Bangladesh Looks to Develop Deepwater Port

BRIEFS

Maputo reports 8% rise in 2019 traffic In 2019, the Angolan Port of Maputo handled 19.5 million tonnes, up 8% on 2018. Most of the gain was down to increased chromium and container traffic. Chromium now accounts for 30% of all cargo, with some 6.4 million tonnes of exports. Containers grew by 53% to 162,000TEU, following the expansion of the box terminal. Phase I dredging and quay upgrades are due in May, with Phase II in July.

New Santos concessionaire The Brazilian government has signed the concession contract for STS20 terminal at Santos. It is now held by the Hidrovias do Brasil SA consortium, which was officially awarded it in August 2019. The 25-year concession covers an area of 29,000m2 and operation of three warehouses dedicated to fertiliser and salt traffic. This adds to its existing grain and fertiliser businesses in northern Brazil, as well as inland waterway operations on the Uruguay, Paraguay and Paraná rivers.

Six new Brazilian port concessions Brazil’s Council for Investment Partnerships Program (CPPI) has identified 22 public assets to be put out to concession, including six port terminals. These are at Porto Aratu (BA), Port of Maceió (AL), Porto de Santana (AP), Port of Paranaguá (PR); and Port of Vila do Conde (PA). The privatisation programme will also see the sales of several state-owned port companies, including the Espirito Santo Dock Company (Codesa), due to be auctioned off in Q2 2021.

MOIN TARIFFS RENEGOTIATION?

Moin Container Terminal (MCT), which is part of APM Terminals, has been summoned to the Costa Rican Ministry of Public Works and Transport of Costa Rica. Minister Rodolfo Méndez Mata and the technical secretary of the National Concessions Council, José Manuel Sáenz, have initiated discussions on how to renegotiate rates charged for container handling and also on the terminal’s overall capacity.

Mr Méndez says he is reacting to concerns put forward by producers and exporters as to the cost of tariffs levied in the terminal’s first few months of operations.

The managing director of APM Terminals in Costa Rica, Mr Hartmut Goeritz, says that the company is absolutely willing to participate in the process, which the government estimates will last around three months. Technical and legal advice is during the process is also being provided by the Inter-American Development Bank (IDB).

Tariffs charged by TCM have been in the headlines throughout the terminal’s first full year of operations. Although users acknowledge that overall efficiency of cargo handling has

notably increased, they are also adamant that existing rates charged are too high and should be reduced.

However, it was not until December 2019 that the Chamber of Costa Rica Exporters (Cadexco) persuaded the Alvarado government to commence talks with APMT with a view to potentially lowering tariffs charged for container handling.

Laura Bonilla, the current president of Cadexco noted recently, “We have insisted that it is necessary to renegotiate that rate. I think that [in this situation] we are business partners where we [can] both win and it is extremely necessary that the

8 MCT has made a strong start to operations, but government wants to renegotiate tariffs

President of the Republic meets with senior leaders of APM and a consensus rate is reached.”

Public comments made by APM Terminals insist that the terminal operator remains open to any proposal put forward by the government and that changes remain within the scope of the concession contract signed by Moín Container Terminal.

MCT was inaugurated in February 2019 and in its first full year of operations, APM Terminals confirmed that the new facility serviced around 1,100 ships and handled approximately 1.2 million TEU.

COVID-19 IMPACTING KIWI PORTS RESULTS Ports in New Zealand are already seeing COVID-19 impact interim financial results.

Ports of Auckland returned a comparable 30% dip in net after-tax profit to NZ$17.2 million and relatively flat revenue of NZ$123.2 million for the six months to December 31, 2019.

Container volumes fell 2% to 475,173 TEU and both car and total general cargo volumes remained relatively flat, at 124,295 units and 3.297 million tonnes, respectively.

The port is currently in the midst of delivering a major investment programme targeted at increasing capacity, efficiency and returns, as well as meet sustainability goals.

Port of Tauranga reported a comparable 1.4% drop in net after-tax profit to NZ$48.3 million and a 1.2% rise in revenue to NZ$154.8 million for the interim.

Container volumes were up 3.4% to 642,209 TEU, but log exports fell 8.4% to 3.4 million tonnes. Also, dairy exports increased 6.3% to 1.2 million tonnes while total trade decreased 4.2% to 13.3 million tonnes.

The port has warned that its trade outlook for the remainder of the financial year is uncertain due to the ramifications of the coronavirus, especially on log exports.

Port Taranaki has returned a comparable 34% increase in net after-tax profit to NZ$5.31 million and 5% rise in revenue to NZ$25 million for the period.

Bulk liquid trade increased 11% to 1.76 million tonnes, log demand was down 5% to 437,000 tonnes and total dry bulk activity dropped 8.7% to 346,310 tonnes.

Although export log volumes are forecast to further slow, the port is predicting a strong outlook based on improving bulk liquids volume, increased offshore support work and further trade diversification.

Port Otago reported a comparable 16% drop in profit to NZ$7 million and 2% rise in revenue to NZ$47.16 million for the interim.

