Port Strategy April 2021

APRIL 2021 VOL 1021 ISSUE 3

portstrategy.com

Brazil’s privatisation programme | Santos: the prize | What is a freeport? | Global grain trade

DIOGO PILONI

Minister for Ports and Waterways, Brazil, talks one-to-one with PS on privatisation plans

ITALY: SPENDING BIG ELECTRIFICATION: GOOD TO GO MANAGING DOWNTIME RISK NEW VTS GUIDANCE

PORTSTRATEGY INSIGHT FOR PORT EXECUTIVES

The international magazine for senior port & terminal executives EDITORIAL & CONTENT Editorial Director: Mike Mundy mmundy@portstrategy.com Guest Editor: Mike Mundy mmundy@portstrategy.com News Reporter: Rebecca Jeffrey rjeffrey@mercatormedia.com

VIEWPOINT MIKE MUNDY

Quiet revolution underway

Add together the major benefits set to be delivered by IMO’s revised Guidelines for Vessel Traffic Service and those flowing from smart ocean bottom data measurements and it is apparent that a quiet revolution is underway that will positively impact vessel access arrangements

As PS goes to press, the Evergreen operated 20,388TEU Ever Given is straddled across the Suez Canal blocking all vessel movements.

What better reminder is there of the fundamental importance of safe navigation in enclosed waterways whether it be a canal, port access route or the immediate confines of a port itself?

Indeed, the example of the Ever Given, a top-of-the-range containership, is a salutary reminder of the challenge presented in this respect by the growing size of vessels, and particularly container vessels, over the last few years. It is a challenge in conjunction with the very largest containerships but also one faced by ports on secondary trade routes due to the cascading down of vessels into these trades as they are taken out of service from the main arterial trade lanes. Across the board, ports are progressively facing the challenge of having to accommodate larger vessels in terms of length, width, draught and height.

It is a subject that tends to flit in and out of the limelight and usually does so as ports with long access channels get to grips with accommodating the next generation of container vessels. Recent examples are the port of Hamburg and the upgrade of access via the River Elbe and more recently plans announced by the port of Antwerp to deepen the available depth alongside the PSA operated Europa Terminal from 13.5m to 16m. This is specifically to cater for the larger container vessels now in service and the importance of doing this is underlined by the fact that to achieve it the existing quay wall will be demolished and a brand-new quay built on a phased basis.

This important subject area has not, however, escaped the attention of key parties responsible for safe navigation and the providers of state-of-the-art technology that aim to facilitate this.

PS this month features the article, VTS: The Need for Change which highlights the imminent introduction of new Vessel Traffic Service guidelines to replace those introduced as far back as 1997 and are clearly in need of comprehensive updating. The new Guidelines are designed to improve harmonisation, safety and efficiency – so while safety remains the priority commercial benefits are also foreseen.

Equally notable in this general context is our article, The Devil is in the Detail, which highlights the potential of smart ocean bottom data measurements which can deliver a much greater level of detail thereby facilitating improved vessel access. The potential benefits do not end here. The readings taken can translate into easy-to-understand visualisations for a web portal, reportedly making infrastructure planning and maintenance far simpler.

For the latest news and analysis go to www.portstrategy.com/news101

News Reporter: Rebecca Strong rstrong@mercatormedia.com Regular Correspondents: Dave MacIntyre; Iain MacIntyre; Felicity Landon; Alex Hughes; Stevie Knight;John Bensalhia; Ben Hackett; Peter de Langen; Barry Parker; Charles Haine; AJ Keyes; Andrew Penfold; Johan-Paul Verschuure; Phoebe Davison Production Ian Swain, David Blake, Gary Betteridge production@mercatormedia.com SALES & MARKETING t +44 1329 825335 f +44 1329 550192 Media Sales Manager: Tim Hills thills@portstrategy.com Media Sales Executive: Hannah Bolland hbolland@portstrategy.com Marketing marketing@mercatormedia.com Chief Executive: Andrew Webster awebster@mercatormedia.com PS magazine is published monthly by Mercator Media Limited, Spinnaker House, Waterside Gardens, Fareham, Hants PO16 8SD UK t +44 1329 825335 f +44 1329 550192 info@mercatormedia.com www.mercatormedia.com

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©Mercator Media Limited 2021. ISSN 2633-4232 (online).

Port Strategy is a trade mark of Mercator Media Ltd. All rights reserved. No part of this magazine can be reproduced without the written consent of Mercator Media Ltd. Registered in England Company Number 2427909. Registered office: c/o Spinnaker House, Waterside Gardens, Fareham, Hampshire, PO16 8SD, UK.

APRIL 2021 | 3

CONTENTS APRIL 2021 VOL 1021 ISSUE 3

portstrategy.com

Brazil’s privatisation programme | Santos: the prize | What is a freeport? | Global grain trade

NEWS 16 Luanda controversy New allegations

16 Clever concessions Short-term fix

17 Mauritius plans…

…but problems to solve

DIOGO PILONI

Minister for Ports and Waterways, Brazil, talks one-to-one with PS on privatisation plans

ITALY: SPENDING BIG ELECTRIFICATION: GOOD TO GO MANAGING DOWNTIME RISK NEW VTS GUIDANCE

On the cover PS talks one-to-one with Diogo Piloni, Minister for Ports and Waterways, Brazil, about the country’s extensive port privatisation programme – the investment opportunities, new twists to the privatisation story, Santos and the benefits envisaged.

24 Down but Spending Big

Brake applied

18 Adani in Sri Lanka West Terminal PPP

19 Gothenburg terminal

DIGITAL NEWS

GreenPort magazine is a business information resource on how best to meet the environmental and CSR demands in marine ports and terminals.

Sign up at greenport.com

11 Flint Tech VR

Online portstrategy.com 5 Latest news 5 Comment & analysis 5 Industry database 5 Events Social Media links LinkedIn PortStrategy portstrategy YouTube Weekly E-News Sign up for FREE at: www.portstrategy.com/enews

The big prize

18 Melbourne wharfage

11 Intelligent PCS

Join leading port executives www.greenport.com/congress

19 Santos Sale

22 Electrification

CBA talks stall

is a proud support of Greenport and GreenPort Congress

The Congress is a meeting point that provides senior executives with the solutions they require to meet regulatory and operational environmental challenges.

Stay in touch at greenport.com

The Minister for Ports explains

17 Montreal fears

Safety focus

5G for safety

&

16 Brazil Privatisation

21 UK Freeports

11 Barcelona test bed

GREENPORT Cruise Congress

FEATURE ARTICLES

17 PoAL review

Short-sea venture

Piraeus2021

APRIL 2021

Advanced PCS introduction

Simulators ready

EQUIPMENT NEWS

13 Sideloader upgrade New MegaReach SL

13 VSC upgrade

How do ports fit in?

Positive momentum

Italian port plans

27 Pushing the Boundaries Rail reach

30 New Paerns and Priorities Global grain picture

33 Managing Downtime

Maximising machine use

36 VTS Change

New VTS guidance

38 Devil in the Detail Fine measurements

44 Postscript Coal demand

Two RMGS for VSC

REGULARS 14 The Economist Shipping Euphoria Pressure

14 The Strategist Era of Innovation

15 The New Yorker Growth Engines

15 The Analyst

Localisation Trends

For the latest news and analysis go to www.portstrategy.com/news101

APRIL 2021 | 5

NEWS

LUANDA TENDER CONTROVERSY CONTINUES Club-K, the Angola information portal, has carried new allegations concerning the disputed award of the multipurpose terminal concession in Luanda to DP World.

The award is the subject of a pending Supreme Court case in Angola, brought by International Container Terminal Services Inc. (ICTSI) against a background of both ICTSI and Terminal Link, the terminal arm of liner operator CMA-CGM, making written submissions to the Concession Evaluation Committee (CAC) recording what they see as serious breaches of the prescribed evaluation process.

Terminal Link, who bid for the terminal in conjunction with Angolan company Multiparques, while publicly expressing its doubts over the integrity of the tender evaluation process has walked away but ICTSI has made it clear that it intends to challenge the result in the Supreme Court stressing that had CAC’s own rules been properly followed then the award of the concession would not have gone to DP World.

Now Club-K has added to the controversy by reporting that Joao Gaspar de Sousa Fernandes, Director of the legal office of the Ministry of Transport, who coordinated the evaluation committee for the concession tender, in concert with Jose Ricardo Silva Fernandes, an Angolan businessman with

BRIEFS Cuyutlán reactivated Manzanillo Port Authority(API), in Mexico, has reactivated a project to build a new harbour at Laguna de Cuyutlán. It will require an estimated investment of $654.2 million, of which 80.1 per cent would come from the private sector and 19.9 per cent from the API. Other projects for the 2020-2024 period include an international tender for the development and operation of a new box terminal, covering 74 hectares in Cuyutlán.

6 | APRIL 2021

companies in Dubai, entered into secret negotiations with DP World in Dubai. Club-K specifically mentions that a negotiation was entered into by Joao Fernandes with DP World

8 New allegations have been made regarding the Luanda Multi-Purpose Terminal tender process

about commissions to be paid to him in the event of a successful outcome for DP World.

Club-K goes even further and sets out a detailed, dated, record of trips made by Joao Fernandes and Jose Ricardo Silva Fernandes to Dubai – one trip by each of them in January of this year prior to the signing of the concession award and one trip after this event. Club-K records that meetings were held with DP World on both occasions.

The Supreme Court case in Angola remains pending with the overall controversy around the award building at a time, ironically, when Angola is in the midst of an IMF backed privatisation programme for nearly 200 state-owned or partially state-owned enterprises.

It is apparent that this ongoing dispute will do little to reassure foreign investors about the integrity of process in forthcoming privatisations in Angola.

“CLEVER” TRANSITIONAL CONCESSION CONTRACTS Part of the port privatisation and concessioning out wave that has been flowing throughout Brazil this past year is a scheme to sell “transitional contracts” for up to six months to bring in valuable income and to bridge gaps between one long contract and the next long-term concession.

The port of Santos is a case in point, with three more short-term contracts being signed in January of this year. An area of 64,412m2 in the Saboo quarter of the port has been awarded to Santos Brasil, which operates the Tecon Santos box terminal and TEV car terminal on the left bank,

with this given a six month contact (since extended for another six). One other area was also awarded.

Another area in Saboo has been granted to MSC Logistica SA, giving two areas, and Conport, a local warehousing company has bagged a fifth, although this one is waiting for final authorisation from Antaq, the Regulatory Body for Ports and Waterways.

“The signing of transitional contracts keeps the port areas operational until long-term leases are signed,” explains Bruno Stupello, Director of Business

Development and Regulation, Santos Port Authority (SPA). “In this way we can reduce the time terminals are left idle in the Port of Santos and it guarantees the best remuneration for the exploitation of public assets and generates jobs and income.”

It will bring in around Reais6.5million for each six-month period the areas are leased out for. “This is a great and clever scheme from the SPA,” one manager at a small Santos inland terminal told PS. “It also helps bolster the profitability of the SPA before it is sold off to the private sector.”

Fremantle renewal

DPW in Indonesia

Huelva improvements

Australian stevedore, Patrick Terminals, has extended its lease at Fremantle’s Inner Harbour for another ten years, with a potential expansion of up to 21 years. The stevedore says the agreement will provide certainty of property costs and the upgrades will deliver more efficient movement of cargo as well as promote a modal shift to rail. The company has committed A$50 million to deliver new equipment and a direct rail interface.

DP World is planning to reenter the port market again in Indonesia. In partnership with Canadian pension fund, Caisse de dépôt et placement du Québec (CDPQ), a jointventure agreement has been signed with major Indonesian conglomerate, Maspion Group, to build a new US$1.2bn container port and logistics park at Gresik (near Surabaya).

Operations are scheduled to start in 2023 with an eventual annual capacity of up to 3m TEU.

The southern Spanish Port of Huelva reports that it has completed almost 80 per cent of the infrastructure upgrade work at the Ingeniero Juan Gonzalo and Ciudad de Palos quays in its outer harbour at a cost €23 million. The phased project will deliver environmental benefits through improvements to the rainwater collection and drainage system whilst also delivering improved dry bulk handling as a result of the modernisation of existing facilities.

For the latest news and analysis go to www.portstrategy.com/news101

NEWS Mauritius will build on its transshipment trade whilst seeking to develop other maritime sectors such as seafood and cruises post the Covid pandemic, a recent Transport Events webinar heard.

“The need is felt to consolidate Port Louis’s position as a container transshipment port,” said Ramalingum Maistry, Chairman, Mauritius Ports Authority.

Maistry chose not to elaborate despite several follow-up queries but hinted the way forward was better use of existing resources.

“The key to efficiency is therefore for ports to do more with their existing resources particularly those focused on moving cargo. By optimising the utilisation of these resources ports will not only improve their throughput but also become more profitable,” he said.

Private sector sources acknowledged the merit in this but were critical about Port Louis’s performance.

“Transshipment has made some progress but in terms of

MAURITIUS BIG PLANS BUT PROBLEMS TO OVERCOME imports and exports delays have increased,” said Guillaume Hugnin, President, Mauritius Chamber of Commerce and Industry, who added there was a need to invest in both the port and the coastal waters to improve its productivity.

