Fast Forward 60, autumn 2014

AUTUMN 2014 ISSUE

60

Interview

Jan Westerhoud ULCS

Upgrade Programme

Direct Train

to Austria

Contents

Fast Forward is also available as an app for the iPad and Android tablets.

It can be downloaded in the Apple App Store and Google Play Market.

‘ECT is facing Tremendous Challenges’ More than ever, the container industry is in motion.

ECT President Jan Westerhoud contemplates recent developments and reflects on both the past and the future.

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Direct Rail Connection Rotterdam – Austria

ULCS Upgrade Programme

European Gateway Services has expanded its network to include Austria. Since September this year, companies profit from a direct rail service four times a week.

The ECT Delta Terminal is currently investing heavily in additional capacity for handling the rapidly increasing number and sizes of Ultra Large Container Ships (ULCSs).

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Colophon Fast Forward, a business-to-business publication of ECT, appears three times a year. Please contact our Communications Department with any questions or suggestions you may have regarding the contents.

Copy Rob Schoemaker, Rob Wilken (editor-in-chief) Translation Niall Martin, Dean Harte Photography Eric Bakker (unless stated otherwise) Layout Ontwerpwerk, The Hague External coordination and printing RWP, Voorburg Chief editor ECT Rob Bagchus No rights can be derived from this publication.

P.O. Box 7385, 3000 HJ Rotterdam, The Netherlands T +31 (0) 181 278 278 info@ect.nl | www.ect.nl egsinfo@ect.nl | www.europeangatewayservices.com

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4 News 7 People make the Difference

Tjerk de Waard and Patrick Benningshof.

14 Remote Check-In!

Remote Check-In is a new e-service from ECT, geared to further accelerating the handling of road transport.

16 Watchers of the Container Industry Alan Murphy, COO of SeaIntel Maritime Analysis, explains the current situation in the container industry.

18 Every Container up to the Front Door EGS inland terminal DeCeTe is currently enthusiastically intensifying its efforts to offer companies in Nordrhein-Westfalen an even more distinctive service.

23 Me and My Vessel

Captain Oleg Kovalchuk of the Thalassa Doxa.

24 Behind the Scenes

Together with EWS, EGS is offering a c­ omprehensive range of services for safe gas measurements, reliable gas measurement reports and the sustainable ventilation of containers.

Introduction

150,000,000 Votes of Confidence Starting from our inception in 1967, ECT recently handled its 150 millionth TEU. A striking milestone which we modestly celebrated in early September 2014. 150 million TEU is an almost unimaginable number of containers. Place them back to front and you can go from here to the moon and back with enough to spare to still go around the globe a couple of times.

We are certainly the first terminal operator in Europe to surpass the 150 million TEU mark. Logical: ECT is the founder of container handling in Rotterdam, Europe’s largest port. Starting out with just one crane and one quay in the Eemhaven in 1967, entrepreneurial spirit, dedicated employees and continuous innovation have brought us to the company we are today. With deepsea terminals both directly on the North Sea at the Maasvlakte and in the city area. And through European Gateway Services, we nowadays also organise sustainable and highly efficient hinterland transport.

Both in terms of volumes - especially in the years up to 2008 - and scale. In 2004, 8000-TEU vessels were the true giants of the sea. Now, in 2014, 18,000 TEU is the new standard with even larger vessels already on the horizon. It was as recent as 2006 that we took delivery of eight new quay cranes with a reach of 22 containers wide. With that, we - along with the rest of the world - thought we would be ‘future proof’ for decades to come. How different is the reality. Aboard the current Ultra Large Container Ships (ULCSs) of 18,000 TEU, the containers are already stacked 23 rows wide.

Looking at the figures more closely, one will notice that almost half of those 150 million TEU has been handled in the last ten years. The container industry has received a massive boost in the past decade.

Inherent to our almost 50-year-old company culture of always seeking further improvement, we are of course anticipating the ongoing increase in scale.

New ULCS cranes with a reach of 24 containers and other new equipment have now been integrated in our operations at the south side of the ECT Delta Terminal and more ULCS cranes have been ordered for delivery in the second half of 2015. Thus, we are ensuring that we remain as attractive and competitive as possible for our customers.

‘INHERENT TO OUR ALMOST 50-YEAR-OLD COMPANY CULTURE WE ARE ALWAYS SEEKING F­ URTHER IMPROVEMENT’

After all, more than anything else, we owe those 150 million TEU to you, our customers. You have given us your confidence from the very first container and you are the reason why we continuously strive to improve our service and performance. This does not always follow a straight line though: ups and downs are as much a part of the container industry as they are of real life. The bottom line however is that ECT, along with you, always emerges stronger.

The milestone of our first 150 million TEU serves as proof of the past; the next 150 million TEU will prove the same in the future.

Jan Westerhoud President of ECT 3

E-GATE APP EVEN EASIER TO USE The E-Gate App of European Gateway Services will become even easier to use.

From now on, it will also be possible to receive push messages.

By selecting this option, users will automatically receive an alert when something changes. This is possible for four different types of messages: - Status messages about the actual time of discharging of a container, both at the three deepsea terminals of ECT in Rotterdam and the EGS inland terminals TCT Venlo, DeCeTe Duisburg, TCT Belgium and MCT Moerdijk; - Actual Times of Arrival (ATA’s) of deepsea vessels, feeders, trains and barges at the three deepsea terminals of ECT in Rotterdam; - Service notifications related to operational deepsea terminal events; - News about European Gateway Services.

By default, you can switch push messages for news and service notifications on or off. ATA and container status push messages need to be set for each event.

Receiving push messages is free-of-charge for ATA’s, service notifications and news. A container status push message costs € 0.80.

