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DC2:
MEXICO:
India has been aggressively marketing itself as an Asian alternative to Chinese manufacturing from as far back as 2014 when it launched the “Make in India” campaign, to raise the profile of India as a global manufacturing hub. Similarly, the Atmanirbhar Bharat campaign was launched in 2020, backed by a US$277 billion stimulus package, equivalent to around 10 per cent of India’s GDP. This was partly aimed at providing some relief to the sectors of population worst hit by COVID-19 but is additionally designed to open up new avenues of trade, investment and employment in the economy. The underlying thinking is, improved liberalisation, policy amendments, relaxed regulations, infrastructure investment, skill development etc, will build “a future-ready India.”
The International Monetary Fund’s forecast for India’s GDP growth in 2023 is 6.1%, far outpacing China’s estimated 4.4% rise. Further, India is projected to leapfrog Germany and Japan to become the world’s third-largest economy over the next decade, and achieve the status of a US$10 trillion economy by 2035, according to a recent Centre for Economics and Business Research report.
The potential is there and clearly India is enjoying some success in presenting itself as an alternative to China – assisted by factors such as the concerns of business regarding growing tensions between China and the USA and China’s authoritarianism as witnessed by its severe lockdown policy.
The fact remains, however, that India’s vision of becoming the new “factory of the world” still has to overcome longstanding hurdles. Extensive bureaucracy, red tape, lack of skilled labour and lagging infrastructure are all problems that continue to prevail. They stand in the way of India establishing the sophisticated and seamless supply chains that China now boasts and which, when unimpeded, work exceptionally well.
As the articles on p18 and p20 document, India’s port infrastructure still faces challenges, although great progress has been made. There is the issue of formatting port capacity to accept the world’s largest vessels but arguably more crucial is putting in place modern road and rail links – a factor that has great influence over the location of manufacturing businesses. Action on this latter front will play a major part in giving industry the confidence to seriously consider relocation to India or to a locate a start-up in the country.
“Building investor confidence” is also a theme that South Africa’s government needs to address in conjunction with finding an investor for Durban Container Container Terminal – Pier 2, p7.
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India is in the ascendancy as an alternative manufacturing location to China, but there remains work to be done to build investor confidence. At a micro level, the same point applies in conjunction with South Africa’s Durban Container Terminal –pier 2 – the fundamental issue is will theory go into practice?
The colours of India’s national flag are prominent on our cover. India is coming – the seeds of opportunity are there to take up a more prominent position in world trade. The opportunity is at hand to compete with China to become a major manufacturing centre for retail and other products. The infrastructure, however, has to be right and in the articles on p20 and 22 we assess the country’s state of readiness to assume this status. Container trade prospects are detailed and the positives and negatives of port and inland infrastructure reviewed in-depth.
There are uncertainties surrounding the bid process for Durban Container Terminal 2 (DCT2) and the Ngqura Container Terminal. Government should do more to build investor confidence
The technical component of the bids for Durban Container Terminal – Pier 2 (DCT2) have now been submitted and the bidders –10 companies – await results, basically a pass or fail. After this the second bid component submitted by those bidders that have “passed,” the financial envelope, will be opened and if conforming to normal practice it is expected that the bidder with the highest financial offer will enter into detailed negotiations regarding its participation as a 49 per cent stakeholder in DC2. Straightforward? Seemingly so, but in reality there are many considerations around the process that present cause for concern.
A seemingly innocuous but nevertheless key point is the use of the word privatisation in conjunction with the DCT2 opportunity. This is a factor that has led to the increasing politicisation of the bid process, both for DCT2 and the Ngqura Container Terminal, a specialist transshipment hub at Port Elizabeth for which an investor is also being sought.
There has recently been criticism from the South Africa Transport and Allied Workers Union (Satawu) - one of the biggest unions active within Transnet, the government owned operator of the two facilities and the party that implemented and is overseeing the bid process – that the port of Durban is being privatised by stealth. Not a positive, but also not an entirely surprising reaction from the union side of the fence. More concerning are some of the ‘noises’ coming out of the ruling African National Congress (ANC) party, which of course, has substantial union support.
In mid-February, South African media reported what amounted to an attack on Portia Derby, CEO of the Transnet Group, by ANC and Economic Freedom Fighters (EFF) MPs participating in the Public Enterprises Portfolio Committee, they accused her of “doing nothing” to stop the company’s slide into disarray and reprimanded her for privatising parts of its operations which they said was not government policy.
The word “privatisation” is, to use an English expression, something of a “red rag to a bull.” The route Transnet appears to be taking with DCT2 could perhaps more accurately be described as a commercialisation – with just 49 per cent of the equity of DCT2 on offer it is by no means a complete transfer of the business from the public to private sector. Seasoned observers suggest that the word privatisation is essentially a weapon deployed by those in government, and others, who, bottom line, are fundamentally opposed to private sector participation in Transnet’s port
business. Certainly, it has to be acknowledged that strong resistance to the idea does exist – as has in fact been the case ever since the ANC came to power.
It also true to say that as key public sector businesses have experienced more and more problems – South African Airways, Eskom the power provider and Transnet Rail – more proposals about introducing private sector expertise, to a greater or lesser extent, have been forthcoming, in turn stimulating greater opposition to the idea. The net result is what amounts to a for and against camp in government and at a wider level. This has also reached the stage where it is becoming manifestly visible to potential investors which is raising cause for concern.
While nobody cares to admit it publicly, the initial launch of the DCT2 process raised some eyebrows and notably in terms of the demanding performance criteria that had to be achieved to qualify to participate in the process – much higher than is normally the case. It gave rise to the suspicion that setting the bar high was, in part or totally, a tactic that could be used to make the process fail.
The fact that this latter scenario has in fact
been seen recently in conjunction with Transnet Freight Rail further fans the flames of unease among investors. Transnet announced last year that 16 slots would be opened for auction to give third party access to South Africa’s rail freight infrastructure. Only one bidder, Traxtion Sheltham, successfully completed the first phase of the bid process and out of the 18 companies that showed interest in bidding only two participated because of the nature of the bid conditions. As stated by Mesela Nhlapo, CEO, African Rail Industry Association, Transnet’s onerous terms and conditions are not appealing to private sector investors.
The DCT2 bid process is underway and there are interested parties. It is very clear that the port sector would benefit immensely from private sector input. Government should make every effort to keep the process on track, to get behind it and not allow negative interests to pervade it. A key fundamental of a healthy bid process is investor confidence and this will ultimately deliver the best return for the country as a whole.
There is also the reality that given the deteriorating state of the South African economy greater participation by the private sector in what have hitherto been public sector enterprises is not an option but an absolute must.
Government should make every effort to keep the process on track, to get behind it and not allow negative interests to pervade it
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Santos Port Authority (SPA) achieved the best monthly performance in its history in March 2023, when it handled 15.3 million tons of cargo. At the same time, a total of 484 ships berthed at the port’s facilities, reflecting an increase of eight per cent over the comparable period of 2022. Marcus Mingoni, Interim CEO, SPA, underlines that the results are an indication of the port’s “increasing efficiency and productivity, consolidating its position as the largest port complex in Latin America.”
The Northwest Seaport Alliance (NWSA) partnership of the ports of Seattle and Tacoma has launched its 2023 Rail Cargo Incentive Program. The initiative offers a US$50 incentive per rail move for eligible rail volumes moving through the port gateway from May 1, 2023, with the hope that it could generate up to 60,000 additional rail lifts –a total that equals almost 15 per cent of the total international intermodal rail lifts passing through Seattle-Tacoma in 2022.
China’s twelve largest container ports handled 44.1 million TEU over the January and February 2023 period, confirming an increase of just 1.3 per cent compared to the same period in 2022. Shanghai was the leading facility with 7.46 million TEU, although activity was down by 8.6 per cent, with Ningbo & Zhoushan second with 5.31 million TEU, a rise of 9.1 per cent. Next is the port of Qingdao with 4.18 million TEU, reflecting a strong year-on-year increase of 12.3 per cent.
Two PSA subsidiaries are uniting to form a new single brand with the aim of combining complementary strengths and capabilities. The new entity, named PSA BDP, comprises PSA Cargo Solutions and BDP International, which PSA International acquired in April 2022.
PSA International states that Cargo Solutions and BDP have already been working closely to deliver expanded terminal value-added services, developing digital applications to streamline compliance
processes, and offering multimodal transportation solutions that focus on reducing carbon emissions.
In addition, PSA BDP is expected to leverage and support strategic hub port assets in the company and support an expansive global asset portfolio providing greater agility to shippers in what it terms as a “complex global environment.”
Further, PSA BDP is planning to enhance the delivery of innovative and sustainable solutions supported by industry-leading digitalisation and data capabilities
to empower connectivity across supply chain ecosystems.
PSA Group has been reorganised into two different business lines, Ports and Cargo Solutions. The new PSA BDP brand is going to represent the PSA Group’s Cargo Solutions business activity.
Tan Chong Meng, Group CEO, PSA International, said the reorganisation will sharpen the company’s “ability to innovate and deliver future solutions.”
APM Terminals (APMT) has confirmed a new project to develop two new deep-water berths at Lach Huyen port in Haiphong City, Vietnam, in conjunction with the Vietnamese HATECO group.
The new strategic partnership will see APMT focus on financial, operational, and technical support to HATECO as part of the partnership.
The port project itself entails developing two berths offering a
total length of 900m (based on 450m each), with the aim of accommodating container vessels of up to 18,000TEU in size.
The initial phase will see the new facility operating with five ship-to-shore (STS) cranes and 14 rubber-tyred gantry (RTG) cranes.
HATECO has stated that it intends to complete all construction works and deploy equipment by the end of 2024, with operations to commence at the new terminal by Q1 2025.
Martijn van Dongen, Head of Investment, APM Terminals, notes: “We are very pleased to partner with HATECO on this important project, further unlocking one of the rapidly growing and high-potential markets in South-East Asia.
“We also believe in the win-win partnership with HATECO, which will create synergies between local expertise and our global capabilities.”
APM Terminals (APMT) is expanding its Maasvlakte II terminal in Rotterdam, in a deal worth in excess of €1 billion ($1.1 billion).
The Port of Rotterdam
Authority is already constructing new quay walls of 1000m at the 47.5ha site, with completion of the work planned for mid-2024.
This expansion will result in the terminal’s capacity increasing by
approximately two million TEU per annum when the additional infrastructure becomes operational in Q2 2026. APMT opened the fully-automated Maasvlakte II terminal in 2015.
For the first two months of 2023, the Port of New York/New Jersey (NY/NJ) was the busiest container port in North America.
Handing a total of 1.216 million TEU in this period put this US East Coast port ahead of the two US West Coast ports of Los Angeles and Long Beach, which recorded 1.214 million TEU and 1.117 million TEU, respectively.
By comparison, for the comparable periods of 2022, Los Angeles led the way with 1.723 million TEU, followed by Long Beach recording 1.598 million TEU and NY/NJ in third place with a total of 1.524 million TEU.
Confidence in US West Coast ports, especially in Southern California, has been further undermined when operations ground to a halt across the San Pedro complex for 24 hours during the second week of April 2023. No work commenced at the start of a Thursday late shift because insufficient dock workers reported in and the same thing occurred the following Friday morning. As a result, four terminals across Long Beach were closed and all seven box facilities at Los Angeles did not work.
The relationship between employers and worker unions remains acrimonious, at best. On this occasion, and according to local media outlets, the PMA (employers association) accused the ILWU (stevedores union) of “with-holding” labour deliberately to shut-down both San Pedro ports. The union countered these
Neo-Panamax ships can now be handled at the Mariel Container Terminal (TCM) in Cuba. This follows TCM completing dredging of the access channel to be able to receive ships up to 366m LOA, 52m wide and 15m deep. The Port of Mariel is located 45km from Havana and TCM wants to use this project to help promote the sustainable economic development of Cuba, through the attraction of foreign investment.
The Economic Ministry in Germany is currently reassessing its previous decision to allow COSCO Shipping Ports (CSP) to acquire a stake in one of three terminals at the Port of Hamburg operated by Hamburg Hafen und Logostik AG (HHLA).
claims by explaining that its members were attending a monthly membership meeting on the Thursday and a low turnout the following morning was due to workers “observing” the Good Friday holiday.
The contract talks on the US West Coast continue to drag on, with little progress seemingly being made since the old deal finished at the end of July 2022. In March 2023, operations in the Port of Los Angeles stopped for one hour as stevedores and workers all took their lunch break simultaneously instead of the usual practice of staggering mealtimes.
While these specific events resulted in little loss of cargo activity at the ports, clear concerns remain on a wider basis. The PMA continues to warn the ILWU that the West Coast will lose traffic if reaching a settlement continues to drag on. “These actions undermine confidence in
The Port Authority of Valencia (PAV) has announced its first monthly increase in container traffic since May 2022. For March 2023, the port handled a total of 322,137TEU, representing a rise of 16.7 per cent over March 2022. At the same time, rail traffic is also rising. In Q1 2023, an average of 99 weekly trains were scheduled, up on the weekly averages for 2022 (90 trains) and 2021 (80 per week). Valencia is currently building a new 5 million TEU per annum container facility.
is benefitting from contentious labour contract talks on the US West Coast
west coast ports and threaten to further accelerate the diversion of discretionary cargo to Atlantic and Gulf coast ports,” it has been reported as saying.