A more detailed exposition of the problems was voiced by Ms Khadeeja Oozeerally-LUCKHUN, Managing Director, Maersk Mauritius Ltd, who reported Port Louis’s productivity as being 86.9 per cent of its target. Areas she flagged as needing attention were movements per hour, yard management and manpower, documentation and data.

Hugnin also noted inefficient use of cranes. More tellingly he highlighted the problems caused by the Port Authority’s dual role as landlord and regulator. “Is that

conducive to investment and growth?” he asked.

The MPA’s response rests on infrastructure build-up in the form of the Island Terminal Project (ITP) and boosting the seafood trade by use of existing facilities. A new cruise terminal is also due to open at the end of this year.

The ITP is a 1.6 kilometre breakwater connected to the mainland via an access bridge.

Land behind this will then be reclaimed to give 1.2 kilometres of berthage and fifty more hectares of yard.

At the same time, the port’s access channel will be deepened to 18m from 16.5m increasing capacity to 1.5 million maybe even 1.8 million TEU. Currently annual throughput is in the order of 650,000TEU.

PoAL SAFETY REVIEW HERALDS CHANGES Enhanced monitoring and enforcement of health and safety at Ports of Auckland (PoAL) is expected following an independent review completed by the Construction Health and Safety New Zealand Trust Board.

The review was commissioned in the latter part of last year following the third fatality at the port since 2017. A draft report is understood to currently be before the port company and the chief executive of its owner, the Auckland City Council.

Phil Goff, Mayor of Auckland, says the port’s bonus system – whereby workers have been rewarded for greater productivity – was not supplemented with the necessary oversight of correct practices.

The Mayor cites a WorkSafe New Zealand report that reveals one of the workers killed set off a straddle tip alarm 91 times, was on the phone 64 times and was not wearing a safety belt during that fatal shift.

In response to the review, Michael Wood, Minister of Workplace Relations and Safety,

BRIEFS Leixões and Setúbal records

The Portuguese ports of Leixões and Setúbal both reported records for container handling in 2020. Leixões handled 703,930TEU and Setúbal 166,860TEU, increases of 2.6 per cent and 22.2 per cent, respectively. As a whole, the mainland Portuguese ports handled a combined 2.8 million TEU in 2020, up 2.6 per cent. Sines, the largest container port, saw growth of 12.3 per cent.

Maputo traffic down

The Mozambican Port of Maputo handled 18.3 million tonnes last year, a drop of 13 per cent compared to 2019.

Maputo Port Development Company (MPDC) attributed the decline to restrictions connected to the COVID-19 pandemic, which resulted in the closure of the South African border and saw a local lockdown imposed between March and April. Despite the overall decline, both chromium and ferrous-chromium export ores from South Africa grew by 33 per cent.

Montreal fears has also stated that ongoing workplace deaths at PoAL are “unacceptable”.

While awaiting public release of the final report, Craig Harrison, National Secretary, Maritime Union of New Zealand (MUNZ) stated he expects it to “put the spotlight on bad practices that had been encouraged.”

Additionally, he called for a wider inquiry into health and safety at all New Zealand ports.

Meanwhile, a recent container stack collapse at the port led Harrison to call for the port company to put a halt to its automation project.

For the latest news and analysis go to www.portstrategy.com/news101

8 A major upgrade of safety arrangements is expected at Ports of Auckland following an independent safety review

The latest incident apparently occurred when two 40-foot containers were stacked on top of a 20-foot container, with the stack tipping and jamming underneath the automated straddle as it attempted to depart.

Harrison contends there must be a “fundamental fault” in a yard stacking programme which allows such unsound practice and “this type of incident should not be happening this far into the rollout of automated straddles”.

Workforce unions at the Port of Montreal have rejected a new pay deal from employers. There has been no contract in force since the end of December 2018, when the previous collective bargaining agreement expired, and a deal could not be reached. While the unions have said there is no intention to call a strike, shipping lines are already making contingency plans for use of other ports, notably Halifax. Previous strikes occurred in July and August 2020.

APRIL 2021 | 7

NEWS

Stanlow goes NO ‘REBALANCING’ OF WHARFAGE for single CHARGES IN MELBOURNE - YET sourcing Stanlow Terminals is to continue following the single source approach with Briggs Marine to ensure productivity efficiencies are maximised.

The company’s operations are located at the core of the UK’s industrial and chemical heartland, on the south side of the Mersey Estuary near Liverpool and Manchester. Between the deep-water terminal at Tranmere and short sea terminals at Stanlow, there are eight operational jetties for the import and export of bulk liquids linked to tank storage capacity of three million cubic metres.

This is a complex network of specialist assets, which includes direct connectivity into the UKOP pipeline and Manchester Jet Line to supply aviation fuel directly to the airport. To maximise efficiencies, Stanlow Terminals decided to single source everything across the assets, from mooring through to berth management and emergency response.

Mark Thompson, Marine Manager at Stanlow Terminals, explains why the single-source partnership with Briggs Marine has been the right approach. “The level of maritime and operational berth experience within the Briggs team accompanied by excellent implementation skills made for a very smooth transition from our previous service provider.”

BRIEFS Santander tender

Santander port authority has issued a tender for the creation of a new 60,000m2 area, including construction of a multi-level storage facility, for finished vehicles on its Raos quay. The cost of the new area, which will handle importexport new vehicle flows, will be in the order of €700,000.

This area and the new container terminal are located on the Central Breakwater of Raos and will require a reorganisation of existing port space.

8 | APRIL 2021

8 The Port of Melbourne has decided against pursuing a ‘rebalancing’ of wharfage charges for the time being

The Port of Melbourne (PoM) has decided not to proceed with its “rebalancing” action to change its wharfage tariff structure for full containers, at least for the time being.

The port has withdrawn its rebalancing application to the Victorian Essential Services Commission (ESC) after hearing from stakeholders during a four-week consultation period in December and January.

The initial proposal would have replaced the current wharfage fee for full inward containers and replaced it with a wharfage tariff that was A$10 per TEU higher.

This would have applied to vessels that exceeded the

dimensions of 300 metres length overall by 40 metres beam. For vessels smaller than this, the current wharfage fee would have continued to apply.

Also under the original proposals, the wharfage fee for full outward containers would have been reduced by an estimated A$3.77 per TEU compared to the current export wharfage tariff.

The port announced its decision to withdraw its proposal in a letter to the ESC. Brendan Bourke, CEO, PoM explained: “In order to provide further opportunities for port users and other stakeholders to provide their views, PoM has decided to temporarily withdraw the

rebalancing application and defer the proposed tariff adjustment from July 1, 2021 to a later date.”

He added: “PoM looks forward to ongoing engagement with the ESC to ensure that it is able to continue to make efficient investments in port infrastructure in the long-term interests of port users and Victorian consumers.”

The ESC welcomed the withdrawal of the rebalancing application, saying that the consultation process had raised a host of issues from stakeholders.

New FXT rail

Adani in Colombo

Rotterdam hydro’ line

GB Railfreight has commenced operation of a new daily rail service connecting the Port of Felixstowe with Yorkshire. It represents the 13th rail service offered by GB Railfreight and the 12th daily link to the north of England. Approximately 50 per cent of container traffic moving from the Port of Felixstowe, owned and operated by Hutchison Ports, to northern England locations goes via rail. Trains on this service will employ mixed wagons.

Adani Ports and Special Economic Zones Ltd of India has confirmed a letter intent from the Government of Sri Lanka to develop and operate West Container Terminal (WCT) in Colombo. The public-private partnership deal is for 35 years, with the new terminal offering a 1400m quay and water depth of 20m, to target Ultra Large Container Ships and transshipment container activity. Linkage with Adani’s Indian terminals is expected.

The Port of Rotterdam is interested in developing a new hydrogen pipeline to support the future development of hydrogen infrastructure. The project, if confirmed, will be developed in conjunction with Gasunie and could be operational by the second half of 2024. It will be known as the HyTransPort.RTM and involves a potential 60cm open-access pipeline running between the areas of the Maasvlakte and Pernis.

For the latest news and analysis go to www.portstrategy.com/news101

NEWS International Container Terminal Services, Inc. (ICTSI) has successfully launched a new AIpowered operational optimisation tool at its flagship terminal, the Manila International Container Terminal (MICT).

The new application, YardSight, is part of a larger AI Solution Suite called AiCON, which has been developed by Avlino, a New Jersey-based AI and digital transformation company, in partnership with IGO Solutions, a UK-based leading solutions provider for container terminals.

YardSight undertakes capacity optimisation, throughput management and yard space maximisation. By leveraging real-time and historical operational data from internal and external sources, the AI tool adapts to the current state and responds back to users with intelligent work directives based on the transformative conditions.

Anders Dommestrup, CEO and Executive Director, MICT, highlights the benefits to the terminal from this new operating application. “The YardSight AI module, in its current form, provides logic for the most efficient stacking positions based on optimal work balancing of our rubber tyred gantries (RTGs). This results in increased productivity for internal and external trucks, reduced traffic clashes, and minimised yard rehandles when stacking import containers. We are working closely together to expand the application into the dynamic allocation of CHE ranges and focusing efficiencies for the export yard cycle for internal/external trucks in the coming months as well. We are

MICT LAUNCHES AI LED CAPACITY OPTIMISATION TOOL

Gothenburg terminal

Sweden’s Port of Gothenburg has confirmed a new container terminal that will focus strictly on short-sea, intra-European traffic. The terminal is to be operated

by APM Terminals and will be located at the Skandiahamnen western quay. This has recently been renovated and reinforced as part of the Skandia Gateway project.

Storage and transloading facilities adjacent to the terminal are also expected to be developed.

Myanmar boycotts

already seeing very encouraging signs that this new approach can deliver significant efficiencies to equipment utilisation and truck turnaround time, which will be passed on to our customers to further support ICTSI’s conscious effort to reduce its greenhouse gas emissions.”

Jayesh Pandya, co-founder of IGO Solutions, explains how the partnership has developed: “Very

8 ICTSI is rolling out an innovative AI led capacity optimisation tool with significant benefits already visible

few container terminals have taken a holistic approach to adopting AI solutions and ICTSI initiated this journey as a pioneer.

IGO Solutions and Avlino partnered to deliver solutions with the potential to realise a high ROI for ICTSI.”

KEELUNG PORT ADDS MORE STRADS Taiwan International Ports Corporation, Ltd. (TIPC) has confirmed a deal for two new diesel-electric straddle carriers for use at the Port of Keelung from Kalmar, part of Cargotec.

Delivery is scheduled for Q4 2021.

The existing TIPC equipment fleet already includes seven Kalmar straddle units, although these have been in use for almost 20 years. The new equipment is part of the ongoing TIPC fleet renewal programme.

BRIEFS

The new Kalmar straddle carriers feature highly efficient diesel-electric power units and offer the driver a spacious, ergonomic cabin with an intuitive user interface.

Daniel Ho, Vice President, Solutions Sales, Asia-Pacific, Kalmar, summarised some of the benefits of the new units: “Our next-generation straddle carriers represent a huge leap forward in many different ways, bringing a

For the latest news and analysis go to www.portstrategy.com/news101

wide variety of benefits for terminals using straddle carriers for container handling, with increased reliability and productivity being the most significant.”

TIPC is wholly owned by Taiwan’s Ministry of Transportation and Communications. TIPC manages terminals at four ports across the country, namely, the Port of Keelung, Port of Taichung, Port of Kaohsiung and Port of Hualien.

Cosco Shipping Lines (COSCON) has joined the One Network Express (ONE) shipping consortium in stopping calls in Myanmar. The shipping line states that the recent military coup in the country is causing “difficulties” in the transportation process, with the ONE carriers adding that “port disruptions and limited availability of road transport” are ongoing problems. COSCON calls stopped at the end of March 2021. No timescales have been given for when the suspended services will restart.

Dust free Bruks

A new Bruks Siwertell road mobile unloader will soon be serving many sites in the US Gulf of Mexico region along the Mississippi River.

The 10 000 S-type has unloading capacity to accommodate vessels up to 10,000 dwt and ensures a continuous productivity of 300 tonnes per hour for totally enclosed, dust-free handling of cement. The unloader is being delivered fully assembled from Sweden, with full-scale operations scheduled to start by mid-June 2021.

APRIL 2021 | 9

DIGITAL NEWS

APMT BARCELONA TEST BED FOR 5G LED SAFETY PROGRAMME The Port of Barcelona and APM Terminals (APMT) have confirmed a new pilot project aimed at improving safety in the port through the use of 5G technology.

APMT will work alongside Telefónica and Mobile World Capital Barcelona to connect cranes, vehicles, and operators, by merging advanced communication and localisation 5G network technologies.

The objective of the pilot programme is to minimise all potential risks of collisions between mobile machinery and fixed elements, vehicles, and people in the terminal.

Telefónica’s 5G network brings improved communications for Cellular Vehicle-to-Everything (C-V2X) at the port. This means use of 5G and Edge Computing will allow APMT Barcelona to target enhanced coordination of port traffic.