No E-Gate App on your mobile phone yet?

Download it now for free in the Apple App Store or Google Play Market.

LAST TRAFFIC LIGHT TO GERMANY ELIMINATED Until recently, the only traffic light on the route between Rotterdam and Germany was at the intersection right outside the ECT Delta Terminal.

The commissioning of the Coloradoviaduct overpass in October 2014 however has made this traffic light redundant. From now on, hauliers can continue driving from the ECT Delta Terminal without encountering any traffic lights. The construction of the Coloradoviaduct took more than two years and required an investment of more than € 30 million.

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Increasingly Wider Use ShoreTension ShoreTension is seeing an increasingly wider use across the globe. Over the next two years, six units of the dynamic mooring system will for example be used near Barrow Island, Western Australia, to securely keep the Silja Europe in its place.

Here, this cruise ferry will function as a floating hotel for employees of the giant Gorgon LNG project.

In Rotterdam, the Port Authority has in the meantime extended its financial support for use of the ShoreTension mooring system.

Terminal operators in Rotterdam which decide to purchase the system before the 1st of April 2015 qualify for a discount of up to ten percent.

The ShoreTension is an invention of the Royal Boatmen’s Association Eendracht, the boatmen of the Rotterdam port.

The mooring system is globally exploited by ShoreTension Holding in which ECT is a 50-percent shareholder.

News During its visit to the ECT Delta Terminal at the end of October 2014, the Thalassa Pistis unloaded 5341 containers and loaded 5216 ones.

NEW CALL SIZE RECORD: 10,557 CONTAINERS!

Combined, these 10,557 containers signified a new call size record for both ECT and the port of Rotterdam in general. Handling took place with a berth productivity of over 150 containers per hour. The Thalassa Pistis sails for Evergreen Line; with a capacity of 13,806 TEU, a length of 368 meters and a width of 51 meters, the ship classifies as an Ultra Large Container Ship (ULCS). The previous call size record at the ECT Delta Terminal 6750 containers - was established in late 2013 by the Thalassa Hellas, a sister ship of the Thalassa Pistis.

EGS OFFERS DEGASSING THROUGHOUT THE NETWORK In collaboration with specialist Eco Worldwide Services (EWS), European Gateway Services (EGS) now also offers a comprehensive range of services for gas measurements, gas measurement reports and the sustainable ventilation of containers (also see article on back page). EWS is able to quickly and professionally perform these services throughout the entire EGS network. Next, EGS delivers each treated container up to the customer’s front door at the agreed-upon time.

More information: www.europeangatewayservices.com.

New Edition Fast Forward App You can also read Fast Forward No. 60 on your tablet.

The Fast Forward app can now be downloaded free-of-charge from the Apple App Store and Google Play Market.

In addition to the regular content of the paper edition, the app version among other things contains short video impressions of the ULCS upgrade programme at the ECT Delta Terminal, the deployment of terminal tractors for pre-transport and post-transport at the EGS inland terminal DeCeTe in Duisburg and the 13,806-TEU Thalassa Doxa which recently made its maiden call to ECT.

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News

D-I-Y IN DUISBURG

First LNGpowered push barge 足combination in EGS network Three inland terminals in the European Gateway Services network are part of the sailing schedule of the Eiger-Norwand, the first LNG-powered container push barge combination in the world.

EGS inland terminal DeCeTe now offers do-it-yourself desks for all its visiting hauliers. Drivers who deliver or collect containers in Duisburg can arrange the formalities themselves at one

of the four D-I-Y desks which are available around the clock at the pre-gate area. Thus, drivers are assured of a constant service provision and a smooth turn足 around at the terminal itself.

DeCeTe is the only inland terminal in the entire Rhine-Ruhr area to offer drivers these kinds of D-I-Y desks.

OOC INLAND TERMINAL TO BECOME EXTENDED GATE Osse Overslag Centrale (OOC) will become an integral part of the EGS network. The inland terminal in the east of the Netherlands will consequently function as an extended gate. This means that containers can be immediately transported onward to OOC aboard one the scheduled barge connections after they have been discharged from the deepsea vessel in Rotterdam. This takes place under the customs license - and therefore responsibility - of European Gateway Services.

For the customer, it is not necessary to deal with customs formalities until the containers leave the OOC inland terminal again.

On the route between Rotterdam and Basel, the ship of Danser Container Line calls at respectively the Container Terminal Strasbourg - Nord, the Container Terminal Strasbourg Sud and the Swissterminal in Basle. The push barge combination which has been converted to LNG makes inland shipping even cleaner than it already is. Compared with traditional propulsion, CO2 emissions are decreased by 20 percent, nitrogen oxides by 85 percent and particulate matter by 99 percent.

More information: www.dansercontainerline.com

EGS OFFICE IN DUISBURG The continuously expanding service provision of European Gateway Services (EGS) in the German-speaking countries now also includes local sales support. German customers can turn to Laura Kortmann and Sabrina Thielmann of the EGS office at DeCeTe in Duisburg with all their questions and bookings, T + 49 (0)203 8090 6200, E order@decete.de.

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ECT’s staff have been meeting the needs ­ of customers for more than 45 years now.

In this series they reveal their drive.

People make the Difference

Since May 2014 the entire ECT Delta Terminal is managed from a single location situated at the terminal’s centre.

All the planning and control activities for the operations at the ECT Delta Dedicated North Terminal, ECT Delta Dedicated East Terminal, ECT Delta Dedicated West Terminal and Delta Barge Feeder Terminal, as well as the Coordination Centre ECT and landside operations have been incorporated into a new department with shorter chains of command, increased flexibility and more efficient data flows.

