Management J U LY / AU G U S T 2 0 2 2 W O R L D P O R T D E V E L O P M E N T I n t h i s i s s u e : S c o t t i s h Po r t s Fe n d e r S y s t e m s Sh u t t l e Ca r r i e r s Singapore W W W. W O R L D P O R T D E V E LO P M E N T. CO M Po r t Co n s t r u c t i o n Thri ving despit e mer g er se tbac k Au s t r a l i a n Po r t s Fi n a n c e Po r t I n f r a s t r u c t u r e I n d i a n Po r t s D a n g e r o u s G o o d s R e g u l a t i o n s
International Journal for Port
visit our website -- www.worldpor tdevelopment .com 16 Australian Ports invest and expand Australia is a k ey player in international shipping, with 98%of the nation’s trade volume moving by sea.
Instone reports 18 PSA spearhead sustainable trade Claire Instone tak es a look at how PSA are playing an acti ve role in contributing to sustainability whilst dri ving innovation... 23 Bright future for Indian Ports The Indian Brand Equity
has released a report on the Indian port industry. WPD reports... 25 Thriving after merger setback Kalmar and Konecranes maintain their position as competitors in the industry. WPD reports... contents July/August 2022 World Port Development 1 34 Port construction round-up Claire Instone reports on the latest port construction projects... 39 A whole system approach to fender performance Ports must find ways to upgrade and future-proof their infrastructure... 3 Viewpoint 4 News from around the globe 21 The net-zero opportunity for ports in Scotland 28 Untying supply chains knots 31 Changing dangerous goods regulations Ports are quite literally at the frontier of Scotland’s trading arrangements Gordon Feller reports... Gordon Feller explains the benefits and drawbacks of using P3s to finance port infrastructure... Peregrine Storrs-Fox, Risk Management Director, TT Club discusses the importance of dangerous goods regulations...
Claire
Foundation
Consulting Editor : Sheila Moloney sheila@worldportdevelopment.com
Editor : Claire Instone claire@worldportdevelopment
Editorial Consultants: Gordon Feller gordon@worldportdevelopment com Eugene Gerden info@worldportdevelopment com
Commercial Director : Peter van Schie peter@worldportdevelopment com
Business Development: Selina Palmer info@worldportdevelopment com
Production Manager : Helen White info@worldportdevelopment com
‘With larger vessels, increased cargo volume , improved safety awareness, and tougher environmental regulations, today’s por ts face significant challenges To accommodate regional compliances and the rapidly changing nature of the shipping industr y, por ts must find ways to upgrade and future-proof their infrastructure , doing so safely, efficiently, cost-effectively, and sustainably ’ This opening statement - taken from this edition’s feature contributed by Trelleborg on fender performance (page 39) - perfectly sums up how por ts must constantly tread a fine line between driving innovation whilst contributing to sustainability
One particular organisation’s work in this domain is highlighted in this month’s issue as I report on how global por t group PSA is striving to ensure it meets the highest standards across the board To read more about how it is spearheading sustainable trade , including details of Singapore’s first Energ y Storage System, turn to page 18
Moreover, our regular por t construction round-up features details not only on plans for new por ts and terminals but news of investments being made in order to see old structures and facilities revamped. In addition, I bring readers an over view of the major projects taking place at the por ts of Brisbane , Melbourne and Hedland for WPD’s annual Australian regional sur vey Beyond, the ‘land down under’, our July/August publication also proffers up a repor t on the Indian por t industr y as well as an ar ticle on the net-zero oppor tunity for por ts in Scotland. Turn to pages 23, and 21, respectively.
Of course , underpinning all the innovation, green initiatives and new construction is a huge level of investment. On page 28, Gordon Feller focuses on the US explaining the benefits and drawbacks of using P3s to finance por t infrastructure
Naturally, once por ts are financed, built, made sustainable and are operating at peak performance , there is always the on-going issue of safety Covering this topic , WPD welcomes editorial by Peregrine Storrs-Fox, Risk Management Director, TT Club, on the impor tance of dangerous goods regulations.
July/August 2022 World Port Development 3
Enjoy reading this issue of World Por
Development! Claire Instone Editor
t
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com
Volume 22
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info@worldportdevelopment.com Website:
proofing:
innovation sustainably
Kalmar
received an order from the Port of Virginia for their Hybrid Shuttle Carriers for the Virginia International Gateway Turn to page 25 for the full story viewpoint Future
driving
Freight volumes cont inue to increase at t he Por t of Got henburg
The Port of Gothenburg is growing in terms of volumes and enhancing its position as the guarantor of Swedish industry’s access to the world at largethis is reflected in the por t’s repor ted volumes for the first half of 2022 And despite warnings of an imminent recession, Elvir Dzanic , CEO of the Gothenburg Por t Authority, believes there will be continued growth for the industrial sector into next year. The vast majority of Swedish foreign trade takes place by sea When it comes to trade with countries outside Europe, the most common method is to transport freight on container ships At the Por t of Gothenburg, which is the largest por t in Scandinavia, 433,000 TEUs were handled during the first half of 2022 This is a 5% increase compared with the same period in 2021.The port is also increasing its market share in Sweden. The facility currently accounts for 52% of the Swedish container market, compared with 48% at the beginning of last year “As a por t, we ’ ve shown that we can provide Swedish industr y with efficient ser vice , despite the fact that the global logistics system continues to experience successive forms of disruption, causing problems in many por ts So it’s logical that Gothenburg is increasingly becoming the por t of choice , ” says Dzanic . The Railpor t Scandinavia railway system links the Por t of Gothenburg with over 30 inland terminals at locations all over Sweden, and is one strong contributor y factor behind the increase in container volumes in the Port New locations were added to the system during the first half of 2022, while existing traffic has seen additional growth All in all, container transpor t activities by rail to and from the por t have increased by 10% compared with the same period last year
Hamburg’s first star t-up for digitalisation achieves results
DAKOSY, Hamburg’s original star t-up for digitalisation, is celebrating its 40th anniversary Driven by the por t industr y, DAKOSY was founded in 1982 with the aim of staying ahead of competition from other seapor ts as a “faster port.” With its numerous IT platforms, DAKOSY is now an established digitaliser for neutral logistics solutions far beyond the city limits of the Hanseatic City of Hamburg The widespread acceptance in the industr y is reflected by the significant number of users
In the por t of Hamburg, more than 2,500 enterprises from por t operations, logistics, manufacturing and trade as well as many public authorities are connected to DAKOSY’s Por t Community System. Another impor tant pillar is contributed by smart solutions in the areas of customs and forwarding, with more than 2,000 freight forwarders, industry and trading companies in Europe who work with these solutions daily “All applications are based on the principle of recording transpor t chain data only once , and then making it available at the earliest possible time - an idea that has been fundamental to us since 1982,” explained board member Dieter Spark.
n e w s p o r t & t e r m i n a l World Port Development July/August 2022 4
Environmental repor t released
for POLB dredging
The Por t of Long Beach has released a final repor t examining the environmental impacts associated with deepening existing navigation channels to enhance safety, reliability and efficiency for visiting cargo vessels
Prepared jointly with the US Army Corps of Engineers, it assesses the costs, benefits and environmental impacts of the project alternatives that include dredging to deepen channels, basins, ber ths and other areas in the por t to facilitate commerce .
Por t
Esbjerg orders
second LHM 800 and awaits deliver y of an LHM 600
The Por t of Esbjerg is a long-standing par tner of Liebherr and recently ordered a second LHM 800. The new crane is already the seventh Liebherr mobile harbour crane to be used at Denmark’s largest por t Next-generation offshore wind turbines will be lifted with the new heavy-duty crane Liebherr will deliver a fur ther crane of the type LHM 600 to Por t Esbjerg before the end of the year Por t Esbjerg is the leading por t in Europe when it comes to handling and shipping wind energ y components. The por t played a key role in the rise of Denmark’s offshore wind industr y - 80% of the offshore wind capacity installed in Europe was shipped out from the Por t of Esbjerg Their record for breakbulk is notable , as the por t handles more than 500,000 tonnes of major wind turbine components each year Therefore , it is crucial that the por t is equipped with state-of-the-ar t equipment The first LHM 800 for Por t Esbjerg was delivered back in 2019. The upcoming deliver y in 2023 of the recently ordered second LHM 800 marks the seventh Liebherr MHC purchased by Esbjerg The new addition will make the facility the third por t in the world to have two LHM 800 cranes in its fleet. With the second LHM 800, Esbjerg will be able to carr y out tandem lifts of up to 616 tonnes This means that components of the next generation of offshore wind turbines can be handled. Dennis Jul Pedersen, CEO at Por t Esbjerg, says: “Our competency lies in breakbulk and in having the capacity for tandem lifts above 600 tonnes, which is necessar y not only in the on- and offshore wind market but also in suppor ting production in the hinterland.”
Liebherr and Por t Esbjerg have enjoyed a par tnership for many years The first Liebherr MHC was an LHM 1080, bought by the por t in 1994
Together with Esbjerg, Liebherr developed its unique Sycratronic tandem-lift assistance system
The LHM 800 is the largest and most powerful MHC in the Liebherr LHM por tfolio. The machine meets the ever-increasing demand for mobile heavy-duty cranes in the maritime sector.
n e w s p o r t & t e r m i n a l
July/August 2022 World Port Development 5
Market Intelligence Market Intelligence
Africa Europe
* Cavotec will support the decarbonisation at APM Terminals MedPor t Tangier by providing its next generation vacuum mooring system MoorMaster NxG The automated trans-shipment terminal is one of the most technologically advanced, safest, and efficient terminals in the world As par t of its two-phase expansion between 2021 and 2025, the Tangier por t will install Cavotec’s innovative auto-mooring system along the extended section of the quay This will reduce the time taken by vessels to moor and release , thus improving operational efficiency and safety and considerably reducing harmful emissions The system reduces ship emissions during ber thing by more than 90%. Once ships are moored, the MoorMaster’s active hydraulics significantly reduce vessel motion, thereby positively impacting the terminal’s already exceptional crane moves per hour APM Terminals to achieving a 70% reduction in absolute emissions by 2030 and net-zero emissions by 2040 for operationally controlled terminals
* Home , garden and leisure products retailer The Range is to occupy a high quality, sustainable logistics unit of approaching 1.2m sq. ft. on the UK’s Freepor t East Gateway 14 site Conditional contracts have been exchanged to develop the distribution unit on a freehold turnkey basis with Jaynic , the development par tner for Gateway 14 Ltd which is wholly owned by Freepor t East par tner Mid Suffolk District Council. Commenting on the latest milestone in Freepor t East’s development, George Kieffer, Acting Chairman, stated: “The unique location of Freepor t East, close to some of the world’s major international shipping routes, provides a range of benefits to businesses which locate here
Freepor t East is focused upon value-added logistics, advanced manufacturing and the clean energ y sectors and we are delighted to welcome The Range as the first of what will be many businesses to commit to the Freeport ”
* The UK Government has launched a new maritime strateg y focused on enhanced seabed mapping and tackling security threats Revealing the five-year plan, Transpor t Secretar y Grant Shapps explained the guiding principles for the UK government’s approach to managing threats and risks at home and around the world, including leveraging the UK’s world-leading seabed mapping community and tackling illegal fishing and polluting activities at sea. The new initiative redefines maritime security as upholding laws, regulations and norms to deliver a free , fair and open maritime domain. With this approach, the government said it will recognise any illegal, unrepor ted and unregulated (IUU) fishing and environmental damage to its seas as a maritime security concern. The government also established the UK Centre for Seabed Mapping (UK CSM), which will utilise data collection and sharing for the UK’s maritime industry The UK CSM has also been registered as a UK government voluntar y commitment to the UN Decade of Ocean Science for Sustainable Development
* Hamburger Hafen und Logistik AG (HHLA) recorded a positive performance in revenue and earnings in the first half of this year. The company benefited in par ticular from a fur ther rise in storage fees in the container segment resulting from much longer dwell times for containers at HHLA’s facilities, as well as from further increases in the rail share of HHLA’s total intermodal transpor tation.
HHLA Group revenue rose by 9 9% to €779 5 million (previous year : €709 2m)
The Group operating result (EBIT) climbed by
11 9% to €101 3 million (previous year : € 90 5).
The EBIT margin amounted to 13 % (previous year : 12.8%). Profit after tax and minority interests rose year-on-year by 13 1% to €43 9 million (previous year : €38 8 million)
Nor t h America
* The Por t of Virginia continues processing record-setting amounts of cargo having handled nearly 318,000 TEUs in July and in doing so making it the most productive July in the por t’s histor y July’s TEU total was ahead of the same month last year by more than 24,500 units, or 8 4% Additionally, July was the fourth consecutive month of TEU volumes exceeding 317,000 units. The combined volume of April, May, June and July is 1 3 million TEUs, resulting in the busiest four-month stretch in por t histor y. Comparatively, the total TEU volume for the same period in 2021 was 1 17 million TEUs, a difference of more than 10% Stephen Edwards, CEO of the Virginia Por t Authority, is expecting business to remain strong during the peak retail months leading up to the holiday season This, he said, will position the por t to have its best calendar year performance on record
* Por t Everglades exceeded its record May and June cargo volumes thanks to new ocean shipping services from India, Turkey and Greece “Unlike the downturn that we typically experience at the end of our busy melon season, we had a spike in May and June because of the new Mediterranean Shipping Company services from South Asia and the Mediterranean,” said CEO and Director Jonathan Daniels.
“We are on track to shatter our annual record from 2018 ” In May 2022, Por t Everglades recorded 97,502 TEUs, up 4% over the por t’s former record set in May 2015 Containerised cargo volumes jumped 5% in June 2022 over the record set in June 2018, with 94,106 TEUs
n e w s p o r t & t e r m i n a l World Port Development July/August 2022 6
* Fifteen ship-to-shore cranes now stand 155 feet above the wharf deck at Wando Welch Terminal, efficiently working mega container ships at the Por t of Charleston. The fifteenth and final crane was recently moved into position along the waterfront With five cranes to a ber th, Wando Welch Terminal is now even more capable of efficiently working three 14,000-TEU vessels simultaneously The new ship-to-shore cranes have 155 feet of lift height and the ability to reach out over 22 containers to work the biggest ships calling the East Coast The cranes are a key par t of SC Por ts’ USD500 million investment to modernise Wando Welch Terminal The multi-year project enhanced capacity and operations with new container-handling equipment, a modernised container yard and refrigerated cargo yard, improved traffic patterns and IT systems, a strengthened wharf, and an on-terminal transload facility for mega retailers
* May 2022 was a historic month at the Port of New York and New Jersey as it became the second busiest month of cargo activity in its histor y Total volume increased by 6 1% in May, totalling 845,305 TEUs compared to 796,693 TEUs in May 2021. This number brings the por t’s yearly total to 4,034,683 TEUs Impor ts also rose by 7 6% in May, totalling 426,423 TEUs versus 396,417 TEUs the previous year. From January through May 2022, impor ted loads at the Por t of New York and New Jersey reached 2,068,369 TEUs, an 11.5% increase over the 1,854,409 TEUs recorded in the same period of 2021
* The Port of Long Beach had its busiest July on record despite a cooldown in consumer spending Dockworkers and operators moved 785,843 TEUs in July, a slim 0 13% increase from the previous record set in July 2021 Impor ts declined 1.8% to 376,175 TEUs, while exports were down 0 5% to 109,411 TEUs Empty containers moved through the Por t were up 2.8% to 300,257 TEUs. “We are continuing to seek solutions to improve efficiency as a record-breaking number of containers move through the Por t,” said Executive Director Mario Cordero “We hope to relieve some of the stress points by continuing to suppor t a transition of the entire supply chain to 24/7 operations and ensuring our industr y par tners can track containers with our new Supply Chain Information Highway data solution.”