Container throughput fell 4% to 89,000 TEU, export log volumes reduced 5% to 528,000 tonnes and total bulk cargo volumes dipped 1% to 860,000 tonnes.

Forecasting a “challenging” second half year due to COVID-19, the port is nonetheless predicting it will deliver a stable full result.

The Port of Santos aims to increase its overall capacity to 240.6 million tonnes by 2040, a rise of 49% compared to existing capacity.

In the next 20 years, it is expected that demand for the port’s services will go up 58% to 214.94 million tonnes. The projection for growth is part of the new Development and Zoning Plan (PDZ), which has been issued by Santos Port Authority (SPA).

To reach its new goal, the port authority will have to expand its rail intermodal facilities as well as completely reorganise how terminals operate through the creation of so-called cargo clusters, resulting in similar commodities handled in the same area.

The PDZ actually envisages large increases across all traffic bases, with containers expected to rise by 64%, with capacity expanded from 5.3 million TEU to 8.7 million TEU.

Agribulk capacity is predicted to rise from almost 70 million to 95 million tonnes by 2040, while cellulose capacity is expected to rise by 50% to 10.5 million tonnes per year.

According to Casemiro Tércio Carvalho, president of SPA, although there is no mention of possible privatisation in the PDZ, this will play a potentially key role in implementing the plan when details are released in 2021 as to how the government intends to proceed. Mr Carvalho insists that the PDZ could well be the best way to create value for the port before offering it to the private sector.

Work to start at Puerto Williams Chile’s state Comptroller has given the Ministry of Public Works (MOP) go ahead to commence work on the construction of the multipurpose dock at Puerto Williams, in the country’s Magallanes region. The initial phase investment is $23 million, with work taking an estimated 720 days. Once open in 2022, the port will have an additional 150m of berth.

SANTOS AIM IS DOUBLE CAPACITY

8 Santos wants to double capacity, but new planning details exclude privatisation

As part of the cluster idea, it may well be that containers are grouped in the port’s Saboó zone,

which is where Brasil Terminal Portuário (BTP) is to be found today. Adjacent properties either have expired concessions or are experiencing problems, which could see them re-offered as concessions.

Privatisation has also delayed the proposed access channel concession programme, which is viewed as ultimately essential in the port’s eventual restructuring.

In the March 2020 edition of Port Strategy, the possibility of capacity being developed offshore after 2050 was highlighted, which links to current facilities being maximised in the period until this date.

BRIEFS Ports in the US are already outlining the expected impact of COVID-19, with a drop in throughput activity in Q1 2020, followed by some hope of a rebound in from Q2 2020.

Almost all of the major US ports are reporting similar forecast downgrades. New York/New Jersey has said that there were 12 blank sailings in January and February 2020, with ships that are arriving generally bringing lower volumes. Although the exact decline in activity is yet to be confirmed, the port is probably expecting to see a drop of around 10% compared to Q1 2019.

This figure is similar to other major facilities with a high share of Asian (and Chinese) imports. The Los Angeles and Long Beach complex is expecting to see a decrease of between 10% and 15% in Q1 2020, due to around 40 cancelled sailings across the Transpacific.

On the East Coast, the same trend is being reported. Virginia Port Authority is already planning for a drop equivalent to 11% in Q1 2020 compared to Q1 2019, with Charleston anticipating up to 15% fewer containers to be handled this year in Q1, compared to the same period of 2019.

East Coast ports will be concerned that COVID-19 will now slow the momentum gained in 2019, while the West Coast ports will likely be noting that attempts to make-up the lost volumes seen in 2019 due to the potential US-China trade issues may not now be recovered in 2020. It is reasonable to expect some rebound to occur as the year progresses, with the ports and all supply-chain partners hoping that it occurs in Q2 and potentially into Q3. Though, of course, that too could bring the next concern – too much cargo too soon and the threat of congestion.

There are already reports that MSC is planning to redeploy vessels in the 23,500+ TEU size range, including the MSC Mia at 23,756 TEU (jointly the largest container vessel), onto the Transpacific trades.Transpacific trades to get additional empty containers back to Asia, especially China. MAJOR US PORTS DOWNGRADING FORECASTS

Valparaiso Terminal 2 re-tender The Chilean Minister of Transport & Telecommunications, Gloria Hutt, has confirmed that the issue of a new tender for the extension of Valparaiso’s Terminal 2. She revealed that the project is currently going through an environmental impact assessment and, once approved, it will go out. The original operator, TCVAL, handed back its concession due to environmental delays.

Coatzacoalcos upgrades Coatzacoalcos, in Mexico, has undertaken work in Laguna de Pajaritos costing $33 million as part of the Tehuantepec Isthmus Interoceanic Corridor (CIIT) project. Work completed includes the initial phase of an 80-metre quay extension and a phase II 50-metre extension. Phase II a road access project has been completed (cost of $1.8 million), with a new rail bridge due.

New Paraguay port The new port of Villeta, in Paraguay, is due to begin operations at the end of 2020. It is being built to the same standards as the existing Port of Caacupe-mi, in Asunción and will also be fitted with the Navis N4 terminal operating system. The port will additionally incorporate a logistics park. As part of its initial phase of development, the facility will also be equipped with a state-of-the-art warehouse.

