Port Strategy April 2023

TAIWAN: AT A CROSSROADS

MASTER PORT CONCESSIONS: PROGRESS AND PROSPECTS

RUMPUS ON THE RIVER PARANA

BEST OF THE WORST: DISTRESSED CARGO MANAGEMENT

One-on-One with Peel | Pneumatic Unloaders | More Pressure on Adani & More to Come?

VIEWPOINT

MIKE MUNDY

Paths to Reducing Serious Maritime Incidents and their Impact

Recent times have seen a spate of maritime incidents spanning groundings, collisions and, particularly notable, containership and ro-ro vessel fires which, experience shows, are often caused by mis-declared cargo. Such incidents are all very serious – the grounding of the Ever Given in the Suez Canal made headline news and had billion dollar consequences. The example of the Ultra Large Container Ship Maersk Honam highlights what a devastating impact fire can have onboard such a vessel. In 2018, the 353m vessel caught fire southeast of Oman en route from Singapore to Suez. The fire was halted at the superstructure and crew members were evacuated. Tragically, five died.

It took five days to bring the fire under control, and seven more weeks before the vessel could be towed to a suitable port of refuge – Jebel Ali in the UAE – for unloading. It was carrying 7860 containers, equivalent to 12,416TEU, when the incident occurred.

While it is not always reported in the media, finding a port of refuge can be extremely challenging – the example of the container ship X-Press Pearl, proves the point. The2743TEU capacity X-Press Pearl eventually sank after it was refused refuge by two ports following a fire – effectively turning what should be a manageable incident on a large vessel into a total loss.

Further, it should be borne in mind that not all fires onboard vessels occur at sea – a major fire took place in the port of Hamburg in 2016 with the 9000TEU capacity CCNI Arauco and, of course, as the recent depot incident in Bangladesh proved container generated fires on land can also prove catastrophic.

There is growing recognition that the increasing incidence of vessel fires in particular needs to be brought under control with special reference to containerships and ro-ro vessels/car carriers. Two recent initiatives highlight this – the publication by several industry bodies at the end of March of The Lithium-ion Batteries in Containers Guidelines and preceding this, in February, the major liner operators Evergreen Line, HMM, Maersk, the Offen Group and ONE as well as Seaspan and Lloyd’s Register joining Safety Accelerator and its Safetytech Accelerator Cargo Fire & Loss Innovation Initiative to, “find and advance technology innovations from across maritime and other industrial applications to reduce the incidence of cargo fires or cargo loss overboard.”

The article on p28, authored by BMT, also makes clear that there is significant scope to refine the approach to extract more value from distressed cargo involved in a major incident and similarly the article from Rightship on p31 underlines the major role data can play in understanding and thereby reducing in-port incidents.

Positive moves are afoot, and not before time!

The international magazine for senior port & terminal executives

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Enough is enough, the industry is going through the gears to reduce serious maritime incidents and notably the devastating impact of fires generated by the increasing transport of lithium-ion batteries both in containers or within electric vehicles in car carriers and generally along the supply chain. An array of resources are being harnessed as well as serious thought being given to optimising distressed cargo management

The heavily fire damaged MSC Flamina arrives at the JadeWeserPort, Wihlemshaven, Germany. The ship caught fire mid-Atlantic and the crew were compelled to abandon ship due to two explosions that promoted a huge fire. The explosions originated from hazardous cargo and resulted in the loss of life and injury to crew. Hundreds of containers were consumed in the ensuing fire, in effect a forerunner of the shape of things to come which are, in turn, spurring industry initiatives to reduce serious incidents at sea, in port and generally along the supply chain.

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TRANSNET UNDER PRESSURE AS IT MOVES TO PRIVATISE CONTAINER CORRIDOR

Transnet is facing increasing pressure from both the African National Congress (ANC) and Economic Freedom Fighters (EFF) political parties with respect to its current activities and privatisation plans.

At the end of January 2023, Transnet announced it was engaging the market to invest in and grow Transnet Freight Rail’s (TFR) freight containerised business, by issuing a Request for Qualifications (RFQ) to identify parties interested in entering into an Operating Lease with TFR for the operation and maintenance of the Container Corridor (the line between Johannesburg and Durban) for a period of 20 years.

The Operating Lease aims to obtain the required investment in the rehabilitation, upgrade and maintenance of the rail network and rolling stock assets, as well as be responsible for the operation of the Container Corridor, which includes the Bayhead Back of Port Terminal and defined Inland Terminals of City Deep, Kascon and Bayhead.

However, Members of the South African Parliament are critical of the project and have made their sentiments known following a recent presentation from Transnet to the Public Enterprises Portfolio Committee about its recently announced plans.

The views were best summedup by Judith Tshabalala, ANC Member of the Committee, who stated: “The ANC government is ridiculed by the public and

Russian Coal Move

Russia is reportedly considering the option of shipping coal from Siberia to Asia, via the Arctic river, and using the ports of Krasnoyarsk and Lesosibirsk. Pilot shipments could commence during Summer 2023. It is understood that the coal would be shipped via the River Yenisei to the port of Dudinka for reloading onto larger ships for movement via the Northern Sea Route. Timber is another product that is under consideration.

COSCO in Sokhna

voters, who say we have failed. But you run these entities. You are responsible for implementing government policy. The ANC government never told you to privatise anything… I’m not finding much you have done to turn around the situation. Fix up this mess you are creating for the ANC government.”

In response to this public criticism, Portia Derby, CEO, Transnet Group, maintains that a number of critical challenges continue to be faced, citing the unavailability of spares for locomotives, theft, and vandalism and “systemic underinvestment,” all of which has seen a reduction in system reliability and an increase in accidents.

Talking to the Committee she further noted that the support of the private sector, and the investment it will bring, is needed to help generate a significant shift of containers from road to rail as well as achieve increased

8 Transnet’s desire to privatise its rail containerised business continues to face political opposition from South Africa’s governmental authorities

operational reliability and efficiency. The concessionaire must invest at least R3 billion in the infrastructure.

Furthermore, Derby said that Transnet lacked the financial resources to utilise the full capacity of its network: “Total available capacity is 230 megatons a year, and we are not able to move it ourselves. From a South African perspective, and even from a Transnet perspective, it is really important that we are able to move it. So, if other people can enable us to move cargo then it is essential that we bring them on.”

Privatisation has long been on the agenda in South Africa for the port business, but to date it has seen little tangible traction. The current political climate could see further delays.

LONG BEACH WIND AND RAIL INITIATIVES

The San Pedro Bay Port of Long Beach, in Southern California, is considering the development of a 400-acre wind turbine facility.

Mario Cordero, Executive Director, Port of Long Beach, has announced details of a new proposal that includes development of a manufacturing base capable of producing floating wind turbines, as part of the port taking a “leading role in

becoming…a renewable energy developer.” The 400 acre site will be on new land southwest of Long Beach International Gateway Bridge.

At the same time, the port has also confirmed that the US$1.5bn Pier B rail project will break ground in 2024, in a move that will help speed containers from the port to destinations in the US Midwest and help overcome supply chain

issues seen in 2021-2022. “In the first phase of Pier B in 2025, you will see additional tracks that will improve the entering and leaving of the Port of Long Beach. Ultimately, we will have completed, by 2032, the enhancement of going from the number of tracks that we have today, which is 11 tracks to 46 tracks. So, it’s going be a huge game changer,” stated Cordero.

COSCO Shipping Ports has confirmed it has signed a deal to acquire a 25 per cent stake in the 1.7 million TEU per annum Sokhna New Container Terminal being developed by the Egyptian government. In a filing to the Hong Kong stock exchange, the company said the US$375 million investment is for a 30-year agreement. CMA CGM and Hutchison Ports are partners in the US$1,6bn deal. Located at the southern entrance to the Suez Canal, the Port of Sokhna is approximately 120km east of Cairo.

Urgent Action Required

The UK’s Floating Wind Offshore Wind Taskforce states that up to 11 ports in the UK need to be transformed into new industrial hubs to support the roll-out of floating offshore wind activities and as fast as possible. The Taskforce projects that 34GW of floating wind can be installed by 2040, but only if the UK government takes “swift and decisive action”. With the UK having the biggest wind project pipeline globally at 37GW, investment of £4bn (US$4.85bn) must occur in ports by 2030.

POSITIVE PACIFIC GATEWAY EXPANSION MOVES

Port Hedland Expansion Confirmed

The government of Australia has confirmed investment of A$565 million (US$382 million) to expand the Port of Port Hedland. The Western Australia government is contributing A$96.5 million (US$64.6 million) to the project.

The Lumsden Point development project is a part of the Port of Port Hedland Development Plan Review that is seeking to maximise export capacity capabilities.

The Canadian Pacific Gateway ports of Prince Rupert and Vancouver have both confirmed project developments that will help enhance their respective competitiveness.

For the Port of Prince Rupert, an integral part of its long-term development plan is the ability to fully integrate intermodal activities by linking the cargo marine terminal, with logistics activities and rail. Now a critical step in the plan has been achieved with confirmation that the “Ridley Island Export Logistics Project” has received a final determination from the Canadian Government’s Federal Environmental Effects Evaluation Review.

In essence, this means that the proposed project is not anticipated to cause significant adverse environmental effects in accordance with the requirements of Section 82 of the Impact Assessment Act (IAA).

Shaun Stevenson, President

APMT Going Solar

Before the end of 2023, APM Terminals Barcelona will be generating 7.5 per cent of its electricity due to an extension of 1210m2 of its solar arrays. Over the past year, the terminal’s existing 980 solar panels produced 565,000 kWh of energy, equivalent to just over 5.1 per cent of its total electrical consumption. APM

Terminals has confirmed its aim is to decrease greenhouse gas emissions by 70 per cent by 2030 and hit zero by 2040.

and CEO, Prince Rupert Port Authority (PRPA) notes: “This project will create an innovative and competitive transloading facility for commodities such as plastic pellets, cereal grains, specialty agriculture crops, lumber, and pulp to be loaded directly from rail into containers for export, creating 400,000TEU of export capacity in the first phase.”

He added that initial site works and preparation will commence by Q2 2023, with the final investment decision between all commercial partners anticipated before the end of the year.

For the Vancouver Fraser Port Authority (VFPA), the construction component of the Centerm Expansion Project at the Port of Vancouver is now complete.

The project work included expansion of the terminal footprint, reconfiguring and expanding the container yard, extending the intermodal yard

DB Logistics Sale

Goldman Sachs, Morgan Stanley, and Deutsche Bank have been collectively appointed to undertake the sale of the logistics arm of German rail operator, Deutsche Bahn. It is understood that the process will commence during Q3 2023 and a figure for the transaction could be as high as €20 bn ($21.1 bn). Funds raised from the transaction will help the German state-owned rail business to invest in its infrastructure while also cutting existing debt levels.

and construction of a new operations facility.

As a result of the project, terminal operator, DP World, is expecting to see capacity increase from the current 900,000TEU per annum to 1.5 million TEU per annum.

This expansion is certainly needed in Vancouver. VFPA confirms that container terminal capacity on the West Coast of Canada is expected to reach capacity during the mid-to-late 2020s, necessitating further investment in terminal space. The authority is currently awaiting environmental approval from the Federal Government to proceed with its long-planned Deltaport 2 project, which will add 2.4 million TEU capacity per annum to the port and region.

DPW Santos Spend

DP World (DPW) has confirmed it is investing US$35 million to expand and modernise its operation at the Brazilian Port of Santos. Quay length will rise from 1100m to 1300m, with annualised terminal capacity rising from 1.2 million TEU to 1.4 million TEU. This latest investment project represents further spending by DPW at this port. Since the operator commenced activities at this facility in 2023, a total of US$577 million has been invested.

The project will see the construction of two seawalls and a new causeway, which will offer a link to the wharf, where new multi-user facilities will be generated and supported by an on-site logistics hub.

The aim of the investment is to improve capacity to export lithium and copper concentrates (used in batteries), with import activity focussing on renewable energy infrastructure, including wind turbines and equipment.

Demand is growing locally and overseas for clean energy sources and investment in the Lumsden Point expansion will help position Northern Australia to take advantage of the economic opportunities this demand presents.

The Pilbara region has been at the heart of Western Australia’s economic strength for several decades.

BRIEFS

Argentia Wind

The Port of Argentia in Newfoundland, Canada, has outlined a second new contract in support of the US offshore wind industry, with confirmation that it is to act as a marshalling yard for monopoles due for installation off the US East Coast. With investment of more than C$10 million on road widening and three additional acres of laydown land adjacent to the docking quays, the port will receive the monopiles via selfpropelledmodular transporters.

8 Prince Rupert’s new export facility marks a critical step in the port’s move to link the marine terminal, logistics activities and rail

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PEEL SECURES GREEN AUTOMOTIVE HUB OPPORTUNITY

Piraeus Profits Up

Piraeus Port Authority has announced strong financial results for 2022. Turnover was €194.6 million compared to €154.2 million in 2021, an increase of €40.4 million or 26.2 per cent. Profits before taxes were €74.7 million compared to €49.2 million in the fiscal year 2021, an increase of 51.7 per cent. A strong cruise business sector was a major factor in the positive results, due to the rebound from COVID-19, while container traffic rose by 5.4 per cent.

Brittany Conversion

Peel Ports, enjoying a busy period of securing new business streams, announced in late March plans for a new GBP10 million green automotive hub at a site on the River Mersey.

The hub, to be established in conjunction with logistics company Suardiz and automotive specialist Stellantis, will service a twice-weekly shipping route from Vigo in Spain to the Queen Elizabeth II Dock at Eastham

which sits within Peel Port’s Mersey cluster.

The shipping service will supply parts for the Ellesmere Port vehicle manufacturing facility which is set to become the first of Stellantis’s plants to produce solely battery-electric models for commercial and passenger vehicles.

The project is reported as facilitating a greener end-to-end maritime logistics service taking

an estimated 14,700 truck journeys annually off roads in the UK and continental Europe.

The hub is based on recommissioning an existing berth which forms part of 9.5 acre site on the River Mersey, adjacent to the Manchester Ship Canal, also operated by Peel Ports.

AD PORTS TARGETS POINTE-NOIRE

MULTI-PURPOSE TERMINAL

AD Ports Group (ADP) has confirmed the signing of a new Head of Terms (HoT) with the Ministry of International Cooperation and Promotion of Public Private Partnership of the Republic of Congo, for a new multipurpose terminal at Pointe-Noire, Republic of Congo.

Under this arrangement, ADP has secured exclusive rights to invest in the development, operation, and management of the “New Mole Port” which is intended to handle cargo

including containers, general cargo and break-bulk.