* Alabama Por t Authority has announced its busiest month ever for containerised cargo, as the Por t of Mobile keeps driving its steadfast growth In July 2022, operations across terminals broke the 50,000 TEU mark
for the first time since 2008 The figure accounts for a 184 7% year-on-year increase in intermodal cargo, and a 35.8% surge for dr y and refrigerated cargo The news comes after the por t’s impressive June results, when it repor ted a total of 263,562 TEUs for the year so far handled at the Por t of Mobile
* SA Recycling terminal in the Port of Long Beach has topped a total of 2 5 million tonnes in expor ts of iron ore since October 2020, showing strong growth in the shipment of a resource once added to diversify the terminal’s business beyond the processing and expor t of recyclable metal The company has operated a marine terminal at the Por t of Long Beach’s Pier T on Terminal Island since 1998. Star ting in 2013, it has received iron ore mined in the western United States via railroad The material is loaded onto bulk cargo ships that sail to por ts in East Asia. “I want to congratulate SA Recycling on this achievement,” said Mayor
Rober t Garcia “Thank you to all the workers across our region who have made this milestone possible ”
* The Georgia Por ts Authority kicked off its new fiscal year with the fastest star t ever, handling 530,800 TEUs in July, an increase of 18% Since Januar y, GPA has moved 3 4 million TEUs, up 231,400 or 7% over its performance during the same period in 2021 - a record year in which GPA handled 5 6 million TEUs Annualised, the July volumes have the Por t of Savannah moving containers at a rate of more than 6 million TEUs per year “The Por t of Savannah has clearly become a preferred East Coast gateway for shippers globally, including cargo diver ted from the US West Coast,” said GPA Executive Director Griff Lynch “Our expedited infrastructure projects, extended gate hours and the outstanding work of our employees and par tners are key to our ability to move cargo at a record pace . ”
close by Q1 CY2023 This investment from NIIF Master Fund extends the existing DPW and NIIF par tnership, formed through the creation of Hindustan Infralog Private Limited (HIPL) in 2018 Since its inception, HIPL has made substantial investments in rail logistics, multi-modal logistics parks, container freight stations, economic zones, cold chain infrastructure and contract logistics to create a market leading integrated logistics platform.
* Transpor t workers at three Indian por ts in Chennai recently entered an indefinite strike , causing cargo disruptions across the network as por t activities came to a stop As of 7 July, labour action has halted most impor t-expor t activities at the Adani Kattupalli, Chennai, and Kamarajar ports while some 8,000 containers were repor tedly stranded The strike was declared after talks between owners of container-carr ying trailers and trade bodies failed to result in an agreement The protesters demanded an 80% increase in fees due to rising fuel costs; over 4,000 vehicles participated in the action The Trailer Owners’ Association reported that only one association, the Customs House Agents, had agreed to increase rates.
Middle East India Asia
* DP World and India’s National Investment and Infrastructure Fund (NIIF) have announced the broadening of their existing par tnership, with NIIF Master Fund investing primar y capital of INR 22.5 billion (approximately USD300 million) for a shareholding of approximately 22 5% in Hindustan Por ts Private Limited (HPPL), the wholly owned subsidiary of DP World With this transaction, which is also the Master Fund’s single largest investment, NIIF’s investment under this partnership will reach around USD500 million. The transaction is subject to customar y completion conditions and is expected to
* NYK Line and UNI-X NCT Corporation (UNI-X) have begun operation of four state-of-the-ar t transfer cranes developed by Mitsui E & S Machiner y Co , Ltd The four machines are based at the NYK Tokyo Container Terminal (NYTT) and each have a downsized diesel engine that reduces CO2 emissions and diesel exhaust. Moreover, the engines can be replaced with a hydrogen fuel cell power supply in the future This move is in line with the carbon neutral por t concept being promoted by Japan’s Ministr y of Land, Infrastructure , Transpor t and Tourism to reduce greenhouse gas (GHG) emissions at por ts to zero through the advancement of por t functions
* ICTSI H1 2022 net income is up 50% Enrique K Razon, Jr , ICTSI Chairman and President said: “We have delivered another period of strong operational and financial results across our global por tfolio with throughput growth of five percent Revenues grew by 20% to USD1.06 billion and EBITDA increased by 26% to USD672 1 million driven by volume growth, strong contribution from new terminals and an improvement in trade activities as economies recover from the impact of lockdown restrictions and the COVID-19 pandemic ”
n e w s p o r t & t e r m i n a l July/August 2022 World Port Development 7
a d v e r t s World Port Development July/August 2022 8
THEMONTHINPICTURES
Cavotec’s latest MoorMaster system enters ser vice in NZ
Cavotec’s MoorMaster automated vacuum mooring technolog y marked a major milestone recently with the official opening of the new 6 Wharf at Napier Port in New Zealand, the country’s four th largest por t by container handling volume According to the por t, the 6 Wharf project will allow the por t to handle more and larger ships, and improve operational performance
The ber th’s MoorMaster system recently completed Site Acceptance Testing and is now fully operational
The system has already been in use at the wharf, for example mooring the 294-meter-long CMA CGM Marlin Avoiding the need for hazardous mooring lines altogether, MoorMaster uses remote controlled automated vacuum pads to moor and release vessels in seconds, and hold vessels in place, automatically compensating for swell and tidal effects. The system dramatically improves safety and operational efficiency, optimises the ship-toshore interface , and reduces emissions due to reduced use of tugs and ships’ engines
NWSA YTD TEU volumes down 4%
1.
cleaner
4
Singapore
in the Philippines 2. Ports of Stockholm and CMB TECH are joining forces in a unique hydrogen collaboration at Stockholm Norvik Port The goal is for Stockholm Norvik Port to be Sweden’s most climate-smart and sustainable port 3. The Port of Long Beach recently welcomed Pasha Hawaii’s MV George III, the first container ship powered by liquefied natural gas to refuel on the West Coast The ship’s LNG-powered engines are dramatically
Rotterdam have signed a memorandum of understanding to establish the world’s
Port
Green and Digital Corridor to enable low and zero carbon shipping 5. JAXPORT has promoted experienced infrastructure development leader James Bennett, P E , to the role of Chief Operating Officer 6. In other news, JAXPORT’s Talleyrand Marine Terminal facilitated the return of a historic, made-in-Florida World War II tug boat to the US The tug, Tiger ST 479, recently arrived at JAXPORT from Sweden aboard the Spliethoff multi-purpose vessel Snoekgracht
SPOTTED SOMETHING OF INTEREST?
Reduced vessel calls in Junedue to congestion in other ports and ongoing service suspensionsnegatively impacted NWSA volumes. In addition, full impor ts in June 2021 were above average , making year-over-year comparisons unfavourable June volumes decreased 10.3% to 309,123 TEUs, with full impor ts declining 15 4% and full expor ts declining 8 8% year-over-year. Year-to-date impor t volumes are tracking ahead of pre-Covid levels, while laden expor ts continue to struggle from reduced ser vice capacity Year-to-date volumes declined 4% to 1,806,732 TEUs, with full impor ts and expor ts declining 6 9% and 24 2%, respectively
July/August 2022 World Port Development 9
Kongsberg Digital (KDI) and Maritime Industry Authority in the Philippines (MARINA) have signed a memorandum of understanding (MOU) representing a significant milestone for innovation and transformation in maritime training
2 1 4 3 5 6
than those of a traditional cargo vessel
The Maritime and Port Authority of
and the
of
longest
you have
something unusual or something of interest for inclusion in this column make a photograph
it and send it by email to:
com
If
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Savannah s tays on pace at nearly 5.8m TEUs in FY2022
Savannah s tays on pace at nearly 5.8m TEUs in FY2022
Year 2022 was another record-breaker for the Georgia Por ts Authority,
The Por t of Savannah ended the year with a record June , handling 494,107 TEUs in total cargo, up 10.6% or 47,300 TEUs
same month last year “As the hub in a global network of road, rail and ocean carrier connections, our por ts link
trade lanes and open doors to prosperity for our state and nation,” said Georgia Gov Brian Kemp “The Georgia Por ts Authority and its par tners in the logistics industr y are powerful drivers for local economies across the Peach State , from small communities to our thriving urban centers.” In addition to organic growth among its por t customers, Savannah trade has also been boosted by West Coast labour talks and delayed access to rail at West Coast ports, prompting a significant shift in vessel calls Savannah is also receiving container trade diverted from the Port of Charleston GPA is currently handling the highest volume of ad hoc and new ser vice vessels the Port of Savannah has experienced to date Uncertainty around the labour talks, unprecedented and unplanned vessel calls, record cargo volume , and vessel diversions to Savannah have contributed to a higher than normal number of vessels waiting at anchor “Despite the record volumes, the Por t of Savannah remains fluid,” said GPA Executive Director Griff Lynch “Several factors have contributed to our growing container capacity, including expedited infrastructure projects, our inland pop-up yards and an influx of truck drivers moving to the Southeast.” GPA is experiencing record truck turns during both its day and night-gate operations. Garden City Terminal saw a weekday average of 14,500 truck moves in June , counting both inbound and outbound gate exchanges
JAXPORT voted No. 1 in US for value
The Jacksonville Port Authority has been voted the top port in the nation for value and the top port on the East Coast for overall customer satisfaction by readers of Logistics Management. The publication’s annual Quest for Quality survey evaluated JAXPORT in five areas The por t earned the highest score of any US por t in the value categor y, where readers identified the benefits of using JAXPORT over other por ts as “measurable ” JAXPORT also earned the highest overall score of all US East Coast por ts. “This recognition reflects the effor ts of our employees, terminal operators and service providers who work hard every day to provide an outstanding level of service for our customers while maintaining the efficiencies Jacksonville is known for throughout the industr y, ” said CEO Eric Green “As we grow, providing value to customers remains a top priority as we continue to do our part to keep the supply chain moving for our nation’s businesses and consumers
n e w s p o r t & t e r m i n a l World Port Development July/August 2022 10
Fiscal
with container volumes growing 8% for a total of 5 76 million TEUs
compared to the
Georgia businesses to international
MacGregor selected to supply
RoRo equipment
MacGregor, par t of Cargotec , has been selected to supply RoRo equipment for four RoRo vessels to be built by the Guangzhou Shipyard International Co , Ltd for H-Line Shipping, Korea The significant order was booked into Cargotec’s 2022 second quarter order intake The vessels are scheduled to be delivered to the owner star ting in Q2 2024 and are expected to be completed in Q2 2025 The order consists of all-electrically operated RoRo equipment: quar ter ramps, side ramps, internal movable ramps, and rampway doors to each of the four vessels The order also consists of the patented Load Monitoring System, which can boost the load capacity of the ramp and thus provide more flexibility for heavier project cargo MacGregor’s scope of supply encompasses design and key components including installation assistance .
Hutchison Ports secures USD700m terminal deal in Egypt
Hutchison Ports has inked two concession agreements with the Egyptian Government to operate the container terminals in Ain Sokhna Por t and El Dekheila Por t Total investment for the initial operations of the two projects is approximately USD700 million Hutchison will work together with co-investors CMA CGM and COSCO SHIPPING Por ts for the project in Sokhna and with Terminal Investment Limited for the project in El Dekheila The initial ceremony to mark the event was hosted by His Excellency Mostafa Madbouly, Prime Minister of Eg ypt and His Excellency Kamel Al-Wazir, Minister of Transpor t
Half year figures holding for Por t of Rotterdam
Total cargo throughput in the port of Rotterdam was 0 8% higher in the first half of the year (233 5 million tonnes) than in the same period in 2021 (231.6 million).