This application, hosted on the Edge, offers a dashboard to APMT which generates a map-based visualisation of the positions of each participating element at the facility.

An alarm system will notify crane drivers, trucks and

pedestrian personnel about potential collisions involving fixed and mobile items. Additionally, an instant notification will be sent to the Terminal Control Centre should a collision occur.

Straddle carriers are to be equipped with an onboard communication unit via 5G and C-V2X linking the equipment with all other hardware. For trucks, drivers and all terminal personnel, a 5G smartphone, with a C-V2X app installed, will be used.

Carlos Arias, Managing Director, APMT Spanish Gateways, envisages that this programme

8 APMT Barcelona is the key test location to trial 5G as a path to improving terminal safety

will expand in the future. “Projects like this are part of our way of working at APM Terminals, in search of innovation and continuous improvement, and for operations in our terminal to be increasingly safe, more sustainable and more competitive,” he underlines.

The project will be operational during Summer 2021 with APMT Barcelona fulfilling the role of the key test location.

DINGES LOGISTICS SELECTS INFORM TOS 8 Dinges Logistics has selected INFORM to upgrade the TOS at its Grünstadt Container Terminal

INFORM has secured a new contract to supply Dinges Logistics with a TOS for use at its Grünstadt Container Terminal.

Dinges Logistics Grünstadt Container Terminal is an intermodal facility located in the Rhein-Neckar region close to Ludwigshafen/Mannheim,

Germany. It provides storage for loaded and empty containers, plus serviced storage slots, regular shuttle services and value-added services.

Ingo Dinges, Owner, Dinges Logistics, explains: “When we set out to replace our existing system, we wanted to

For the latest news and analysis go to www.portstrategy.com/news101

select a proven software vendor in the intermodal TOS market who will allow us to not only improve our transparency but also our efficiency. We were able to see the impact of INFORM’s Intermodal TOS in live operations. INFORM’s solution was the clear leader after seeing the solution in place and speaking with the operations team at the terminal.”

The TOS is now under deployment and is slated to go-live in Q4 2021 and will build on INFORM’s existing footprint of intermodal terminal operators running their Intermodal TOS, which includes both KTL and Samskip in Germany.

BRIEFS Intelligent PCS venture

Specialist Port Community Systems (PCS) specialist MGI and Terminal Operating System (TOS) provider TGI Maritime Software, have confirmed a collaboration to deliver a new intelligent PCS, known as Ci5, to aid the flow of goods and deliver fluidity, traceability, security and competitiveness for terminals. The first two locations to deploy this product will be Terminal Des Flandres (Dunkirk), SMART (Mayotte) and DATA Terminal (Martinique).

Camco AI transfer Terminal automation solutions company, Camco Technologies, is utilising AI image recognition to enhance safety and efficiency at port terminals.

The key area of focus is switching from laser-based to image recognition-based technologies to increase safety and protection for truck drivers during the container transfer process in the terminal yard.

The emphasis on this area is a result of trucks, truck drivers, and straddle carriers all operating in the same small area.

Flint Tech’s real VR

Flint Tech has confirmed that its Virtual Reality (VR) simulators at the Port of Gdansk have been successfully deployed and can now be rolled out industry wide. The New Competencies Centre at the Port of Gdansk has been utilising three simulators between October 2019 and March 2020 for training across five key items of cargo handling equipment - rubber-tyred gantry crane, ship to shore crane, conventional crane, mobile crane and reachstacker.

APRIL 2021 | 11

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EQUIPMENT NEWS

SIDELOADER PERFORMANCE UPGRADE The recently introduced next generation of Hammar MegaReach Sideloader possesses a range of new features. These include integrated extensions, a longer reach and a large increase in Safe Working Load (SWL).

The crane extensions that allow the lift to be made further out from the Sideloader are longstanding industry items – first introduced by Hammar in 1990 and followed in 2013 by the Hammar MegaReach which meant Sideloaders could stack two containers high in a second row.

While the MegaReach extensions originally introduced represented a milestone for Sideloaders, the SWL of 5.5 tonnes at maximum reach meant Despite the difficult economic climate for the port equipment industry, Liebherr Container Cranes continues to take orders and deliver cranes. The port of Karmsund in Norway has ordered another LHM 550 for the Haugesund Cargo Terminal in Husøy.

Karmsund Havn IKS received its first Liebherr mobile harbour crane, type LHM 550, two years ago and this was instrumental in bringing new business to the terminal. The second LHM 550 is being purchased to meet the increased demand and will also enable the Haugesund Cargo Terminal to offer tandem lifts of up to 308 tonnes to serve the growing offshore wind industry.

Tore Gautesen, Port Director, port of Karmsund, notes: “We have been very satisfied with our LHM 550, and with our collaboration with Liebherr. We have had far higher activity on the first crane than we expected and investing in a second LHM 550, after only two years of operation with the first one, says a lot about the development at the terminal, and also about the expectations for further growth”.

He adds that another crane is needed for the ever-growing project cargo business and for the booming offshore wind industry, explaining that a big

BRIEFS VSC yard upgrade

that the use was almost exclusively for empty containers.

However, the latest 2021 generation features a longer reach and a largescale upgrade to a SWL of 15 tonnes, at maximum reach. The ability to

8 Hammar MegaReach – the 2021 generation can stack containers weighing up to 17 tonnes in a second row

stack containers in a second row weighing up to 17 tonnes is now possible.

MORE LHM BUSINESS…

Vostochnaya Stevedoring Company (VSC), operator at Vostocnhy Port, Russia, has completed a modernisation of two container yards.

The programme means that yard capacity for stacking of containers has doubled from three to six tiers, raising yard storage capacity to 25,000TEU. Two new rail mounted gantry (RMG) cranes are to be installed during 2021, with the stacking height of 6+1. VSC is a subsidiary of Global Ports.

Odense fenders

Element Fenders has designed and supplied a new fender system of 51 sets to the Port of Odense, Denmark, as part of a new 1000m quay wall development. The port is building a new Offshore Supply Terminal (OST), which will be used for decommissioning and heavy projects type cargo as well as conventional cargoes.

Maersk MOU

advantage is the possibility to use both cranes for tandem lifts.

The new unit will be powered via electricity, to correspond with Karmsund Port Authority’s vision

8 The Port of Karmsund’s has ordered a second LHM550 mobile

that the port should operate under the principles of “Lean – Clean – Green.”

…AND AN STS FOR ALICANTE At the same time, Liebherr Container Cranes has delivered a ship to shore (STS) container crane to Terminales Maritimas Del Sureste S.A (TMS) in the Port of Alicante, Spain. The crane has an outreach of 46.9m, a span of 15.24m and a lift height of 36m with a SWL of 50 tonnes under single lift spreader.

The crane is an integral part of the port extension project

For the latest news and analysis go to www.portstrategy.com/news101

operated by TMS under a concession provided by the Alicante Port Authority. All terminal equipment at TMS is linked to the control centre for quality assurance and to guarantee performance in operations, with this new unit featuring a remote crane management system allowing for remote assistance, service and diagnostics.

AP Moller-Maersk has signed a memorandum of understanding (MoU) with other maritime industry companies to undertake a feasibility study to assess the viability of green ammonia shipto-ship bunkering at the Port of Singapore. Other participants are Fleet Management Limited, Keppel Offshore & Marine, Maersk-McKinney Moller Centre for Zero Carbon Shipping, Sumitomo Corporation and Yara International ASA.

Hyster award

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APRIL 2021 | 13

THEECONOMIST BEN HACKETT

As the pandemic rolls back with vaccinations rolling out, the maritime industry becomes overly optimistic from ports, terminals, carriers and shipbuilding.

The second half of 2020 turned the year into a phenomenal boon as freight rates rocketed and profits soared for container carriers. The lines claimed that it was due to unprecedented cargo demand from buoyant consumers going on an on-line shopping spree. Yet when we look at the numbers in a bit more detail the boom in demand was limited to the second half of the year and the total increase was not that dramatic, only 1.7 per cent on the Transpacific, for example.

In Europe the Port of Hamburg’s container throughput declined 12 per cent to 8.5 million TEU overall with imports falling 8.2 per cent year on year in 2020.

Rotterdam experienced a 3.2 per cent year on year decline in throughput to 14.3 million TEU in 2020. Nevertheless, Rotterdam

EUPHORIA IN SHIPPING FINANCES MAY IMPACT PORTS

has commenced a quay lengthening project that will increase annual throughput capacity by four million TEU - or 28 per cent of Rotterdam’s annual box volume, according to Seatrade Maritime News.

Antwerp managed to achieve a 1.3 per cent increase in container throughput to 12 million TEU for the first time.

With such small volume increases why was there a

8 A glut in profits has seen shipping lines go on a spending spree for vessels, but this will put pressure on ports

shortage of container capacity and containers? It can only be put down to being caught off guard by the resurgence of demand or the withholding of capacity to help encourage freight rates to go up, or both more likely.

The glut in profits spurred carriers to go on a spending

splurge to buy second-hand ships and order new ones. According to Alphaliner, 267 ships with nearly one million in TEU capacity were sold. The larger carriers within the three alliances have also ordered a significant number of megamax ships with 24 rows of containers across, destined for the AsiaEurope trade. This will certainly impact ports and terminals as they need to adjust quay lengths and cranes to deal with the influx of these vessels which will put increasing pressure on their ability to deal with ever larger interchanges per vessel call.

Expansion of terminals and new developments, such as the recently announced DP World/ Canadian investment in Indonesia are also in progress after a short hiatus. The pandemic was good business for some. Yet looking forward there are signs that long-haul routes may be impacted by the high freight rates and increased near shoring.

THESTRATEGIST MIKE MUNDY

BEHOLD AN ERA OF INNOVATION IS UNDERWAY The container was probably the last mega innovation in the world of ports and shipping. But when we come to look back at the end of this decade in all probability it will also be seen as a landmark decade in shaping the world of ports and shipping. Two examples in particular support this view.

Digitalisation: widely heralded as the fourth industrial revolution has immense potential to significantly lift efficiency levels in the ports, shipping and logistics sectors; in diverse critical respects across the business spectrum – right through from planning and operations to basic administrative and communication functions.

Sitting under the digital banner are new technologies such as artificial intelligence, cloud computing, robotics, 3D printing,

14 | APRIL 2021

the Internet of Things, advanced wireless technologies and automation, and clearly each of these elements is already exerting a strong influence with a huge amount of potential remaining to tap into.

Examples? Fully automated terminals have already arrived – more will come. Maritime autonomous surface ships (MASS) are under development with deployment expected in this decade in a local or regional context. The words of Mikael Makinen, President, Marine, Rolls Royce, amplify belief in the concept: ““Autonomous shipping is the future of the maritime industry.

As disruptive as the smartphone, the smart ship will revolutionise the landscape of ship design and operations,” he says.

Sustainable development: widely defined as: “development, which meets the needs of current generations without compromising the ability of future generations to meet their own needs and to choose their own lifestyles.” The ports, shipping and logistics sectors have got the bit between their teeth on this front with hardly a day going by without a major industry player announcing new emissions targets or increasingly the achievement of milestones on this road as they seek to attain big number reductions by 2030, 2050 or another target date. This decade promises to be recognised as the decade when real momentum got behind the push for sustainability.

And both these areas are

spawning substantial new business streams and individual businesses. Examples? In the drive for sustainability, look at the huge amount of work going into alternative fuels for shipping and means of sourcing electric power from renewable energy sources for cargo handling equipment.

Ports are heavily engaged in serving the renewable energy sector, frequently representing an essential component in its construction, as well as seriously engaging with the idea of becoming an LNG hub (Barcelona for the Mediterranean) or a hydrogen hub (Rotterdam aims to establish itself as both a LNG and hydrogen) hub.

This decade promises to be truly transformative in the history of our industry.

For the latest news and analysis go to www.portstrategy.com/news101

THENEWYORKER BARRY PARKER

PORTS: GREAT ENGINES OF GROWTH Yes, this column’s name refers to a place up north, but, like many native New Yorkers, I spend time in the “Sixth Borough”- otherwise known as Florida. With much of the Sunshine State’s population not far from the Atlantic or the Gulf, seaports are not as invisible as they are up north.

The dozen-plus ports in Florida, which are generally run by local entities, are facing attempts from the legislature in the state capital to assert state power to over-ride decisions made by governments at the local levels.

The folks in the legislature, concerned that one port, through local ordinances, wanted to restrict passenger traffic, authored a pair of bills that would bring about a measure of regulation from the state on matters related to which vessels could come in and which could not at ports across Florida. After some wrangling in the state’s House and Senate, the scope of the bill was

reduced down so that it would impact four ports. Commerce, and unimpeded flows of goods and people (if the pandemic ever ends) was at the heart of the argument from the bills’ sponsors.

They argued that today it might be limits on numbers of cruise ship vacationers, but tomorrow it might be restrictions on imports of automobiles.