WORKING AS A TEAM WITH SHIPPING LINE AND CRANE DRIVER “I plan the location of all the containers to be loaded on board of the deepsea vessels. I therefore maintain direct contact with the central planners from the various deepsea shipping lines. They oversee all the European ports a ship calls at. I always try to see things from their point of view. Where on the ship would they most likely have their containers placed?

The aim is of course to fulfil their wishes wherever possible. At the same time I try to think about what the crane driver needs, and what will enable him to work with maximum efficiency. That’s in the customer’s interests too!”

TJERK DE WAARD (44) DEEPSEA PLANNING

ACTING PROACTIVELY “I’m involved in both the deepsea planning and the coordination of the automatic processes on the quay.

That might mean adjusting the operating radius of the Automated Guided Vehicles (AGVs), for example, or giving higher priority to a particular crane to increase AGV supply. You can achieve a lot by acting proactively. The trick is to keep operations running at optimum levels at all times. Of course that’s only possible through close consultations with my colleagues, who in turn liaise with the customer. As a team we help one another; that way we’re able to achieve consistently better results on the quayside.”

PATRICK BENNINGSHOF (40) DEEPSEA PLANNING AND SEA SIDE COORDINATION

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More than ever, the container industry is in motion. This is true on a global scale, at the European level and definitely also in Rotterdam.

ECT President Jan Westerhoud contemplates recent develop­ ments and reflects on both the past and the future. “ECT is facing tremendous challenges.”

Interview Jan Westerhoud

‘ECT is facing Tremendous Challenges’ 8

“Our investments in additional capacity for handling ULCSs are starting to pay off.”

What is the current state of affairs at the ECT terminals?

“Especially at the ECT Delta Terminal, we are clearly noticing (early October 2014, ed.) that our investments in additional capacity for handling Ultra Large Container Ships (ULCSs) are starting to pay off. With four ULCS berths at present at the ECT Delta Terminal, we are well-equipped to accommodate the rapid scaling-up in the industry. We aim to further increase the berth productivity for the future and are on the right track. One of the big questions for 2015 and beyond of course is how the European economy will develop. Economists are highly divided on this: some expect the European economy to continue hovering around the zero mark for years to come, others already see growth on the horizon. No one knows the right answer, but the pessimists slightly seem to have the upper hand. Just recently, the International Monetary Fund stated Europe needed to be careful to avoid slipping back into recession in 2015.”

This past summer was less optimal for ECT. Service and performance failed to meet market expectations.

What was going on?

“Fully gearing the ECT Delta Terminal to handle the rapidly increasing number of ULCSs and corresponding larger call sizes from one day to the next is simply impossible.

We already started preparing a comprehensive range of measures for this well in advance: this among other things involved organisational, technical and IT-related adjustments as well as major investments in equipment (see additional feature on pages 20 - 22, ed.). We were planning on implementing this entire package in the summer; a period which experts predicted would be quieter in terms of volumes. But the actual situation proved very different.

‘ECT is a 24/7 company which handles more than 95,000 containers a week’ 9

“ECT will continue to invest in its terminals and the handling of all modes of transport.”

After a modest spring, the throughput actually increased in the summer. Next, commissioning and integrating the new equipment turned out to be more time-consuming.

Bear in mind that we are not developing a greenfield terminal here. ECT is a 24/7 company which handles more than 95,000 containers a week. Bringing into use and correctly positioning five new ULCS cranes within this existing operation proved quite challenging. On top of that came the other adjustments as well as the fact that many of our customers’ ships exceeded their windows due to various external factors. All this combined put tremendous pressure on our available handling capacity for deepsea vessels as well as feeders and barges. Of course, some things also simply went wrong on our side. Murphy’s law was clearly in effect.”

‘Since the end of August 2014, our operations have been back to normal’

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How did ECT overcome this situation?

“Many people in our organisation worked day and night to find solutions. Following close consultation, our neighbour Kramer also assisted, especially to handle the peaks in barge handling. Since the end of August 2014, our operations have been back to normal. The manner in which we have dealt with last summer’s problems furthermore also strengthens my conviction that we will now be able to achieve a next step in berth productivity as well. And truth be told, we simply have to. In 2015 and 2016, many more, even larger ULCSs will be launched. In addition, we can soon expect two new container terminals at Maasvlakte 2 (Rotterdam’s port expansion scheme, ed.) to come on stream.”

About this Maasvlakte 2: in September, the court dismissed ECT’s claim in the lawsuit which it had filed against the Port of Rotterdam Authority...

“We are extremely disappointed in this court ruling. After years of calling attention to this issue in vain, we started the judicial process in 2011 as a last resort. The world has changed since the crisis in 2008, but Rotterdam simply continued with the construction of new terminal capacity at Maasvlakte 2 as if nothing had happened. Let’s be clear:

Safety is ECT’s top priority. Jan Westerhoud wants to ensure that all operations at the ECT terminals are carried out as safely as ­possible. To this end, the ECT President r­ egularly joins safety inspections to see p ­ ersonally which safety issues are relevant in daily practice.

ECT does not oppose Maasvlakte 2 and the arrival of new container terminals whatsoever. What we do object to though is the pace at which these terminals will be commissioned.

And how the interests of an existing company such as ECT and the people who have often already been working in the port for more than thirty years are dealt with. It was always stated that the new container terminals would need to attract new cargo and not cannibalise existing terminals.

But the latter is exactly what will happen. As a result, Rotterdam is on the verge of massive overcapacity. Because where would Rotterdam find that new cargo right now?