In many segments, the war in Ukraine led to significant changes For example, imports of both LNG and coal rose ver y sharply as an alternative to reduced European imports of Russian gas by pipeline. The throughput of crude oil increased, with oil products falling off Throughput of iron ore, agricultural bulk and containers was lower than in the same period last year Container transpor t to and from Russia has come to a halt, and persistent bottlenecks in global container logistics caused cargo to shift from large to smaller container por ts
Lifet ime Advantage introduces upg rades to enhance Konecranes Lif t Truc k s
For over three years, Konecranes Lifetime Advantage upgrade packages have been regularly bringing customers the most recent advances in safety and productivity available for their lift trucks Now, the latest chapter in this long-term commitment to improving lift truck performance presents four more innovations from Konecranes Two of the four new upgrades directly address safety issues The first safety upgrade, a container checking safety system for Konecranes empty container handlers, allows drivers or ser vice technicians to check or perform maintenance on containers while the container is gripped by the spreader, reducing the downtime needed for container repairs. The system uses mechanical locks to put the driving gears into neutral, block hydraulics and prevent the container from lowering As an extra precaution, an indicator light on the fender flashes until the driver deactivates the system The second safety upgrade is a collision warning and object recognition camera system for Konecranes reachstackers, mounted on the counterweight at the back. “Safety and productivity are our highest priorities at Konecranes, so we work hard to include enhancements for both in ever y Lifetime Advantage release,” says Johan Kårhammer, Global Spare Parts Operations Manager The other two upgrades in this release are designed to improve productivity on all Konecranes forklift trucks and empty container handlers equipped with an MD4 master display. The first one is an engine shutdown software solution. If the coolant temperature goes over 103oC (217.4oF) or the oil pressure goes below one bar, a pop-up message appears on the display. The second productivity upgrade is a height indicator When a laser senses that the total height of the machine (in other words, with an extended mast, including the load) reaches a specified limit, an alarm goes off and a pop-up window appears on the display
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July/August 2022 World Port Development 11
Por t of Hamburg boos ts container t hroughput market share
The container throughput trend in Port of Hamburg in the first half of 2022 was more positive than expected. Total throughput of 4.4 million TEUs in the first six months of the year represented slight growth of 0 9% Compared to the major competing por ts of Antwerp-Bruges, Rotterdam and Bremen/Bremerhaven in Northern Europe, all reporting downturns in container handling, Hamburg was the only major port in the range to repor t an increase . At the four major por ts in the European Nor th Range , for the first six months average container throughput fell by 4.6%. Against this trend Hamburg, gained 1.1 percentage points, being the only top por t to achieve growth in container handling. At 61.8 million tonnes, throughput in Germany’s largest universal por t was 2 7% lower than in the comparable period of the previous year The drop in the total throughput can be explained by the weaker figure for bulk cargo handling At 17 6 million tonnes, handling in Hamburg was down by 8 9 percent
Por t of Felixs towe launc hes a new Online Data Por tal
Hutchison Por ts Por t of Felixstowe has launched OCEAN (Online Container Enquir y Analytics Notifications), a new online platform to provide fast and accurate real-time information for customers. Commenting on the launch, Adam Ramsey, Commercial Director at the Por t of Felixstowe , said: “Global supply chains have been under pressure for the last couple of years and it has been increasingly difficult for shippers to obtain reliable and accurate data on the location and status of their goods This new ser vice provides a wide range of data and sets a new standard in transparency It enables por t users to track the progress of their goods through the por t and to access operational status repor ts. “Not ever y user wants the same information and our team spoke to a wide variety of end users to find out exactly what each wanted The focus of development has been on human-computer interaction and user experience , providing the right data in a way that is simple to use and delivers on customer needs ” OCEAN allows por t users to track up to 200 containers simultaneously and swiftly. They can refine their search, filtering data that includes estimated vessel arrival times, actual arrival times, when a container is landed, when it is cleared for collection, when it is booked to road haulage or a rail ser vice and what time it depar ted the por t In addition to container-specific information, the OCEAN dashboard provides a range of at-a-glance terminal status repor ts
n e w s p o r t & t e r m i n a l
World Port Development July/August 2022 12
Maersk to adopt new container firefighting system
A P Moller - Maersk (Maersk) will install VIKING’s HydroPen system across its entire fleet - a system designed for direct firefighting in stacked shipping containers The contract represents the single largest HydroPen order for VIKING Life-Saving Equipment The HydroPen system is driven purely by water pressure through an attached deck fire hose When water pressure is activated, a turbine will drive the HydroPen drilling unit until it penetrates the container door, whereupon the system will spray water into the container to extinguish the fire directly at the source . In the case of a fire at height in the container stack, the HydroPen system can be deployed using a telescopic device Beyond water, the system is compatible with foam or CO2 Besides the system itself, the company also offers digital training through its VIKING Safety Academy platform
Por t of Virginia sets new Fiscal Year record
The Port of Virginia set a new June cargo volume record having handled more than 317,000 TEUs, which is an increase of nearly 36,000 units when compared with last June June was the por t’s four th consecutive month of cargo volumes of 314,000 TEUs or more and the month’s activity helped elevate the por t’s total TEU volume for fiscal year 2022 (FY22) to a record- breaking 3 7 million units The FY22 TEU volume increased 14.7% when compared with FY21, which was the por t’s previous best fiscal-year performance (The por t’s fiscal year runs begins July 1 and runs through June 30 ) “Our growth is being driven by the confidence our customers and the cargo owners have in our ability to process their ships and cargo swiftly, safely and efficiently,” said Stephen Edwards, the port’s CEO and Executive Director “There were some challenges, but we adapted and delivered real value to all of our por t users and the result is an increasing demand for the ser vices of The Por t of Virginia Our labour par tners and the entire por t team performed at a very high level and the result is a record-setting fiscal year ”
Shipping industry to remove Indian Ocean High Risk Area
Following more than ten years of effective threat-reducing counter-piracy operations the shipping industr y has removed the ‘Indian Ocean High Risk Area’ (HRA) Notification of this action was forwarded in a submission in August to the International Maritime Organization (IMO) for the next meeting of the Maritime Safety Committee scheduled to star t on 31 October 2022. The removal of the HRA reflects a hugely improved piracy situation in the region, largely due to concer ted counter-piracy efforts by many regional and international stakeholders No piracy attacks against merchant ships have occurred off Somalia since 2018 The IMO has been informed of the decision made by International Chamber of Shipping (ICS), BIMCO, International Marine Contractors Association (IMC A), INTERC ARGO, INTERTANKO and Oil Companies International Marine Forum (OCIMF) The removal of the HRA will come into effect at 0001 UTC on 1 Januar y 2023, allowing char terers, shipowners and operators time to adapt to the changed threat from piracy.
Volume growth for DP World DP World Limited handled 20.2 million TEUs across its global portfolio of container terminals in the second quarter of 2022, with gross container volumes increasing by 2 9% year-on-year on a repor ted basis and 3 5% on a like-for-like basis. Volume growth in Q2 22 was driven by terminals in Asia Pacific , Americas and Australia Jebel Ali (UAE) handled 3 6 million TEUs in Q2 2022, up 3 5% year-on-year On a H1 2022 gross basis, DP World handled 39 5 million TEUs
n e w s p o r t & t e r m i n a l July/August 2022 World Port Development 13 RTGs/RMGs T he latest mar ket news and pr oduct developments... PLUS Spain/Por tugal por ts US West Coast por ts For klift tr ucks Bulk ter minals Spr eader s A round-up of the latest news... International Journal for Port Management W O R L D P O R T D E V E L O P M E N T NEXT MONTH Don’t miss out . To make sure you get the next issue of World Por t Development subscribe TODAY. Email subscribe@worldportdevelopment .com
VDL
Courtesy:
Courtesy: Konecranes
Courtesy: Port of Los Angeles
12th International Conference & Exhibition
2 0 2 3
28 & 29 March 2023 R E G I S T E R T O D AY F U R T H E R I N F O R M A T I O N V I S I T W W W . M C I M E D I A . C O M
Savannah Convention Center, Savannah, Georgia, USA
Specially designed for representatives from operations, maintenance and engineering and those involved in the ef fective development and operation of container por ts and terminals. An exhibition comprising a select group of elite providers enables companies to reach a focused high-level audience, showcase products and network with potential, new and existing clients.
SC Por ts achieves record fiscal year
South Carolina Por ts achieved a record fiscal year 2022 while maintaining fluidity for customers and the US Southeast supply chain “Through well-planned, targeted investment, South Carolina Por ts has positioned itself as a top driver of South Carolina’s economy, ” Governor Henr y McMaster said “Our investments into critical por t infrastructure have attracted world-class companies to South Carolina and helped our businesses thrive ”
SC Por ts handled 2 85m TEUs at Wando Welch Terminal, Nor th Charleston Terminal and Leatherman Terminal in FY 2022
SC Por ts saw a 12% uptick in cargo this fiscal year, with more than 164,000 additional containers moving through Charleston than the year prior
AD Por ts Group announced that it has signed a Memorandum of Understanding (MoU) with Hutchison Ports. As per the MoU, AD Ports and Hutchison Por ts will identify joint investment and business oppor tunities related to feedering, logistics, and por t activities across the GCC , Africa, and Asia. Additionally, the two organisations will form a par tnership to operate within Tanzania, where they will work closely together to explore oppor tunities to fur ther enhance the capabilities and market competitiveness of port operations across the East African countr y, including Dar Es Salaam Por t Potential areas of focus include improving ser vicing to several of Tanzania’s landlocked remote areas and neighbouring countries, cultivating more cargo sources, and the enhancement of existing suppor ting logistics and cargo processing facilities
Barcelona
breaks record for in the first half of
the year
The Por t of Barcelona broke the record for total cargo traffic in the first half of the year with movements of 36 3 million tonnes and a year-on-year increase in total traffic of 11%. The previous record dates from before the pandemic when traffic hit 34 5 million tonnes in 2019 This year ’ s figure exceeded that by 6% This was possible because , with the exception of vehicles, all major traffic closed this six-month period in positive territor y “This good news indicates that our hinterland companies are working well and are striving to recover pre-pandemic levels”, remarked Damià Calvet, President of the Por t of Barcelona. In addition to historically high total traffic , an impor tant milestone was achieved in container traffic , which registered its record best in a first half of the year Between January and June, 1 8 million TEUs passed through the port, with growth of 0.7%. The previous record was 1.7 million TEUs moved a year ago In dr y bulk, the por t closed the first six months of the year up 2 34 million tonnes - a year-on-year uptick of 3 2%
PSA Singapore drives digital transformation
In response to the growing need for supply chains to be more resilient and agile, PSA Corporation Ltd (PSA) has launched over 50 Application Programming Interfaces (APIs) to enable digital transformation and enhance digital integration within the haulage industr y in Singapore This is a significant push for the local haulier community towards information sharing and adoption of new technologies to streamline operations and processes With these APIs, the hauliers’ existing in-house systems can be digitally connected with PSA’s Por tnet®, streamlining and automating their work processes including por t documentation. Portnet® is a nation-wide business to business port community solution that provides real-time and detailed information on all por t, shipping, and logistics processes The need for manual documentation will become a thing of the past, as digitalised processes enables greater efficiency, reliability, timeliness and transparency
n e w s p o r t & t e r m i n a l January/February 2016 World Port Development 15
AD Por ts Group and Hutchison Por ts ink MoU to form strategic par tnership
Claire Instone reports…
ustralia is a key player in international shipping, with it being an island nation the countr y ’ s por ts are critical, with 98% of the nation’s trade volume moving by sea Herein, I bring readers an over view of the handling figures at the major por ts of the ‘land down under’ alongside highlighting some of the major projects taking place at Brisbane , Melbourne and Hedland
The numbers
To star t, let’s take a quick look at the numbers in terms of container throughput:
- Australia’s c losest por t to Asia, Darwin Por t, processed around 20,000 TEUs in calendar year 2021.
- The Por t of Por t Hedland, operated by Pilbara Por ts Author ity, handled in the region of around 15,000 TEUs in 2021
- Handling pretty muc h all of the container trade for Western Australia, Por t of Fremantle saw in excess of 778,000 TEUs dur ing 2021
A u s t r a l i a n p o r t s i n v e s t a n d e x p a n d A
- Por t of Br isbane - one of Australia’s fastest growing container por ts and the state’s largest multi-cargo por t - had a ver y productive year, processing 1,554,000 TEUs in CY 2021
- The largest container por t in the state of New South Wales , Por t Botany hit a total throughput in the region of 2,700,000 TEUs in 2021
- The countr y ’ s largest por t for container ised cargo, Melbourne , ac hieved 3,278,635 TEUs for container handling in 2021
Brisbane’s new terminal and park Histor y was made at the Por t of Brisbane recently, with the new Brisbane International Cruise Terminal (BICT) welcoming its first ever cruise vessel to the facility The arrival of P&O Cruises’ Pacific Explorer ushered in a new era for cruising in Queensland
“It’s been a long wait, but we are extremely proud to have finally welcomed the Pacific Explorer to the new, $177 million Brisbane International Cruise Terminal,” Por t of Brisbane CEO Neil Stephens said.
In addition to the opening of the new terminal, the maritime hub - located at the mouth of the Brisbane River - has also welcomed a new container park project by global logistics operator MEDLOG with the signing of a 30-year lease on a 7.3ha site on Fisherman Islands When operational, it will be one of the world’s most automated container parks, incorporating high-end technolog y to deliver world-class standards in operation and safety
The facility is expected to be in use by the third quar ter of this year. As is standard in all new developments at the port, it will incorporate sustainable design elements including a solar installation and use of low carbon concrete
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“MEDLOG’s expansion into Queensland and its new home at Por t of Brisbane speaks volumes about its confidence in the Por t being the right place to suppor t its long-term growth Por t of Brisbane is on a journey to become Australia’s premier por t and logistics hub; welcoming industr y leaders such as MEDLOG plays a key role in ensuring the Por t of Brisbane achieves this vision and continues to deliver for the Queensland economy and community well into the future , ” said Stephens.
Melbourne’s extension and rail transformation projects
Por t of Melbourne has confirmed works are taking place at Webb Dock East to reduce por t congestion, improve efficiency and accommodate larger ships. The project involves demolishing a redundant section of concrete and extending the quay line by 71 meters The contract for the works has been awarded to Fitzgerald Constructions Australia, with completion scheduled for Q3, CY2023 Por t of Melbourne CEO Saul Cannon made the
announcement at Webb Dock East, and was joined by CEO of VICT, Tim Vancampen and Managing Director of ANL, Shane Walden. VICT is also investing in additional infrastructure to suppor t the market with faster vessel turn around and additional slots for their landside customers Cannon says the project is an important part of a 30-year investment strategy, designed to create a more efficient and productive por t that helps to strengthen Victoria’s economy
“Now more than ever, we need to make sure we get essential goods delivered to hospitals, businesses, schools and homes We are seeing a rising number of larger vessels calling at the por t and our current infrastructure at Webb Dock East at times does not allow for two ships to berth at the same time For example, this project will enable two larger vessels to berth at the same time at this part of the port, reducing wait times for the ships to dock,” he said.
Webb Dock East was designed as a two-berth terminal. This project will restore Webb Dock East’s intended design capacity In addition to these works, the por t also confirmed that its Por t Rail Transformation Project (PRTP) is forging ahead, with another milestone achieved with the official naming of a new permanent two-way, two-lane road connecting Dock Link Road and Mullaly Close/Coode Road. The new road has been named Intermodal Way, and is a reflection of the integration of maritime , rail and road freight modes which all converge at the por t to seamlessly move the vital cargo which suppor ts the operation of our communities, State and the nation
Upon its completion this November, this new road will provide an uninterrupted connection for movement of containers between Dock Link Road and the wider por t area PRTP involves the construction of a new rail terminal interfacing with the Swanson Dock East International Container Terminal
The rail terminal will include two new sidings that can handle 600-meter long trains
Common user rail infrastructure will also be upgraded “We have invested over $125m in the project, and it shows our commitment in meeting the growing demand for better rail freight solutions,” said Cannon “The project will see more containers moved by rail more efficiently, by-passing roads in inner Melbourne ”
Major investment at Hedland
In recent months it was announced that the McGowan Government will allocate $78 million towards the Lumsden Point development to grow capacity at the Por t of Por t Hedlanddiversifying trade , driving investment and creating jobs Lumsden Point will facilitate the expor t of batter y metals such as lithium and copper concentrates, the import of renewable energ y infrastructure , including wind turbines and blades, as well as support the rapid growth of direct shipping ser vices to the Pilbara
The upcoming works will include construction of seawalls to form laydown areas adjacent to the future wharf, as well as a causeway to connect the wharf and laydown area to the proposed logistics hub The works will also enable dredging of the ber th pocket and turning basin. Growing the capacity of Pilbara Por ts has been identified by the independent Infrastructure Australia as a national priority Lumsden Point forms par t of the recently completed Port of Port Hedland Development Plan Review, which was under taken in order to maximise expor t capacity at the por t. Works are expected to star t later this year
“This critical economic infrastructure will enable the expansion of direct shipping services from Asia to the Pilbara, with the Port of Port Hedland seeing an increase in container v olumes over the past 12 months, resulting in lower costs for businesses and consumers Lumsden Point will become the main expor t pathway from the Pilbara for battery metals and minerals,” states Pilbara MLA, Kevin Michel
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Port Botany.
(Photo credit: DP World)
Melbourne is working on Webb Dock East
(Photo credit: Port of Melbourne)
P S A s p e a r h e a d s u s t a i n a b l e t r a d e
Claire Instone takes a look at how PSA are playing an active role in contributing to sustainability whilst driving innovation, including details of Singapore’s first Energy Storage System.
With flagship operations in Singapore and Antwerp, PSA’s global network encompasses over 50 locations in 26 countries around the world PSA International Pte Ltd (PSA) handled record container volumes of 91 5 million TEUs at its por ts around the world for the year ending 31 December 2021
The Group’s volume increased 5.6% over 2020, with flagship PSA Singapore - the world’s largest container trans-shipment hub handling about a fifth of all trans-shipped containerscontributing a record 37.2 million TEUs (+1.6%) and PSA terminals outside Singapore handling 54 3 million TEUs (+8 4%)
Tan Chong Meng, Group CEO of PSA, said, “The world in 2021 continued on its rollercoaster ride with widespread supply chain disruptions and congestions coupled with sustained recovery in global trade and demand Despite the multiple hurdles posed by the
pandemic , PSA contributed to keeping supply chains safe and open worldwide Over the past two years, we have ridden the waves of the COVID-19 crisis to inculcate in our people greater agility and alignment towards the need for change Looking ahead in 2022, supply chain issues are expected but there are opportunities in the crisis - our continued relevance will depend on our ability to seize them ”
Big responsibility
As a leading por t group and trusted par tner to cargo stakeholders, the organisation has to ensure it meets the highest standards across the board As such, for more than four decades, PSA has continuously developed and upgraded its container handling infrastructure, pioneered new systems and processes and streamlined operations to meet the rapid growth
However, with such growth and innovation comes great responsibility Plans and operations need to be executed and run sustainably alongside responsible maritime practices.