This is just a snapshot of the first two months of 2023, and Los Angeles has just released its March 2023 data that shows loaded imports were up by 28 per cent over February 2023, although the total for Q1 2023 (of 1.84 million TEU) was still down on Q1 2022 by 32 per cent.
Yes, the difference between the three ports so far in this current year is very small, but it remains reflective of an ongoing trend in which beneficial cargo owners are continuing to shift from the West Coast to East Coast gateway ports of entry, primarily for Asiansourced cargo.
The Port of Melbourne is progressing its Port Rail Transformation Project (PRTP) through the launch of a new single-lane, two-way road connecting Mullaly Close/ Coode Road with the Dock Link Road. The new routing has been dubbed the “Intermodal Way.” The aim of this new initiative at Melbourne is to ensure a continuous flow of cargo activities linking marine, rail, and road freight activities that converge in the port.
Back in October 2022, German Chancellor Olaf Scholz gave approval for the deal in which CSP would gain a minority stake of 24.9 per cent, despite strong oppositiion from across the governing coalition.
Now, however, that the facility has been classified as “critical infrastructure” the terms by which the deal will allow CSP to acquire the shareholding are under further review.
Yet some confusion remains. According to local reports Scholz’s stance on the matter “has not changed” and a spokesperson for HHLA stated that the critical infrastructure tag was in place under “pre-existing criteria” which basically means there is no “significant change” in the process.
Chinese investment in German infrastructure remains a contentious issue amongst politicians in the country, with critics citing a concerning rise in influence and risks in national security.
For the fiscal year period April 2022 to March 2023, Adani Ports and Special Economic Zone Ltd (APSEZ) confirms that it handled a total of 8.6 million TEU across its portfolio. This activity reflected a five per cent year-on-year increase for the company, with Mundra Port by far the most dominant container facility, handling 77 per cent (6.6 million TEU) alone. APSEZ is India’s largest private port operator with a network of 12 ports and terminals.
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8 Hutchison Port Holdings (HPH) Trust has rolled out 5G technology at its Hong Kong container terminals – a first for the country. In conjunction with 3HK, reported to offer the strongest 5G network in Hong Kong, HPH Trust has established five 5g base stations in its terminals facilitating ultra-highspeed, low latency and large-scale machine-type communications. Ensuing benefits are reported as greater remote execution abilities, more connected devices and the option to implement virtual private real-time networks. HPH Trust further reports three pilot projects underway at its terminals: structuring a communications channel via 5G to remotely control rubber tyred gantries; introducing a CCTV system employing Artificial Intelligence with intrusion detection features for gatehouse application to maximise terminal security and the adoption of CCTV on quay cranes in order to better monitor berth traffic and vessel operations.
DP World Antwerp Gateway is improving container collection security through the introduction of fingerprint scanning technology. The new software to support container collections at the terminal complex is called Certified Pick up (CPu) and has been successfully tested in conjunction with NxtPort, and Belgium logistics specialists, Katoen Natie and Van More.
The CPu software enhances operational security because it enables truck drivers to be pre-registered with the system and upon arrival at the terminal their fingerprints can be matched to a specific container.
The existing system used involves gaining access via inputting a pin code, which opens up risks of multi-party handling and exposing containers to misuse.
The first containers collected using CPu were successfully
The Port of Cork Company (PoCC) is working with Innovez One, a specialist provider of port management systems, to accelerate the digitalisation of all port calls and operations processes. Under the new agreement, Innovez One will implement its marine software to automate the scheduling of port, tug, and pilotage using artificial intelligence (AI) and machine learning algorithms to manage schedules and dispatch resources.
collected in mid-March 2023 and DP World is now planning implementation for all truck collections, while further adaptation to the system will enable container collections involving both barge and rail.
DP World says that around 2000 companies have registered interest in obtaining the CPu
Transnet National Ports Authority (TNPA) is relaunching its Integrated Port Management System (IPMS) at eight commercial ports, with the aim of completing a digital transformation strategy to deliver a smart port system by 2028. Developed by Indiabased Navayuga Infotech in conjunction with Nambiti Technologies of South Africa, the IPMS aims to support the key objectives of the Transnet Market Demand Strategy.
system it has developed with its partners: “The success of our pilot project with Van Moer and Katoen Natie is the first step towards further rolling out CPu with all stakeholders and for all modes of transport in 2023. We are hopeful that the industry will see the benefits of increased security at container terminals and introduce
Itapoá Port in Brazil has introduced an HCVM XT cargo inspection system from Smiths Detection, a UK-based specialist in threat detection and security screening technologies. The new equipment meets the latest Brazilian image quality requirements and is focused on screening export cargo for security threats and undeclared goods. The HCVM XT is the first unit of its kind to be deployed in Latin America.
this technology throughout the entire logistics chain,” explains Dirk Van den Bosch, Chief Executive Officer, DP World, Antwerp.
Tanker shipping operator, Hafnia, has launched a new digital venture studio with partners Microsoft, Wilhelmsen, IMC Ventures and DNV. Dubbed project Studio 30 50, the studio’s objective is to identify new solutions which cover a broad range of maritime sector ESG issues and target significant emissions reductions by 2030. It will also function to fund proposals (from start-ups) which aim to improve supply chain efficiency.
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Bruks Siwertell has confirmed a new order from Senegal Minergy Port SA (SMP) for a high-capacity grain handling Siwertell ship unloader. The equipment is for the new Bargny-Sendou port development, located near Dakar, Senegal, in West Africa. SMP selected this dry bulk handling solution on the basis of three important factors, namely, unloading capacity, unloading efficiency, and environmental impact. This unloader is fully enclosed and offers a continuous rated grain
handling capacity of 1200 tph, maintaining a spillage-free operation and generating minimal dust emissions.
In addition to minimising any material degradation in grain handling, the low weight of Siwertell technology also ensures specific advantages to this new port development. The Siwertell 640 M-type ship unloader will be installed on a jetty 1500m from the shore, and so minimising infrastructure weight, reduces the cost of jetty construction.
It will be assembled on site under Bruks Siwertell supervision, with operations scheduled to commence in mid-2024.
SMP is targeting this new port facility to be both a gateway to Senegal and its neighbouring countries, but also a hub for the wider west African region. An initial capacity of 20 million tonnes is being developed, with around 15 million tonnes expected to be handled in its first full year of operations.
Bruks Siwertell has also completed the commissioning of two large scale Siwertell ST 790-D-type ship-unloaders for a newly developed coal-handling power station in southern China. These new rail-mounted units offer a continuous coal-handling capacity of 1800 tph, with a peak capacity of 2000 tph, discharging vessels of up to 100,000 DWT.
These two ship-unloaders are designed to handle coal and other dry bulk materials via fully enclosed conveying lines from start to finish, ensuring an operation free from spillage and keeping dust emissions to a minimum to ensure operations are completed in the most environmentallyfriendly way possible.
Björn Ohlsson, Contract Manager, Bruks Siwertell notes:
The Port of Rotterdam Authority has placed six “smart bollards” on the quay of the Hutchison Ports ECT Delta port on the Maasvlakte, following the successful testing of one smart bollard. The six bollards, designed in cooperation with Straatman BV, Zwijndrecht, have been installed along a single berth to cater for large container ships and can measure the strength of the mooring lines on a continual basis.
“The COVID pandemic presented a number of challenges for the commissioning process
Elcome International is supplying and installing Saab’s next generation Vessel Traffic Management Information System (VTMIS) to the AD Ports Group. VTMIS is Saab’s stateof-the-art system and is being introduced at Khalifa Port, Zayed Port & Free Port, Musaffah Port and Al Dhafra region ports, as part of an initiative to provide remote, local, and centralised monitoring and control of vessel movements in and around the Emirate.
as it was impossible to send personnel from Sweden. We had to get creative, developing a unique set-up that saw our local personnel carry out the commissioning and performance tests with remote support.”
Konecranes has confirmed it has acquired the industrial and nuclear crane and crane service operations of North American-focused, Whiting Corporation. The privately-owned company has a 130-strong workforce across seven locations, and Konecranes is using the deal to target access to new customers and growth opportunities for its Industrial Service and Equipment business unit in a strategically important market.
The Georgia Ports Authority (GPA) has confirmed it is investing US$170 million on 55 new hybridengine rubber-tyred gantries (RTGs) to support the Ocean Terminal at the Port of Savannah.
The decision behind the spend is two-fold. First, it is a key part of redeveloping the 200-acre terminal into an all-container facility, while secondly, the new units reduce emissions by 50 per cent in comparison to conventional diesel machines.
GPA explains that on the basis of each RTG working an average of 4000 operating hours per annum, the hybrid engine will reduce emissions by 127 tonnes per unit per annum, or the equivalent of almost 7000 tonnes across the entire 55-RTG fleet.
These hybrid RTGs operate exclusively from electric battery power, with diesel generators only in use to recharge the batteries. As a result, GPA is expecting to see a reduction in fuel consumption by an estimated 47 per cent compared to the all-diesel machines, which translates to a reduction of 8800 gallons of diesel per crane per annum, or almost 500,000 gallons across the Ocean Terminal fleet on a yearly basis.
Consequently, on the basis of current fuel prices, GPA is expecting a reduction in fuel operating expenses by circa US$1.6 million/pa.
Napier Port in New Zealand has taken possession of four new Kalmar machines. The equipment includes two Eco Reach Stackers and two Empty Container Handlers with all units acquired as part of the port’s emissions redu ction strategy and wider sustainability objectives. The machines reportedly use up to 40 per cent less fuel than conventional units and will help lower Napier’s reliance on diesel fuels.
Doyle Shipping Group (DSG) at Dublin Port is acquiring a new hybrid Rubber Tyred Gantry (RTG) from Liebherr. The LES 200 unit features a capacitor system that captures and preserves the energy produced during hoist lowering and braking. This captured energy is then redeployed during peak demand to reduce the overall energy consumption and emissions of a RTG, plus lower operating and maintenance costs.
ISG (Intermodal Solutions Group) of Australia is combining dry bulk containers and the company’s patented revolver (tippler) system. Shipping containers are lifted into the ship’s hold, upon which a lid is automatically lifted off the container allowing the tippler to rotate the container 360 degrees in less than 60 seconds, emptying the cargo into the ships hold, before the lid is replaced and the containers are taken back to the processing plant to start the loop again.
The Port of Trelleborg has introduced a new Konecranes intermodal reach stacker at its intermodal terminal, located on the southern coast of Sweden. The new unit is the SMV 4538 CCX4 model that can stack 45 tonnes in the first row, up to four containers high. In addition to a wheelbase of 7500 mm, it utilises a unique combi spreader that can manage laden containers from the top and trailers from the bottom across multiple tracks.
8 Antwerp Terminal Services (ATS), a joint-venture between MSC PSA Europe Terminal (MPET) and PSA Antwerp (PSAA), has launched the world’s first hydrogen dual fuel straddle carrier, in conjunction with clean tech specialist, CMB.TECH. The machine is fuelled through a mix of hydrogen and diesel, with hydrogen injected into the diesel combustion engine, therefore helping to play an important role in reducing terminal greenhouse gas emissions. The dual fuel technology can replace 70 per cent of diesel consumption with hydrogen on new straddle carriers, with the ultimate goal of 100 per cent hydrogen injection, ATS reports. This first unit will now undergo extensive testing at PSAA’s Noordzee Terminal with allied ongoing development efforts focusing on how to improve the design in order to scale it up and consideration given to arrangements for the supply and storage of hydrogen for the entire straddle carrier fleet. Funding for the next phase is supported by PIONEERS, a scheme funded by the EU and coordinated by the Port of Antwerp-Bruges. Overall, the project is part of the Horizon 2020 programme which backs the development of solutions to reduce carbon emissions in the port sector, with the goal of transforming ports into green infrastructures by 2050.
Winning Logistics in Guinea, West Africa, has placed an order for two Konecranes Gottwald Model 8 G HPK 8200 B Cranes on Barge.
Konecranes Gottwald Cranes on Barge are specially designed to maintain an uninterrupted material flow on water, even during demanding marine conditions. The units can operate in winds of up to 24 m/s and at maximum wave heights of 2.5m, with a working radius of 43m, a 63-tonne grab curve and lifting speeds of up to 140m per minute. These parameters enable the cranes to generate handling rates of 30,000 tonnes per day, which matches the existing cranes in operation.
The new cranes will incorporate additional features to assist performance and contribute to enhanced safety. These include a fire suppression system, TRUCONNECT® remote monitoring and a spare parts package that will help to optimise maintenance and minimise downtime.
Sun Zhijun, Vice President of Winning International Group outlines the decision-making rationale: “Winning International Group takes Environmental, Social, Governance (ESG) compliance seriously in terms of sourcing products and services that are safe, reliable and efficient. We know that Konecranes Gottwald mobile harbour cranes are reliable
products for harsh environments. Their high productivity backed by quality service consistently creates added value for us. These cranes play a critical role in our unique offshore transshipment operation that has proven to be efficient, costeffective and environmentally friendly. We are happy to be able to partner with suppliers, like Konecranes, who share our belief
in sustainability beyond shipping and mining.”