The market is only showing minimal growth. That the court has dismissed almost all of our claims is therefore hard to digest. ECT has made huge investments - more than 1.5 billion euros in total - in the port. The balance between long-term interests and the current interests of the established players in the port is completely absent. Realise this: even if the judge had ruled in our favour - and had awarded us the requested compensation - then this would not have changed Rotterdam’s current situation that much.

Damage will still be caused. The simultaneous commissioning of two container terminals at Maasvlakte 2 will add capacity for non-existent cargo.”

if ECT could make preparations in a responsible manner.

A gradual shift of cargo is best for all parties. Like no other, we also know just how fragile and complex new terminal processes can be. You can test as often and as intensively as you like, but real-life operations involving substantial volumes simply cannot be simulated. A cargo shift of this kind can therefore only be achieved following close consultation. Not just with us, but with all parties involved.

It pre-eminently seems to me a task of the Port of Rotterdam Authority in its capacity of port landlord to take the lead in this; both in view of the competitive position of the port and employment.”

What can your customers expect from you in the meantime?

“ECT will continue to invest in its terminals and the handling of all modes of transport. On the seaside, we will for example take delivery of three extra ULCS cranes at the ECT Delta Terminal in the second quarter of 2015. These are all building blocks to meet the requirements of our customers for increased berth productivity. The same of course holds true for our other deepsea terminals.”

And on the landside?

How is ECT preparing for this new situation?

“Of course, first and foremost by offering the market - our customers - a reliable, consistent service, 24/7 and 365 days a year. For almost fifty years now, we have already been combining knowledge, experience and flexibility with continuous innovation. We will definitely continue down this road. In addition, it is unfortunately also the case that at least some our customers will shift cargo to Maasvlakte 2. At this moment no information is available as to exactly when this will occur and at what pace. The new container terminals were initially set to open in 2013. This was next postponed until 2014 and now to 2015. This poses a real dilemma for ECT. Needless to say that we give each vessel our full dedication. And we need all our staff for this.

But what if one or more shipping lines suddenly decide to relocate? It would be good for the entire port of Rotterdam

“Naturally, we will continue to further develop European Gateway Services. At the end of September 2014, the network was once again expanded. EGS now also offers a direct rail shuttle with Austria four times a week. With the larger call sizes of the deepsea vessels, the importance of a fast and consolidated onward flow of containers to the hinterland will only grow. In cooperation with other parties, EGS can play a major role in that. EGS is clearly valued by the market.

For me, it is absolutely obvious: nobody - and this applies equally to ECT - can continue to conduct its business in the same manner as ten years ago. Hinterland transport too will need to evolve. There is still way too much fragmentation and self-interest in this sector. With all the scaling-up that is occurring on the seaside, the parties on the landside will also need to carefully consider the impact this will have on them.”

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Direct Rail Connection Rotterdam – Austria European Gateway Services (EGS) has expanded its network to include Austria. Since September this year, companies in the regions around Enns, Wels, Linz, Vienna and Graz can profit from a direct rail service to and from Rotterdam four times a week. The new shuttle offers fast and reliable transit times at competitive rates, giving both exporters and importers a serious alternative to transport via the northern German ports.

The new rail connection serves all the major container terminals in Rotterdam - both those at the Maasvlakte by the North Sea and those in the city area. That makes the rail link suitable for both maritime and continental cargoes.

At the other end of the line in Austria, Enns functions as the inland hub twice a week and Wels the other two times.

From these two inland terminals cargo is transported onwards to Linz, Vienna and Graz, both by rail and by road.

Transit times between Rotterdam and Austria and between the northern German ports and Austria are roughly the same.

Export cargo leaving the customer’s gate in Austria on day 1 is guaranteed to have been loaded on the deepsea vessel in Rotterdam on day 3. Travelling in the opposite direction, import cargo leaving the port by rail on day 1 will by day 3 have been delivered to any address in Upper Austria, Lower Austria, Steiermark and Vienna. Says EGS network manager Paul Zoeter: “We’re offering a port-to-door service and vice versa, including pre- and post-transport right up to the front door. That way customers can benefit from a one-stop shop, including temporary storage where needed, arrangement of customs documentation and more. We offer a same kind of service provision for any address in the states of Tirol and Salzburg; those port-to-door services however are an extension of the direct rail link we’re operating between Rotterdam and Munich.”

‘Customers are happy that there’s now a serious alternative’ Attractive Transit Times The Rotterdam-Austria rail shuttle’s short transit times become even more attractive when one factors in the preferred position of Rotterdam as most shipping lines’ first port of call in Europe. While the deepsea vessel is still on its way to Northern Germany, containers have already 12

long been loaded on the train from Rotterdam to Austria.

Of course the same holds true for cargoes bound in the opposite direction. When Rotterdam is the shipping line’s last European port of call, export cargo from Austria can be put on a later train and yet still make the connection with the deepsea vessel before it sets sail for a different continent.

Tax Advantages The route via Rotterdam also brings Austrian companies tax advantages. Importing into the European Union via the Netherlands means that value added tax (VAT) need only be paid once the end-user takes delivery of the goods.

Given the enormous sums of money often involved in

Four Times a Week in Both Directions The Rotterdam-Austria rail shuttle operates four times a week in both directions.

Rotterdam departures: Monday, Tuesday, Thursday, Friday Austrian departures: Tuesday, Wednesday, Friday, Saturday

Easy to book Containers can be booked onto the Rotterdam-Austria rail shuttle by various means.

container shipments, the Dutch way has a significantly positive effect on a company’s cash flow, particularly for the larger importers.

Local Presence To make the Rotterdam-Austria rail shuttle a success, European Gateway Services is working together with several parties. TX Logistik and Rail Cargo Austria provide the traction for the train, while well-known Roland Spedition acts as the agent for EGS in Austria. Austrian companies can thus book their containers locally. Roland Spedition also takes care of the customs formalities and in addition provides all the necessary pre- and post-transport for the customer throughout Austria.