As such, PSA is constantly working to deepen its commitment to sustainability and drive decarbonisation of the shipping ecosystem
Speaking on PSA’s commitment in this area, Meng points out that the organisation is working to stay ahead of the cur ve “PSA will continue to seek win-win par tnerships and innovate beyond por t operations to provide more efficient and resilient cargo solutions that benefit the greater supply chain ecosystem and catalyse the shift towards sustainable trade . ”
Staying true to its word, in recent months PSA has announced myriad projects aimed at driving environmental stewardship which include green initiatives, reducing carbon footprint and enhancing energ y efficiency.
Spearheading sustainable trade
In June, the operator confirmed it successfully completed a joint pilot project to integrate and enhance the flow of containers between two PSA facilities - Keppel Distripark (KD) and the On-Dock Depot (ODD). Executed in par tnership with Orient Overseas Container Line Limited (OOCL), the paves the way for fur ther carbon footprint reduction and will enhance productivity for Singapore’s haulage community In alignment with its overall decarbonisation effor ts, PSA initiated this
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(Photo credit: PSA Corporation Ltd)
logistics solution to reduce overall trucking distance for empty container collection and returns within Singapore and have been working closely with shipping lines and the local logistics community The enhanced flow of empty containers between KD and ODD can reduce an average of 93% of kgCO2e (kilogram of carbon dioxide equivalent) per trip due to the significantly shor ter distance
“The urgency to decarbonise the world’s logistics value chains has never drawn more attention internationally and within the industry. This pilot trial is indeed one of the milestones along our decarbonisation journey, and we are keen to establish additional long-lasting sustainability collaborations with our business partners and customers,” states Richard Hew, Managing Director of OOCL (Singapore)
Moreover, in back in May, PSA expanded its collaboration with CMA CGM with a new digital solution to reduce carbon footprint. The ‘Opt-E-Arrive’ will enable CMA CGM vessels to arrive just-in-time at ber th at terminal, skipping the anchorage stop - an innovative solution to reduce greenhouse gas emission through fur ther optimisation of bunker consumption An annualised bunker savings of 4 % to 7 % for CMA CGM vessels arriving in Singapore is expected to be achieved with the digital solution
Another success in greening supply chains was also reported in May, following PSA’s work with Ocean Network Express Pte. Ltd (ONE) to use reclaimed refrigerant gas from reefer containers PSA is the first in Southeast Asia to commence trials on the use of reclaimed refrigerant gas for reefers, with ONE being the first shipping line to successfully complete the trials using their reefers with PSA Recycling refrigerant gas effectively saves about 4,000kg of carbon emissions per reefer, which is equivalent to the emissions from driving a normal internal combustion engine car for close to a year
Following the successful trials with ONE, PSA looks forward to extending this green initiative to other shipping lines and partners To further suppor t the push towards sustainability, PSA will recover the commonly used refrigerant gas that is being released during the maintenance and repair works of reefers “PSA is one step closer in ‘greening up ’ supply chains and shaping the future of Singapore as an innovative and sustainable global maritime hub,” says Ong Kim Pong, Regional CEO Southeast Asia, PSA
Singapore’s first ESS
Most recently in July, PSA confirmed it has deployed Singapore’s first Energ y Storage System (ESS) to enable more energ y efficient por t operations at Pasir Panjang Terminal and will be operational in Q3 2022. The project is part of the USD8 million partnership between the Energy Market Authority (EMA) - a statutory board under the Singapore Ministr y of Trade and Industr y - and PSA to transform PSA’s energ y usage in por t operations through the use of smar t grid technologies and energ y management systems. The ESS is part of the Smart Grid Management System (SGMS) which has the potential to improve the energ y efficiency of port operations by 2.5% and reduce the por t’s carbon footprint by 1,000 tCO2e per annum, the equivalent of removing around 300 cars off the road annually
Por t operations involve the use of energ yintensive equipment such as cranes and prime movers. Due to the dynamic nature of por t activities, the energ y demand can fluctuate throughout the day EMA and PSA have awarded a consor tium led by Envision Digital to develop an SGMS which includes an ESS and solar photovoltaic panels managed by Envision Digital’s EnOSTM
The EnOSTM platform uses machine learning to provide real-time automated forecasts of the terminal’s energ y demand. This enables long-term planning of por t assets, shor t-term scheduling and real-time energ y management within the terminal to reduce overall energ y costs and carbon footprint
Whenever there is a forecasted surge in energy consumption, the 2 megawatt/2 megawatt-hour batter y ESS is activated to supply energ y to help meet demand With this enhancement to Pasir Panjang Terminal, spikes in energ y demand of the por t will be minimised.
“Electricity demand will grow in the next decade with increasing electrification The adoption of innovative demand-side technologies such as smar t energ y management systems and energ y storage systems will help us optimise our energy supply and power grid capabilities. We are pleased to par tner PSA to suppor t this project Innovative digital solutions such as this project will play a par t in making our energ y systems more efficient and resilient,” states Jeanette Lim, Director of the Industr y Development Depar tment at EMA
Going forward, insights from the SGMS can also be applied for advanced energ y management and optimisation at the Tuas Port, which would be the world’s single largest fully automated terminal upon completion in the 2040s.
“As a premier hub por t driving innovation, digitalisation and sustainability, PSA can play an active role in contributing and co-creating Singapore’s smart grid architecture and energy systems As PSA enhances efficiency with por t automation, we will continue to drive collaborative innovation with our par tners for greater resilience in our energ y future , ” confirms Alvin Foo, Head of New Technologies and Sustainability at PSA
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Singapore’s first Energy Storage System has been installed at PSA’s Pasir Panjang Terminal The photo shows the battery modules within the battery container (Photo credit: PSA Corporation Ltd)
T h e n e t - z e r o o p p o r t u n i t y f o r p o r t s i n S c o t l a n d
Gordon Feller reports...
Ports are quite literally at the frontier of Scotland’s trading arrangements As well as providing the foundation for Scotland’s trade with the world, the por ts industr y plays an impor tant role in connecting communities in the countr y Ferries are a vital par t of the transpor t network and each year por ts in Scotland handle 10 5 million domestic ferr y passengers travelling both within Scotland as well as to and from Nor thern Ireland.
Here are a few key facts about Scottish ports:
• 95% of trade comes through seapor ts
• 67 million tonnes of freight handled by Scottish por ts, 14% of the UK’s total This is equivalent to 13 tonnes of freight per person, double that of England.
• 30,000+ commercial vessels called in Scottish por ts in 2015, including 21,000 cargo vessels
• 25% of Scotland’s total annual freight tonnage is transpor ted by water
Ports are important not just in their traditional cargo handling roles.They have a long experience in suppor ting offshore energ y, fishing, cruise and leisure markets They provide vital locations for the development of offshore energy which are a key par t of Scotland’s energ y, growth and decarbonisation agendas The Scottish Por ts Group published a repor t outlining six key policy priorities: connectivity, energ y transition, consenting and the environment, cruise , Freepor ts and fishing
The Scottish Por ts Manifesto includes a number of key requests of the Scottish Government, including:
• A new road investment programme to ensure that ‘last mile’ connections to por ts match the quality of Scotland’s por t infrastructure and reduce bottlenecks
• A review of the wider marine protection framework would be welcome to ensure that it protects and enhances habitats and species effectively without delaying sustainable development
• To support the return to cruising in Scotland when it is safe to do so Caution is welcomed and expected but Government must listen to assurances regarding their safe practices and COVID-19 operation procedures.
• For the Scottish Government to swiftly work with counterpar ts within the UK
Government to launch bidding for Freepor t status at their earliest oppor tunity, in order to minimise fur ther delay and mitigate displacement
Stuar t Cresswell, Chair of the Scottish Por ts Group and Por t Manager, Ayr, Troon & Silloth (Associated British Por ts), said that: “Scottish ports, and the key workers within them, play a fundamental role in ensuring vital supplies and provisions are delivered to the people of Scotland - a fact which we believe to be even more visible in the wake of the COVID-19 pandemic ”
According to the repor t, the Scottish Government has developed a strateg y to create a positive environment for Scottish maritime businesses and institutions to grow and prosper within a competitive international market The countr y ’ s por ts operate as commercial businesses, and they are working to adapt and develop to meet the demand of the maritime industr y
They identified the need for new development to suppor t the various sectors using them. Some examples include:
• The largest trust por t investment in the UK will see Aberdeen South Harbour completed and open for business in October The £350 expansion - the largest marine infrastructure project in the UK - was meant to open last year but has suffered months of delay thanks to Covid and the chief controller pulling out Back in June , principal contractor Dragados pulled out of the scheme by mututal agreement. Just recently in Januar y, Scottish National Investment Bank allocated a £30m load to the project.
• A new fish market in Lerwick with boats
• Development of an ultra-deep-water por t at Dales Voe in Lerwick is aimed at bringing the largest decommissioning projects to Scotland
• Stornoway’s development of a new multifunctional deep-water ber th accommodating the largest cruise vessels as well as general cargo, renewables industr y, oil & gas and ferr y infrastructure
Scottish Government recognises the impact the maritime sector has on the environment, and is working with shipbuilding industries at the forefront of devising technolog y advances to increase ship efficiency and create cleaner solutions
How can how Scotland’s ports and harbours tap into the potential created by the development of offshore wind?
Some of the answers are contained in a special repor t, entitled: Por ts for Offshore Wind.
Having launched Scotland’s first offshore wind leasing round for a decade , ScotWind Leasing Corp is set to kick start Scotland’s new generation of offshore wind farms and build new demand for operations and maintenance facilities to suppor t major projects
The special research repor t, carried out by leading technical consultants Arup, found that while Scotland already has a strong and thriving ports sector, there are various steps that could be taken to maximise the future potential of Scottish por ts to host the major offshore wind projects set to come to Scotland
These steps, if applied successfully, might help to ensure that Scotland’s por ts suppor t the major expansion of offshore wind in Scotland, and help the countr y take a major stride towards Net Zero
Among the core recommendations contained in the special repor t it’s wor th noting that these three stand out:
• Taking steps to increase the por t capacity that is suitable for large scale offshore wind developments
• Establishing a national strategic approach to how offshore wind port facilities are developed.
• Developing new optimal operation and maintenance facilities which open up the right oppor tunities for Scotland’s por ts.
The Director of Marine for Crown Estate Scotland, Colin Palmer, said that: “this is an impor tant piece of work which should act as a roadmap for both public and private sectors in Scotland to ensure that our por ts and offshore wind sectors collaborate effectively and maximise the potential that offshore wind can bring to communities Scotland has fantastic por t facilities as well as some of the best offshore energ y resources in the world; making sure these two are successfully aligned can help us take a giant leap towards our Net Zero commitments, and help to build a green economic recover y for Scotland ”
July/August 2022 World Port Development 21 p o r t s u r v e y s c o t l a n d
Environment Secretary Roseanna Cunningham said that: “Scotland is already a world-leading destination for the development of low carbon energ y and this study strengthens our status as a hub for global players It also demonstrates the manufacturing and supply chain capabilities in Scotland that will help make a significant contribution to meeting our world-leading climate change targets and support the creation of green jobs. Encouraging, cross-sectoral collaborations in areas like energ y and transport exemplify the opportunities available through our ‘Blue Economy’ model, and the impor tant role it will play in both our economic recover y from coronavirus and our path towards net-zero.”
In Februar y of this year, during a visit by PM Boris Johnson to Scotland, the Scottish and UK governments agreed to establish two green freepor ts in Scotland This comes at a time when the UK government is promoting special economic zones, offering tax breaks and lower business tariffs, as one par t of its “levelling-up” agenda
The idea has become embroiled in politics The Scottish Greens criticised the plans as “greenwashing” And they said it amounted to nothing more than a “corporate giveaway”
If all goes according to plan, the open competitive bidding process begins in the spring of this year Advocates for this approach are hoping that the new sites will open in 2023. Ministers from both the Scottish and UK governments will have a say in the assessment and selection process Previously, after a number of sites were announced for England, these two governments were unable to agree on any plans to establish freepor ts nor th of the border.
Scottish ministers later said to the press that they would pursue an alternative “ green freepor t” model, with additional standards around jobs and climate targets
Scotland’s Finance Secretar y Kate Forbes had this to say in Februar y: “We have been able to reach an agreement on a joint approach that enshrines the Scottish government’s commitment to achieving net zero and embedding fair work practices through public investment. The establishment of green freepor ts will help us create new green jobs, deliver a just transition and suppor t our economic transformation ”
The UK government has committed funding of £52m to the project and bidders will have to pledge to reach net zero by 2045. However, in the first major split from the SNP since they signed a power-sharing deal last year, the Scottish Greens criticised the plans as “greenwashing”.
In pushing forward with their strong criticisms of the plan, the Finance spokesman Ross Greer told BBC Radio's Good Morning Scotland programme that his par ty wanted nothing to do with “these so-called green freepor ts” Greer added this in his remarks to the press: “There is nothing genuinely green about them Freeports are a really effective way to give tax relief and throw public money at multinational companies who are already doing their best to avoid tax The SNP used to oppose freeports for exactly the same reason Scottish Greens still do Internationally, freepor ts are associated with crime, money laundering, smuggling, low wages ”
Fur thermore , Greer said that there was “ no actual solid requirements” to meet climate targets or stick to fair work practices, and that it was “naive” to expect large corporations to adhere to these rules
Secretar y Kate Forbes told BBC Scotland that all green freepor t applicants would have to stick to their commitments to net zero targets and fair work: “If a bidder fails to do so, we would look at this very carefully. We would expect bidders who set out promises to meet those promises They will be required to deliver robust decarbonisation plans, demonstrating how they will move to net zero A bidder will not win without it ”
Under the UK government’s model, freepor ts are centred around at least one air, rail or sea por t, but can extend up to 28 miles (45km) beyond. Forth Ports - which owns and operates seven ports on the east coast of Scotland - said it would be bidding to create a Fir th of For th green freeport. Other bidders have not yet been announced But, in July last year, the Scottish government named nine areas being considered - Shetland, Orkney, Aberdeen with Peterhead, Montrose, Dundee, Cairnryan, the Firth of Forth and Glasgow city region A Cromar ty Fir th consortium is also understood to be interested
Freepor ts were one of PM Johnson’s big ideas to “level up ” the countr y He thought they’d bring new investment and jobs to areas that lag behind. But he had to change their name - they’re now “ green freepor ts” hereto win backing from the Scottish government
These low tax zones could give rise to a little Singapore on the Cromar ty Fir th, where goods can be impor ted, assembled and expor ted without the usual taxes and paperwork Firms inside the freepor t could pay lower rates of VAT and employment tax.
