered an

unexpected way to manage it: remember who supported you. “Think about who hired you, who believed in you,” she said. For Gretchen, trusting in the judgment of mentors and leaders who saw her potential helped her find confidence. It’s a simple yet powerful reminder that we’re often harder on ourselves than others are on us.

Find the Balance Between Leading and Letting Go

For someone who worked her way up, Gretchen knows how easy it is to micromanage. “It’s my comfort zone,” she admitted. But she’s had to learn that leadership isn’t about doing everything yourself. “If I want to make big changes, I need to let them do the work,” she said, reflecting on how essential it is to trust her team to take charge. It’s a lesson for anyone in leadership: you can’t grow if you’re too focused on the small details.

Success Isn’t Always Glamorous – It’s About Consistency

Gretchen’s journey proves that success doesn’t come overnight, and it’s not necessarily filled with glitz and glamour even in professional sports. For Gretchen, “It’s about being consistent, and proving your value through the work itself.”

Gretchen Sheirr

Two wellness coaches for a group activity plus “Mindful Minutes”

Two keynotes

Scheirr President Business Operations

Two pro trainers: Project Cargo Risk Workshop Women in Breakbulk Lounge ambassador volunteers

Supply Chain Manager – Planning

One unforgettable panel: “Thriving in Times of Uncertainty”

Isha Yadav

Gretchen

Waves of Cargo

INSIDE MSC’S RECORD-BREAKING HEAVY-LIFT MOVE

Congratulations to the project team at MSC, who recently smashed their own heavy-lift record after transporting a 390-tonne hydraulic hammer from Rotterdam to Singapore. We caught up with Bob Langerak, project cargo manager at MSC Netherlands, to discover how the company accomplished it.

Q: How long did the entire project take, from planning to delivery?

BL: There were three key phases: firstly, we needed to check the feasibility of this project! So we needed to check availability and capacity of equipment, then create a quote and ensure that we could meet the customer’s requirements. Then, about a month before the shipping date, the customer confirmed, and it was all systems go. So the project took around 10 weeks in total, including preparation and transit time.

Discover how the company accomplished this complex feat

Timing was key. Everything had to be planned with absolute precision, as floating cranes were only available on specific dates at both the port of loading (Rotterdam) and port of discharge (Singapore). As part of this, we visited the customer’s site to measure and take photos of the hammer; offshore cargo often undergoes modifications, so it was crucial to verify everything physically. We then coordinated with the lashing company to confirm all requirements, and we worked closely with MSC’s head office in Geneva, Switzerland, to finalize the operations and transit time.

The final phase was, of course, the journey from Rotterdam to Singapore, which took 35 days. On arrival, the cargo was initially discharged from MSC London onto a pontoon and subsequently loaded onto a semi-submersible crane vessel that was at anchor in Malaysia. It then continued its journey to an offshore windfarm project in the Pacific.

The cargo is unloaded by the project cargo team in Singapore. Credit: MSC

Q: What was the most challenging aspect of coordinating the transport across multiple countries?

BL: The biggest challenge was sticking to the project schedule, despite external factors such as the weather. For example, it’s impossible to load extremely heavy cargo in certain wind conditions, as you can imagine, but also unloading in very hot and humid conditions had its challenges! Considering the different conditions in Singapore, the physical operations were slower. However, we countered this with bigger teams to ensure everyone’s safety and wellbeing. With thanks to the stakeholders’ dedication and expertise, as well as seamless communication across thousands of miles, everything went smoothly. It was a joint effort with multiple partners, including the floating crane companies in Rotterdam and Singapore, the lashing crews and surveyors, as well as the ship’s captain and crew. The chief officer had actually collaborated with us on a previous project, so it was fantastic to work together again. His knowledge and experience were invaluable.

Q: Were there any special packaging or handling requirements due to the unit’s weight and dimensions?

BL: Weighing 390 tonnes and measuring over 25 meters, the cargo was much too big to lift using a land-based crane. That’s why we used floating cranes – including the 125-meter high Asian Hercules II – instead. Sometimes known as “crane barges,” these huge, heavy-duty cranes are specially designed to carry massive loads, such as oil

drilling equipment. However, they are only available at a small number of ports around the world, so we have to choose our port pairs wisely for these kinds of shipments. By combining floating cranes with our container vessels, we can offer a frequent, fast and cost-effective alternative to geared vessels (ships equipped with their own cranes to load and offload cargo).

Q: What were the key takeaways from this project, and how will they influence MSC’s future heavy-lift operations?

BL: This extraordinary project really showcases MSC’s project cargo expertise and flexibility. It shows that we have the equipment and infrastructure to support customers all over the world with tailored solutions for highly complex shipments. Plus, we can carry the cargo on our weekly services, which simplifies the planning for our customers because they know exactly when their shipment will arrive. So, for me, the top takeaway is that MSC is ready for the future and we’re looking forward to new challenges. In fact, we are scheduled to carry our second 390-tonne piece of cargo, and we’ve already received inquiries about even heavier loads. There’s no stopping us now!

*Breakbulk Exhibitor

The 390-tonne hammer was transported expertly from the Netherlands to Singapore. Credit: MSC

Bob Langerak supervises the unloading of the cargo in Singapore. Credit: MSC

‘TIS THE SEASON TO CELEBRATE WITH BREAKBULK

We’ve put together a group of holiday gifts for project cargo and breakbulk professionals and everyone who loves them – all featuring companies you’ve seen here in Breakbulk Magazine and at Breakbulk events.

Men’s Inter Miami CF Adidas Black 2024 La Noche Authentic Jersey

US$159.99

With the Fracht Group logo on the sleeve, this official jersey is designed with the Vice City in mind, introducing a pink trim that reflects the lights of the iconic skyline during Rosanegra Nights. Its crisp, goal-scoring graphics and AEROREADY technology will make you feel like part of the squad when Inter Miami CF takes the pitch. www.mlsstore.com

WIMOs Hardcover Bound Notebook

$18

Whether crafting a masterpiece or brainstorming the next big idea, this notebook will inspire your inner wordsmith. WIMOs is the official association partner of Women in Breakbulk. www.wimos.org

Rotterdam Red Rubber Duck

€6,50

The perfect addition to peek out of a holiday stocking. It’s also a fun memento of a visit to Breakbulk Europe, which will celebrate its 20th anniversary, 13-15 May 2025. www.hollandsouvenirshop.nl/en-gb/

Fracht Group CEO Ruedi Reisdorf, whose company sponsors InterMiami CF

Heavy Cargo - The Truck Simulator

$9 - $30

By Aerosoft GmbH in cooperation with Gruber Logistics

Available for Xbox, Steam, Nintendo Switch Transport oversized cargo through an extensive game world, including dynamic weather and day-night cycle.

Xbox

Steam

Nintendo Switch

Mammoet Formula 1 Trucker Hat

€17,50

The cap sports the Mammoet logo and the Formula 1 Heineken DGP event supplier logo on the front. The back has a white Mammoet logo and the Dutch flag. Made of Ottoman fabric, the hat is adjustable and fits most people. www.store.mammoet.com

DeBerardinis Heavy Haul’s Super Dog 1991 Mack Superliner Replica

$259

Every detail has been carefully built into this diecast collectible replica, including sliding, pivoting and locking fifth wheel, rolling rubber front and rear wheels with steerable front axle, and air and electrical lines that fit most trailers or can be modified to connect. Super Dog t-shirt included! www.heavyhaulreplicas.com

DeBerardinis Heavy Haul Super Dog T-shirt

$29

An iconic heavy haul shirt for big truck lovers everywhere. Original “Super Dog” artwork featuring DeBerardinis’ Super Dog 1991 Mack Superliner. Available in medium to 4XL. www.heavyhaulreplicas.com

Mammoet Formula 1 Kids Sweater

€49

Younger Formula 1 fans will love the Mammoet Formula 1 sweater with two side pockets and the Mammoet logo with racing car on the left chest. The back features a big Mammoet logo and the Formula 1 Heineken DGP event supplier logo. On the left sleeve is the Dutch flag, and on the right sleeve, the circuit of Zandvoort, The Netherlands. Available for kids in sizes 8, 10, 12 and 14 years. www.store.mammoet.com

OUTLOOK 2025

BREAKBULK EVENTS & MEDIA

GLOBAL • MIDDLE EAST • ASIA • EUROPE • AMERICAS

With analysis from the Energy Industries Council (EIC)

Featuring commentary from Al Faris, Bahri Line, BBC Chartering, Chipolbrok, deugro, DHL Industrial Projects, DSV, FOX Brasil, Fracht Group, JGC Corporation, JM Baxi Heavy, Larsen & Toubro, Maersk Project Logistics, Port of Rotterdam Authority, Roll Group, Siemens Energy, Swire Projects

ENERGY SECURITY TAKES PRIORITY

By the Energy Industries Council (EIC), a Breakbulk Strategic Partner

The BBC Arkhangelsk transports a full deck of wind blades in Vaasa, Finland.

Credit: BBC Chartering

As 2024 comes to an end, global energy priorities have shifted, with a focus on energy security and affordability taking precedence over sustainability. Oil and gas remain central to the global energy mix until at least 2030, as indicated by the International Energy Agency (IEA). Rather than calling for a complete phase-out of oil and gas, the IEA is now concentrating on eliminating “unabated” oil and gas assets, those lacking carbon capture technology, signaling a growing endorsement of carbon capture solutions.

Despite ongoing geopolitical instability in regions like Ukraine and the Middle East, oil and gas prices have remained relatively stable. The sector’s high profit margins have encouraged operators like BP, Shell and Total to continue investing in oil and gas projects. Contractors are similarly retrenching in the sector, seeing greater certainty and profitability compared to renewable energy and clean technology projects.

However, this renewed focus on fossil fuels has raised concerns about the impact on the global energy transition. Shell has already reduced its 2030 carbon emissions target and scrapped its 2035 goal to further reduce its carbon footprint. BP has also scaled back its decarbonization plans, prioritizing investments in fields in the Gulf of Mexico, such as Kaskida and Tiber, and redeveloping oil assets in Kuwait. Although achieving net zero by 2050 remains a target, meeting shorterterm milestones is proving difficult.

According to data from EICDatastream, oil and gas projects are more likely to reach Final Investment Decision (FID) than those in other energy sectors, with around 25% of these projects gaining approval. Nevertheless, challenges persist. Rising inflation is expected to impact

heavily indebted sectors like solar, wind and nuclear energy more severely. Ongoing unrest in the Middle East could also disrupt oil and gas production in the short to medium term.

While hydrogen and carbon capture projects receive political backing through incentives, government funding and tax relief, their progress has been sluggish. Only 12% of carbon capture projects set to start by 2028 have reached FID, with hydrogen projects facing similar delays. High costs, the risks of first-of-a-kind technologies and supply chain issues have all contributed to these delays. Uncertainty over government approval processes further complicates matters. Additionally, the energy sector is facing a future skills shortage, which could hinder the rollout of crucial projects, creating bottlenecks that may jeopardize efforts to meet climate targets.

Sustainable Aviation Fuel (SAF) is also gaining attention as the aviation industry seeks to lower its carbon emissions. However, current production meets just 0.5% of global demand, putting it in a unique position as the only sector where demand currently outstrips supply. While the U.S. and Europe lead SAF production, challenges remain. In 2024, the construction of a major SAF facility in Rotterdam was delayed, and BP scaled back its SAF production plans due to lower margins. This could lead to Europe relying on SAF imports from the U.S. and Asia in the short term.

In summary, energy security has taken priority, with a renewed emphasis on oil and gas. However, the progress of clean technologies remains slow, hindered by high costs, supply chain issues, approval delays and a skills shortage. These factors could slow the pace of decarbonization efforts if they are not addressed urgently.

Breakbulk’s Global Outlook continues with regional analysis from EIC and a Q&A with leading companies from each of the four regions: Middle East and Africa, Asia, Europe and the Americas.

OPPORTUNITIES ABOUND IN THE MENA REGION

Following an overview by the Energy Industries Council (EIC), project professionals offer their perspectives on crucial topics such as infrastructure development, key sectors, freight rates and sustainability in the region

EIC Analysis

Oil and gas opportunities are projected to grow in both regions, particularly in natural gas and deepwater wells, with upstream projects comprising almost 60% of total CAPEX. Global decarbonization trends are accelerating interest in hydrogen for synthetic fuels and low-carbon applications, but geopolitical tensions and shipping disruptions pose risks to this growth.

In the Middle East, the oil and gas sector remains dominant, with US$730 billion in additional CAPEX expected by 2030. This is driven by increased gas production and oil output maintenance for stable profits. As energy demand rises and oil prices stabilize, national

Local Leaders Q&A

What is your business outlook for 2025?

Kieve Pinto: We foresee strong growth driven by continued infrastructure development, energy projects and industrial expansion across the Middle East. Abu Dhabi’s oil and gas sector, particularly through ADNOC’s expansion projects, will play a key role in this growth. The emphasis on renewable energy, alongside traditional oil and gas and petrochemical projects, will drive demand for heavy lifting and transport services. Al Faris is well-positioned to meet these needs, and we are expanding our fleet and technological capabilities to support these large-scale ventures.

Rajith Aykkara: The outlook for 2025 is highly optimistic. We anticipate adding more vessels to our service, which aligns with our growth strategy in key trade lanes across the region and globally. With increasing demand, especially in the Middle East and Asia, we are confident that our expanded fleet will see high utilization rates in our trade lines, driven by both ongoing and emerging project opportunities. This

companies are heavily investing in both traditional and renewable energy technologies. Upstream investments, which account for over half of the projected CAPEX, are concentrated in the UAE, Iraq and Saudi Arabia. A good example is Saudi Aramco which is advancing gas projects such as Jafurah, Rub Al-Khali and its Master Gas System.

In Africa, the sector is expanding through new discoveries in Zimbabwe, Ivory Coast, and Namibia, alongside increased gas production in SubSaharan Africa. Nigeria has secured Final Investment Decision (FID) for eight major projects, while Namibia’s Orange Basin is becoming a deepwater hotspot, though commercial output has not begun. Angola leads upstream investments through 2030, while

positions us well to continue meeting the evolving needs of our customers and reinforcing our market presence.

Steffen Behrens: The business outlook for capital project logistics in the Middle East remains very positive, with government spending on capital investments expected to increase by more than 6.5% next year. This growth is driven by several factors including economic recovery, infrastructure development and megaprojects. For

Kieve Pinto, chief operating officer (COO), Al Faris

Mozambique advances as a liquified natural gas (LNG) exporter with the Rovuma LNG and Coral Norte floating liquefied natural gas (FLNG) projects, both expecting FID by 2025.

Hydrogen development also shows promise, with Saudi Arabia’s US$5 billion Helios Green Fuels plant and Oman’s goal to produce one million tons per annum (mtpa) by 2030. Jordan and the UAE are exploring hydrogen initiatives, while Africa’s market remains less mature. North Africa could export hydrogen to Europe, and South and East Africa may export ammonia. However, financing gaps, infrastructure issues, and governance risks hinder progress, with only 17% of hydrogen projects beyond feasibility and just 4% having reached FID (Figure1)

example, Saudi Arabia’s construction output value is expected to reach US$150 billion by 2025. With a 4% growth rate for the MENA region in 2025 we are still well above most other regions, therefore overall indicating a strong economic environment for capital project logistics.

Mohammad Jaber: Abu Dhabi is expected to maintain robust growth in its project logistics sector by 2025, driven by significant investments in

vice president, Bahri Line

Mohammad Jaber, MD, Air and Sea, DSV Abu Dhabi

Steffen Behrens, president, deugro Middle East

Rajith Aykkara,

infrastructure, energy and construction, such as the Hail and Ghasha project and Borouge 4. Key initiatives such as the Abu Dhabi Economic Vision 2030 and the “Made in UAE” focus will further boost demand for project logistics. The sector will also benefit from ongoing developments in oil and gas and renewable energy across the UAE and the GCC, as well as transportation infrastructure and urban development projects. These developments will open up opportunities for specialized project cargo solutions and enhanced supply chain services. Megaprojects like Hail and Ghasha will significantly increase volumes over the next three years. The growing demand for the fabrication of modules, oil and gas project skids, and pressure vessels in the UAE to supply projects across the region and Europe, driven by the cost competitiveness of the UAE, will continue to play a key role. However, geopolitical conflicts may continue to add cost pressures until these issues are resolved.

What sectors or specific new projects in your region do you think will be significant for breakbulk and project cargo in the coming year?

Kieve Pinto: Key sectors include oil and gas, renewable energy (solar and wind) and infrastructure. In Abu Dhabi, ADNOC’s major ongoing projects such as the Hail and Ghasha gas development, Ruwais LNG and the expansion of offshore oil fields will significantly increase the demand for project cargo services. Additionally, large projects like NEOM and the Red Sea Development in Saudi Arabia will require extensive heavy lifting and specialized logistics for breakbulk cargo, which Al Faris is well-equipped to handle.

Rajith Aykkara: The energy sector will remain a major driver, with new developments in both oil and gas and renewables. Megaprojects within Saudi Arabia’s Vision 2030, such as NEOM and Red Sea developments, are expected to require extensive logistics and transport solutions, which will boost

demand for breakbulk services. Additionally, the expansion in industrial sectors and infrastructure across the Middle East region will further support activity in our sector.

Steffen Behrens: It will mainly remain with the oil and gas sector, although with a healthy mix of renewables and obviously new sectors such as green hydrogen, which deugro is heavily involved in already.

Mohammad Jaber: Several sectors will drive breakbulk and project cargo growth in the Middle East over the next few years. In the energy sector, the expansion of oil and gas facilities –including new refineries and offshore drilling projects – continues, particularly in the UAE and Saudi Arabia, with several packages already awarded. In renewable energy, large-scale solar and wind power projects, especially in the UAE and Saudi Arabia, will drive logistics demand. Elsewhere, megaprojects such as NEOM in Saudi Arabia, the Expo 2020 legacy projects in Dubai, new

Credit: Al Faris

airport construction and GCC railway network expansions will significantly increase volumes over the next five years.

Do you think the existing infrastructure (ports, terminals, vessels) in Asia is prepared to handle the demand for breakbulk and project cargo? What improvements or resources are needed, if any?

Kieve Pinto: The region’s infrastructure has seen considerable investments, particularly in ports like Jebel Ali in the UAE and Khalifa Port in Abu Dhabi, which are equipped to handle high volumes of breakbulk and project cargo. However, with increasing demand from projects such as ADNOC’s oil and gas expansions and other large industrial projects, further capacity expansion and advanced handling technology will be needed. Enhancing automation, streamlining customs procedures and upgrading equipment at ports will ensure the region remains competitive and capable of handling future demands.

Rajith Aykkara: While the Middle East has made strides in enhancing port infrastructure and handling capabilities, there is still room for improvement. Ports and terminals are progressively adapting to the unique demands of breakbulk cargo, but expanding fleet capacity, modernizing equipment and digitalizing processes would further strengthen our ability to meet growing demand. This preparation will be crucial as project cargo often involves high-value, oversized equipment requiring specialized handling.

Steffen Behrens: We do already see new developments coming up such as the port of NEOM in Saudi Arabia, extensions in Abu Dhabi and plans for some of the eastern ports of Oman. Mohammad Jaber: The region has made substantial investments in modernizing and expanding its port infrastructure. Ports such as Jebel Ali, Khalifa Port and King Abdullah Port are

equipped with state-of-the-art facilities to handle breakbulk and project cargo. However, ongoing improvements in technology, automation and capacity expansion are needed to meet rising demand. Additional rail connections to industrial areas and the development of dry ports could optimize freight costs and improve sustainability strategies. Meanwhile, specialized vessels for heavy-lift and project cargo are increasingly available in the region, but further investments in larger and more advanced vessels are required. Planning for increased demand is crucial, particularly due to the longer routes some vessels must take to avoid Red Sea challenges, which remove tonnage from the market. Handling oversized cargo (exceeding 1,000 metric tons) adds further complexity. However, improvements are needed, such as in automation and digitalization of port operations and customs interfaces, training programs to improve workforce skills, infrastructure investments for handling oversized cargo and enhanced intermodal connectivity.

What trends are you seeing in freight rates, and do you anticipate these changing?

Kieve Pinto: Freight rates have been volatile due to global supply chain disruptions, fuel prices and geopolitical factors. In the Middle East, rates are expected to stabilize over 2024-2025 as global shipping conditions improve. However, the sustained demand for project cargo, particularly from the oil and gas sector in Abu Dhabi and other regional megaprojects, may keep upward pressure on rates. Fuel prices, vessel availability and environmental regulations will also influence freight rate trends.

Rajith Aykkara: Freight rates have stabilized compared to recent years, but geopolitical and economic shifts can always impact pricing. We anticipate that rates may remain somewhat volatile, given the ongoing global

economic adjustments. However, I expect regional carriers to adapt through flexible solutions tailored to customer needs.

Steffen Behrens: Unfortunately, at the moment, it’s all a bit subject to geopolitics and regional stability. We obviously hope that things calm down and we can revert to a more stable rate environment again in order to deliver projects on time and on budget.

Mohammad Jaber: Freight rates have been volatile due to global supply chain disruptions from the pandemic, geopolitical tensions and fluctuating fuel prices. This creates challenges for EPC projects, especially in fixing long-term rates. The cost of insurance, longer transit times (particularly through the Red Sea) and rate fluctuations make it difficult to maintain contracts. DSV has experienced significant delays, rate hikes and even cargo held for months in Iran in arrested vessels, impacting customers SLAs. Freight rates are expected to stabilize in the near future as supply chains adjust, but rates may remain higher than pre-pandemic levels due to inflation, fuel prices and the peak in project activities over the next few years. However, geopolitical tensions could lead to further disruptions.

What

are the biggest challenges for your sector in the year ahead, and how is your company preparing to navigate them?

Kieve Pinto: One of the biggest challenges will be meeting the high demand for heavy lifting and transport services driven by large-scale projects in oil and gas, infrastructure and renewable energy sectors. In response, Al Faris is making significant investments in expanding our fleet. We are bringing in more mobile cranes and have already invested in new axle lines, which will be delivered in 2025 to meet increasing demand. We’re actively investing in both the UAE and Saudi Arabia, ensuring we have brand-new

Figure 1: Top Sectors by Highest FID Rate in Middle East and Africa

11% Renewables 5%

Source: EICDatastream

equipment to support future projects. Additionally, we are continuously upgrading our technological capabilities and workforce skills to ensure we can tackle complex projects efficiently and sustainably.

Rajith Aykkara: Among the primary challenges are managing supply chain resilience and accommodating increased environmental regulations. Bahri is focused on streamlining logistics processes, investing in technology for efficiency and preparing for shifts in regulatory compliance. Moreover, we’re looking closely at alternative energy options for shipping and transport to align with sustainability goals.

Steffen Behrens: Regional instability and geopolitics where you have to have contingency plans in place.

Mohammad Jaber: Firstly, unpredictable disruptions, particularly from geopolitical conflicts in the Middle East, affect transit times and costs. Regulatory changes and shifts in trade policies and customs regulations also add operational complexity. We must also consider how rapid advancements in technology require ongoing change and investment. Building resilience, investing in technology, and focusing on training and development are all ways we can prepare for and mitigate these challenges.

Is the balance between global and regional supply chains changing, and, if so, in what ways?

Kieve Pinto: Yes, regional supply chains are becoming more prominent due to initiatives like the UAE’s in-country value (ICV) and Saudi Arabia’s Vision 2030, which emphasize local sourcing. In Abu Dhabi, for example, ADNOC’s ICV program encourages local content and service providers, shifting the balance more toward regional supply chains. Al Faris is adapting to this shift by strengthening partnerships with local suppliers and manufacturers to ensure we can meet the rising demand efficiently and sustainably.

Steffen Behrens: We definitely see a push towards Asia, be it on the contracting side or on the investment side, and we believe this will also continue in the future.

Rajith Aykkara: We are indeed seeing a recalibration between global and regional supply chains. There’s a growing emphasis on establishing more resilient, localized supply networks within the Middle East, which reflects both economic strategy and recent shifts in global logistics dynamics. This evolution provides opportunities for regional players to enhance their role within the global market.

“THERE’S

A GROWING EMPHASIS ON ESTABLISHING MORE RESILIENT, LOCALIZED SUPPLY NETWORKS IN THE MIDDLE EAST.”

- RAJITH AYKKARA, BAHRI

Mohammad Jaber: The balance between global and regional supply chains is shifting due to several factors: Firstly, there is an increased focus on regional supply chains to reduce dependence on distant sources, enhance reliability and lower transportation costs. DSV is highly involved in local manufacturing, supporting government initiatives such as in-country value programs. Nearshoring, where production is moving closer to consumption markets to mitigate global disruptions, and the region’s modern infrastructure, especially in power supply, supports this shift. We also have trade agreements such as the Abraham Accords that will boost regional trade networks, particularly with railways connecting Asia, the Middle East and Europe. Finally, regional logistics infrastructure and technology are improving, making local supply chains more viable. The GCC railway network will be a game-changer in the next five years. At DSV, our systems provide clients with greater supply chain visibility and advanced options like PO and order management, with over 2000 RPAs in operation. In conclusion, while challenges persist, the Middle East’s logistics landscape will see significant growth driven by regional investments and development. Adaptation, infrastructure investment and embracing technological advancements will be critical for companies to thrive.