Competitive Alternative to Northern Germany “It’s the first fast rail connection between Austria and Rotterdam,” enthuses Christian Gutjahr of Roland Spedition about the new shuttle. “Transit times have become far more attractive. It’s definitely a product that can compete with the northern German ports. That gives both us and our customers increased flexibility – there’s now a real choice

Via the Central Booking Desk of European Gateway Services: Telephone: +31 (0)181 27 8308 E-mail: egsplanning@ect.nl Via Roland Spedition in Austria: Telephone: +43 (1)728 3743 E-mail: office@rolsped.com

‘We’re offering a port-to-door service’ on offer.” The forwarder sees opportunities for both importers and exporters. Even though the new rail service has only been operating a short time, there’s already a lively market interest. “We’re actively promoting the rail shuttle in Austria and we can see from the bookings that companies are clearly open to trying this new connection. They are happy that there’s now a serious alternative on offer.”

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Remote Check-In! As a road transport company, being able to send all essential information from the office to the ECT Maasvlakte terminals in advance, so that truck drivers needn’t first report to the administration building when they arrive...

Soon that will be reality, thanks to Remote Check-In. Five companies are participating in a pilot set to start at the ECT Delta Terminal in January 2015.

Remote Check-In is a new e-service from ECT, geared to further accelerating the handling of road transport, initially at the ECT Delta Terminal. After the road haulier’s planner first has pre-notified the arrival of a truck driver and the container(s) via Portbase - Rotterdam’s Port Community System - he can then simply go on to further put together the truck’s visit to the terminal via ECT’s Remote Check-In service. The planner only needs to fill in a few details.

Upon arrival at the Maasvlakte, truck drivers can then proceed directly on to the terminal, without first reporting to the administration building to complete formalities.

Green Flow and Red Flow “Remote Check-In will lead to the creation of a green and a red traffic flow at the ECT terminals,” explain project leader Edwin Fokker and Jan Molenaar, Operations Manager Gate and Administration Desk. “The green flow will comprise trucks that have been pre-notified 100 percent correctly and with all their data complete, including the details of

the containers they are coming to deliver and fetch. Those drivers can drive straight onto the terminal when they arrive.

The red flow are containers where some things still need to be done; those drivers will have to first report to the administration building at the pre-gate area. There they can use one of the Do-It-Yourself desks or, if there’s a problem, seek assistance from one of the desk clerks. Obviously that’s going to take more time. However, we will continue to offer this flexibility.”

Fokker and Molenaar believe that Remote Check-In will significantly speed up trucking visits to the ECT Delta Terminal. “We’ll be measuring exactly how much time can be saved during the pilot, but advance estimates indicate that the pre-gate area stay per visit can easily be cut by around ten minutes. Thanks to all the advance information we can also boost efficiency in the stack. That in turn has a positive impact on the truck driver’s trip across the terminal itself.”

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Green Flow ECT Delta Terminal 1

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1 Identification with Cargo Card, hand scan and RCI number + licence plate registration 2 Automatic inspection gate 3 Gate-in: documents and printing of route plan 4 Administration building

Participants in the Pilot Five road transport companies will be taking part in the Remote Check-In pilot at the ECT Delta Terminal. All five have participated in a working group to give input on the scheme. The five participants in the pilot: • HEBRA GTO • De Jong – Grauss Transport • Van der Most Transport • Overbeek Transport • H.N. Post en Zonen Also represented in the working group was the Alliantie Zeecontainervervoerders (Sea Container Transport Alliance).

Security First Remote Check-In can only be used in conjunction with stringent security measures, ECT realised from the start.

Access to the e-service is therefore only available to road transport companies having the correct authorisation.

To subsequently fetch or deliver a container, the licence plate of the truck must have been submitted in advance and the driver must identify himself on arrival at the entrance of the terminal by means of his personal Cargo Card and hand scan. At the same screen he will then be required to key in the RCI number issued to the road transport company during Remote Check-In. If everything is found to be in order at the entrance, then the truck driver can drive straight on towards the terminal.

It’s only at peak times that he might still occasionally be obliged to wait briefly at the pre-gate area. Most times however the remotely checked-in driver will be able to drive through the automatic inspection gate directly to the gate-in.

There he will automatically receive a print-out of the route plan for his roundtrip on the terminal. After that the driver can proceed onto the landside interchange points to discharge and/or load his containers. Remote Check-In cannot be used for dangerous cargo or for out of gauge and off-standard containers. Drivers transporting such loads will have to report to the administration building as before.

‘Upon arrival, truck drivers can proceed directly on to the terminal’ Pilot Remote Check-In will begin in January 2015 with a first pilot with five road transport companies (see box) whose drivers regularly visit the ECT Delta Terminal. Altogether these five road hauliers account for some 250 trips a day.

After a month the pilot will be evaluated, enabling it to be rolled out to other transporters, including independent drivers. After the ECT Delta Terminal the plan is to also introduce Remote Check-In for the Euromax Terminal Rotterdam.

Expect more innovations, say Fokker and Molenaar in closing.

“The steps we’re taking now are the first moves towards the future, for example with the introduction of a truck appointment system. With an eye to that we’ll already be asking the road transport companies to give an Estimated Time of Arrival (ETA) during the Remote Check-In. We’re also thinking about the introduction of a sort of indicator, so that road hauliers can check our website in advance to see how busy it is at ECT. And of course once Remote Check-In is working well we’ll see whether it can be coupled with Portbase. Obviously road hauliers prefer to work with a single system for all the terminals they need to visit.”