On-site commissioning is planned for Q3 2024 and means Winning Logistics will be operating a fleet of 10 units, each loading ships with bauxite.
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Unfortunately, this may not be the case in the US.
Well, in writing these opinion pieces, I’ve avoided the touchy issues of labour. After all, ports are fueled by people, and, as the saying goes, “if it ain’t brokedon’t fix it.” But the problem with that is maybe it is “broken,” however you define it!
Consider that US West Coast ports, which have been in the midst of “labour negotiations” (another phrase with a vague definition) for nearly a year, are now slowing down. Yes, the post-pandemic stats are good, but recent reports suggest that manpower shortages/ not enough workers, have contributed to actual shutdowns at Los Angeles/Long Beach (LA/ LB) in early April. The backdrop, evidenced in statistics put together by John McCown and other analysts, has confirmed what was visible to observers – a significant portion of cargo has shifted to the East Coast. While that is closer to my geography, I am not standing up and cheering. The repositioning of cargo gives
a hint as to the nature of the above-mentioned breakage.
To some degree, the West Coast ports have struggled with productivity. Maybe it is time now for further exploration of the dreaded “A” word, which is “A” for automation (a feature in some, though not all, of the East Coast terminals). The move to “A” need not connote a whole elimination of jobs. It does, however, suggest that a middle ground, that of re-skilling the workforce, might be part of the solutions. Just
In March 2023, the European Court of Auditors (ECA) published a report in which it argued that the EU’s ambitions regarding the growth of intermodal transport are not realistic. More specifically, the European Green Deal calls for a substantial part of the 75 per cent of inland freight carried today by road to shift to rail and inland waterways.
The ECA points out that the ‘modal shift’ ambitions are not new, but were already included in the 2011 whitepaper setting out the freight transport policies. However, since 2011, the share of intermodal (rail and inland waterways) transport has not grown at all; in fact, it even
8 Traditionally longshoremen have objected to the comprehensive adoption of automation, notably on the USWC, but increasingly this appears to be an impediment to optimising supply chain performance
like “seafarers” aboard ships are increasingly schooled with capabilities for operating in a more digitalised realm, the shore-side must come to grips with the bigger picture of how commerce can flow.
Though the ports are not operating the terminals in many
cases, and are performing the landlord function, they can play an important role in prodding both terminals and labour to explore moves towards this middle ground.
Supply chain data initiatives abound at this point, hoping to bring some fluidity to what’s been a very fragmented market structure. Individual ports (including those mentioned above) have well designed “data” displays reflecting their activities. Yet they are all in silos, not really purposed for interfacing with broader solutions that could be developed.
Automation at ports would enhance the ability to integrate into supply chain optimisation efforts. Not surprisingly (and, again I am not applauding), the productivity of US ports has ranked in the lower portions of the leaderboard when port performance is measured. But moves towards a more digitalised future (with the labour increasingly taking on supervisory roles) could be an important step towards enhanced productivity.
declined somewhat. In addition, the total volume transported by rail & inland waterways also grew only very moderately (rail volumes grew 8 per cent in the decade 2010-2020).
In spite of these developments, the EU targets a growth of rail freight of 100 per c ent by 2050, and a growth of inland waterways transport by 50 per cent in 2050.
The European Commission foresees a substantial growth of freight transport overall, and strives for a significant (but unspecified) shift from road to rail and inland waterways.
In my view, both of these drivers of rail volume growth are
highly uncertain. The overall freight transport volumes do not necessarily grow as the economy grows; an increasing decoupling can be observed. The aspired ‘modal shift’ is also uncertain. In addition, the environmental performance of road transport is bound to increase, as it will increasingly use electricity (and in addition hydrogen).
As with passenger cars, the shift to electricity may go fast once the tipping point, at which e-trucks become cheaper than diesel trucks, is reached. Even with e-trucks, there may be societal benefits of using intermodal transport, as a shift to
intermodal may alleviate highway congestion. However, this congestion is mostly driven by commuting in rush hours, so the effect is probably not very large.
All in all, aspirational goals for the growth of intermodal transport are fine, as long as policy makers do not become so invested in achieving these goals that they agree on massive investments in rail infrastructure and intermodal terminals. There is a serious risk that the costs of such investments will turn out to be higher than initially estimated, while the benefits will turn out to be lower than initially estimated.
It will take decades before we see the end of marine oil-based fuels and the alternative fuels, particularly LNG, may not bring the benefits touted.
Much has been written and even more discussed about the international shipping industry moving from the traditional polluting bunker fuels known as heavy fuel oil (HFO) to marine gas oil (MGO), a distillate to very low sulfur oil (VLSO) and now followed by the “greener” varieties of engine fuels such as ammonia, hydrogen, LNG, LPG, methanol some with support of batteries and scrubbers and, in some minor cases, a return to sail assistance.
Let’s put this into some perspective. There are +/- 58,000 internationally trading merchant ships plying the oceans. Today, over 99 .6 per cent of these, according to the DNV, operate using conventional fuel oils leaving less than half a per cent using the alternative cleaner and greener fuels, and these ships are
modifications, which lead to increased costs for the carriers. It will be interesting to see how the chosen fuel price differentials work out and whether they can provide greater stability than crude oil-based fuel has done in the past.
primarily containerships. It is estimated that by 2025/2027 the non-conventional fuel burning ships will reach somewhere near 20 per cent of the total fleet made up primarily of containerships which by then will number in the region of 5700.
The majority of the alternative fuel ships will be powered by LNG based on the current order book. It is interesting to note that Maersk Line has opted to invest in ships burning methanol whilst
The US Government Accountability Office (GAO) has conducted an assessment of the US Coast Guard’s Foreign Port Security Programme and concluded, in a 50+ page report, that it could:
- More consistently assess security in countries that don’t allow port visits.
- Share assessment information with other agencies working on supply chain security, and
- Coordinate with the State Department on strengthening foreign port security.
The report notes that the Coast Guard has assessed the security of foreign maritime ports since 2014 but due to the pandemic it had to suspend its country assessment visits during fy 2020 and 2021 with
CMA CGM and Hapag Lloyd have opted for LNG.
The availability of production and distribution facilities as well as an adequate bunkering infrastructure will be a challenge for the main global bunkering ports in order to service their clients. New fuels in many cases require extensive on-board
The other challenge facing the ship owning industry that is investing in alternative fuels is to prove that their new choice of propulsion is in reality, not just in theory, greener and more environmentally sustainable. There are already groups protesting the emissions from LNG in particular and methanol as well. Two highly active ones are “Say No To LNG’s” and the ClimateWorks Foundation. The contention is that LNG ships will produce methane emissions replacing CO2, neither of which is desirable. The financial impact on ports and ship owners is yet to be determined.
the programme resuming in May 2021.
This new GAO assessment has implications for the ports involved – including those countries that resist port visits - and as such its principal findings are worth noting.
On the issue of countries that don’t allow port visits, the GAO notes that the Coast Guard had started using alternative approaches to assess these countries but that this tactic has lacked consistency. GAO contends that by fully documenting procedures for using alternative approaches consistency can be improved with a commensurate boost to security.
On the point of sharing information with other agencies the report states:
“The program documents the results of its foreign port assessments in various reports. However, as of September 2022, it had not disseminated its most comprehensive report (known as its annual report) to Customs and Border Protection (CBP) and other federal agencies that may have a vested interest in receiving it. For example, it had not shared them with CBP, even though it is required to assess the information in its supply chain security efforts. By sharing its annual reports with CBP and other federal agencies, the Coast Guard could better support its
“whole of government” approach for securing the U.S. supply chain.”
In the final analysis, GAO comes up with six main recommendations for executive action which can be viewed at https://www.gao.gov/products/ gao-23-105385. Combined they are expected to lead to a more rigorous approach to foreign port security assessment.
The spirit of these recommendations is basically to use with greater positive effect internal resources and to achieve a higher level of coordination and capacity building resulting in a better overall assessment of maritime security in the context of the US supply chain.
Many of the drivers for rapid container trade growth are found in India. Are the planets finally aligned to deliver this? Andrew Penfold takes a look at the pros and the cons
8 JNPT is one of the West Coast ports that has seen significant investment but container system investment needs to take place on a broader basis to unlock the full trade potential
The outlook for India as a major global manufacturing hub should be positive. The economy is expanding rapidly, there is increased openness and scepticism towards China has increased sharply post-Covid. The IMF is currently estimating GDP growth of 6.8 per cent this year with this broadly maintained in the short term. Labour costs are low, and this will continue, and exports are on the up, reaching more than USD422bn this financial year.
S&P Global and Morgan Stanley have recently reported that India will overtake Japan and Germany to become the world’s third-largest economy, with a forecast annual GDP annual GDP growth of 6.3 per cent through to 2030 and beyond.
Given geopolitical uncertainties regarding China, and a much higher perceived risk for placing all eggs in the Chinese basket, it would (at least superficially) seem that India offers a good alternative source for global manufacturers. The real question is whether this potential will be derailed by infrastructure issues? Can the port sector deliver what is required to catalyse the Indian economy?
Of course, its not just the ports that have held back India’s development. There are well-entrenched social issues in India and a generally bureaucratic structure has constrained innovation for many years, with protectionist policies undermining scope for export-led expansion and a notable lack of international trade partnerships. However, this final point may well be changing with the establishment of the USled Indo-Pacific Economic Framework from May of last year. This potential opening and reorientation of global demand away from China are already being reflected in container trade vectors.
If India is to capitalise on this new found relative opportunity it will be the container port sector that will have to lead the way.
Overall development of containers handled at Indian ports, as collated by the Indian Government, is summarised in the
accompanying graph. The pre-Covid trend was clearly one of sustained expansion with total volumes reaching a peak of over 17.1m TEU in 2019. The situation since then – in common with other markets – has been uncertain, with total volumes having contracted and remaining below the 2019 peak. It is fair to say that the lack of efficient port handling capacity is now actively constraining the level of Indian containerised trade. The rush to invest in Indian ports that was noted a few years ago has taken some time to be reanimated.
The difficulties and expense of inland container delivery in India has long been a major issue for trade development. The need to transit internal borders and the lack of a truly integrated transport policy (aside from the rapidly developing Mumbai/Gujarat to New Delhi axis) has resulted in a high level of dependency on smaller volume (feeder) ports serving immediate and localised hinterlands.
Within the overall national picture, it is apparent that there is a sharp difference between the situation facing west coast ports and those in the south and on the Bay of Bengal. In the former ports, investment has proceeded fairly rapidly with a series of projects permitting larger vessels to enter the trades. As a result, these west coast markets are far less dependent upon feedering from regional hub ports. It is estimated that within the total west coast demand feedering (from Dubai and Colombo) accounted for around 8 per cent of all containers handled.
The situation on the east coast is different. Here, the role of feedered containers is far greater with around 45 per cent of all containers handled at these ports being feedered either from Port Klang, Dubai or – most significantly – Colombo. It is estimated that around 2.5m TEU of Sri Lankan port demand is currently feedered to/from Indian east coast ports. This equates to around 38 per cent of demand at Colombo.
The additional costs of this cargo diversion are sizeable and can be estimated at around USD450-500 per 40ft container. Although significant it should be noted that in relation to the value of the goods this represents a limited
cost penalty. There has been significant and continuing pressure to develop a transshipment hub within a regional Indian port, but this has been driven as much by national reasons as from compelling cost assessments. The simple replacement of Sri Lanka with a domestic hub port would have little overall benefit except insofar as the revenue from handling would be in the hands of Indian companies –probably themselves subsidiaries of international stevedores.
Until east coast ports are developed to handle the size and type of vessels required for direct services (and until the required critical mass in demand is secured) the feedering model will remain dominant.
It should be noted that the major shipping lines are actively reviewing their strategies with regard to the Indian market. The push to deploy larger vessels on the trades – even where port access is highly problematic – has been accelerated by the cascading effect noted from the Far East to Europe trades. The introduction of ‘Megamax’ (20,000TEU+) vessels onto the major trades has seen a displacement of previous generation 13,000-15,000TEU units onto some of the Indian trades. This push – together with the development of increased direct services between India and North America – is rapidly changing the outlook.
According to Alphaliner, the biggest global container tonnage shift in 2022 was the rapid expansion of capacity deployed on the Middle East/Indian Subcontinent markets where around 320,000TEU of fleet capacity was added over the year. This compares with a stagnation in the established arterial trades. Indian demand was the driving force in these developments.
Typical of these developments was the decision by COSCO and OOCL to offer a dedicated southeast Asia to US East Coast service via India. The vessels are in the small category at around 4500TEU but are indicative of the underlying demand picture. The AWES service calls at Mundra where Adani will concentrate local and domestic feedered demand. There are currently five direct weekly services between India and the US East Coast. Garments are the major commodities
within these trades as US demand diversifies away from China to lower cost Indian and Bangladeshi suppliers.