LINE

Credit: Al Faris

POWER-HUNGRY ASIA TO SEE RAFT OF NEW PROJECTS

Lagging Infrastructure and Capacity Constraints Temper Otherwise Positive Outlook

Making the right investments in equipment, commensurate with the returns expected, will be a challenge in the years to come, says JM Baxi Heavy.

Credit: JM Baxi Heavy

EIC Analysis

Asia is projected to experience significant growth in energy demand and emissions, driven largely by China, India and Southeast Asia. By 2025, the region will consume half of the world’s electricity, with coal remaining the dominant energy source despite an increase in renewables.

There are distinct variations in energy priorities: South Korea and Japan, resource-poor nations, are heavily dependent on imports, while resource-rich Australia leads in LNG, coal and mineral exports (Figure 1) . In contrast, China and India, with high energy needs and coal dependency, face unique decarbonization challenges. For emerging economies

Local Leaders Q&A

What is your business outlook for 2025?

Dharmendra Gangrade: The overall business outlook for 2025 looks very positive with many research organizations projecting continued investment in capex, especially in India. The “Make in India, Make for the World” campaign has already generated substantial interest

like Thailand and Vietnam, infrastructure shortages and project funding issues remain obstacles.

Most regional investments are directed toward oil and gas, which continue to receive the majority of capital expenditures achieving FID (Figure 2) . However, challenges like declining oil production in India and Indonesia, Australian offshore project delays, and reduced LNG competitiveness persist.

Governments are responding by bolstering support: Indonesia plans to offer 54 new exploration blocks by 2028, India is enacting policy reforms, and Australia’s Future Gas Strategy emphasizes natural gas as a transitional energy source.

Decarbonization efforts are growing but face hurdles, including

regulatory gaps and financing issues. Markets like Australia, Malaysia and Indonesia show potential for CCS, especially in hard-to-abate sectors. Hydrogen projects in Australia, South Korea and India are gaining traction, though FID rates lag behind the EU and the U.S. (Figure 3)

The Asia-Pacific region is also advancing in offshore wind, with a 331GW project pipeline (Figure 4) Taiwan and South Korea are leaders in proposed capacity and planned auctions, though Taiwan’s local content requirements and supply chain limitations are increasing costs and causing delays. Despite these challenges, strategic investments are positioning Asia-Pacific as a critical player in the global energy transition.

Dharmendra Gangrade, head of Larsen & Toubro Logistics Management Center

among multinational companies, many of whom have made significant investment in India in the last five years.

Koichi Kaizu: Our business outlook for 2025 is optimistic. We aim to enhance our competitiveness and profitability in large-scale EPC projects, including LNG receiving terminals, solar power, biomass power, pharmaceuticals, hospitals and the chemical sectors.

Sameer Parikh, president/ chief business officer, JM Baxi Heavy

Koichi Kaizu, subject matter expert - logistics / module transportation, JGC Corporation

Ge Yanhua (“Stella”),

director, Chipolbrok

Namir Khanbabi: The outlook for 2025 is cautiously optimistic. Forecasted demand for breakbulk and project cargo remains strong, driven by ongoing and expected infrastructure projects and the energy sector. That said, we are in a very volatile geopolitical environment, which has the potential to change circumstances unexpectedly, without a clear view of whether this will provide opportunities or create issues.

Namir Khanbabi, general manager, Swire Projects

Janusz Kuzmicki,

director, Chipolbrok

Sameer Parikh: We’re expecting a series of new projects to occur across India and the surrounding region, especially starting in Q2-Q3 of 2025. We expect logistics activities to really pick up over the next few years.

Ge Yanhua: We are confident for next year. In particular, we see a strong export market from the Far East, versus weak exports from Europe, which is struggling with poor growth, high costs and a lack of competitiveness. The Chinese export industry is booming - whether car production, wind power equipment or numerous industrial components – but the question is to what extent growing protectionism will influence volumes?

What sectors or specific new projects in your region do you think will be significant for breakbulk and project cargo in the coming year?

Dharmendra Gangrade: The energy sector, including renewable energyrelated project cargo, will be the driver for growth in Asia. More and more new projects are being announced in the region, often with very tight project schedules and higher instances of modularization, which will increase demand on specialized carriers and equipment.

Koichi Kaizu: Significant sectors for breakbulk and project cargo in the coming year will be energy transition projects (LNG, CCS), renewable energy projects (offshore wind farms, biomass power plants, hydrogen and ammonia) and infrastructure projects including chemical recycling.

Namir Khanbabi: In our region, significant projects are in the renewable energy, mining, and oil and gas industries, as well as some large-scale infrastructure projects, which drive demand for breakbulk and project cargo services.

Sameer Parikh: We’re anticipating growth primarily in offshore oil field projects, as well as in the oil and gas and power sectors. The

nuclear sector is on the rise in India, though it seems the timelines are a bit longer, with visible outcomes expected around 2028.

Janusz Kuzmicki: There remains increasing demand for alternative green energy projects, in which China has a remarkable impact as producer and supplier of such equipment. This is our main market for our westbound trades, together with other big projects sourced from the Asia region.

Do you think the existing infrastructure (ports, terminals, vessels) in Asia is prepared to handle the demand for breakbulk and project cargo? What improvements or resources are needed, if any?

Dharmendra Gangrade: Existing infrastructure for handling project cargo in some ports may not be adequate and requires modernization in order to meet the complexity of ever-larger cargo. In particular, ports in India needs to focus on upgrades to keep pace with growing demand and be more efficient.

Koichi Kaizu: Our view is that Asia’s infrastructure is generally robust for breakbulk and project cargo. In the meantime, for the purpose of very large modules, enhancements in port

capacity, modernization of terminals and investment in specialized vessels are necessary to ensure efficient handling and transportation.

Namir Khanbabi: While Asia’s port infrastructure has seen significant improvements, there are still issues around inland logistics to meet the demand. Ports and terminals are enhancing their port capacity and crane lift capability, which may decrease demand for more specialized vessels able to handle oversized and heavy cargo, so this poses a threat as well as an opportunity.

Sameer Parikh: While many ports in India handle containerized cargo, project and heavy cargo often depend on a few key facilities, leading to delays and increased costs. With the expected growth in larger cargo, India needs more ro-ro ports with strong deck capacity and specialized facilities. Current infrastructure is underprepared for rising demand, requiring significant improvements in port equipment, terminal capacity and clearance processes. Addressing these challenges will enhance logistical efficiency and support the country’s booming infrastructure projects effectively.

Ge Yanhua: We have clearly observed that certain regions are investing a

Figure 1: Top Markets by Additional CAPEX (US$bn) Estimated until 2035

lot into new infrastructure, especially in China, the Far East and Southeast Asia, where we feel well supported. But we must also admit that some ports fail to invest, have low productivity and are cost-intensive, with a lack of focus on breakbulk cargo. If we add to these problems with getting skilled labor, we see it as one of the obstacles to handling project cargoes.

What trends are you seeing in freight rates, and do you anticipate these changing? What factors influenced your answer?

Dharmendra Gangrade: In my view, freight rates will remain volatile (moving upward for now) in the shortto mid-term due to various factors such as geopolitical developments, capacity constraints, regulatory restrictions by major economies and demand seasonality. Let’s accept the hard fact that the global supply chain will remain disrupted for a considerable period and the world will have to get used to this volatility.

Koichi Kaizu: Freight rates have been volatile. While fuel price fluctuations are no longer a major critical factor, the freight rate is being influenced heavily by other factors such as geopolitical tensions, supply chain disruptions, climate change, decarbonization and compliance requirements. Therefore, we anticipate that freight rates will remain high in the near term, due to ongoing global uncertainties.

Namir Khanbabi: There is a robust demand for project cargo, which may push up rates throughout 2024 and into 2025. This demand is largely driven by infrastructure projects and renewable energy developments. The global economic outlook for 2025 is generally positive, which will support the growth of the shipping industry. However, geopolitical tensions could pose additional challenges.

Sameer Parikh: The freight market has been pretty unpredictable since covid. We’ve experienced challenges like

Figure 2: Top Markets by Additional CAPEX (US$bn) with FID Secured

Source: EICDatastream

container shortages and geopolitical tensions in areas like the Red Sea, as well as the situation in Ukraine and current issues between Iran and Israel. With fewer players in the heavy cargo sector and growing coastal movement needs in India, we anticipate vessel shortages and rising rates, which complicates planning and budgeting.

Janusz Kuzmicki: The political situation in the Middle East, armed conflicts and transit risks in the Red Sea and Arabian Gulf will continue to impact the shipping industry negatively. Consequently, this impacts prices for consumers. We also keep in mind increased costs relating to emissions, which will rise as of January 1, 2025, so we need to make more allowances in trades to/from the European Union.

What are the biggest challenges for your sector in the year ahead, and how is your company preparing to navigate them?

Dharmendra Gangrade: Volatile freight rates, non-availability of space and the scarcity of resources in terms of equipment and staff are the major challenges we see in the near future. We are addressing these challenges through better and advance planning

by using a digital platform which helps us consolidate requirements across the business. There are growing concerns around the availability of skilled personnel on the shipper side too, since logistics is not the first choice of career for many youngsters.

Koichi Kaizu: For us, the biggest challenges will be managing supply chain disruptions, meeting sustainability goals and regulatory changes. JGC is investing in digital transformation, enhancing risk management practices and collaborating with stakeholders to develop sustainable solutions for future growth.

Namir Khanbabi: Our biggest challenges going forward come from geopolitical tensions, tonnage capacity constraints and the costs of meeting increasing environmental regulatory requirements. In terms of how we are going to navigate them, we adopt a riskbased trading approach to minimize exposure to geopolitical risks. We are actively looking at the tonnage market for opportunities within the charter market for additional capacity in the short- to medium-term. Whilst we are looking at the newbuilding market, with the present ship prices we feel that levels need to come off to make the investment attractive. In terms

of the environmental regulations, our sustainability team are actively pursuing strategies to reduce our carbon footprint, look at new fuels, technologies and strategies to meet our longer-term reduction targets. Additionally, we are engaged in ongoing discussions with our customers regarding the financial implications of these regulations, as opinions differ on who should bear the costs.

Sameer Parikh: A major challenge we foresee is the need for larger assets that meet specific project requirements, along with keeping up with customer expectations. To stay competitive, we know we need to be proactive. However, finding the right balance between investments and expected returns can be tricky, so we’re focusing on careful planning and management to address these challenges.

Ge Yanhua: Our ship captains are confronted with overwhelming bureaucracy, especially in Europe. On top of increasing regulations to protect the oceans and the climate, which of course are necessary, new ships must follow requirements around designs, propulsion systems and more environmentally-friendly operating fuels. We are prepared to integrate these features into our future ships, however there is still a big question mark around which fuel and which propulsion system will be used, since there are still many issues to be settled in respect of availability and cost of such fuels. So, we treat this as a process that will take time.

Is the balance between global and regional supply chains changing, and, if so, in what ways?

Dharmendra Gangrade: Yes, supply chains don’t always cross multiple oceans anymore. Strong regional supply chains have been developed, designed to be less susceptible to global events. After the covid pandemic, many large companies

Credit: Swire Shipping

altered their global supply chains, with nearshoring an increasing feature.

Koichi Kaizu: Considering geopolitical risks and the need for greater supply chain resilience, it would be ideal if we can shift to more regional supply chains. However, we don’t have a clear view or detailed execution plan at this stage for adopting nearshore or friendshoring strategies in order to reduce dependency on distant suppliers. This is because our projects require a certain level of engineering quality assurance, based on proven technology.

Namir Khanbabi: Global and regional supply chains are changing in the current economic and geopolitical climate where regionalization, nearshoring and local sourcing are all increasing. We see this in the wind sector in the Atlantic basin, particularly for the North American market. The movement away from a reliance on China is still prevalent in some markets which have shifted to sourcing from Southeast Asia, India or the Middle East.

Janusz Kuzmicki: China is a good example to consider. Inland demand has been boosted whilst simultaneously the country is on its way to becoming a leading global producer of environmentally-friendly electric cars. The same can be said about other industrial sectors. We recognize that there is a shift towards focusing on domestic markets in Asia, this applies particularly to India.

Upstream 11%

Midstream 5%

Biofuels/SAF 0.56% Renewables 20% Downstream 20%

Capture 0.44%

Source: EICDatastream

until 2035

Source: EICDatastream

Figure 4: Top Countries by Additional Offshore Wind Capacity (GW)

A “cautiously optimistic” Swire Shipping expects to service renewable energy, mining, oil and gas, and large-scale infrastructure projects in the coming years. Credit: Swire Shipping

Figure 3: Top Sectors by Highest FID Rate in Asia

ON THE PATH TO A GREENER EUROPE

Clean Energy Projects Expected to Keep Sector Busy, but Logisticians

Fear Impact of Continued Global Disruption

BBC Leer in Cuxhaven

Credit: BBC Chartering

EIC Analysis

Europe is central to the energy transition, setting ambitious decarbonization goals and rapidly attempting to reduce its dependence on Russian energy.

The RePowerEU plan targets 10Mt of renewable hydrogen production domestically and 10Mt of imports by 2030 to drive energy independence and decarbonize sectors like steel and fertilizer. Germany, Spain and the Netherlands lead green hydrogen initiatives, planning 19GW of capacity by 2030 and representing half of the Final Investment Decisions (FIDs) for projects starting by that year (Figure 1) Supporting this momentum, the EU Net Zero Industry Act (August 2024) has classified electrolyzers as net-zero technology, accelerating manufacturing and permitting processes. In carbon capture and storage (CCS) and carbon capture, utilization and storage (CCUS), the UK and Norway lead, with 55 North Sea projects targeted by 2030. Collaboration among the nine North Sea countries aims to make the region “Europe’s green power plant,” leveraging the existing oil and gas infrastructure and supply chain for the build-out of renewable energy and carbon storage.

Offshore wind is pivotal, with the UK, Germany and the Netherlands expected to reach a combined capacity of 62GW by 2030, benefiting from mature markets and supportive regulations. Half of these projects will be based in the North Sea, which is also promising for green hydrogen production. Challenges persist, such as high production costs, slow permitting, and complex supply chains. While offshore wind is relatively mature, it needs integrated grids for expansion. Green hydrogen, despite political support, faces efficiency and supply chain issues. CCS and CCUS continue to depend on government backing, with many projects still in feasibility stages (Figure 2)

Local Leaders Q&A

What is your business outlook for 2025?

Ruediger Fromm: The increasing order backlog for 2025 signifies a strong demand across various sectors. This surge highlights the execution of numerous projects, particularly in breakbulk and project cargo, promising growth and opportunities in the coming year.

Danny Levenswaard: It’s similar to 2024 – the current market is not great, but it is also not weak. Energy prices are still high compared to the U.S. and China. In terms of volumes, we expect to be handling roughly 6.5 million tonnes annually, the same as 2024. This will be mostly composed of non-ferrous, basic material, followed by steel, forest products and project cargo. With respect to project cargo, we expect a small increase due to the offshore wind projects.

Ruedi Reisdorf: The project business should do better than the overall economy, as there are many muchneeded infrastructure, electricity and oil and gas projects that will move ahead “just because they have to” –not because there is real money for it. The money is the real question in the coming years, as most, if not all, countries are running huge deficits. But the consumer is in an even worse situation, as governments and countries can further increase their debt.

Andy Tite: For 2025, we see a continuation of what we have seen in 2024, but with the genuine hope of some increased stability. This year has been a year of laying down the foundations for the future: there has been no lack of business, but there is seemingly a build-up of matured, preFEED/FEED completed projects and opportunities that have yet to realize positive FID. It is very much hoped that 2025 will be the year where, with the aforementioned increased stability, positive investments will follow, and we will start to transition into a period

of increased project execution.

Ulrich Ulrichs: We look positively into the future and expect a healthy year in 2025. The same applies for the years beyond.

Ruediger Fromm, head of logistics - transmission high voltage grids, Siemens Energy

Danny Levenswaard, director of breakbulk, Port of Rotterdam Authority

Ruedi Reisdorf, owner, Fracht Group

Andy Tite, vice president, global business development & commercial director, DHL Industrial Projects

Ulrich Ulrichs, chief executive officer, BBC Chartering

What sectors or specific new projects in your region do you think will be significant for breakbulk and project cargo in the coming year?

Ruediger Fromm: Projects in power transmission and distribution are expected to dominate the landscape, driven by the urgent need to modernize aging infrastructure and integrate renewable energy sources. These initiatives will play a crucial role in addressing the rising energy demands and ensuring grid reliability.

Danny Levenswaard: We expect offshore wind to generate project cargo such as turbines, monopiles, blades, tower sections and subsea cables. In addition, we expect investments in plants that need to upgrade their facilities as part of energy transition, while barge operators need to invest in their fleet to upgrade to the newest standards. This will result in an increase in cascos (flatbottomed, square-ended barges from the Philippines) being transported to Rotterdam. Finally, new large-scale facilities need to be developed in the port area, including electrolyzers and hydrogen plants. All of which demands project cargo.

Ruedi Reisdorf: The wind business, mainly offshore, and the oil and gas business will be huge. New energy projects, like hydrogen, will come as countries have to satisfy their energy needs and move away from coal and, to a lesser extent, from gas.

Andy Tite: We have a varied mix of sectors and a robust and diverse client base that provides the ability to pivot between sectors as and when needed. We see the future technologies sector as a clear area of growth and investment and have been quick to build on the decades of experience in this sector within the DHL Group. We will also look to strengthen our focus on the engineering and manufacturing client base, with a new global sector head joining us at the start of 2025, based in Northern Germany.

Ulrich Ulrichs: First and foremost, we see the energy sector remaining strong, both in the renewables and oil and gas sectors. We also expect the mining sector as well as metals to be powerful and robust.

Do you think the existing infrastructure (ports, terminals, vessels) in Europe is prepared to handle the demand for breakbulk and project cargo? What improvements or resources are needed, if any?

Ruediger Fromm: The existing infrastructure in Europe, particularly ports, terminals, and vessels, appears to be well-prepared to handle the increasing demand for breakbulk and project cargo. However, the deteriorating state of roads, bridges and railways presents a significant challenge. These critical elements of the supply chain need urgent upgrades to ensure the seamless execution of projects. Without these improvements, the efficiency and reliability of cargo transport could be severely compromised.

Danny Levenswaard: Rotterdam is known for its large-scale infrastructure in terms of waterways, quaysides and project areas, and we are currently analyzing whether we should invest in an additional area to accommodate the offshore wind market. There is increased demand for more, and larger, ships, and as a port authority we make sure that these vessels can enter the port safely. Furthermore, we invest in our existing breakbulk infrastructure, such as at Waal/Eemhaven, our oldest port area, where quaysides have been renovated. We have completed a multi-year program of re-allocating breakbulk terminal space to existing terminal operators to further increase the breakbulk portfolio.

Ruedi Reisdorf: Globally, the problem will be whether the inland waterways have enough water. This year, the situation is extremely bad in Brazil and we have also seen the Panama

Canal and many rivers with low water. The terminals in Europe or elsewhere are not the problem, there is enough storage for wind projects, the only question is whether the storage is in the right place. But the roads, railways and, even more so, the bridges are a huge problem, since maintenance has been very bad over the years. It’s getting more and more difficult to get permits in Europe.

Andy Tite: The infrastructure in Europe is mature and, for the most part, well-known and relatively accessible. We do, however, also find infrastructure in need of either maintenance or increased engineering review, prior to its use for heavy and out-of-gauge operations – this is applicable to both public highways and port facilities. We see increasing desire for “the project” to pay for engineering studies or even infrastructure upgrades before such facilities are cleared for use. There appears to be an increased onus on those transporting the goods to prove to those owning the infrastructure (be it private or government-owned) that it is suitable for the intended operations. This is a trend that has increased in the last 5-10 years and it is getting worse, being applied on a case-by-case basis and irrelevant of recent precedents set by other operations. This is a real risk to our operations, with either delays or cost-overruns as a result, often at a late stage in planning or operations and despite the earliest possible engagement from ourselves and our subcontractors. We would encourage our clients to award contracts as soon as possible to help in this process. Infrastructure owners will often not engage in detail unless they are speaking to an awarded party – for road permits this is often a pre-requisite.

Ulrich Ulrichs: A clear “yes,” from our point of view. There are many sophisticated ports in most European countries. Some still might require some upgrades in terms of port equipment, but otherwise they can

cope with the demand. Yet, strikes and, increasingly, a shortage of skilled workers remain potential risks.

What trends are you seeing in freight rates, and do you anticipate these changing? What factors influenced your answer?

Ruediger Fromm: I am expecting freight rates to remain stable at a higher level. This stability is primarily due to the anticipated demand slightly outpacing supply, which will sustain the elevated rate environment. The factors contributing to this scenario include the ongoing projects in power transmission and distribution and the necessary infrastructure upgrades.

Danny Levenswaard: This is difficult to predict because freight rates have fluctuated massively in the past few years. This goes hand-in-hand with container prices, which are in turn heavily influenced by external factors such as supply chain disruptions including the Suez Canal, geopolitical tensions and the EU Emissions Trading System (ETS) for shipping.

Ruedi Reisdorf: We see freight rates going down again. They are already going down presently and once the Suez Canal will open again, the fall will be faster. This especially applies to the breakbulk/ heavy-lift vessels that can move immediately through the Suez Canal, since they have “no schedule to follow.” Of course, as we have seen in the past years, anything unforeseen can happen and all predictions are wrong!

Andy Tite: It would be too early to see any trends in freight rates. We have yet to see a sustained period of global stability since 2020 and, as such, we cannot predict trends – we just hope for consistency. Until this is achieved, we will all need to remain agile, search for the best possible technical and operational solutions and engage with the supply chain as soon as we are able to. Securing early commitment and therefore a

level of predictability in cargo flows, asset utilization and revenue will only aid in the stabilization process.

Ulrich Ulrichs: There is no general statement that would be valid for all regions and trade lanes. In Asia, rates will go up further due to high demand on the export side, while increases in other parts of the world will be more moderate. Rate increases are mainly driven by higher costs, caused by two main developments. Firstly, carriers/owners have contracted urgently-needed newbuildings which will continue to be delivered in the coming months and years. Those vessels are more than 50% more expensive than vessels ordered pre-covid. Secondly, environmental costs and taxes will increase further, mainly affecting trades to, from and within Europe. The steadily-growing administrative burden of those rules and taxes additionally increases the overhead costs of vessel owners and operators, and these additional costs must be recovered from clients.

What are the biggest challenges for your sector in the year ahead, and how is your company preparing to navigate them?

Ruediger Fromm: One of the primary challenges in the upcoming year is handling the risks and uncertainties that come with the global market. This includes varying demand, geopolitical tensions and disruptions in the supply chain. We are taking a proactive approach by implementing strong risk management strategies to improve our adaptability and resilience.

Danny Levenswaard: Probably the biggest challenge for the port is the energy transition, reaching a 55% CO2 reduction in 2030 and 100% CO2 reduction in 2050. Others include accommodating the ever-increasing size and weight of offshore wind cargo and the scarcity of space within the port area. Making the right decisions for future growth is always a challenge!

Ruedi Reisdorf: The biggest challenges are the unknown events for which you cannot prepare. You need to have a structure that allows you to act extremely quickly and remain flexible to find solutions. Andy Tite: We do not consider anything already known to us as a significant challenge or threat. Saying that, with all of the influences and disruption in our industry over the past few years, those who remain and have faced the challenges headon are battle hardened and will be resilient for any future disruption. Growth and increased market share will also mean greater investment in our people. We have our Next Gen IP graduate scheme, with the first cohort about to start their second year, and we also have a robust program of general freight forwarding and project-specific certified training packages available for our teams.

Ulrich Ulrichs: The biggest challenges are the increasing number of trade restrictions and rules globally – whether due to wars, piracy, environmental rules, cargo or port restrictions. We are optimistic to be able to deal with those if we are to overcome the next challenge that we face in our sector, namely having highly qualified and motivated staff in the right locations, at all levels and in all departments. BBC Chartering has an extensive trainee program, through which we try to bring new talent into our organization all over the world, especially in the head office in Leer, Germany, but also in our offices in the U.S., Asia and South America.

Is the balance between global and regional supply chains changing, and, if so, in what ways?

Ruediger Fromm: In my opinion, the trend will be a more diversified approach in global and regional supply chains in order to become more resilient. Companies are increasingly recognizing the need

to spread their supply sources and distribution networks across multiple regions to mitigate risks associated with geopolitical tensions, natural disasters and other disruptions. This shift towards a more flexible and adaptive supply chain strategy will likely enhance the ability to respond swiftly to unforeseen challenges and maintain continuity in operations.

Danny Levenswaard: Yes, due to political tensions, we see that regional supply chains are gaining traction. We have to become less dependent on global supply chains, as we have seen that this could really impact Europe – think about oil and gas supply from Russia, steel/non-ferrous metal supply from Russia, medical supplies from China during covid and so on. One of the changes we see is a switch from Just in Time deliveries to an increase in demand for warehousing/ stockpiling, both in the port and our hinterland. In short, the economic chessboard is changing, and regional wellbeing is becoming more important.

Ruedi Reisdorf: There is a huge trend to nearshoring – but that means you first have to build capacity where the need is, where your customers are. This is what is presently happening. Everybody is building up new supply lines along the nearshoring needs, wherever possible. Of course, there are some restrictions. It’s not commercially viable to build a chemical plant in Europe with the costs around 30% higher than in the U.S. or China. So that’s a problem for nearshoring, but the trend is that the world is moving apart, politically.