The HoT agreement is valid for one calendar year from the date of signing and could lead to a concession agreement, subject to technical, legal, commercial, and environmental due diligence.

ADP is looking to provide the new facility with digital services and technology solutions, plus operating efficiencies accruing from the design, implementation and operation of a single-window system and generally from software development, digital

architecture, business analytics, digital operations support, and digital transformation.

Denis-Christel Sassou Nguesso, Minister of International Cooperation and Promotion of Public Private Partnership of the Republic of Congo, notes: “AD Ports’ experience and global network will no doubt add significant value to our efforts to make the ‘New Mole Port’ at Pointe Noire one of the best performing ports on the central west coast of the African continent.”

French shipping giant CMA CGM Group is converting its financial support for Brittany Ferries into an equity position. The company operates between France, the UK, Ireland, and Spain. CMA CGM provided €25 million to Brittany Ferries in September 2021 to support the company’s post-COVID-19 recovery, through €10 million in convertible equity and a €15 million loan. CMA CGM said at the time the partnership would “unlock synergies,” including the cross-channel freight business.

IMO in Angola

The International Maritime Organization (IMO) has visited Lobito Port in Angola to assess the progress of the implementation of the IMO-Singapore “Single Window for Facilitation of Trade (SWiFT) Project”. Lobito is piloting the development of a Maritime Single Window (MSW) system to allow electronic submission, through a single online portal, of all information required by various government agencies when a ship calls at the port.

8 Peel’s new River Mersey automotive hub is scheduled to commence operations in September 2023

OCT Lisbon Portugal

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environmental challenges with economic demands in

Host Port:

Sponsored by:

2023 Conference Sessions includes:

reduction & adaptation

Waste Management and Circular Economy

Infrastructure Development

Digitalization and Technology

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Meet and network with over 200 attendees representing port authorities, terminal operators and shipping lines. For more information on attending, sponsoring or speaking, contact the events team: visit: greenport.com/congress

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The US government has released its new National Cybersecurity strategy. The key focus according to the Biden administration is a “rebalancing” of responsibilities for defending cyberspace away from local governments, small businesses and individuals and towards specialised organisations that are capable of limiting the risks.

Apparently, the new strategy is to develop the focus around five specific pillars, namely:

1. Defend Critical Infrastructure

2. Disrupt and Dismantle Threat Actors

3. Shape Market Forces to Drive Security and Resilience

4. Invest in a Resilient Future

5. Forge International Partnerships to Pursue Shared Goals

Adopting this new approach will, according to the US government, enable the main goals of making the US ecosystem more defensible from attack, while ensuring cyber-defence is an easier, cheaper and more effective process overall.

Nexyst 360, a grain transportation solution provider, is partnering with Nexxiot to digitalise its fleet of grain shipping containers.

Through the application of Internet of Things (IoT) connectivity hardware, using Nexyst 360’s software solution, dubbed Traceable AG, real-time transport intelligence across the entire container movement journey can be provided.

As a consequence, Traceable AG is able to digitally link farmers, commodities buyers, and

Yilport Leixões TOS

Yilport Holding has confirmed the completion of the integration of the Navis Terminal Operating System (TOS) at its Yilport Leixões terminal in Portugal. Yilport expects this integration process to ensure a more efficient terminal operations system for the facility, by coordinating vessel, cargo and yard operations, and longer term it will also be the base for any future automation and equipment/truck detection systems that could be added.

USA RELEASES NEW NATIONAL CYBERSECURITY STRATEGY

In a statement released accompanying this new plan, the following was confirmed: “Next-generation technologies are reaching maturity at an accelerating pace, creating new pathways for innovation

while increasing digital interdependencies. Its implementation will protect our investments in rebuilding America’s infrastructure, developing our clean energy sector, and re-shoring

8 The US government plans to rebalance cybersecurity responsibilities towards specialist service providers

America’s technology and manufacturing base.”

360 & NEXXIOT PARTNER TO DIGITALISE GRAIN CARRYING CONTAINERS

NEXYST

retailers/consumers who use Nexyst 360’s ‘smart’ NexBox container.

The ability to link Nexxiot hardware and software with NexBox and the Traceable platform can, therefore, increase farm-to-consumer security, monitoring and improve quality assurance processes for all stakeholders in the transport system as the supply chain

Blockchain 4 Deal

Global Shipping Business Network (GSBN) has confirmed a new collaboration with COSCO Shipping Lines (COSCO), Orient Overseas Container Line (OOCL), and the Shanghai Research Institute of Chemical Industry Testing Co., Ltd (SICIT) to collectively leverage blockchain technology to enhance transportation safety. GSBN explains that a new streamlined process delivers safe transportation certificates, using accurate and reliable information.

receives customised alerts about risk factors based on real-time data of location monitoring and cargo condition

Nexyst 360 states that its customers will be given better visibility of assets across the transportation network to optimise the very highest standards of food transportation on a global basis, as Robert Ankeny, Operations Manager and

Suez Zone Phase Two

The European Bank for Reconstruction and Development (EBRD) is launching phase two of its technical support program to digitalise the Suez Canal Economic Zone (SCZone). Phase one was released in August 2020 and successfully completed in 2022, resulting in significant cuts in red tape for investors, according to EBRD, including a 35 per cent reduction in procedures for re-engineered services while revenues from fees and service charges went up by 110 per cent.

Partner, Nexyst 360 and Traceable AG, LLC, explains: “This partnership with Nexxiot is an important milestone for Nexyst 360 and Traceable AG, LLC, as it encompasses the complete digitalisation of our transatlantic fleet. We are the link between the farmers and the market.

BRIEFS

Wilson Going Digital

Norway-based Wilson EuroCarriers is working with Finnish maritime technology company, Seaber.io, to digitalise all fleet scheduling. Seaber is able to utilise its technological platform solution to better optimise fleet scheduling requirements, while maximising TCE (time charter equivalent) activities, to help improve operating efficiencies, profitability and reduce environmental impact. Seaber technology integrates seamlessly with existing software.

Hosted by:

Growing Sustainable Supply Chains: Short Sea Shipping & Intermodal Networks Conference Programme

Royal Liver Building, Liverpool, UK

Sponsor: Supporters:

A neutral pan-European network dedicated to the promotion of short sea and feeder shipping and the intermodal transport networks that support the sector.

Chairman: Nick Lambert, Co-Founder & Director, NLA International Ltd

visit: coastlink.co.uk

contact: +44 1329 825335

email: info@coastlink.co.uk

#Coastlink

Media partners: GREENPORT

DAY ONE – Wednesday 3th May 2023

08:30 Coffee & Registration

09:00 Chairman’s Welcome

Nick Lambert, Co-Founder and Director, NLA International Ltd

SESSION 1: MARKET SECTOR OVERVIEW - THE NEW NORMAL IN AN ADAPTING MARKET

Considering Trends, Market Forces, and emerging Opportunities for Short Sea Feeder Services and Logistics

09:10 Port’s Welcome Address

Claudio Veritiero, CEO, Peel Ports Group

09:25 Gold Sponsor’s Address

09:35 Keynote Presentation

Roger Megann, Managing Director, WEC Lines UK Ltd

09:50 Network Development & Appraisal in the Short Sea Sector

Mike Garratt, Chairman, MDS Transmodal

Considers the trend towards longer maritime crossings and the use of non-accompanied modes in short

sea shipping to Great Britain and the case for incorporating the public interest cost benefits of such switching in the appraisal of road, rail and port infrastructure development.

10:05 Building a case for a greener transport alternative for smaller cargo volumes –

Short Sea Shipping and intermodal cargo flow

Michael Rosenkilde Lind, Senior Commercial Manager, Port of Aalborg

A presentation from the Port of Aalborg with the research and findings of the process of trying to establish a new Ro/Ro route with only smaller local stakeholders along with major cargo flows on rail in transit.

10:20 Q&A

10:40 Coffee & Networking

11:15 PANEL DISCUSSION: Post-Brexit & Post-Pandemic: Are we where we need to be?

Panel Moderator: Richard Ballantyne OBE, Chief Executive, British Ports Association

Panellists include:

Doug Bannister, CEO, Port of Dover

Howard, Knott, IEA Logistics Consultant, Irish Exporters Association

Andima Ormaetxe Bengoa, Director - Operations, Commercial, Logistics and Strategy, Port of Bilbao Authority

Sean Potter, Commercial Director, DFDS A/S

12:30 - 14:00 Lunch & Networking

SESSION 2: HOW TO PROMOTE GROWTH AND DELIVER RESILIENT END TO END SUPPLY CHAINS

A look at the changing landscape in end-to-end intermodal networks & the just in time supply chain.

14:00 Opening Address

Michelle Gardner, Deputy Director – Policy, Logistics UK

Logistics UK will highlight the opportunities in the supply chain for innovation and modal shift to benefit the environment and consumers as well as operators throughout the supply chain.

14:15 What mode of transport uses Ports?

Stephen Carr, Group Commercial Director, Peel Ports Group

We explore why the true answer to that question defines why both industry and consumers need to think differently about the role and the functions of modern ports.

14:30 Practical examples of building resilience into a supply chain using intermodal services

Geoff Lippitt, Chief Commercial Officer, PD Ports

How intermodal, short sea shipping, RoRo, LoLo and last mile delivery road haulage can interlink to provide resilience and enhance capacity for ports and operators

14:45 Port of Antwerp-Bruges – providing total intermodal connectivity solutions

Justin Atkin, UK & Ireland Representative, Port of Antwerp-Bruges

With excellent connections to the hinterland by estuary and inland barge, rail, road, and pipeline, discover how the Port of Antwerp-Bruges provides totally integrated transportation solutions, helping shippers ‘green’ their supply chains.

15:00 Q&A

15:20 Coffee & Networking

15:50 PANEL DISCUSSION: Freeports: Driving change for coastal shipping and the supply chain?

A discussion on the impacts and benefits of Freeports. How will supply chains adjust? Xx

Panel Moderator: Richard Ballantyne OBE, Chief Executive, British Ports Association

Panellists include:

Giles Jones, Project Manager, Liverpool City Region Freeport

Ben Harraway, General Manager, Portico Shipping

Nolan Gray, Freeport Director, Tees Valley Combined Authority

Arne Mielken, Managing Director, Customs Manager Ltd

17:15 Conference Day 1 Wrap-Up – Conference Chairman

17:30 Conference Close

17:30 Evening Drinks Reception at the Royal Liver Building

18:45 Conference Dinner at the Royal Liver Building

DAY TWO – Thursday 4th May 2023

08:45 Arrival: Coffee

SESSION 3: SUSTAINABILITY & THE ENERGY TRANSITION – A ROUTE TO SHIPPING FREIGHT SUSTAINABLY

The journey and challenges for ports, shipping & logistics in achieving net zero

09:10 Chairman’s Opening & Summary of Day 1

09:15 Keynote Presentation

David Browne, General Manager, MAERSK

09:30 A Green Port’s Journey to Net Zero

Tanya Ferry, Green Port Consultant, Royal Haskoning DHV

Learn how Royal HaskoningDHV is helping the world’s ports embrace digital innovation, decarbonisation, and new-found resilience. And discover the challenges, savings, and operational benefits to be found on the journey to Net Zero.

09:45 Port of Amsterdam – At the forefront of the transition

Mark Hoolwerf, Deputy Director, Port of Amsterdam International

The port of Amsterdam is a global energy hub, meaning that it stands for a significant decarbonisation challenge. This presentation will focus on how the Port of Amsterdam approaches the energy transition, with a focus on its overall strategy and recent initiatives and developments. This will include subjects such as the role of hydrogen, clean shipping, and the collaboration with different parts of the value chain.

10:00 Lessons learned with shore power

Jacob Bjarkam, Business Development Manager, PowerCon

Shore power is expected to be scaled tremendously. PowerCon will provide key insights and lessons learned on how to best to implement this technology successfully, by sharing hands-on experience from past projects plus the latest news and innovation.

10:15 Q&A

10:35 Coffee & Networking

11:10 PANEL DISCUSSION – Driving Efficiency through Data & Port Collaboration

Improving supply chain efficiency through data, collaboration, and digitalisation

Panel Moderator: Tim Morris, Head of Corporate Communications, Associated British Ports

Panellists include:

Richard Willis, Technical Director - Port Operations & Technology, Royal HaskoningDHV

Eleni Bougioukou, Innovation Manager for Energy & Sustainability, Port of Tyne

Grant Hunter, Director - Standards, Innovation and Research, BIMCO

Ross McKissock, Director of Unitised, Port of Tilbury London Limited

12:20 Conference Wrap up by Conference Chairman

12:30 Lunch & Networking

13:50 Working Group Session ‘What are the blockers governments need to remove to enable the industry to accelerate to Net Zero’

Facilitated by the Chairman Nick Lambert, & Stephen Carr, Group Commercial Director, Peel Ports

15:10 Coffee & Networking

15:30 Technical Visit at Port of Liverpool Hosted by Peel Ports Group, delegates can enjoy a tour of the Port of Liverpool encompassing Liverpool 2.

Sponsored by Peel Ports - Liverpool

Conference Fee

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Fee Includes

• Conference attendance including lunch & refreshments

• Electronic documentation

• Technical Visit 4 May 2023

• Conference Dinner 3 May 2023 (Premium Package)

• Presentation download (Premium Package)

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A FIRST FOR PSA SINES…

PSA Sines has placed an order for six Automated RubberTyred Gantry (aRTG) units from Konecranes. This deal marks the first time the Portuguese subsidiary of PSA International has decided to obtain this equipment. Delivery is slated for Q1 2024.

PSA Sines said that the new

automated equipment will help improve operating efficiencies, while also giving more predictable performance and greater safety, factors typically associated with automated operations. A good example of this is how all truck handling activity will be managed by a Remote Operating System (ROS)

to minimise workforce interaction with machinery.

The new ARTG units have the ability to stack up to five containers, compared to only three boxes when straddle carriers are used.

The new equipment is also being purchased to support the terminal’s expansion plans, with

...AS PSA HALIFAX GOES ALL ELECTRIC

PSA Halifax has confirmed it has signed a new agreement with Konecranes to acquire eight new electric Rubber Tyred Gantries (eRTGs) for its Atlantic Hub facility on the East Coast of Canada.