The relative strength of demand here is confirmed by the recent US$500 per 40ft rate increase applied on these trades – this running counter to the broader trend of rate collapses noted on the larger deepsea trades.
The direction of travel is clear, with lines stepping-up investment in the Indian markets in anticipation of strong demand growth. Hapag-Lloyd’s decision to invest in India’s leading inland transport/terminal operator J M Baxi Ports & Logistics is another indicator of this trend.
The potential is clearly there, and the level of inward investment is increasing (see following article). At present, there is a lack of three things: overall container handling capacity, handling capacity correctly formatted to the needs of the largest vessels and limited inland container delivery restricting establishment of critical mass away from Mumbai and Gujarat. Each of these presents real difficulties but the profitability is there if carefully managed. In the meantime, reliance on smaller vessels and transshipment will continue.
Investment is recognising this potential and the level of projects coming forward is high. In the past the pace of growth has been constrained by both bureaucracy and India’s well-established vested interests. Developments on the global stage present an unprecedented opportunity for Indian exports – these markets remain the great underdeveloped opportunity for fast-track containerisation.
8 The difficulties associated with and expense of inland container delivery in India represent significant challenges that have to be addressed to optimise supply chain efficiency
India - these markets remain the great underdeveloped opportunity for fast-track containerisation
The UN reports India has overtaken China as the world’s most populous country. With its potential to be a tiger economy, are India’s ports purring? AJ Keyes looks at current developments
According to the Ministry of Ports, Shipping and Waterways in India, the country has 12 major ports (and 200 non-major facilities) and over 95 per cent of its trade (and 65 per cent of value) needs maritime transport access to serve its 1.43bn inhabitants.
The need for container ports to be efficient and for capacity to keep pace with cargo demand is undeniable, but as Andrew Penfold confirms (see preceding article), the country lacks three things: overall container handling capacity, handling capacity correctly formatted to the needs of the largest vessels and effective inland container delivery, restricting establishment of critical mass, away from Mumbai and Gujarat.
So, what is the current state of play across Indian ports? Roaring like a lion or meowing like a kitten?
Figure 1 provides an overview of the location of the main Indian container ports spread along the east and west coasts. There are a number of confirmed or known projects in India set to increase container capacity on both coasts.
Table 1 provides a listing of the main East Coast container ports and a summary of terminal operator(s), current annual throughput capacity, and investment plans.
The following represents a summary of the investment and capacity plans at selected East Coast ports:
5 Chennai: According to the Chennai Masterplan, 2022, the combined berth capacity at the first and second container terminals “may barely be sufficient for the expected container volume in 2035.” As a result, the Port Authority is planning to augment infrastructure and points out that the “existing concession agreements have a provision for the upgradation and renewal of container handling equipment by the operator in 15 to 20 years of operation.” A total of 3.7 million TEU per annum capacity by 2025 is cited in the masterplan, although this currently looks an optimistic build date.
5 Gangararam: The port handled 30 million tonnes in FY 2022 and forecasts a rise to 66 million tonnes by FY 2025. A new container terminal of 800,000 TEU per annum is part of the port’s ongoing development plans, with more than 400,000 TEU handled by FY 2025.
5 Karaikal: APSEZ has completed the acquisition of Karaikal Port Private Limited (KPPL), located around 300 kilometres south of Chennai. It is the only major port between Chennai and Tuticorin, and its strategic location allows access to the hinterland of Central Tamil Nadu. APSEZ has stated it intends to double the capacity of the port within the next five years and to add a container terminal.
5 VO Chidambaranar (Tuticorin): Confirmed plans to develop a transshipment hub by expanding container handling capacity to four million TEU per annum. The project includes construction of a breakwater, supporting yard, rail line and dredging in the Outer Harbour basin. A port official confirms: “This will be basically India’s answer to Colombo port. It will be a major container port, competing with Colombo, Singapore etc., the likes of which India has never seen before.” Big claims indeed.
5 Visakhapatnam: COVID-19 delayed capacity expansion but at the end of 2022 the port said the project to develop 1.2 million TEU of new capacity was completed, as part of targeting traffic currently moving over Colombo. The project entailed berth length expansion from 450m to 850m, supported by Super Post-Panamax cranes so ships up to 20,000 TEU in size can be handled. Local reports indicate that cargo from Kolkata port has been using Colombo and India’s west coast due to a lack of adequate infrastructure on the east coast.
Table 2 presents a summary of select container ports on the West Coast of India and their respective plans:
5 Cochin: Current capacity is one million TEU per annum and although there has been a Phase II development mooted, it remains unconfirmed. Doubts over the viability of the expansion were recently highlighted with the confirmation that for the fiscal year 2022-2023 period, the DP World facility saw transshipment activity fall by 30 per cent. As a result, only 104,666 TEU of transshipment cargo was handled, down on the 156,159 TEU in fiscal year 2021-22. The total volume of 695,230TEU in this recent year was down from 735,577TEU in the previous year..
5 Kandla: In Q4 2022, the government of India approved development of two new container terminals at Tuna-Tekra in Deendayal Port (Kandla Port) at an estimated cost of Rs5,963 crore (US$720 million). In a statement the Cabinet
Office said:: “From 2025, a net gap of 1.88 million TEU shall be available which can be catered for by a state-of-the-art container terminal at Tuna-Tekra, which will give it a strategic advantage as it will be the closest container terminal serving the vast hinterlands of northern India.”
5 Hazira: Very substantial plans are known for this facility, with as many as 19 new multi-purpose berths that will see cargo capacity rise from 150 million tonnes to 234 million tonnes. Space for containers has been confirmed within the project. This expansion is despite a further six berths being already undeveloped under the current concession terms. The exact timescales are not known, and the project is certainly ambitious.
5 Jawaharlal Nehru: CMA CGM Group subsidiary, CMA Terminals (CMAT), and J M Baxi Ports & Logistics Ltd., won the tender for privatisation of Jawaharlal Nehru Port Container Terminal (JNPCT), gaining a 30-year concession. The new Nhava Sheva Freeport Terminal has taken control of JNPCT’s 680m quay and 54ha yard and through equipment, yard and IT upgrades, intends to raise capacity to 1.8 million TEU per annum.
5 Mundra: APSEZ operates four container terminals and is expanding its infrastructure, due to ongoing double-digit throughput growth. In Summer 2022 the operator commenced the CT5 project that is targeting additional capacity of 1.3 million TEU per annum.
5 Pipavav: APM Terminals Pipavav is spending US$80 million, expanding its terminal to 1.6 million TEU capacity per annum to handle bigger ships and increased volumes from the implementation of its Western Dedicated Freight Corridor (DFC) initiative.
There are a number of ongoing and planned container port capacity projects on both the east and west coasts of India.
Collectively, these will add extra capacity to the country’s ports and with the involvement of both specialists in the Indian port market and leading global terminal operators, should enhance and improve container handling efficiency. Yet this investment may potentially see the weakest link in the supply chain moving inland, firmly placing the pressure on the quality and reliability of road and rail connectivity to support the country’s ports.
8 There are diverse capacity expansion plans for container ports in India but rail and road connectivity needs more attention
Karaikal Berth 5Government of Puducherry on Public Private Partnership
Kattupalli Kattupalli International Container Terminal (APSEZ)
Kolkata Bharat Kolkata Container Terminals (PSA)
Port authority & terminal operator
by 2025
Port expansion plan includes the development of a new container terminal with a handling capacity of 3.5 million TEUs and the creation of a multi-modal logistics park to enhance connectivity between the port and hinterland areas.
800,000 TEU terminal development
300,000Double capacity by 2028 and add a container terminal
1,200,000Expansion focused on coal and crude oil/gas
Wholly owned subsidiary850,000Capacity increase of 20% planned, noncontainer emphasis
Krishnapatnam Navayuga Container Terminal (APSEZ) Share of 75% in port company
1,200,000Phase 3 expansion, non-container VO Chidambaranar (Tuticorin) Tuticorin Container Terminal (PSA) PSA SICAL 57.5%450,000Outer Harbour project of 4 million TEU
Visakhapatnam Visakha Container Terminal (DPW) 30-year lease from 2002. DPW (26%) and United Liner Agencies of India (74%)
700,000Capacity up to 1.2 million TEU, longer-term could rise further
Notes: APSEZ = Adani Ports and Special Economic Zone. Primary focus on container activities Source: dataand.com
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Balancing Environmental Considerations with Economic Demands. The world’s leading conference on sustainable environmental practice comes to Lisbon.
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Welcome Reception - Hosted by the Port of Lisbon
DAY ONE - Wednesday 18 October 2023
08:30 Coffee and registration
09:30 Opening by Chairman/Moderator
Christopher Wooldridge, Science Coordinator EcoPorts EcoSLC, and Visiting Research Fellow, Cardiff University, UK
09:40 Welcome Address by Port of Lisbon
Keynote Panel
10:00 Climate Change: Energy efficiency, GHG emissions reduction & adaptation
-11:10 The risks to Ports, Shipping & the Logistics from climate change are increasing. This panel will discuss options available to combat these risks hearing from ports, shippers, and companies across the maritime industry. Confirmed panellists include Isabelle Ryckbost, Secretary General , ESPO; Nicolette van der Jagt, Director General, CLECAT; Isabel Moura Ramos, Executive Board Member, Port of Lisbon Authority
11:10 Coffee & Networking
11:30 Going Green: How can a Cruise Terminal be more sustainable
11:45 Opportunities, Risks & Threats regarding “Cold Ironing” in Ports - “The case of Heraklion Port”
Minas Papadakis, CEO, Heraklion Port Authority Cold ironing is the major way that ports can contribute to reducing shipping’s emissions. The administration of Heraklion Port has set the green transition as our top priority. The European program the “Electriport” was the result of our efforts towards a greener and sustainable port.
12:00 Shore-to-Ship Connection at Cruises and Cargo Terminals of the Lisbon Port
Armando Santos, Global Partner - Client Manager - Energy and Industry, Quadrante
11:30 Andreas Slotte, Head of Sustainable Development, Port of Helsinki
11.45 Miguel Matias, CEO, KEME Energy, Lda
12.00 Carbon Capture in the green transitionPorts as the entry to make CCUS/CCS & transport feasible
Ralph Guldberg Bjørndal, Senior Chief Project Manager, Ports, Marine & Coastal, Ramboll Ramboll is conducting a pre-feasibility study, outlining how carbon capture facilities can be implemented, and how port facilities shall be established to support the shipping of CO2 to the final storage destination. Various shipping options are considered, together with an assessment of how the expected CO2 Hub system might evolve.
12:30
Question & Answer Session
12:30
Question & Answer Session
12:45 Lunch & Networking
Duarte Morais Cabral, General Manager, Lisbon Cruise Port Session 1.1: Cruise Infrastructure Development Session 1.2: Carbon Neutral Ports14:10 Luca Imperiali di Francavilla, Global Product Manager, ABB Global Product Manager
The use of renewable energy sources at ports supports the Shore Connection when ships are connecting to it. We believe different shore connection applications will ultimately play a big role in decarbonizing the marine and ports industries. ABB will present to the audience a case example of Port of Toulon, one of ABB’s project deliveries, which is utilizing energy storage as part of shore connection.
14:25 What kind of options do ports have in their carbon neutrality journey?
Laurent Dupuis, VP Global Product Manager Ports & Maritime, Cavotec
In this presentation, Cavotec will compare the emissions reduction potential of different solutions for several ports and terminal types (cruise, ferries, container) to shed some light on how ports can create the best journey towards carbon neutrality.
14:40 Reliability and availability return of experience, from years of power conversion in Vessel Electrical Conversion systems, and Oil and Gas systems. Alex Lagarde. Conversion’s Energy Conversion Expert & Business Development Manager, GE Power
This presentation will explore reliability aspects of large power converter (range between 5MVA and 20MVA), based on more than 30 years of return of experience on critical electrical systems.
15:10 Questions & Answers
15:50 Faciliator: Antonis Michail, Technical Director, International Association of Ports and Harbors (IAPH)
Port Endeavor draws on real life examples from the 200+ strong IAPH World Ports Sustainability Program (WPSP) database of projects and best practices on how ports integrate the UN Sustainable Development Goals (UN SDGs) into their business models and operations. The aim of the game is to increase awareness among port management, staff and professionals working in port communities on how ports are already applying the UN Sustainable Development Goals to their business, to ultimately accelerate adoption of these measures in the port sector.
14:10 Bruno Vale, General Manager, YILPORT LISCONT
14:25 Energy Recovery & Storage for Ports –Where Energy Supply Meets Demand
Justin Hollingsworth, Business Development Manager, TMEIC
Energy storage systems (ESS) are a great asset when transitioning to renewable energy sources, and they also play a role in strengthening and managing demand on a local grid. This presentation will consider the benefits of ESS within a port and the use cases of distributed energy recovery and centralized energy storage.
14:40 - H2PORTS Project: A First Operational Experience
Using Hydrogen Powered Machinery at A Port Terminal
Aurelio Lazaro, R&D Engineer, Environmental Sustainability and Energy Transition, Fundación Valenciaport
This work will present the outcomes of the project that will include not only the feedback from this real operation experience but also the lessons learned during it development phase and the analysis of crosscutting aspects of the project such as legislation, replicability, market uptake and human awareness related with the use of hydrogen at ports.