Nicola Sturgeon’s team warns that could give rise to low wage , low value zones, which water down workers’ rights and rules which protect the environment So she’s insisted that firms inside green freepor ts should pay the living wage , and commit to net-zero targets on climate change , and inclusive growth in local communities
If freepor ts don’t offer incentives, why would employers want to move there at all?
If Scottish freepor ts are regulated more , will they be able to create new jobs, or compete with their English counterpar ts?
The Scottish government wants to avoid a stampede of firms moving into a low-tax zone , without adding anything to the Scottish economy So it’s happy to pour cold water on one of Boris Johnson’s dreams
Ian Murray, Labour’s Shadow Scottish Secretary, said the agreement had been “delayed for months because the two governments disagreed over the name . As a result of their petty point-scoring, regions in England already have a head star t " The Scottish government and the UK Treasury will use their tax powers, including rates relief, to support the freeports
Last year, the Scottish government said UK ministers risked undermining devolution if they set up the freepor ts in Scotland or Wales without the backing of devolved governments.
(Ex) PM Johnson said that he was “delighted that people across Scotland will reap the benefits that will come from having two new green freepor ts Freepor ts will help to accelerate our plan to level up communities across the whole of the United Kingdom… They have the power to be truly transformational by creating jobs and investment oppor tunities to enable people to reach their potential ”
Aberdeen Harbour will open in late 2022
Stornoway Harbour is also scheduled to be opened in late 2022
World Port Development July/August 2022 22 p o r t s u r v e y s c o t l a n d
Policy support
- In the Union Budget 2022-23, the total allocation for the Ministr y of Shipping was Rs 1,709 50 crore (approx USD 223 million)
- In July 2021, the Marine aids to Navigation Bill 2021 was passed by the Parliament, incorporating global best practices, technological developments and India’s obligations in this field.
Competitive advantage
- India has a coastline which is over 7,517km, interspersed with more than 200 por ts.
- Most cargo ships that sail between East Asia and America, Europe and Africa pass through Indian territorial waters.
Strong suppor t
The Indian Government is highly active in suppor ting the por ts sector It has allowed Foreign Direct Investment of up to 100% under the automatic route for por t and harbour construction and maintenance projects. It has also facilitated a 10-year tax holiday to enterprises that develop, maintain and operate por ts, inland waterways and inland por ts.
B r i g h t f u t u r e f o r I n d i a n p o r t s
B r i g h t f u t u r e f o r I n d i a n p o r t s
The India Brand Equity Foundation (IBEF) is a Trust established by the Department of Commerce in India. Itsprimary objective is to promote BrandIndia. In May, the organisation releaseda reporton the Indianportindustry. Herein, WPD present the findings…
ndia, today, is well established as a credible business par tner, preferred investment destination, rapidly growing market, provider of quality ser vices and manufactured products; and, stands on the threshold of unprecedented growth.
According to the Ministr y of Shipping, around 95% of India's trading by volume and 70% by value is done through maritime transpor t. India has 12 major and 205 notified minor and intermediate por ts Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country The Indian por ts and shipping industr y play a vital role in sustaining growth in the countr y ’ s trade and commerce India is the sixteenth-largest maritime country in the world with a coastline of about 7,517 kms India’s key por ts had a capacity of
1,561 million tonnes per annum (MTPA) in FY21 Moreover, India's merchandise expor ts in FY22 were at USD 417.8 billion, up 40% from the previous year In October 2021, India’s merchandise expor ts grew 43 05% year-on-year to reach USD 33 65 billion
According to the repor t, there are four key drivers for the por t industr y in India:
Robust demand
- The por ts sector in India is being driven by high growth in external trade .
- In FY22, all key por ts in India handled 650 52 million tonnes of cargo traffic
Attractive opportunities
- The key por ts are expected to deliver seven projects wor th more than Rs 2,000 crore (approx. USD 274 million) on a public-private par tnership basis in FY22
- The Finance Minister proposed to double the ship recycling capacity of 4.5 million light displacement tonnes (LDT) by 2024; expected to generate additional employment oppor tunities in India
Moreover, the Government has taken several measures to improve operational efficiency through mechanisation, deepening the draught and speedy evacuations Some of the major initiatives taken by the government to promote the por ts sector in India include:
- In November 2021, the Union Minister for Por ts, Shipping and Waterways & Ayush, Sarbananda Sonowal, inaugurated the new Radars and Vessel Traffic Management System of Cochin Por t Trust. The VTMS (Vessel Traffic Management System) commissioned in Cochin Por t in 2009 has been upgraded with a stateof-the-ar t system consisting two new radars, one AIS Base station, three VHF Radios and associated software & hardware installed at a cost of Rs 5 8 crore (USD 772,161 66)
- In November 2021, Sonowal inaugurated the simultaneous launching of five vessels at Cochin Shipyard Limited (CSL).
- In November 2021, the Union Minister of Culture and Tourism, G Kishan Reddy, announced that the centre has sanctioned Rs. 100 crore (approx USD 13 million) for Visakhapatnam por t cruise terminal
- The Draft Indian Por ts Bill 2021, which was circulated in July 2021, aims to centralise the administration of minor ports that are currently managed by state governments.
July/August 2022 World Port Development 23 p o r t s u r v e y i n d i a
I
- The Inland Vessels Bill 2021 was approved by the Lok Sabha in July 2021 Instead of distinct regulations created by the states, the bill attempts to include a single legislation for the country The registration certificate issued under the new law will be valid throughout the countr y and state approvals will not be necessar y The bill also establishes a single database for recording vessel and crew information on an Internet por tal.
- In July 2021, the Marine Aids to Navigation Bill 2021 was passed by the Parliament, incorporating global best practices, technological developments and India's international obligations in this field.
- In June 2021, the Gujarat government provided approval to build a new jetty wor th an estimated ~Rs. 192 crore (approx. USD 25 million) at Navlakhi por t which has been in operation since 1939
- In June 2021, the Ministr y of Por ts, Shipping and Waterways and Ministry of Culture signed an MoU for cooperation in development of National Maritime Heritage Complex in Gujarat
- In June 2021, the Ministr y of Por ts, Shipping and Waterways and Ministr y of Civil Aviation signed a memorandum of understanding (MoU) to develop sea plane ser vices in India
- On May 10, 2021, JNPT and New Mangalore Por t handled 120 tonnes of medical oxygen on a priority basis owing to the pandemic .
- India is expected to begin full operations in Iran’s Chabahar Por t by the end of May 2021 India is building two terminals at the por t and will operate them for 10 years
- In Union Budget 2020-21, the total allocation for the Ministr y of Shipping was Rs 1,702 35 crore (approx USD 233 million)
The key por ts are expected to deliver seven projects wor th more than Rs 2,000 crore (approx USD 274 million) on a public-private par tnership basis in FY22. Private sector investments in por ts have steadily increased over the last five years, touching an all-time high of USD 2.35 billion by 2020.
- In Union Budget 2021, the government announced subsidy funding wor th Rs. 1,624 crore (approx USD 222 million) to Indian shipping companies to encourage merchant ship flagging in the countr y
- In Februar y 2021, the Major Por t Authorities Bill, 2020 was passed by the Parliament of India. The bill aims to decentralise decision-making and reinforce excellence in major por t governance
Myriad investments and developments
In addition to steps taken by the government, the repor t also highlights myriad projects and plans that are being put in place , or that have recently been executed, in order to drive the Indian por t and shipping industr y forward:
- India’s plan to invest USD 82 billion in por t projects by 2035
- Indian por ts received cumulative FDI inflow wor th USD 1 63 billion between April 2000 and June 2021
- In October 2021, the Syama Prasad Mookerjee Por t, Kolkata, gave impor ters the oppor tunity to bring in vessels at the deep draughted anchorages located at Sagar, Sandheads and X Point
- In October 2021, Adani Group announced that it wants to make Adani Por t a net-zero carbon emitter by 2025 and power all its data centres with renewable energ y by 2030. Jawaharlal Nehru Por t Trust (JNPT) Special Economic Zone became the first of its kind operational port-based multi-product SEZ in India.
- The Competition Commission of India (CCI) approved Adani Por ts and Special Economic Zone’s proposed acquisition of 10 40% equity investment in Gangavaram Por t in September 2021 The 10 4% equity shareholding will be bought from the government of Andhra Pradesh
- APSEZ (Adani Por ts and Special Economic Zone) plans to become the world's largest private por t company by 2030
- In July 2021, Adani Ports & Special Economic Zone stated that it has priced a USD 750 million senior unsecured dollar notes issuance with 20-year and 10.5-year tranches, with fixed coupons of 5 0% and 3 8%, respectively
- In June 2021, APSEZ handled cargo volume of 75 69 MMT, registering a year-on-year growth of 83%, in the first quar ter of FY 21-22
- In July 2021, India’s merchandise expor ts reached USD 95 billion in the three months ended June
- In April 2021, the Competition Commission of India (CCI) approved the plan to acquire 89.6% Gangavaram Por t Limited by APSEZ.
- In April 2021, Adani Por ts signed an agreement with Vishwa Samudra Holdings Pvt Ltd , to acquire 25% stake of Adani Krishnapatnam Por t Limited (Krishnapatnam Por t) for a consideration of Rs 2,800 crore (approx. USD 226 billion).
- In March 2021, APSEZ announced plans to acquire 58.1% stake in Gangavaram Por t Limited for Rs 36 04 billion (approx USD 493 million) The por t is currently owned by DVS Raju and family.
- In March 2021, Adani Por ts announced to par tner with John Keells Holdings and Sri Lankan Ports Authority to develop and operate the West Container Terminal of the Colombo Por t in Sri Lanka for 35 years
- In Februar y 2021, JNPT launched a solid waste management project as a par t of its green por t initiatives.
- In November 2020, Mormugoa Por t Trust (MPT), operator of the western Indian por t of Mormugoa, extended concessions on iron ore impor ts and expor t freight traffic until June 2021 to help ease India's iron ore shipping trade amidst the COVID-19 pandemic
- In November 2020, JSW Infrastructure completed the acquisition of Chettinad Group’s por t business for Rs 1,000 crore (approx USD 135 50 million) This acquisition will enable JSW Infrastructure to gain ownership and operational control of a deep draught international coal terminal and a bulk terminal at Kamarajar Por t Limited (KPL) as well as coal and bulk commodity terminal at New Mangalore Por t Trust (NMPT)
- In October 2020, APSEZ completed the acquisition of Krishnapatnam Por t Company Ltd (KPCL) for an enterprise value of Rs 12,000 crore (approx. USD 1.63 billion)
- In July 2020, Adani Ports and Special Economic Zone (SEZ) Ltd, launched an offshore bond offering, raising USD 750 million
- In Januar y 2020, DP World launched a new rail ser vice between Kochi and Bangalore to lower costs and reduce transit time between the two cities by >40%
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K a l m a r a n d K o n e c r a n e s c o n t i n u e t o t h r i v e d e s p i t e m e r g e r s e t b a c k
In March this year the merger of FinlandbasedKonecranes andKalmar was rejected, but both companies continue to thrive and maintain their position as competitors in the mobile container handling market. Thomas Francis reports…
Towards the end of March 2022, the UK Competition & Markets Authority rejected the planned merger of Finlandbased Cargotec (parent company of Kalmar) and Konecranes The completion of the planned merger would have required approvals from all relevant competition authorities from around the world
As a result, on 29 March 2022, Cargotec announced that the planned merger with Konecranes was cancelled Cargotec also revealed a new, refocused strateg y to drive sustainability and growth in profitable core businesses Par t of the strateg y was to star t planning an exit from the heavy crane business and aim to shift Kalmar’s focus towards ecoefficient mobile equipment including empty container handlers, reachstackers, forklift trucks, terminal tractors, straddle and shuttle carriers, Bromma spreaders as well as the entire Kalmar por tfolio of ser vices
In their half-year financial repor t Januar y-June 2022, Cargotec reported that the second quarter of 2022 was quite successful According to
Cargotec’s CEO, Mika Vehviläinen: “Our personnel did an excellent job in a challenging operating environment, making our good performance possible . Our orders received, order book and comparable operating profit reached all-time records Also our sales grew significantly compared to the comparison period.”
Vehviläinen also revealed that Cargotec progressed determinedly with their new strategy, after the planned merger was cancelled In May, the company announced plans to combine the strategic business units Kalmar Mobile Solutions and Kalmar Automation Solutions. Moving towards the next phase of Kalmar’s new journey, they would continue to drive electrification, automation, robotisation and digitalisation across the industr y “Our focus will be on solving our customers’ challenges in these areas through investments and innovation,” said Vehviläinen
Part of the new strategy was also to exit Kalmar from the heavy crane business and in the second quarter, an agreement with China-based Rainbow Industries Co Ltd (RIC) was signed, whereby Kalmar would transfer heavy cranes ’ related intellectual proper ties and assets to RIC This agreement would concern Kalmar rubber-tyred gantry cranes (RTG), rail-mounted gantry cranes (RMG), ship-to-shore cranes (STS) as well as automatic stacking cranes (ASC) which are currently assembled and manufactured at
RIC’s facility in Taicang, China However, Kalmar would continue to offer crane automation and crane related ser vices for its customers globally RIC has been Cargotec’s Original Equipment Manufacturing (OEM) subcontractor providing assembly ser vices for Cargotec’s business areas Kalmar and MacGregor since 2020 and prior to that Cargotec and Rainbow operated through a joint venture in China since 2013.
Konecranes
During the entire merger process Cargotec and Konecranes remained as fully independent, separate companies and competitors It is therefore no surprise that Konecranes, in their Januar y-June 2022 repor t, also announced some interesting developments The company repor ted that continued high order intake and deliver y capability issues, saw their order book break (again) a new record and was EUR 2 825 million at the end of June
But the repor t reflected concerns about the volatility of worldwide demand due to the war in Ukraine and COVID-19 having increased inflation and material availability concerns Component availability and other supply chain constraints, as well as COVID-19 related challenges, affected their revenues in all three segments of their activities in the second quarter Eliminating the impact of price increases, sales decreased year-on-year in comparable currencies
The repor t also touched on the good-overall long-term prospects related to global container handling as global container throughput continues to increase As a result, activity remained high within por ts, and Konecranes Por t Solutions’ orders grew by 47 3% in comparable currencies and totalled EUR404 million, including some large projects. In addition to material availability and COVID-19 related lockdowns, sales were again impacted by timing of customer deliveries and declined 2.0% year-on-year in comparable currencies As a result, adjusted EBITA margin decreased to 6 7% Despite the profitability decline , project execution remained on a good level.
In August 2022, Konecranes was busy delivering two Konecranes Noell Sprinter Carriers to Global Container Terminals (GCT) Bayonne , New Jersey, USA, as par t of a continuing modernisation and upgrade of equipment project. The two Konecranes Noell Sprinter Carriers on order are of the type NSC 624 E, lifting containers 1-over-1 in a horizontal transpor t
July/August 2022 World Port Development 25 c o n t a i n e r s h u t t l e
Konecranes Noell Sprinter Carrier
role They will reinforce the fleet of 17 Konecranes Noell Sprinter Carriers that GCT Bayonne already operates This manually operated fleet transpor ts containers between the quayside and the container yard, which comprises automated RMGs and manually operated RTGs, both supplied by Konecranes.