Delivery is expected during Q2 2024 and will see the terminal’s total RTG fleet increase

DCI Dredging Plans

The Dredging Corporation of India Limited (DCI) is making moves to meet India’s port dredging needs of 100 million cubic metres per annum (mcmpa). DCI said it can already reach 70-75 mcmpa of this total, with 60mcmpa met by using nine of its in-house dredgers and outsourcing the remaining 10-15 mcmpa. To support activities, an order has been placed for a Beagle Series-12 Trailing Suction Hopper Dredger (TSHD).

from nine to 17 units. This new equipment will replace the existing diesel units and will result in the terminal being an all-electric RTG facility, which is an important to meet its sustainability and decarbonisation reduction targets.

Jan Van Mossevelde, CEO, PSA

ACFS Sany Order

Australia’s transport, warehousing and freight logistics company, ACFS Port Logistics, has placed a large new equipment order with SANY Group. Before the end of 2023, the company will receive 19 twin pick empty container handlers and 14 heavy reach stackers from the Chinese port equipment manufacturer. A nationwide service maintenance contract with Ultro Port Solutions is also included, AFCS outlined.

Halifax notes: “Volumes at PSA’s Atlantic Hub have grown rapidly over the last hree years. The new E-RTGs will allow us to densify our container yard and increase our total terminal handling capacity by over 25 per cent while bringing us closer to achieving our sustainability goals.”

New STS at MCT

New ZPMC ship-to-shore container cranes have been delivered to the Port of Gioia Tauro. Italy, in the Central Mediterranean. The units are for the Medcenter Container Terminal, which is operated by Terminal Investment Limited (TIL), part of MSC. These new units have an outreach of 72m and a height of 54m , enabling them to successfully support container ships of up to 24,000 TEU in size.

the existing capacity of 2.3 million TEU per annum due to rise to 4.1 million TEU.

PSA Sines further notes that this new equipment will play a key role in reaching its sustainable goals through helping to reduce its carbon footprint.

PSA Sines has invested in excess of €200 million (US$210 million) since 2000 and this latest project, dubbed Phase III, will see a further €300 million (US$310 million) spent to raise annual capacity to 4.1 million TEU per annum by 2028.

BRIEFS

MARAD Invites

The US Maritime Administration (MARAD), Department of Transportation, is inviting public comments on future electric port requirements. MARAD is requesting the Office of Management and Budget (OMB) ask for information under OMB 2133-NEW (Building American Production Capacity for Electric Port Equipment and other Port Infrastructure Items), to help identify future demand for electric-powered port equipment.

8 PSA Sines has ordered automated RTGs for the first time as part of its capacity-enhancing expansion

BOXBAY HIGH-BAY STORAGE SYSTEM SIGNED FOR USE IN BUSAN

Green Stanlow

DP World’s Busan terminal in South Korea is to install the BOXBAY high-bay storage system, representing the first commercial use of the system and following a new contract signed between Pusan Newport Corporation (PNC) and Boxbay FZCO (a joint venture of DP World and German plant technology supplier, SMS group).

DP World developed BOXBAY

in conjunction with SMS, adapting the storage system originally designed for heavy metal coils.

DP World and SMS built a pilot facility at Jebel Ali Terminal-4 in January 2021 and by the end of June 2022, a total of 190,000 container movements had been successfully completed under realistic daily operating conditions.

Integrating BOXBAY technology in Busan in conjunction with the existing terminal operations will help eliminate 350,000 unproductive container moves per year and improve overall truck servicing time by 20 per cent according to BOXBAY.

FIRST HEAVY ELECTRIC FLT

Kalmar, part of Cargotec, has confirmed a new order has been secured from Austrian rail logistics service provider Innofreight Solutions GmbH (Innofreight) for a Kalmar heavy electric forklift – the first of its kind to be delivered to a customer anywhere in the world.

The order was booked in Cargotec’s Q4 2022 order intake and the machine is scheduled to be delivered during Q4 2023.

8 BYD (Build Your Dreams) has delivered an 8Y terminal tractor to New York beer and beverage wholesaler, Manhattan Beer Distributors. This is the first electric terminal tractor in the company’s fleet of over 355 trucks. This new unit is reported to have the ability to provide 22 to 26 hours of consecutive operation and is intended for operation throughout New York City, Long Island and the Hudson Valley

Peter Wanek-Pusset, Managing Director, Innofreight, elaborates: “If we are to achieve our target to be carbon neutral by 2040 it is essential that we start reducing our reliance on fossil fuels now. Kalmar is a long-term partner and a leader in the field of eco-efficient electric equipment, so we are very pleased to be able to take this initiative forward together with them.”

Innofreight was founded in 2002 and develops modular rail wagon solutions for a variety of industrial sectors including pulp and paper, agriculture and construction. The company’s equipment is in operation in 20 European countries on all three European standard rail gauges and includes 60 diesel-powered Kalmar forklifts with various lifting capacities.

Stanlow Terminals has confirmed plans to develop a major new import terminal for green ammonia at the Port of Liverpool. The new facility will be an expansion of the existing Stanlow Terminal operation. Feasibility studies are currently ongoing, with operations slated to commence in 2027. Storage of more than one million tonnes of green ammonia per annum is planned, which will be for onward distribution into the UK or conversion back to green hydrogen for sale in the Northwest of the UK.

Poti Investment

APM Terminals Poti, Georgia, continues to make significant investments in port equipment. The most recent purchase comprises two, 40m3 hydraulic bulk discharge hoppers to discharge bulk cargoes more efficiently with minimal dust or cargo loss and offering a daily cargo discharge rate of up to 10,000 tonnes. In addition, an excavator, a front-end wheel loader, a skid steer loader and 80 rotainers have all been added for bulk activities.

New ELME INNOVATION

ELME is adding new spreader models to its portfolio. These include the New Generation INNOVATION 817 Spreader, offering a combination of increased structural strength and 16 per cent reduced weight to provide an estimated life expectancy increase of 30 per cent related to fatigue resistance and standard load case conditions. The 818 INNOVATION and 857 INNOVATION spreaders also offer improved design with increased strength and reduced weight.

8 Boxbay set for Busan

BARRY PARKER

There may be a shift occurring in thinking in the US and it could be beneficial to ports.

After the supply chain crisis, the “Ever Given”, and disruptions in the energy trades since early 2022, the movements of cargo are certainly in the public eye. That is actually good news for ports - if you believe the maxims about money following attention.

Traditionally, newspaper and TV articles have tended to be local, with funding coming from closer to home. But there has been a new fervor at the Federal level, as evidenced by large grant programs for port infrastructure, and now emerging, new funds sources coming in from mega-bills passed in 2021 and 2022. While I try to shy away from geopolitics, I have detected a not-so-subtle shift in attitudes about the US role in world trade. In particular, I attended a maritime conference recently in New York (happily back to “in person” style) where this came up.

Over the last few years, digitalisation and decarbonisation

THE SHIFT TO OPPORTUNITIES?

foreign policy. Certainly, a part of the new realities postulated by the speakers is goods production coming back to US shores, though not on a massive scale. Their feeling was that globalisation has gone too far to be reversed, but it might be finetuned, meaning that sources for inputs and finished products may shift around to alternative, and more “reliable” origins.

have loomed large on this event’s agenda. This year, those themes were certainly on the program, but the organisers were able to attract some speakers from inside the Beltway, giving their takes on how foreign affairs (sanctions but also broader trade policies) might be impacting the maritime trades.

On the way home from the event (held in a beautiful venue overlooking the East River in midtown New York), a big item

PETER DE LANGEN THEANALYST

While many ports do not report monthly traffic volumes, the data from the ports that do, as well as the data from Cosco Shipping Ports, the only large terminal operating company that publishes monthly container volume data for all its terminals, clearly shows volumes are weak and generally below 2022 levels.

. The large US West Coast ports of Los Angeles and Long Beach have both seen very substantial (>30 per cent) declines for the first two months of 2023. In Europe, Valencia’s data for January 2023 also shows a significant decline (>20 per cent) of volumes compared to 2022.

on that day’s evening news was the mysterious balloon flying over the US. While the political speakers had not predicted the flyover (or the three others that followed during the next week), their remarks did suggest that the US was undergoing a shift in thinking towards a more protectionist and, dare I say, potentially insular approach to

For the ports, now (as alluded to above) much more in the public eye, these shifts bring opportunities to liaise with customers and potentially develop new business. The conversation at the conference also touched on activities by large cargo interests actually chartering smaller vessels. While this topic remains very circumspect and hush hush (show me those bills of lading, please!!!), to the extent that it actually becomes a sustained feature in cargo flows (I have my doubts), working with cargo interests and vessel owners on highly bespoke arrangements is clearly a business opportunity.

WEAK EARLY 2023 PORT VOLUMES IN ABUNDANCE

Cosco Shipping’s Ports volumes for its entire portfolio of terminals also show declining volumes, with an average decline of around six per cent for the first two months of 2023. The company’s terminals in China witnessed, on average, a drop of around eight per cent. In Northern Europe, Cosco’s terminal participations in Antwerp and Rotterdam reported a decrease of more than 10 per cent, as did Cosco’s East Mediterranean hub in Piraeus. All of this should not come as a surprise, given the frequently occurring blank sailings and shipping lines regularly announcing a

reduction of services.

As far as I can tell, there is no single straightforward explanation for the weak start to 2023. On the US West Coast, strikes were a key factor, but this issue was not widely manifest elsewhere, Hamburg being a notable exception. One could have thought that China’s decision to ease COVID-19 restrictions end of 2022 would have provided a boost for export volumes but at least so far, that does not seem to have happened. The global container volume forecasts for 2023 by UNCTAD and Clarkson’s (both

predict around two per cent annual growth) were modest from a historical perspective, but now seem optimistic, also in view of the bleak prospects for an end to the war in Ukraine and the ongoing ‘cost-of-living’ problems in many advanced economies.

For all parties involved in making long term decisions in assets in container freight transport, the question whether the current weak volumes are due to ‘temporary conditions’ or they indicate a structural decoupling between the overall economy and container freight volumes seems as relevant as ever.

8 Ports in the US could soon benefit from new opportunities....

Out with the new and back with the old as carriers revert to market share strategies that further collapse freight rates and re-structuring of partnerships.

Liner shipping follows an age-old strategy when it comes to an imbalance in supply and demand. Fight tooth and nail for every container that is available to maintain as high a market share as possible even in the knowledge that this will drive freight rates to the floor. We have already heard comments from various carrier CEOs to that effect, despite the fact that most of them have full orderbooks for vessels of all sizes, justified perhaps, in their eyes as they are “greener” than the current fleet which is too young to scrap.

When the three big alliances came together not that many years ago the assumption was that it would be easier to manage capacity by reducing the number of port calls within individual strings and capacity within the

LINER SHIPPING: OUT WITH THE NEW AND BACK WITH THE OLD

volume and freight rates.

The vast profits earnt earlier are quickly being spent on ordering new ships with greener engines and investments not directly linked with ocean transport.

alliances as needed to maintain the equilibrium with demand. Well, that went out the window by mid 2022 when the pandemic ended, and demand began to lag as inventories were cleared out as the economic environment became foggy.

The first sign that something was amiss came with the message from Maersk and MSC that they will not be renewing their alliance agreement. It came

MIKE MUNDY THE

STRATEGIST

as a shock to the industry but it should not have done so, as these two independent-minded companies have such different strategies that they could not withstand the pressures of the downturn that was facing them. The “new” norm that was touted in 2021 had no chance to survive the twin collapse of cargo

As so often in the past, carriers reverted to form by indicating they are entering into a price war strategy just as their orderbook was growing. The question is, how do you manage a strategy to fill your slots on an alliance vessel when your supposed allies using the same vessel, are doing the same thing?

So as a consequence we should not be surprised to see at least one of the two remaining alliances break up early, possibly re-juxtaposing itself into new groupings. THE Alliance is possibly the most stable.

As the old norm returns, little has changed other than the huge profits made in the last two years.

Technically you can’t say the ban is over because it was never formally in place but in reality there is a change of attitude by the Chinese authorities which is seeing a return of Australian coal to the Chinese market. At this stage, however, questions remain as to what level export volumes from Australia will build up to and allied to this what the general impact on seaborne coal trade will be?

The unofficial ban came into being from late 2020 arising from arguments about the origin of Covid-19. Australia was seen to be pointing a finger at China in this respect and following this orders from China for coal dried up. China elected instead to secure supplies from Mongolia, Russia, the USA, Canada, Colombia and Indonesia. This had an impact on

A NEW ORDER IN CHINA –AUSTRALIA COAL TRADE?

coal pricing in 2021 and proved in certain instances to be a logistical challenge but nevertheless sourcing from these countries did mean that China was able to fill a 80 million ton deficit.

China’s coal imports were around the 300 million mark in 2019 and 2020, rising to 320 million tons in 2021.

The door to revived Australian coal trade was seen to inch open on January 3 when China’s National Development and Reform Commission decided to allow four state-owned companies – China Baowu Steel Group, China Datang, China Huaneng Group and China Energi Investment Corp – to import Australian coal for their own use.

It is the case that further orders have been placed since.

There is nevertheless caution on the supply side as to the re-opening of this trade door. While the nod has been given to buyers that they can proceed with coal purchases from Australia there are still some reservations about the potential attitude of Customs when receiving cargoes. There is also the reality that in developing alternative markets to achieve coal sales to fill the gap left by China Australian suppliers have built strong relationships elsewhere. It is unlikely that they will be in a rush to close or scale these down based on their hard-earnt understanding of political influence over Chinese

coal imports. Also influential, Bejing has built its energy supply by producing more electricity from thermal power generation, wind and solar farms, resulting in a significant alleviation of its energy shortage.

The Russian invasion of Ukraine also comes into play – one of the impacts of this on pricing is that it has to a significant extent served to close the price gap between Australian coal and Chinese domestic supplies. So, as it stands, only marginal economic benefits will be realised on both sides. It is not yet by any means a return to the way things were and longer term this may play to the benefit of both parties.

8 Beyond Maersk and MSC there is scope for the dissolution of at least one more major alliance grouping

TAIWAN: AT A CROSSROADS

8 Designed to cater for the largest containerships, the first phase of the new Evergreen facility at Kaohsiung’s 7th Container Terminal is scheduled to commence normal operations on 1 May

Taiwan has moved to the centre stage of world risks. After a long period of mutual coexistence (and increased economic integration) renewed political tensions from China, spurred at least in part by a partial loss of confidence in the mainland’s economic progress, attention has been turned to the future of the island nation. What has happened to container trade and what are the implications for any largescale upset for the port sector?

VOLUME DEVELOPMENT

In 2022, total container volumes at Taiwan’s four ports reached 14.7m TEU. No significant growth has been noted since 2015, with this reflecting the uncertainties of the Covid period but also a shift in the pattern of demand. In the early part of the 2010s demand was spurred to a large degree by transshipment activity at the key ports with this accounting for 38.6 per cent of moves across the quays in 2012. This has declined sharply as port development in many of the previous feeder zones in China and ASEAN markets has progressed and expanding demand has seen direct calls move to centre stage.