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Watchers of the Container Industry The ever-dynamic container industry is a rich subject area for research agencies. One of the newer players in this field is SeaIntel Maritime Analysis. COO Alan Murphy sheds his light on some current developments. “All parties must recognise for themselves that the bottom line has now been more than exceeded.”

“For the shipper, in terms of overall costs transport is hardly a factor.”

Alan Murphy (34, Ireland) founded SeaIntel in 2010 together with his Danish colleague Lars Jensen. Both worked for Maersk as research & market analysts for about ten years until they realised that whilst a wealth of data is generated around container shipping, certain essential information is simply not available. Murphy: “We would sometimes joke about being better off conducting our own research. After we left Maersk, this resulted in SeaIntel. The ambition of SeaIntel is to provide insight into the market and into various market drivers such as performance levels. There is a great demand for this.”

forwarders and terminal operators. We are also trying to increase the involvement of shippers, but generally speaking their interest does not exceed the point of ‘as long as it meets my needs’. The only thing that counts for them is that they can rest assured that their goods will arrive on time. Take a global sportswear manufacturer, for example. The cost

‘Since 2009, the name of the game has been overcapacity’

What counts is On Time SeaIntel performs research and analysis for clients, but also publishes a weekly newsletter for paying subscribers; this Sunday Spotlight analyses the container industry from various angles. “We have a readership of between 5,000 and 10,000, mainly from the major shipping lines, global freight 16

of transporting a container halfway across the world often only represents 0.2 percent of the value of the content.

So for this company, transport is hardly a factor in terms of overall costs. This also makes it difficult for the container industry to use the cost of transport in negotiations.”

The Red Button Murphy refers to the dictator game, a psychological experiment from the game theory, to illustrate what he thinks is happening in the container industry. “The starting point of this experiment is that you put twenty random people in twenty separate rooms which only contain a red button.

You then tell these people that there are nineteen others like them and that if no one presses the button they will all receive $ 10,000. However, if one person pushes the button he or she will receive $ 1,000 and the others nothing. What you will notice is that everyone will just continue to press the button, fuelled by fear and a lack of knowledge as to what the competition is up to.”

The dictator game-principle forms the basis for the continuous ordering of new capacity, thinks the COO of SeaIntel, but also explains the ongoing cut-down in freight rates. “Carriers are keen to fill their ships, no matter what.

And in line with the dynamics of the dictator game, everyone started lowering their freight rates. Everyone pressed the red button. Normally, lower freight rates would result in an increase in demand. But not here; in relation to the total costs, the transport costs are simply too low to be of relevance.

The one party that has benefited are the shippers.” The solution, concludes Murphy, is for carriers to stop pressing that red button of underbidding. “All parties must recognise for themselves that the bottom line has now been more than exceeded.”

SECA

The Name of the Game is Overcapacity “Since 2009, the name of the game in the container industry has been overcapacity,” concludes Murphy.

“Previously, the sky seemed the limit. We had grown accustomed to double digit growth figures. The idea behind this was that if the GDP in Europe grew by 3 to 4 percent, this would translate into an increase of 9 to 12 percent for the container industry. But this is no longer the case, the financial crisis of 2009 took everyone by surprise.

All the same, our industry continued to build and invest in mega vessels.”

Murphy thinks eventually the demand will return, but not in the same form as before the crisis. “The Far East will probably retain its dominant position as the workshop of the world for the next 50 years, but by now everyone already has that flat screen TV. The first wave has passed, we are now returning to a normal market.”

A completely different challenge, particularly for the container industry in Northwest Europe, is the Sulphur Emission Control Area (SECA) which will come into effect on the North Sea and Baltic Sea from 2015. From the 1st of January, ships in these areas must use much cleaner - but also much more expensive - low sulphur fuel or must have compensatory measures in place for the emissions from their ship engines. “This will definitely have consequences,” predicts Murphy. SECA will however have a far different impact on a feeder/shortsea operator than on a deepsea service. “On the intercontinental trades such as Asia-Europe, carriers will of course try to pass on the extra costs to the shippers, but I only expect a minimal impact on the volumes, also in terms of transhipment. For example, it is not until a deepsea vessel has less than 1500 TEU for Hamburg on board that it becomes more economical in terms of fuel costs to discharge the cargo in Rotterdam and next further transport it by feeder to northern Germany. Rotterdam and therefore ECT - may however be able to benefit from a modal shift of the deepsea shipping lines from feeder to truck, inland shipping and rail.”

For feeder/shortsea operators in the North Sea and Baltic Sea areas, the consequences will be more radical. “They are much more affected by the extra fuel costs,” concludes Murphy. “Moreover, a modal shift to truck, inland shipping and rail poses a much more realistic threat to them, especially when shortsea cargo is involved. This effect would of course be completely contradictory to the SECA’s proposed actual aim.”

For more information: www.SeaIntel.com 17

“We’re now able to offer companies a highly efficient way of transporting their containers the ‘last mile’.”

Every Container up to the Front Door DeCeTe is European Gateway Services’ inland hub in Duisburg, Germany.

The trimodal inland terminal is currently enthusiastically intensifying its efforts to offer companies in Nordrhein-Westfalen an even more distinctive service. One such initiative is the deployment of new terminal tractors capable of sustainably, efficiently and cost-effectively delivering and picking up containers at the customer’s front door.

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DeCeTe took delivery of five new terminal tractors from manufacturer Terberg in late July this year. Not a remarkable investment in itself, but even so this new additional equipment is set to make a big difference, believes terminal manager Christian Woitag. “After intensive negotiations with the Strassenverkehrsamt we’ve been granted permission to use these vehicles on public roads,” he explains.