15:10
15:50 Workshop facilitator: Christopher Wooldridge (Cardiff University - UK)
The workshop will investigate: What are the benefits and value of ESG approach, How do you initiate ESG into your port’s management framework, How do you identify key components, how does it enhance decision-making and what are the links with sustainability?
17:20- Day 1 Round up - Christopher Wooldridge
17:30 Conference Close
7-10PM CONFERENCE DINNER – HOSTED BY THE PORT OF LISBON
DAY TWO - Thursday 19th October 2023
08:30 Coffee and registration
09:00 Opening by Chairman/Moderator
Christopher Wooldridge, Science Coordinator EcoPorts EcoSLC, and Visiting Research Fellow, Cardiff University, UK
09:10 EXCLUSIVE LAUNCH - ESPO Environmental Report
Valter Selén, Senior Policy Advisor Sustainable Development, Cruise and Ferry Network, EcoPorts Coordinator - ESPO
09:30 EXCLUSIVE LAUNCH - ECO SLC Environmental Report
Christopher Wooldridge, Science Coordinator EcoPorts EcoSLC, and Visiting Research Fellow, Cardiff University, UK
09:50 Ms. Lamia Kerdjoudj, Secretary General, FEPORT
10:30 Coffee & Networking
10:50 Faciliator: Antonis Michail, Technical Director, International Association of Ports and Harbors (IAPH)
Port Endeavor draws on real life examples from the 200+ strong IAPH World Ports Sustainability Program (WPSP database of projects and best practices on how ports integrate the UN Sustainable Development Goals (UN SDGs) into their business models and operations. The aim of the exercise is to increase awareness among port management, staff and professionals working in port communities on how ports are already applying the UN Sustainable Development Goals to their business, to ultimately accelerate adoption of these measures in the port sector
10.50 Methanol as a Marine Fuel?
NABU study by Öko-Institut (Institute for Applied Ecology)
Malte Siegert, Head of Environmental Policy, Naturschutzbund Deutschland (NABU / Nature and Biodiversity Conservation Union)
NABU will present the major findings of the study “Methanol as a Marine Fuel” highlighting especially the environmental benefits of e-methanol.
11.05 EALING (European Flagship Action for Cold Ironing in Ports) Project
Rocío García Molina, Innovation & Port Cluster Development, Fundación Valenciaport
EALING (European Flagship Action for Cold Ironing in Ports) is a 42-month project, co-funded by the Connecting Europe Facility (CEF), which, in addition to carrying out all the technical, environmental, socio economic and financial studies necessary to prepare the works for the installation of shore-side electricity in 16 ports from 8 EU Member States, aims to work towards a harmonised and interoperable framework in the EU.
11:20
13:40 European Maritime Safety Agency
13:55 Generating hydrocarbon products from maritime waste: Ecoslops’ experience on profitable circular economy within ports.
Vincent Favier,CEO, Ecoslops
Ecoslops is an innovative cleantech that brings oil into circular economy. Our solutions have been developed to help ports manage their waste in a more efficient and environmentally friendly way. Our technology allows the recycling of oil residues from ships, as well as land-based hydrocarbon residues (yc used lub oil) that are often considered hazardous and difficult to dispose of
14:10 Target Zero: Zero Waste to Landfill at the Port of Dover Ben Crake, Environment Advisor, Port of Dover
14:40 Question & Answer Session
13:40 Ruben Eiras, Secretary-General, Fórum OceanoPortugal Blue Economy Cluster
13:55 Tiago Fernandes, Head of Logistics, Port of Lisbon Authority
14:10 Clean Ports, Clean Oceans: Improving Port Waste Management in the Philippines
Emeline Pluchon, WWF-Norway, Senior Advisor WWF will present the solutions conducted with the port and city authorities, such as the development of a materials recovery facility in the port of Cagayan de Oro, the collection and recycling of plastic waste in the ports of Manila North Port and Batangas, and will share how activities with other stakeholders in the port area have been developed collaboratively to ensure their sustainability.
14:40 Question & Answer Session
15:00 Coffee & Networking
Session 7: Digitalization and Technology
15:30 S5 Agency World
15:45 Moving on the Mersey – a localised approach for technology deployment to deliver emission reductions in leisure, freight, and passenger transport.
Richard Willis,Technical Director Port Operations & Technology, RoyalHaskoningDHV
Working together with local stakeholders across the maritime sector in the Liverpool City Region we studied where the use of river-centric transport modes blended with low-carbon technologies could transform both the under-used waterways in the city and reduce impact of air quality upon the residents.
16:00 Concrete use cases and experiences in utilising data analytics, AI and simulation to increase productivity, sustainability and safety
Miika Murremäki, Head of Digital Solutions, Kalmar
By leveraging analytics, AI, and simulation, cargo handling equipment experts can help ports to increase productivity, sustainability and safety. This can ultimately help ports to remain competitive in a rapidly changing industry. Kalmar will present on the main use cases
16:15 LSYM Port Simulators developed by the University of Valencia
Pablo Galán, Head of Business Development, e-nquest
Our mission is to accelerate the port industry’s transition to digitalized training. We develop training systems with simulators, capable of reproducing the working environment of real machinery used at the terminals like quay cranes, mobile harbor cranes and vehicles like heavy forklifts or reach stackers among others
16:30 Question & Answer Session
16:50 Conference Wrap up by Conference Chairman/Moderator – Christopher Wooldridge
17:00 Conference Close
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Media Partners: PORTSTRATEGY
Cochin
Deendayal (Kandla) Two new terminals – Tuna TekraUp to 2.19 million TEU
Hazira Adani Hazira Container Terminal (APSEZ)
Jawaharlal Nehru (Nhava Sheva)
operator1,200,000Between 6-19 multipurpose berths under consideration
terminal, operational 2018
capacity of 4.8 million TEU
upgrades to 2.8 million TEU
joint-ventureContainer capacity to be raised to 1.8 million TEU
The Indian Government finally appears to be making progress in its long-stated desire to privatise the Container Corporation of India (Concor).
In January 2023, the Government was expected to announce a request for Expressions of Interest in the privatisation of Concor. This news followed a decision in November 2019 in which the Cabinet Office approved a sale of 30.8 per cent of the company and management control from the government’s 54.8 per cent equity. A stake of 24 per cent was due to be retained, although without any veto powers.
The company has continued to grow its income from operations by 6.2 per cent per annum over the past 10 years, while total income has also risen over this period
by 5.8 per cent per annum. Net profit though, has been less progressive, seeing just 1.4 per cent per annum during the same 10 years, but the company does continue to make a profit. By comparison, total traffic handled by Concor increased by 5.4 per cent per annum between 2012-13 and 2021-22.
There has been strong speculation that there will be a number of interested parties in gaining a share in Concor. This includes AP Moller Maersk and while Maersk India made no public comment, the following was subsequently made available by a spokesperson: “A.P. Moller-Maersk is in the process of transforming itself into an integrated container logistics and shipping company, and this means that we are continuously looking at how we can effectively connect and simplify our customers’ supply chains.”
Local reports, made in April 2023, suggest that expressions of interest will be officially requested during Q2, 2023, which ties in with similar plans involving the Shipping Corporation of India (SCI). As it is now over three years since the privatisation of Concor was first confirmed, any traction is going to be warmly welcomed, if true.
Concor has been engaged in the transportation and handling of containers since it was incorporated in March 1998 when it took control of seven inland container depots from Indian Railways. The company has since grown its service offering, which now includes 61 terminals for domestic and international cargo, with additional supporting logistics activities, subsidiaries in the air cargo business and possessing 1359 employees as of March 2022.
Mexico’s containerports are moving forward positively but can do even better with greater investment in connecting road and rail infrastructure. Rob Ward reports
8 With better access to and from its ports –more investment in supporting infrastructure – Mexico’s port industry can achieve much more
For a country the size of Mexico – 135 million people spread across 1.96 million sq km – which produces a variety of products for export, you would expect the port and general transport infrastructure to be strong and well developed in the 13th biggest country in the world…. And you would be wrong!
And now that its biggest trade partner, the United States, is going full throttle towards more near-shoring – creating closer to hand alternatives to reduce dependency on China and the Far East – Mexico is in a good position (and indeed location) to amplify considerably its share of any US trade… if only it can improve its, often, outmoded and moribund infrastructure.
In 2022 Mexican ports handled 8,297,950TEU (up 5.7 per cent from the 7,847,881TEU handled in 2021) according to the National Mexican Port Authority. Of those, some six million TEU were moved via the Pacific ports (up 8.5 per cent and including Manzanillo, Lazaro Cardenas and Ensenada) and just 2.3 million TEU via the Caribbean/Mexican Gulf ports (down 0.9 per cent overall in 2022, where Veracruz and Altamira lead the way).
The overall total (close to 8.3 million TEU, is 16.9 per cent more than the 7.1 million TEU handled during 2019, the last “normal” year before Covid, and that figure, in turn, was 1.7 per cent higher than 2018, which registered 6.98 million TEU. In terms of just the Pacific ports we can compare six million TEU with 4.8 million TEU in 2018 which is a hefty 25 per cent jump, while the Caribbean movement in 2022 went up a measly 1.83 per cent to 2.23 million TEU from 2.19 million TEU in 2018, clearly showing how Pacific based ports are growing faster.
Mexico, the US and Canada signed up to the US-MexicoCanada Agreement (USMCA) and it came into force on July 1, 2020, replacing the North America Free Trade Agreement (NAFTA) and the US Department of Commerce called it: “A
21st-century, high standard trade agreement supporting mutually beneficial trade resulting in freer markets, fairer trade and more robust economic growth in North America.” Some call it the “New NAFTA”.
Moreover, the new agreement helps reduce the need for “outsourcing” to cheap labour destinations in the Far East, and especially to China, but transport infrastructure must be improved to aid this trend if it is to succeed long term.
“Mexico today spends only one per cent of its GDP on infrastructure when comparable economies are spending up to five per cent but the government doesn’t seem to understand how bad that is for the economy,” says one Lazaro Cardenas based shipping agent, who did not wish to be named. “This statistic has to change,” he elaborates, “if we are to capitalise on the fact that many US importers either no longer wish to do business with China, or at least desire to do less, to have more sourcing options. And that’s where Mexico fills the void, if only we can improve our transport infrastructure.
“Our government is aware of the problems but it is not acting quickly enough in my view. Clearly the US does not wish to depend so much on China, so there is a great opportunity here for Mexico. We must not blow it.”
The veteran shipping agent says that the majority of the problems are not so much portside but more in terms of the road connections with the port, which are often congested and in a dilapidated state. The key box port of Manzanillo is some 12 hours (525 miles) by truck from Mexico City (urban population of 22 million) which is located 7250 feet above sea level in the high plateau of central Mexico.
A couple of months ago an influential article in the New York Times highlighted the growing trend of “near-shoring” as
American multinational companies – after decades of espousing the economic merits of production in Chinadecided to “recalibrate the risks of relying on Chinese factories to make their goods”. It was the rising ocean freight rates during 2021 and early 2022 and the “crazy congestion at Chinese ports” that lit the fuse towards major changes in the logistics supply chain but the momentum has continued even as freight rates have fallen back.
Mexico is also a member of the 21 member Asia-Pacific Economic Co-operation group (APEC) along with Chile, Peru, the US, Canada, Hong Kong, China, South Korea, Australia, China and others, and this might be leading to a swing to even more containers moving via its three main Pacific ports, which will need capacity increases in the near future to help prevent bottlenecks.
To some extent the “New NAFTA” and the growth of APEC can work together to Mexico’s advantage. Some industries, such as apparel, can import cloth and raw materials from China and then use the cheap labour in Mexico before reexporting the finished products to the US. Walmart (headquartered in Arkansas) has been developing this system over the past two years. Tesla has also decided to build a giga factory in Nuevo Leon, which will benefit Mexico’s ports in several ways.
Several new US backed industrial parks are also in the offing. US Census data shows that since 2019 American imports of Mexican goods have increased by 25 per cent and that during the first 10 months of 2022 Mexico exported US$382 billion of goods, up 20 per cent over the 2021 figure.
Despite the “mostly strong” results from the country’s Top Five ports for boxes, many believe that Mexico is still, “Very much under-containerised” and that the volumes moved via boxes can further penetrate breakbulk and the use of sea freight, rather than trucks, can be improved if the political will was there.
There are also questions of “pollution and road congestion” to be answered as a high percentage of cargoes destined to/from the US transit via the highways and Mexico cargo analysts say that much of this could be transferred to the sea if the right incentives were in place.
One port operator which has grasped the nettle is Contecon Manzanillo which is located in the port handling the most containers in Mexico. 2022 saw Manzanillo handle 3.474 million TEU, up three per cent on the previous year. Stevedoring Services of America (SSA) also operates a major container terminal in Manzanillo.
Contecon, the International Container Terminal Services Inc (ICTSI) owned operator, is currently in the process of expanding its capacity from 1.2 million TEU up to two million TEU per annum, as it implements a US$230 million investment programme over five years.