XXXXX BRIEFS

Xxxxx Traffic down at Montevideo The Port of Montevideo saw reduced cargo handling activity last year, especially transhipment. Grain and containers were particularly badly hit, with some cargo switching to nearby ports in Argentina. Box throughput declined 6% to 453,974TEU. Nueva Palmira did better, reporting an 8.6% rise to 2.3 million tonnes. It is now handling traffic generated by the Paraná-Paraguay inland waterway and much of the country’s soybean exports. Fray Bentos handled 314,633 tonnes, 30% down.

APMT wants more Gijón space APM Terminals Gijón has sought permission from Gijón port authority to expand its operating area. It requires a further 597.37 m² to build a new structure of warehouses, offices, and workshops, plus a further 12.37 m² for an oil tank. It currently operates a four hectare site with capacity of 113,846 TEU. Overall traffic at the port fell 12% last year, with dry bulk especially badly hit. It handled 1.8 million tonnes

DPW finalises Fraser Surrey Docks DP World has finalised its acquisition of the Fraser Surrey Docks (FSD) facility in the Pacific Gateway of Canada. In 2019, FSD handled around 350,000 TEU, along with other products, including steel. The operation is limited to container ships of around 5,000 TEU calling, so will only have a niche role to play in serving Transpacific shipping activities but offers some respite in Vancouver and allows DPW to expand its Centerm terminal.

BANGLADESH LOOKS TO DEVELOP DEEPWATER PORT

Bangladesh currently has two major seaports, Chittagong and Mongla. Both ports are limited in terms of infrastructure, especially regarding the ability of receiving larger ships because maximum water depth is just 9.5m. This means that the largest container vessels able to call regularly are only around 2,000 TEU.

This position could be set to change wit the news that the country’s government is planning to approve development of the first deep-sea port in Bangladesh.

However, it will not be in Sonadia, near Cox’s Bazar, as had originally been reported. That project would have offered 16m of water depth and wanted to accommodate 8,000 TEU ships, with the aim of reducing Bangladesh’s reliance on feeder ships to instead target direct calls from deep sea vessels.

It was expected that China would provide funds to build this facility and feasibility studies were carried out as far back as 2009, but to this date no deal was struck with Chinese authorities.

Instead the port of Matarbari will be fast-tracked – and without Chinese funding. The cost is estimated to be in the region of US$2 billion, funded by Japan International Cooperation Agency (JICA), the government of Bangladesh and Chittagong port authority, although as shown in Figure 1, JICT is expected to be meeting over 70% of the total cost.

JICA is expected to provide loans at 0.01% interest, with others charged at 0.9%, but JOCA’s own feasibility report has confirmed that the project is still financially viable, according to local reports in Bangladesh.

Phase I of the project is expected to provide a 460m container quay and a 300m multipurpose quay, with a

8 Figure 1: Estimated Breakdown of Costs for Matarbari Port Development

combination of ship-to-shore gantry cranes and a multipurpose unit, plus rubber-tyred gantry units and accompanying reachstackers and yard equipment. Ships up to 8,000 TEU, at least, will be catered for at the facility.

The project could commence in 2020 and run through to 2026, but there is no doubt of its importance in Bangladesh. A press release issued by the shipping ministry stated, “Matarbari port is a highest priority project of the government.”

SHIBATA FENDER TEAM RELEASES THIRD WHITE PAPER

Leading manufacturer of high-quality fender systems, ShibataFenderTeam (SFT), has announced the release of its latest White Paper Series. The German-headquartered specialist is generating four publications aimed at advocating more transparency in fender production to ensure quality standards that are driven by a commitment to highperformance products and a clear sense of responsibility.

Paper 1 of the Series was launched in 2018 with a focus on the correlation of raw materials, their composition and the impact on the final product, followed by the preparation and mixing steps of raw materials and how they impact the performance of a rubber fender (in Paper 2).

While there are guidelines and international standards concerning the physical properties of a fender, there are no unifying procedures that dictate how to achieve a durable, high-quality piece of equipment. This is because it is still up to the manufacturer to choose the optimal production method.

However, the SFT White Paper Series aims to clarify the complexity of the manufacturing process and the close relation between the steps, as well as outline best-practice examples for the procedures and equipment.

The Group’s new Paper 3, Manufacturing and Curing. Advanced Perfection, takes a close look at manufacturing and curing as two of the most quality-critical steps in the fender manufacturing process, outlining optimal methods for fender type and size. Dominique Polte, Board Member at SFT, explains further. “Not all methods result in the same quality which is why a well-versed manufacturer chooses the ideal procedure in order to achieve the highest possible product quality.”

Importantly, Paper #3 also expands on the possible defects that can occur if a manufacturer does not observe the interaction of critical parameters in the process and how to avoid them.

SFT has more than 50 years of experience in the fender industry and an unbiased view of what exactly makes a good fender – from source materials to every single step in the manufacturing process – remains a core interest to the Group.

The fourth and final paper is due imminently.