Andy Tite: Yes and no. There are still traditional global power houses in terms of exporters and importers, but there is also a clear intent for certain industries or markets to increase their nearshoring capacities and spends. This will shift the dynamic to

Source: EICDatastream

a more regional basis. In contradiction to this, there are other industries where technological advances in manufacturing are allowing the production of equipment that may have traditionally been considered too complex for lower cost locations. This is no longer the case and is providing demand to move large components from one side of the globe to the other.

Ulrich Ulrichs: Change in the balance

between global and regional supply chains is what we nowadays must regard as normal. There are so many contributory factors, including wars and conflicts, political unrest, cost, quality, protectionism, tax incentives and technological advance. It is hard to predict what’s going to change next, when, and how. The constant need for players to adapt to such changes is the “new normal.”

Figure 1: Top Hydrogen Markets by FID rate in Europe

Figure 2: Top Sectors by Number of Projects and Stages in Europe

Source: EICDatastream Green Hydrogen Offshore Wind Carbon Capture

CONNECTING PAKISTAN AND BEYOND... PAKISTAN – UAE – AFGHANISTAN – UZBEKISTAN & CIS

PROJECTS – BREAK BULK – TRANSIT TO AFGHANISTAN / UZBEKISTAN & CIS COUNTRIES – PHARMA / COLD CHAIN LOGISTICS – AID & DEVELOPMENT – GOVERMENT & DEFNECE LOGISTICS

MSL provides specialized services for Multimodal integrated Logistics services and solutions for Projects, Breakbulk OOG/ODC cargoes, Pharma/Cold Chain (GDP certified) Transit shipments via Pakistan & UAE to Afghanistan, Uzbekistan & CIS countries, Government & Defence Logistics, AOG, Global Freight Forwarding & Cross-trades. MSL has in-house customs brokerage / transportation fleet with special equipment to handle the services provided to/from Pakistan to UAE and global origin/destinations.

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GREEN SECTOR SPARKS GROWTH IN THE AMERICAS

Significant expansion ahead for oil and gas, wind and hydrogen projects

FOX Brasil transports a steam turbine for a biomass power plant.

Credit: FOX Brasil

EIC Analysis

The region’s well-established oil and gas sector is undergoing significant growth in the upstream market for floating production storage and offloading (FPSO) units across South America, which offers a more costeffective, faster, mobile and sustainable solution. This trend is particularly strong in Brazil, Guyana and Suriname, which are projected to lead this market with an accumulated CAPEX of US$143.7 billion by 2030. In the downstream sector, the U.S. and Brazil are highlights regarding sustainable aviation fuel (SAF) initiatives, supported by favorable regulatory frameworks such as the Inflation Reduction Act (IRA) of 2022,

Local Leaders Q&A

What is your business outlook for 2025?

Eddie Talbot: Roll Group continues to grow and expand its capabilities and geographic areas. We have been successful in growing our market footprint in 2024 across several regions including Africa, the Americas (including Mexico), the Middle East and Asia Pacific. And we see this continuing as we focus on projects and logistics solutions moving into 2025 and 2026. Globally, a new mega-gantry supporting our super-heavy-lift construction activities and, more recently, our new Roll Barge 1 have been engineered and deployed seamlessly to our project sites for

Eddie Talbot, managing director USA, Roll Group

which offers tax incentives for clean energy in the U.S., and the Brazilian National Sustainable Aviation Fuel Program (ProBioQAV), a milestone for the energy transition in the country’s civil aviation sector.

Rising demand for electrification is expected in the region in the coming years, especially in the transport and industry sectors. This increase will be supported by the region’s vast renewables potential, with wind energy playing a key role in markets like the U.S. and Brazil, where 29 wind projects set for start-up by 2030 have already received final investment decision (FID), including four offshore projects. However, in both markets, wind energy faces challenges such as rising

execution. As well as our large gantry crane, in 2024 we added 400-plus lines of hydraulic trailers to our global fleet. In 2025, we are adding two more deck carriers to our fleet and a second large gantry crane with lifting capacity of 4,000 tons, and we have further plans to add more ships and barges as well as cranes to cater for the increasing demand from our clients. This success provides us with a solid platform heading into 2025. We have several integrated projects to deliver on the U.S. Gulf Coast in 2025 and beyond, and our U.S. business will grow further with the expansion into Mexico and Louisiana, where, for the latter, we are opening a new branch in the St. Gabriel area near Baton Rouge, which will be operational by November 2025.

Murilo Caldana, project director, FOX Brasil

costs and supply chain bottlenecks, which could be worsened in the U.S. with the Republican victory likely to shift the focus towards O&G.

Clean hydrogen is also emerging as an important market in the region’s push for net-zero targets, led by the U.S. and Chile, which accumulate an estimated CAPEX of US$145 billion by 2030. Chile stands out with great production potential announced, aiming to produce the world’s cheapest green hydrogen. In the U.S., nine green hydrogen announced projects with start-ups until 2030 have received FID, representing 18% of the global FIDs for similar projects (Figure 1). Nevertheless, these markets are limited by costs, which hinders a scale-up of the supply chain.

Murilo Caldana: For 2025, we anticipate moderate growth driven by infrastructure projects and energy initiatives across the Americas. Globally, shifting trade dynamics may foster more strategic partnerships in key regions, although economic uncertainties could influence project timelines and cargo volumes. In Latin America, the business outlook for 2025 is promising, driven by investment in renewable energy, mining and infrastructure upgrades. Countries such as Brazil, Mexico and Chile are set to lead with significant projects that demand heavy-lift and project cargo capabilities, although economic uncertainties still pose challenges. The outcome of the U.S. election may also impact trade policies, with potential effects on

Lana Warren, head of Maersk Project Logistics

tariffs, investment and cooperation across the Americas.

What sectors or specific new projects do you think will be significant for breakbulk and project cargo in the coming year?

Lana Warren: Renewable energy including solar and onshore/offshore wind continue to drive strong solution designs for our global teams. The energy sector as a whole is significant, with the largest CAPEX growth coming across in new oil and gas opportunities. Eddie Talbot: Petrochemical, steel and oil and gas are all major areas for the region. We see more projects coming online and achieving FID including blue and green energy transition projects at various stages of development. Ports and infrastructure are also developing

areas, signaling continuous growth and/or improvement of ports across the U.S. that can service the renewables sector. We are already working on several large factory to foundation, land and sea combination projects that we will execute in 2025. These are significant projects that align with our strategy to take on and perform the turnkey land-sea scope of work by providing clients with a single point of contact.

Murilo Caldana: In the Americas, energy – particularly renewables – and infrastructure modernization will be major drivers for project cargo. There is strong potential for growth in offshore wind installations and transport, as well as in large-scale transport requirements for road, rail and port upgrades. In Latin America, offshore wind projects in Brazil, mining

expansions in Chile and Peru and transportation upgrades in Argentina and Colombia are set to drive demand for heavy-lift logistics.

Do you think the region’s existing infrastructure such as ports, terminals and vessels is prepared to handle the demand for breakbulk and project cargo? What improvements or resources are needed, if any?

Lana Warren: We can look back at COVID to best understand how eye opening the gaps in our existing infrastructure are. Maersk continues to invest in our APM Terminals to increase our handling capacity to include breakbulk and OOG cargo, as well as extending our footprint to support CFS solutions, warehouse and distribution expansion. This is always with a

Maersk prepares to transport a wind blade from the Port of Pecem in Brazil.

Credit: Maersk

continued commitment to greener solutions. Ports such as Houston are making the necessary investments to support the growing demand for project cargo capacity; however, some of our smaller private ports lack the same access to funding and depend on vessel commitments to build resource funding. The added demand may help to fund some of that necessary expansion.

Eddie Talbot: There are only a limited number of assets and resources available. It remains important for large capital projects to engineer solutions and select methodologies early to effectively manage project spend and have assurity of supply at time of execution.

Murilo Caldana: While some key ports and terminals are equipped to handle growing demand, capacity and efficiency gaps remain, particularly in accommodating specialized vessels. Upgrades in port equipment, dedicated heavy-lift berths and digital tracking systems could enhance overall readiness. Latin America’s infrastructure faces limitations in handling large-scale project cargo efficiently, particularly at ports and terminals. Currently, we are facing congestion in a few ports in Latin America – Brazil, Mexico and Central America – not to mention the low water issue at the Panama Canal, which is affecting the whole region. Improvements in port handling capacity, specialized equipment and digital tracking are needed to boost efficiency and reduce bottlenecks.

What trends are you seeing in freight rates, and do you anticipate these changing?

Lana Warren: Capacity and world events have the most impact on freight rates. As capacity tightens, owners need to invest in resources to extend capacity outside the operational planned fleet. When rates are increasing it is in direct correlation with market conditions to service and delivery.

“AS CAPACITY TIGHTENS, OWNERS NEED TO INVEST IN RESOURCES TO EXTEND CAPACITY OUTSIDE THE OPERATIONAL PLANNED FLEET. WHEN RATES ARE INCREASING IT IS IN DIRECT CORRELATION WITH MARKET CONDITIONS TO SERVICE AND DELIVERY.”

- LANA WARREN, MAERSK

Eddie Talbot: Freight rates from certain regions are on the rise. Market volatility driven by events such as the recent drought conditions in the Panama Canal and the geopolitical situation in the Red Sea, which is resulting in longer journey times and back-up of vessels, are all contributing factors to vessel shortages and increased rates. Our fleet continues to see a very high occupation, and we see a real demand to increase our capacity to meet project needs in the coming years. On a modular and wide-deck capacity front, there is for a variety of reasons still a lack of newbuilds coming into the market, and this is leading to assets being in demand globally. The barge market in the U.S. and on the Gulf Coast continues to be tight due to the demands of various megaprojects. Barges are being booked onto projects for the long term, therefore it remains important to select logistics providers early and engineer the cargo transport method with a clear definition of the mode of transport. As demand increases in both oil and gas and renewables, specifically offshore wind, we see the current volatility and high demand for international vessels continuing through 2025.

What are the biggest challenges for your sector in the year ahead, and how is your company preparing to navigate them?

Lana Warren: Disruption and volatility are the new normal in our industry, which emphasizes the need for supply chain resilience. We’re going all the way to help our customers navigate that volatility by offering them truly integrated logistics across the entire supply chain. To expand on our already-strong ocean shipping capabilities, we’ve built up a fellowship of trucks, planes, ships, trains, warehouses and logistics strategists so we can help our customers grow, mitigate risk and reduce their costs. We will also commence our new operational cooperation with Hapag-Lloyd in February 2025 with an ambition to deliver industry-leading schedule reliability above 90%.

Eddie Talbot: Vessel and barge availability is a challenge – customers and projects to plan and book early where possible. It is important for projects to seek and understand early visibility on the transportation strategy to enable engineering to progress and early planning to take place. In many places, permitting, securing fixed funding and providing assurance of

costs and methodology is critical for a successful project; by engineering the logistics strategy early we can select routes, methods and assets where required to mitigate against any external factors and therefore reduce project risks.

Murilo Caldana: In 2025, Latin America’s breakbulk sector will face several challenges including regulatory hurdles, infrastructure limitations and fluctuating project timelines. We are preparing by strengthening local partnerships, investing in adaptive logistics solutions and streamlining operations to handle varying demands effectively. Economic fluctuations, infrastructure limitations and regulatory hurdles will challenge Latin American project logistics, so we’re enhancing partnerships, leveraging flexible logistics solutions and investing in operational resilience to stay agile. While investment in infrastructure is generally strong, political transitions – especially in Argentina and Peru – could impact project timelines or funding. Companies operating in Latin America are wise to monitor these shifts closely, as government stability and economic policies – such as inflation control and currency stability – play a major role in project continuity.

Figure 1: Top Sectors by Highest FID Rate in Americas

Source: EICDatastream

Is the balance between global and regional supply chains changing, and if so, in what ways?

Lana Warren: The global supply chain we know today has been built over multiple decades. We don’t believe we’re seeing a revolution of how it works, but we are seeing adjustments in sourcing behavior from some customers, such as sourcing out of different parts of Southeast Asia rather than China or investing in cross-border options out of Mexico. Eddie Talbot: We see several supply chain trends coming through, but at varying speeds. For example, European Union regulations such as carbon border adjustment mechanisms on imports could have an impact on global supply and how projects are built to meet emissions guidelines. The need for carbon-reducing technology and carbon reporting will affect how supply chains are managed, but again, at different speeds. The criteria and balance between quality, schedule and price is still largely the driving factor when it comes to selection but gradually emissions will play more of a part in this as guidelines become available. Other factors such as cyber security and talent gaps are present and need to be addressed. As a Tier 1

company, we are readying ourselves for these developments and actively working to bridge any gaps to meet the needs of our customers and the sectors we serve.

Murilo Caldana: Yes, the balance is shifting toward more regionalized supply chains to mitigate global disruptions. This trend is likely to increase demand for reliable, regionally based project logistics, especially as more companies focus on securing supplies closer to end markets. Supply chains in Latin America are becoming more regionally focused, partly to reduce reliance on distant suppliers and ensure more resilient operations. This trend benefits breakbulk and project cargo, as companies increasingly prioritize local sourcing for their projects across the region. There shift aligns with nearshoring efforts in Mexico and increased local sourcing across the region, boosting demand for reliable project logistics. Policies supporting renewable energy, infrastructure investment and regional trade integration will likely drive project growth. U.S.-Latin American relations – shaped by trade agreements and economic stability – will continue to impact sectors like energy, mining and transportation across the region.

Credit: Roll Group

MOVING THE WORLD’S LARGEST OPTICAL TELESCOPE

Italian Forwarder Plays Vital Role Shipping the Biggest “Eye on the Sky”

By Malcolm Ramsay

ELT dome during construction.

Credit: DCS Liburnus

Studying the depths of space is a complex and laborious task, and one that is only the final step in a long chain of efforts. Unlike the handheld telescopes of antiquity, installation of modern telescopes requires an intricate web of logistics, and this was evident in a recent project undertaken by Italian freight forwarder DCS Liburnus and its partners, tasked with moving thousands of tons of cargo from Europe to Chile on behalf of the European Southern Observatory (ESO).

DCS Liburnus, a member of The Heavy Lift Group, was charged with transporting a massive dome structure and all internal supports for the ESO’s Extremely Large Telescope (ELT) project. Dubbed “the world’s biggest eye on the sky” this landmark infrastructure has been under development since 2005 and, once operational, will be the largest visible and infrared light telescope in the world, and one of mankind’s leading space observatories.

Luis Chavarría, astronomer and ESO representative in Chile, notes that ELT is “going to be almost ten times more powerful than James Webb,” the US$10 billion space telescope launched in 2021 to replace Hubble, adding: “We are going to start answering questions with this telescope which are fundamental to current astronomy.”

Comprising a main dome that stands 80 meters high with a diameter of 93 meters, the ELT is situated on Cerro Armazones, a 3,060-meter peak in Chile’s harsh Atacama Desert, chosen for its remote location, minimal light pollution and optimal conditions for observing the universe. It features a huge 39-meter-wide main mirror and also houses an array of sensitive instruments.

“This project was a significant challenge, but we pride ourselves on offering a seamless, door-todoor service,” Alessio Bianchi, CEO of DCS Liburnus tells Breakbulk “Overcoming the technical complexities and coordinating all the moving parts required precise planning and

execution and our role was to ensure every stage of the logistics process was handled with care and efficiency, bringing all partners together to get the job done successfully.”

Based in the Italian port city of Livorno on the west coast of Tuscany, DCS Liburnus emerged in 2014 as the Project Cargo Division of Del Corona & Scardigli, building on the legacy of Liburnus, founded in 1974. The company specializes in doorto-door shipments of oversized and overweight goods, managing turnkey projects for major Italian industrial providers worldwide.

Logistics Challenges

The logistics of transporting such a colossal structure required not only careful planning but also precision at every step. DCS Liburnus, with its extensive experience in handling oversized and delicate cargo, was entrusted with coordinating the movement of the ELT’s massive dome and internal supports.

“We were awarded the contract for the transport of the dome structure and all internal supports for the mirrors and the rotation movement by Cimolai,” Bianchi of DCS Liburnus comments.

Headquartered in Porcia, Italy, Cimolai is a specialist in the fabrication of structural steel and, for this project, had developed the main rotating metal structure, equipped with sliding openings, and was also responsible for civil works, mechanisms, installations and finishings.

“The design, manufacture, transport, assembly, and testing of the ELT was entrusted to the ACE consortium, led by Cimolai. Success in this major engineering and technical challenge required close cooperation between various technical and commercial departments, suppliers, and workshops,” a spokesperson for Cimolai said.

The first step in this project was to ensure that the necessary lifting equipment and infrastructure would be

ready for the outsized structures when they arrived in Chile. To ensure this, DCS Liburnus organized the shipment of a vessel load of cargo prior to moving the main structures. Bianchi explains this involved “carrying more than 5,000 freight tonnes of cranes, man lifters, forklifts and additional equipment for the job site, via the Port of Iquique.”

While this delivery was huge, it is just the latest phase in a decadeslong project, with development stretching back over 20 years. The origins of the ELT can be traced back to a conceptual study initiated by the ESO in 1998, examining the potential for a giant optical-infrared telescope, dubbed the OverWhelmingly Large telescope (OWL). Following a comprehensive evaluation process, the recommendation of the smaller, less complex ELT was put forward and a new study was launched in 2006, backed by over 100 astronomers.

After a final design review in 2010, construction officially commenced in 2014 when the road to the summit was completed, enabling easier access to the construction site. Since then, the ELT has progressed through a series of key phases. In 2016, the contract for the construction of the dome and telescope structure was awarded to the Ace Consortium, marking the beginning of large-scale civil and mechanical works. By 2023, the first main mirror segments had been polished, and the site was largely prepared for the dome structure and mirror components.

“Constructing this 39-meter mega telescope is only possible by building on ESO’s long history in pioneering astronomy and engineering, and in bringing countries together to work on ambitious projects. Far from an isolated project, the ELT will become an integral part of the large family of telescopes at ESO’s observatories in Chile,” a spokesperson for ESO said, adding that the telescope will bring “almost inconceivable capabilities in imaging and collecting data from our universe.”

Port of Loading

Once this vital equipment was safely in place, the next task was to collect and load the outsized pieces and transport them to the port of embarkation, Porto di Monfalcone in the north of the Adriatic Sea.

This required a short journey by road from Cimolai’s fabrication facilities in the industrial zone of Monfalcone to the nearby harbor, where vessels chartered from shipping line Intermarine were scheduled to collect the cargoes.

“One of the biggest challenges was lifting the packages without damaging them, we are talking about exceptional items, in terms of size and weight,” explains Gianluca Perino, operations manager at Midsea, the terminal operator at Monfalcone. “Only polyester slings were used for the lifting equipment in order to not damage the paint or scratch the surface. In some cases the hooking on was done through the use of a cherry picker because it was not possible to walk on it.”

The northernmost seaport in the Adriatic, Monfalcone offers robust facilities specifically designed for breakbulk handling, including various mobile cranes up to 110 tons with a twin lift capacity of 200 tons and a large fleet of front-end loaders, excavators, bulk grabs, hoppers and forklift trucks. It also operates onsite customs facilities to expedite clearance and compliance with ISPS Code.

“Since the frames were very uneven, in order to lift them perfectly straight, it was necessary to use chains with shorteners before the polyester sling. In this way, we were able to fit customized lifting for each item, the length of the lifting equipment was sized according to the shape and geometry of the lifting points,” Perino adds.

An important aspect was the incorporation of restraint accessories to mitigate the risk of falls from heights. Given the impracticality of using lifelines and the need for workers to traverse the holds at heights of up to four meters above the packages, the teams opted to attach devices with retractable wire ropes to the crane hook. These were then secured to the stevedores’ seat belts, ensuring their safety at all times.

Upon arrival, the main structures were set to load in three separate shipments, with more than two kilotonnes in total. As such, the project required significant planning and a long timeframe to ensure that all schedules would align.

“Given the high sensitivity of the cargo, every detail was meticulously studied and planned, with careful consideration for each individual item being loaded and transported,” Bianchi explains. “Stowage plans and cargo lashing in particular had been worked out in great depth to ensure that everything was loaded without a hitch.”

With this planning in place, the first components for the ELT were loaded

“This project was a significant challenge, but we pride ourselves on offering a seamless, doorto-door service,” Alessio Bianchi, CEO of DCS Liburnus. Credit: DCS Liburnus

in mid-2023, beginning the journey of more than 13,000 kilometers to the port of discharge, Antofagasta Terminal in northern Chile.

“With three shipments totaling 2,084 tonnes and more than 17,000 cubic meters, this logistics operation underscores the scale and complexity of erecting the largest telescope on land,” a spokesperson for Intermarine said. “The first shipment was successfully carried out by the MV DZ Yantai in the summer of 2023, and the second shipment was expertly handled by the MV Swift in early 2024. The third shipment was transported by the RMS Fraternity in summer 2024.”

Strategically located to serve Chile’s mining industry, Antofagasta multipurpose terminal is equipped with four mobile harbor cranes and features a berth length of 445 meters and a depth of 12.2 meters.

Formidable Terrain

After the cargo was discharged at the port, DCS Liburnus arranged for a dedicated storage area to temporarily house the components while waiting for transport approval. This storage facility allowed the team to organize the convoy movements efficiently, ensuring that each load was ready for transport as soon as the necessary permits were secured.

Given the size and complexity of the cargo, this step was crucial for minimizing delays and ensuring that the components could be transported in compliance with the strict regulations in place. From the storage area, each piece was carefully transferred to a specialized transport vehicle.

“The main challenge faced by the dockworkers at ATI terminal was the size and, most importantly, the extreme delicacy of each unloaded piece. For this reason, it was decided to carry out the unloading using a

high-tonnage Gottwald-GHMK 8410 mobile crane, in a direct dischargeto-truck mode to avoid overhandling these structures,” Patricio Marín, head of ship operations at ATI, said.

“Additionally, coordinating the departure of the loaded trucks from the port and their transit through the city posed another significant challenge, as most of the trucks were transporting oversized structures, which required escort services for safe movement.”

To ensure optimal views of the night sky, the ELT is situated deep within the Sierra Vicuña Mackenna range, approximately 130 kilometers southeast of Antofagasta. While the remote site offers unique visibility of the night sky, it also presents a formidable challenge for transportation. Following steep, rugged roads, the route passes through one of the world’s most inhospitable climates, with rough, deteriorating conditions along many stretches.

“The geographical location of the receiving site presented one of the toughest challenges,” said Bianchi. “Navigating steep roads through the Atacama Desert to reach the construction site, located 3,000 meters above sea level, required intricate planning and precision at every stage.”

DCS Liburnus partnered with local

freight specialist TIEX to complete the road transport from the port to the construction site. TIEX, headquartered in Santiago de Chile, was pivotal in ensuring the successful delivery of these oversized components, drawing on a fleet of over 400 pieces of equipment, 160 modular lines and a team of 280 dedicated workers.

Transporting this sensitive cargo required close coordination with police escorts, a spokesperson from TIEX explained, adding that there were “very limited time windows” to execute the transports, making precision critical at every stage.

The route from the ATI Port to the ELT construction site began along coastal highways before veering into the steep and rugged roads of the Sierra Vicuña Mackenna range. As a result, the convoy’s progress was slow and deliberate, often necessitating adjustments to road conditions along the way.

Teams had to reinforce certain sections of the road, clearing debris and stabilizing slopes to allow the transport vehicles to safely navigate the terrain. The harsh desert environment, known for its strong winds, intense heat, and lack of infrastructure, added further complexity to the journey.

Despite these obstacles, the convoy successfully delivered each oversized component to the ELT construction site, where they were carefully offloaded and prepared for assembly.

Following the successful delivery of the oversized structures, teams are now focused on the installation of the main mirror segments, an intricate and time-consuming process. Engineers and technicians will work closely together to ensure that each mirror segment aligns perfectly - even the slightest misalignment could impact the telescope’s performance - before beginning extensive testing procedures to validate the functionality and accuracy of the entire system.

Looking ahead, the ELT is set to achieve its first light in 2028, a milestone that signifies the beginning of its scientific operations and a first step in understanding fundamental questions about the universe - from the formation of galaxies to the existence of exoplanets and the nature of dark matter.

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

*Breakbulk Exhibitor

*BGSN Member

Loading cargo onto the MV Swift Credit: Intermarine

L-R: Dennis M. Mottola, project logistics consultant, Mottola Global Logistics LLC (moderator); Agustin Harriague, vice President, logistics, inventory and Warehousing, Mitsubishi Power; Guillermina del Pino, head of project logistics Americas, Siemens Energy Inc; Bill Keyes, director of Logistics, Fluor.

Credit: Hyve

PITCH LIKE A PRO: HOW TO WIN PROJECT CARGO BUSINESS

Start Small and Build Trust, Shippers Urge Logistics Providers

By Luke King

Winning project cargo business is a question of knowing your client, starting small and building trust to win ever-bigger moves, global shippers suggest.

“Try to convey your message with a personalized approach and understand where you can propose value to our operation,” said Agustin Harriague, vice president, logistics, inventory and warehousing at Mitsubishi Power. “Ditch the PowerPoint, do your homework and talk about how you can contribute to what we are looking to do in the market.”

Harriague was among the panelists at a Breakbulk Americas session, “How to Win Project Cargo Business: The Shipper’s Advice,” during which logistics service providers were urged to demonstrate a deep understanding of the client’s needs.