8 Florida’s ports bring economic growth, and jobs and this needs to be trumpeted more

This scenario flies in the face of the economic reality that seaports are trying hard to generate revenue (that benefits their respective localities, and indirectly helps to fill state coffers) - and they try to do so in responsible ways. Ports point out

that peculiarities of particular cargoes do require a local approach, with examples being dangerous cargo prohibitions where a port is in a central part of town, or where certain industrial processing might impinge on drinking water quality, so therefore it is banned.

So now to the part about messaging and visibility. These may be clichés, but the ports are actually great engines of economic growth and jobs, and need to trumpet that to governmental officials, plus to the public at large.

This debacle in Florida (maybe that’s too strong a word, as the legislation may not make it through the various twists and turns in the State House) reinforces this need for ports to be pro-active in their narratives. The legalities get a little tricky, with local, state and Federal laws needing to be balanced, yet my bottom line is that four ports still included in the latest versions of the bills are probably four ports too many.

THEANALYST PETER DE LANGEN

Maritime freight flows are the result of past supply chain design choices - if companies design global supply chains this results in global freight flows.

Supply chain design choices generally lead to investments (in assets, partnerships and the like) and thus cannot be changed overnight. Hence, the current maritime flows are the result of past supply chain design choices.

When contemplating the future of maritime freight flows, the best clue is to look at current and future supply chain design choices. One increasingly clear trend in these choices is a move away from ‘global supply chains’ and to increasing regionalisation.

Globalisation has thrived based on a set of favourable conditions,

THE LOCALISATION TREND AND THE IMPACT ON PORTS such as low trade barriers, a stable global economy without major disruptions, cheap and reliable transport and consumers attracted to global brands. Some of these conditions have relatively recently turned less favourable.

Free trade policies are reverted.

For example, Japan incentivises moving production back to Japan and the US imposed trade barriers. In addition, companies are much more aware of the risks of disruptions and prepare for a less stable global economy.

Finally, consumers increasingly value ‘locally produced’ products, especially food but increasingly also products like clothing.

As a result, companies have regionalised supply chains, a

For the latest news and analysis go to www.portstrategy.com/news101

process that was started a decade ago, and plan to continue to do so. A recent Cap Gemini report found organisations expect to increase the share of local supplies to 43 per cent, from the current amount of 36 per cent and to serve markets more from locally situated plants (50 per cent up from 43 per cent). These supply chain design decisions may lead to faster growth of intra-regional flows than of global flows, especially of intermediate and finished products.

All of this creates an ‘opportunity space’ for Roll-on Roll-off (ro-ro) shipping.

While in Europe, the majority of intra-European maritime flows are

ro-ro outside Europe the lengthy and complicated border crossing procedures have impeded the development of strong ro-ro links.

If intra-regional trade processes are further streamlined, then ro-ro may be able to finally make inroads in intra-regional trade outside Europe.

Some container shipping companies have started to offer ro-ro services in addition to container services. For instance, CMA-CGM offers ro-ro connections between North Africa and South Europe. I would not be surprised if more carriers follow suit and the growth in this segment will turn out to be faster than the growth in the container segment.

APRIL 2021 | 15

BRAZIL: PRIVATISATION

BRAZIL ROLLS OUT PRIVATISATION PROGRAMME The latest phase of Brazilian port privatisation and terminal concessioning is rolling out.

Rob Ward talks exclusively to the country’s Minister for Ports and Waterways

8 The Port of Santos is the jewel in the Brazilian port privatisation programme crown

The past two years have seen contracts signed leading to Reais3.5 billion (US$630 million) of initial investment into terminals’ infrastructure and another Reais1.4 billion paid as down payments to local port authority and federal government coffers in Brazil.

Dozens more multi-million dollars contracts are up for grabs over the next two years taking in both port terminals and port authorities themselves.

Diogo Piloni, the Minister for Ports and Waterways, under the powerful all-encompassing Ministry for Infrastructure (MINFRA), advised Port Strategy in a recent interview that the concessioning process has been progressing “very well” and the next key sell-off will be the port authority for the port of Vitoria, where Brazil’s last surviving Brazilian owned box carrier, Log-in Logistica, operates a container terminal.

SANTOS PORT AUTHORITY SCHEDULED FOR EARLY 2022 Companhia Docas do Espirito Santo (or Codesa) will be auctioned off in November of this year, says Piloni, with the revised and final tender documents going out in August, but with preliminary rafts of information going out in May. This concession will pave the way for the much anticipated sell-off of the Santos Port Authority (SPA), scheduled for early 2022.

“Over the past two years we have completed 21 new contracts for port terminals and from them we will see Reais3.5 billion (US$630 million) invested in those terminals over the next three years as we are loading up the investment period into the beginning of the contracts,” explains Piloni.

“Right now (in early March) we are undertaking a roadshow to better inform some Brazilian infrastructure operators of what is on offer with the Vitoria (Codesa) and Santos port authorities and various terminals.” He added that PricewaterhouseCoopers is helping with the “modelling of the Codesa privatisation”.

16 | APRIL 2021

The Ports minister, who has been working very closely over the past 24 months with MINFRA Minister Tarcisio Gomes de Freitas (a close ally of Brazilian President Jair Bolsonaro, who is hoping to be re-elected in October 2022), says he is keen to attract Brazilian and international pension funds as well as international and Brazilian based Terminal Operating Companies (TOCs) to participate in forthcoming tenders.

Piloni notes that between the start of this year and through to the end of 2022 another Reais7.9 billion (US$1.40 billion) of investment is forecast for capital expenditure in Brazil’s ports.

On top of this, he says another Reais6.0 billion (US$1.06 billion) has been raised from private port developments outside the organised port areas (Companhias Docas).

WARM-UP TO JEWEL IN THE CROWN The Codesa privatisation is seen as the “warm-up act” to the privatisation of the jewel in the crown of the Companhias Docas, which is the Santos Port Authority (SPA) – formerly Companhias Docas do Estado de Sao Paulo – Piloni believes that the SPA could fetch as much as US$5.6 billion.

Those interested in bidding for SPA include a number of investment funds (including some based in Saudi Arabia) and some “Brazilian infrastructure operators”, but it is still not known if dredging companies will be allowed to bid – which was being suggested up until last year - as the concession rules are still being drawn up. Boskalis, Jan de Nul and Van Oord all have heavy involvement in Brazil.

A consortium called DAGNL, headed up by DTA Engenharia (an engineering and consulting company), and including Garín, Alvarez & Marsal (a global firm specialising in management turnarounds) and two local law firms, won the bid to draw up the privatisation concession document for the port of Santos, and that will be available by the end of this year, says Piloni.

For the latest news and analysis go to www.portstrategy.com/news101

BRAZIL: PRIVATISATION

‘‘

Santos Port Authority could fetch as much as US$5.6 billion “We have looked at some ports in the world that have been privatised, such as Melbourne in Australia, (back in 2015),” added Piloni. “It was sold back then for US$5.6 billion and, as it is a similar size to SPA, and handles around 130 million tonnes a year, like Santos, and three million TEU, compared with four million TEU at Santos, we could use it as a benchmark in terms of value.”

PRIVATISATION BLUEPRINT LAID OUT The blueprint for the privatisation of the Santos Port Authority (SPA), which changed its name from Companhia Docas do Estado de Sao Paulo, or Codesp, to SPA to make it more attractive to international investors) was laid out by Casemiro Tercio Carvalho, the former president of Codesp who is now working as a senior infrastructure partner at StonePartners, a consultancy firm.

Piloni said that a rule change in 2019 means that “bidding money” from several of the temporary and also the permanent concessions granted in Santos recently will go to the coffers of the SPA and that will, in turn, be included in the price of the bid for the SPA concession. This money, which already totals Reais800 million (US$142 million), will eventually have to be spent on infrastructure, he adds.

As one sardonic Santos veteran notes: “Watching the development of the port over the past few years has been like watching turkeys being fattened up for Christmas. I would add though,” he says, “that I really admire the way Piloni and Tarcisio are going about their business nationally, and I think they are two of the most competent people in the entire government.”

As well as these two port authorities, dozens of port terminals are also on the agenda for concessioning or reconcessioning out as the Brazilian government tries to both improve the laggard transport logistics sector in the country untry and also to raise much-needed funds for the exchequer equer which has plunged into huge debt owing to President ident Bolsonaro’s COVID-19 strategies.

He has largely ignored tackling the pandemic – with h the number of deaths and infections (278,400 and 11.5 million, llion, respectively, as of mid-March 2021) spiralling out of control ontrol – choosing instead to give away Reais524 (US$95) before efore then cutting it to Reais300 (US$53) and then, in March h this year to Reais250 (US$44) per month to Brazil’s poorer citizens, zens, encouraging them to go out and spend and keep p the economy moving and not worry about COVID-19, which ch he called a “little flu”.

at the University of Chicago School, may start seeing some of his privatisation push de-railed.

National assets not only in the port sector but also airports, railroad and highway franchises, are all being concessioned out, with an overall total of Reais201.9 billion (US$35.8 billion) of investment and fees forecast.

Part of Bolsonaro’s privatisation campaign has been to sell off more shares and assets of the state-controlled oil and logistics giant, Petrobras. This has led to dozens of Petrobras owned liquid bulk terminals being sold off.

Antaq, the Brazilian regulatory body for ports and waterways, held a virtual public hearing for the latest bidding process for a liquid bulk terminal in Fortaleza, under the auspices of Companhia Docas do Ceara (the local port authority).

Santos Brasil, the second biggest box terminal in Santos after BTP, has said it will bid for terminals during the current privatisation wave, including liquid bulk facilities, and raised Reais790 million (US$140 million) on the Sao Paulo bourse last September to assist with this quest.

“We are one of the largest container groups in Brazil, but we have identified other businesses that are growing at a faster pace, such as cargo related to agribusiness,” says Antonio Carlos Sepulveda, the CEO for Santos Brasil. “In addition, we live in a cycle of many contracts that are expiring and a proactive government. It is a great window of opportunity that is opening up.”

With this in mind Santos Brasil has put in a bid for four liquid bulk terminals in Itaqui, in the far north of Brazil. Itaqui also has a small deepwater container facility which might be considered for future activities by Santos Brasil (which also has box facilities in Vila do Conde and Imbituba as well as its home port of Santos, where Sepulveda has also declared an interest in two liquid bulk facilities up for sale later this year).

“The aim throughout this whole process is to see new, modern infrastructure being offered to the market and to provide more alternatives for the supply chain,” concludes Piloni. “The leasing processes are now in full progress, bringing more investments and attracting a greater diversity of agents to our ports, stimulating the economy and generating in many cases a more competitive and efficient intra and inter port environment.”

8 Diogo Pilon Piloni, Minister for Ports Po and Waterway Waterways, Ministry for Infrastructure, Brazil, a key architect architec of the latest pha phase of port privatisat privatisation

A VOTE WINNER Brazilian debt currently stands at US$1.99 trillion and nd is running at 98.01% of GDP, which is heading into crisis territory ritory but Bolsonaro knows the hand-outs are a vote winner.

“Bolsonaro has borrowed heavily to fund his Populist pulist policies and his loyal base are, on his irresponsible advice, dvice, not taking the pandemic seriously,” says one shipping agent based in Rio de Janeiro. “With the 2022 Presidential elections tions campaign already beginning he needs to fund his campaign, aign, hence the sell offs of port and infrastructure assets, as well ell as Petrobras assets. However, some of the military members ers of his government are not at all keen on selling off these assets ssets ance and as a result Paulo Guedes, the free-market finance tarist minister who was taught by Milton Friedman the monetarist

For the latest news and analysis go to www.portstrategy.com/news101

APRIL 2021 | 17

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SANTOS: PRIVATISATION

3D-CHESS IN SANTOS Rob Ward examines in depth the forthcoming Santos port privatisation and charts why the process is going to be very complicated “The situation in Santos today is very complicated with regard to the next phase of privatisation,” says one veteran port consultant based in the Brazilian port city. “In fact, you can compare it to a 3-dimensional game of chess,“ he stressed.

The port of Santos – the continent’s largest for containers, with 4.23 million TEU handled in 2020, up by 1.6 per cent – is girding itself for the privatisation of both the port authority (Santos Port Authority, or SPA), and various vacant or set-forrenewal terminal concessions. As ever this key port, which aims to become THE hub port for East Coast of South America in the near future, is wrapped up in the usual political and vested interest turmoil for which it has long been famous.

THE NEW “SUPER-TERMINAL” For nearly a decade, the area at Saboo, close to the historic downtown port area, has been earmarked for a new “Superterminal” which would comprise the old terminal successfully operated as a car terminal by Deicmar, the Rodrimar box terminal (which peaked in 2011 with 203,410 TEU and a 7.5 per cent market share but has been closed since 2017) and Citrosuco, a fruit terminal.

These facilities comprise around 270,000m2 and are sited right next door to Brasil Terminal Portuaria (BTP), the joint venture between MSC Line/Terminal Investment Limited (TIL) and APM Terminals (APMT), which handled 1.75 million TEU last year (already beyond its nominal annual capacity).

The facility replaced Santos Brasil’s Tecon Santos facility as Brazil’s leading terminal for boxes three years ago. BTP currently has a 43.7 per cent share of the market (up from 40 per cent in 2019).