Contecon’s expansion will see it build 400 more metres of extra berth – taking it up to 1.2km in length – and add two more Super post-Panamax Ship to Shore Gantry Cranes (SSGCs, taking the total up to 10) and six more RTGs (taking the fleet to 13).
“Manzanillo is the most important node of international logistics in the Pacific Coast of Mexico and it will continue to be so,” says Jose Antonio Contreras, CEO, Contecon. “We are convinced that this expansion, as well as the construction of land access to the northern zone of the terminal, will consolidate and strengthen the port’s competitive position.”
He adds that the expansion will create 600 new direct jobs to the existing 1200 and 11,600 indirect jobs.
Contecon’s rival in Manzanillo, SSA Mexico, will still be the
largest box facility in the port, and indeed in all Mexico, with 14 Super post-Panamax SSGCs and four post-Panamax units, along with 52 RTGs.
Hutchison Ports also has a multi-purpose terminal in Manzanillo, TIMSA, but handles far fewer boxes there than its rivals.
Bernardo Varela, the Operations manager for Mexican shipping agency Transpac SA, tells Port Strategy that better infrastructure would be welcomed in the country especially in Manzanillo where the box terminals are hemmed in by the growing city.
“Moving trucks through the city is not ideal,” says Varela, who is based in Mexico City, “and many of the roads in and out are in need of repair. We definitely need improved road and rail networks, especially here on the Pacific Coast where the Pacific Alliance is improving trade with South America and China, and the rest of Asia.”
8 Indicative of the professionalism of the terminal operating sector, Contecon Manzanillo (CMSA) coordinated with CMA CGM and Grupo México the operation of the first block train for Walmart de Mexico with this development following hot on the heels of CMSA, recently obtaining certification as the country’s first carbon-neutral port
Also flourishing on the Pacific coast is the port of Lazaro Cardenas, which handled just over two million TEU in 2022 and registered the biggest rise, 20.2 per cent over 2021, of all the major ports in Mexico. It should be pointed out in this respect, however, that 51 per cent of Lazaro Cardenas’s volume in 2022 was transshipment plus, interestingly, in the first quarter of 2023 volume at the port fell 20 per cent compared to the same period in 2022. Manzanillo also experienced a drop but only two per cent.
The main box terminal in Lazaro Cardenas is operated by Hutchison Ports LCT, with a two million TEU per annum capacity. APM Terminals is also active in the port, operating a smaller 1.2 million TEU/yr capacity facility.
Ensenada, in Baja California, and the most northerly Mexican port, also did well last year, with a throughput of 436,019TEU, a healthy 10.4 per cent rise over the 394,911TEU of 2021, and some 40 per cent higher than the 272,587 TEU of 2019, the last full year before Covid hit. Hutchison is also the main operator here.
Back in 2019 the difference between the Pacific volumes and the Caribbean/Gulf volumes was not so stark, with the former responsible for 4.8 million TEU and the latter for 2.2 million TEU, so just under half, compared to the almost 3:1 ratio of today.
Clearly the US does not wish to depend so much on China, so there is a great opportunity here for Mexico. We must not blow it!
Russia has turned to Plan B to secure dry freight shipping capacity – the enlargement of its merchant fleet through domestic construction and acquisition. Oleksandr Gavrylyuk reports
In late March this year, Lotos shipyard, based near the Russian Volga River’s delta/Caspian Sea port of Astrakhan, started cutting metal for a multipurpose (container/dry bulk) river-sea going ship of the 00108 project, developed by Nizhny Novgorod-based Vympel design office. It is planned to lay its keel in May this year and deliver the vessel in 2024.
Both Lotos and Vympel are parts of the state-owned United Shipbuilding Corporation (OSK to give it its Russian acronym), Russia’s largest shipbuilder comprising around 40 enterprises active in the sector scattered all over the country. In December last year, the State Transport Leasing Company (GTLK), another government-controlled giant, contracted OSK for the construction of four ships of the 00108 project with cost estimated at RUB 1.74 billion (about US$22.5 million) each.
The 141 meter-long and 16.9-meter-wide vessels will be the largest ones capable of navigating down the Volga River (with their individual deadweight of 5000 tonnes and draught of 3.6 meters) into the Caspian Sea.
The vessel design features two cargo holds with an aggregate capacity of 12,000 cubic meters which enables the carriage of 429TEU (when sailing along the river) and up to 531TEU (in the sea), as well as grain, timber, sawn wood, general and oversized cargoes.
be able to supply its export commodities to increasingly distant (mainly Asian) markets via the INSTC, Northern Sea Route (Russia’s part of the Northeast Passage) and other routes and corridors, the nation needs to have a powerful and modern merchant marine.
Viktor Yevtukhov, Russia’s Deputy Minister of Industry and Trade, has assessed the country’s demand for new commercial ships at around 1500 by 2035. From 2023 to 2027, Moscow is going to earmark RUB 231 billion (around US$2.96 billion) for the building of 260 new sea and river vessels, including 119 cargo, 73 passenger, 27 dredging, 10 fishing and five heavy-tonnage ships, as well as one floating dock, five tugs and 20 barges.
8 Lotos Shipyard is starting work on the construction of the first of a series of new design container/multipurpose vessels that will operate between Russian inland ports along and Iran’s Caspian Sea ports
In February this year, the Kremlin approved a preferential leasing programme for the country’s shipbuilding industry. Given the shortage of Russia’s merchant fleet in the Caspian basin, OSK is, according to Aleksey Rakhmanov, DirectorGeneral, OSK, expecting to construct up to 21 vessels of the 00108 project by 2027.
“It may take us around a year to build the first ship, but then we will be able to deliver a new hull every three or four months,” he believes. Taking into account Lotos’s favourable geographical location and the privileges it enjoys as an anchor resident of the Astrakhan Special Economic Zone, it is likely to receive OSK’s new orders.
Coupled with the deepening of the Volga-Caspian fairway, the planned construction of the new vessels will allow Moscow to launch a regular shipping line through the International North-South Transport Corridor (INSTC). Intended to connect Saint Petersburg on the country’s Baltic coast with Iran and India via a network of Russia’s internal waterways and the Caspian Sea, INSTC has significantly grown in importance since the Kremlin’s invasion of Ukraine and its increasing international isolation.
Following the application of western economic sanctions and withdrawal of global shipping operators from Russia last year, Moscow declared its ‘great turn’ to the East. However, to
In the opinion of local observers, domestic shipbuilders are likely to experience big difficulties, when trying to cope with this ambitious task. Already now, they are overloaded with orders – there were 291 hulls under construction at the Russian yards as of December 2022, according to GTLK’s data. This year alone, they are supposed to deliver 70 vessels, up 27 per cent on 2022.
Furthermore, sourcing foreign-made components, ship machinery and equipment has become an increasingly serious problem for the sanction-hit country. As a result, the Kremlin is reportedly also working out a dedicated programme for the acquisition of 85 used and partially built ships of various types (including 60 bulkers, 15 tankers, several container carriers and multipurpose vessels) by 2034.
With RUB 150 billion to be loaned by commercial banks for purchasing these vessels, Moscow will allegedly be prepared to allocate RUB 70 billion to subsidise the loan rates under the scheme.
The prevailing political and economic realities have prompted Russia to start rejuvenating its aging fleet. As with so many things associated with Russia, however, there is no certainty that its ambitions in this arena will be matched by the ultimate reality.
With sanctions resulting in a severe depletion of dry freight liner operators serving Russia it has embarked upon a large-scale domestic shipbuilding programme
8 Extreme weather events and the decarbonisation agenda strengthen the case for resilience and adaptation planning for ports
Situated in current and future hazard areas, maritime infrastructure is exposed to increasing climate-related risks. Owners and operators (across ports, harbours, marinas and shipyards) are exposed to a unique set of challenges and impacts due to their proximity to the coast and waterways. As the current and potential future impacts from climate become better understood, many maritime sector organisations are starting to take their first steps toward resilience and adaptation planning.
There is an increasing societal emphasis being placed on the concept of resilience, particularly in addressing the dual challenges of climate risk in terms of the transition to a low
carbon economy and adapting to acute and chronic physical threats such as sea level rise.
While emphasis on decarbonisation has spurred innovation and investment into electrification, renewables and alternative fuels, the latest IPCC AR6 report and the outcomes of the negotiations at the recent COP27 indicate it is likely now a shortening window of opportunity for organisations to meaningfully address carbon dioxide levels before significant physical risks materialise. Reporting and regulatory requirements around climate risk financial disclosure are also emerging, with TCFD reforms being implemented by national governments and stock exchanges across many jurisdictions.
Pressure from the investment community, as well as upcoming mandatory disclosures, have spurred the evaluation of risk from all sectors. Despite these considerable drivers of change, the requirement for assessing climate resilience is currently discretionary. Organisations’ current actions are primarily driven by investor and corporate Environmental, Social, Governance (ESG) aspirations, though this is beginning to shift to address internal risk management processes and best practices.
As shown in the figure above, this will play out in the form of acute impacts such as storms, flash floods, and winter storms but also much more gradual climate changes. These include sea level rise, temperature increases, drought, erosion, increased sedimentation (leading to more frequent dredging) and changes to wind dynamics potentially affecting maritime navigation. Many of these hazards are already being felt by ports and harbours around the globe –2005’s Hurricane Katrina closed the Ports of New Orleans, Mobile and South Louisiana for up for four months; 2017’s Hurricane Harvey interrupted the Port of Houston’s operations for over a week. More recently, Atlantic Canada
In BMT’s experience, the resilience planning process is an evidence-based approach, shown to save owners and operators costs and downtime in the future. Some elements that contribute to this work include.
5 A multitude of climate-trend data available can be downscaled to inform risk assessment and planning, with most of these data sets able to be used free of charge.
5 In many jurisdictions, port and maritime facilities are included in more detailed coastal hazard studies and investigations undertaken by federal and provincial agencies with access to the outputs of modelling and mapping possible.
was impacted by Hurricane Fiona in early 2022, suspending service for several ports and disrupting power to huge areas.
The figure above identifies some of the direct and downstream impacts that may affect maritime systems.
8 Jaret Fattori is currently a Senior Consultant with BMT, using his background in environmental and civil engineering, as well as his expertise in climate change science, to advise clients on climate resiliency, carbon emission reduction, and sustainability. His technical background has helped him consult on climate change risk in conjunction with governments, businesses and non-profits. Jaret harnesses the efforts of multi-disciplinary teams in coastal engineering, infrastructure and supply networks and to provide robust climate risk analysis.
5 There is existing and emerging guidance available for the sector about climate risk and resilience from organisations such as the World Association for Waterborne Transportation Infrastructure (PIANC1) and other sources such as Canada’s National Adaptation Strategy.
5 There is generally a robust understanding of risks and impacts from existing weather events at maritime facilities as well as current management tools and measures (such as disaster management plans, asset management systems, etc.) in place that can be modified to address the additional risk from climate change.
However, bespoke site-based assessments remain a critical tool for owners and operators to understand and discuss the consequence of these trends at the local scale. This level of detail becomes vital for organisations to accurately assess the potential implications of climate on business operations (including costs), their organisational tolerance to these risks over time and priorities for action.
Investment in the analysis can inform the aspects and areas of existing vulnerability to climate change that need priority treatment and guide the siting and design of future development and expansion.
In our experience, the resilience planning process is an evidence-based approach, shown to save owners and operators costs and downtime
More than 70 years on from its foundation, safety still comes first, says Richard Steele, CEO, ICHCA. Felicity Landon talks one on one
Technologies evolve, operations become smarter, new cargoes and equipment emerge, new risks appear. How does the International Cargo Handling Coordination Association (ICHCA), set up in 1952, fit into the picture?
Richard Steele, who took over as CEO in 2021, says the fundamentals haven’t changed – but he is driving a renewed focus on the safety aspect of the organisation’s work.
“ICHCA has always been about cargo handling and coordination – it has always had an interest in doing that smartly, efficiently and safely,” he says. “It has also had an interest in good environmental behaviour. But when I came into the role, it seemed that there was only so much you can do on any one of those topics and it is really difficult to deliver successfully with a relatively small organisation. It seemed to me important to bring the focus back to the key element –which is health & safety.”
Ensuring that people go to work and return home at the end of the day in the same condition is the passion of ICHCA’s technical panel and members, says Steele. “So the focus is very much on ICHCA as THE safety organisation for cargo handling and coordination.”
The smart and efficient elements of cargo handling are still there, “but the plan is not to dilute the message – it is about getting at the core subject of safety of operations”.
Historically there has been a tendency to see safety as a separate topic but Steele is adamant: “Safe operations are well-managed operations. It is not ‘here’s safety’ and ‘here are good operations’. It is the way you work. If you are in control of safety, you are in control of the efficiency, organisation, speed, reliability and sustainability of your operation.”
In March (2023), ICHCA was one of five organisations to sign an MoU to cooperate on crucial safety issues by coordinating data, research and best practices across the international movement of cargo. Collaboration with other organisations has always been an important part of ICHCA’s work and this continues, says Steele.