“Show you know where I’m going to have future projects,” said Bill Keyes, director of logistics, Fluor. “So if I’m doing a project in Chile and you’ve done route studies there, bring that to demonstrate you understand the area. Understand the challenges I’ve had in the past, how I solve them and how you’re prepared to solve them.

“Share that information with me. Don’t make me tell you this is what I expect – you should know my business as well as I do. For a global EPC, you’ll need an international presence, you’ll have a network of agents.”

“Trust” was stressed numerous times during the panel, and suppliers were advised to be realistic about what they might be asked to handle – at least in the early stages of a new business relationship.

“We’re going to start slowly,” said Guillermina del Pino, head of project logistics (Americas) at Siemens Energy Inc. “If you fail, I fail – right? There’s no other way. So I want to make sure that we are on the same page, and I tell this to every company that visits us: You’re not going to move a gas turbine on the first shipment.

“There’s a lot of risk involved, so

we start slow and small, and we get bigger. It will take some time, but our commercial relationships are for the long-term. I’m not developing a supplier for one project.”

No Buck Passing

Emphasizing the point, Harriague added: “Trust gets built way before you’ll ever get a purchase order. And there can be no finger pointing to the carrier. In logistics, we have to own it – you don’t have the luxury of saying: ‘My carrier screwed up, or a freight forwarder screwed up.’ Well, who hired them? You did. So the bottom line stops with you. There’s no passing the buck on this.”

Keyes said logistics providers must talk to their strengths. “Freight forwarders are sitting on a treasure trove of data, you already have metrics. A lot of people don’t take credit for what they’ve done in the past. They don’t demonstrate that treasure trove, how their performance has been in the past and how that will lead to success in the future.

“They don’t say: ‘These are the challenges and problems we had on the last project. These are the solutions we brought that made a difference.’”

New suppliers likely won’t be handling project cargo immediately, the panelists said.

Credit: Mitsubishi Power

Being able to demonstrate the strength of your entire team is another must for Harriague. “Who are the operations team standing behind you? In logistics, they are not even going to be behind, they are going to be on the front line working with us. What’s their reputation?

“Do we know these people? Do they have previous experience they can carry from other operations? Those are the type of factors we use to make the bridge from sales into execution.”

Risk mitigation is becoming increasingly important – and an area where Keyes says logistics service providers have a valuable contribution to make. “You know, you can’t predict the future, but you can say: ‘Hey, there is risk in this area.’ Somebody in this room knew six months ago that there could be a strike on the East Coast.

“Who took the time to plan that and say: ‘If this kicks off, there could be another strike because the contract’s only good until January so we’re suggesting, go to the West Coast or into the Great Lakes?’”

Mitigating Risks

In agreement was del Pino. “Since COVID we’ve started looking a lot at risk

“TRY TO CONVEY YOUR MESSAGE WITH A PERSONALIZED APPROACH AND UNDERSTAND WHERE YOU CAN PROPOSE VALUE TO OUR OPERATION.”

assessment and mitigation. Service providers are the ones shipping all the time with different customers, so tell me what you’re seeing.

“Is there construction on my route? What’s the season? The knowledge that you have from other customers means that you can put a risk in your proposal, but just as important - what would be your mitigation? What’s the solution?”

Asked how logistics suppliers can maintain an ongoing relationship with their customer, Keyes said: “What really helps once you’re in the game, is to do the routine routinely. Don’t make me worry about my 50 shipments on the water, just do them. Recognize that when there’s a big challenge, we embrace it together. And that’s going to help build your reputation.

“That response is going to keep you as a long-term partner to the EPC – how you solve problems, what you do and how you demonstrate savings. We appreciate hard dollars, but that can also mean savings in schedule.

“If that steel doesn’t get there by a certain time and it delays construction because of fabrication, it might be costing the project $1 million per day in construction costs. It’s important to show an understanding of the cost impact of your performance on construction and fabrication when we’re moving these materials.

“The reputation that you built on the routine, day-to-day stuff during the project is what’s going to keep you in the game and demonstrate you’re a successful partner.”

And when things wrong? “Pick up the phone,” says del Pino. “Just pick up the phone when there’s a problem. You might not have a solution immediately but, for me, a subjective metric that I take into account is whether I can quickly contact this person or company when things are not okay.

“If I have to go and execute terms and conditions, then we have a bigger problem, right? My expectation is that when you build a partnership, things are solved without me needing to go and execute a contract –because that’s when the partnership ends, and we don’t want that.

“The reality is we start from a win-win position. I want to make sure that you get something out of it, and I get something too.”

Involved in the project cargo industry since 2007, Luke King is managing editor of Breakbulk

*BGSN member

*Breakbulk Exhibitor

Agustin Harriague, vice president, logistics, inventory and warehousing at Mitsubishi Power.

Credit: Hyve

Cargo Community Readies for Project Boom

By Liesl Venter

Afrenzy has taken hold in the oncesleepy Namibian town of Walvis Bay on Africa’s southwest coast. Where shipments of fish, second-hand vehicles, copper and other routine raw minerals once dominated the local port, drilling pipes and oil exploration equipment now line the docks.

The country’s sudden success in the oil and gas sector is nothing short of extraordinary. For decades, intermittent offshore exploration yielded only a single discoverythe Kudu gas field, which holds contingent reserves of just 1.3 trillion cubic feet of gas.

Then, in January 2022, everything changed when Shell struck liquid gold with its Graff-1X discovery, which

introduced the world to the untapped potential of the Orange Basin. Drilling at water depths of around 2,000 meters, Shell’s discovery of light oil turned global attention towards Namibia.

The discovery marked the beginning of a new era for the country. Just a month after Shell’s first find, TotalEnergies announced it had struck oil at the Venus-1X well, only for Shell to reveal another discovery at the La Rona-1 prospect in April. More discoveries were to follow for Shell at Jonker-1X and Lesedi-1X, solidifying Namibia’s offshore waters as a hotspot for exploration and investment.

While some expected momentum to slow down, the exact opposite has occurred. Earlier this year,

Portuguese energy group Galp unveiled oil finds at Mopane-1X and Mopane2X, with the field estimated to hold at least 10 billion barrels of oil.

Azule Energy, a joint venture between BP and Eni, has since joined the growing list of oil and gas players, having entered the market in May. In July, Chevron made headlines when it acquired a majority stake in an oil asset in the Walvis Basin region while also laying out plans to drill its first well in the prolific Orange Basin.

The finds have been massive. Shell’s Graff-1X discovery is estimated to hold around 200 million barrels of oil, while TotalEnergies’ Venus-1X could hold up to as much as 2 billion barrels of oil. Shell’s Jonker-1X find is said to contain

an additional 300 million barrels. And the activity is not limited to offshore. ReconAfrica has started exploration onshore and is making progress in the drilling of the Naingopo well, which is targeting 181 million barrels of oil.

“Namibia has gone from struggling for years to make the Kudu gas fields viable to a situation where nearly every well drilled since 2022 has shown positive signs of hydrocarbons,” said African project expert Duncan Bonnett of analyst firm Africa House. “The actual oil reserves remain uncertain, but the opportunity is massive.

“The projects by Shell and TotalEnergies alone are estimated at investments of $12 billion to $13 billion respectively, with production

potentially reaching 450,000 barrels per day as soon as 2027. This might very well be an ambitious timeline to start output, but the reality is that Namibia is truly on a roll, rewriting its energy narrative with each discovery.”

Rising Cargo Volumes

Although Namibia’s oil and gas sector is still young – the country has yet to pump a single barrel of oil - it hardly seems to matter, since industries across the board have experienced a surge in activity.

According to William Douni, senior trade manager at Breadbox Shipping Lines, while interest in Namibia has been steadily growing, there has been a significant surge in vessel calls to the country this year. Conducting an interview with Breakbulk, he noted that two ships were en route to Walvis Bay and Lüderitz ports. “We’ve completed at least seven shipments to Namibia this year, and it’s not over yet. We’re calling at Namibia far more frequently than ever before,” he said.

This sentiment is echoed by Martin Louw of MACS Walvis Bay and David Groves of MACS Houston, who both report increased activity. “There have been very positive developments in the country,” said Louw. “But the real excitement lies in what the next five to ten years hold when we will truly start seeing significant volumes moving to and from Namibia.”

According to Andrew Kanime, chief executive officer of Namport, there has been an uptick in breakbulk volumes, primarily driven by earlystage projects. “Namport processed around 5.6 million metric tons of breakbulk cargo last year. Our facilities have state-of-the-art infrastructure, including mobile cranes, reach stackers and designated storage areas,” he said, indicating the country could handle the current volumes.

“The Port of Walvis Bay features a specialized terminal for project cargo and breakbulk operations, with a draft of 12.8 meters and it has

ample yard space to accommodate the volumes at present.”

According to Bonnett, the outlook for Namibia is promising. “It is not just oil and gas that holds potential. Mining has always been a Namibian stronghold and it has recently experienced a significant uptick. Namibia is one of the world’s largest uranium producers and while the sector has slowed down, there has been renewed investment in upgrading and refurbishing the uranium mines.

“Additionally, there is a lot of interest in new mining opportunities due to the demand for energy minerals such as copper, lithium and graphite. While the mines in Namibia may be smaller than those in the Democratic Republic of the Congo, they are still substantial.”

Bonnett also highlighted how the recent oil discoveries have brought gas into the spotlight. “The associated gas finds with the oil exploration finds could be the game-changer for the Kudu gas project, which has been in the pipeline for years, finally making it a large enough resource to justify its development.”

Renewable energy was another reason for the project sector to watch Namibia, he said. “The country is rapidly advancing with the Hyphen Hydrogen project, which has an investment volume of around $10 billion and is expected to produce 350,000 tons of green hydrogen annually. There are talks of producing and shipping approximately two million tons of ammonia annually by the end of this decade. There has also been an increase in wind and solar farms across the country.”

Limited Infrastructure

Kapil Grover, head of industrial projects for DHL Global Forwarding Middle East & Africa, emphasized the need to modernize and expand port infrastructure in Namibia to handle breakbulk and project cargo. “The limited infrastructure and capacity at the ports hinder the efficient

Cargo operations at Walvis Bay. Credit: Namport

handling of large cargo, creating bottlenecks,” he told Breakbulk

This could significantly complicate logistics operations when the oil and gas projects take off particularly considering the size of some of the projects planned.

While Namibia is considered a relatively easy country to do business in, particularly within the African context, it still has complex regulatory frameworks and bureaucratic processes that often cause delays and increase costs. One such challenge is around visas, said Kevin Melnick, managing director of Pentagon Freight Southern Africa.

“Anyone who has visited the country more than three times a year cannot get a visa renewed. This can be a significant hurdle to overcome,” he reported. Grover added that local skills and the capabilities of local suppliers would also have to be improved to meet demand.

Melnick agreed that Namibian infrastructure needed attention. “The

roads are taking strain considering the lack of rail availability. Currently equipment is sufficient to handle breakbulk and out-of-gauge cargo, but this will become a challenge as volumes increase. Warehousing and yard space outside of the ports must also be addressed.”

Most important, said Melnick, was investment and upgrades at the Port of Lüderitz. Louw reiterated this, saying a current limitation was that large projects could only be delivered into Walvis Bay, meaning goods must be trucked to Lüderitz, as rail solutions are often unreliable. “The Port of Lüderitz is limited to vessels with a length of less than 180 meters and an 8-meter draft,” Louws said. “There are plans to extend the current berth by an additional 500 meters, with completion targeted for 2026.”

Kanime acknowledged the infrastructure challenges and said Namport was actively working to address them. “We are implementing various initiatives to enhance our

capacity, including the expansion of storage facilities and investment in new handling equipment. We are also upgrading our terminals to better accommodate larger vessels and more complex cargo types.

“Improving our workforce training programs remains a priority to ensure our staff are well-prepared to handle the anticipated rise in breakbulk and project cargo.”

Establishing Footholds

Logistics companies are either entering or expanding their presence in Namibia as they position themselves to capitalize on the anticipated boom. With all the growth on the horizon, most firms are making strategic moves to establish a firm foothold ahead of the surge in activity, said Gerald Bryan Povey, director for Africa at Blue Water Shipping “We’ve done our homework and are confident about our expansion into the country. While it is all still in the exploration stage, the outlook is very positive. Projects have a long way to go, but we have no doubt that Namibia will explode,” he said.

According to Kirsten Beeker, the company’s general manager in Namibia, the demand for logistics service providers with oil and gas expertise has tripled in recent months. “We’re seeing a significant increase in charter vessels transporting oil and gas equipment. More so, there are no signs of activity slowing down - only intensifying.”

Povey’s outlook for Namibia is similar to the trajectory experienced in Guyana, another oil and gas hotspot. “We have high hopes for Namibia, especially given its potential to move swiftly from exploration to production. Much more development is on the horizon here and Namibia has all the elements for success.”

Liesl Venter is a transportation journalist based in South Africa.

* BGSN Member

*Breakbulk Exhibitor

Kapil Grover, DHL Global Forwarding Gerald Bryan Povey, Blue Water Shipping

Breadbox Shipping Lines’ Jorix calling the Port of Walvis Bay. Credit: Breadbox Shipping Lines

MIDDLE CORRIDOR: THE TRADE ROUTE GAINING TRACTION

Asia-Europe Initiative Described as “Lifeline for Logistics”

In August 2024, the dredging group Jan De Nul announced the construction of a new deep sea port in Anaklia, Georgia, as well as the expansion of the ports of Kuryk, Kazakhstan and Mersin in Türkiye

Together, said Jan De Nul, these projects would provide a significant boost to the Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR).

“The maritime trade route through the Caspian and Black Seas is considered a reliable alternative to the northern route through Russia, or the southern route via the Suez Canal. However, the existing sea ports currently act as bottlenecks for cargo traversing the route,” said the company, adding that the three port projects “will effectively address the challenges.”

Stefan Muntoiu, business

development manager at Jan De Nul Group, said: “These projects will have a big economic impact on the region. The Turkish, Georgia and Kazakhstan governments made firm decisions. We are proud to take part in the development of this important trade route.”

The Middle Corridor isn’t a new concept, but it is attracting more attention, due in no small part to the impact of geopolitical events. The route runs via Kazakhstan, the Caspian Sea, Azerbaijan and Georgia; connections into Europe are overland through Türkiye to Mersin on the Mediterranean or Istanbul, for Southern Europe, or across the Black Sea to Constanta (Romania) and overland to Northern Europe. Another option, less attractive now, is via Ukraine’s Odessa Port then overland to Poland.

By Felicity Landon

The Middle Corridor is said to be the shortest route between Western China and Europe and there has been investment in road and rail infrastructure. Nevertheless, there are drawbacks, not least in the huge distances overland, bottlenecks and delays at borders, and challenges around the falling level of the Caspian Sea.

Project logistics and transport management services provider Globalink Logistics has its CIS base in Almaty, Kazakhstan, with more than 1,500 staff in the region. CEO Siddique Khan says: “The Middle Corridor is vital for our operations and the economic development of the region.

“As Central Asia is landlocked and surrounded by countries with limited access, such as Iran and Russia, the Middle Corridor is a lifeline for

Globalink Logistics has been involved in Tajikistan’s Nurek Hydro Power Project for more than 10 years.

Credit: Globalink Logistics

trade and logistics. Its development is essential for making transport more cost effective and improving the ease of doing business.

Great Advancements Expected

“For over 25 years, Globalink has been navigating this corridor, witnessing significant progress. However, there is still much more to be achieved, and we expect even greater advancements in the next five years, which will benefit the entire logistics industry.”

The Middle Corridor has seen exponential growth, particularly with the shift in global supply chains due to the Russia-Ukraine conflict, says Khan. “However, key challenges remain – insufficient infrastructure development along certain stretches of the route, delays in harmonizing customs procedures across countries, limited capacity to handle increasing cargo volumes, port facilities requiring upgrades to accommodate oversized and heavyweight cargo, and navigating fluctuating regional, geopolitical and regulatory environments, which can impact transit times and costs.”

In 2017, the company signed an MoU to cooperate in developing Anaklia’s logistics terminals, but the project faced challenges. “Despite the delays in launching the project, we anticipate its revival will provide much-needed capacity for handling oversized cargo. Globalink has been

involved in Anaklia’s planning and is ready to support its development.

“At Kuryk, we have been utilizing the terminals for various projects since 2014. While current infrastructure meets the basic needs, there is a lot of potential for growth through public-private partnerships to improve facilities. These upgrades will be critical to handling the growing volume of project and general cargo in the coming years,” says Khan.

Port expansion is crucial for enhancing the Middle Corridor, says Azer Aliyev, managing director –Caucasus and Central Asia, at Trans Global Projects. Kuryk is being expanded to accommodate the increasing demand for oversized cargo, particularly due to the surge in regional trade through the Caspian Sea, he says.

As for Anaklia port, after years of uncertainty and shifts within the project’s consortium, the Georgian government ultimately canceled the original concession contract, relaunching it more recently.

“Despite widespread speculation, no construction has yet begun, either in Kazakhstan or Georgia,” says Aliyev.

Gianti Logistics, based in Tbilisi, Georgia, was involved in the earlier phase of Anaklia port development, delivering and mobilizing dredging and other equipment for Van Oord, which was awarded a contract for dredging and reclamation works in 2018. Shortly after dredging operations commenced, the project came to a halt.

George Makhatadze, Gianti’s general manager, says: “Anaklia is going to be a big port for Georgia. It will have 16 meters depth, allowing bigger vessels, and that will help us a lot.”

Port Alternative

He welcomes the prospect of an alternative port to Poti, which he describes as a “headache” and expensive for moving project cargo. A lack of storage space means that project cargo must be moved to terminals outside the port, which creates high additional costs.

“You get a very small window to move project cargo out of the port; you have to source local trucks, for which the hiring costs are really high, and sometimes weather conditions or vessel delays then keep the trucks waiting.”

Victoria Lunga, sales manager at S&D Logistics, a Tbilisi-based freight forwarder, says that only after Georgia’s October 2024 elections will the situation regarding Anaklia port become clearer. “When the share participation and the fate of the construction of the Anaklia port are determined, only then will transport companies/forwarders, including S&D Logistics, be able to be involved in the development of the new port and infrastructure.”

This is about the development not only of the port, but also the entire economy of the state and its political weight and attractiveness for the Middle Corridor, she says.

Aliyev says that while Anaklia and Kuryk development will enhance port capacity for oversize and overweight cargo, the main challenges relate to the road and rail infrastructure along the Middle Corridor. “Although we are seeing significant improvements in this area, there is still considerable work to be done. That said, these developments are promising steps towards better facilitating such cargo, and we are optimistic about the future.

Siddique Khan, Globalink Logistics

Azer Aliyev, Trans Global Projects

Central Asia Middle Corridor and alternative routes

“The Middle Corridor has seen substantial growth due to geopolitical shifts, particularly affecting trade routes between China and Europe, and is supported by significant investments, including a $10 billion commitment from the EU for infrastructure improvements.”

TGP is focusing on several wind, solar, mining and chemical projects in the region. “Given the expected volume of supplies from East Asia, we are considering using the Middle Corridor for these projects. The transit time for container transportation via the Middle Corridor is nearly half that of traditional sea freight.

“The closure of the Suez Canal underscores the strategic importance of the Middle Corridor. With ongoing developments along this route, transit times are expected to decrease further, offering both cost and efficiency advantages. TGP is well-positioned to capitalize on these improvements, as we have offices in the region and are already engaged in major projects, making the Middle Corridor a preferred alternative for logistics solutions.”

Going the Distance

The main challenge is the long distances, he says, especially for overdimensional and heavy project cargo. “The typical and preferred movement should be via ocean and river systems. Our regional market knowledge and project track record helps us to know exactly where the bottlenecks are and what type of cargo can be moved.

“We are constantly arranging new, and updating existing, route surveys in the region to understand the limits of the existing and newly-built infrastructure.”

Makhatadze says rail connections for the Middle Corridor are good in the CIS countries: “It’s just that it’s a really long way. There is a shortage of locomotives and rail wagons.

Azerbaijan has started to buy more; Geroge was buying from Russia but now cannot [due to sanctions].

“We are promoting the Middle Corridor more and more. As people try to avoid Russia, they come to us with new problems and are taking up whatever the Middle Corridor can do. We have done a lot of shipments to Central Asia recently, especially to

Source: Bakuresearchinstitute.org

Uzbekistan, which has huge potential, including turbines, power generators and transformers. More and more shippers are finding they can deliver via Georgia to avoid the sanctions.”

Road upgrades in the region have helped, enabling Gianti to move much heavier and larger loads, with an increasing focus on project cargo, says Makhatadze.

For example, the Georgia and Azerbaijan sections of the strategically important E60 road are nearing completion and this will increase the capability of the route. Georgia’s topography adds challenges – the 70-kilometer section of the E60 required the construction of around 100 tunnels.

There are also border headaches, says Makhatadze. “Sometimes we lose three or four days at the border [between Georgia and Azerbaijan], because of the queues. Every day we see 1,000 trucks waiting in the queue for one border crossing and up to 400 at the other. Many of these trucks previously went from Kazakhstan to Russia, then Georgia; now it’s Kazakhstan, ferry, Azerbaijan, Georgia.”

There is also a shortage of ferries across the Caspian Sea, he adds: “We are often waiting two weeks. If there is stormy weather, the wait gets even worse.”

Lunga says the Middle Corridor will bring new opportunities for S&D, which will expand its fleet, team and branches. “We will be able to work not only locally, but also be able to control our services locally in other countries at the intersection of the Middle Corridor,” she says. “The prospects for the Middle Corridor are clearly visible. Due to emerging geopolitical events in the world, it is becoming an alternative, sometimes even the only route for transporting goods and cargo.”

Infrastructure Enhancements

Expansion at Anaklia and Kuryk will improve the ability to handle oversized cargo, says Lunga: “However, it is important to approach this issue more broadly. The infrastructure of the entire mechanism must work at every stage, from the berthing of the vessel to the recipient’s door.

“Along with the construction of

ports, it is important to address the bottlenecks at the borders, systematize electronic data exchange databases and introduce separate checkpoints for the registration and passage of oversized cargo. All these actions should take place in parallel or even in advance before the start of port construction. Ultimately, at the moment of cutting the red ribbon, all systems must be open.”

As routes such as through Russia and via Suez are restricted, “this is the real occasion when we can grab an opportunity and handle cargo flow – general and OOG,” Lunga adds. The Middle Corridor offers an alternative route and an alternative option to sea freight. “Road freight is becoming almost the same for costs, just a little more expensive, but the transit time is impressively smaller.”

S&D customers are expressing interest: “They need short transit time and clear tracking. They can accept a higher rate, but only in the case of perfect service. We try to provide all of that but without sustainable partners and governmental support, it won’t work. I mean, for example, the OOG permits should be at normal, not inflated, prices.

“The Georgian permit is the most expensive – US$2,600 – when Azerbaijan, Turkish and Armenian permits are around $500-1,000. Such a cost doesn’t allow us to get as many projects as we want to.”

If the corridor is to work, solutions must be sustainable, she emphasizes. “Forwarders should provide as many options as they can, and service that is really all in, without any issues. Sure, major forwarders will be able to attract small companies, but this must be controlled.

“When partnership is built on responsibility, understanding the ultimate goal and compliance with agreements, then this alternative has every chance of success – and this is the sustainable solution.”

Editor’s note: At the time of publication, Georgia’s election results were in dispute, according to a Reuters report.

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

*Breakbulk Exhibitor

Globalink Logistics provided project logistics for the 1500 MW Combined Cycle Gas Turbine (CCGT) power project in Uzbekistan. Credit: Globalink Logistics

COLIN D’ABREO: SHIPPING IN HIS BLOOD

Rhenus Executive on His 30-Year Career and the Importance of Staying the Course

By Felicity Landon

“There is something about the logistics industry that draws you in – and keeps you there,” says Colin D’Abreo, co-vice president director of Rhenus Project Logistics Global.

A part-time job in an import/ export company was D’Abreo’s first introduction to the logistics industry. He was studying business management in Los Angeles at the time – though shipping was already part of his DNA.

His father, an engineer by trade, had served in the Royal Indian Navy, including during the Second World War. “Among my siblings I have three brothers, and all are connected with the shipping industry – the first a captain, the second a radio officer (they are both now retired) and the third an engineer. Then there’s me involved in project freight forwarding,” says D’Abreo.

Born and raised in Mumbai, he graduated in mathematics, statistics

and economics before leaving India at the age of 21 to study business management and receive his MBA from the University of California in Los Angeles. In 1995, he moved to New York to take up a post as an import/export coordinator with KOG Transport – which was acquired 20 years later by Rhenus Logistics.

D’Abreo rose through the ranks, as supervisor, manager, assistant vice president, executive vice president and then president of KOG – later becoming president of Rhenus Projects Logistics in the U.S.

In May this year, Rhenus Group appointed Colin D’Abreo and Moritz Becker as co-vice president directors of its Project Logistics Global brand. D’Abreo is charged with overseeing operations in the Americas, India, China and the Middle East and Africa (MEA).

“I will have been in the industry for 30 years in April 2025. I have enjoyed the ride and continue to do so,” he

said. “For me, staying and growing with the same company has been a positive. I started at the lowest level but had opportunities and also very good mentors and advisers who guided me through. That resonates in my life now – I try to empower the younger generation to get to the next level.”

He recalls that once he became involved in logistics at the start of his career, he truly enjoyed it.

“There is something in the industry that just draws you to it,” he says.