This new “Super Terminal” concession has been described by several Santos stakeholders, including Leandro Carrelli Barreto, a director with the Solve Shipping consultancy, as the “jewel in the crown” or “A Ultima Noiva Linda” (the last beautiful bride) and is the stand-out offering of the current wave of Brazilian port concessions.

“This is the most valuable of all the facilities up for sale and will attract a lot of attention both nationally and internationally,” Barreto told Port Strategy.

The “Super-Terminal” is a coveted enough prize in itself, but then came the startling news in early March that not only would Ecoporto Santos (the box terminal turned general cargo facility) not be allowed to bid for the new facility – it lies adjacent to the southeast of the Saboo area just as BTP is to the northwest – but also that it would not be granted an extension when its own concession ends in 2023. Ecoporto used to be the third biggest box terminal in Santos and handled a peak of 325,000 TEU back in 2012 (a 16.4 per cent share).

Luiz Araujo, Commercial Director, Ecoporto Santos, told Port Strategy that Ecoporto had been “fighting to renew the contract since 2014”.

“It’s very disappointing news to be told we won’t get our extension because they want to create one more big container terminal,” says Araujo, who has been working at the Ecoporto Santos Terminal (and its previous incarnation as Tecondi) for more than 20 years. “It also does not make any sense because we need more general cargo capacity not more for boxes.”

Ecoporto Santos is currently saddled with three unused

ship-to-shore gantry cranes, which cost more than US$25m recently and have barely been used. It is understood that Ecoporto will be partially compensated for these units if the concession does expire and the equipment is used by the incoming operator.

Diogo Piloni, Minister for Ports in Brazil, confirmed to Port Strategy that Ecoporto’s concession would not be renewed as the Ministry of Infrastructure (MINFRA) wants to create a “very large terminal” to be concessioned out to the highest bidder.

“We carried out our detailed analyses and decided we need one more big container terminal of 400,000m2 in Santos because that, added to a breakthrough in cabotage legislation (BR Do Mar), will greatly assist Santos in becoming THE hub port for ECSA,” he confirmed.

8 BTP are hot favourites for the “Super Terminal” in Saboo, Santos but there are monopoly issues to overcome

WHO WILL WIN? So who will win the bid for the new area, dubbed the “SuperTerminal” in Saboo? So far a number of international companies have shown an interest including Hutchison Ports, PSA of Singapore, ICTSI and China Merchants Port Holdings (which already has control of TCP in Paranagua, Brazil’s second largest port for boxes). In addition, Santos Brasil and, of course, BTP are very keen.

Hot favourite is BTP but as this will give it a massive terminal of 830,000m2 if added to their existing terminal, it seems likely that this will cause the Brazilian monopolies watchdog, CADE, to step in with a close inspection of the regulations. However, to bypass CADE, say several reliable Santos sources, one potential scenario is for APMT and TIL to split their joint venture, with APMT keeping BTP for mostly Maersk Line vessels and TIL taking over the new “Super Terminal” on behalf of MSC.

‘‘

Ecoporto’s concession will not be renewed so a “very large terminal” can be concessioned to the highest bidder

For the latest news and analysis go to www.portstrategy.com/news101

APRIL 2021 | 19

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UK: FREEPORTS

HOW DO PORTS FIT IN? The UK Government has given the go-ahead for the creation of eight Freeports in England.

What does that actually mean? Felicity Landon reports They are pan-regional, cover areas of up to 45km in diameter and must include either a seaport or airport. They can contain up to three tax sites adding up to a maximum total of 300ha. In addition, they could offer a number of Customs zones located at ports, airports, rail terminals and other locations. Plus, some parts of the concept are along the lines of the ‘old’ Freeport model that ran from 1984 through to 2012 in the UK. FREEPORTS - THE RIGHT NAME? We can start by asking this: Is ‘Freeport’ really the right name?

For a start, there are no discernible benefits from a Customs perspective – Customs has moved on, and the same level of benefits can likely be accessed via established Customs warehousing or Inward Processing Relief.

Secondly, the earlier Freeports were distinct fenced sites, located either next to ports (with the exception of Liverpool Freeport within the Port of Liverpool) or airports and operated mostly by the asset owner. The new model is led by regional public sector bodies, with the key asset owners participating; the port is just one part of the larger picture.

Frank Robotham, who managed the highly successful Liverpool Freeport in the 1980s and 1990s, says: “The new Freeports are not necessarily about attracting business to ports but are about recognising the active and supporting role that ports can play in this regional Freeport policy to attract inward investment and especially create jobs, and complement the government’s industrial strategy and green agenda. What is interesting is that the port is being seen as a place for innovation in transport, technology and alternative fuels.”

As an advisor for the successful Liverpool City Region Freeport bid, Robotham says that in discussions with industry, it was easier to focus on the value of the policy if the word ‘Freeport’ was not used regularly, because otherwise people tended to assume the focus was on ports rather than on the potential and value of the tax site benefits in particular. “Also, the accountability to Government on the development and success of each Freeport will be through the respective regional Freeport Governing Bodies (FGB) now to be set up by the public sector,” he says.

INNOVATION AND TECHNOLOGY Freeports are seen as places where innovation can take place for different technologies which can either be portrelated or transport-related, to support projects being developed within the region, says Robotham. “This is clearly evident with the number and range of energy-related companies associated with the bids building upon existing strategies and it will BE interesting to see if wider collaboration is secured to use ports as centres of innovation directly.”

For example, Freeport East includes the ports of Felixstowe and Harwich and is also working with Ryse-Hydrogen and EDF, operators and developers of the nearby Sizewell nuclear power station, to develop a Hydrogen Hub. Jo Bamford, executive chairman of Ryse-Hydrogen has said: “The Freeport East Hydrogen Hub will support the creation of thousands of green jobs and feature innovative uses of hydrogen for zero emissions buses, construction

equipment, marine and agriculture. Crucially, these UKmade Net Zero technologies can be in use within 12 months and will place East Anglia at the forefront of the global hydrogen economy.”

The Thames Freeport sees the Port of Tilbury and DP World London Gateway working together – and also features Ford’s Dagenham site. Graham Hoare, Chairman and Executive Director, Business Transformation, Ford of Britain has said: “The Thames Freeport will be a new centre of excellence for the country as we electrify, automate and digitise our future. The Freeport provides Ford with a great opportunity as a testbed for a variety of customer-focused mobility technologies and other business opportunities at Ford Dagenham in the future.”

While there must be a port or airport within the Freeport schemes and there is a requirement to have one location designated a ‘Primary Customs Zone’, that zone does not have to be located at a port or airport.

Robotham says it is still early days in terms of understanding the potential of the Freeport policy: “The devil is in the detail.

The interpretation and implementation of the tax and Customs rules need to be set out in order for the FGBs and the stakeholders to fully understand the offering to investors and users.”

The benefits on offer range from suspension of employers’ National Insurance contributions and capital tax allowances on investment, to relief from business rates and Stamp Duty.

Many of the tax benefits run to 2026 and could be extended, depending on the success of the policy in the first four years. Clearly, the new FGBs will need to mobilise very quickly to deliver meaningful operations in that timeframe.

The rolling out of the Freeports policy is timely for a ports industry facing challenging trading conditions, says Robotham. “Whether these Freeports are just a rebranding of enhanced Enterprise Zones or not, the policy does give the port companies an opportunity to be more involved in shaping the economic success of their region with potentially direct commercial opportunities to both strengthen and diversify their port assets. Time will tell how successful it will be – but for the port companies involved, it’s a win already.”

For the latest news and analysis go to www.portstrategy.com/news101

8 Freeport East, including the ports of Felixstowe and Harwich, is working with partners to develop a Hydrogen Hub

APRIL 2021 | 21

ELECTRIFICATION & DECARBONISATION

ELECTRIFICATION: GOOD TO GO Progressively the door to port electrification projects is opening up. System supplier Siemens relays up-to-the-minute thinking, experience and plans

8 Shoreside power: increasingly being viewed as essential not a ‘luxury’

What a quaint expression ‘cold ironing’ seems. The term first came into use when all ships had coal-fired engines; while a ship was in port, there was no need to continue feeding the fire, so the iron engines would cool down and eventually become completely cold.

In today’s world, ‘cold ironing’ is the term used to describe the supply of electric power to a ship while it is alongside.

The world is moving on – we hear more about shore power these days!

This matches a significant shift in attitudes. In the past few years, the topic of ports, sustainability, decarbonisation and electrification has become mainstream.

Not so long ago, it was more about hopes, plans and aspirations.

Today, it is all about real projects.

The chicken-and-egg conundrum of shore power appears to be easing. Ports worried about investing in shore power, only for vessels not to use it – and conversely shipowners investing to enable their ships to use shore power only for the facilities to be lacking in the ports they visit – not for too much longer with such scenarios, we hope.

Demand for shore power is accelerating. Vessel owners and operators are telling ports ‘you must have it,’ rather than ‘it would be nice to have.’

In the main, shore power discussions centre around the needs of cruise ships and ferries, which require very high amounts of power.

Siemens’ SIHARBOR shore connection provides onshore power via a cable management system in ports worldwide for these types of ships. SIHARBOR’s has solutions for all sizes of ships.

22 | APRIL 2021

However, attention should also be paid to smaller vessels, which can often ‘plug in,’ and draw far less power. Siemens can report increasing demand for shore power for smaller vessels, such as offshore supply vessels for wind farms.

These vessels are serving renewable power projects, so it doesn’t make sense to be pumping out diesel when they are tied up!

POWER SOURCE? Alongside shore power, the electrification of port assets and equipment has been gathering pace. But where will the power come from? And can ports rely on it? Ports are under pressure to make green choices, but they also need to be confident they have opted for the best, futureproof and future-ready projects.

Should all of the above sound daunting? Well, yes and no!

There are challenges when it comes to electrification and decarbonisation, but there are also great solutions – many of which can make a port more efficient and more cost-effective, as well as far more environmentally friendly.

A big part of what Siemens does is to provide customer confidence through our expertise, advice, solutions and ongoing support on electrification, digitalisation, connectivity and all things related. There is no ‘one size fits all’: what’s appropriate for a port will depend on trade patterns, vessel

‘‘

The chicken-and-egg conundrum of shore power appears to be easing For the latest news and analysis go to www.portstrategy.com/news101

ELECTRIFICATION & DECARBONISATION

‘‘

Microgrids maintain the balance between generation and consumption types, cargo, layout, activities away from the quayside, present power supplies, relationships with utility providers and local conditions.

Geography means that ports are very likely to be at the end of the power distribution line, with little opportunity for the utility provider to boost supply without hefty investment in new infrastructure (likely to be shouldered by the port!). The alternative is to step away from the centralised option and develop some in-house solutions, moving generation to the local level to provide resilience while also helping meet increasing decarbonisation targets and looming delivery dates.

Siemens describe microgrids as ‘power generation made smart.’ They offer a reliable alternative wherever a stable power supply is needed, by pulling together multiple component solutions and tackling challenges throughout the system.

Grid edge and microgrid solutions can increase the operational efficiency of a port but also go much further, enabling it to become self-sufficient and even to provide excess power generated into neighbouring industry and communities, hence bringing in a new revenue stream.

Microgrids also provide much-needed grid stability, compensating for any fluctuation in renewable generation being fed in.

Microgrids maintain the balance between generation and consumption and can operate on and/or off grid. They are being taken up by more and more industrial operators, to produce the power they need cost-effectively, sustainably and reliably. Microgrids can use a variety of energy sources, including solar, wind, hydroelectric, biomass power and hydrogen, and a combination of generators, power units, storage and control systems work together to ensure the security of supply.

DRIVERS TO CHANGE There are a number of drivers to this, including environmental pressures on emissions and air quality, and rapid advances in digitalisation. Specific to the UK, there is a requirement for ports to produce air quality strategies; the ending of the ‘red diesel’ subsidy which will increase the price of diesel; and the roll-out of Maritime 2050, a long-term strategy for the UK’s maritime sector.

Whichever way you look at it, the point is approaching when it will no longer be acceptable to emit diesel fumes when there are much better alternatives.

The UK government’s Ten Point Plan for a Green Industrial Revolution, announced in November 2020, sets out activity and investment from the government to support the transition to net zero.

The plan includes £20m of funding for a Clean Maritime Demonstration Competition, the idea of which is to lay the foundations for a network of ‘real-world’ projects to kick-start government investment in decarbonising the maritime sector.

Siemens is talking to numerous maritime sector customers about this competition and possible decarbonisation demonstrator feasibility studies. This is nothing new – the company has been working with industry and academia for years, and a port is no different.

We have, for example, been working with the UK’s Keele University, which has a goal to divest from fossil fuel and become carbon neutral as a campus of 350 buildings and

12,000 students and staff by 2030. The SEND (Smart Energy Network Demonstrator) project features a microgrid solution, for renewable energy and smart energy management.

Keele’s project, and those likely to emerge from the Clean Maritime Demonstration Competition, demonstrate what can be done. However, it is important to emphasise that the robust industrial equipment and technology required is available now. There is no need to reinvent the wheel – it’s all there.