The Sprinter Carriers on order are equipped with eco-efficient Tier 4f diesel-electric drives that comply with the latest emission standards of the Environmental Protection Agency in the USA and the EU The machines will be equipped with diesel par ticulate filters that greatly reduce NOx emissions and soot particles Their control systems are intelligent, running the diesel engine in an optimum RPM range for maximum eco-efficiency The order was awarded back in September 2021
Also in September 2021, Hamburger Hafen und Logistik AG (HHLA), ordered an additional 11 Konecranes Gottwald automated guided vehicles (AGVs) for operations at its Container Terminal Altenwerder (CTA) in Hamburg, Germany They were ordered under a frame agreement with Konecranes and are par t of a long-term project to replace old diesel-electric AGVs with new ones powered by lithium-ion (Li-ion) batteries. Using advanced technolog y and a high level of automation, the CTA terminal in Hamburg is the world’s first container facility to be cer tified climate-neutral
“This AGV renewal programme is a big par t of how we are taking responsibility to protect the environment The transition to purely electric drive technolog y gives us the oppor tunity to charge the AGV batteries with electricity from renewable energ y sources, ” said Thomas Förster, Head of Terminal Technolog y, CTA.
The 11 Konecranes Gottwald AGVs on order are software-controlled container transporters that travel between the quay cranes and container storage yard They have an optimised design with low vehicle weight while providing high load capacities. Their Li-ion batteries provide cost-effectiveness combined with low environmental impact When power storage is low, they replenish their batteries by driving into any one of the 18 automated charging system (ACS) stations located around the terminal for fast charging. Deliver y is expected in early 2023 and when they arrive , the total number of Li-ion AGVs on-site will be 95
Konecranes has also completed their contract with Long Beach Container Terminal for 30 additional Konecranes Gottwald Automated Guided Vehicles (AGVs). The order, which was awarded back in March 2020, also included a Batter y Exchange System (BES), transponder navigation and a fence control safety system.
Before the arrival of the new units Long Beach Container Terminal (LBCT) operated already a
fleet of 72 lead-acid, battery-driven Konecranes Gottwald AGVs. In a separate order, Konecranes will also provide pre-engineering for a second BES that will be installed for redundancy reasons as par t of the final phase of the terminal’s construction It will have an improved design resulting from operational knowledge drawn from the initial BES.
“LBCT is ver y pleased with the performance of our first fleet of AGVs We will now be increasing this fleet as part of the completion of the final phase of the new terminal’s construction currently underway and scheduled to be finished in early 2022,” said Anthony Otto, President of LBCT LLC
LBCT uses the TEAMS Equipment Control System (ECS) from The Netherlands-based TB A Group (par t of Konecranes) to manage travel orders, optimise routes and avoid deadlock situations in the operation of the AGV fleet This system will be updated to reflect the expanded AGV fleet and its expanded operational range .
In June 2022, Konecranes announced it would offer the Li-ion batter y Konecranes Noell straddle carrier as a system, complete with charging station Similar Li-ion battery technology is used in Konecranes Gottwald AGVs, from
World Port Development July/August 2022 26 c o n t a i n e r s h u t t l e
Kalmar received an order from the Port of Virginia for their Hybrid Shuttle Carriers for the Virginia International Gateway.
which a large body of field experience has been drawn in terms of 24/7 operation and batter y lifetime .
The batter y AGV earned acceptance and became established in large fleets at major container terminals some 15 years ago Meanwhile, a transition from lead-acid to Li-ion batter y technolog y occurred, which was a major leap forward. Over the years, Konecranes has accumulated a large body of knowledge about batteries and electric power management This knowledge has been used to introduce batter y AGVs, hybrid RTGs, hybrid straddle carriers and a batter y-driven forklift truck, the E-VER. Now is the time for batter y-driven, large container handling machines according to Konecranes
Kalmar orders
Back in June, APM Terminals in Tangiers, Morocco, awarded Kalmar a repeat order for shuttle carriers for their next expansion programme . The first phase of the project consisted of 42 shuttle carriers between 2016 and 2020 As a next step in the collaboration, APM Terminals selected Kalmar to deliver 23 additional units - manually-driven, semi-automated hybrid shuttle carriers The latest batch of shuttles are in suppor t of APM Terminals’ expansion of their newest facility TM2 in Tangiers, Morocco
In addition, and this has been planned since 2019, APM Terminals has also completed an order for 62 Kalmar Hybrid AutoStrads for their Los Angeles facility This unique , eco-efficient, horizontal transpor tation solution operating between the vessels and truck lanes has removed significant safety risks and driven faster gate turntimes for the local customers during a period of unprecedented volumes in the por t.
In August 2022, Kalmar announced it was awarded a contract from the Por t of Virginia for 11 Kalmar hybrid shuttle carriers This large order is the sixth consecutive order of hybrid shuttle carriers from the deepwater por t on the US East Coast
All of the new units will be delivered to Virginia International Gateway (VIG), one of the por t’s primar y container terminals and capable of handling the biggest vessels in the Atlantic trade . The Por t of Virginia has been using Kalmar Hybrid Shuttle Carriers since August 2015
“The Por t of Virginia has already surpassed a 32% reduction in CO2 emissions since 2017, which is largely due to the long-term strategic decision to transition the shuttle carrier fleet to Kalmar hybrids,” said Rich Ceci, Senior Vice President of Technolog y and Projects, Por t of Virginia
In June 2022, Kalmar also repor ted orders for their Straddle Carriers including 12 diesel-electric straddle carriers to For th Por ts Limited Seven of the machines will be operated at the London Container Terminal (Tilbur y) and the remaining five at Forth Ports Grangemouth These new units are driven by a highly efficient diesel-electric power unit and offers excellent manoeuvrability, quiet operation and easy maintenance The spacious, ergonomic cabin and intuitive user interface improve productivity by ensuring that operators benefit from the best possible driving experience
They also comply with the latest exhaust emission regulations Delivery of the machines is scheduled to be completed by the end of 2022
The units to be delivered will be integrated into the Terminal Operation System via KalmarOne software , complemented by professional ser vices, maintenance and suppor t. “Kalmar’s fleet of semi-automated hybrid AutoStrad solution will help us reduce CO2 emissions and ensure high productivity as par t of our terminal modernisation initiatives,” said Jack Craig,Vice President, Global Head of Operations at APM Terminals
Once the machines are delivered in the third quarter 2023, the port will have altogether 103 Kalmar Hybrid Shuttle Carriers in operation between their two terminals
The new machines are a crucial next step in the Port of Virginia’s commitment to Net-Zero Carbon Emissions by 2040, and will directly replace the Kalmar diesel-hydraulic shuttle carriers that were delivered during the terminal’s grand opening in 2007
Earlier that month, it was revealed that Kalmar signed an agreement at the end of 2021 with NTB North Sea Terminal Bremerhaven GmbH & Co, Germany, to supply 12 hybrid Kalmar straddle carriers for their container terminal operations and that NTB complemented the order with an additional batch of 15 hybrid Kalmar straddle carriers in June 2022, bringing the order to a total of 27 straddle carriers “This investment in hybrid technology will help us pave the way for a more eco-efficient future at our terminal,“ said Sören Krüger, General Manager Finance and Administration, NTB
NTB North Sea Terminal Bremerhaven GmbH & Co (NTB) is one of the largest European container terminals handling over 3 million TEU annually, ser ving about 45 ships per week in Bremerhaven, using six ber ths for large ships and a container yard of more than 1 million square meters
July/August 2022 World Port Development 27 c o n t a i n e r s h u t t l e
Konecranes now offer Li-ion batteries on their range of AGVs
U N T Y I N G S U P P LY C H A I N S K N O T S : U S P O R T I N F R A S T R U C T U R E N E E D S P 3 s
Gordon Feller explains the benefits and drawbacks of using P3s to finance port infrastructure…
ince the passage of President Biden’s Infrastructure Investment and Jobs Act (IIJA) in November of last year, por ts have garnered a growing propor tion of the US focus on P3s.
During the US supply chain crisis, it’s become widely understood in state capitals that por t infrastructure contributes to a state’s economic development by reducing shipping time and cost, but the extent to which it does so depends on several factors, including the use of labour-saving technologies and methods for loading and unloading ships and the ability of trucks and trains to access por t facilities
Por t infrastructure projects are generally ver y costly, potentially straining the financial capacity of state and local agencies, including quasi-public port authorities with independent bonding and taxing powers. One prime example - which the Biden team regularly points to - is located in Florida: after the Por t of Miami announced plans in August, 2013 to issue $389 million in debt to finance major infrastructure improvements, Moody’s Investors Services “cut its rating to four steps above junk…citing the growing debt burden” (according to repor ting by “Bloomberg Politics” on September 10, 2013)
Other challenges facing por t infrastructure include competing against highways, bridges, and other types of public infrastructure for bond funds and, in the case of quasi-public por t agencies, laws limiting their ability to use new funding and procurement methods, including P3s.
P3s have been used to develop and operate different kinds of infrastructure , including highways and por ts As seen from the Biden team’s vantage point, the model P3’s specific terms and conditions will var y, but most will involve the private par tner in developing, maintaining, or operating the infrastructure in exchange for providing some or all the financing
The Biden Administration sees P3s as contracts between a public agency and a private entity to finance , develop, or operate public infrastructure , including por t facilities They are par ticularly attractive to public agencies that cannot generate the revenue needed to finance large-scale infrastructure
Within the framework of the Administration’s preferred form of P3, the private entity supplies some or all of the capital to develop the infrastructure In exchange for the private capital, the public agency allows the private entity to operate the infrastructure and keep some or all of the revenue it generates
Public agencies usually finance infrastructure by selling bonds to private investors and repaying them over a specified term with the revenue the agencies generate or funds which they receive from other sources
Negotiating a P3 requires the public and private par tners to sor t out their roles and identify their respective risks Risks for the public par tner include higher por t fees necessitated by private financing Those for the private par tner include contractual limits on the adjustments it can make to address cost overruns and revenue shor tfalls
Because P3s represent relatively new contractual arrangements for financing por t projects, exper ts advise public agencies to proceed cautiously Some , for example , speculate that P3s insulate the private par tner from market competition and the pressure it generates to hold down costs They also speculate that the public par tner will be hard pressed to find cost savings if tax-exempt bond financing gives way to private financing
“Availability Payments” P3s appear to address some of these concerns Under this P3 model, which is still relatively new in the U S , the private par tner designs, builds, finances, and operates the infrastructure as the contract requires. The public par tner makes scheduled payments to the private par tner as long as it meets the contract’s performance standards
c o n t a i n e r s u p p l y c h a i n
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The model’s proponents claim that it aligns the par tners’ interests, but also advise the par tners to proceed cautiously.
The competitive advantages are top-of-mind: Por t infrastructure improves a region’s competitive advantage by reducing the amount of time and money spent on storing and moving cargo until it reaches its customer The volume of cargo moving through U.S. por ts is significant - and the U S Maritime Administration is tracking significant real-time growth rates for many por ts.
Por t infrastructure assets have often been weakened by climate change , and by the cumulative impact of deferred maintenance investments
Such assets generally consist of wharfs and ber ths for docking and securing vessels; quay cranes for loading or unloading cargo containers; rail systems for moving the containers to holding facilities; and depots where trucks, trains, and barges can deliver or receive containers for fur ther transpor t.
The extent to which these components reduce shipping time and costs depend on several factors, including the depth of the navigation channels and ber thing areas, the technolog y and techniques used to load and unload cargo, and the connections between the por t and highways, railroads, and other modes of transpor tation
The cargo is contained in standard-size containers and placed on a vessel specifically designed to transpor t them Putting cargo in containers makes it easier to load or unload the cargo and store it for fur ther shipment
Before the advent of the container, world trade was a piecemeal under taking with the land and sea segments accomplished in isolation with little coordination between various independent operations The ship owner accepted the cargo when it arrived at the pier. Shipper and recipient alike did not expect, nor could they even envision, so-called ‘just-in-time’ ser vice
The value containers add to the shipping p ro c e s s i s l o s t o r d i m i n i s h e d i f t h e n av i g a t i o n c h a n n e l i s t o o s h a l l ow fo r container ships or the port cannot efficiently store and retrieve the containers for fur ther shipment
Rod Vulovic , noted por ts exper t and author of “Changing Ship Technolog y and Por t Infrastructure Implications,” explains that:
“today’s container ship is the linchpin of cargo transpor tation, but it is only par t of the total system which includes sophisticated shoreside terminals , intermodal extensions to inland points by rail and highway, and automated information systems that track a shipment throughout its journey”.
Despite the competitive advantages modern por ts offer, governments seeking to maintain, upgrade , or develop por ts or other types of public infrastructure face many financial hurdles, and a list of these was developed by Hofstra University’s economic geography professor, Jean-Paul Rodrigue:
- funding proposals that fail to provide enough funds for maintaining transportation infrastructure and improving their performance,
- avoiding politically driven investments that spread transportation dollars among many different projects while undermining the transportation system's overall productivity,
- identifying how different transportation projects affect the system's performance, and
- aligning government's and the private investors' timeframes for repaying bonds.
Filling the financial gap
As por t agencies struggle to meet these challenges, some turn to the private sector to cover the financial gap Traditionally, the private investors purchased the bonds or other debt instruments por t agencies issued to raise the capital for developing the infrastructure The investors paid no taxes on the interest they earn, exercised little or no operational control over the infrastructure , and received none of the income it generates
Today, many por t agencies and other bond-issuing government agencies lack the financial wherewithal to issue the amount of bonds needed to develop or maintain the infrastructure
“The level of government expenses in a variety of social welfare practices is a growing burden on public finance , leaving limited options for divesture , ” Rodrigue wrote
There are some other reasons public agencies are now turning to the private sector :
- management and labour costs that exceed those incurred to operate and maintain comparable private infrastructure,
- the need to use tax revenue to close the gap between the revenues ports generate and the cost to operate them, and
- higher infrastructure costs resulting from the pressure to satisfy many competing constituents.
Meanwhile , private investors are competing to acquire port facilities and other intermodal terminals, whose value has substantially increased in recent years as they emerged as key links in the global supply chains.
Consequently, investors view such infrastructure as “fairly liquid assets with an anticipation that they will gain in value , ” Rodrigue stated
Because shippers and other transpor ters pay fees to use this infrastructure, they “guarantee a source of income linked to the traffic volume they handle ” Acquiring intermodal terminals also allows investors to diversify their holdings and thus reduce their overall risks
Benefits of P3s
The list of P3 benefits are seen as numerous On the top of that list is the fact that a smart P3 potentially shores up a por t agency ’ s financial capacity to develop and maintain infrastructure by incenting private entities to par ticipate in financing and operating por t infrastructure .
Historically, public por t agencies separately bid the design and construction of por t infrastructure , including breakwaters, connecting roads and bridges, and other components that ser ve many users. They also award concessions to private companies to build and operate new facilities under long-term leases or operate existing facilities under such leases.
Under a P3, por t agencies issue one bid for both phases (i.e., design and build procurement), a practice its proponents claim eliminates construction delays, reduces cost overruns, and permits the use of other innovative methods. Other procurement options include long-term concessions allowing the private entity to manage and operate infrastructure ser ving many users
July/August 2022 World Port Development 29 c o n t a i n e r s u p p l y c h a i n
Consequently, P3s “confer a wide range of options in terms of capital allocation and respective levels of par ticipation,” Rodrigue stated
Limitations and Constraints
There is also a list of limits and constraints created by P3s One of the items on that list is the fact that, by expanding the range of procurement options for developing and operating public infrastructure , P3s alter the historical relationship between public agencies and private entities.