Different Perspectives

That early excitement has never left him. “Every day on the job is different and exciting. No two projects are identical, and all have their different challenges and opportunities. Working alongside an incredible team of professionals globally certainly adds some spice to the workday.

“The way I like to manage challenges and discussions is never a top-down approach, but rather a collaborative

“MY ADVICE IS TO STAY THE COURSE. TAKE IN EVERYTHING, LEARN AS MUCH AS YOU CAN, BUT ALSO BE PROACTIVE, CURIOUS, INQUISITIVE, AND DON’T BE AFRAID TO ASK QUESTIONS.”

and open discussion. Being in the industry for 30 years certainly has given me a good grounding to conduct my job – but for me, it is exciting to engage with our colleagues who are just starting in the industry and also constantly learn from them.”

Young people bring in new ideas and new ways of thinking, he adds. “I think the younger generation are always thinking out of the box. For our generation, it’s easy to fall back on ‘yes I know, I’ve done it, let’s do it this way,’ but when the younger generation engage in debate that really gives you a different perspective.”

He also takes pride in the fact that the Rhenus office in New York has staff from across the globe, including Ukraine, Brazil, Peru, Italy and Germany. “I think each person brings the strengths of their own culture. You learn a lot from people and their cultures.”

From technology and digitalization to sustainability and decarbonization,

the industry has advanced significantly since D’Abreo started his career.

He says: “In my 30 years of logistics, I have seen changes in leaps and bounds, and all in a good way. I entered the industry in the dying stages of the telex machine. Then it was the fax, before the computer industry and emails took over. Now, with sophisticated tracking systems, information about cargo and other information is available in real time.”

He recalls laboriously typing out Bills of Lading: “Now it’s a matter of seconds copying over a BoL on the computer.”

Improved technology which constantly changes makes a big impact in the industry, he says. “For example, our Rhenus Engineering team (under Rhenus Projects) when conducting load/offload surveys at terminals can provide instant reports in real-time via the mobile phone of a client who may be sitting hundreds or thousands of miles away.”

Focus on Sustainability

It is also important that more and more companies in the logistics sector have an eye on sustainability and green energy, he says. “We are strong advocates of green energy, and we see the potential for significant growth in this sector with the right infrastructure investment.”

Rhenus is committed to sustainability through its RheGreen program, which identifies and suggests which aircraft is the most efficient in terms of CO2 emissions for cargo movements. “We play a role in measuring CO2 emissions for our customers, especially in container shipping and trucking. We are also exploring alternative fuels and electric trucks as sustainability plays an integral part in the process.”

Going green is never one-sided, he says. “It is a combination, a partnership. Price is very important for customers these days but there are more and more projects and tenders

coming out from companies which give extra points for sustainability and sustainability programs.

“I believe that in time to come even though price will continue to be one of the dominating factors, increasing importance will be placed on green programs. Companies will leverage their advantages in spending a little more money but having a green program.”

This has been an interesting and exciting year for Rhenus, says D’Abreo. “In Global Projects, with the new heads – Moritz and myself – we have a new vision and exciting journey ahead. Rhenus Logistics, with the acquisition of BLU Logistics in Latin America towards the end of last year, has seen a lot of growth as a company, and our leadership will look to strengthen us across the globe.”

Pivoting on a Dime

However, the unpredictable geopolitical situation poses tremendous challenges. “Having to pivot on a dime seems to be more the

norm than the exception,” he says.

“Take the Red Sea situation, Panama Canal issues, Ukraine/Russia war, among others, which certainly throw a wrench in your traditional logistics plans. One has to always keep thinking of different and innovative ways to minimize the overall impact.”

The scarcity of experienced professionals in project logistics adds pressure to daily operations, he adds. While the industry has not done well in attracting younger talent in recent years, he believes that is changing as universities are now pushing the logistics field and many companies are promoting traineeships. “At Rhenus we have a very robust training program across the world. We need to encourage young people into logistics.”

He is pleased that the industry has recognized the challenge - and is doing something about it. “It may be late, but it is never too late.”

His advice to young people coming into the industry today? “My advice is to stay the course. Take in everything, learn as much as you can, but also be

the change that should be – meaning be proactive, curious, inquisitive, and don’t be afraid to ask questions.

“Logistics may seem simple from the outside, but it’s a very complex industry where innovation is key. While it may be stressful at times, it is also fun and rewarding. Global logistics allows you to meet and interact with different people and cultures across the globe.”

Looking ahead, D’Abreo says projects will get even more challenging. “There will be more mega projects being built around the world, and we will have to find different ways to be able to meet these challenges. I believe the race for energy and alternative fuels is going to be a gamechanger in our industry.”

D’Abreo lives in downtown Manhattan with his wife and two daughters aged 13 and 16. Balancing two demanding careers with the needs of two teenage daughters poses interesting challenges when it comes to maintaining a balance.

“Work/home balance is always important but it’s also OK for one to take precedence over the other from time to time, as long as the other is not ignored. With my frequent travels and my wife’s long work hours, we don’t believe that our kids have lost out on anything, as we make sure that at least one of us is always there for our children.”

Family vacations are important, including a yearly skiing trip to Canada, and in summer the family enjoys cycling around the city. Cooking is an activity that de-stresses him – he likes listening to music while working in the kitchen.

He gets to the gym three times a week and walks about ten miles every weekend. “I am a big enthusiast for health and exercises – to help the mind and body.”

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

*Breakbulk Exhibitor

Colin with his wife and two daughters.

Credit: Colin D’Abreo

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FUELING FRESH INVESTMENT IN AMERICA’S CLEAN ENERGY SPACE

US Energy Department Boasts US$400

By Simon West

Nuclear energy, green hydrogen, semiconductors, carbon capture and lithium batteries are just some of the sectors that are benefiting from the U.S. Department of Energy’s recharged Loan Programs Office (LPO).

Speaking at an event at Breakbulk Americas on future energy investments, Suresh Vasan, senior investment advisor at the LPO, said the program had appropriated funds totaling more than US$400 billion to expand its scope and finance clean energy projects.

“We’re looking at it from a very broad perspective – we support all energy that promotes low-carbon solutions,” Vasan told listeners during a discussion moderated by Captain Bill Schubert, president of International Trade & Transportation (IT&T).

Since its launch under the George Bush administration in 2005, the LPO’s direct loans and guarantees have resulted in more than US$50 billion in total project spend, according to the DoE. The LPO’s financial muscle has been significantly bolstered by the Biden administration’s Inflation Reduction Act and Bipartisan Infrastructure Law, enabling it to play a leading role in the nation’s energy transition.

Recent awards include a US$445 million loan to metals recycling firm Li-Cycle to help finance the construction of a lithium-ion battery processing facility in Rochester, New York, a project that will support the production of up to 180,000 electric

Billion War Chest to Finance Projects

vehicles (EVs) annually, and a US$1.44 billion loan guarantee for Montana Renewables that, if finalized, will help support the expansion of a green fuels facility in Great Falls, Montana.

To date, some 211 active applications have been formally submitted to the office totaling US$305.3 billion in requested financing, according to the LPO’s monthly application activity report for September.

“We’re doing a lot on the electrification side where you can combine batteries, you can combine solar, so that we can utilize some of this intermittency that’s being caused by wind and solar. It’s a better way to get all the megawatts used. And then we’re focused on third-generation geothermal, which is super exciting,” Vasan said.

The LPO has also been a “very important piece” of the relicensing and overhaul of nuclear power projects, Vasan said. The DoE’s Advanced Reactor Demonstration Program (ARDP), for example, launched in 2020 with an initial US$230 million in R&D awards, seeks to derisk advanced reactors through cost-shared partnerships with the private sector.

Nuclear Energy Poised for Expansion

Fellow panelist Jack Edlow, president of radioactive materials transport specialist Edlow International Company, said soaring demand for nuclear power – driven by electrification and

the global push to diversify energy sources – is fueling the construction of both small modular reactors (SMRs) with a generating capacity of 50 to 300 megawatts electric (MWe) and smaller micro reactors with an output of up to 10 MWe .

With demand for these units potentially reaching into the thousands in the next two to three decades, the U.S. must be ready to invest in nuclear technology to maintain its leadership in the sector, Edlow said. The competition with other nations is already tough.

“It’s not just the United States anymore, as it was in the beginning. Others are getting ahead of us at this point,” Edlow said. “Russia is building reactors all around the world – Egypt, Turkey, Bangladesh. The Chinese have an immense internal program. In just a few years they’ll have more reactors than we do in the United States. They just have a few designs that they’re focused on replicating. And they’re also looking to expand internationally.

“But we have a bit of an advantage in that we have these advanced reactors and many different types that are already proven and are now being re-proven for the U.S., and we need to get out there as a country. We need to plant the flag in various places to show U.S. technology is out there. But that’s going to take a lot of government and industry support.”

But, Schubert asked, at what point should the government step back and allow the private sector to take the lead in driving clean energy projects?

Edlow said large-scale projects including SMR plants often require “a little seed” to help kickstart development. “The ARDP has invested money in several different projects, and that will help get these things started. But once they’re proven, it’s time for organizations to start investing in these projects as well,” he said.

Fueling America’s Export Capacity

Nuclear power projects are also getting backing from the U.S. ExportImport Bank, the country’s official export credit agency. EXIM supports U.S. businesses by equipping them with the financial tools – mainly in the form of loans, guarantees and insurance – to export globally, often when private sector lenders are unable or unwilling to step in.

In October, EXIM approved a final commitment for a US$98 million loan to finance the development of a 462-MWe SMR project at the Doicești coal plant site in Romania that will deploy technology from U.S. nuclear developer NuScale.

“We have three or four people at the Bank who are really focused on nuclear,” said panelist Paula Swain, executive director of EXIM’s structured and project finance division. “There is a lot of excitement with SMRs and the future. It’s something the Bank is really focused on for international transactions.”

Swain also shared insight into Make More in America – an initiative designed to reboot America’s manufacturing and export capacity. Launched in 2022, the MMIA typically supports projects in areas such as semiconductors, biotech, green energy and energy storage.

“It’s become very successful. Right now we have 14 transactions in-house. The average transaction size is about US$50 million. The largest so far is US$800 million and the smallest is US$10 million, which is quite a range,” Swain said.

In February 2023, the Nuclear Regulatory Commission (NRC) certification of NuScale Power’s small modular nuclear reactor took effect, and it became the first certified SMR for use in the U.S. Credit: NuScale

“These transactions are for significant capital expenses – either a brand-new facility or a new production line. Capital expenses that need more long-term financing. But we’re not here to compete with the private sector. If the regional bank the company deals with is willing to take the transaction, we won’t interfere.

“But these transactions have little nuance that maybe the commercial banks are not comfortable with. Maybe the real estate is encumbered by a

long-term lease from a municipal entity and the commercial bank won’t take that on because they want to have a deal of trust, or a pledge of that real estate and the lease prohibits that.

“But as the U.S. government we’re comfortable with that political risk.”

Read more: US Nuclear Energy Poised for Massive Expansion

Colombia-based Simon West is senior reporter for Breakbulk.

L-R: Jack Edlow, Suresh Vasan, Paula Swain, Capt. Bill Schubert

CAN THE PANAMA CANAL MITIGATE ENDLESS DROUGHT?

Reservoir Project Planned, but Logisticians Brace for Future Disruption

By Joanna Marsh

The Panama Canal may be well over a hundred years old, but it’s still pulsing with activity as vessels ferrying energy, agricultural and containerized cargoes cross its locks daily.

To keep the canal humming, canal authorities are grappling over how to overcome water resource management concerns and other issues, particularly in light of last year’s drought - the most severe since the canal’s expansion in 2016. However they and other stakeholders are finding that the solutions are just as complex as the challenges.

According to the Panama Canal

Authority (ACP), the canal handled 179.7 million long tons of southbound volumes and 106 million long tons of northbound volumes in 2023. Of the southbound volumes, the largest share, 46%, came from petroleum and petroleum products. Of the northbound volumes, container cargo held the largest share, at 41%.

As demonstrated by these numbers, the canal handles plenty of traffic throughout the year, and it has a key role in facilitating world trade. Yet several factors beyond the canal’s control influence how much vessel traffic can actually pass through.

One major factor is the weather. Last year’s drought, which led to low water levels, seems to be part of a cyclical pattern, meaning that canal users should expect and prepare for another disruption down the road.

The drought “highlighted the significance of having a sizable fleet to maintain operational flexibility and schedule integrity in the face of unforeseen circumstances,” Felix Schoeller, director at AAL Shipping, told Breakbulk

“AAL is one of the few heavy-lift carriers with a fleet large enough to buffer these delays and continue to

offer regular reliable sailings, with our owned fleet of 29 vessels totaling 831,800 dwt. Our fleet management meant we could in part offset delays brought on by the longer voyages and maintain the timely delivery of cargoes for our customers.”

To accommodate the low water levels seen on the Panama Canal, AAL had to alter some routes and schedules, according to Schoeller. But AAL also frequently communicated with various stakeholders to help mitigate costs. Last year’s experience also enabled AAL to develop a blueprint that it can deploy for any future disruptions.

Longer Transit Times

Freight forwarder DHL also found itself adjusting operations during the drought, which caused transit times to lengthen from eight hours to two or three weeks, according to Yaneth Castaneda, head of industrial products for Central America and the Caribbean at DHL Global Forwarding Panama.

One of the modifications DHL made was collecting containers from the Atlantic or Pacific coast and then transporting them by land to “avoid disruptions as much as possible for our customers,” Castaneda said. If the cargo was bound for the Central American market, DHL conducted cross docking and it arranged road transport to Central American markets in Costa Rica, Nicaragua and Guatemala. Cargo was even shipped by air to some customers.

“We offered different types of solutions to our customers according to their needs, according to their sector, and also according to their budget,” said Castaneda. “We had to adapt our services.”

But in addition to the cyclical droughts, weather disruptions caused by climate change might also come into play. These disruptions, in the form of severe droughts or typhoons, have the potential to be more intense or frequent, thus threatening operations or overwhelming infrastructure.

Last year’s drought was “just one of the several ‘wake-up calls’ to

After passing through the Panama Canal, AAL Gibraltar discharges cargo for an LNG project in Beaumont, Texas.

Credit: AAL Shipping

Felix Schoeller, AAL Shipping

Yaneth Castaneda, DHL Global Forwarding

remind not only the operators but all stakeholders of the vulnerabilities of key global infrastructure in the face of climate change. We must continuously build resilience into our operations by preparing for potential disruptions. Our fleet strategy and operational expertise put us in good stead to weather these challenges,” Schoeller said.

Macroeconomics at both the regional and global level is another big factor affecting how much traffic goes through the Panama Canal. “You know, the canal didn’t stop operating” when it experienced low water levels during last year’s drought, said Andrew Thomas, associate professor of international business at the University of Akron in Ohio. Thomas published the book The Canal of Panama and Globalization: Growth and Challenges in the 21st Century in May 2022.

“The route was still very well used. It was just more expensive. One thing I think we’ve learned is that the Americans [who operated the canal in the 20th century before it was handed over to Panama in 1999] never really did much in terms of trying to manage it like a business. It was a government operation. But the Panamanians are running it for a profit,” Thomas said.

Problems Equal Profits

“So if you look at it from an operational perspective, from the point of view of the Panama Canal and its customer, which is the Panamanian people, it was a good year. They had fewer transits

because of the drought. They were able to charge a lot more money.”

While it might have been harder for some shippers, such as those in the breakbulk business, to get a slot during 2023, some still decided to use the canal because it was a more reliable and stable option, according to Thomas.

“In a global setting, you have the Suez Canal, which is its major competitor. But Suez has been facing a lot of challenges as well, and those are not quality issues as much as operational issues or geopolitical and security issues,” Thomas said.

“Panama last year could have been in a really bad place with some potential shippers looking at Suez as a way to move cargo around Europe. But the shippers didn’t. They bit the bullet. They paid the extra freight costs simply because Panama has a more secure, safe environment and therefore was more predictable than even Suez was.”

Regardless of companies’ business decisions over choosing the Panama Canal or the Suez Canal, lingering port congestion globally is still causing current canal users to modify operations, even though the canal’s water levels haven’t been an issue for this year.

“The problem now is that many ports around the world are congested,” Castaneda said. If ports in other parts of the world are experiencing delays in loading and unloading containers, that affects container traffic on the Panama Canal and also causes delays.

Given the popularity of the Panama

Canal as well as its contribution to the Panamanian economy, the ACP is keen to ensure the canal’s health and longevity. Last August, as the ACP commemorated the 110th anniversary of the Panama Canal, the agency also laid out plans to ensure the preservation of the canal.

Multipurpose Reservoir Proposed

Its plans include a focus on water resource management so that Panama can not only safeguard its water supply for area residents but also ensure that water levels are sufficient enough to handle growing ocean vessel traffic. As part of this plan, the ACP announced that it was considering the construction of a multipurpose reservoir on the Indio River that would serve both purposes.

“In Panama, we have a high dependence on rainfall, and it is necessary to increase storage capacity to ensure drinking water and transit water. In the operation of the canal, including the third set of locks, we use the volume of water that was forecast for that purpose, whereas the consumption of the population increases permanently,” Panama Canal administrator Ricaurte Vásquez Morales said in a statement.

Sources differ on whether Panama will actually follow through on its plans to construct a reservoir, however all agree that the maintenance is key to the canal’s growth.

“It is important that measures are put in place to future-proof this vital shipping artery. This is especially

Wallenius Wilhelmsen passes through the Panama Canal. Credit: Panama Canal Authority

the case considering the increasing frequency and strength of climaterelated issues. We therefore welcome the development of a new reservoir along the Indio River — to ensure the Panama Canal can remain an effective route for our services and our project cargo customers,” AAL’s Schoeller said.

The US$1.2 billion reservoir, slated for completion in six years, would ensure more consistent operations during fluctuating weather conditions, but it is only part of a long-term solution to the canal’s existing water dependency, Schoeller continued.

Desalination plants could be another viable alternative to reduce dependency on rainfall-fed reservoirs, with one such plant already installed in Escobal to assess the feasibility of a desalination procedure, he said. “The disadvantages of these initiatives, however, are the significant costs involved, and the huge amount of energy required to remove salt from seawater.”

Part of the problem with effective water resource management in Panama is the local culture, adds

Thomas. “Outside of the canal, the locals have taken for granted that “the cost of water is almost free.”

Political Pledges

There is some hope. Panamanian president José Raúl Mulino, elected in May 2024, indicated that it’s a priority of his government to shore up water resources to bring about the long-term sustainability of the canal. According to news reports, Mulino has pledged to back infrastructure efforts to ensure water availability or bolster the canal’s operations. Such infrastructure work might not only be costly, but the government will also have to ensure that the projects won’t cause environmental harm. This concern is on the ACP’s radar.

“The question is, can they maintain the infrastructure? Maintenance isn’t sexy in a lot of circles, but in an environment like the tropics, maintenance is everything,” Thomas said. “Are they able to make the adaptations and flexibility? Can they bob and weave with it? They’ve

shown that they can, and whether it was the water shortage last year or ships moving from containerization to energy, they’ve done a really good job; I think they’ll continue to do so.”

Ultimately, the health of global trade is the key factor influencing the economic viability of the canal, Thomas said. “The canal is, like Panama itself, shaped by what happens in the global economy. The continued rise of Asia, the continued rise of the U.S., the marginal decline of Europe — those will do more for the future of the canal than other particular issues.”

Concluded Castaneda: “In our industry, logistics, what is for sure is that something will change. That’s what makes logistics fascinating, right? For us at DHL, it’s crucial to be quick, and to adapt to those changes.”

Joanna Marsh is a freelance writer and journalist based in Washington, D.C. who takes an interest in sustainable transportation developments.

*Breakbulk Exhibitor

A car carrier passes through the Panama Canal. Credit: Panama Canal Authority

Including: Argentina, Brazil, Canada, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Mexico, Panama, Paraguay, Peru,

and Tobago, United States, Uruguay

A recap of the stories that broke at Breakbulk Americas

“BIG BEAST” INDUSTRY IS COMING

Get ready for a raft of new cargo opportunities related to big tech, semiconductor manufacturing and small modular reactors (SMRs), Breakbulk Americas attendees were urged.

In the panel session A New Ecosystem of Project Opportunity, Kristin Homsi, manager of supply chain, manufacturing and technology at Bechtel Corporation, outlined the scale of the opportunity.

“Just a few years ago, the capex expenditure for markets like semiconductors, data centers and EV batteries was about US$100 billion,” she said. “That same projection in a number of years is going to be up to US$400 billion – that’s just an incredible growth in a very short period of time.

“Depending on what you’re reading, these numbers are going to vary, but the one thing that is consistently the same is that these semiconductor fabs are growing. They’re large, and in some cases, the first of a kind.”

Such demand also throws up challenges, said Homsi. “If you’re looking at a green fab semiconductor plant, and you’re talking about concrete, you’re looking at the same – or more – concrete that you would have in a nuclear power plant. If you’re talking about pipe, we are well over a million feet of pipe in some cases.

“We typically think of the oil and gas industry as the big industry, but no – this beast is coming. It’s absolutely massive.”

John Lu, global sector head, semiconductors at DHL Industrial Projects, a division of DHL Global Forwarding, expanded on the demand factors. “For AI to be successful and continue in its growth path, you need to have data centers. And to build enough data centers, you need to have

By Luke King

semiconductor chips. You need to have very high-end semiconductor chips.

“And to do that, you need to build more fabs, have more capacity to build these chips to supply the data center, be successful in AI and all the other applications. So there’s a tremendous amount of growth.

“To build a fab is probably going to require somewhere between 300,000 to 500,000 square feet of lay-down warehousing, several 100,000 tons of freight. Demand is here today, and it’s going to continue for many years.”

The inevitable race for materials requires “vertical integration” with suppliers, said Homsi, pointing to an arrangement Bechtel struck in the UAE for the supply of steel as one example.

“The reason we did that, is not just that we want the certainty of schedule, which of course we do. It’s more

that if you’re looking at the volume of what’s coming online, unless you have these strategic relationships, unless you have these partnerships, there’s just not going to be enough supplier capacity in the market.”

Moderator Cyril Varghese, global logistics director at Fluor, raised the critical issue of power supply. “A typical ChatGPT query would tend to consume at least 3 to 35 times more power than a typical Google query would,” he pointed out.

“So, the first thing that comes up is the power discussion: Do we have access to power? And at this point of time, we are not even talking about affordable power – we are talking just about the physical availability of power, what is available today and what can be available based on the investment plans for tomorrow.”

Kristin Homsi, Bechtel Corporation. Credit: Hyve

Rob Jacquet, managing partner for United Ocean 7 Americas, described the importance of modularization in project moves. “Everybody is kind of pulling away from the stick build, and modularization makes it a lot easier to bring a large amount of equipment over, and to do the installation faster.”

Addressing the issue of power, he said: “There needs to be another giant source that is invested in. Cost overruns is what’s stopping a lot of these projects going forward right now because you can’t justify the price to build the factory, to provide the energy.”

Moderator Varghese added: “The data center modules, the fab modules, they’re not really that big, but we’re talking about the sheer number involved. From a modularization perspective, with a factory or a data center of this scale, you are easily talking about 300 to 1,000 truckable modules. Now multiply that by 1,000 or 1,500 data centers, and you can see the opportunity.”

For DHL’s Lu, trucking capacity was not a major issue.

“If we’re talking about the list of trucking, that final mile, we don’t see that really bottlenecking at all because I don’t think all the projects will come online together at once in one location. If there’s a high density in one location, then maybe, but I think it’s fairly spread out.”

The availability of maritime assets, on the other hand, was more concerning. “I believe that it’s very important, especially for the EPCs, to be engaging with the carrier on the ocean side,” said Jacquet.

“There is a finite amount of vessels in the world and if maybe by designing the module a few feet shorter or wider, or you construct it a little bit different, you can increase the intake for sailing.

“A lot of the ships that were built 20plus years ago just aren’t designed for today’s market. So the older fleet, if you say there’s 450 or 500 ships that exist in the world that are in the multipurpose heavy-lift sector, for a lot of them the

shape doesn’t allow for the proper intake that you would need for the modules.

“So that drops down to maybe 100 ships in the world that are serviceable for the modules – but they’re also in high demand for windmills.”

The role of barges was a particularly important consideration, said Lu. “The inland rivers are becoming so important because if you look at the map of where all the global semiconductor locations are, they’re not near the ports or by an airport. They’re all in a location that’s very much inland.”

Varghese concluded: “As an

industry, I think we will have a large, inter-connected opportunity coming, but the starting point would probably be to make the right investment in the right subject matter expertise within your organization in order that you can track these opportunities.”

Watch our post-session interview with John Lu: https://www.youtube.com/ watch?v=Cz8lNsAPqDM

*BGSN member

*Breakbulk Exhibitor

John Lu, DHL Industrial Projects Credit: Hyve

Moderator Cyril Varghese, Fluor. Credit: Hyve

DECARBONIZATION: “DON’T GET HUNG UP!”

By Simon West

The breakbulk industry must take the critical issue of decarbonization seriously by prioritizing practical, commonsense measures that make an immediate impact on day-to-day operations.

That was one of the main takeaways at a Breakbulk Americas discussion in Houston, moderated by Miller Wells, international maritime manager and carbon market specialist at Global Factor, and sponsored by The Pasha Group.

Luke Mace, senior vice president at GEODIS Project Logistics , began by spelling out some of the obstacles the sector continued to face in its bid to decarbonize, such as finding a balance between construction costs, timelines and sustainability initiatives.