Another shift has been the changing importance of ‘Cross Strait’ container flows – i.e. direct links between China and Taiwan. Although permitted from 2008, this was formalised in the Economic Co-operation Framework Agreement between Taiwan and China in 2010. This arrangement also eliminated most tariffs on trade between the two parts of China. Direct shipping links were also permitted with this replacing the previous system of goods transfer via third-party ports.

The primary aim of these developments (at least from a Taiwanese perspective) was to stimulate growth that had

been severely impacted by the global economic downturn of 2008. This, together with a Free Trade Zone policy at the major ports, was successful and stimulated domestic volumes.

Figure 1 summarises the development of Taiwanese container port volumes by category since 2008. The major trends noted are the recent stagnation in Cross Strait flows (following earlier rapid growth) and the decline in the proportion of transshipment volumes. Local cargoes have continued to expand but have suffered as a result of Covid disruption since 2020. There has been an increased contribution of FTZ cargoes within this sector. Since 2015 the value of goods generated from the FTZs has increased by some 14.8 per cent to reach a total value of 3.71bn Taiwan Dollars in 2021– with indications of some further increases in 2022.

So, the switch is away from a regional transshipment role towards a reliance on import/export flow. Indeed, the underlying pace of growth for local cargoes is in line with what would be anticipated in other developed economies.

PORT DEVELOPMENT

Container trade is dominated by the major terminals in Kaohsiung, although market share has fallen back from 71 per cent in 2015 to 64.5 per cent last year. Total Kaohsiung volumes peaked at 10.43m TEU in 2018 and have since followed a typical Covid-led profile.

Much stronger growth has been noted at each of the three smaller ports, with Taichung and Taipei (and neighbouring Keelung) seeing increases in both absolute volumes and market share across the period. This diversification away from Kaohsiung reflects the broader domestically-led basis of Taiwanese container trade growth over recent years.

Andrew Penfold examines the twists and turns of Taiwan linked container trade and identifies the key influencers to the shape of things to come

CHANGING REALITIES

It is clear that recent years have been quite stable, but the current outlook is much more problematic. The deterioration of relations between China and the US from 2018 has upended the status quo. Although not yet a full on ‘trade war’ pressure on high tech Taiwanese companies to scale back their reliance on China has moved to centre stage and this has driven Taiwan to increasingly focus on trade with ASEAN markets – the so-called ‘New Southbound Policy’ to expand and diversify its trading relations with other countries in the region. With this, of course, actively resisted by China using its economic influence to isolate Taiwan.

The pressures increased in the middle of 2022 with the visit of US House Speaker Nancy Pelosi to Taipei which precipitated a flourish of military activity and ‘live fire’ activity in the Taiwan Strait. The degree to which these developments are signs of a forthcoming escalation in rhetoric or – indeed – a full scale attempt to invade remains one of the great unknowns in the world economy.

If push really does come to shove, then the specific situation for the individual Taiwanese ports is likely to be the least of our problems with global sanctions on China seeing a virtual shutdown in Asian trade. The implications are impossible to quantify but a continued playing out of the current situation seems certain to result in even greater focus on domestic demand with a decline in Cross Strait traffic as the current level of relations with China deteriorate further.

PORT IMPLICATIONS

Within this (to date) stable profile, the emphasis in Taiwanese ports has been on upgrading facilities to handle the largest classes of container vessels that are increasingly dominating the country’s trade. At the centre of this has been Kaohsiung’s move to lease Wharf Nos. S1 & S5 in the 7th Container Terminal to Evergreen Marine on a long-term basis. The driving force here is the need to berth the Megaships (24,000TEU+) that are being delivered to the line. This forms part of the current ‘Comprehensive Commercial Port Development Plan’ which will run through to 2026 and has a capital value of some US$1.37bn. It will increase national container capacity to around 18.6m TEU per annum.

This has been a rapid development, with the first phase of the expansion due to commence operations at the end of April following delivery of cargo handling equipment at the turn of the year. Once the expansion (which was initiated in 2011) is completed this year the 7th Container Terminal will offer five 18m deep container berths with a total length of 2415m and a terminal area of 149 hectares.

Evergreen Marine, the port’s largest container shipping client, handled over three million TEUs at the port in 2022. The company’s order for new vessels has been the primary catalyst for terminal expansion. To complete this investment Evergreen has ordered 19 remotely operated ship-to-shore (STS) container cranes and 56 automated gantry cranes, which are currently being installed. The intention is to move towards full yard automation.

Although containers are central to the programme,

investments will also include a new cruise terminal and various green improvements and capacity expansion at the nation’s other major gateways.

WHAT NEXT?

The overall situation is very difficult to assess, if things stay as they are the emphasis in each of the ports will be towards further investment to handle the largest vessels with increasing ties to local demand and to ASEAN trading partners. Taiwan reached ‘Developed’ status many years ago and is now a very good example of an efficient and highly integrated container port operation.

The danger is outside the control of any of the ports. One can only hope that a steady further development of recent trends is recorded, rather than any Ukraine-style upheaval. The latter alternative would be far more disruptive at the global level than anything seen in many years with container trade forced to a screeching halt. Unfortunately, recent experience does not suggest the sensible course of action is guaranteed.

8 Figure 1: Taiwan container volumes by type since 2008 (million TEUs)

8 Taiwan Container Volumes 2015-2022 (million TEUs)

8 Figure 2: Taiwan major port volumes – million TEUs

PROGRESS AND PROSPECTS

Neil Davidson and Erik Wehl, of the WAPPP* Port Chapter, take a searching look at the progress to date, challenges and prospects for port master concessions

8 Melbourne is one of a number of ports in Australia that have gone down the master concession route –global experience is limited but there are more projects in the pipeline

The trend in port concessions has largely been in favour of growing private sector roles in cargo handling operations and wider scope in investments under the tried and tested landlord port authority structure. Essentially, the public landlord port authority focuses on its long-term duty as guardian of the port, and private terminal operators focus on their raison d’etre – profits.

More recently though, there has been a growing number of instances where governments, mainly in developed nations, have chosen to also grant concessions to the private sector for the role of the landlord port authority, so-called port master concessions.

Table 1 (opposite) features some examples from Australia, Greece and Nigeria of where port master concessions have been granted.

The process of granting port master concessions continues in various places in the world. Earlier in 2022, the Brazilian government held an auction for the concession of Espírito Santo state port authority Codesa and had indicated an intention to also sell a 35-year concession for the Santos port company, landlord of the country’s biggest port. With, however, a new federal government recently installed this latter project is now understood to be under review.

COMPLEX ISSUES

A port master concession policy can be even more challenging and complex compared with “normal” port concessions as it raises a number of key issues:

5 Legislation/State Development Policy: The legislative

framework under which the master concession functions must be considered. Is there a requirement for an overall national policy for the development of ports in national jurisdiction?

5 Port Governance/Regulatory Oversight: The question arises of how to reconcile the duty/guardianship priorities of a public port authority with the natural profit maximising motive of a private master concession holder. Use of joint ventures can be involved but this introduces additional challenges. Granting a master concession means that the (privately-owned) landlord port authority concessionaire still has to carry out its duties in terms of safeguarding the port and its users. However, given the changed nature of the landlord company, some aspects of port regulation such as security and environmental matters might require involvement of federal or nation-wide regulators – another layer of oversight. Also, what can be done if the port master concession holder does not perform to required levels?

5 Strategic/Political Issues: The question of foreign ownership/control of strategic assets arises, as do national security objectives. There is also the likely change of ultimate ownership of the master concession holder during the lease period which can be very long.

5 Financing: Financing of major infrastructure projects at ports is often shared between state and local government/ port authorities. Are commitments from a privatised landlord port authority required? How to reconcile the differing expectations of the level of return on investment between the public and private sectors?

5 Length of lease – Given that one of the primary roles of a landlord port authority is investment in long-term infrastructure such as quay walls, a long lease period is

Based in Geneva, WAPPP* is a global non-governmental organisation that promotes best practices in PPP to align with UN SDGs.

usually called for (in Australia 99 years was used in some cases). However, circumstances can change radically over such long periods and some parties feel they are too long.

5 Clawback Provisions: There needs to be protection built into the concession so that if the master concessionaire sells off certain assets, the monies can be clawed back by the government. However, defining which assets should be subject to this provision can be complex.

5 Pricing/Conservancy Tariffs/Rent for Port Tenants: Pricing powers of master concession holders is a thorny issue, given that their primary aim will be to maximise profits (the same as the private terminal operators in the port). The question of whether to regulate or not arises. If so, how and what? Master concessions often result in the creation of local monopolies. There is also possible vertical integration across the supply chain by the master concession holder.

5 Incentive to Invest: Linked to both the length of the master lease and the pricing controls, there is the need to ensure that the master concessionaire will invest in additional capacity at the port as and when required. A private company may well take a different view to a publiclyowned one.

5 Competition: Given the very long length of master concessions there may well be new competition and likely entirely new port entrants to the market. So even if a master concession has a natural monopoly to start with, this may

CountryNotes

not be the case decades down the line. Issues such as regulation and oversight may well need to be adaptable therefore.

5 Terminal Operators - Relationships with existing terminal operators in the port (who may be competitors of the master concession holder) have to be considered.

ONE STEP FURTHER

It is interesting to note finally that the UK went one step further in the 1980s and 1990s and sold the freehold of the port authorities that were privatised, rather than going for a long-term lease. Perhaps surprisingly, there have been no major issues with this approach over the years, although none of the remaining UK public ports have been sold off since. Critics argue that all of the benefits of these ports accrue to private shareholders rather than the public sector while proponents point to greater efficiency and more streamlined and business-like management.

While these port master concessions might work in the developed world (e.g. Australia, Greece, UK), can these same mechanisms also be similarly effective in the less developed world?

Australia 5 State governments transferred major port assets (excluding port land) to port corporations (typically holding 99-year leases) and then sold them to private winning bidders.

5 Private ownership of these corporations has resulted in a degree of foreign ownership of Australian ports, usually in the form of financial investors.

5 The regulatory function following the privatisation is the public sector’s responsibility, for example price regulation where deemed necessary.

5 A number of major Australian port concessions have been sold via this master concession process over the last 25 years including Geelong, Adelaide, Brisbane, Sydney (Botany), Melbourne and Newcastle, with the rate accelerating in recent years.

8 Operating under a master port concession, Piraeus Port Authority recorded a turnover of €194.6 million in 2022 and a net profit of €52.9 million

Greece

5 In 2002, the Greek government granted a 40-year concession to OLP SA, the Piraeus Port Authority company.

5 In 2016, Chinese owned Cosco Shipping Ports was allowed to acquire a 51% stake in OLP SA, later increased to 67%.

5 Cosco had already obtained a long-term concession for the port’s two main container terminals in 2009, and so now is both landlord and tenant as far as container operations are concerned.

5 The control of the port authority in particular by Chinese interests has been controversial.

5 In 2017, the Greek government sold a 67% stake in Thessaloniki Port Company (with a 35-year concession) to a consortium headed by French liner company CMA CGM along with financial investors.

Nigeria

5 A 45-year master concession for a greenfield multi-purpose BOOT port development at Lekki has been granted to a consortium majority owned by Chinese interests but with minority stakes held by local private interests, the state government and the Nigerian Ports Authority.

5 This landlord company has then granted concessions for individual terminals within the port, for example a container terminal to be operated by CMA CGM.

While port master concessions might work in the developed world can these same mechanisms be similarly effective in the less developed world?

8 Table 1: Port Master Concessions – Examples

BRAZIL’S NEW POLITICAL DIMENSIONS

Brazil’s new Minister for Ports and Shipping was the headline act at this year’s Intermodal South America trade show and conference. Opening the 27th edition of the trade show, Márcio França, highlighted not only the economic importance of Brazil’s ports and aviation sectors but also the humanitarian impact, especially regarding the remote Yanomani tribe in the Amazonas jungle as well as the need for aid for the north coast of Sao Paulo after heavy rains caused floods and landslides.

“The vital aid that reached the

north coast of São Paulo after the heavy rains (February) was sent through the Port of Santos, which reinforces the importance of having public ports,” said França.

“We are also taking more than 16 days to deliver food to the Yanomami, when it could be done in a few hours if there was more infrastructure in the region.”

The trade show, held in Sao Paulo last month, was the 27th edition of one of the biggest shipping and port trade shows in the world and attracted a record number of attendees.

Renan Filho, Transport Minister,

was also present and highlighted the fact that new tax breaks will help Brazil’s infrastructure sector.

“Today, we invest less than two per cent of our GDP in infrastructure, which is very little given the size of Brazil. The tax reform should also get off the ground with adjustments that favour the development of the sector. In 2023, we will have the investment of resources proportional to four years for transport, which represents a breakthrough for the population and also for companies in the logistics chain.”

BRIEFS

Joint Manifesto

Pedro Moreira, President of the Brazilian Association of Logistics (Abralog), called upon attendees at the Intermodal SA’s logistics conference to come together at the end of the three days and create a “joint manifesto” on key findings that could be delivered to Brazilian government officials. “I believe that we can take advantage of the presence of representatives of all modes to create this manifesto because Brazil needs to be multimodal,” he underlined.

Vitoria Partnership

8 Some 146,971TEU of the containers moved along the Parana Waterway

2022

Paraguay – a total which is approximately 12 per cent less than the 165,577TEU achieved in 2021. Import boxes comprised 91,028TEU and export boxes 55,943TEU. More boxes may now seek alternative routes, such as via southern Brazil, due to the extra toll charges being imposed by Argentina on a Parana transit – see following pages. These volumes are slightly down on the last pre-COVID-19 year, 2019, when 160,547TEU were moved. The preceding year, 2018, was one of the best years ever for the Parana Waterway with 181,398TEU carried, according to figures from the Paraguay River and Maritime Shipowners Association (Centro de Armadores Fluviales y Maritimos del Paraguay, or CAFyM).

SANTOS BRASIL: SPECULATION RIFE

One issue that was high on the agenda of attendees at the Intermodal show was future ownership of container terminals at the Port of Santos, South America’s biggest port with 4.99 million TEU handled last year (38 per cent of Brazil’s total 12.6M TEU in 2022).

Speculation that MSC might step in and buy Santos Brasil –which last year handled 1.989 million TEU, making up 39.3 per cent of Santos’s 4.99M TEU - was the most widespread of the “rumors with substance.”