What is different, is the way in which data analytics can be used to optimise onshore power solutions, energy storage, power conversion and so on. A lot of the innovations are about predictability, prediction-based monitoring, cloud analytics, and using a digital twin to simulate proposed changes.

Another important factor is the advance of 5G. We have just launched the world’s first industrial 5G router for industry – this could transform a port’s operations by connecting hundreds of devices to the cloud to operate and monitor thousands of operations remotely.

8 Coupled with rising interest in shore-side power there is growing interest in sourcing power at the local level and there are a growing number of options for achieving this

NO NEED TO FEEL PRESSURE Ports that are still not convinced can be reassured that there is no need to feel pressurised into doing everything in one go.

They can de-risk their journey to electrification, and their pathway to net zero.

Pilot projects can be a helpful start, perhaps testing on one crane to see how that works. It is good to look for ‘lowhanging decarbonisation fruit’ in the port.

Using a digital twin can provide a holistic view for the short/medium or longer term. By incorporating simulation, data analytics and machine learning capabilities, digital twins will demonstrate the impact of design changes, usage scenarios, environmental conditions and other variables – eliminating the need for physical prototypes, reducing development time and improving the quality of the final product or process.

Port operators can be reassured that this is tried and test technology, already in use by the automotive, food and beverage and aerospace sectors, all of whom have been gathering and analysing data from their equipment and assets for years. The technology is proven, commercial and environmental benefits revealed. The question is more – why would you not go for it?

8 This article was authored exclusively for Port Strategy by Lynsey Jeffers, Siemens Ports & Airports Sector Lead and Graham Foster, Siemens UK Head of Marine and Defence

For the latest news and analysis go to www.portstrategy.com/news101

APRIL 2021 | 23

ITALY: CONTAINERPORT DEVELOPMENT

DOWN, BUT SPENDING BIG

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Despite being hit hard by COVID-19, many gateway container ports in Italy continue to invest in capacity. Accommodating bigger vessels is the main catalyst, A J Keyes reports

PORTS REFLECT NATIONAL ECONOMICS The north-south split in the Italian economy is reflected by the country’s gateway ports. The Ligurian Sea area is where the largest volume import-export container ports are located, which support the more industrialised part of the country.

At the end of 2019, Italy’s container ports in the Adriatic, Tyrrhenian and Ligurian sea regions handled a total of 7.87 million TEU. This reflected annual growth of 3.2 per cent per annum since 2000, with year-on-year total volume increases since the Global Financial Crisis of 2009. This occurring despite the economic stagnation.

The impact of COVID-19 can easily be seen. As Figure 1 shows, based on available data for these ports for 2020, the same ports recorded total throughput of 6.81 million TEU. The drop in activity was most intensely felt in the Ligurian Sea region. The 2019 total of 4.87 million TEU has fallen to 4.15 million TEU – a decrease of 14.8 per cent.

By way of comparison, the Tyrrhennian Sea area ports saw a drop of 11.7 per cent, from the 2019 total of 1.18 million TEU

24 | APRIL 2021

to 1.05 million TEU, while the Adriatic Ports handled 1.81 million TEU for 2019 and 1.61 million TEU for 2020, a decrease of -11.2 per cent.

It seems clear that the economic situation before COVID-19 was one of general stagnation and limited growth in the Italian economy. However, the onslaught of the pandemic in 2020 has caused these existing issues to expand their influence, bringing more challenges for ports and supplychain partners in seeking container volume growth.

NO PORT WINNERS IN 2020 Consequently, it is no surprise that 2020 can be summed up as a bad year for port throughput in Italy, with losses generally incurred by all major ports compared to 2019. For example, in the Ligurian Sea area, Livorno volumes in 2020 were down by -12.4 per cent, Genoa endured an even larger decline of -19.5 per cent and La Spezia’s drop was -15.2 per cent.

Figure 1: Total Container Port Volumes by Sub-Region in Italy to 2020, in ‘000 TEU 5%,,, 4%,,, 3%,,, 2%,,, 1%,,,

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Italian import-export container ports are investing strongly in deeper water and terminal infrastructure, even though the country’s economy continues to see limited growth.

Why do this? The answer is a simple one – to compete for ever-larger container ships.

According to the Organisation for Economic Co-operation and Development (OECD), over the past decade the Italian economy “achieved a modest recovery, supported by global economic conditions, expansionary monetary policy and structural reforms. However, the recovery has recently weakened and Italy continues to suffer from long-standing social and economic problems.”

In the eight years prior to COVID-19, there was, on average, zero economic expansion in Italy (OECD figures) and the country is now facing a significant contraction – how has port development fared in this climate?

8 Vado Ligure brings more capacity to the Ligurian Sea region – Phase One opened around a year ago and Phase Two will open this year

Note: Adriatic Sea = Venice, Trieste, Ravenna, Ancona/ yrrhenian Sea = Naples, Salerno, Civitavecchia/ Ligurian Sea = Livorno, Genoa, La Spezia, Savona. Gioia Tauro is excluded Source: Ports, OECD, Datamar, WSP

For the latest news and analysis go to www.portstrategy.com/news101

ITALY: CONTAINERPORT DEVELOPMENT

‘‘

Accommodating larger container vessels is the main driver of port development By comparison, in the Tyrrhenian Sea area, Naples recorded a decrease of -21.6 per cent, while across the Adriatic Sea region, container traffic in Venice fell by -15.7 per cent and at Trieste total container activity was down by -12.1 per cent.

Of course, it is necessary to put 2020 into perspective. Italy suffered some of the worst consequences of COVID-19 of any European country and its ports have clearly been impacted.

However, there were already some economic challenges, so the onslaught of the coronavirus pandemic has further exacerbated existing issues. Yet, almost ironically, the situation has not slowed the desire to keep investing in terminal capacity across a number of the major facilities.

TERMINAL INVESTMENT CONTINUES In Livorno, the new Europa Platform is a deepwater facility that will ultimately offer between 1.6 – 2.0 million TEU per annum for larger container ships. Construction is forecast to commence in 2022 and the facility will provide a water depth of 18m (with 20m possible) and at full development up to 3000m of quay line.

Current estimates have operations slated for mid-2024 and a private operator is being targeted to provide investment in landside and shore-side equipment. To date, no deal has

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Figure 2: Growing Ship Sizes in Italy 2005-2020, in TEU %' $$$ %& $$$ %$ $$$ * $$$

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been reached, but there is interest. “There are at least three interested groups who are analysing the project,” stated Stefano Corsini, President, Port Authority of the Northern Tyrrhenian Sea. This position compares with the newly-opened Vado Ligure, in the province of Savona, north west Italy, which commenced operations in Q1 2020. The terminal is a 50-year joint-venture concession between APM Terminals (50.1 per cent), China Cosco Shipping (40 per cent) and Qingdao Port International (9.9 per cent), which brings a terminal operator and shipping line volumes.

The container handling infrastructure is part of a wider multipurpose operation, which includes ro-ro and reefer/ fruit cargoes. Of the ultimate 1.1 million TEU of annual container handling capacity, the semi-automated container

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APRIL 2021 | 25

ITALY: CONTAINERPORT DEVELOPMENT terminal will have 700m of quay and 860,000 TEU of capacity.

Phase 2 of the terminal is now under development and is scheduled to be completed in the first half of 2021.

The natural deep water that the terminal sits adjacent to (a distinctive feature of Savona-Vado harbour) allows the latest-generation container vessels to berth safely and both Maersk Line and Cosco ship calls are expected to ramp-up – they will be needed to fill this additional regional capacity.

Major Italian port operator, Contship Italia has confirmed it is adding more than 1.8 million TEU of new handling capacity by 2024. Of this, substantial investments are planned at La Spezia Container Terminal (LSCT), the company’s main container terminal in Italy.

The development project will start at the Ravano terminal, the addition of a new 524m quay, equipped with five ship-toshore (STS) cranes offering a lift capability 25 rows across on deck. The aim of this first phase is to add 300,000TEU to the current handling capacity and the operator hopes it will realise an “additional vessel capacity of 300-400 TEU per call.”

According to Contship Italia, there is also another key objective from this investment: “To increase the share of rail transport from the current 32 per cent to 40 per cent of the modal split.”

There are ongoing developments in Genoa. PSA Investments (a subsidiary of PSA International Pte Ltd) and Gruppo Investimenti Portuali (GIP) have gained approvals from the Genoa Port Authority for the proposed restructuring of their Genoa-based operations that will see PSA becoming the majority shareholder in, and obtaining management control of, both PSA Genova Pra’ and the Southern European

26 | APRIL 2021

Container Hub (SECH) terminal. David Yang, Regional CEO, PSA Europe, Mediterranean & the Americas, explains the benefits of the new arrangement. “It will enable the merged platform to better serve the needs of shipping line customers, and ultimately the increasingly demanding logistic requirements of importers and exporters in the immediate and extended hinterland.”

Also underway at the port, the Calata Bettolo container terminal was due for completion in April 2016 but is now scheduled for Spring 2021. It will comprise a 725m quay serving a 180,000km2 terminal area offering an annual capacity of 550,000 TEU. Itatermineaux Sarl and Terminal Investment Limited Sarl, both part of the MSC Group, hold the 33-year concession (to 2045) for the terminal.

INVESTING TO SERVE BIGGER SHIPS A major catalyst to Italian port expansion is the requirement to serve larger ships – specifically, to keep pace with the bigger ships lines want to call.

This is shown in Figure 2, which highlights the growth in average ship sizes on both US and Asian trade routes calling to Italy in the period between 2005 to 2020. The big ship trend is clear. And, in turn, there is a commensurate requirement for deeper water, larger cranes and longer quays.

The requirement to invest in Italy is now driven not by yearon-year demand expansion but, rather, the changing requirements of shipping lines. This places further financial pressures on an already stressed sector and it is seeing some projects struggle to gain traction – the proposed offshore terminal platform for Venice being one example.

For the latest news and analysis go to www.portstrategy.com/news101

ITALY: GROWING MARKET REACH

PUSHING THE BOUNDARIES Key Italian ports have long expressed the ambition to extend their hinterlands.

AJ Keyes reviews progress, plans and what obstacles remain

8 Italy’s ports need rail to bolster throughput in conjunction with distant markets but obstacles remain

The establishment of effective and reliable rail intermodal and haulage links to/from ports to north Italy and further afield to Switzerland, Austria and South Germany offers potential for increased cargo for many Italian ports, but only if there is suitable intermodal rail.

Currently, the need to serve these more distant locations via Italian ports is paramount because the country’s own demand is insufficient due to stagnating and limited economic growth (as evidenced in the preceding article).

While this has long been a priority for the Ligurian ports in particular, there is now added impetus for the need for to reach additional discretionary markets accessed via rail, despite acknowledging that freight moving by road remains the dominant activity.

Intertwined with this ambition is recognition of the need to fight back against the established trend of sizeable volumes of Asian cargo moving to Milan and Turin, for example, via transit through Rotterdam.

This geographical region also has a high concentration of logistics infrastructure (freight villages in Bologna, Verona, Padua, Torino and Orbassano – see Panel), linked to major ports, such as Genoa, Trieste, Venice, etc. These importexport facilities are all needed to help cargo flows, but also confirm that the shorter distances mean that it is road and not rail that is the dominant transport system.

Of course, there have been ‘bump’s in the road recently. In August 2018, a heavy storm engulfed Genoa and its port and the Morandi bridge, which crosses the Polcevera river in the centre of the city and represents a vital section of the highway system connecting France and Italy. A supporting tower and a 210m (690ft) section of the bridge were destroyed. The tragedy caused a large loss of life and subsequently impacted freight flows for two years until the replacement was constructed.

Figure 1: Freight Transport by Rail in Italy in Million Tonnes Km, 2008-2019

ROAD DOMINATES FREIGHT USE In Italy, approximately 90 per cent of goods and passengers move by road, confirming the importance of this mode of transport to ports and cargo shippers. It is nevertheless widely recognised that limitations exist in terms of viable distances covered by truck. It is widely accepted that areas beyond 500km are more economically viable via rail, despite the fact that the environmental benefits of rail over truck kick in over shorter distances.

On a national basis, the north of Italy is the heart of the country.

It is thus no surprise that the motorway system is very busy and often congested with freight trucks, due to the presence of many industrial areas, complemented by local demand from the Veneto, Emilia Romagna and Lombardy areas.

For the latest news and analysis go to www.portstrategy.com/news101

Source: Eurostat

APRIL 2021 | 27

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APRIL

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ITALY: GROWING MARKET REACH

Port

Current Container Rail Use*

Rail Initiatives

Rail Issues

Genoa

10%

Voltri Terminal Europa has strengthened its railway park with a new track

Terzo Valico - high capacity line to Milan/ Lombardy activity is slow

La Spezia

35%

Terminal expansion to include rail capacity – specific details being finalised

Pontremolese new rail upgrade already delayed by two years

Livorno

N/K

Horizon 2021 - a €200 million project linking the port with inland terminal (Interporto Vespucci)

Improvement of track through 20km of tunnels for 750m-long high-cube trains on route to Bologna ongoing

Savona - Vado (APM Terminals/Cosco)

Targeting 40%

Terminal has good on-dock infrastructure

Rail connectivity and limited capacity after leaving terminals

There are also impediments with regard to rail. For example, the rail from Milan to the north through the Alps carries both freight and passengers with the line only splitting before the Monte Olimpino tunnel plus there is a change in voltage at the border. Clearly, rail freight potential is restricted by capacity and efficiency, promoting freight to stay on the road.