Recently this has included a project looking into the safety of alternative/future fuels. “This is an opportunity to understand what the risks and challenges are in the safety of handling ammonia and hydrogen, and in cold ironing, etc. IAPH has done a lot of work in that area, so there is no sense in reinventing that. So, it is very much about working with other stakeholders.”
Similarly, ICHCA is one of several organisations, led by the Cargo Incident Notification System Network (CINS), that produced new guidelines for the safe transport of lithium-ion batteries in containers; these cover the properties of the batteries and their potential to explode, initiate fires and emit toxic gases, and provide suggestions for identifying risks to help ensure a safer supply chain.
“There is an aspiration to share knowledge,” says Steele. “For example, the CINS database has a lot of information about incidents in maritime transport. We should be datadriven, focused on where we can get the most improvement, reduce the most significant risks. Working with others, we can build up a clear picture of where the major risks are
throughout the world of cargo handling. It is my aspiration that we are able to explore the data that is held in all sorts of locations and find ways to share that, always being focused on learning.”
He believes that by identifying where, how, with which cargoes and in which circumstances the most common incidents occur, the data can be used in a proactive, productive way. “This is not about ‘name and shame’ – we are not talking about blame or apportioning responsibility, but we want to learn lessons fast and make sure those lessons lead to continuous improvement.
“This is an ongoing process; it is about using the knowledge, expertise and success of the best to raise the standards throughout the industry.”
Another recent publication is ICHCA’s new guide for shipping ammonium nitrate, outlining best practice and guidance for fire prevention and mitigation.
Steele says that port operators must never lose focus on the core stuff – and that starts with the wearing of hard hats,
8 Working at height and incidents with moving plant, equipment and cargo remain the primary causes of accidents and while automation has the potential to reduce these, it comes with its own challenges
the not-wearing of flipflops. There are still places around the world where standards are not as strong as the best, he says diplomatically. “There is room for improvement.”
However, while PPE is one of the very visible things – “you get your MPs visiting your port and wearing a hard hat” – Steele describes PPE as ‘the lowest level of hierarchy of controls’. He wants to see the thought processes around safety pushed back up to “the top of the hierarchy” – i.e., can you eliminate this risk altogether, or can you control it? “Eventually, you come down to the least reliable method, which is telling people ‘it is slippery out there, be careful’. That is not as good as making sure it is not slippery out there in the first place – giving people a safe, reasonably practical workplace.”
Automation can eliminate some risks but also raises other issues, he says. “Still the most significant consequence for people, if we get it wrong, is people coming into contact with moving cargo, plant and equipment, whether that is working at height or working on/near the water. With the right kind of automation, you can reduce those risks to people. But automation is also challenging because you can create other potential risks. If you have someone operating a crane remotely from a comfortable operating station, you have to do a number of things to ensure they can respond and control the crane in a way that is safe for the vessels or others around it.”
As a recognised NGO at the International Maritime Organization, ICHCA contributes to the development of new regulations and updating of old ones. Ongoing topics range from the transport of lithium-ion batteries, as well as charcoal, to the safety of lashing and the prevention of the unintended transport of pests.
ICHCA also collaborates with the TT Club to run the Innovation in Safety Awards. “This is a really important part of the work we are doing; it is saying there are opportunities out there to learn and improve. We don’t have to keep doing things the way we have always done them; if we do, we will get the same results we always got. This is about thinking of new ways of using existing technology or bringing new technology in to achieve very positive outcomes.”
An example is the use of AI to review video footage from around the terminal and identify behaviours that could lead
to a risk of injury. “You don’t have to have someone sitting watching hours of CCTV footage. AI will pick up a failure to stop, speeding, crossing in unsafe areas or proximity to cargoes when they are being raised or lowered. These opportunities are out there, and we are trying to bring these innovative ideas to the industry.”
In summary, Steele compares safety to riding a bicycle. “If you stop peddling, you fall off. Always focus on basic safety. It is possible to lose focus if you are not really proactive. We absolutely need to continue the messaging about the hierarchy of controls. You are not going to succeed if all you do is tell people to be careful. You have to put in place the controls and management of those risks.”
8 ICHCA is one of several organisations, led by the Cargo Incident Notification System Network (CINS), that recently introduced new guidelines for the safe transport of lithium-ion batteries in containers
ICHCA’s membership includes the International Transport Workers Federation (ITF) and other workforce representative organisations. “Critical to any of the success is getting the voice and engagement of the people who are actually doing the work and potentially exposed to the risks,” says Steele.
“You can bring the best bit of safety tech into the environment but if you don’t create engagement, interest, recognition and value
among the people who are going to be using it in that space, you are going to fail.”
A key element about safety, he says, is aligning ‘workers imagined’ by the head office or the person writing down pristine safety procedures, with the ‘real’ work as done on the quayside in the middle of the night, in the middle of a gale, when everyone is rushing to get the job done and understanding what decisions get made in those circumstances.
For example, says Steele: “It doesn’t matter how good your tech is for your automation, it has to work with the people and situations and circumstances and be introduced in ways that are inclusive of processes and people.”
There are ‘heartfelt concerns’ about the use of automation relating to the security of employment, he adds. “You have to have genuine conversations with the people in the workplace if you want that process to work.”
Working with others, we can build up a clear picture of where the major risks are throughout the world of cargo handling
‘‘8 Richard Steele, CEO, ICHCA
Nico De Cauwer, newly appointed Secretary General of the International Port Community Systems Association (IPCSA), discusses the IPSCA agenda with Felicity Landon
Nico De Cauwer has been confirmed as the new Secretary General of the International Port Community Systems Association (IPCSA). A long-time active representative of IPCSA, from 1 May he took up his new role which he will combine with his position as Business Architect Port Community Solutions at the Port of Antwerp-Bruges.
There are inevitably mixed feelings, as he will be stepping into a role held by Richard Morton, who passed away in 2022 after heading up IPCSA for 11 years from its founding as a European organisation.
“I want to continue Richard’s work and build on his amazing achievements – that is a big driver for me,” says De Cauwer. “There is already quite a strong network around me based on my previous experience, also thanks to Richard who introduced me to many people through IPCSA.”
IPCSA’s membership includes sea and air Port Community System (PCS) operators, sea and air port authorities and Single Window operators. The association is recognised for its expertise on the electronic exchange of information across borders and through the supply chain.
Naturally, there is an ongoing drive at IPCSA to champion PCSs and Single Windows – how they work, how they bring efficiency to cargo flows, how they can be developed and improved.
De Cauwer’s priorities? Expanding IPCSA’s membership, building on its reputation as an expert group, strengthening international relationships and ensuring effective collaboration with other organisations.
“IPCSA has always focused on the sharing of experience and expertise, with a strongly collaborative approach. We want to champion the development of practical, concrete collaboration projects with others in the industry,” he says.
De Cauwer has 30 years of experience in the port and maritime industry. He joined the digitalisation team of the Port of Antwerp in 1994 and in 2011 became Senior Business Developer at the Antwerp PCS. Since 2017 he has been IPCSA’s representative for Europe and North America and he has also been leading its Standards and Technology domain. Last year he took over as Chairman of the PROTECT message design group, which develops and supports the electronic reporting required by authorities for vessels entering or leaving a port or port area. PROTECT was integrated into IPCSA in 2021.
“Coming from the port environment, I understand that ports are all going for decarbonisation,” he says. “But that is really related to port operations and less towards PCSs. The discussion I want to initiate is where are PCSs in terms of relevance towards decarbonisation?
“PCSs provide a digital process where otherwise information would be exchanged on paper, with people
driving around to get the paperwork from A to B. There is the efficiency side, too – an effective PCS avoids the problem of lorries queueing, with exhaust fumes building up, because of inefficiencies and lack of visibility on container clearance, etc. All of this means you are working towards a better environment – but we never say it! We need to broadcast more specifically and confidently what PCSs can do for decarbonisation.”
In ports where PCSs are established and working, they can often be taken for granted, says De Cauwer. “It’s a case of ‘OK, there’s the PCS, we will work through that’ – I would like to find a way to measure that gain for the environment and efficiency.”
IPCSA is also focusing beyond the exchange of data within individual PCSs, to port efficiency on a global scale. “At a port level, we see the exchange of data and information within the port environment. But the exchange of information can be within the same PCS or with another PCS, or from carrier or forwarder in PCS ‘A’ to PCS ‘B’. On a global scale, you can gain efficiency through the exchange of data and information between platforms,” he says.
This is the philosophy behind IPCSA’s Network of Trusted Networks (NoTN), a pilot project that has been evolving over several years, to exchange data between its members.
The comparison with TradeLens, now abandoned as a project, is inevitable but De Cauwer says: “TradeLens didn’t work out. But what’s important is that there is a difference between the two in terms of business model and data ownership. The NoTN model means that data ownership remains with the party that provides the information to the platform. Also, NoTN is based on the exchange of information between PCSs as trusted, neutral third parties.”
As he steps into the Secretary General role, De Cauwer says an important focus will be what more the association can do for its members. “But also, it is collaboration with other organisations. For me, there are three main challenges: port efficiency through data sharing, decarbonisation and collaboration.”
aboration.”
Fork-lift trucks (FLTs) are an integral part of operations in ports, terminals and throughout the logistics supply-chain where cargo needs to be handled –they are recognized as a beneficial workhorse. The manufacture of these vitally-important machines is facing the same challenge as diverse other areas of cargo processing – i.e. to be greener, reflecting the latest user requirements. It is well-summarised by Hyster: “Zero-emission container handling equipment is emerging as a real option to help terminal operators reduce their carbon footprint – without sacrificing
performance.” Development work proceeds apace as reflected below in the company-by-company review. Electric power can reduce fuel and maintenance costs by generating greater energy efficiencies as well as lower lifetime costs. With longer operating times and lower maintenance than traditional combustion power, alternative fuel options are becoming more appealing. Charging times are being reduced and overall the market penetration of clean fuel FLTs is steadily increasing. The latest innovations by individual manufacturers and r&d work for the future are highlighted below.
8 Taylor Machine Works: Taylor Machine Works, Inc has launched a new zero emissions, battery electric forklift truck. With a 36,000lb (18 tonne) lifting capacity, this new unit is expected to be used across multiple industries, including port and logistics operations. Battery electric power has been utilised by Taylor since it showcased the first two electric container handlers in October 2019 at the Port of Los Angeles. The company’s new ZH-360L machine is powered by Permanent Magnet Synchronous Electric Motors and American manufactured NMC batteries. It also features an advanced E-Axle that utilises regenerative braking to assist with battery recharge during operations. Consequently, it can operate uninterrupted through a typical eight-hour shift. Recharge time is also optimised to only 1.5 hours, meaning that by charging at lunch and
during breaks, the run time can, according to Taylor, “approach the same multi-shift work cycles as any internal combustion counterpart.” The operator’s cab of the ZH-360L offers various features to support the driver’s comfort and protection. The all-steel Taylor DREAM cab can be outfitted with Poly-Armor protective glass, which can withstand up to six times more impact energy before shattering than standard tempered glass. Plus, the Clear-VU operator station with Comfort Steer is also available, which removes the traditional steering wheel and dash, to open visibility from floor to ceiling. Taylor has three additional models of zero emission forklift trucks in its portfolio. The ZLC Series of loaded container handlers is already available in a second-generation model and units are in use throughout US ports.