“Quite often you can’t get all three – you can’t have the cheapest, the fastest and a decarbonized solution. And the big question that everyone asks is who’s going to pay for those initiatives,” Mace said.

He also pointed to the problem of navigating varying regulations, infrastructure and technological

readiness across countries – and even within different states –which create significant obstacles for forwarders trying to provide sustainable solutions.

Rebecca Dunn, sustainable product manager at Maersk , said three challenges had to be addressed for the industry to fully decarbonize: the limited availability of sustainable technologies, the high costs associated with their implementation, and the reality that many existing technologies cannot yet achieve 100% sustainability for the sector.

More regulation was needed to bridge the gap, Dunn said, pointing to federal laws in the U.S. such as the Inflation Reduction Act that could be expanded to include maritime fuels – a move that Maersk has been lobbying for.

“Regulation is really going to be the driver for decreasing that price gap and increasing the supply of fuels and technologies. And also encouraging and accelerating the adoption of these decarbonized technologies,” she said.

Jack Hedge, commercial and external affairs at California-based Pasha Stevedoring & Terminals , agreed that regulation was key.

“It’s a global industry so it makes sense to have at least a baseline of global regulation,” Hedge said.

“One of the challenges in the U.S. is that we have a federal system and not a true national system so arguably you’re getting 50 different sets of regulations. But we cannot let the perfect be the enemy of the good. Reducing emissions now, reducing carbon footprint now – even if it’s not perfect it is something all of us should be doing.”

Despite the challenges, the speakers were enthusiastic about the rapid development of sustainable solutions, emphasizing that staff training and education were crucial to building awareness of decarbonization within a company.

For Mace, it was about setting realistic targets. He argued that during the pandemic, companies were competing to announce the boldest emissions-reduction

Left to Right: Miller Wells, Global Factor; Jack Hedge, Pasha Stevedoring & Terminals; Rebecca Dunn, Maersk; Luke Mace, GEODIS Project Logistics. Credit: Hyve

commitments, be it in biofuels, carbon capture, wind or elsewhere. However, many of these commitments have since been abandoned.

He urged companies to focus on short-, medium- and long-term targets.

“There are things you can do that are just smarter – utilize your container loads, do consolidations where you can. Forty percent of emissions come from buildings, so where you’re storing your cargo, use solar panels, use electric trucks, use electric forklifts. There are a lot of things available today that require minimal investments.

“The key here is not to get hung up on what we can’t do. I can sit here and talk about all the things that don’t make sense. There’s a lot we can do and so let’s focus on that,” he said.

Dunn, however, cautioned against being overly realistic and advocated for setting ambitious goals. “If we look at just three years ago, I don’t think we could have even imagined the leaps and bounds we’ve made to get where we are today,” she said.

“There wasn’t a single green methanol vessel on orderbooks anywhere and today we have five on the water and there are almost 200 on order from companies all over the world. These are things we couldn’t even dream of three years ago. I think these ambitious goals are what’s going to move the needle.”

Hedge said that decarbonizing was central to The Pasha Group’s ethos, pointing to the company’s investment in LNG-powered vessels and the “millions of dollars” it has

spent on installing microgrids across its U.S. West Coast terminals.

“Even though we weren’t that sure what the target was, we knew that making a stand, taking the initiative and reducing emissions was important, and not waiting for someone to say it was OK,” Hedge said. “And it makes a difference – we’ve seen our emissions in our terminal operations and shipping line reduce a lot. It’s a good thing to do, the right thing to do and something we need to do now.”

Watch our post-session interview with Jack Hedge: https://www.youtube.com/ watch?v=Z09rEyXxriA&t=2s

*Breakbulk Exhibitor

Jack Hedge, Pasha Stevedoring & Terminals. Credit: Hyve

Miller Wells, Global Factor. Credit: Hyve

THE KEY TO THRIVING IN TIMES OF UNCERTAINTY

How can industry leaders transform challenges into opportunities? That was a central question raised by speakers during a panel discussion at the Women in Breakbulk networking event, held on the first day of Breakbulk Americas 2024 in Houston.

Moderator Kasey Eckstein, founder and executive director of non-profit group Women in Maritime Operations (WIMOs) and president of Eckstein Trade and Transport, opened the panel with remarks on the importance of self-assurance and pushing through uncertainty and adversity to succeed.

“Men [in the industry] don’t feel like they have to explain their resume the minute they sit down in a board room. I’m sure we’re all too familiar with having to prove why we’re in a room,” she said.

Victoria Malbrough, process specialist and compliance leader for Shell Oil and Trading , told listeners that self-advocacy had been a crucial part of her professional success, allowing her to navigate the unexpected with ease while

maintaining excellent results. She recounted an experience where her enthusiasm to contribute to her team ultimately led her to develop a stronger commitment to herself.

“I was scared but excited to bring up this concern, and I will never forget what happened,” she said. “The leader tried to make me feel like the inadequacies and the issues I saw with the process were my inadequacies and my issues. I decided at that moment that I would never allow anyone to make me feel that way moving forward. You are valuable, and what you bring to the table is valuable. It’s okay to stand your ground.”

Stephanie Esparza, Galveston terminal manager for Ports America , recounted similar experiences. “Nobody is going to vouch for you harder than you should for yourself,” she said. She recalled transitioning to a new role: “I had to fight for my worth and show that I had industry experience that translated to my new position. Ultimately, they accepted my requested salary. Hold the line – you have to fight for yourself.”

Industry panelists discuss how to thrive in times of uncertainty.

By Alex Keimig

Taylor Dickerson, vice president of project management for Kirby Corporation, recounted similar experiences, citing others’ expectations for women’s workplace performance and for their involvement in workplace extracurricular activities as some of the obstacles she has had to overcome in her career.

“We tend to have to work harder, sometimes, than our male counterparts. Whether that’s getting in early and being the last to leave, or having to perform above and beyond your counterparts, you’re taking on more responsibility. What I have realized is that you can turn that work ethic that women inherently have – because we tend to have to prove ourselves a little harder than the rest of the people in the room – and use it to your advantage,” Dickerson said.

She further expounded upon the positive effect that going above and beyond for her clients and contacts has had on her intra-office relationships: When clients began questioning her absence at sponsored activities like golf outings (to which

Credit: Hyve

Stephanie

Victoria

Jessica

she had not received an invitation), her colleagues got a firsthand look at the positive impact her work has had on their organization.

Relationships remain a critical resource for women in the industry, whether intra- or extra-organizational.

Emily Carruth, business development manager at Gebrüder Weiss, cited networking and diversification of contacts as two areas of focus that had served her well, especially in the tumult of recent years.

“I decided that I needed to network across all industries, and I’m glad that I did that because there was a time in my industry where our market took a dip, and we needed to diversify. Because I had been networking and building those relationships in other industries, I was able to pivot a lot more easily and begin selling into other markets,” Carruth said.

“People say that it’s hard [to be a woman in this industry], but hard is relative. Use it to your advantage. Just don’t pigeonhole yourself into one industry – go everywhere, because you never know where you’re going to find or close that next deal.”

Jessica Nguyen, trade development manager for Port Houston , echoed Carruth’s words. “How many Aggies are there here in the room? I’m an Aggie myself. Use that network,” she said. “Take as much advantage as you can.”

Relationships and networking contacts can be worth their weight in gold, but individual wellness cannot be ignored. Lt. Savanna L. Vandehei, port state control officer for the U.S. Coast Guard, emphasized the importance of prioritizing one’s own mental health and overall well-being even in the greater context of thriving

in times of uncertainty, sharing her story of taking time away from work to receive inpatient mental health care after a particularly difficult set of experiences earlier this year.

“I really want to express how important it is to take care of yourself,” Vandehei said. “There is always somebody who is going to help you out. I can’t think of a single time that I have asked for help, and somebody looked at me and said, ‘What are you doing?’ You all are so important, and you’re all so worth that time and care. The work will get done.”

Watch the official Women in Breakbulk networking event video https://www.youtube.com/ watch?v=GRsoNJgjQNA

*BGSN member

*Breakbulk Exhibitor

Left to Right:

Kasey Eckstein, WIMOs; Emily Carruth, Gebrüder Weiss; Taylor Dickerson, Kirby Corporation;

Esparza, Ports America;

Malbrough, Shell;

Nguyen, Port Houston; Lt. Savanna L. Vandehei, United States Coast Guard

Credit: Hyve

BEST OF 2024

THE BIG 8

86 Global Embracing the Rush of Global Project Logistics

Featuring Cyril Varguese, Global Logistics Director, Fluor

91 Asia

JGC’s Koichi Kaizu: The Master of Modularization

Featuring Koichi Kaizu, Logistics Subject Matter Expert, JGC Corporation

94 Global Semi-subs: The Mega Vessels Made for Modules

Featuring Edward Talbot, Managing Director, Roll Group USA; Peter Hansen, President, COSCO Heavy Transport; Ben van der Hoeven, Director Module Logistics, Fluor

98 Europe

Beating a Path to Poland

Featuring Mariusz Rutowicz, Country Manager for Poland, deugro; Jakub Walasek, Director UTC Poland, UTC Overseas, Inc.; Nils de Baar, President, Vestas Northern & Central Europe; Łukasz Chwalczuk, President, Polish Heavy Transport Association and board Member, ESTA

98 Europe

Ukraine: Trade Continues

Featuring Oksana Antipa, Branch Manager, Synex Logistics Group; Dmytro Prosvirin, Commercial Director, Antonov; Oleg Kozel, Negabarit

By Breakbulk Staff

94 Global Insurance Risks and Rewards

Featuring Captain Rahul Khanna, Global Head, Allianz Commercial Marine Risk Consulting; Tom Hughes, Head of Marine, AXA Australia, Jarek Klimczak, Senior Risk Consultant, AXA Marine; Captain Jia Hong Liu, Master Mariner/Technical Manager, Skuld (Far East)

107 Asia

Japan: A Market Poised for Growth

Featuring Peter Roland, Managing DirectorJapan, BBC Chartering; Masahiko Uchiyama, Managing Director - Japan, JSI Alliance; Marc Willim, Global Head of Chartering, AAL Shipping; Yuko Kimura, Managing DirectorJapan, AAL Shipping

By Thomas Timlen

110 Americas

AI and the Art of Transport Engineering

Thought Leader

By Ritesh Nair, Project Logistics Management - Ops & Global Sales, Rhenus Project Logistics USA

Breakbulk Europe May 13-15, 2025

Rotterdam Ahoy

Rotterdam, Netherlands

Breakbulk Americas Sept. 30 - Oct. 2, 2025

George R. Brown Convention Center Houston, Texas, US

EMBRACING

Fluor’s Cyril Varghese on the Joy of Finding Solutions in a Complex Business

By Luke King

Global logistics director Cyril Varghese’s induction in the world of transportation came unexpectedly in 2004, when a friend told how her uncle was working for a shipping company in the Middle East, and looking to hire a salesperson.

Brimming with the confidence that comes with youth, the naval architect, who had just finished his MBA, declared himself a perfect fit for the role, assuring his prospective boss that his background

allowed him to “speak the same language” as the ship buyers.

The only problem? This was deugro , a distinguished German freight forwarding firm – and the role had nothing to do with selling ships.

Nevertheless, Salim Rajan, at that time deugro’s regional vice president for the Middle East, saw potential in the untested Varghese and enrolled him in the deugro

Most Promising program – the first time a candidate from India had

participated in the development scheme for promising young leaders.

An initial posting in Singapore followed, starting an “exciting and steep” learning curve. “I had no experience in freight forwarding, nothing. I didn’t even know what a bill of lading was,” recalls Varghese.

Starting his journey in Singapore, the apprentice forwarder was taken under the wing of David Kwok - then an executive vice president of deugro.

THE RUSH OF GLOBAL PROJECT LOGISTICS

Varghese remembers: “David took a personal interest in me and for the three months I was there, he would carve out two hours with me every day, explaining concepts and nuances related to the industry. From container types, to ship types, from Incoterms to target client segments, from pricing dynamics to tender management.

“Every time there was a visitor in Singapore, either from an overseas office, or a client who was coming in, he would ask me to join him for all these meetings, as well as exquisite evening meals. He gave me my first exposure to my professional network - and the dining experiences were a bonus.”

Future Friend and Mentor

One of those visitors – and a future friend and mentor – was Klaus Behrmann, then working for deugro in Malaysia. “We met for dinner and immediately connected over some popular hard rock classics,” recalls Varghese. “He told me – ‘You’re going to be my apprentice and I’m going to be your sorcerer, and I will transform you.’” Behrmann would continue mentoring his protégé until he passed away in 2013.

“After three months, I left

Singapore and I had a very basic grounding, at least from a theoretical perspective,” says Varghese.

Subsequent postings were planned for Varghese in Dubai, United Arab Emirates, and then South Africa. But in Dubai, Varghese convinced the management to allow him to focus on generating some revenue before he was moved to the next destination. “We didn’t have LinkedIn, so there was a lot of focus on building client relationships and client referrals to support the sales drive.”

His first break came when Ahmed Al-Bazz, logistics manager at Petrofac, asked him to ship a 20-foot GP container from Ningbo to Sharjah, and “held his hands all the way through” until the shipment was invoiced.

“I still remember the $20 profit I booked on that shipment – my first shipment,” says Varghese. “Later, he would engage me on many more shipments, especially from the U.S., once he realized that the bachelor was happy to stay late and work with the Houston office to get him an update by the time he got to the office.”

Thrill of the Sale

Varghese started “loving” his sales role and invested heavily in building

his network. Clients like Siemens, CB&I, ABB, EMAL, Crescent Petroleum, Dragon Oil, Hunt Oil and Alstom kept him busy and learning. Three months became six years.

“I stayed put in Dubai and handled many very interesting Middle East projects. I was given management responsibility of the Dubai office in 2008 and was proudly running the company’s most profitable office by 2010,” says Varghese.

When industry veteran Steve Drugan, who Varghese considers “one of the greatest project forwarders of all times,” joined deugro, Varghese started getting exposed to a larger scale of opportunities with the bigger EPCs.

“I always wanted to experience the complex and competitive landscape of logistics in India so took the opportunity to move there, when deugro opened an office in India. We did some exceptional shipments for companies like Larsen & Toubro, Reliance and Siemens during my stint.”

In 2012, Varghese returned to the Middle East and joined Kuehne+Nagel Ibrakom, where he handled project shipments for companies like Technip, DNO, Petrofac and Dragon Oil, among many others.

Beginning of “A Great Run”

During late 2014, Raj Desai, then leading the Supply Chain Commercial Strategies group in Fluor, reached out and asked Varghese to join the company in Houston – the start of what he calls “a great run.”

Varghese initially started with global logistics responsibilities, focusing on a commercial and strategy role for the company.

He says: “For the size of the organization, I was genuinely surprised at the speed at which we were able to bring concepts to fruition; from setting up a container negotiations desk, a chartering desk, a module ocean transport desk, our centralized Logistics Competence Centre in New Delhi, Fluor’s Fabrication Logistics desk, our Supply Chain Summit and the Fluor Supply Chain

Services portfolio – to name a few.

“The Fluor culture, steeped in integrity, mutual respect, along with an environment that allows us to innovate, is an ecosystem that helps us get exceptional talent to work with us.

“The quantum and diversity of the transport solutions we manage, from large LNG, chemical and refinery modules, equipment for the largest mining, advanced technology and life sciences projects, keeps our team intellectually stimulated.”

Fair and Balanced Terms

With his background in project freight forwarding, Varghese is uniquely placed to seek value from his logistics service providers, while “always trying to treat them fairly.”

“There is a tendency to look at logistics cost, however loosely

calibrated, as a static number,” he says. “People understand that commodity prices change, whether that’s oil, copper, nickel or steel, yet they somehow believe that freight is a fixed number.

“We’ve been working hard to educate stakeholders around the dynamics of freight, encouraging a shift of mindset from lowest unit price to lowest landed cost, with a focus on schedule and treating freight as a commodity that goes through volatility and cycles.

“Nobody gains by keeping freight rates lower than operating costs. It’s important that the market realizes that these are extremely capitalintensive investments that shipping lines, for example, need to make. The returns should be at a respectable level for investments to continue and for the sectors to retain competition.”

Fluor, with its joint venture partner JGC Corporation, is delivering multiple aspects of the LNG Canada project, including engineering, procurement, fabrication and delivery of modules. A 11,000 ton dehydration and mercury removal module is pictured doing the last mile over the road in Kitimat, British Columbia.

Credit: Fluor

Great Expectations

So what does the Fluor executive expect from his logistics partners?

“A significantly large percentage of the freight forwarders are comfortable pricing for a very welldefined scope,” he says. “So if I send a packing list, they know how to price because they know what the cargo looks like, where it’s coming from, where it’s going and so on, and they can come back with a proposal.

“The problem EPCs have is, when a freight forwarding contract is placed, there are multiple purchase orders for materials and equipment that are still being negotiated. We may not know at that stage where a lot of materials are coming from, the mode of transportation, the stowage factor – there’s potentially a lot of missing information.”

He adds: “A true project forwarder is able to aggregate the intelligence that they’ve gained over multiple years of executing similar work and bring those insights into their pricing, instead of speculating on unit rates.

“For example, when a freight forwarder is pricing for, say, 20,000 tonnes of structural steel or pipe spools, insights around the stowage factor, assumptions on the percentage split between breakbulk and containers, average weight that is typically stowed in a container, optimal bundle, etc, can help build up a landed cost and help the proposal stand out.

“An intentional drive to utilize insights from data may also help them carve out additional scopes that are typically left with other stakeholders, which will help in improving margins, while generating value for the EPC from a landed cost perspective.”

Varghese believes freight forwarders are sitting on a “treasure trove of data based on what they’ve transacted in the past.”

He says: “Meaningful interactions that I enjoy with our partners is when they are aware about the projects that

we are tracking, are able to provide insights at the early stages, bring sector-specific and project-specific solutions to the table and work their way into a top-of-the-mind recall.”

Global Traveler

Away from work, the married fatherof-two enjoys cooking meals with his family – “I try my hand at a range of different global cuisines and different music genres help me unwind.

“I love traveling with my family, interacting with different cultures and savoring diverse cuisines. Every time we make a family trip, whether that’s our recent trips to Japan or Brazil or road trips in the United States, there’s always somebody local from my network, who can share insights

and help with the planning,” he says.

As our conversation draws to a close, Varghese touches on the well-documented challenges faced by the sector in finding – and retaining – the talent of tomorrow.

“When we were growing up in the industry, our generation would have been perfectly OK with working on a documentation role for many years, before you got a chance to do something meaningful or impactful,” he recalls.

“And then you’d probably start with the, let’s say, ‘low impact’ clients and slowly get experience before you meet face-to-face with a VIP client. But, today, the younger generation needs a little bit more of an instant gratification and recognition – and there’s nothing wrong with that.

Cyril with his family enjoying Houston. Credit: Cyril Varghese

“It is for the industry to take cognizance of the fact that the dynamics are different. You cannot expect a youngster to come to an office at nine in the morning, leave at five and just do paperwork for the next 10 years. They want to see the purpose of what they’re doing.”

A Seat at the Table

Varghese expands: “The younger generation needs to have visibility, recognition, appreciation and affirmation. A seat at the table with their senior leadership, visibility in front of peers and clients, continuous opportunities to learn, innovate and challenge, and an organizational willingness to look at learning as a two-way street will assist in retention, once we have talent on board.

“As an industry, we have not socialized the appeal of a career in project freight forwarding, nor have we collectively invested in an infrastructure surrounding training and development for the stakeholders that join the industry. Fluor is currently conceptualizing a number of initiatives to address this gap.”

The logistics veteran’s advice to the younger generation is to “network, to genuinely show interest and to use the tools which are available to build a meaningful network, so that you can help people and also receive help when you need it. Integrity and transparency are key to success, as you build up your subject matter expertise that will propel you into leadership roles.”

Hour of Need

Varghese would also like to stress to the younger generation that the breakbulk industry “runs on personal relationships, and comes together at the hour of need.”

One such example is the passing of his mentor, Klaus Behrmann, in 2013. Varghese recalls conversations with well-wishers like Fuat Miskavi, another project logistics professional, who offered to pay for overseas treatment when Klaus was on his deathbed.

“I’VE NEVER HAD A DULL DAY IN MY WORKING LIFE IN TERMS OF CONTENT. EVERY DAY IS DIFFERENT. I GET AN ADRENALINE RUSH WHEN WE’RE ABLE TO UTILIZE OUR ORGANIZATIONAL INTELLIGENCE TO FIND INNOVATIVE SOLUTIONS.”

Varghese says: “During one of our trips to Turkey, Klaus passingly mentioned to me that, when he died, he wanted his ashes to be immersed somewhere in the Mediterranean Sea. After the cremation, I consulted with his wife and daughter and they entrusted me to make the arrangements.

“Not knowing where to start, I called my friend, Dennis Geertz from SAL, who called back shortly confirming that MV Trina was loading in Jebel Ali and was scheduled to discharge in the UK. The family and I met Captain Matthias Pfeiffer and he hosted me and the family on board the ship and told us that he will support us in fulfilling Klaus’ last wishes.”

A few weeks passed and Varghese received a parcel from Capt. Pfeiffer, with a photo book of the ceremony at sea, including handwritten letters to Mrs. Behrmann and a large copy of the captain’s logbook, stating the exact coordinates where the ceremony was conducted.

In his photobook, Capt. Pfeiffer explained how this was a first for him, and that he had to read up on age-old maritime customs for burials at sea.

“In a solemn ceremony, he waited for calm seas, summoned the crew, by ringing the bell nine times (signifying the end of one’s shift), after which he officiated a prayer, used sacramental oils for the ceremony and climbed down the gangway to respectfully immerse the ashes,” says Varghese.

“He then recorded the coordinates in his logbook and did three rounds around the coordinates to form a circle of foam (signifying the circle of life), before he proceeded to his destination.”

Varghese admits he still gets “tears and goosebumps” when he sees the photobook.

Creative Logistics Solutions

But what of the future? “The scale of some of the capital investments that we see on the horizon require extremely creative logistics solutions, to the extent that clients agree to design modules that fit our recommended ship types,” says Varghese.

“The diversity of these projects, the focus on global sourcing and modularization will all ensure that logistics will continue its stride from the back-end to the driving seat.

“We are also excited about the interest that our clients are showing in our supply chain services portfolio, where we can utilize our organizational intelligence, global reach, market relationships, volume leverage and data-driven market insights to generate value for our clients.”

Summing up his career to date, Varghese concludes: “I’ve never had a dull day in my working life in terms of content. Every day is different. There are always new and interesting challenges and opportunities and I get an adrenaline rush when we’re able to utilize our organizational intelligence to find innovative solutions.”

Involved in the project cargo industry since 2007, Luke King is managing editor of Breakbulk

*BGSN member *Breakbulk Exhibitor

JGC’S KOICHI KAIZU: THE MASTER OF MODULARIZATION

At JGC Corporation in Japan, freight forwarders and other logistics partners are held in particularly high regard, given their ability to make or break a project’s success.

“Since JGC is engaged in megaprojects, any delays in the shipment of components, heavy equipment and structures can lead to additional project costs amounting to millions

of dollars per day,” said Koichi Kaizu, a logistics subject matter expert for module transportation at JGC, in an exclusive interview for Breakbulk

“Therefore, robustness and certainty in our logistics execution become critical for overall supply chain management, and the performance of the logistics service provider significantly impacts our logistics execution performance.

Logistics Partners Play Outsized Role in Modularized Projects, Says JGC Specialist

By Damon Evans

“As a result, we prioritize trust and accountability in our long-term partnerships with logistics companies. This helps us manage unexpected events, such as the COVID pandemic,” the logistics expert added.

Kaizu is charged with shipping heavy cargoes and equipment to energy projects across the globe, including modules heavier than the steel structure of the Eiffel Tower.

Established in 1928 and headquartered in Yokohama, JGC is a global engineering company that specializes in the design, procurement and construction of large-scale industrial plants and facilities, particularly in the energy transition sector.

It operates in various business fields such as oil and gas, chemicals, renewable energy, life science and infrastructure development and says its biggest market is energy construction projects, including liquefied natural gas (LNG) plants.

Global Operations

The company is working on multiple LNG projects around the world, among them the Shell-led LNG Canada project, one of Canada’s largest-ever energy projects. JGC uses a modular construction approach, where much of the project is built offsite overseas, before being transported and installed at the final location.

The LNG Canada modules, for instance, were fabricated at various yards across the world, including China, Italy and Indonesia - the largest weighing in at more than 9,500 tons.

LNG Canada, a joint venture company encompassing Shell, Petronas, PetroChina, KOGAS, and Mitsubishi, is building an LNG export terminal in Kitimat, British Columbia. A joint venture between JGC and Fluor is in charge of delivering multiple aspects of the Canadian megaproject,

An advanced design “JI Module” (JGC Integrated Module) weighing 10,000 tons onboard a Cosco semi-submersible vessel.

including engineering, procurement, fabrication and delivery of modules, as well as construction of the project’s infrastructure and utilities, marine structures and LNG storage tanks.

Elsewhere, JGC is currently executing multiple floating LNG (FLNG) plant projects simultaneously. An FLNG plant is a specialized vessel used for the production, liquefaction, storage and transfer of LNG at sea, with technology that’s often used to tap small-scale offshore gas fields.

JGC is responsible for the engineering, procurement and commissioning work for the FLNG topside, the associated onshore facilities and the management of the overall project.