In the U S , for example , the laws governing a por t authority - a type of quasi-public agency created to develop, maintain, and operate por ts - may prohibit it from sharing profits and risks with a private entity
They may also prevent the por t authority from lending funds to private entities for building por t facilities or allowing these entities to set the fees for using those facilities
In some cases, the state-level or national laws may not address the issues that arise when negotiating a P3, including these three:
- the tax- exempt status of port infrastructure developed with public funds but operated by a private entity
- whether public bidding and prevailing wage laws apply to privately financed port infrastructure
- the port authority's ability to condemn and convey land to private entities
Environmental and economic factors could also affect a por t authority's ability to negotiate a P3
For example , por t proper ty often features unstable soils and fill materials or is subject to height restrictions so as to block water views - this limits the size of a project and the potential return These and similar issues may cause the private par tner to negotiate conditions that minimise its risks and maximise its returns
The private par tner’s other strategies to maximise gains and minimise risk include setting up a separate ‘special purpose entity’ (and indeed may be required to do so by its lender) that only owns its piece of the
project and has no other assets Such an arrangement could work against the por t authority by preventing any recourse to the private par tner's “deep pockets ”
Lastly, successfully negotiating a P3 could also depend upon the terms and conditions a lender imposes on the private par tner’s financing; the private par tner’s expectations about when the authority will issue bonds and complete site improvements; and whether the private par tner will agree to contractual assurances that are binding on it and its successors
Conclusion
In conclusion, despite the potential benefits, a public agency might consider other factors before negotiating an availability payments P3.
Because selecting a par tner is more complex than hiring a contractor, the selection process may require more time and money
The relatively long term of these P3s could limit the public par tner’s ability to make future changes, especially if they affect the private par tner's cost assumptions
World Port Development July/August 2022 30 c o n t a i n e r s u p p l y c h a i n IT’S YOUR MOVE. www.tideworks.com +1.206.382.4470
It cannot be overstated how critical it is to maintain good practice when shipping dangerous goods 14 July 2022 sees the passing of the tenth anniversar y of the fateful Atlantic crossing of the MSC Flaminia that cost the lives of three seafarers and resulted in extensive damage to cargo and the ship
The forensic investigations and litigation that followed the Flaminia incident demonstrate the complexity of shipping dangerous goods through the maritime supply chain in terms of regulation, practices and expectations.The 2018 judgment in the liability phase of the litigation provides excellent analysis of logistics workflow and is recommended reading for that alone
The cour t determined that the shipper had failed to take account of the nature of the cargo and the specific circumstances of this shipment. Equally, it found that the NVOC had failed to act on the extensive information available from the shipper and specifically did not disclose key information about the cargo to the carrier
Following this reasoning, both the shipper and NVOC were found strictly liable under US Carriage of Goods by Sea Act (COGSA) The matter remains subject to appeal, unresolved ten years on, displaying one of the long-tail consequences of such incidents
Regulation responds to incidents
Aside from the litigation, there were lessons learned from this tragic incident that were subsequently incorporated into the relevant regulations, the International Maritime Dangerous Goods Code (IMDG code)
In two iterations of IMDG, new UN Numbers were created for this type of product, within subdivision Class 4 1 for polymerizing substances, followed by additional requirements for cargoes classified in this way to be transpor ted under temperature control However, the process of amending the IMDG Code (and related United Nations Recommendations on the Transpor t of Dangerous Goods, commonly known as the UN Model Regulations, or
Changing dangerous goods regulations
Changing dangerous goods regulations
‘Orange Book’) is a lengthy one and these changes took several years to become mandator y Worr yingly, TT Club was aler ted at the end of 2021 that the subject commodity was still being declared incorrectly under the previous Class 9 UN Number
Errors, misunderstandings, mis-declarations and inadequate packing and securing lie at the hear t of many significant incidents, both at sea and in storage facilities As ultra-large container ships have continued to increase in size - the largest currently more than three times the capacity of Flaminia - the potential for economic , human and environmental impacts rise in propor tion.
IMDG Code 101
The IMDG Code was initially developed as an international code for the maritime transport of dangerous goods in packaged form approaching six decades ago The aspiration was to improve practices, enabling the safe
July/August 2022 World Port Development 31 c o n t a i n e r s a f e t y
Peregrine Storrs-Fox, Risk Management Director, TT Club discusses the importance of dangerous goods regulations.
“Errors, misunderstandings, mis-declarations and inadequate packing and securing lie at the heart of many significant incidents”
carriage of dangerous goods and mitigating the risks of disasters, injuries, loss of assets and environmental damage . Fur thermore , training for all those involved in entering dangerous goods cargo into the maritime supply chain has been mandatorily applicable since 1 Januar y 2004, under the Safety of Life at Sea (SOLAS) Convention
Since its initial introduction, the IMDG Code has been updated on a biennial cycle to maintain pace with the ever-changing needs of the industr y as well as responding to the lessons learned from incidents Amendments to the IMDG Code typically originate from two sources: proposals submitted directly to the International Maritime Organization (IMO) by Member Governments or industr y bodies with consultative status, as well as amendments to take account of changes to the UN Model Regulations, which sets the basic requirements for all transpor t modes
Needless to say, ensuring compliance with the latest mandatorily applicable version of the IMDG Code is essential as a minimum standard for all those shipping dangerous goods by sea Indeed, the Flaminia judgment even made clear that the regulations merely set the baseline , an impor tant statement for any entity or individual inclined to rely solely on the ‘letter’ in relation to consigning dangerous goods.
Revised ‘Book it Right, Pack it Tight’
Recognising the importance of getting it right, TT Club has again teamed up with UK P&I Club in order to suppor t all par ticipants in the maritime supply chain in publishing a detailed guidance document on the IMDG requirements - ‘Book it Right, Pack it Tight’ This version of the guidance reflects the updates in Amendment 40-20 of IMDG, which has been available to be applied voluntarily since 1 Januar y 2021, but became mandator y from 1 June 2022
The guidance is split into two parts
Par t A of the guide breaks down the process of preparing and booking the cargo into practical steps and explores the roles and requirements of those involved in each step:
Step 1: Classification of dangerous goods
Step 2: Selection of packaging
Step 3: Marking and labelling the packages
Step 4: Preparing the transpor t document for booking with the shipping line
Step 5: Applying the segregation rules
Step 6: Packing the cargo transpor t unit
Step 7: Producing the cargo transpor t unitpacking cer tificate
Par t B provides background information to the IMDG Code , classification and references to fur ther materials
Cargo integrity matters
The ‘Book it Right, Pack it Tight’ publication provides key insights for all par ticipants in the freight supply chain responsible for preparing unitised consignments of dangerous goods for carriage by sea The guide is intended to suppor t shippers, forwarders, shipping line booking personnel and those who pack dangerous goods into cargo transpor t units (CTUs) in the technical aspects of the IMDG Code . The aspiration is to influence behaviours and levels of compliance by assisting all involved to understand their own duties and the duties of their contractual par tners through the global supply chain
Closely related to the issues specific to dangerous goods are the broader issues of packing cargo in general While the IMO / ILO / UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code) remains non-mandator y international law, it is clearly referenced from the IMDG Code .
Equally, ‘Book it Right, Pack it Tight’ refers to the CTU Code as the definitive industr y code of practice on how to pack and secure cargo of all types in cargo transpor t units, imploring all operators to adopt the principles therein, thus improving operational practices.
For fur ther information on this, look at TT’s cargo integrity resources
c o n t a i n e r s a f e t y
July/August 2022 World Port Development 33
“Book it Right, Pack it Tight is intended to support shippers, for warders, shipping line booking personnel and those who pack dangerous goods into CTUs”
P o r t c o n s t r u c t i o n r o u n d - u p
Claire Instone reports…
This issue’s por t construction feature repor ts not only on plans for new por ts and terminals but news of investments being made in order to see old structures and facilities revamped and brought up to scratch Considerations are being made on numerous sites that are old and ‘behind the times’ in terms of their offerings. Discussions are taking place on the rebuilding of Tin Can Island Por t, TNPA are putting R16 1 billion into infrastructure development at various por ts, and in Russia, reconstruction of infrastructure facilities at the seapor t of Korsakov are in the design phase
As well as facilities due to rise from the ashes, we also take a look at myriad initiatives around the globe that have received funding for expansion, recently opened for business, awarded major contracts and those that have plans in the pipeline
Funding for expansion
* The Por t of New Orleans in the US has confirmed it was allocated nearly USD97 million by the Louisiana Legislature during the recently-completed 2022 session to help pay for its new container cranes, design a critical road in St. Bernard Parish and bolster funding for several of its other expansion projects Por t officials said the money, which was part of a broad expansion of state funding for infrastructure projects across the state , will be put towards growing its existing upriver container and cold storage terminals
It will also be used to build a road in St Bernard Parish that is a crucial par t of the infrastructure for the proposed USD1.5 billion Louisiana International Terminal, the downriver container por t being built in Violet. Brandy Christian, CEO of Por t Nola and the New Orleans Public Belt Railroad, said the work will help New Orleans compete with por ts like Los Angeles
“These projects will position Por t NOLA to take full advantage of current cargo opportunities, including serving as an alternative gateway to the West Coast,” she said in a prepared statement USD30 5 million of state money was allocated to finish the rehabilitation of the antiquated St. Claude Avenue Bridge , which is vulnerable to bottlenecks
Moreover, the existing upriver Napoleon Avenue Container Terminal Container Crane Expansion Project got a further USD8 1 million Those funds will be used to complete the installation of four new container gantr y cranes that move cargo to and from ships
The cranes arrived in December and are expected to be operational shor tly.
Also, just under USD8 million of state money will go toward the USD49 million expansion of Por t NOLA’s Jourdan Road Cold Storage Terminal, which will allow it to nearly double in size to 304,000 square feet
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* DP World and the Saudi Por ts Authority (Mawani) have announced the signing of a 30-year agreement with an investment value of more than SAR 500 million (approx. USD133 million) to build a state-of-the-ar t, Logistics Park at the Jeddah Islamic Por t The 415,000 square metre purpose-built facility will bolster DP World’s footprint in the region and will bring pioneering multi-modal logistics solutions to the Kingdom of Saudi Arabia The agreement aims to establish the logistics park with an in-land container depot capacity of approximately 250,000 TEUs and warehousing storage space.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, commented: “We are committed to enhancing the role and the status of Jeddah’s Islamic port, which is strategically located on the Red Sea and has historically played a pivotal role in facilitating the movement of trade between the East and the West A key par t of our strateg y as an end-to-end supply
chain solutions provider, is to package logistical ser vices for our customers and bridge any existing gaps in the market. Facilities like these will enable us to make deeper inroads into the Kingdom, by extending our collaboration with leading logistical ser vice providers.”
DP World signed a new concession agreement with Mawani in April 2020 to continue operating and managing the South Container Terminal at Jeddah Islamic Por t for the next 30 years, committing to invest a total of more than SAR 3 billion (approx USD800 million) to expand and modernise the terminal.
The overhaul project, which will take place over four phases and is set to be completed by 2024, will see infrastructural upgrades, including the broadening of draught depth and quay, and the installation of advanced equipment and technologies, automation and digitalisation programmes, in addition to decarbonisation initiatives When complete , the revamped terminal will double Jeddah Islamic Por t’s container handling capacity from 2 5 million TEUs to 4 million TEUs
* The Por t of Tallinn in Estonia is set to invest up to €53 million (approx USD56 million) to build a new quay to ser vice wind farms in Paldiski South Harbour. Due to the favourable location of Paldiski South Harbour, the construction of the new quay will create preconditions for Por t of Tallinn to become an impor tant par tner in the construction and subsequent maintenance of offshore wind farms in the Baltic Sea region.
Co-financed by European Commission in the amount of €20 million, the investment will go to a new 310-meter quay with a 10-hectare area beyond the quay The new quay will ensure the capacity of the por t to receive high-draught special-purpose vessels for the construction of offshore wind farms and the transpor t of wind turbine components The large rear area beyond the quay allows various preparations for the manufacture and storage of generators and wind turbine blades before being loaded on a ship Moreover, the new quay can be used to ser vice ro-ro vessels if required The works are cited to be finished in the summer of 2025
Open for business
* Por ts of Stockholm is one of the world’s largest passenger por ts and Stockholm is a ver y popular cruise destination Now the possibilities for cruise ships to call at Stockholm have increased with the opening
of a brand-new quay at Frihamnen Port The new quay at Frihamnen Por t opened on 21st June The site was previously the location of the container terminal, which moved in 2020 to the newly built freight por t hub, Stockholm Nor vik Por t. The move of the container terminal provided new oppor tunities for the container business to develop, but also opened up space for a brand-new cruise quay in the hear t of Stockholm.
The new quay is 330 meters in length and is surrounded by ample space for efficient traffic flow, such as the arrival and depar ture of buses and taxis The new quay is particularly suitable for turnaround calls, where a lot of space is needed for passengers checking in and checking out
Another investment that Por ts of Stockholm has begun is to provide cruise quays with onshore power connection facilities for the cruise ships. Next year the first facility for cruise ship onshore power connection will come into operation at the city centre Stadsgården quay. This is a joint initiative together with other Baltic Sea por ts and is an important part of the ongoing environmental work towards sustainable cruise tourism
* In the States, JAXPORT contractors have completed the final phase of USD100 million in berth enhancements at the SSA Jacksonville Container Terminal (JCT) at JAXPORT’s Blount Island Marine Terminal The last stage of the project, the rehabilitation of 700 linear feet of deep-water ber thing space , was completed at the end of June in coordination with the recently completed Jacksonville Harbour Deepening Project.
The SSA JCT now features a 47-foot channel depth with 2,400 linear feet of newly rebuilt berthing space capable of accommodating two post-Panamax container ships at the same time The multi-faceted ber th rehabilitation project began in 2016 with the installation of a highvoltage electrical system equipped to power up to 10 state-of-the-ar t environmentally friendly container cranes, including three already in use and an additional three currently on order by SSA Atlantic
Subsequently, the ber ths were reconstructed in a series of four phases “This project significantly enhances our deep-water berthing capabilities at Blount Island, maximising the efficiencies created by the deepening project,” said JAXPORT CEO Eric Green
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World Port Development July/August 2022 36 a d v e r t s
In addition to the reconstructed ber ths and new cranes, more than USD72 million in phased yard improvements are underway to enable JCT to accommodate 500,000 TEUs annually
Contracts awarded
* In the US, the Por t Commission of the Por t of Houston Authority have awarded two of the largest contracts in its histor y. The commission approved the staff ’ s recommendation to award Weeks Marine and Cur tin Maritime Corporation contracts totalling USD430 million to complete the remaining Galveston Bay segments of the Houston Ship Channel expansion project.
“The teams recommended were the top proposers - best schedules, lowest costs and estimated NOx emissions, and most S/MWBE inclusion,” Executive Director Roger Guenther said in his repor t “Nearly 32% of the contracts will go to S/MWBE companies fur thering our commitment to business equity, which is a priority for Por t Houston.”