“In combination with a permit to act as a haulier, that means that we’re now able to offer companies a highly efficient way of transporting their containers the ‘last mile’. Within a radius of over ten kilometres from our terminal countless logistics activities take place. All those companies are in a position to benefit, a truck is no longer needed. The terminal tractors can drive up to their front door to sustainably, efficiently and cost-effectively deliver and pick up containers.”

EGS Hub for Nordrhein-Westfalen Elsewhere in the Ruhr region too, the on-demand delivery and collection of containers is of course DeCeTe’s daily business. Woitag: “We act as inland hub of European Gateway Services for the whole of Nordrhein-Westfalen.

Here, flexibility comes first. We’re able to service every customer’s need: next to container handling, this also means temporary storage, (de)fumigation, empty depot, pre- and post-transport and more. ”

capacity for cargo requiring more speed. From Duisburg, the so-called Betuwe Express calls five times weekly at the ECT Delta Terminal and three times a week at the Euromax Terminal Rotterdam. In addition, the inland terminal maintains a direct barge link with the port of Antwerp.

All in all, this represents a good all-round package to meet the punctuality needs of DeCeTe’s customer base in the wider Duisburg region, Woitag has found.

Extended Gate Important Plus Another major plus point is the role the EGS inland terminal plays as extended gate. Woitag: “All our major customers make use of it.” The extended gate means that cargo arriving by deepsea ship in Rotterdam can immediately be transported onwards to Duisburg by barge or rail. Thanks to European Gateway Services’ special cross-border customs permit there’s no paper work. Customers need only complete customs formalities once the cargo leaves the DeCeTe terminal again.

‘We act as inland hub of European Gateway Services for the whole of Nordrhein-Westfalen’

Not a McDonalds Woitag is highly enthusiastic. Together with the Dutch managing director Peter Verschoor, he since recently forms the new management team. The two are working hard at taking the services provision of the EGS inland terminal to a new standard. In a strongly competitive environment with at least eleven other rival inland terminals, that’s a major challenge. Woitag: “Previously, DeCeTe was often seen as a sort of McDonalds. Everyone goes there, but no-one talks about it. As one of the leading EGS inland terminals we want to raise our profile, become more open to what’s happening at and around our terminal and get closer to our customers.”

Innovative “The extended gate is a good example of innovation,” says Woitag. “But that’s also true of, for example, the Do-It-Yourself desks we’ve recently introduced for truckers (see news item on page 6, ed.) and the fact that we’re equipping our reach stackers with tablets. That way, data relating to empty containers is also immediately available. After all, everything in modern logistics depends on information.”

DeCeTe is bustling with activity. Woitag: “We’ve still got loads of ideas for making a difference for our customers. What’s already been decided in any case is that in 2015, the oldest part of the terminal will undergo complete renovation.”

Dutch Lessons A crucial element in all the initiatives to further improve services is to actively involve the staff, of this Woitag is convinced. “We try to bestow responsibilities where they belong and base things much more on teamwork. We want our employees to be able to perform different tasks.

That way, we can respond more flexibly to incoming cargo flows.” The initial results are promising, says the terminal manager. And the employees are keen as well. Telling is the interest among the staff for taking Dutch lessons. Woitag, a fluent Dutch speaker himself: “I feel that’s important, given the regular contact we have with EGS, ECT and Dutch customers. Around two-thirds of our 80 staff have indicated they want to take part in the Dutch lessons.”

Frequent Connections The wide range of services that DeCeTe is able to offer as part of the European Gateway Services network is of course the bedrock of its operation and that won’t change. The trimodal inland terminal, situated directly on the river Rhine, maintains daily direct connections with the deepsea terminals in the Rotterdam port. Two barges ply continuously to and fro, while direct rail links provide additional transport

Christian Woitag: “As of one the leading EGS inland terminals we want to raise our profile, become more open to what’s happening at and around our terminal and get closer to our customers.”

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Philip Beesemer

ECT Delta Terminal invests in The ECT Delta Terminal is currently investing heavily in additional capacity for handling the rapidly increasing number and sizes of Ultra Large Container Ships (ULCSs). General Manager Philip Beesemer shows the investments so far and also looks at what the future still holds for further improving service and performance.

One Terminal System for the South Side “The south side of the ECT Delta Terminal is now one single terminal. We have eliminated the virtual system border between the ECT Delta Dedicated East Terminal (DDE) and ECT Delta Dedicated West Terminal (DDW),” explains Beesemer. “Both terminal operating systems have been integrated. This means we now have a 2600-metre long quay at the south side which we can optimally utilise without a system boundary in the middle. This effectively 20

yields one extra feeder berth. Furthermore, Automated Guided Vehicles (AGVs) can be deployed across the entire length of the quay and there is one single stack and one single landside handling. All this is aimed at increasing efficiency. What’s more, the widening of the Amazonehaven port basin from 255 metres to 310 metres was completed in April 2014. ULCSs are consequently able to access the south side of the ECT Delta Terminal with much more ease. Both captains and pilots have responded positively to this.”

ULCS Upgrade Programme ULCS Cranes Operational Beesemer continues: “All five of the ULCS cranes which were delivered earlier in 2014 are now in operation at the south side. As a result, we can offer three ULCS berths for the handling of 16,000 TEU vessels up to 18,000+ TEU vessels here. The Delta Dedicated North Terminal (DDN) also has one ULCS berth. Furthermore, there is additional space around these berths to handle relatively ‘smaller’ vessels of, for example, 10,000 TEU.” According to the General Manager there is more to come. “We will continue to invest in ULCS capacity. In the second quarter of 2015, we will take delivery of yet another three ULCS cranes with the same qualifications as the five mega cranes commissioned earlier this year: a lifting height of 50 metres under the spreader and an outreach of 70 metres, or 24 containers wide.”