A Modular Approach

JGC uses a modular construction approach for projects built in remote areas, where there are inevitably labor availability and cost concerns. Indeed, Kaizu believes the greatest challenge for JGC when executing projects is the location of the energy plant site, since the construction site management cost is a significant element.

A logistics partner’s role in a modularized project is especially pronounced, emphasizes Kaizu. “A one-day delay in an individual piece of equipment remains the impact of a delay in one unit of work pack (a group of related tasks) in a conventional project –but in a modularized project, it becomes the impact of a delay in one module.

“If we consider a module in terms of work pack volume, it is equivalent to several thousand units of work pack volume and, therefore, a delay in a module means a delay in several thousand units of work pack at construction site. As a result, the impact on the site and the entire project is enormous.”

It’s no surprise, then, that Kaizu values reliability and speed as key traits among JGC’s logistics partners. “Mitigation measures are also important – if there is a delay in delivering a shipment to the construction site, for whatever reason, such as a manufacturing delay, then we might be able to choose air freight to recover the schedule.

“However, for modules, we don’t have that transport option, as due to the size and weight, they can only be shipped by sea.”

JGC’s first experience using the modular approach was for the Gorgon LNG development in Australia. “Since then, we have gained more experience, and we are continually improving the modularization design process,” noted Kaizu. “As a result of the design progress, the module size and weight got larger and heavier than ever before. To transport these giant modules, we need to use very large semi-submersible vessels.”

The company’s modules tend to be fabricated in countries such as China, Indonesia, and Thailand, Kaizu said. “We then transport them to the energy plant construction area. We have completed these types of energy construction projects in Australia, as well as the Arctic area of Russia.”

Seeking Long-Term Partnerships

While JGC does not often seek opportunities to deviate from its well-established logistics partners, business opportunities do exist for new players, said Kaizu.

JGC is said to be “very happy” with its legacy partners deugro, Bolloré and a few other forwarders, though

Credit: JGC

it continues to explore potential collaborations with other suppliers.

“We are looking for trusted partners to be added to our future projects, but we also want to be a trusted partner for them too,” said Kaizu.

“In addition to the basics, such as cost, speed, quality, and capability, we are seeking trust and accountability. This is of utmost importance. As we experienced the market volatility and disruption during the pandemic, we need a certain amount of accountability and trust which goes beyond common practice,” stressed Kaizu.

“We feel a strong obligation to retain our reliability, credibility and accountability to our partners,” he added. “We select partners for long-term relationships.”

For its modular energy projects, JGC engages two different types of logistics partners – international freight forwarding companies and module transportation ocean carriers.

“In terms of the freight forwarding company, we expect them to have the capability and ability to manage

materials shipments to various destinations as we execute projects across multiple locations,” said Kaizu.

“Typically, we use four or five fabrication yards for one project. Therefore, our freight forwarding company needs to manage equipment shipments from our global suppliers to four or five different final destinations, which includes managing import duty exemptions,” he added.

Minimizing Carbon Emissions

JGC is actively involved in various energy projects across the world that are focused on reducing greenhouse gas emissions and advancing sustainable energy solutions. Now, the major energy companies are also looking to their contractors and suppliers, such as JGC, to manage their environmental footprints.

“Reducing emissions is our big homework, as our clients increasingly ask us to demonstrate how we will minimize carbon emissions during the EPC project execution. To respond, we need to develop our

program and we need cooperation from our partners, such as shipping companies,” noted Kaizu.

Looking ahead, Kaizu, who has worked in logistics and shipping at JGC for 20 years, considers the African and North American markets to be the most active for energy projects over the next decade. “In Africa, we expect LNG projects, while in North America, we are exploring ammonia and nuclear power projects, as well as LNG.”

Kaizu said long-term energy market trends are difficult to predict, but in the near-term he states “there is a general market understanding that coal plants will disappear very soon. Next to disappear will be oil refinery and oil-fired power plants.” However, he regards natural gas and LNG to be “sustainable for the next 10 to 20 years, playing a role in the energy transition.”

Damon Evans is a freelance journalist, analyst and consultant, specializing in the energy sector with 20 years of experience. He is based in Singapore.

*BGSN member

*Breakbulk Exhibitor

A JGC conventional design module weighing more than 5,000 tons being transported by the Dockwise Forte semi-submersible heavy-lift vessel. Credit: JGC

SEMI-SUBS: THE MEGA VESSELS MADE FOR MODULES

Oil & Gas, Renewables Keep Sector’s Largest Ships Busy

By Felicity Landon

Semi-submersible vessels could be described as the unsung heroes of project cargo and heavy-lift shipping – and in some parts of the industry, there’s scant knowledge of where, and how, semi-subs really come into their own. This is the view of one industry stakeholder to the Breakbulk Editorial Board member who would like to foster a better understanding – and appreciation – of semi-subs.

“It’s a topic that most people in project logistics don’t actually understand very well, or have a lot of expertise in,” he said. “Perhaps they don’t need to understand or use semi-submersibles every day – semisubmersibles are definitely a niche area, and we should recognize their importance as they relate to modular and offshore projects.”

Edward Talbot, USA managing director at Roll Group agreed that “industry can always learn and understand more about the more specialist end of the heavy-lift market.”

Roll Group owns and operates a fleet of “highly adaptable” transport vessels, including semi-submersible, multifunctional vessels and wide deck carriers, which the company says are suited for “a wide variety of situations and circumstances.”

As to when it makes sense to consider a semi-submersible, Talbot says: “It is a case-by-case, project-byproject basis. Project teams should consider not only the cargo and routing, but the entire logistics strategy from vendor to foundation.”

COSCO Heavy Transport, which operates the world’s largest fleet of semi-submersible heavy-lift vessels, took delivery of the 65,000dwt SP2 vessel Xiang Tai Kou in January. Measuring 231.10 meters LOA and 46 meters wide, it brought the total COSCO semi-subs fleet to 16, the majority of which are DP2 classed. The largest of the fleet is the 255-meter LOA, 98,000dwt Xin Guang Hua.

No other newbuilds are currently planned, said Peter Hansen, president of COSCO Heavy Transport, noting increased demand for semisubmersible heavy-lift vessels as the

COSCO Heavy Transport operates the world’s largest fleet of semi-submersible, heavy-lift vessels.

Credit: Cosco Shipping

oil and gas market remains strong, while the renewable energy market is adding to client requests.

“We do not see a considerable change in geographical demand, even with the introduction of renewable cargoes,” he noted. However, he reported requirements to perform floatover mating installations of increasingly large topsides, and said COSCO had “built

accordingly to meet market demand.”

Do customers have to be creative or flexible on timing to ensure access to the ships they need in the places they need them? Hansen said: “Demand for vessels is good, so it is wise to plan accordingly, and secure tonnage required for projects as early as possible.”

Flexibility Is Key

From the EPC’s point of view, flexibility is everything. Ben van der Hoeven, director module logistics at Fluor, in the Netherlands, said: “When we develop solutions for our clients, we would advise them on the design of a plant or project – and would already know what kinds of vessels we need, how many and the duration of employment of these vessels. As an EPC we have a big say in finding a match; we can go very big and have fewer shipments or smaller with modules but need more voyages. We are constantly working on finding an optimum there.”

He described COSCO’s X-class as the “workhorse” of the industry, “Simply because you tend to design towards the vessels that are available in the market. For us, from a modular construction perspective, we don’t want to look at the unique, big units of COSCO or Boskalis, we want to look at units where there are sufficient sister ships. That is very important for us.”

One unique vessel on its own is often not regarded as a strategic solution, explained Van der Hoeven. “It could be a solution for the big oil companies, for example when they need to move one large rig or FPSO, but if you have a multi-voyage modular project, you need to be able to use sister vessels. That said, Fluor does have large one-off projects from time to time, that require the services of these top-end-of-the-market, semisubmersible vessels.

“You can plan it, and change ships if needed, without having to change the engineering or design. From the starting point, we like to look at ship types where there are sufficient sister ships or technically equivalent ships and we would design a project in a somewhat strategic, conservative way to make sure we would not be without tonnage.”

COSCO says its vessels have been designed in close consultation with leading offshore, oil and drilling companies in order to incorporate the latest developments in the industry and “to provide the safest, fastest and most reliable transports and installations within the semi-submersible market.”

Van der Hoeven, who previously held commercial positions with Damen Shipyards, Boskalis (Dockwise) and RollDock, said: “We have active dialogues ongoing with the shipowners, who also approach us and say – hey, we are thinking about a newbuilding, what would you like us to build? The question from time to time passes my desk and then I will have an opinion.

“I would be happy if there was more tonnage of this and that in the market – that would make me smile, but that is not necessarily the same thing as would make the shipowners smile. Owners like to have a differentiating factor on their vessels, I like to have sister vessels. But in general, there are usually good discussions ongoing over a cup of coffee.”

“A FEW SHIPOWNERS, WITH THE RIGHT COMMERCIAL AND STRATEGIC VISION AND THE FINANCIAL ROBUSTNESS TO DO IT, ARE NOW STEPPING FORWARD TO INITIATE

NEW BUILDING”

-

BEN VAN DER HOEVEN

Growing Environmental Awareness

As for innovation, Van der Hoeven points to size, capacity and, to some extent, speed – but more sustained speed. There is also increasing awareness of a project’s CO2 footprint, and therefore questions around fuels. An EPC is likely not in a position to reject ships that burn fossil fuel. “But if you have a vessel that can burn cleaner fuels, you may get some brownie points that just may tip the balance regarding the award of a contract.

“We would certainly say to the shipowner, it helps if you come up with solutions that supports Fluor to deliver solutions for our clients that demonstrate efforts to reduce the environmental footprint of a project.”

The pressure to adopt clean fuels will build - “and it has to,” he said. However, semi-subs are exceptionally strongly built, and they are built to last. “There are some older vessels still around and still in excellent shape.”

Hansen noted that the COSCO Shipping group, with its total fleet of more than 1,400 vessels, is spending considerable resources in evaluating alternative fuel sources. “Our parent company, COSCO Shipping Specialized, recently put two LNG dual-fuel powered ro-ro vessels into service,” he said.

The market is fairly quiet for large modular projects at present, according

to Van der Hoeven. There has been a tendency towards projects with smaller modules, but he predicted that the larger modules “will come again. Although fossil fuels and traditional chemicals may be in a mature phase on their S-curve, they will continue to form the lion share of our industry.

“Many of the renewables and sustainable projects, recycling and upcycling projects, are still at the beginning of their S-curve and time will tell whether large-scale growth towards more mature business will lead to more and larger modules being shipped.”

Global Developments

There have been unexpected knocks – for example, the delay (or extended timescales) on projects in the Middle East, where operators were gearing up for huge demand and newbuilds were being considered to serve this, and the impact of Russia’s invasion of Ukraine, pushing back key energy projects.

“Nobody expected that we would have the war in Ukraine. If that wasn’t there, there might have been further developments in the Russian Arctic,” said Van der Hoeven. “Global developments, including present tensions in the Middle East, impact shipping needs and also the supply situation; it’s a fine balance of supply and demand and the scales can be

Ben van der Hoeven

tipped very quickly, so there is a reluctance to build new ships too intensively.

“In the minds of shipowners, it hasn’t been too long since we saw a market with an over-supply of deck carrier tonnage, causing a doldrums period of several years with prolonged idling of vessels. A few shipowners, with the right commercial and strategic vision and the financial robustness to do it, are now stepping forward to initiate new building. A prime example is BigLift Shipping/CY Logistics, whose new ballastable module carriers will soon enter service.”

Van der Hoeven says there is more demand for flat deck carrier tonnage in general, though “whether that is going to be semi-submersibles remains to be seen. It depends highly on the location of projects. At the moment, many of the semi-submersibles are engaged in

the renewables industry. If we separate out that part, we are still in need of potential semi-submersibles if the location of a project requires.”

Hence, he said, there is room for some semi-sub newbuilds. He pointed to Canada and Australia as key areas, due to their large tidal variation.

“Semi-submersibles have much bigger ballasting capabilities than other vessels. In certain locations we need that – where the tidal variation is so big that you do need ships with significant ballast capability.”

Some of the ballastable module carriers, however, also have high spec ballast systems to offer similar performance as the semi submersibles, Van der Hoeven noted.

Semi-submersibles have another big advantage, he added – they can be used in conjunction with piggyback systems, carrying barges that are loaded with modules. “There are applications of

semi-submersibles in the market where a barge is the solution for the last mile – drop it off in deep water and the last mile or upriver stretch can be done by barge.”

Another reason to consider piggyback concepts is a possible reduction of the high day rates commanded by semi-submersibles by pre-loading barges and following up with a relatively straight forward barge float-on operation, the Fluor executive said.

“This can avoid having to develop a full-depth material offload facility, with the barge able to be pushed into a shallow material-receiving facility,” Van der Hoeven concluded.

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

*Breakbulk Exhibitor * BGSN member

Roll Group owns a fleet of adaptable transport vessels, including semi-submersibles and wide deck carriers.

Credit: Roll Group

By Luke King

BEATING A PATH TO POLAND

Wind Energy, Nuclear Prospects and Infrastructure Upgrades Attract Logistics Companies to Central European Nation

In the next two years, a new €250 million offshore wind terminal will open in Gdańsk, underscoring Poland’s commitment to energy transition and indicative of a focus on renewable power that is generating substantial business for the project forwarding community.

The central European nation is enjoying an unprecedented period of growth. Unemployment has fallen below 5% for the first time since 1990, when Poland was beginning its post-communist transformation, while GDP per capita may overtake that of the United Kingdom by 2030, according to the World Bank.

Freight forwarders have been quick to seize the opportunity, evidenced by a steady stream of new office announcements in Poland from the logistics sector in the last 12 months.

Among those with new Polish operations is deugro, the Germanheadquartered project cargo specialist, which opened an office in Gdynia, a port city a few kilometers north of Gdańsk on the Baltic Sea coast, in October last year.

Mariusz Rutowicz, country manager for Poland, explained the motivation to Breakbulk, citing deugro’s “long history in successfully completed projects in Poland.”

He said: “Poland is at another very important threshold of infrastructure development. “Our current government has implemented several huge investment programs that require specialized serviceincluding in the field of logistics.

“Many logistics companies are currently investing in Poland to keep up with the development of global

connections and strengthen the supply network.”

Infrastructure upgrades, including road, rail and port facilities, have also enhanced Poland’s logistics capabilities, Rutowicz said. He pointed to major projects at Gdańsk, Szczecin / Świnoujście and Gdynia

Mariusz Rutowicz

ports, plus new terminals at Baltic Hub – all of which are “making the country more accessible and efficient for logistics operations.”

Intervention by the state has also been encouraging, Rutowicz added.

“The Polish government has been supportive of business investments, offering incentives and creating a favorable regulatory environment for foreign companies. This includes tax incentives, grants and streamlined administrative processes.”

UTC Overseas – a global forwarder that opened a Gdańsk office earlier this year – offered some additional reasons for the company’s foray into Poland.

“Decarbonization has an enormous influence,” said Jakub Walasek, director of UTC’s Poland office.

“It involves building new lowemission power plants, mostly gas-powered. Additionally, the exchange of old coal-fired plants to gas-powered plants is a big thing.

“The war in Ukraine will end one day and the country will need to be rebuilt. Poland is the closest in terms of history and culture to Ukraine so a lot of business will be done this way.”

Renewables a Major Driver

Rutowicz said that substantial investments in renewable energy, particularly wind and solar power, was a “major driver” for the significant growth in the Polish heavy-lift market.

Such investments are leading to “increased demand for project cargo and specialized logistics services, creating opportunities for logistics providers to support the transport of large and complex components,” he said.

“Szczecin, as the location for the new factories of wind turbine components, holds strategic importance due to its proximity to the Baltic Sea, which is emerging as one of the main areas for offshore projects in Europe.”

Another recent development was the European Commission’s approval (under EU “state aid” regulations) earlier this summer for Poland to invest €194 million in the aforementioned new offshore wind terminal.

“After years of delays, there is a green light from the European Commission for the construction of a terminal in Gdańsk for Polish wind farms on the Baltic Sea,” wrote Jan Szyszko, deputy minister of funds and regional policy, in a July social media post.

The terminal will be located at Baltic Hub – Poland’s largest container

port – and will facilitate the installation and servicing of wind turbines in the Baltic Sea as part of Poland’s plans to generate up to 51% of electricity from renewables by 2040.

The total cost of the project is €253 million, with the balance financed by the beneficiary, Istrana, which will build the terminal. It is expected to be operational in 2026 and will operate under a lease between Istrana and the port authority ZMPG until 2055.

Separately, renewable energy manufacturer Vestas announced plans to build a new offshore nacelle and assembly factory in Szczecin to meet “rapid offshore growth.”

The Szczecin facility will assemble nacelles and hubs for Vestas’ flagship offshore wind turbine, the V236-15.0 MW, and is expected to create 700 direct jobs when it starts operations in 2025. “The factory will support domestic and global demand and will play a crucial role in supporting Poland’s offshore wind market and industry,” the company said.

In January 2024, Vestas revealed plans to build a second factory in Szczecin, this time a blade factory, located at a site in northern Szczecin, close to the nacelle and assembly factory. It is expected to come online a year later, in 2026, adding more than 1,000 direct roles.

“Poland is transforming its energy system and is a promising wind energy market with good conditions both onshore and offshore,” said Nils de Baar, president of Vestas Northern & Central Europe.

“Poland has a highly skilled labor force and growing wind industry that can become an offshore hub for the Baltic Region – and the rest of Europe.”

“Highly Significant” Nuclear Announcement

Poland’s plans to start building its first nuclear power plant in 2026, in partnership with Bechtel, are well publicized, but the government’s recent approval of 24 small modular reactors (SMRs) is described as

DSV transported a petrochemical column wash tower weighing 850 tons from Gdańsk to Płock, in what it claims is the largest shipment ever to move on the Polish rivers.

Credit: DSV Poland

Jakub Walasek

“highly significant for project forwarders” by deugro’s Rutowicz.

“Future investment in these reactors represent a substantial logistical undertaking, involving the transportation of large, complex, and sensitive components,” he said.

“The opportunities for project forwarders are considerable, including the need for specialized transport solutions, handling equipment and expertise in managing oversized loads and hazardous materials.

“Moreover, the construction of these reactors will likely span several years, providing long-term projects and steady demand for logistics services. Project forwarders can also benefit from partnerships with reactor manufacturers, construction firms and other stakeholders.

“Overall, the SMR projects present a unique chance to demonstrate logistical capabilities, innovate in transport

methodologies and contribute to Poland’s energy transition, positioning project forwarders as critical players in this sector.”

The Polish government says building the SMRs across six sites by 2030 will help accelerate the phasing out of coal as well as ensure stable power supplies as the country reduces its use of fossil fuels.

Challenges, as Well as Opportunities

Lawyer Łukasz Chwalczuk, also president of the Polish Heavy Transport Association and a board member of ESTA, says his firm has assisted a number of international project forwarders to establish Polish operations with a view to exploiting the “huge opportunity” he sees in his home country.

Despite the strong prospects, Chwalczuk described a number of issues that were hindering heavy cargo operations in Poland. “Before the war in Ukraine, 70% of drivers in Polish trucking companies were Ukrainians and many of them have returned home to fight, so there is a big gap to fill there.”

Aside from a driver shortage, Chwalczuk bemoaned a lack of digitalization in the heavy haul process. “Road permits are still printed on paper so, for the last two or three years, our association has been putting a lot of effort and money to try and introduce digital permits for heavy transport.

“Some of our small neighboring countries already have a digital system and Poland is, from my knowledge, one of the last to still be on paper, and rather behind – so we need that to change.”

Walasek from UTC added that difficulties arose due to aging infrastructure that is not always well maintained. “Sometimes, even new bridges suffer from a lack of documentation and construction problems. Other than that, the weather in Poland is very unreliable, so if you plan to transport any heavy items on the river, you can be lucky or very unlucky.”

Notwithstanding the difficulties, logistics companies continue to tread a path to Poland in search of business that is currently hard to come by elsewhere in Europe, said Chwalczuk.

“Germany was a very big market for heavy transport for many years, but for the last year or two it became super difficult to find good contracts. In terms of the Polish heavy transport market, we see many, many jobs.

“Poland is building a lot of highways, express roads, the infrastructure sector is looking good. There are rail projects too, and huge money is being spent.”

Involved in the project cargo industry since 2007, Luke King is managing editor of Breakbulk.

*Breakbulk Exhibitor

* BGSN member

UTC Overseas handled three oversized LPG storage tanks, each weighing 385 tons, which were loaded onto a barge using SPMT trailers, before reaching their final destination in Poland.

Credit: UTC Overseas

Łukasz Chwalczuk

UKRAINE: TRADE CONTINUES

Ukraine War Rebuilding Must Wait but Project Cargo Remains Busy

Forwarders and breakbulk specialists report a roaring trade in both imports and exports for Ukraine, despite Russia’s invasion more than two years ago. Breakbulk spoke to Oksana Antipa, a Ukrainian national who fled when the war started and has recently joined Synex Logistics Group. A former key account executive for DB Schenker in Kyiv, she is now based in Gdynia as Synex branch manager for Poland.

“Ukraine is a huge country and the war means there’s massive demand for a long list of materials,” Antipa says. “Buildings are being re-built, factories are still operating, agriculture continues, so there’s constant demand for raw materials.

“Life is going on, universities are working, children are going to school and people are trying to live a normal life. But the buses, trains and trams were ruined, so I get a lot of requests regarding this type of cargo, including brand new electric buses from China.”

In addition, Antipa says “huge volumes” of stainless steel rounds are being imported to Polish and Romanian ports, bound for

By Breakbulk Staff

Ukraine. Baltic Hub Container Terminal is a facility of choice for smaller shipments coming in on container vessels, while breakbulk ships usually call at Port Gdynia.

Ukraine’s exports, on the other hand, also remain strong, according to Antipa. These include more routine items such as grain, timber, lumber, honey, sunflower oil, fruit, vegetables and finished steel products, but also cargoes unique to Ukraine. “For example, Ukraine manufactures very interesting Sherp utility task vehicles that can be driven on the mountains and go in the water – they are very unusual and are in demand in the USA, in Canada and worldwide.”

Antipa adds: “Nevertheless our primary task at the moment is imports, helping to get all the materials needed into Ukraine. We are working closely with our partner Dealex Transport in Ukraine, we support each other and have built a very good setup. Ukrainian freight forwarding companies are now asking for help, because we have the

warehouses, special rates, special contracts for freight, and knowledge of the Romanian and Polish ports.”

While Odessa port remains officially closed to maritime traffic, Antipa says a “special corridor for small breakbulk vessels” exists to facilitate the import of critical cargoes such as building materials and stainless steel. “After the war, enormous projects will naturally come – not only rebuilding of houses, but relocation of factories, electricity projects and there will be even greater demand for equipment.”

Industry Recovery

Ongoing closure of Ukraine’s airspace means heavy-lift carrier Antonov Airlines is unable to carry out domestic operations, though it says it has “partially relocated” the airline to Germany, thanks to established relations with Leipzig/Halle airport.

“There is also a base for operational work and aircraft maintenance,” says Dmytro Prosvirin, commercial director at Antonov. “In this way, we are able to continue working on international air routes,

meeting the demand in the market of extra-heavy and oversized cargo. Five aircraft of the An-124-100 type make flights all over the world, except for areas where flights are restricted for security reasons.

“Part of the flights are carried out in the interests of Ukraine while the remaining shipments are project cargo, including satellites, turbines, gas and oil production equipment and generators, general cargo and missions under the Nato Salis program.”

The carrier’s base at Gostomel airport on the outskirts of Kyiv suffered significant damage, though Prosvirin reports that repair works are underway. “Plans are being developed for the restoration and development of the airport after the end of hostilities in Ukraine,” he adds. Turkish engineering firm

Mabtec, for instance, intends to build a logistics and transportation hub at Gostomel , once Ukraine’s airspace is operational again.

In general, Antonov sees a recovery of logistics activity following the Covid-19 pandemic,

with particularly strong demand from the industrial and energy sectors.

“It is worth noting the increased interest from companies in the aerospace industry over the past 20 years, and we predict a further increase in the number of orders in this industry,” concludes Prosvirin.

Motoring On

From his office in Kovel, a city in north-west Ukraine close to the Polish border, the owner of heavy transport company Negabarit Service tells Breakbulk that a wide-scale rebuilding effort is still a distant prospect.

“At the moment, Ukraine is maintaining its state more than rebuilding, especially considering the destruction of energy facilities, ports and infrastructure, houses and roads,” says Oleg Kozel.

Dmytro Prosvirin

Antonov has “partially relocated” to Germany, thanks to established relations with Leipzig/Halle airport.

Credit: Antonov

Despite the war, Ukrainian heavy hauler Negabarit Service has invested more than €12 million in new equipment.

Credit: Negabarit Service

Notwithstanding the war, Negabarit is busy and has continued to invest in equipment. Established in 2002, the family firm has more than 150 trucks and more than 180 trailers in its fleet.

“Our company is involved in the delivery of construction equipment and energy equipment for infrastructure facilities,” Kozel explains. “We deliver a lot of different vehicles, including buses, trams, trolleybuses, trucks for cities, especially in frontline areas.

“Despite the difficult times and the war, several factories were also built in Ukraine, so we are involved in the transportation of equipment from the ports of Romania, Poland, Germany, and Belgium. Of course, we also transport a lot of humanitarian

equipment to support cities and towns with critical infrastructure.”