According to the USACE, the Houston Ship Channel is the busiest waterway in the nation Por t Houston’s eight public terminals and more than 200 private facilities have an economic impact of nearly USD802 billion in annual activity to the nation.
* DCT Gdansk in Poland has selected contractors to begin works for the T3 expansion project T3 will include a deep-water quay of 717 meters in length and 17 5 meters in depth Moreover, it will have a yard area of 36.5 hectares. The contract is with a consortium of Budimex S A and Dredging International NV When T3 is complete , DCT will be among the largest container terminal hubs in Europe.
The investment will involve the purchase of 7 new quay cranes capable of handling the world’s largest vessels, and 20 semi-automated Rail Mounted Gantr y (RMG) cranes for the container yard The works - including dredging and reclamation - are set to star t this September and will be followed in early 2023 by the construction of the nor thern and southern walls, and the main ber th. T3 is scheduled to open for operations by mid 2024, with full completion of the project planned for the second quar ter of 2025. In its first phase , the new terminal will increase DCT Gdansk’s handling capacity by 1 7 million TEUs to a total of 4 5 million TEUs annually
Plans in the pipeline
* The US Army Corps of Engineers has announced the signing of a Chief ’ s Repor t for the New York & New Jersey (NYNJ) Harbour Deepening and Channel Improvements Study NYNJ is the busiest container por t on the East and Gulf Coasts and the second busiest container gateway in the United States
The Chief ’ s Repor t recommends bend widenings and channel deepening in the existing -50 feet Mean Lower Low Water (MLLW) datum channels; and in Ambrose Channel, currently -58 feet MLLW The fleet of container vessels calling the por t today include longer and deeper ships that experience manoeuvrability problems at the existing channel bends’ widths; and are depth constrained at the existing channel depths This causes light loading of vessels and economic inefficiencies
Therefore New York District, in par tnership with the Por t Authority of New York and New Jersey, has investigated and found that it is environmentally acceptable and economically feasible to improve the existing channels
The Chief ’ s Repor t’s recommended plan would widen all channel bends and deepen the channels from the ocean to Por t Newark and Elizabeth and Port Jersey to -55 feet MLLW for current vessels calling the por t and for more under keel clearance for those vessels.
* According to recent repor ts, the United Arab Emirates is going to build a new Red Sea por t in Sudan as par t of a USD6 billion investment package which will include a free trade zone and a large agricultural project A memorandum of understanding has apparently been signed for the USD4 billion facility - a joint project between DAL group and Abu Dhabi Por ts, owned by Abu Dhabi’s holding company ADQ The new por t is cited to handle various commodities and compete with the country’s main national port, Por t Sudan The project is said to be in the advanced stages with studies and designs complete
* HPC Hamburg Por t Consulting together with PT Melchers Melindo Indonesia has been contracted to deliver a valued judgement on investment in development of Indonesia’s deepest dr y bulk terminal HPC and PT Melchers Melindo Indonesia, par t of the international business development group Melchers, have signed a contract with the por t operator PT Krakatau Bandar Samudera
(PT KBS) to provide an independent study aimed at validating the potential of extending the capacity of Krakatau International Por t to handle cargo in addition to dr y bulk and break-bulk commodities Situated on the West coast of Java, the facility faces the Sunda Strait, one of Southeast Asia’s busiest marine trade routes
PT KBS aims to maximise the potential for the por t’s cargo handling ability and fur ther develop its por tfolio The study will include market forecasts, a port operations development concept and financial analysis, which will inform the port’s plan to expand facilities for handling other cargo types. The intention is to fur ther par ticipate in, and benefit from the growing trade via the Sunda Strait The contracting by PT KBS of the business development par tner PT Melchers Melindo Indonesia and global por t specialist HPC for this pre-feasibility study follows a Memorandum of Understanding between the three par ties back in November.
Revamps in the works
* In Lagos in Africa, the Federal Government is considering rebuilding Tin Can Island Por t which has become weak due to its old age The Nigerian Por ts Authority (NPA) had budgeted over N300 billion (approx. USD600 million) for reconstruction
“We cannot build on a weak foundation. It is vital that we get these two ver y impor tant ports modernised and ready to berth modern vessels. The state of the por ts shows decades of neglect but it’s better late than never, ” stated a ministerial representative
The Managing Director of NPA, Mohammed Bello Koko, has also raised concern over the poor state of the por t complex and had to allay the fears of stakeholders by confirming the Port Authority is already at the conclusive stages of funding options to save the por t Options for moving forward include talks with competent multilateral funding institutions and the possibility of the Authority using a percentage of the revenue or transfers to consolidated revenue fund to fund the reconstruction of the por t
“Although the Nigerian Por ts Authority has been under taking remedial works on the quays, the time has come for a holistic reconstruction and the Authority is working with the Federal Ministr y of Transpor tation on the most prudent funding option,” stated Bello Koko
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* Nigerian Por ts AuthorityTransnet National Por ts Authority (TNPA) will be putting R16 1 billion into infrastructure development at the por ts of Mossel Bay, Saldanha and Cape Town for the next seven years The investment is par t of the TNPA’s strategic repositioning of its Western Region ports to efficiently facilitate trade and create much-needed jobs
The Western Region’s capital investment programme has an allocation of R2 2bn to the Por t of Mossel Bay; R8 4bn to Saldanha; and R5 5bn to Cape Town At Mossel Bay, some of the key capital projects include the slipway facility refurbishment, and Quay 3 sheet pilling Projects that are spread across the seven-year period include the deepening of the por t and Quay 4, as well as the breakwater extension
At the Por t of Saldanha, capital projects are already under way and include the acquisition of a tugboat, installation of perimeter-fencing and provision of bulk-power. The broader seven-year initiative includes the extension of Ber th 205; ber th construction of the ore expansion phase 2; as well as the refurbishment of the main breakwater and causeway rock revetment
As for Cape Town, the facility will see the delivery of a robust R260m capital programme, comprising the procurement of a helicopter and the replacement of two tugboats. Phase 2 of the Cape Town container terminal expansion and the acquisition of 10 dry-dock cranes form par t of the por t’s seven-year programme .
* A recent meeting of the Minister of Construction, Housing and Utilities of the Russian Federation, and the Governor of the Sakhalin Region, has included discussions on the reconstruction of infrastructure facilities at the seapor t of Korsakov According to press reports, work on design documentation is currently underway with construction of infrastructure cited for next year An invitation to tender was recently issued to select an organisation for the right to sign a contract on development of a design for “Reconstruction of por t infrastructure facilities in seapor t Korsakov” in the framework of “Logistic technopark (Korsakov por t)” Phase 1
* In a recent visit to the Antwerp Por t Authority in Belgium, Serbian Construction, Transpor t and Infrastructure Minister, Tomislav Momirovic , announced that almost half a billion euros will be invested in the Port of Belgrade in 2023 Momirovic confirmed that the investments in the waterways sector would include the river ports Bogojevo, Prahovo and Sremska Mitrovica along with investments already made in the por t of Novi Sad
Bigger and better
* Singapore, one of the world’s busiest ports, is backing an ambitious modernisation plan. The facility is moving forward with a S$20 billion (approx USD14 billion) project to construct the world’s biggest automated por t by 2040 - one that will double existing space and feature drones and autonomous vehicles Operations began at two new berths last year, and construction is continuing on the next phase.
Located in the Strait of Malacca, Singapore is a regular pit stop on container routes that connect Asian factories to consumers in Europe. The por t handled the most trans-shipped cargo in the world in 2020 The vision for Singapore’s mega-por t - Tuas - is set on a capacity of 65 million TEUs by 2040
Once Tuas is complete , Singapore will shut all its existing capacity and relocate everything there. The three city terminals at Tanjong Pagar, Keppel and Brani will all shut and move to Tuas by 2027, while Pasir Panjang terminal will be consolidated by 2040
* Mediterranean Shipping Co (MSC)‘s operating subsidiar y has laid out plans for a USD6 billion deal with the Ho Chi Minh City (HCMC) Government to build Vietnam’s largest por t in Can Gio. The city received a proposal from Terminal Investment Limited (TIL), MSC’s Switzerland-based operator subsidiar y The plan involves a 7.2-kilometer wharf to accommodate 24,000 TEU vessels
Overall the facility, to be located on international maritime routes, will have an annual capacity of around 10-15 million TEUs
The MSC proposal, in cooperation with Vietnam Maritime Corporation and Saigon Por t JSC , looks at a seven-phase project, with the first beginning in 2024 and put into operation in 2027. The entire facility is due to become fully operational by 2040 Upon its completion, the new Can Gio Por t would replace Cat Lai Por t as the nation’s largest terminal
World Port Development July/August 2022 38 e n g i n e e r i n g p o r t c o n s t r u c t i o n
is set on a
of 65
TEUs by 2040
Tuas
capacity
million
ith larger vessels, increased cargo volume, improved safety awareness, and tougher environmental regulations, today’s por ts face significant challenges To accommodate regional compliances and the rapidly changing nature of the shipping industr y, por ts must find ways to upgrade and future-proof their infrastructure , doing so safely, efficiently, cost-effectively, and sustainably.
Fender systems are a critical par t of por t infrastructure , and are essential to the safety and efficiency of por t operations, protecting vessels and terminals alike Taking a whole system approach ensures high-quality fender systems optimise vessel throughput and por t operations efficiently and safely in the long term That’s because a whole system approach to fenders - one that includes application engineering, detailed design, production, and quality control as well as installation, operations, and maintenance - will reduce construction costs, downtime , and operating expenditure This is in addition to contributing to more efficient ber thing operations by improving turnaround times while improving overall operational efficiencies and reducing operational safety risks
* The energy capacity of the fender under the wor st operating conditions must be greater than the abnormal design ber thing energy
* The reaction force exer ted by the fender onto a vessel or structure must be less than the vessel’s hull pressure limit and fender mounting structure capacity
Ber thing factors such as angular, temperature , and velocity, need to be considered during the selection of a fender, and data should be backed up with testing documents and published in a catalog. Applying the right performance correction factors is vital to overall fender performance and enhances the lifetime of the fender, reduces maintenance costs, and lowers operational risk
Best-practice specification
A W H O L E S Y S T E M A P P R O A C H T O
A W H O L E S Y S T E M A P P R O A C H T O
Application engineering
A high level of technical expertise and application engineering is required when it comes to the design and selection of fender systems, which must be able to protect modern por ts and terminals, and a wide range of vessels and high-value cargo
During application engineering, information such as ber thing data, site conditions, and environment, needs to be collected These are assessed alongside other design criteriasuch as local standards, desired ser vice life , maintenance cost, and frequency - to determine a project’s unique requirements Once the functional and operational design parameters are determined, accurate and comprehensive application of ber thing energ y calculations should be made to engineer the best-fit fender solution.
The kinetic energ y of a ber thing vessel needs to be absorbed by a suitable fender system.
To ensure the fender system absorbs the required amount of energy in actual conditions, fender performance correction factors should be considered. When it comes to fender selection at the application engineering stage , there are two fundamental criteria:
To ensure fenders are fit for purpose , they must be produced in accordance with the specifications of a project When supplying fenders for a project, a range of application details and fender component information, such as panels and chains, must be specified Fender specification should be carried out at the start of a project to ensure the right fender system is selected - one that will function as required in its intended environment.
A data- driven approach
Taking a data-driven approach to fender design can improve accuracy, reduce costs and enhance por t safety Combining internal data on fenders and external data from the por ts, such as ber thing speeds, gives por t authorities, terminal operators and consultants a clear view of how to improve the design of marine structures
Meeting current guidelines
Fender systems should be designed in accordance with PIANC’s 2002, the ASTM F2192 or British Standard Code of Practice for Maritime Structures: BS 6349, and be subject to performance and material verification testing, as well as fatigue and durability tests, where applicable These tests ensure design criteria are met and that a fender system and its components will perform as intended.
Installation
The installation of a fender system should also be considered early in the design process
This is because the accessibility for maintenance, wear allowances and protective coatings will all affect the design and selection of the final fender system
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Detailed fender system design
Once a fender system has been selected, the detailed design must be executed and optimised by the fender supplier This ensures that when in-situ, it delivers superior performance throughout its lifetime , from enhanced safety, lower lifecycle costs, and quicker turnaround times, through to reduced maintenance and repair, better ship stability under mooring, and increased sustainability levels.
Key considerations in best-practice design are:
* Maximum reaction force
* Fender components including accessories
* Front panel design
* Low-friction facing pads
* Restraining chain design
* Fastening system
* Corrosion protection
* Design checks
* Fender system architecture
Fender production and quality control
If the correct fender system is selected during application engineering and is then correctly designed, the procured fender should perform as required in its intended environment However, it is vital that all par ts of the fender system are produced according to their relevant manufacturing standards. To guarantee the performance and durability of a fender system over its lifetime, there are three crucial factors that must be considered in relation to production.
Quality of materials
Understanding how the material composition impacts the quality and durability of a fender system is critical If poorly designed or made from low-grade materials, the performance and longevity of the whole fender system will be compromised, including the fender, the front panel, the low-friction pads, and accessories Comprehensive material testing is therefore needed to ensure the accuracy of compounds used throughout the manufacturing process
Manufacturing process
Building and curing processes have a significant impact on the final performance of rubber fenders and therefore the overall fender system. It is impor tant to determine a manufacturer’s exper tise and capabilities in these areas and to understand how the different processes affect fender performance
Independent quality and performance verification
Fender system projects involve sizable contracts and budgets - there is too much at stake to allow manufacturers to serve as their own regulators
In order to ensure objective , trustwor thy results for marine fenders, performance verification testing must be conducted in an independent laboratory or by an independent company with its own testing equipment, which works independently of the manufacturer. This will remove any uncer tainty and enable end-users to have confidence that the lifecycle and performance of fenders meet specifications, and that the fenders are fit for purpose .
Fender system installation, operations, and maintenance
Correct installation of a fender is vitally important to its performance When installation is considered early - as part of a whole system approach to fender design - fender systems can be produced to perform optimally in a specific environment This increases the lifetime of the fender system, reduces downtime and maintenance , and suppor ts safe , continuous operations Installation and commissioning suppor t should be provided by the fender supplier This includes installation, training, manuals, oversight, and super vision
Regular inspection reduces overall maintenance requirements Leading suppliers have the experience and skills to provide suppor t with on-site super vision, as well as regular fender system inspection and make recommendations on maintenance This increases a fender’s longevity, reduces operating expenditure, and ensures the fender system performs as intended over its full product lifetime . Sustainability is also an increasingly impor tant consideration
A low-cost fender - made from low-quality materials - will have a shor ter lifespan than a high-quality fender. Since rubber is hard to recycle, the selection and design of rubber fenders can have a significant environmental impact on a por t’s sustainability credentials. High-quality products with a longer lifetime significantly reduce replacement to suppor t sustainability
To help address the challenges fender systems face in the demanding environments in which fender systems operate , the supplier should provide a full range of after-sales ser vices High-quality after-sales suppor t incorporates repair ser vices, tailored inspection and maintenance programmes, access to spare parts, timely technical support, on-site service and even customised training programmes
Conclusion
A high level of technical exper tise and experience is required to select the most suitable fender system to safeguard ber ths, vessels, and por t operations. Taking a whole system approach with the support of a supplier with a proven track record is vital to ensuring that this critical equipment is able to facilitate safe , efficient, and sustainable operations
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All photos courtesy of Trelleborg