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Integrated Planning and Control “Moreover, we have substantially invested in the merging of all the planning and control activities at the ECT Delta Terminal. All operations are now centrally managed 24/7 from building 21 at the heart of the terminal; this encompasses the former DDE and DDW, the DDN, the Delta Barge Feeder Terminal, the Coordination Centre ECT and the landside operations.” A logical step according to Beesemer.

“Logistics is becoming increasingly more complex. Due to the ongoing increase in vessel size, more and more parties need to work together. We are anticipating this through central control, which helps to create the conditions we need to efficiently serve all our customers.”

See more of the ULCS upgrade programme at the ECT Delta Terminal on the free Fast Forward app which you can download in both the Apple App Store and Google Play Market.

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‘The south side of the ECT Delta Terminal is now one single terminal’

More New Equipment Other new equipment is also steadily arriving, says Beesemer.

“Eleven one-over-five lifting Automated Stacking Cranes are currently commissioned. We’ve also added seven new straddle carriers to the operations on the landside.

In addition, the delivery of the 84 hybrid AGVs ordered from the Dutch company VDL is continuing in batches. In all cases, replacement investments are involved; the new equipment offers both increased sustainability and better performance.”

“The ULCS upgrade programme of the ECT Delta Terminal is progressing as planned,” concludes Beesemer. “And not just in terms of new hardware. Many people throughout our entire organisation have worked hard and are still working hard, day and night, to constantly improve service and performance whilst operations continue round the clock.”

Me and my Vessel ‘25 percent less fuel consumption’ THE THALASSA DOXA IS ALREADY THE NINTH VESSEL IN A SERIES OF TEN FOR TAIWANESE EVERGREEN LINE. ON ITS MAIDEN VOYAGE, CAPTAIN OLEG KOVALCHUK (38) EFFORTLESSLY BERTHED THE 13,808 TEU THALASSA DOXA INTO THE RECENTLY WIDENED AMAZONEHAVEN TO THE SOUTH SIDE OF THE ECT DELTA TERMINAL.

WHAT MAKES THE THALASSA DOXA SPECIAL?

HOW IMPORTANT IS THAT CUT IN FUEL CONSUMPTION?

“The hull design and a new generation of main engine enable the vessel to reach a speed of up to 23 knots, with 25 percent less fuel consumption than vessels of the previous generation.

Take note: the ship I captained before this, a container carrier of 5300 TEU, burned as much fuel as the Thalassa Doxa does with its 13,808 TEU.”

“Evergreen is really focussed on reducing fuel consumption.

Every morning at Evergreen in Taipei they examine all kinds of data and issue advice to each ship in the fleet on how to sail with maximum efficiency, taking into account factors such as currents and weather conditions.

For the Thalassa Doxa that meant sailing to Rotterdam - our first port of call in north western Europe - at an average speed of 18 knots. Of course it’s only a recommendation: how the ship sails and how to respond to different situations is and always remains the responsibility of the captain.”

WHAT ARE THE WORKING AND LIVING CONDITIONS LIKE ON BOARD?

HOW DO YOU LIKE YOUR VISITS TO ROTTERDAM AND ECT?

“Our crew of eight Ukrainians and fifteen Filipinos work and live in comfortable conditions.

There are no vibrations, because the engine room is separate and situated a long way from the wheelhouse. Of course it’s important that there’s a good cook and for the rest there’s a good gym on board, large LCD screens and affordable satellite wifi for everyone. That way the crew can always contact their family and friends.”

“Unfortunately there’s no time to go and see what the city of Rotterdam has to offer. The cargo is rapidly taken off board by six cranes. The ECT Delta Terminal is one of the most productive terminals in Europe. At a later stage in our round trip we’ll be back to take on more cargo and off course to bunker. I’ve been a captain for three years now and it’s always a pleasure to visit Rotterdam due to the excellent facilities and the quality of its maritime services.”

See more of the Thalassa Doxa on the free Fast Forward app which you can download in both the Apple App Store and Google Play Market.

About the Thalassa Doxa BUILT Hyundai Shipyard, Ulsan, South Korea LENGTH 368 m WIDTH 51 m CAPACITY 13,808 TEU (800 reefer plugs) LOOP Kaohsiung, Shanghai, Ningbo, Shekou, Tanjung Pelepas, Suez Canal, Piraeus, Rotterdam, Felixstowe, Hamburg, Rotterdam, Piraeus, Suez Canal, Tanjung Pelepas, Kaohsiung in 70 days.

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Behind the Scenes In collaboration with specialist Eco Worldwide Services (EWS), European Gateway Services (EGS) is offering a comprehensive range of services for safe gas measurements, reliable gas measurement reports and the sustainable ventilation of containers at more and more inland terminals in its network.

Containers which are to be measured are always checked for the presence of all possible pesticides and production gasses as specified by the national inspection services.

Each measurement is immediately followed by a gas measurement report.

A mobile gas laboratory allows for the fast, computerised analysis of gas samples on-site.

In a few minutes, the outcome of the standard list of residual gases is known.

In total, more than 400 different gases can be detected in the mobile laboratory.

Safety is paramount in all activities and each degassing location is well-secured.

Containers with concentrations of gases that exceed the limit are ventilated in a controlled manner using an advanced method which combines safety with speed and efficiency.

A sustainable, safe and economically attractive alternative to ventilating in the open air.

Customers of EGS can easily issue their orders for gas measurements whilst booking their hinterland transport. EGS will then deliver the containers free of gases to the front door at the agreed-upon time.