Robert Grantham, a director

with the Solve Shipping agency, said that this was a turnaround given that speculation just a few years ago was that Maersk Line would buy into the Brazilianowned terminal, as most of their boxed throughput, around 70 per cent of it, went there.

Santos Brasil, a listed company (on Bovespa, the Sao Paulo Stock Exchange) had to step in and make a statement to Bovespa that no contract offer had been made to key shareholder Opportunity, a Rio based private equity firm, but Santos Brasil would keep the market “informed

about material events that may ‘influence the quotation’ ”. MSC has consistently refused to comment on the subject.

“There has been a lot of talk about this and I guess the announcement by Maersk and MSC that they will fold up the 2M alliance will also lead to a parting of the ways on the joint BTP project in Santos,” Grantham told Port strategy, after attending the trade conference. BTP has a 38.5 per cent share of Santos containerised throughput and 70 per cent of the movement is with MSC vessels!

At the Intermodal SA panel on “port infrastructure” Ilson Hulle, the president of the newly privatised Port of Vitoria announced that Vports (the new management name) had entered into a partnership with Brazilian rail operator VLI to boost rail connections to the port. Vitoria is connected to Belo Horizonte and the state of Minais Gerais by the EFVM railroad which is key for the movement of components for the motor car industry, including Stellantis (Fiat, Peugeot, Citroen, etc) and Iveco.

Klabin in Paranaguá

Brazilian paper producer and exporter Klabin has opened up a new terminal in the south Brazilian port of Paranaguá. Klabin, which has 22 facilities spread around Brazil (of which eight are in the Paranaguá state of Paraná), has agreed to invest Reais87M (US$16.58M) over its 25-year concession contract. It will facilitate the export of various types of paper from its factories and from the new Puma 2 Project facility in Ortigueira.

during

were to/from

RIGHT RUMPUS ON THE PARANA

Through the imposition of unequal tolls on the River Parana Argentina has sparked a storm of protest from other user countries while the new dredging concession is still pending. Rob Ward reports

8 Representatives of the four affected governments are having high-level, ongoing talks with Argentina to try and resolve what is seen as a river toll crisis

A unilateral and “illegal” decision by Argentina to impose an “onerous” toll on the main river gateway to land-locked Paraguay has created a storm of protest from feeder operators and shippers alike, prompting fears of a backlash from Asuncion and other countries in the region.

The toll, which Paraguayan sources say has never been charged previously, is US$1.47 per net registered ton of vessel (mostly barge systems) for Paraguayan flagged and international flagged vessels and just Argentine Pesos1.47 for Argentine flag carriers – somewhere between 212 x and 394 x cheaper! (the difference is whether you use the official rate for dollar conversion or the black market rate).

It is estimated it could cost ship and barge owners an extra US$35 million (annually) to operate their vessels and this would have to be passed on to shippers and, ultimately, to consumers; mainly in Paraguay and Argentina, but also in Brazil, Bolivia and Uruguay.

“This is grossly unfair and it is illegal,” says Esteban dos Santos, who is the President of the Paraguay River and Maritime Shipowners Association (Centro de Armadores Fluviales y Maritimos del Paraguay, or CAFyM). “We are telling our members to reject the invoices for these tolls until such time as the two governments [in Buenos Aires and Asuncion, Paraguay] have come to an agreement on the issue. They have to be rejected in a formalised way within 10 days of arrival, to be resolved at a future date.”

It is not known yet what the Argentine authorities will do if Paraguayan vessel owners continue to not pay the fees. “We do not know what to expect from the pilots and coast guards in this respect,” cautions Dos Santos.

Representatives of the four affected governments are

having high-level, ongoing talks with Argentina, some at the Uruguayan embassy in Buenos Aires, to try and resolve the “bitter dispute”.

The toll, introduced at the end of January, is being charged for the 700 km leg of the River Parana from the Argentine port of Santa Fe right up to what is called the Confluencia (Converging of the Rivers Paraguay and Parana, near Resistencia and Corrientes) and it is all within the Argentine border.

Despite signing up to the Paraguay-Parana River Transport Agreement (PPTA) back in 1993 (whereby the signatories, including Bolivia, Brazil and Uruguay as well as the two conflicted countries, agreed to various protocols concerning the two waterways), the Argentine government says that as the section of the River Parana is within its borders it can impose a toll if it wishes and it could leave the PPTA . It adds, the money will be spent on dredging, signalisation and “other works”.

BLATANT BREACH

The other members of the PPTA say this is a “blatant breach” of the agreement and that this stretch of waterway needs very little dredging [during normal years without drought] anyway. If any changes were agreed, argue politicians and business groups in all those countries apart from Argentina, then 180 days advance warning should be given, not the 60 or so given by the Alberto Fernandez government on this occasion.

The CAFyM, which has 33 members and provides vessels for more than 90 per cent of all Parana River transits, says that free or cheap passage through this waterway is

8 “There is something going on behind the scenes which we can’t quite put our finger on,” suggests Dos Santos, Operations Manager at Navemar, an Asuncion based shipping company and operator of two key box terminals in the region including Terport Villettapictured

“absolutely essential” to countries like Paraguay, and Bolivia for that matter. Some 23 million tons of cargo is moved through this channel every year: 14 million tonnes to/from Paraguay (large volumes of grains as well as containerised cargoes); three million tonnes to Bolivia and six million tonnes to/from Brazil, via the Parana River for onward shipments towards Foz do Iguacu [the famous waterfalls that marks the three-way border between Paraguay, Argentina and Brazil] from the Confluencia.

The Centro de Navegacion (CN, which represents the interests of shipping agencies and the shipping and port communities), in Argentina, takes the position that this “rumpus on the River Paraguay” is part of a wider dredging and River Plate conundrum that includes a new long-term contract for an international dredging contractor – to replace the expired one between the Argentine government and Jan de Nul, the Belgian dredging outfit (see Port Strategy June 2022). Potentially, contract arrangements could also be put in place for a new dredging project for the Magdelena Channel, which would open up huge possibilities for box terminal TecPlata and other terminals in the port of La Plata, some 80km southeast of Buenos Aires.

CONTRACT CONTENDERS

“In principle we believe in more and improved infrastructure but only after proper research and studies have been carried out,” says Alfonso Jozami, General Manager, CN. “We also believe that this section of the river [Santa Fe to the Confluencia] must be included as part of a dredging and maintenance project for the whole Hidrovia system, thereby also including Santa Fe to Rosario and Buenos Aires and out to the ocean as well as an extra plan for the Magdalena Channel from the ocean to La Plata.” He adds that the overall contract would be for US$300+ million and extend over 20 years, and suggests that the Magdalena part of it should be less of a priority.

Jan de Nul has made no secret of its interest in taking on the new contract but it is not alone in this aspiration with well-known international dredging contractors Van Oord, Boskalis, Dredging International and Chinese CCCC Shanghai Dredging all expressing interest in the long-term dredging contract for the River Plate region.

Another source suggests that the “unilateral imposition of the toll” is partially to try and placate Jan de Nul who, he alleges, is still owed around US$30 million for works carried out in the region in the past.

“There is something going on behind the scenes which we can’t quite put our finger on,” adds Dos Santos, who is also Operations Manager at Navemar, an Asuncion based shipping

company, which additionally operates two key box terminals in the region (Terport Villetta and Terport San Antonio). “But we are following due process and are hoping for a resolution as soon as possible and for the Treaty to be adhered to.”

Critics of the Toll imbroglio in both countries and in Uruguay believe that the left-wing government in Buenos Aires, under Alberto Fernandez (but also under the influence of radical firebrand Cristina Kirchner), has imposed the levy – via the Administracion General de Puertos (AGP) in Buenos Aires and the Argentine Transport Ministry – as a sop to its trade union powerbase. The underlying thinking is apparently that the new toll arrangements will provide a catalyst to the growth of Argentine-flagged barges and other vessels which have traditionally accounted for only around a 10 per cent market share. The effective subsidisation of Argentine-flag operations will, the argument goes, facilitate an enlarged market share. Not everyone, however, buys this line of thought.

“The problem with this view is that it is a complete myth,” says one BA-based shipping consultant. “There is no chance of the Argentine flag being revived as costs are too high, the fleet was and still is moribund and there is no sign of newbuilds [the BA shipyard Tandanor is now mainly for ship repair] plus the Paraguayan operators are cheaper and more efficient. It seems, therefore, that this manoeuvre is a blatant election move pandering to the maritime and other unions and their supporters.

“Sadly Argentina is a mess right now, inflation and exchange rates are out of control and therefore the government is looking for distractions to make it look better in the eyes of voters, and this Toll mess is one of them.”

o the for its s in October this centre candidate time. The winner ecember and the be one of the ects –

d on far too in erse river users.

Argentina goes to the polls for its Presidential Elections in October of this year with a right of centre candidate expected to win this time. The winner will take power in December and the Hidrovia will have to be one of the key infrastructure projects pursued –already the award of the new dredging contract has dragged on far too long in the opinion of diverse parties but particularly those of river users.

The new dredging contract will extend over 20-years and is estimated to be worth in excess of US$300 million

8 Esteban dos Santos, President, Paraguay River and Maritime Shipowners Association, labels the recently imposed toll system as “grossly unfair and illegal…”

MAKING THE BEST OF THE WORST

*BMT, the specialist consulting group, provides detailed insight into distressed cargo management operations and how to extract value and upside in the face of a serious shipping incident

8 Incidents involving larger vessels – notably container ships and ro-ro car carriers – have been on the increase while experience shows finding a port of refuge can prove challenging

In today’s busy world, there are few container terminals that do not suffer from a degree of congestion in their normal daily operations. Supply chain issues, postpandemic delays and a lack of stacking space are typical of the challenges a shipping line will face when requesting a terminal to accept, not only several hundred distressed containers, but also thousands of sound containers, at short notice, from a mega box ship casualty.

Container terminals also have time constraints. It is not unusual for some of the world’s busiest container ports to require thousands of undamaged containers to be moved out within a week, which is a very short timeframe. The logistics involved in resolving these issues are costly, and the shipping line may have to divert other container ships to the port of refuge or even charter ships purposely, in order to lift the sound containers at short notice.

If long delays occur at the port of refuge, the cargo interests may abandon their sound consignments to the shipping line, for instance when goods have a fastapproaching expiry date or if the delay negatively impacts the market conditions at the destination. In these cases, a shipping line may task surveyors to establish whether the consignments retain residual value in alternative markets, which requires exploration of salvage sale avenues.

EVER-HIGHER EXPOSURES

Large vessels continue to drive ever-higher exposures, with fires, container and carrier losses, hazardous cargo, costlier salvage operations and issues with port of refuge leading to oversized losses and general average becoming more frequent.

“Over the last decade there has been an upward trend recorded of major ships that have been lost to the global shipping industry annually. Most of the time, the public has

*Contributing authors:

Dennis de Bruin: BMT, Managing Director of Surveys – Global Email dennis.debruin@bmtglobal.com

Hittesh Gupta: BMT, Head of Casualty Investigation and Master Mariner – Singapore and APAC Email hittesh.gupta@bmtglobal.com

Shahrom Ali BMT, Marine Engineer Surveyor – Singapore and APAC Email shahrom.ali@bmtglobal.com

no reason to pay attention to these sinkings and collisions. But supply-chain crunches caused by the pandemic have made the shipping system more transparent than ever, and more visible than it has been for decades, spotlighting epic cargo losses like the ‘ONE Apus’ in the Pacific Ocean and ‘MSC Zoe’ in the north of the environmentally-protected Dutch Wadden islands in the southern North Sea. Meanwhile, more volatile weather caused by climate change and everlarger container ships mean the risk of losses may be rising.”

Whilst a serious fire will not only lead to burnt cargoes or heat and smoke damage, another destabilising factor influencing the survivability of container ships has been the issue of contamination. This issue can be worsened by firefighting water possibly containing chemicals and debris originating from the various wetted products within the wet/ flooded holds. A grounding incident and a collision below the waterline could breach the ship’s hull, with consequent flooding or a breach of the bunker tanks. Therefore, a serious casualty would most likely lead to a large number of containers/cargoes being distressed.

The distressed cargo can become highly toxic, even deadly, to humans and the environment, and therefore will be a concern to the relevant authorities. As such, distressed cargo often requires expert judgement in assessment to ensure its safety and to protect its residual value.

“Fire investigation is a complicated and multi-disciplinary job,” underlines Dennis de Bruin, BMT’s Managing Director of its Surveys business, “One of the most important things we can leverage at BMT, as part of our integrated services’ offerings in the marine surveys business, are our IAAIaccredited fire investigation professionals.”

He adds: “Equipped with a solid foundation in the many skills required to work a fire case properly, our certified surveyors have years on the job, and are constantly updating their skill set to match the evolution of scientific knowledge and investigative techniques through their collaboration with the IAAI. This blend of continuing education/critical training in a core competency like Fire Investigation, and the extensive experience attained through the contextual work across ecologically/biologically significant marine areas (EBSAs)

and jurisdictions, augment’s our consultancy’s highlycapable approach to safety investigation of marine casualties and incidents.”

While the number of general shipping accidents worldwide has declined over the long-term, incidents involving larger vessels – namely container ships and roll-on roll-off (ro-ro) car carriers – are resulting in disproportionately high losses. In recent years, fires on board the car carriers ‘Felicity Ace’ and ‘Diamond Highway’ both resulted in some significant losses.

Another major ship incident to gain notoriety is the large container ship Ever Forward that ran aground in Chesapeake Bay on the US Eastern Seaboard, and was stuck for over a month, almost a year to the day after its sister vessel the Ever Given ran aground and blocked the Suez Canal for six days in March 2021.

A number of recurring ‘structural resilience’ themes have emerged in major cargo/container ship incidents in recent years, many of which are a consequence of the increased size of container vessels. As vessels have grown larger, values at risk have increased, while the environmental bar has been raised. However, regulation, safety management systems and salvage capabilities appear to have not always kept pace.

Cargo fires, as well as expanding bulk, general and steel scrap cargoes, are of growing concern. Mis-declared and dangerous goods are a recurrent issue for container shipping, while lithium batteries are an emerging risk for both container ships and car carriers, which are transporting growing numbers of electric vehicles, given existing counter-measure systems may not respond effectively in the event of a blaze. Cargo fires on board such large vessels can spread quickly and be particularly difficult to control, often resulting in the crew abandoning ship.

PORT OF REFUGE: CHALLENGING

When in trouble, emergency response and finding a port of refuge can be challenging. Large vessels require specialist salvage equipment and port infrastructure, which all adds time and cost to a response. The experience of the container ship X-Press Pearl, which eventually sank after it was refused refuge by two ports following a fire, is a case in point. Too often, what should be a manageable incident on a large vessel ends in a total loss.