LIMITED RAIL FREIGHT ACTIVITY The Italian rail network consists of 24,227km of track but only 16,723km is currently active. Of this total, approximately 45 per cent (around 7505km) is double-track line and electrified.

Rail freight movements in Italy currently account for just 14 per cent of total rail activity and there are long-standing investment and operating issues across the Italian rail network. One local freight forwarder, who did not wish to be named, explains: “The better quality rail facilities are all in the north, but the high shunting costs remain a big issue for cargo wanting to move via the rail network. This is a major disincentive, especially when a marine terminal invests in good facilities but as soon as cargo leaves the terminal it gets held up in an inefficient rail system.” Clearly, there are both physical capacity and operational issues.

This scenario may help to explain why overall use of rail for freight movements in Italy is seeing little, if any, growth. As Figure 1 shows, based on million tonnes kilometres, Italy saw a drop in demand due to the Global Financial Crisis in 2009 and despite some subsequent growth, activity has been declining since 2016.

Greater use of rail is definitely desired by most major ports in Italy. One known target of the new AP Moller-Cosco jointventure Vado Gateway (Vado) terminal is to become a hub for cargo moving to the northern part of the country, as well as transit markets to the north of Italy.

To meet these aims, there is a core need for effective intermodal rail services in Italy. The target for this new facility is to transport 40 per cent of all containers arriving or departing to/from the facility via rail. It is understood that initially around four or five trains are expected to connect Vado with several intermodal hubs in the North and East of the country, including Milan and Padova but subsequently

Table 1: Rail Investment/ Improvements to benefit key Ports of Italy

Note: * = includes estimates.

Source: Ports, terminal operators, CIPE, Italian State Railways (FS),

the number is forecast to ramp up progressively.

This objective is reliant upon having access to efficient rail infrastructure which is currently under development in Vado and the surrounding areas. APM Terminals/Cosco claim that “rapid access” to inland North Italy regions and into Central Europe is possible. However, this is denied by local industry sources in Italy who state that this “is not particularly true” at the present time.

Table 1 offers a summary of rail investment/improvement projects that benefit key ports in Italy which are well positioned, shown to target the north of Italy and cross-border destinations in Central European countries.

The desire on behalf of port and terminal operators to extend their respective hinterlands beyond Italy remains manifest. When new facilities are developed, such as the Vado Gateway, or expansion investment is made, such as in La Spezia or Livorno, rail is an integral part of the process.

These plans ensure that containers are handled efficiently at the port or terminal, but then the issue is the speed and general efficiency via which cargo can move to distant locations in the hinterland.

So, is it a lack of spending that is the impediment? Well, possibly not. Italy’s Inter-ministerial Committee for Economic Programme (Cipe) approved €28bn in additional funding for infrastructure investment by Italian State Railways (FS) in 2019 and the national infrastructure manager Italian Rail Network (RFI) update of its 2017-2021 investment programme was approved with an additional €15.4 billion for rail investment – with €12.5 billion promised for the road network.

There are some positive developments being made.

Livorno is, for example, gaining a rail link between the port and the adjacent inland terminal (Interporto Vespucci) that will ensure access through 20km of tunnels for 750m-long trains with high-cube containers on the network to Bologna.

However, similar projects coming to fruition are slow.

There are strong levels of investment in the Italian rail network but at the same time there are delays to projects coming to fruition. With a need to successfully target more distant discretionary hinterlands, these are delays that the country’s ports can ill afford.

The freight village catalyst There are other initiatives that rely on good inland access, which also present strong potential to increase cargo volumes for ports. One of these is the Freight Village System. A freight village is a defined area within which all activities relating to transport, logistics and distribution of goods, both for national and International transit, can be undertaken.

A freight village location is, ideally, served by a multiplicity of transport modes - road, rail, deep sea, inland waterway and air. The location of freight villages is based on a range of factors, but connections with major ports is definitely an influential part of the decision-making process.

Italy is one of the biggest proponents of the Freight Village concept within the

For the latest news and analysis go to www.portstrategy.com/news101

European Union region. There are 23 freight villages in Italy, with the most significant segment located in the North, particularly in Veneto (Verona, Rovigo, Padova), in Emilia Romagna (Parma and Bologna) and in Piedmont (Torino, Rivalta Scrivia).

It is clear that freight villages have a positive role to play in consolidating and expanding Italian port throughput.

APRIL 2021 | 29

GRAIN TRADE

NEW PATTERNS AND PRIORITIES Grain trade volumes are increasing, prices are climbing and larger vessels are wanted.

Andrew Penfold considers the implications for port investment

8 The recently commissioned Cargill and M.V. Cargo grain terminal at Port Pivdenny, Ukraine features a 16m draught alongside its 420m quay and has the ability to load a Panamax vessel in 1.5 to 2 days

World trade in grain has accelerated rapidly in the past few years. In addition to underlying demand growth, there has been a far-reaching change in the direction of trade.

This, together with rising grain prices and freight rates, seems certain to have a significant impact on the bulk port sector.

As always with the grain trades we are seeing a combination of economic and political factors driving demand, with the role of China – and its sourcing policies – set to further complicate the outlook.

‘Grain’ covers a diverse range of commodities from wheat – mostly for human consumption – to the various feedgrain and oilseed commodities driven by meat production. In poorer parts of the world with rapidly expanding populations, wheat has been the primary driver of demand growth, whilst higher living standards have driven increased feedgrain (and oilseed) demand.

Total volumes for these commodities over the past five years are detailed in Figures 1 and 2.

According to the US Department of Agriculture (USDA), total volumes will exceed 900 million tonnes in the current 2020-21 crop year – this representing a 13 per cent increase in demand over a five-year period. Some further expansion can be anticipated in the immediate future, with this superimposed on the basic driving forces of increased population and improved living standards. While, however, demand is steadily increasing, this market is the most volatile of the dry bulks with short term climatic factors shaping import demand and export availability respectively with the major importers and suppliers.

There has been some reduction in wheat supply estimates, with smaller crops in Argentina and China more than offsetting a larger crop in Russia. Global consumption has been boosted by higher demand for lower quality wheat for

30 | APRIL 2021

the feedstuff sector. The outlook for global trade is higher with this driven by increasing exports from Canada, the EU and India. This has more than reciprocated lower exports from both Argentina and Russia. On the demand side, China continues to fund much higher volumes. These developments have seen firming prices across the board.

In the coarse grain sector, there has been some lower production of maize (corn) in the major suppliers – especially in the US – and this has more than offset increased output in both China and India. Lower production in Argentina and the US will hit trade volumes in this sector in the next few months, with this rebalancing reflected in higher price levels.

Underlying global demand remains very strong.

Global 2020-21 oilseed production is forecast at 594 million tons. This sector has also been hit by declining availability in both the US and Argentina. Global oilseed exports are

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For the latest news and analysis go to www.portstrategy.com/news101

GRAIN TRADE placed at some 193 million tonnes for 2020-21 with additional strong demand noted in the oilseed meal sectors.

WHERE IS THE GROWTH COMING FROM? Within an expanding demand profile for wheat there have been some significant shifts in market shares. For wheat, Canada has continued to increase production and exports, with this primarily driving demand via the British Columbia elevators.

The EU is a highly volatile swing supplier given the widespread use of marginal croplands.

The real driver continues to be Russia and the Ukraine.

Both markets are continuing to benefit from the reorganisation of the agriculture sector, with this being manifested in increased yields and much higher export availability. Indeed, in the medium term the Ukraine’s exports will be constrained by port capacity as much as production levels – this is a key area of port interest.

On the demand side, China is continuing to account for the larger part of growth, with import demand more than doubling to nearly nine million tonnes this year and strong demand growth has also been noted for Turkey. In both cases, the addition of new grain elevators in the ports is a pressing issue.

A similar broad trend is noted for coarse grains, with China dominating growth in this sector. Total import volumes will reach over 32m tonnes this year – a 100 per cent increase in five years. Demand for coarse grains is broadly-based with many major markets recording significant incremental growth.

Overall world trade has grown by some 23.2 per cent in five years, with this being the most dynamic sector. On the supply side, the USA remains by far the largest aggregate supplier, but recent trends also show strong expansion in exports from both Argentina and Brazil. This is also placing pressure on the export capabilities of the linked ports – especially with regard to the introduction of larger vessels into the trades.

The overall situation is one of increased global demand with this focused on China and some other significant markets.

As always, supply is volatile but there has been a significant increase in haul lengths in the grain trades as a whole and this has driven increased market shares for larger vessels – especially Panamax and Supramax types. In many cases this trend has run ahead of port capabilities and resulting higher CIF costs have distorted market shares for some exporters.

These issues will be at the centre of developments.

POLITICS: ALWAYS A KEY ISSUE Political tensions and changed production patterns will alter trading patterns in 2020-21, with Australia recording a strong wheat crop and South American producers struggling with adverse weather conditions. The Black Sea exporters are playing an ever-increasing role in the trades. Uncertainties continue following the trade war conditions imposed by the USA on grain exports to China. Although some equilibrium is returning, this episode significantly impacted trade patterns and resulted in new export and import patterns from the USA and China. The outlook is unclear, but the following shortterm trends are apparent: 5 Australia is recording a very good harvest and shipments will increase market share – placing some pressure on exporting capacity at the ports. Worsening political tensions with China indicate that barley and wheat shipments on these trades will be under pressure, thus opening opportunities for other suppliers.

5 Argentine wheat production is down, as is the case in Brazil.

Given the importance of Brazil as a market for Argentina

Figure 2: World Grain/Oilseed Trade - a five year perspective - million tonnes 2016/17

2017/18

2018/19

2019/20

2020/2021

192.6

184.3

175.5

191.3

192.5

Coarse Grains

183.1

189.8

204.5

212.9

225.7

Maize/Corn

143.0

153.2

172.6

175.0

181.4

Wheat

Other Grains

40.0

36.6

31.9

37.8

39.7

Soyabeans/Meal

251.0

261.1

255.4

278.7

277.8

Total

809.7

825.0

839.9

895.7

917.1 Source: USDA

this is resulting in smaller exports to other markets and increased global sourcing from Brazilian importers.

5 The Ukraine continues to record underlying demand growth – although some year-on-year volatility is noted as the role of these suppliers matures. Although production costs are competitive delivering to world markets remains a challenge given dependency on limited port facilities.

5 Canada’s supply remains focused on wheat and has continued to benefit from competitive CIF costs into China from Pacific elevators.

5 The USA is, of course, the major supplier to all of these markets and it continues to have the ability to meet any swing demand. Baseload volumes are high, but it is interesting to note that there has been increased containerisation of exports – at least until the surge in general container demand noted over the past six months.

PORT DEVELOPMENT IMPLICATIONS Port capacity planning for grain exports is always highly problematic given the short-term volatility of export grain availability with many suppliers. However, it is apparent that with global demand increasing a few major hotspots are noted: 5 The Ukraine needs to provide not just additional export capacity but also allow for much larger vessel sizes as the reach of their exports is further extended.

5 Ship size issues have dogged the Argentine export sector for many years and the need to introduce larger vessels remains acute.

5 For the USA and Canada, the shift to the Pacific markets continues to drive demand. Increased use of export elevators in the Pacific Northwest has been a major trend, but the larger locks on the Panama Canal have revitalised USA Gulf export elevators – further investment is required to load the larger vessels now possible on these trades.

By contrast, the implications for importers are simpler, with incremental provision of capacity the order of the day.

China remains dominant but increased demand in ASEAN markers and in North Africa will also drive future port investments.

For the latest news and analysis go to www.portstrategy.com/news101

8 The new G3 Grain Terminal in North Vancouver, Canada can handle vessels up to Capesize and has a rail loop with the capacity to accept three trains of up to 150 cars each

APRIL 2021 | 31

*IFOY winner in 2020

CONTAINER HANDLING

MANAGING DOWNTIME RISK Barry Larrain, Big Trucks Industry Manager, Hyster Company, charts how to comprehensively manage downtime risk with container handling equipment

8 The logistics of parts supply is worthy of serious consideration as a path to maximising machine operating hours

As soon as cargo vessels arrive, port terminals are incentivised to unload them as quickly as possible, freeing space for more shipments and getting vessels back on the water generating revenue. Terminals depend on missioncritical cargo handling equipment, like container handlers, to be ready and available to power through the unloading process. But what happens if unexpected downtime leaves equipment unavailable – and operations shorthanded?

Profits suffer the longer ships sit in port, due to shore power and other expenses, not to mention the opportunity cost of vessels lying dormant. What’s more, delays unloading cargo can thwart on-time delivery to beneficial cargo owners, racking up financial penalties and straining relationships as downstream supply chain consequences come to a head. As part of complex global supply chains that operate on tight margins, terminals simply cannot afford delays due to equipment outages.