8 Hyster: According to Hyster, the move toward clean power makes “more sense than ever,” although the company does point out that before transitioning away from tried-and-trusted internal combustion engines, it is important to consider all the variables that impact the viability of equipment electrification. The Hyster® J10-18XD forklift truck is powered by 350-volt lithium-ion battery packs. Hyster chose to integrate lithium-ion power because compared to 120-volt lead acid batteries, the 350-volt lithium-ion battery is more energy efficient. This is because lithium-ion batteries produce higher performance throughout the charge cycle and have a longer life cycle, helping to reduce total cost of ownership, while zero maintenance and faster charging times ensure further savings and more operating time. Indeed, the J10-18XD model gains one hour of working for every 11 minutes of charging. Hyster further maintains that lithium-ion batteries
8 Doosan: South Korean forklift truck manufacturer, Doosan Industrial Vehicle (DIV) has signed a new agreement with German industrial automation specialist, Kollmorgen. The aim of the venture is to “innovate and build efficient, sustainable and reliable custom-made automated guided vehicles that exceed customers’ future requirements.” As part of its approach in this sector, DIV adopts a belief that “more comfortable drivers will always be more productive” and this is reflected in its equipment ergonomics. Doosan has an existing product range of over 179 vehicles, covering electric and pneumatic forklifts, reach trucks, stackers and various other warehouse vehicles, with the battery charging system on Doosan’s forklift models, including the heavyduty four-wheeled B45X-7 units designed to be simple and swift to enable multi-shift operation and longevity. Chankyo Chung, Vice President, Doosan Industrial Vehicle, contends: “Our vehicles are a preferred choice among many of the world’s blue-chip companies. That requires us to always be
8 Kalmar: The latest range of Kalmar electric forklift trucks, ECG50-90, offers what the company says is the “best of both worlds” with the performance of a powerful diesel truck but without the emissions, noise and vibration. Moreover, from an investment perspective, Kalmar explains that due to high operational efficiency, low maintenance costs and long service life each unit will pay for itself in just two years. For example, the Kalmar ECG50–90 offers optimum battery usage for up to 15 per cent longer operational time than previous-generation trucks and compared to a diesel truck the energy saving alone is 75 per cent less with an electric truck. The initial 50-hour service of previous generation machines has also been replaced by a 500-hour service interval, to further increase cost efficiencies. The other notable factor with these new trucks is that in addition to traditional lead-acid batteries, the ECG50-90 utilises Li-ion
8 Toyota: “All-electric, all-Toyota.” That’s the message from this major manufacturer. The company offers what it describes as a “true alternative to engine powered” trucks, which includes a choice of battery technologies and a floating cabin. Toyota’s new Traigo80 range has replaced the existing Traigo HT units and provides models of up to eight-tonnes, with a 900mm load centre. The new Traigo80 electric forklift truck also offers two other benefits, namely, a System of Active Stability which controls truck stability to increase safety and productivity during load handling and, importantly, quick battery access via a side panel that fully opens without the need for tools for immediate access and charging.
provide an electric option capable of delivering “diesel-like” performance that modern terminal operations need, representing a major step forward from traditional lead-acid batteries. For example, the 350-volt lithium-ion batteries on the Hyster J230-360XD and J360XD36-48 units (J10-18XD in EMEA) outlive the 120-volt lead-acid batteries. Moving forward, Hyster is working on additional power sources, with two options of electric laden container handlers to further enhance meeting terminal needs. These include employing a large lithium-ion battery, with choice between conventional charging or hydrogen fuel cells in combination with lithium-ion batteries, providing full-day operations with no re-charge. As Hyster is showing, advanced electric options like lithium-ion batteries and hydrogen fuel cells can provide longer-term value, help reduce emissions and maintenance costs while maximising performance and efficiency.
8 Doosan’s electric FLT is designed to be simple and swift to enable multi-shift operation and longevity
at the forefront of technology and deliver reliable products to the highest of standards,” before adding in relation to the new deal: “We selected Kollmorgen for that exact reason –being a partner that invests heavily in R&D with a proven track record of solid automation solutions.”
8 Kalmar said it offers the “best of both worlds”performance without emissions
batteries which can last for 2400-4000 charging cycles, do not need to be kept in ventilated spaces, require minimal maintenance and can be fully charged in 100 minutes on the basis of one per cent charge being gained per minute.
8 There has been relatively strong take-up of shore power systems for vessels operating fixed itineraries –ferries and cruise vessels – but more needs to be done to incentivise wider adoption
Shore power system supply is a growth business spurred on by legislative requirements and standards creating a structured framework for system installation. But it is a question of how much, how soon? The main take-up of such systems to-date has been in Europe, Scandinavia and North America with Asia also recently accounting for more installations. There still remains, however, an awful long way to go to achieve dense system penetration. The financing of installations remains an influential
consideration – the case for public sector support on a cost-benefit basis is strong in order to accelerate system usage. Outside of the theatre of fixed route shipping – ferries and cruise ships notably – there is still the problem of system take-up by vessel owners. This is an area that needs further consideration in order to keep the bandwagon of shore power system supply rolling and to increase the contribution it can make to decarbonisation.
8 ABB: The company delivers shore connection and charging solutions for diverse vessel types. ABB’s onshore offering comprises transformers and frequency converters to synchronise shore¬side power, voltage and frequency with those of a vessel’s onboard system. Connecting cables and solutions available for container terminals and city harbours, with power ratings to meet high-end requirements. System configuration runs from the substation receiving electricity from the local network to the power outlet at the dock. All major components can be accommodated within compact buildings or containers designed to blend into the surrounding environment. ABB delivered the world’s first shore power supply system to the Swedish port of Gothenburg in 2000 and its project portfolio now includes installations in Scandinavia, Europe, North America and Asia. Recent projects include systems for the ports of
Incheon, South Korea, Tallinn, Estonia and as the consortium lead to provide shore-to-ship power connection for ferries and cruise ships at the Port of Toulon, France. In the latter context, the solution provided will deliver sufficient energy to meet the requirements of one cruise ship or three ferries simultaneously calling at the port. Vessels can use 50Hz or 60Hz power connections. With solar energy generated from a photovoltaic shelter and an energy storage system utilising lithium batteries, the system deployed with ABB equipment can automatically adjust the energy mix to supply ships through Enedis, the local power network. Going forward, the system will also be able to store excess solar energy production as well as use other renewable energy sources, such as fuel cells. In a development context, ABB notes discrepancies in frequency between ship and shore are driving demand for more intelligent landside solutions.
8 Cavotec: Cavotec is a high-profile company in the business of shore power system supply having undertaken diverse projects around the world for a variety of ship types. The company describes itself as the total solutions provider for ports and ships. It also claims for itself the record of being the most prolific supplier of shore power systems, supplying systems on a turnkey basis.
8 Igus: Igus offers customised energy supply systems for providing vessels at berth with shore power. Systems supplied conform with international standard requirements - IEC 80005-1 for medium-voltage connections and IEC 80005-3 for supply of low-voltage connections. The company’s specialist edge is the development and manufacture of cable management systems to the meet the differing requirements of diverse clients with innovation in the areas of maximising flexibility and manoeuvrability, space saving and storage and ease of handling process.
8 Nidec Industrial Solutions: This company ranks among the first generation of suppliers of shore-based power systems for vessels. It was an early provider of such a system to the port of Livorno and in 2018 was declared the successful bidder to design and construct a “shore-to-ship” project for the port of Genoa. As part of the order for Genoa, Nidec supplied two 6 MVA static frequency converters which, with the overloads required, can reach up to 12 MVA, as well as switchboards and LV/MV transformers, connecting cables for the various devices and required accessory components. The company has also recently announced a second shore-power project for Genoa and a
8 Power Systems International (PSI): PSI is a specialist in the supply of shore power frequency converters –providing the technology for the shore system to match the frequency at which a given vessel operates. Fixed shore power frequency converters are designed for use on the public supply grid networks of 50Hz or 60Hz with 3 phase standard input voltages of 208V, 400V, 460V or 575V. The output voltage and frequency will be
8 Schneider Electric: As well as bespoke solutions, Schneider Electric offers its ShoreBoX shore connection which comprises pre-designed, ready to use systems for providing shoreside grid power to ships at berth. Typically, ShoreBoX consists of a range of standard components organised in different functional modules fully packaged in a single metal enclosure. Features of the system highlighted by Schneider include: a configuration that achieves space and cost
8 Siemens: The company offers the SIHARBOR shore connection facility. SIHARBOR is said by Siemens to provide a fast, simple and flexible connection to the ship via a cable management system. The system can meet the different power specifications of ports and power supply companies. Siemens points out that it can “be installed at any port and adapted to any berth topology and power need plus supply all types of vessels ranging from cruise ships to container
8 Tratos: Tratos is a specialist supplier of cables used for the delivery of shore power. The company has supplied its specially designed and manufactured TRATOSMART AMP and TRATOSFLEX AMP cables for shore power applications with
8 Yara Marine Technologies: This well-known marine systems supplier offers turnkey solutions in shore power installation. Jon Halvard Bolstad Olsen, Strategy & Business Development
Cavotec states that it has developed specific shore power solutions for cruise, ferry, ro-ro, container and other specialised terminals. The Cavotec website provides comprehensive information on the shore power options and associated data sheets as well as general information about the full range of services offered to the maritime ports sector.
Noteworthy products from igus are its e-chain reel and the igus mobile shore power outlet. The “e-chain reel system” is a mobile shore power connection product (mobile shore power outlet - SPO). It is designed to maximise operational flexibility and core components are: a motorised e-chain reel with special igus chain wound onto it and a special chain with rolling applications attached to the mobile SPO. The mobile SPO can be moved with existing port equipment or via winding systems and can be connected to any stationary SPO offering an extension length of 50 – 60m.
project for the port of Savona with both contract awards placed by the Western Ligurian Sea Port Authority. The Genoa project entails Nidec ASI equipping six berths with shore power. In order to adapt the voltage and frequency of the power supply network to ship requirements, a conversion system consisting of distribution panels, transformers and converters, that will allow the ships to be powered simultaneously, will be introduced. An automation, monitoring and control system will ensure all safety regulations are met at both Genoa and Savona ports. The system to be installed at Savona will be similar to the Genoa one.
according to the needs of the ship with voltages and frequencies similar to the input. The shore to ship power converter can be manufactured in sizes of 100kVA to 1,200kVA in an indoors type of enclosure for installation in a substation or power distribution room. PSI can additionally supply the shore to ship power converters in an all-weather outdoor enclosure for installing on the dockside or mooring berth.
optimisation; its scalability and use of an energy management system which Schneider says optimises energy usage and minimises cost as a result. The system tracks and reports all data in real time, “giving ports visibility of energy-source selection, forecasts, simulation, metering and billing. Schneider further notes: “The system also supplies data on the port environmental indicators to make a shore connection investment as green and efficient as possible.”
ships and ferries.” The system utilises a variable frequency converter, the control system and the HMI (Human-Machine Interface). As required, SIHARBOR can be designed as a turnkey solution, from planning through system integration (with all LV and MV products and switchgear for connection to the grid) up to commissioning and service. The system can optionally be installed in a container or in already existing buildings.
these deployed worldwide including in high profile projects in the USA, China and Baltic sea. The range of products varies and covers different voltages and sections from 3x95sqm to 3×240 sqm and can include screened pairs and even Fiber Optics.
Director, Yara Marine, has written comprehensively on the topic of the diverse incentives to install shore power in our sister publication, GreenPort, Autumn 2022 issue.
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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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The recently released Dynamar publication, Dynamar Reefer Analysis 2022, aims to provide a detailed insight into the sector. As with previous editions, this latest edition reviews the market structure and considers the two sides of the reefer business, conventional and containers. In terms of format, the edition comprises two separate sections on the container reefer trades and one section analysing the structure of the conventional reefer marketplace.
The report highlights the considerable bonanza container carriers and conventional reefer operators enjoyed in 2022, following on from a relatively prosperous 2021. “After struggling for many years… container carriers and conventional reefer operators hit the jackpot,” underlines the report. It points out that capacity was at a premium over much of the period with demand high and congestion soaking up a significant portion of available capacity.
“From a cargo perspective,” outlines the report, “overall perishables trade volumes across the major commodity groups, namely Dairy, Fishery Products, Fruit, Meat and Vegetables, rose to a new high of 173.9 million tons in 2021, showing a strong growth of 3.6 per cent year-on-year from 167.9 million tons in 2020. Volumes grew,” it elaborates, “across all the commodity groups, with meat and vegetables both performing well, rising from 32.2 million tons and 39.3 million tons to 34.2 million tons and 42.18 million tons respectively. In regional terms, there was significant variety with perishables exports falling in the Far East and Central America, while growing strongly in Europe and Africa.”
Supply chain disruption, while easing, was still an influential factor in 2022, and also having an impact was rising inflation. “As a result,” the report states, “in the first three quarters of 2022 container trade reduced by almost 2.5 per cent with higher declines evident in the latter quarter.”
Looking at the forward picture, Dynamar says: “…the seaborne trade of perishable products will face challenges. But the longer-term trend is expected to remain in place.
Dynamar forecasts that perishable export volumes will fall slightly in 2022 before rebounding again in 2023. On the shipping side, while for 2023, shipyards are expected to deliver 330 ships with a massive 2.3 million TEU capacity and for 2024, 390 ships with space for 3.0 million TEU are in the pipeline. Slippage or cancellation of orders is likely to reduce the actual deliveries, but still at 20 per cent of the current fleet, the influx of new tonnage is set to severely disrupt the container shipping market.”
The introduction of the Carbon Intensity Indicator (CII) regulation by the International Maritime Organisation in January of this year is seen as an event that will hasten the shrinking of the conventional reefer fleet. Dynamar notes on conventional reefer vessels that: “Generally they are old and fuel hungry and many of them will be forced to sail at lower speeds than the market requires. Their competitive advantage of being able to provide faster transit times with their direct sailings compared to containership operators with their liner services and hub and spoke format will be lost.” Demolition of conventional reefers, which is already at a high level, is forecast to increase.
The Dynamar Reefer Analysis 2022 publication is priced at €1220.00 per copy + VAT. It is available from: https://dynamar.com/product/reefer-analysis-2022market-structure-conventional-containers/
To elaborate on the containership new build position today. It is noteworthy that during the last 10 quarters 8.6m TEU of containership capacity has been ordered, equivalent to the level ordered in the previous 30 quarters, according to the latest data from BIMCO.
BIMCO calculates that the orderbook now equates to 28.9 per cent of the existing fleet, taking into account scrapping, with the global fleet expected to exceed 30 million TEU for the first time, 16 per cent up on the position today.
8 The shrinking of the conventional reefer fleet is expected to accelerate with the introduction of the Carbon Intensity Indicator (CII) regulation by the International Maritime OrganisationDynamar provides a detailed insight into the reefer market – container and conventional –based on the latest trend lines identified in 2022