Of particular concern is salvage. Re-floating or wreck removal for large vessels is a complex task, requiring specialist equipment, tugs, cranes and barges. The salvage operation for the car carrier Golden Ray, which capsized just outside the US port of Brunswick in 2019, took almost two years and cost in excess of US$800mn. Environmental, social and governance (ESG) concerns are also contributing to driving up the costs of salvage and wreck removal as shipowners and their insurers are expected to go the extra mile to protect the environment and local economies.

Higher salvage costs, along with the burden of larger losses more generally, are a cost increasingly borne by cargo interests. General average, the legal process by which cargo owners proportionately share losses and the cost of saving a maritime venture, has become a much more frequent event

with today’s growth in container shipping and the increased size of vessels.

Values at risk continue to rise with the size of vessels and inflation, while the costs of responding to incidents and clean-up are now typically many multiples of the ship’s value, explains Shahrom Ali, BMT’s Salvage/Marine Engineer Surveyor for the Asia Pacific region: “Larger vessels mean larger losses. An incident involving a container ship can now cost as much as US$1bn, once salvage and environmental considerations are factored in. A major incident involving two mega container vessels in an environmentally-sensitive region could cost in excess of US$4bn.”

He adds: “Our business’s cooperation and mobilisation in a complex salvage situation is reflected by recent external industry appointments of BMT personel. Two of our ‘salvage masters’ were selected by Lloyds to participate in their ‘Special Casualty Representatives’ (SCR) Panels, covering the EU’s maritime jurisdiction and boundaries, where these risk aspects connecting to ultra-large ships that pose high salvage challenges are being looked at continuously.”

VALUE AND UPSIDE

The positive influences of an increased focus on human safety and security measures over time, such as global ESG regulation, improved ship design and technology, and risk management advances, could limit big ship losses

In today’s busy world, however, there are few container ships that do not suffer from a degree of distress or damage in their normal daily operations. As has been demonstrated above, the current climate is also one where there remains significant scope for serious incidents to occur and in which it is difficult to find a port of refuge.

BMT’s experience confirms, however, that by appointing an independent third-party marine surveyor clients can glean some value and tremendous upside in conjunction with the necessary remedial work by being able to review the entirety of their distressed container operation from start to finish.

To conclude, a great deal of relationship management, collaboration, technical expertise and commercial intuition is required from marine surveyors in order to ensure they succeed in their ‘turnarounds’ of cargo management operations, covering both shipboard and shoreside logistics. In modern maritime’s era of soft law, an optimal consulting strategy for achieving sector supply chain resilience needs to consider the implementation of ESG factors, and work within economic, environmental, logistic, administrative and legal boundaries. Ultimately, the onus is on these influential factors that drive efficiency across the entirety of massively scalable distressed cargo management operations.

… salvage operations and issues with port of refuge leading to oversized losses and general average are becoming more frequent

REDUCING MARITIME INCIDENTS

Half of maritime incidents recorded by Rightship in 2022 took place within port limits. Yucel

more effective information gathering has a positive role to play in reducing this telling statistic

Detailed analysis of data conducted by Rightship reveals that 50 per cent of maritime incidents that occurred in 2022 took place within port and terminal boundaries; including at berth, using port facilities such as bunkering, waiting at anchorage or during harbour transit.

RightShip data shows there were 2400 incidents in 2022, where the location was recorded. Half of these incidents occurred with vessels in port and terminal environments, and most of these (813) were when vessels were docked.

The data shows that the inherent risk while a vessel is within a port’s boundary is much larger than had previously been thought. Certain of these risks are out of a port’s control, but nevertheless ports need to be ready to deal with problems as they occur, while also making sure their operations across all facilities are not disrupted.

and terminal sectors tackling incident reduction by using a combination of data focused on pre-arrivals and departures and sharing information as a community to significantly reduce supply chain risk.

Port authorities know that safety gaps cause accidents or worse loss of life to seafarers and shore personnel. Incidents can also result in pollution, property damage, and delays, or a combination of these and other negative factors.

The impact of such incidents on a port’s ability to process vessels at an efficient rate can be severe and costly. For this reason, port authorities and terminal operators and their respective operations teams adopt comprehensive safety protocols and high operational standards. The aim is always to reduce complicated and inherent risks, and maintain high operating performance.

Rightship considers that in pursuit of this excellence data analysis has a potentially much larger role to play.

INFORMATION IS KEY

Ports and terminals need to gather information effectively and to use it to plan and manage risk. If it is possible to evaluate potential issues before accepting vessels on berth, and adopt record keeping on departures, then provisions can be made for mitigating risks instead of simply accepting that “accidents happen”. Trend lines and the associated risk points can be identified, modern analytical tools employed, all of which can play a positive role in risk mitigation.

It is costly to retask shore personnel, endure entire berths being out of action, or in a worst-case scenario, have a vessel clogging up transit routes for multiple berths - all are situations to be avoided. Prevention is better than cure and data is an important key to this.

The present generation of vessel guidance largely consists of written procedures and checklists.

Looking to the future, RightShip sees leaders in the port

*RightShip gathers global incident data from various leading sources, including PSC, MOUs, classification societies, flag states, shipowner and managers self-reporting and other data sources.

8 In port accidents are all too frequent and effective information gathering has a role to play in accident reduction

8 Incident locations

8 Number of Incidents by vessel location 2022

Yildiz, Port and Terminal Manager, Rightship, contends

50 per cent of maritime incidents that occurred in 2022 took place within port and terminal boundaries

PEEL: STRENGTH IN DIVERSITY

Felicity Landon speaks one-to-one with Stephen Carr, Group Commercial Director, Peel Ports Group*

8 Essar’s Stanlow Terminals has announced plans to develop a new open-access import terminal for green ammonia in the Port of Liverpool. Across its diverse facilities Peel facilitates the handling storage of a wide range of commodities

The Peel Ports Group is an acknowledged leader in meeting the needs of the short-sea and feeder sector, subjects that sit at the heart of the focus of the Coastlink Conference, soon to be hosted by the Port of Liverpool.* As a precursor to the event, PS sat down with Stephen Carr, Group Commercial Director, who addressed a variety of subjects relevant to the sector including: cargo ups and downs, Net Zero targets and opportunities, and why the proximity to markets message is as valid as it has ever been.

In the Manchester Ship Canal advertisements of the 1930s, the message was there: ship straight to the heart of the UK’s industry and population. “When you look back at how ports were positioned 100 years ago, when Manchester, Liverpool and London were the dominant ports in the UK, it was all about maximising that use of maritime,” says Stephen Carr. “Now, as [landside] transport becomes harder, with more congestion and the environmental considerations, the message is the same.”

While investment in the necessary infrastructure has, of course, been vital, “it is also the relevance to that market”. The difficulties of the past three years – the pandemic and the supply chain crisis that followed – have made clear the resilience offered by ports close to origin and destination, he says.

Coastlink focuses on the promotion of short sea and feeder shipping; that’s a good match for Liverpool and the Manchester Ship Canal, says Carr. “The message we have always argued around proximity to markets is just as valid –even more valid – today. It’s about reducing land-based transport, maximising the benefits to the supply chain. Our core message to people who move freight is exactly as it always has been; the benefits of shipping as close as possible to the origin or destination are more important than ever. That applies whether we are talking about future

*In addition to the Port of Liverpool, host for the Coastlink Conference which takes place 3 – 4 May 2023, the Peel Ports Group’s portfolio includes the ports of Dublin, Clydeport, Heysham, London Medway, Great Yarmouth and the Manchester Ship Canal plus numerous affiliated services and facilities

commodities such as hydrogen, containers and shortsea ferry, or the more traditional bulk products.”

The past few years have been a reminder that we can’t guess what will happen next; but from Carr’s point of view, there are some interesting prospects.

THINKING TIME

“If you think about that whole pandemic cycle and supply chain crisis, then coming into this strange economic environment with inflation and lack of disposable income, I think what we are noticing now is that senior supply chain managers can sit back and think for the first time in three years. All the attention from spring 2020 to the end of 2022 was effectively going to the managing of one crisis after another. For the first time in probably three years, people whose job and role is to think more strategically finally have the time to do that, instead of worrying about today and tomorrow.”

The economic climate is throwing up challenges, he says – not least, the high costs of inventory. “It is hard to forecast what is going to happen. I suspect we have one or two shocks still ahead, although not necessarily on the same scale. We are in a period of greater volatility; that is something we forgot about as a population over the previous 10-15 years. It is very much back to the boom and bust cycle.”

At some point, he says, energy prices are going to fall off – that may coincide with larger numbers of the population having more disposable income in a few months’ time. “How will people spend it? Will we then see a ripple effect of demand in the supply chain? Again, it is all about resilience.”

At Liverpool, containers and ro-ro are down, reflecting lower consumer demand, while other commodities are doing better – agribulks, construction materials, biomass. “The range of cargoes we handle is really important to us and the last year has probably demonstrated that more than ever. It is something we have always seen – one year we will be surprised by one commodity and shocked by another. So our diversity and commodity mix has always been really important.”

On top of that, says Carr, it is vital to have the port infrastructure that is able to respond with flexibility. The

container terminal will always be for containers, he emphasises. “But it is knowing that you have the capability to handle different cargoes in the wider port estate.”

CLEAN MARITIME OPERATOR

In March, Peel won the ‘Clean Maritime Operator’ award in the Maritime UK awards – welcome recognition for the group, which was the first major privately owned ports organisation in the UK to declare a Net Zero target of 2040.

“As a consumer of energy and obviously delivering services to the wider supply chain, we are focused on transitioning our energy to Net Zero as fast as possible,” says Carr. “We have taken steps such as using HVO instead of diesel and transitioning our fleet around the port estate to electric.”

This time last year, some people were musing that the energy supply crisis and energy price crisis might push the transition to Net Zero down everyone’s priority list, he notes: “Our view is absolutely the contrary, it makes it even more important than ever to make the transition.”

Net Zero has two points of relevance for the ports group, says Carr – the other being how Peel Ports supports the production and movement of Net Zero fuels, including in the development, support and maintenance of offshore wind farms.

“Subjects that are attracting less attention are how do you move hydrogen from point of production to point of consumption? How do you move CO2 from point of capture to point of sequestration? These subjects are important in northwest England, especially because of the work Essar is already doing on hydrogen production.”

Essar’s Stanlow Terminals has announced plans to develop a new open-access import terminal for green ammonia in the Port of Liverpool; the proposal allows for the purchase and storage of more than 1m tonnes of green ammonia per year for distribution into the UK, or conversion back to green hydrogen for sale to industrial clients in the North West of the UK.

Meanwhile, Carr highlights the redundant oil and gas wells off the northwest coast, close to shore, which would be well placed for carbon capture trials.

“Our role in supporting the energy transition and those who are involved in enabling Net Zero is just as important to us as the energy we consume,” he says.

BREXIT REACTIONS

Alongside the upheavals of Covid-19 have been those of Brexit, the UK’s departure from the European Union, particularly for Liverpool, a major port for Irish Sea services. Carr is, however, upbeat about the impact.

“In the run-up to Brexit, we took a slightly different line in what we were talking about. Of course, the negatives that people were talking about were absolutely correct and valid, but also we argued that there would be some upsides. As an island nation, whatever we imported yesterday, we need to import tomorrow. We saw that there would be a swing from accompanied to unaccompanied routes, and some more from short distance ro-ro to longer distance sea journeys, on

the basis that fewer European hauliers would want to travel into Britain and some of the traditional backhauls would not be there.

“How much of this is Brexit and how much is Covid is not clear, but what we have seen on the Irish Sea is a shift towards unaccompanied and into Northern Ireland, at the expense of southern (the Republic of Ireland), with Liverpool and Heysham the net beneficiaries of that volume. It is a smaller market because some of the volumes that used the traditional landbridge are now using direct services to the Continent, but we have more volume in a smaller market.”

In February, Stena Line signed a new deal with Peel to operate the 12 Quays port and ferry terminal in Birkenhead at least until 2100. Stena operates twice daily ferry services to Belfast and has recently purchased two sites next to 12 Quays for additional freight storage.

To balance out any loss of direct Irish Sea volumes, says Carr, Peel has seen the introduction and/or routing of ferry services between Iberia and Liverpool, some via Dublin.

Suardiaz has announced a new ro-ro service between Vigo and Ellesmere Port on the Ship Canal from June 2023, for Stellantis, and WEC Lines has introduced additional weekly calls in Northern Spain, Portugal, North Africa and the Canary Islands to its rotation into Liverpool.

Liverpool consistently takes the position as top UK port for container trade with Iberia, accounting for 56 per cent of the market in 2021.

“What we have seen, as we expected, is that the traditional supply chain did have issues, but it has shifted volumes to different routes. We were ready for that.”

The new NI Protocol announced by Rishi Sunak “will, if anything, probably push more trade through Northern Ireland c went across to Dublin and then up into Northern Ireland, whereas now it is becoming far easier to move cargo into Northern Ireland and

more trade Northern Ireland than before,” says Carr. “Pre-Brexit, more traffi Dublin and up into Northern Ireland, whereas now it is easier and it is more difficult to move cargo into Dublin from Britain.”

“The message we have always argued around proximity to markets is just as valid – even more valid – today,”

Stephen Carr, Group Commercial Director, Peel Ports Group

We saw that there would be a swing from accompanied to unaccompanied routes, and some more from short distance ro-ro to longer distance sea journeys

VISION AND APPLICATION

Savannah has been the fastest-growing port in North America for a number of years, but how does the port continue to out-perform the market and will its strategy change in the future, asks AJ

Keyes

There are a number of basic factors that influence a port’s competitiveness. These include (in no specific order), water depth at berth, access to open sea, length of quay, ability to serve cargo consuming/generating hinterlands and quality of infrastructure.

In 2000, the Port of Savannah was located up river, had water depth restrictions and served a small local hinterland. By the end of 2022, the port was still located upriver and still served a limited local hinterland, but has been the fastest growing container port almost every year since and is a highly effective option for serving the US Midwest market via intermodal rail.

So, how has this port been able to transform itself into one of the most successful facilities in North America and then remain a leader in an already highly established port market?

METEORIC RISE – WHY?

Figure 1 offers a comparison of throughput at Savannah and other major ports in 2000 and 2022 and the numbers substantiate the Port of Savannah’s meteoric rise. In market share terms, in 2000, the port accounted for 3.1 per cent of total North American container port volumes and 7.6 per cent of East Coast North America (ECNA) total activity. By the end of 2022, these shares had risen to 8.7 per cent (North America) and 18.6 per cent (ECNA).