Like many Ukrainian companies, Negabarit has been affected by personnel shortages. “Many workers went to war from the beginning of the invasion, including our logistics manager Ivan Trofimuk, who participated in the Breakbulk exhibition in 2021 in Bremen, as well as many drivers and other workers,” the company director says.

“Of course, it affects our work when professional people leave us for a while, but we encourage and support these people in every way. The risk that some of our employees will join the army is always present, but we are quite positive about it and are ready to adapt to such conditions.

Despite all the risks, our company invested more than 12 million euros in new equipment during the war.”

Turning to future opportunities, when the war finally ends, Kozel says: “As everyone knows, our country did not have high-quality road infrastructure or bridges to begin with, so this will require significant updating. We should also not forget about green energy – we have a large country, so this is a promising direction.

“Even during the war, Ukraine was able to survive without Russian gas and oil and significantly develop the extraction of its minerals, therefore this market is also quite promising.”

*Exhibitor at Breakbulk Europe Register at: europe.breakbulk.com

AND REWARDS

Acommitment to crew training, maintenance and technology, standardizing where possible and following insurers’ bestpractice safety advice are among key recommendations to reducing breakbulk shipping sector risk in an environment of ever-rising insurance premiums.

The industry by its very nature of being predicated on non-standardized cargoes comes with higher, inherent risks than other modes. This is evidenced by Captain Rahul Khanna, global head of Allianz Commercial Marine Risk Consulting, who observed there were 311 breakbulk/general cargo vessel losses in the past decade – “the highest in all categories [of ships].”

“The second category is fishing vessels with 117 ships lost in the same period,” he said. “In my experience, standards of safety on breakbulk ships do not match up to other specialized

segments like tankers. Having said that, within this segment there are ships like the heavy-lift vessels which perform a lot better and appear to have better safety standards.”

Khanna believed investment in crew training is the most effective measure to mitigate risks in the sector. “Welltrained crew can be the best defense against incidents and accidents. Machinery damage/breakdown is the top cause out of the 3,032 incidents recorded in 2022, hence having a robust, planned maintenance program is key to avoiding these incidents.”

Too often, he said, maintenance budgets are squeezed during a downturn in freight rates, while a large number of cargo damage

Captain Rahul Khanna

Region: Global

Problem: General cargo vessels post the highest losses of any ship category

Solution: Crew training and technology could help bring down the number of incidents

claims from breakbulk ships are the result of not following best practice in cargo stowage and securing.

“Today, technology can greatly assist in cost-effective implementation of the above recommendations and ship operators should consider investing in proven tech to mitigate risks from the bridge to the engine room,” he said.

To help guide such endeavors, Allianz regularly publishes risk bulletins and white papers on emerging and trending risks to share knowledge and experience with shipowners and operators.

“Some of these are applicable to all segments of shipping but some are targeted at breakbulk shipping. P&I clubs are also very active in providing advisory information to shipping. It is rather difficult to measure the uptake of such advice, but during client visits we often pass on such material and discuss the benefits of following through.”

Odd Shapes and Sizes

The absence of standardization in breakbulk transportation has “always posed security challenges,” according to AXA Australia Head of Marine Tom Hughes.

“Breakbulk cargoes typically include items that cannot fit into standard-sized containers due to their size, weight, or nature, such as heavy machinery, large construction equipment and oversized items,” he said. “Often exposed to the elements, there is the heightened risk of these goods being lost, stolen or damaged during transit due to contact with other packages. The lack of uniform storage conditions also makes breakbulk transportation less secure than containerized shipping methods.”

Additionally, human error adds to the challenges of breakbulk transportation. “Although it may not require a crane for unloading, it often involves a great deal of manual labor. Consequently, the unloading process at a port can incur higher costs, adding another aspect for our insureds to consider when tallying their final shipping expenses.”

Hughes noted that with the loading and unloading of breakbulk cargo typically falling under the responsibility of ports and largely being a mechanized process, the main challenge is managing the heightened resource requirement at terminals.

“This method tends to need more dock space, given that multiple vessels may transport diverse loads of breakbulk cargo,” he said.

“Some argue that the absence of standardization in the breakbulk sector has impeded the widespread adoption of sustainable practices. Nevertheless, there is a noticeable shift towards collaborative initiatives aimed at establishing universal standards and best practices as all stakeholders strive for a greener future.”

In response to an increasing demand for sustainability, breakbulk shipping is evolving, with shipping companies actively exploring greener technologies such as alternative fuels and more energy-efficient vessels. Efforts are also underway to minimize carbon emissions, cut down on waste and promote eco-friendly practices within the industry, he added.

Non-critical Concern

While predicting the breakbulk shipping sector is poised for substantial growth to support various projects globally, given the anticipated expansion in the renewable energy sector, Hughes issued a note of caution.

“The transportation of critical items such as generators, wind turbines, solar panels and other renewable energy equipment present unique opportunities for breakbulk shipping companies. However, there is a growing concern about the complacency in shipping what could be termed as non-critical project cargoes. Unlike critical items, these may not expose the project to significant financial losses if their timely delivery is delayed, as replacement items or parts are typically more readily available.”

In recent years the sector has seen widespread parts shortages, port congestion challenges and inadequate supply chain management. “Additionally, these non-critical items can still be of high value, oversized or sensitive in nature, demanding the right level of care and attention to ensure they reach their destination in good condition,” he said.

AXA Marine Senior Risk Consultant Jarek Klimczak said that, despite the conservative nature of the shipping industry and “old-fashioned maritime laws,” external factors and technology are driving positive changes in breakbulk transportation.

These include:

• Supply chain traceability gaining importance and addressing concerns about product safety, sustainability and ethical sourcing. “Regulatory obligations require companies to conduct due diligence on their supply chains, identifying and addressing human rights and environmental risks,” he said.

• Increasing technology integration in breakbulk operations, including the adoption of real-time visibility sensors. “This enables better route planning based on forecasted weather and port congestions, and understating asset aggregation in areas prone to natural disasters.”

Tom Hughes

Credit: Shutterstock

FASTER TIMES TO MARKET

New Zealand insurers rarely become involved with international shipowners’ liability policies, which are “written almost exclusively outside” of New Zealand, observed one local insurer.

“Regarding accidents on foreignflagged ships in New Zealand ports, New Zealand is considered an outlier compared to the civil and criminal laws that apply in ports overseas,” said the contact, who requested not to be named.

“New Zealand has an Accident Compensation Corporation (ACC) which is the Crown entity responsible for administering the country’s no-fault accidental injury compensation scheme.

“New Zealand is a signatory to the Limitation of Liability for Maritime Claims (LLMC 1996) Convention and its protocols, so if ACC did not apply then the shipowner could try to limit their liability based on the ships’ capacity (gross tonnage), as would happen in any other signatory country.”

The insurer noted that in New

• Increasing data analytics.

“Although still slowly employed in breakbulk, using historical data to identify risks and optimize operations improves efficiency and safety.”

• Operators in breakbulk shipping focusing on improving packaging and handling techniques for heavy or oversized items, “minimizing the risk of damage during loading, unloading and transportation.”

Zealand, chartered breakbulk has historically provided much faster transit times to market, “which is a primary consideration for perishable cargo.”

“The great attraction of refrigerated breakbulk for New Zealand cargo shippers is that charters can go directly to market, and unload on specialized wharves with adjacent cool storage for immediate inland distribution.

“However, breakbulk does also present some issues for cargo insurers. For example, while the chartered refrigerated vessels are smaller than containerships, there is greater concentration of financial value when the entire load belongs to one or two exporters.”

Additionally, there are not a lot of refrigerated ships available for charter for New Zealand breakbulk export cargo. “Those which are, are old and the number of issues that can affect the refrigeration are increasing; new ones are expensive and complex to build.”

Plethora of Advice

Klimczak believed the marine insurance sector is “uniquely positioned” to offer comprehensive advice.

“With access to historical claims data, insurers can conduct thorough risk assessments. They can identify patterns and trends related to specific types of incidents, helping them understand and quantify risks

associated with different aspects of the marine industry,” he said.

By analyzing past claims data, insurers can develop effective lossprevention strategies and can provide clients with recommendations on how to minimize the likelihood of events occurring, thereby reducing the overall frequency and severity of claims.

Skuld (Far East) master mariner/ technical manager Captain Jia Hong Liu, describing breakbulk shipping as “by far the most important form of maritime transport in the world,” said that the industry can reduce risks by maintaining high standards of ship and terminal management. To this end, he praised P&I clubs for the regular advice they provide to help guide safety practices in the industry.

As to whether some breakbulk carriers might be underinsuring to reduce costs in the current market environment, Liu said possibly, noting that it usually happens with hull insurance for ships.

AXA’s Hughes added that, exacerbated by rising inflation, underinsurance is an issue that insurers will be “tracking closely over the coming months and years.”

“The unique cargo handling requirements associated with breakbulk shipping have certainly raised costs, however, it is difficult to determine the extent to which this may have led to underinsurance in the marine industry,” he said.

“Ultimately, we don’t want to see a trend in rising claims severity where high-valued cargoes have been significantly underinsured. Similarly, there should be consideration for regularly reviewing policy limits, particularly multi-year project insurance policies, which may need to be adjusted to reflect rising insured values.”

Iain MacIntyre is a New Zealand-based, awardwinning journalist, with lengthy experience writing in the global shipping scene.

By Thomas Timlen

JAPAN: A MARKET POISED FOR GROWTH

Offshore Wind and LNG Projects Driving Demand for Heavy-Lift Shipping

Factors including wage growth, consumer spending and a weak yen are, in the second half of 2024, expected to deliver GDP growth for Japan - an increasingly attractive market for those providing heavylift and project cargo transportation services.

In February, Swire Shipping returned to Japan - a market Swire first served as long ago as 1867 - with a new branch office in Tokyo. The carrier cited the “vast potential of the Japanese market” and said it was integrating its Westwood brand to create “a unified front for its services in Japan, North America, South Korea and China.” Swire provides specialist shipping services to the global project logistics market under its Swire Projects banner, providing customer solutions

for project, heavy-lift, refrigerated, breakbulk and mini bulk cargoes.

“In Japan, there is significant demand for heavy-lift and project cargo transportation services in various sectors,” Peter Roland, BBC Chartering’s managing director in Japan, told Breakbulk. “One notable area is the renewable energy sector, particularly with the construction of wind farms and solar power plants. These projects often require the transportation of large wind turbine components, such as blades, towers, and nacelles, as well as solar panels and related equipment.

“Additionally, infrastructure projects such as bridge construction, building renovations, and industrial plant expansions also require the movement of heavy machinery, steel structures, and oversized components.”

Roland is not alone in pointing towards renewables. “In order to ensure energy security, reduce greenhouse gas emissions and combat climate change, onshore and small-scale offshore wind power projects are being

Peter Roland

developed, and there is a growing demand for heavy-lift and project cargo transportation services to import equipment such as turbines, blades, and towers for these projects,” said Masahiko Uchiyama, JSI Alliance’s managing director for Japan.

“Due to the demand for wind powerrelated equipment, the number of our ships calling at Japanese ports for imports has exceeded the number of exports in recent years. This trend is likely to continue for the time being as the Japanese government strives to achieve its greenhouse gas reduction target of a 46% reduction by fiscal year 2030 compared to fiscal year 2013.”

Existing government programs appear to be buttressing the demand generated by the energy sector, as Marc Willim, AAL Shipping’s global head of chartering, explained to Breakbulk. “While the Japanese market has been quiet on the export side, import projects have been steady. Almost all import projects have been wind energy-related.

“As part of the Japanese government’s 6th Strategic Energy Plan, approved in October 2021, it aims to increase the share of renewables in its energy mix to 36 to 38% by 2030, up from 20% in 2021. Wind power currently accounts for around 1% of the energy mix and will therefore need to be scaled up, both onshore and offshore, providing significant opportunity for related cargoes.”

Government’s Ambitious Target

Uchiyama pointed to the Japanese government’s ambitious target of introducing 45GW of offshore wind power by 2040. “This will create a huge demand for heavy-lift and project cargo services to transport the foundations, turbines, etc. for Japan’s offshore wind power projects.”

Another driver for project cargo transportation demand is further expansion in the LNG sector, which has been impacted by conflicts far from Japan. “We also see high demand from LNG projects,” says Uchiyama. “There was already steady demand but further demand has been generated by strengthening energy security and managing geopolitical risks in the wake of the Russia-Ukraine conflict.

“Although there are uncertainties such as the U.S. presidential election, demand for energy remains strong and, as a result, demand for heavy-lift and project cargo transportation services for new projects is also expected to remain high for coming years.”

In turn, related regional developments can draw in Japanese know-how as Yuko Kimura, AAL Shipping Japan’s managing director, explains. “There are several projects in the pipeline that will call on Japan’s expertise, including power plants in Southeast and North Asia, as well as LNG plant and hydrogen projects in Oceania. These types of projects will

require heavy modules, gas turbines, stators, and pipe racks, which will all require expert premium heavylift handling and transportation.”

There are pros and cons regarding the strength of a national currency.

A Deloitte report pointed out that the silver lining of a weak yen is the strength it provides to Japan’s international trade position. This has helped with some exports, with related growth seen across several goods categories. Transportation equipment has been the largest source of export strength, with exports up 20.1% from a year ago in February. Yet, as Willim pointed out, for the heavylift and project cargo sector, there is still more business with imports.

Roland shares these sentiments.

“The nature of Japanese exports in transportation equipment often includes large-scale machinery, automotive components, and electrical machinery. While some of these exports may require heavy-lift and project cargo transportation services, the majority are likely transported using standard shipping methods.

“However, as Japan continues to innovate in technology and manufacturing, there may be an increase in the export of specialized equipment that necessitates the use of heavy-lift and project cargo transportation.”

Uchiyama notes similar imbalances. “Unfortunately, the recent number of heavy units which are exporting from Japan are much less compared to the past. I sincerely hope that the weak yen and unchanging technical capabilities bring manufacturing back to Japan, as this will contribute towards to the transmission of technology by the manufacturer as well as maintaining high technical capabilities of port workers.”

Unique Inventory

He recognizes that Japan has its own unique inventory of heavy-lift and project cargo transportation assets,

Marc Willim Yuko Kimura

and remains hopeful. “With over sixty versatile heavy-lift vessels and semisubmersible deck carriers as well as advanced engineering capabilities, at JSI we are confident that we can contribute towards further boosting project transportation in Japan.”

Meanwhile, Willim sees some potential for opportunities with imports. “In general, the Japanese market has been quite slow for project and heavy-lift cargoes in recent years. Exports have been down and instead we see Japan buying and shipping from markets like South Korea, China and Vietnam. Under this guise, we have seen some involvement in projects in the U.S., shipping from other locations also in Southeast Asia for instance.”

Beyond the energy sector, Japan continues to pursue a variety of infrastructure projects. According to GlobalData’s construction projects database, the five largest construction projects initiated in Japan during Q1 2024 were the Toranomon 1-Chome East District Urban Redevelopment; the Kikuchi Power Semiconductor Manufacturing Facility; the ACC-1 Cable System; the AirTrunk OSK1 Data Center; and the Dogenzaka 2-Chome South District Type One Urban Redevelopment. But how much demand is generated by these initiatives?

“Typically, these kinds of infrastructure projects are served domestically,” says Willim. “Japan has the capability of manufacturing and supplying a large portion of materials and equipment for these projects with almost no import cargo requirements, and so the need for premium heavy transport vessels to support those developments is somewhat limited.”

Adds Kimura: “Within that limited import scope, these construction projects may require steel from China to be shipped to Japan. However, to date, most of these cargoes have been carried by smaller Chinese or Japanese vessels.”

BBC’s Roland holds a similar view. “The construction projects listed will

likely generate an increase in demand for project cargo transportation services. However, they are not specifically on our watch list. For instance, the Kikuchi Power Semiconductor Manufacturing Facility project would involve transporting large machinery and equipment for semiconductor production. Our company has been involved in such projects, providing logistics support for the transportation of oversized equipment and components using specialized trailers, cranes and handling equipment.”

Deloitte’s analysts expect that the yen will likely strengthen later this year if the U.S. central bank fully adopts a softer approach as expected, but it is unlikely to snap back to its pre-pandemic value any time soon. This should prevent international trade from turning into much of a headwind this year.

Forward-looking optimism is shared by Roland. “As the country transitions towards cleaner energy sources, there will be a growing need to transport oversized components for wind, solar, and hydrogen energy projects. Additionally, advancements in technology and manufacturing may lead to the export of more specialized

equipment, further driving demand for project cargo transportation services.”

“Looking ahead, upcoming infrastructure projects such as high-speed rail expansions, port developments, and urban redevelopment initiatives are expected to sustain or enhance demand for heavy-lift and project cargo transportation services in Japan,” he adds. “Additionally, projects related to the decommissioning of nuclear power plants and the construction of new energy facilities, such as hydrogen production plants, are also likely to require specialized transportation solutions.”

In view of Japan’s expansion of offshore wind generation, LNG projects and cautious optimism expressed by industry stakeholders, it appears that there will be a sustained demand for heavy-lift and project cargo transportation services for the remainder of 2024 and well into next year.

Thomas Timlen is a Singapore-based analyst, researcher, writer and spokesperson with 31 years of experience addressing the regulatory and operational issues that impact all sectors of the maritime industry.

AAL Brisbane loading a transformer in Yokohama. Credit: AAL Shipping * Breakbulk Exhibitor

By Ritesh Nair, Rhenus Project Logistics USA

AI AND THE ART OF TRANSPORT ENGINEERING

Technology Is Coming of Age, Says Project Logistics Expert

Developments in robotics have come a long way since Karel Čapek conceived Rossum’s Universal Robot in his 1920 play and flirted with the idea of the artificial worker.

As the father of all thinking robots, “Freddy” would be proud of the outstanding progress his descendants have made since researchers at the AI Department of the University of Edinburgh christened him in the early 1970s.

AI is a tool of human creation which, if managed well, can be of great benefit to humankind.

While AI is still in its infancy, the more it is used, the better it will get. The middle part of the 2020s will be looked back upon as a defining moment in history that changed the way we did things. The field of supply chain, specifically project logistics, is no exception.

The advantages of AI in project logistics are many, but one of the most impactful areas is in the field of product design and transport engineering. Having AI collate data on project site locationroute information, bridges along the route, port capabilities and regional geopolitical news, etc. - can yield not only the optimum route, but also where to manufacture and the best mode of transport to get it to the project site.

Companies have already developed programs to help streamline workflow processes in operations and warehousing, or provide route optimization based on live traffic patterns, or better support inventory management based on order-in-hand and expected seasonal demand.

Aiding Procurement Decisions

Let’s consider a scenario where an engineering, procurement and construction (EPC) contractor is deciding whether to procure from Europe, India or China for a project in the Midwestern United States.

In this case, AI could be instructed to model the risks, pros and cons of purchasing from each area, with parameters set as wide as was deemed necessary. Along with production costs or physical routing issues, considerations could include

potential tariff changes or route closures, weather events, strike and delay, or even the likelihood of negative public attitudes to human rights in the source location.

Such an analysis would go far beyond conventional considerations of choosing which carrier has the most ideal ship or aircraft to carry the shipment.

Bigger organizations can be expected to invest and make proprietary developments to optimize their service offerings and even possibly experiment a tier-based, fee-supported service for AIenabled service or analysis. Small to medium organizations that do not have the capital, or are risk-averse, will depend on SaaS providers for off-the-shelf offerings, which could give them a level playing field with the competition in their space.

Rhenus ’ Automation division is already pioneering Robotic Process Automation (RPA), benefiting clients with increased productivity, reduced costs and better efficiency. Rhenus Automation is taking advantage of generative AI, partnering with IBM. We will expand its use across businesses on need-based situations that align with our overall strategy. We do so based on the conviction that it is only a matter of time before AI becomes an integral part of all business models: industries

Ritesh Nair

will have to learn how to adapt. Those who do not will be left behind.

With AI, Rhenus has the opportunity to be a predictive Logistics Solutions Provider (pLSP) where we can utilize our in-depth analysis of past client requirements and current market trends to help proactively prepare for potential challenges in the predictable future.

Changing Engineering Roles

One thing is for sure, from its code-to-image infancy, AI has already advanced to pre-teenage years of exploring text-to-design concepts. Already happening to an extent, in time, engineers will refine their ability to conceptualize so that AI can generate complete product designs based on data fed to the model, with final tweaking taking place on a review basis.

There will be birth and growing pains. These include risks to privacy – a major concern – and the risk that shared data is vulnerable to cyber attack. Over-reliance on AI could affect the flexibility of a business to cater to its customers, while multi-skilled workers will need to “upskill” continuously to stay relevant. As much as AI will be a tool to assist operations, it will also review performance. AI has also already interviewed and hired a human employee.

The impetus to overcome these challenges appears unstoppable. While AI may not yet be ready to override safety considerations, experiments are underway to use it in areas where margins for error are at issue - such as in quality control, forward planning, demand forecasts, etc.

In the supply chain, parallels

can be drawn with identifying tolerance level to g-forces, for example, where the sum total of various calculations that ensure staying within tolerance limits is considered one key to the “art” of transport engineering. Today, it is a task that AI could easily take over.

In such a scenario, transport engineering jobs would also be likely to take on more of an editorial role - where the final results of AI are tweaked to requirements specific for the product or the project transport. Other job profiles in logistics will also be redefined as AI matures to every-day use.

We have seen just a glimpse of what AI can do.

Ritesh Nair is Vice President of New York Operations - Global Sales Director Projects, Rhenus Project Logistics USA.

*Breakbulk Exhibitor

Credit: Shutterstock

PROJECTS IN THIS ISSUE

Project: Kaskida Deepwater Hub

Story: Global Outlook Introduction, page 26

Country: U.S.

Sector: Oil & Gas

Developer(s): BP

Project: Tiber Oil Project

Story: Global Outlook Introduction, page 26

Country: U.S.

Sector: Oil & Gas

Developer(s): BP

Project: Jafurah Gas Field

Story: Middle East Outlook, page 28

Country: Saudi Arabia

Sector: Oil & Gas

Developer(s): Aramco

Project: Rub Al-Khali Gas Project

Story: Middle East Outlook, page 28

Country: Saudi Arabia

Sector: Oil & Gas

Developer(s): Aramco

Project: Orange Basin Hydrocarbon Province

Story: Middle East Outlook, page 28

Country: Namibia

Sector: Oil & Gas

Developer(s): Various

Project: Rovuma LNG

Story: Middle East Outlook, page 28

Country: Mozambique

Sector: Liquefied Natural Gas (LNG)

Developer(s): Mozambique Rovuma JV

Project: Coral Norte FLNG projects

Story: Middle East Outlook, page 28

Country: Mozambique

Sector: Liquefied Natural Gas (LNG)

Developer(s): TJS Consortium

Project: Helios Green Fuels plant

Story: Middle East Outlook, page 28

Country: Saudi Arabia

Sector: Hydrogen

Developer(s): Neom, Acwa Power, Air Products

Project: Kudu Gas Field

Story: Namibia: Africa’s New Oil and Gas Hotspot, page 60

Country: Namibia

Sector: Oil & Gas

Developer(s): BW Kudu

Project: Orange Basin Hydrocarbon Province

Story: Namibia: Africa’s New Oil and Gas Hotspot, page 60

Country: Namibia

Sector: Oil & Gas

Developer(s): Various

Project: Hyphen Hydrogen Project

Story: Namibia: Africa’s New Oil and Gas Hotspot, page 60

Country: Namibia

Sector: Hydrogen

Developer(s): Hyphen Hydrogen Energy

Project: New Port in Anaklia, Georgia

Story: Middle Corridor Gaining Traction, page 64

Country: Georgia

Sector: Infrastructure

Developer(s): Anaklia Deep Sea Port and Others

Project: Port Expansion in Kuryk and Mersin

Story: Middle Corridor Gaining Traction, page 64

Country: Kazakhstan and Türkiye

Sector: Infrastructure Developer(s): Various

From the best of Breakbulk 2024

Project: LNG Canada Natural Gas Export Terminal

Story: Koichi Kaizu: Master of Modularization, page 97

Country: Canada

Sector: Oil & Gas Developer(s): LNG Canada JV

Project: Gorgon LNG

Story: Koichi Kaizu: Master of Modularization, page 97

Country: Australia

Sector: Oil & Gas Developer(s): Chevron Australia JV

Project name: Mabtec Logistics & Transportation Hub at Antonov Airport, Gostomel

Story: Ukraine: Trade Continues, page 107

Country: Ukraine

Sector: Infrastructure Developer(s): Mabtec Engineering and Consultancy

Project: Toranomon 1-Chome East District Urban Redevelopment

Story: Japan: Market Poised for Growth, page 113

Country: Japan

Sector: Urban Development Developer(s): Sumitomo Realty & Development Co Ltd

Project: Kikuchi Power Semiconductor Manufacturing Facility

Story: Japan: Market Poised for Growth, page 113

Country: Japan

Sector: Manufacturing, Technology Developer(s): Mitsubishi Electric Corp

Project: ACC-1 Cable System

Story: Japan: Market Poised for Growth, page 113

Country: Japan

Sector: Telecommunications Developer(s): Inligo Networks

Project: AirTrunk OSK1 Data Center

Story: Japan: Market Poised for Growth, page 113

Country: Japan

Sector: Technology, Data Centers Developer(s): AirTrunk