So, the Port of Savannah has been extremely successful, even though it continues to compete in a mature economy served by an established port market and Ed McCarthy, Chief Operating Officer, Georgia Port Authority (GPA) offers insight here: “The key to Georgia Ports’ success in the container trade is a commitment to serving every stakeholder in the supply chain, from importers and exporters to warehousing, motor carriers, shipping lines, stevedores and the International Longshoremen’s Association. The Port of Savannah’s

customers enjoy superior reliability, speed to market and capacity for growth. Savannah is the most westerly major port on the U.S. East Coast, providing shorter overland routes to important markets, with fewer opportunities for delay.”

Of course, any port can invest in new cranes, build quays and dredge for deeper water, and many have done so in North America, but adopting an attitude of ‘build it and they will come’ is certainly no guarantee of success. GPA has continued to invest in its facilities, but there is a strategy behind it, as McCarthy further highlights: “The Port of Savannah’s success is a product of several factors coming together,” he opines, before adding, “service reliability is key. Logistics managers who choose Savannah know they can build supply chains around our efficient, flexible port services. Additionally, the Authority has had a long-time investment philosophy of maintaining at least 20 percent capacity over current demand. This ensures GPA has room for existing customers to grow, and to take on new business. It’s also about location, with Georgia providing the most efficient service to markets such as Atlanta, Memphis, Charlotte and now Dallas.”

TARGETING THE USERS’ BOTTOM LINE

The infrastructure supporting the Port of Savannah has grown in-line with volumes. GPA currently supports 35 weekly containership services, direct interstate connections, and on-terminal rail service from Class I railroads Norfolk Southern and CSX. Intermodal containers move from vessel to departing rail in less than two days in Savannah, while its truck gates handle up to 15,000 interchanges per day. The

8 The key to Georgia Ports’ success in the container trade is a commitment to serving every stakeholder in the supply chain

8 Ed McCarthy

Authority’s Mason Mega Rail Terminal has boosted rail capacity 30 per cent to one million containers per year.

However, the application of its infrastructure investment is only part of the focus from GPA. “The Georgia Ports Authority delivers unparalleled service, because we understand how important our role is to port users’ bottom line. Savannah was the first port with a one-call customer service centre to help drivers and cargo owners settle any issues that might arise. Additionally, our trade and operations departments work with cargo owners and logistics providers daily to deliver creative, nimble solutions that help them better serve their own customers,” explains McCarthy.

One interesting part of the strategy that has occurred over the past 20+ years has been the seamless transition between leadership changes at the helm of GPA. A spokesman for GPA acknowledged this point and elaborated: “The Board expects the port to be run like any other business. In terms of executive directors, the board sought out both Griff Lynch and his predecessor, Curtis Foltz, who first served as chief operating officers before taking over the new leadership role. Their familiarity with the Georgia Ports Authority’s operations and personnel made for a smooth transition between administrations.”

CONTINUED CARGO FLUIDITY

Moving forward, the obvious question is whether GPA will maintain its successful trajectory. To ensure what the port authority describes as “continued fluidity,” berth capacity and terminal space are being added at a fast pace and on a par, if not quicker than any other major container port in the US, as McCarthy explains: “By January 2026, GPA will double its space for 16,000+ TEU vessels to six berths, and grow its annual terminal capacity from the current 6.5 million TEUs to 10 million TEUs per year. This new infrastructure does more than add space. It allows for greater velocity from dock to destination and delivers the dependable service that logistics managers need to build reliable supply chains.”

The old saying of “if it ain’t broke, don’t fix it” probably best sums up GPA’s strategic approach to the future, as McCarthy summarises. “Cargo owners can look back on a history of superior service and flexibility at the Georgia Ports Authority. They can see our aggressive expansion plan as we build for the future. Those who choose to move containers across our

docks can attest to the friendly, solutions-oriented service we provide. We are committed to building on those strengths, working with port users to develop logistics solutions beyond our gates to the markets they serve. This commitment to our customers will ensure GPA’s continued success,” he confidently states.

When, Not If, For The Big Apple

Despite Savannah’s long-term growth and continued success, the largest volume container port on the eastern seaboard is the Port of New York/New Jersey (NY/NJ) and there is a very simple strategy in force here.

This port benefits from many factors that Savannah cannot leverage. Immediately located close to the North Atlantic and with a port district covering around 25 miles, the port facilities can claim to serve a local population of almost 30 million people.

Indeed, according to Maritime Advisor, Infrata, 84 per cent of NY/NJ activity is local cargo, leaving just 16 per cent using intermodal rail access to the massive US Midwest consuming areas of Chicago and the Ohio Valley. The development of the Greenville Yard near-dock intermodal rail

facility will, finally, bring more competitive rail access to the GCT Bayonne facility, so there may be some potential to help facilitate this cargo market better.

NY/NJ has always been, and will always be, a ‘must-call’ port on the East Coast of North America, primarily for its local demand. Unlike in Savannah, this port has always benefitted from the requirement of shipping lines and beneficial cargo owners need to use its facilities, to serve such a massive local market.

So, the strategy in NY/NJ is less dynamic than in Savannah, but this appears to be appropriate. For example, as Figure 2 shows, the port continues to operate at a high utilisation and the need for further expansion is always present. The Port Authority has

concluded that the rebound from the COVID-19 pandemic has been stronger than expected and the port’s container volumes are several years ahead of planning scenarios. Consequently, the extra capacity planned at the GCT (now CMA CGM/Terminal Link) facilities of up to 2.3 million TEU in the next 10 years will certainly be required.

NY/NJ development strategy is fundamentally supported by the key driving factors that will simply not change moving forward. The massive local population and need for shipping lines and beneficial cargo owners to come to the port will remain and the pressure on the port authority and its terminal operators is to keep pace with this demand – the containers will come and it is a when, not an if.

8 Figure 1: Comparison of Container Volumes at Major North American Ports, 2000-2022 in ‘000 TEU

Source: Data&, ports

8 Figure 2: Comparison of Capacity and Volumes at NY/ NJ, 2015-2022 in ‘000 TEU

PNEUMATIC UNLOADERS

SECTOR ANALYSIS: STEADY ADVANCE IS THE KEYNOTE

One of the major strengths of the pneumatic unloader concept is that it has been developed to handle a wide variety of commodities extending from free-flowing cargo streams such as grains through to commodities with more corrosive and abrasive characteristics like alumina and fly ash. This has played its part in generating steady demand with this sourcing from both emerging and developed markets. The grain pump – a mobile pneumatic solution – particularly remains a popular solution in emerging markets but also generally in

applications where flexibility is required. System designs continue to be refined – the pneumatic unloader system can be configured in multiple forms. There are basic standard designs but the supply sector is highly skilled in meeting bespoke requirements. In terms of the key components of design, power consumption and the method of power supply is an ongoing area of attention as is dust suppression and systems/attachments that ensure maximum cargo pick-up – i.e. pick-up from all corners of the hold of a vessel or barge.

PRODUCT RANGES, SYSTEM CONFIGURATIONS, DESIGN FOCUS

8 Buhler: Switzerland headquartered Buhler is a wellknown name in the international ports sector offering a range of mechanical and pneumatic products for the handling of dry bulk materials. The ship unloader Portanova RSKP is a leading pneumatic system targeted at the efficient unloading of grain and oilseeds with discharge rates in the range 250 to 345 tonnes per hour subject to vessel size.

Buhler notes the Portanova is distinguished by its high degree of mobility and ability to be configured for a range of

8 FLSmidth A/S: This Copenhagen-headquartered company states: “Whether you receive and distribute material by ship, barge, rail, or truck, we have pneumatic systems designed to make your terminal operate efficiently and reliably. Prominent products for port or waterway applications are the Docksider and Kovako ship and barge unloaders.

The company claims that: “Starting with a range of four basic sizes, it can supply the right Docksider ship unloader for any terminal – whether you are unloading river barges or Handy max bulk vessels, and whether you are conveying to an adjacent belt conveyor or through a 1200m pipeline.”

different applications. It can be supplied as a travelling or stationary ship unloader – on rails or on wheels - with its own energy supply as well as electrical power supply. Particular attributes of the system highlighted are: a rotary blower system that ensures uniform material processing; ease of maintenance with this including the ability to lower the boom to the ground and a strong resilience to system wear due to the conveying pipes having thick walls and basalt linings at the pipe elbows.

Diverse discharge options, including pressure tanks, feeders and rotary valves reportedly enable the handling of a wide range of dry bulk materials – including abrasive products such as alumina and coarse limestone. For high capacity applications, a separate vacuum filter receiver facilitates continuous airflow and faster material transfer.

The Kovako pneumatic ship and barge unloader range was added to the FLSmidth product portfolio back in 1992 and since this time it has been subject to continuous refinement including the ability to handle challenging materials such as fly ash and ground blast furnace slag.

8 A FLSmidth Kovako ship unloader discharges cement

Kovako ship unloaders are offered in three standard models designed to deliver optimal unloading capacity with typical vessel sizes. They are available as electric powered and in various configurations. Typically the model K01 model

8 Neuero: Neuro offers a number of different models of pneumatic ship unloaders as part of an extensive ship unloader range which also includes mechanical ship unloading solutions.

The company, which serves the global marketplace, is a long established participant in meeting port sector and other ship-unloading requirements. The pneumatic unloading systems offered include:

GSD: Mobile pneumatic suction pressure machines offering a capacity range extending from 20t/hr to 200t/hr – well proven in ship and barge unloading applications.

Multiport: A single-line pneumatic ship-unloader offered in stationary, rail-mounted and rubber tyred versions with capacities extending from 250t/hr up to 800t/hr (based on wheat) with the ability to serve vessels up to post-Panamax dimensions. The company points out that broad coverage of a ship’s hold is achieved by a horizontal and vertical

8 Van Aalst Bulk Handling: This company also ranks among those system designers and manufacturers who offer pneumatic unloading systems for diverse applications extending across large vessels and barges with capacities of up to 800t/hr. The product range includes:

Stationary ship unloader: The company points out that this is ideal for use where limited space is available at the dock and has the added advantage of being a cost-effective solution as no propulsion system is required.

Dock – mobile ship unloader: This unit, the company says is; “free to move around the dock area and has the advantage of being able to be stored at a convenient location. The system is versatile with Van Aalst pointing out that the suction pipe can, if necessary, be positioned underneath the dock surface or removable pipe sections can be employed to keep the quay area free for other operations.

Gantry mounted ship unloader: Cited as ideal for dedicated operations with available shore power. It can be specified so as to make use of existing rails, if in place, thereby reducing investment costs.

Barge mounted ship unloader: The vessel mounted arrangement allows for the barge to be towed to one or

8 Vigan: This Belgium-based company has gained a reputation for being one of the leading lights in supplying both pneumatic and mechanical unloader systems for application with vessels and barges. The pneumatic unloader range comprises three main products:

- Mobile or portable (also called vacuvators or grain pumps) offered in a capacity range from 120 to 250mtph.

- Barge unloader, as its name suggest for use with barges but also other vessels less than 15,000dwt. This is offered with capacities ranging from160 to 600mtph, and - NIV or gantry type, mostly for all types of vessels up to post-Panamax. Offered with capacities in the range 200 to 800mtph

Vigan’s engineering capabilities span turnkey projects for port and terminal applications including ship unloading & loading, storage facilities and bagging operations.

The company’s pneumatic unloaders have been sold all around the world and in a number of countries – for example Algeria – are to be found in large numbers.

offers a discharge capacity of 200mtph with vessels of up to 8000dwt, the K02 a 200mtph rate with vessels of up to 20,000dwt and the KO3 320mtph with vessels of up to 45,000dwt.

telescopic tube. Multiport AL: As its brand name suggests this is a specially designed pneumatic unloader for discharging alumina and petroleum coke at capacities of up to 800t/hr.

Flexiport: The Flexiport is a pnuematic ship unloading system for non-free-flowing materials which can have a rotating feeder fixed to the vertical discharge tube in order to loosen the product for efficient discharge.

Tower: The Tower unloader comprises a two-line ship unloader with optional mechanical loading system. Performance can be up to 1600t/hr based on each of the two lines handling 50 per cent each of the cargo volume. The system is rail-mounted.

Overall, Neuro designs pneumatic unloaders for grain, feed biomass, and diverse other dry bulk materials spanning food sector commodities, power plant products, the aluminium industry etc.

8 Employed in conjunction with cement discharge operations a Van Aalst Bulk Handling semi-road mobile ship unloader

more locations for unloading. It also allows for tidal fluctuations.

Road mobile ship unloader: The ability of the pneumatic unloader to be transported by road enables it to be easily used to service to discharge vessels of up to 5000dwt at multiple locations.

The company highlights as key features of its product range the inherent dust suppression characteristics of its pneumatic unloader range, the ability to unload directly from vessel to storage, low system wear and the reduced possibility of product contamination via a protective screen at the suction nozzle. It offers systems in a standard format and bespoke to meet specific client requirements.

8 The Vigan ship unloader NIV

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MOBILE HARBOUR CRANES

SECTOR ANALYSIS: POWER PLAYS & LOGISTICS CHALLENGES

Demand for mobile harbour cranes remains strong and it is clear that the major manufacturers are all pushing the green agenda in their ongoing focus. This was confirmed with Liebherr recently announcing that over 30 per cent of sales being made now include an electric main drive, while the hybrid option of diesel and electric is in demand amongst its customers wanting the company’s most popular LHM500 model. ITALGRU is reporting similar trends, with more and more customers “opting for environmental machinery,”

while Konecranes has developed its electric design concept, which means efficiency increases when connected to the harbour mains. Instead of onboard diesel engines, the cranes are equipped with battery packs. However, it is not all plain sailing for the industry, with several challenges currently being faced. Price increases in steel and a lack of certain key pieces of equipment like microchips are hampering construction schedules, while retaining skilled workers is another common issue.

R&D, NEW PRODUCT LAUNCHES, DESIGN INNOVATION

8 Liebherr: For Liebherr, the LHM series has a clear focus – hybrid power supported by more digital and more automation. A new crane control system, state-of-the-art sensor technology and digital information transmission is at the forefront of the company’s current thinking. The Liebherr Pactronic 2.0 hybrid system is its second generation of a hydraulic drive system using hybrid technology, but now an accumulator serves as an energy store and provides support when needed by supplying additional, temporarily stored power. There is also now a choice of two operating modes. These are Boost Mode and Green Mode. In Boost Mode the Pactronic 2.0 acts as a power amplifier, generating increased lifting speeds but without the need for a larger or additional

engine for more power, delivering reduced cargo-handling time. In Green Mode, the Pactronic 2.0 ensures up to 30 per cent lower fuel or power consumption and reduced CO2 emissions, thereby using less power to maintain the same lifting speeds, while also using less fuel and creating lower emissions. For the driver, greater precision and safety is top of Liebherr’s agenda. A new integrated touch panel means all crane functions can be selected clearly and intuitively, which greatly simplifies the operation of the crane. A revised air-conditioning concept significantly increases the wellbeing of the operator, whether air-conditioning or heating. It also ensures that fogged windows are quickly dehumidified, thus providing a clear view and more safety.

8 Liebherr and other major mobile harbour crane manufacturers are continuing to meet customer requirements for greater green credentials

Recent Take-Up: Liebherr has seen a good take-up of its new crane series. ABP Immingham ordered new units, with three cranes on site by the end of 2022 in a £9.7 million (US$11.4 million) deal, while the Port of Hueneme (CA) also acquired a new electric-hybrid crane to replace old machinery as part of US$7 million investment by Ports America Group. Also in the US, Port Canaveral has recently

Konecranes: Konecranes, who launched the world’s first mobile harbor crane in 1956 and helped pioneer the concept of Ecolifting™ retains a clear focus - products that can eco-efficiently service any type of vessel and any kind of cargo (containers, general cargo, project cargo and bulk) in any location. The company recently launched its sixth generation of mobile harbour cranes, with the continued aim of delivering sustainable lifting solutions to reduce climate impact, as per its customers requests. Generation 6 has marked the first comprehensive revamp of Konecranes Gottwald’s mobile harbour crane portfolio in 15 years. These units are all designed for electrical power use, which can be sourced from an onshore grid, meaning no direct carbon emissions during operation. Operators can also choose a new battery solution that reduces emissions and gives greater flexibility by permitting crane operation independent from the grid. For quays without a power supply, a common occurrence in developing markets, the cranes come with fuel-saving diesel generators and Konecranes’ latest hybrid drives. The design of the crane advances circularity through a more durable design: its robust construction doubles the cranes’ service life in container operation compared to earlier generations, and more powerful lifting capacity curves and high working speeds ensure greater efficiency and faster

SANY: Despite being a new entrant to the manufacturing of what it defines as “logistics equipment,” Chinese-based SANY Port Machinery has already established two manufacturing plants since its inception in 2010, in Changsha and Zhuhai. The company claims it already makes more than 150 models of mobile port machinery, large port machinery, and marine equipment. SANY’s focus is confirmed as “persistent innovation, focusing more on green energy, digitalisation and intelligence.” The SANY MHC is made using a modular design, so it can be easily equipped with different chassis and spreader types, according to client requirements, but it is the use of the optional lithium battery that is of interest. Here, the energy is released when the heavy cargo is put down and recycled to the lithium battery, and then when the lift occurs, the recycled energy

ITALGRU: Italy-based ITALGRU has been manufacturing lifting equipment for over 60 years and places a clear emphasis on its strategic approach. The company explains that it is now very clear that environmental-friendly strategies drive the investments of port operators, so its answer to this trend is the new design of all IMHC models, which are available with electric drives. In addition, the units are equipped with energy saving systems based on hydraulic energy accumulators. They store energy from decelerations and lowering loads and the crane’s software automatically decides when to use the stored energy, thereby saving fuel.

Recent Take-Up: Although ITALGRU manufactures all of its mobile harbour cranes in Italy, around 90 per cent are exported, although the home country remains a market too. The Port of Augusta (Sicily), and Barletta both recently took delivery of a multi-purpose IMHC 2120 mobile harbour

ordered a new LHM 600 unit with the digital enhancements and improved cabin, which is due to arrive before the end of 2023. The Port of Esbjerg in Denmark ordered a second LHM 800 unit, plus a LHM 600 crane. The LHM 800 is the port’s seventh Liebherr mobile crane and both new additions will move next-generation offshore wind turbines, often via a twin/tandem lift operation.

cargo turnaround times. The long-lasting design not only saves the resources needed to build new cranes, it supports resale values when customers choose to renew their fleets. There is also the TRUCONNECT remote monitoring system on all units, which collects condition, usage and operating data from control systems and sensors to help with maintenance planning and predicting possible component or equipment failure.

Recent Take-Up: Eco-efficiencies appeal to ports and orders to Konecranes continue. FHP Group received a new eco-efficient Generation 6 Konecranes Gottwald Mobile Harbour Crane for its Multi Service Terminal in the Marghera Port near Venice, in northern Italy in late 2022, while Spinelli Group received a similar unit in December 2022 at its terminal in Genoa, north-western Italy. This crane includes a Konecranes hybrid drive with a diesel engine that is in line with EU Stage V emission standards and features ultracapacitors to deliver additional power for heavy lifts, which can be refilled through the collection of braking and lowering energy. Finnish specialist rental and service company Adolf Lahti and stevedoring company Rauanheimo has also taken delivery of Finland’s first Generation 6 for Port of Röyttä in Tornio, next to the Swedish border.

is gained, thereby saving fuel and cost. The company has also released its SCL10000 unit, which runs on renewable diesel, or Hydrotreated Vegetable Oil (HVO) made from 100 per cent sustainably sourced raw materials such as used cooking oil and animal fat from food industry waste. SANY says it has the potential to generate 75-95 per cent less greenhouse gas emissions over the fuel’s lifecycle when compared with fossil diesel.

Recent Take-Up: Two new SANY mobile units arrived at Cebu South Harbour and Container Terminal Corporation, Philippines in the second half of 2022. In January 2023, a new SCL10000 unit arrived in Queensland, Australia. It is expected to support wind turbine erection activities and, as a result, could be deployed in port areas in the future.

crane, with Augusta specifying an electric drive and equipped with a cable reel to draw electricity from berth. The Port of Durres in Albania also received an IHMC 2120 unit in 2022 and Croatia’s Port of Rijeka is now using the IMHC 1580 machine. Elsewhere both Dar es Salaam in Tanzania and Gangavaram Port in India have previously ordered units.

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offers a broad spectrum of high-performance mobile port machines such as Reach Stacker, Empty Container Handler, Heavy Duty Forklift Trucks and Material Handler

Conductix-Wampfler

Sany Allee 1

Sany Allee 1

D-50181 Bedburg

50181 Bedburg, Germany

Tel: +49 2272 90531 100

Tel: +49 2272 90531 100

Email: info@sanyeurope.com

Email: info@sanyeurope.com

www.sanyeurope.com

www.sanyeurope.com

Sany ID indd 1 25/01/2022 11:42

VISYOy

Visy systems reduce expenses, optimize safety & security, and increase throughput capacity via process automation. Our singleplatform gate operating system and OCR solutions manage all cargo, assets & personnel movements via quay, rail or road to keep operations moving.

VISY takes pride in solving operational problems, specialising in gate automation and access control solutions in ports and terminals. Their solutions streamline processes resulting in saving money and increasing productivity. Tel

The world specialist in Power and Data Transfer Systems, Mobile Electrification, and Crane Electrification Solutions. We Keep Your Vital Business Moving!

Rheinstrasse 27 + 33

Weil am Rhein 79576 Germany

Tel: +49 (0) 7621 662 0

Fax: +49 (0) 7621 662 144 info.de@conductix.com

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To advertise in the Port Strategy Directory

Contact Arrate Landera +44 1329 825335 www.portstrategy.com

TRANSPORT

RTE CORPORATE HQ

We provide the most complete system of reliable data collection solutions for refrigerated transport terminals, vessels, and trucking operations through industry-leading innovations in remote reefer monitoring hardware and software products. Request a quote.

1 West Center Street McGraw, New York 13101 USA

Within USA +1 877.538.7764 (Toll Free) International +1 607.836.8954

IDENTEC SOLUTIONS

is an industry-leading, trusted partner in managing and monitoring reefer containers and optimizing entire terminal operations through solutions like Reefer Runner and Terminal Tracker.

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The world leading manufacturer of Sideloaders, self-loading semi-trailers for versatile & efficient container handling.

www.hammarlift.com

info@hammarlift.com

TVH is a global player in the field of spare parts and accessories for heavy forklifts, reach stackers, container handlers, spreaders and terminal tractors. With over 96,000 references in stock and more than 644,000 known references, TVH offers quality replacement parts for many brands and makes, including the hard-to-find ones.

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ELME Spreader AB

ELME Spreader, world’s leading independent spreader manufacturer supports companies worldwide with container handling solutions that makes work easier and more profitable. Over 21,000 spreaders have been attached to lift trucks, reach stackers, straddle carriers and cranes.

Stalgatan 6 , PO Box 174 SE 343 22, Almhult, Sweden

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T ERMINAL OPERATIONS SYSTEMS

The Brain of Logistics

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DSP Data and System Planning SA

Via Cantonale 38 6928 Manno, Switzerland

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Solvo Europe B.V.

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13

15 TO JUNE 2023 Southampton United Kingdom

ERMINAL OPERATIONS SYSTEMS

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MAFI Transport-Systeme GmbH

Specialised in the development and production of heavy-duty equipment for transporting containers, semi-trailers, cargo/roll trailers and special container chassis in ports and industry.

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TGI Maritime Software is a Terminal Operating System editor and integrator specialized in the support of Small to Medium Terminals. Its expertise is built on 34 years of experience within the maritime sector. TGI provides comprehensive services to its customers all along their projects. OSCAR TOS and CARROL TOS have already been successfully handled by 40 container and RoRo terminals worldwide.

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Brunton Shaw UK is a successful manufacturer of high quality wire ropes for a wide range of applications. The company effectively combines more than 130 years of experience and tradition with an up to the minute range of products, and a customer service package ideal for the modern market place.

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Email: info@brunton-shaw.co.uk

www.brunton-shaw.com

Since the issue of the Hindenburg report Adani has been in damage control mode and recent weeks have seen further pressure piled on the embattled group with the Adani Ports & Special Economic Zone division in the eye of the storm

POSTSCRIPT

ADANI ROLLERCOASTER ROLLS ON

The Adani Group continues to feel financial pressures with recent attacks adding to the negative impact of the January report by short-seller Hindenburg. Is there more to come?

Adani Ports & Special Economic Zone (AP&SEZ), has been riding the roller coaster of financial pressure again, with the company experiencing the biggest loss in value – seven per cent – out of all the Adani Group companies on March 28, following a new report issued by The Ken, a pan-Asian subscription publication with a major focus on India. The Ken alleged that the Adani Group had not made a US$2.15 billion dollar repayment in share-backed debt. Specifically, the report said: “Despite the Adani Group’s claim of complete repayment of US$2.15 billion in share-backed debt, regulatory filings show that banks have not released a significant portion of the promoters’ shares held as collateral, indicating that the debt has not been fully paid off

“As per Indian laws, disclosures on the release of shares need to be filed with stock exchanges by lenders within two working days, and by promoters within seven working days. But neither the Adani Group nor the lenders have made these disclosures to stock exchanges,” underlined the Ken Report.

Further pressure has also been piled on the Adani Group by a report around the same time in The Economic Times, a India-based publication, that Adani was attempting to renegotiate the terms of US$4 billion of debt.

The following day, March 29, Adani refuted both claims in separate statements. In conjunction with the Ken report it stated that it had paid off sharebacked financing totalling US$2.15 billion and that the stock linked to the facilities involved had been released. The Economic Times report it dismissed in stronger terms, describing this as “baseless speculation.” The net effect was that Adani Enterprises Ltd, the group’s flagship, share value rose by 8.7 per cent and AP&SEZ by 7.3 per cent. This was the biggest overall rally since GQG Partners’ minority stake purchase in the companies earlier in March.

Jugeshinder Robbie Singh, Chief Financial Officer Adani Group, was particularly damming in his condemnation of the Ken’s report, he tweeted: “Deliberate misrepresentation (and if i speculate outright lies) of @TheKenWeb ( @SudzzBTS an @ nimishshp) they know that relevant exchanges will update end of quarter. The deliberate subterfuge will be clear to all once exchanges update the data post end of quarter.”

HOT ON THE HEELS

All this, of course, follows hot on the heels of the report issued issued in January of this year by short-seller Hindenburg alleging fraud, which resulted in an overall loss of over US$100 billion to Adani.

Effectively, since this time Adani has been in damage control mode with informed reports indicating that corrective actions taken by Adani have involved the group cancelling a share sale, abandoning some acquisition opportunities, raising money, prepaying debt, and performing roadshows around the world.

To add further fuel to the fire, ratings agency Fitch has highlighted the fact that two Adani Group subsidiaries are exposed to heightened contagion risks as a result of governance weakness at the conglomerate’s sponsor level. Adani Transmission Limited and Adani Ports and Special Economic Zone are, it suggests, prone to risks which could affect financial flexibility.

As if all this isn’t enough, AP&SEZ’s latest investment overseas, in the Port of Haifa, Israel, is, at the time of writing, facing severe operational problems.

Workers at Ashdod and Haifa ports launched a strike March 27 as part of nationwide civil action against the government led by Prime Minister Benjamin Netanyahu. The exact duration of the strike remains unclear, though some media sources have stated it will remain active until further notice.

The potential impact of this strike is severe with various parties highlighting the possibility of it negatively impacting essential food supplies.

MOUNTAIN TO CLIMB?

It is not quite a mountain to climb in terms of rebuilding investor confidence that Adani has on its hands. It has taken some positive steps in this respect but nevertheless it may yet become a mountain. The Securities and Exchange Board of India is probing any potential irregularities in the share sale, which was run by the flagship Adani Enterprises before this capital raising exercise was pulled.

The market regulator is also investigating allegations made in the Hindenburg report as well as the market activity immediately before and after the report was published, Reuters reports.

As reported in the UK’s Guardian newspaper: “One of Hindenburg’s most serious allegations involves claims that Adani uses shell companies to manipulate the price of the listed ones by holding large positions. Adani has denied the allegation and has said all related-party transactions were correctly disclosed.”

Adani has repeatedly said its balance sheets are healthy and that it has secure assets and strong cashflows.

If it clears the latter investigations, the consensus of opinion is that this will facilitate showing a good financial standing and generate an improved ability to raise funding. If not, then the view is that this may trigger asset sales.

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MODERATOR

Lars Robert Pedersen, Deputy Secretary General, BIMCO

Ricardo Batista, European Commission

Simon Bennett, Deputy Secretary General, International Chamber of Shipping

Martin Kröger, CEO, German Shipowners’ Association (VDR)

Wolfram Guntermann, Director Regulatory Lloyd AG

Markus Münz, Managing Director, VDMA Large Engines