Managing cargo handling equipment to minimise the risk of downtime is critical to protecting productivity and profits.

DOWNTIME CAUSES While some amount of downtime is expected for regular maintenance, service tasks are carefully scheduled to avoid disrupting regular business. Terminals often operate with few surplus pieces of equipment, counting on precisely planned service tasks and the little redundancy they may have to soak up excess volume.

But unplanned downtime is an entirely different story.

Little redundancy means reliability is a mission-critical attribute for container handlers, along with the resources and

processes to address unexpected issues. If a unit must be taken out of service to replace a critical part or sensor, the operations department needs to have confidence that the part can be procured and install the part quickly so the truck can return to service in hours – not days or weeks.

So what causes unexpected downtime? Container handlers have long duty cycles, typically operating about 3000 hours per year, for 10 years before being taken offline and replaced.

As with most ageing equipment, parts can wear out over time.

While many terminals take a more proactive approach to record-keeping and preventive maintenance, it can be difficult to predict when a part might fail.

PARTS LOGISTICS ARE INFLUENTIAL Not every downtime event spells disaster. But depending on the parts support and service capabilities of the local dealer and the equipment manufacturer, resolution timelines can vary widely, from a swift fix to weeks or even months-long lapses in equipment operation.

The kind of part that is in need of repair or replacement can dramatically shape the significance of a downtime event.

A part receives mission-critical designation if its failure can take equipment out of service. Some examples are the joystick, onboard sensors and hydraulic components like pumps and cylinders.

Parts availability and transit time also play a big role in determining the ultimate extent of downtime. Due to the size of some container handler parts, fast shipping methods like air freight are not always a viable option. If a terminal on the west coast of the USA needs a part that is stocked at a distant

For the latest news and analysis go to www.portstrategy.com/news101

APRIL 2021 | 33

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‘‘

Reliability and durability are important factors to consider for equipment as a whole and critical parts location, transit time and customs inspection periods can stall repairs for days or weeks. In the real world, however, when a terminal has an 8000 TEU vessel to unload in four days, it needs that replacement part ‘yesterday’.

MINIMISING DOWNTIME RISK So how can terminals mitigate the threat of downtime before it happens? Equipment reliability is a good place to start.

Reliability and durability are important factors to consider for equipment as a whole and critical parts. Parts like hoist cylinders for instance, which are essential to the operation of a container handler, are the kind of components that must be built to last – and have a track record of doing so. Purchasing managers can consult with industry peers to help evaluate equipment suppliers and assess maintenance data to understand their records for reliability.

But reliability is only part of the issue. It’s also critical to evaluate if vendors are well-equipped to support and respond in the event of a service issue by securing parts and making timely repairs.

Consider the location and resources of your equipment dealer and manufacturer. Is your dealer able to rapidly deploy parts or service technicians in the event of an issue?

Does your local dealer have the financial bandwidth and willingness to stock not only parts necessary for regular maintenance, but mission critical parts that might sit on their shelf for a year, maybe more, simply to ensure that those parts are readily available when you need them?

A terminal’s operations department needs not only a pathway to secure essential parts when necessary, but layers of inventory availability to help prevent extended downtime.

For example, some equipment providers may maintain an inventory of essential parts stocked at the terminal’s local dealer, other dealers in the network and a central warehouse in the same state and time zone, with a regular procurement framework in place. For the most urgently needed but less commonly replaced components, some manufacturers may even source parts directly from their production line to help customers get them as quickly as possible.

The financial resources your dealer has at their disposal can also play a role in whether they have skilled and trained service personnel, available in adequate numbers for fast response to diagnose and resolve issues. One of the greatest challenges for supply chains as a whole and dealers specifically is a lack of trained, experienced service technicians. A well-capitalised dealer may be better equipped to competitively compensate technicians, retaining the steady supply of skilled labour you can count on in a pinch.

provide parts access for a port in a very remote location. The terminal location was so remote that the nearest urban centre and dealer location was thousands of miles away, accessible by a several-hour-long flight.

The only way to transport large parts was by barge, a process that required two weeks.

To prevent such long wait times for replacements, the customer received an entire shipping container filled with parts to keep on-site. The dealer periodically ran inventory, using data on parts usage for billing and replenishment, helping keep the terminal stocked with parts on-hand for use at a moment’s notice.

8 Collaboration between purchasing and operations personnel can help balance upfront cost with downtime risk

REALISTIC EXPECTATIONS No equipment is perfect or completely without issue, but examining reliability records for container handlers can provide a reference point to evaluate how equipment compares. Support capabilities can also vary based on geographic location, dealer resources and corporate culture.

As terminals select equipment, collaboration between operations and purchasing personnel can also help terminals balance upfront cost with downtime risk and other factors.

When vessels need unloading, the operations department is often in the hot seat, responsible for making sure equipment is available to get the job done on-time.

While purchasing personnel might have a tendency to favour “sticker” price, members of the operations team can provide insight about daily use and support, along with information about how frequently equipment from various providers requires parts and service.

Considering all of these factors together provides a clearer picture of total ownership costs over the life of the equipment – and can help manage downtime risk.

SUPPORT IN ACTION Some terminals with a history of struggling to source parts arrange extra layers of availability to protect supply. In one such case, the dealer and manufacturer worked with the terminal to first identify a list of priority parts, based on criticality and expected need for regular replacement. Then, they forward that inventory to the customer site. The local dealer also stocked critical parts, even during the equipment warranty period, so the terminal could rest assured that parts availability would not keep their equipment out of service.

Another special case involves going above and beyond to

For the latest news and analysis go to www.portstrategy.com/news101

8 Turnkey solutions for parts supply can be developed for terminals in remote locations

APRIL 2021 | 35

PORT NAVIGATION

VTS: THE NEED FOR CHANGE The IMO’s revised Guidelines for Vessel Traffic Services (VTS) are expected to enter into force in 2022. Felicity Landon explains why ports should be aware of the changes ahead

8 The new VTS guidelines are identified as “lighter and more flexible” offering a good governance framework for VTS going forward

Almost a quarter of a century ago, the IMO adopted Resolution A.857(20) on Guidelines for Vessel Traffic Services (VTS). It would, of course, be an understatement to note that the world of ports and shipping has moved on since then – and that’s quite apart from the technology.

As Kevin Gregory, Education and Development Manager, International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA), says: “The current Guidelines were approved in 1997. The progression of the industry since then has overtaken them. In terms of IALA and operational procedures, the capabilities of VTS grown in the operational sense, technology sense and people sense.”

The new Guidelines about to be finalised represent a major change in VTS policy, according to Gregory. “The old Guidelines were written before IALA really got involved in VTS, and now there is a new body of VTS documentation available. We have worked, through the IMO and its member states, to make the new Guidelines lighter and more flexible, to provide a good new governance framework for VTS in the future.”

THREE TYPES OF SERVICE What does VTS even mean? Historically there were three types of service – information service, traffic organisation service and navigational assistance service. Essentially, it was up to the VTS authority to determine what to offer based on the volume of traffic and degree of risk, Gregory says; large and complex ports would likely offer all three, while others perhaps only one.

Gregory explains further. “That was not good for the mariner, because the service was different wherever they went. We tried to turn it around and think about what pilots, captains and other users wanted. They want good quality information on what is going on – traffic, weather, berthing. They expect their movement to be managed so they do not meet another ship on a bend or get into a jam or have to slow down unnecessarily.

36 | APRIL 2021

They expect that if they are in a dangerous position – in danger of running aground, for example – they will be helped out. We also said it was a strange thing that any authority would invest hundreds of thousands into a VTS system and not expect it to do those things.”

The new Guidelines will do away with the idea of three types of service because all should be covered, says Gregory.

“The Guidelines state that these are the functions of a VTS and they should be implemented in a way that is appropriate to volumes and degree of risk.”

ESTABLISHING THE NEED FOR CHANGE The process of revision has taken several years – from establishing the need for change and gaining member state support, to writing the Guidelines and taking these through subcommittee stage to approval by the Maritime Safety Committee (MSC) last year. Assuming approval by IMO Assembly later this year, the revised Guidelines will come into force early in 2022.

“Ports need to be aware of this and know what they need to do,” says Gregory. “Of course, we cannot prejudge the decision of member states but we need to reach out on what will be the most important changes. the major change is going to be the types of service everyone has to be prepared for and has to implement.” This could require investment to ensure that procedures are in compliance, and in necessary training.

IMPROVING HARMONISATION, SAFETY AND EFFICIENCY Overall, says Gregory, the new Guidelines are designed to improve harmonisation, safety and efficiency. “VTS has traditionally been seen as a safety tool; now, while safety is still first and foremost, efficiency of navigation and commercial benefits come from VTS.” The main driver is to achieve harmonisation and to encourage the implementation of the IALA standards – and

For the latest news and analysis go to www.portstrategy.com/news101

Credit: Savannah River Pilots

PORT NAVIGATION

within this, communication standards are key. “A running thread through incidents has been miscommunication,” he says. “How do we communicate to the vessel what we need them to do? VTS must be able to communicate with mariners in a clear way.”

The Guidelines cover the use of standardised message markers – the prefixes such as ‘advice’ ‘or ‘warning’, for clarity as to the type of communication to follow. “The issue is the human element of being able to communicate with the mariners in a clear way, resolving any problem of unclear or ambiguous messages.”

VTS AND DIGITALISATION While VTS systems have become increasingly sophisticated over recent years, VTS development must also take into account the rapid advances in digitalisation and technology across the sector.

At IALA’s April symposium, being held online, key topics for discussion include digitalisation, e-navigation and MASS (Maritime Autonomous Surface Ships), and how VTS may need to prepare and adapt.

“MASS are very much up and coming – still at the early stages but we believe IALA will be key in that. Whether fully or semi-autonomous ships, there is the important issue of how they interact with non-MASS ships and how they interact with shoreside infrastructure including aids to navigation and VTS,” explains Gregory.

“IALA has formed a working group to look at this across all of the various technical domains. However, for the bigger deepsea elements I can’t see fully autonomous ships for some time; I think we are more likely to see degrees of automation coming in. Perhaps more decision support for the bridge team to help with decision making to increase safety. For a truly unmanned ship, it would be interesting to consider how VTS would work – and we are looking to set the scene a little bit.”

E-navigation also involves small steps towards a bigger vision, he says. Technology and digital solutions to support functions such as passage planning, weather routing and speed optimisation are all gaining ground – but, as Gregory points out, there will be the ‘haves’ and the ‘have nots’ in the fleet.

“New, large ships will have the latest technology but there will also be the old ships at the end of the spectrum which will probably never invest in such systems unless it is mandatory. So berth optimisation and just-in-time arrival solutions are all fine – but there will still be ships that aren’t doing that and turn up 12 hours late to mess it all up.”

8 All vessels need good quality information, covering traffic, weather and berthing

‘‘

The main driver is to achieve harmonisation and to encourage the implementation of the IALA standards Could there be a clash between onboard systems around intelligent tech’ and decision support, and what Vessel Traffic Services?

While the tech’ in the background could pick up something that the VTS operator cannot see, it will be important that decision support systems are harmonised, he says.

A UNIFYING BRIDGE The new IMO Guidelines will create a ‘bridge’ between SOLAS and the IALA standards, Gregory concludes. “The Guidelines provide the overarching governance and harmonisation which is the IALA goal. The rationale is that if you comply with the IALA standard, you comply with the SOLAS requirements for VTS.” Overall, VTS services and systems are emerging and growing quickly, including in developing states. “We are seeing VTS and aids to navigation grow around the world.

That is down to the requirement to manage ships in a safe and efficient way. Shipowners are aware of it, and they look at the ports they are going to visit to find out what kind of VTS is in operation there. A big driver for the growth is the commercial benefit of having safe, efficient navigation.”

For the latest news and analysis go to www.portstrategy.com/news101

8 Kevin Gregory, Educatio Education and Develop Development Manage Manager, IALA, “The new Guidelines… provide a good governa governance framewo framework for VTS in the fu future.”

APRIL 2021 | 37

PORT NAVIGATION: SMART OCEAN BOTTOM DATA

THE DEVIL IS IN THE DETAIL Smart ocean bottom data means more detailed measurements are possible. While interest is clearly rising, the full potential is still largely unknown, writes Stevie Knight

8 Teesport was able to receive the entire 24,000-tonne Brent Delta topside because high resolution bathymetry made a viable access route available to pilots

There is growing interest in accurate, highly detailed navigation charts, but as yet it is not widespread. As Nina Savijoki, Project Manager – Intelligent Sea, at Meritaito, (the state-owned company formed after the reorganisation of the Finnish Maritime Administration) says, “we do not yet have a full picture of its (smart ocean bottom data) potential.” This is proving a limiting factor.

This view is endorsed by Caroline Levey, Operations Director, OceanWise, (an independent company specialising in all aspects of marine environmental data), who confirms that uptake has been “patchy” simply because “people are not aware of what it can do for them - or even that it’s possible”.

Viewed on a web-portal, the 3D models now available are impressive and nothing like the usual flat, wide-spaced, contour lines and rough landside approximations of a standard chart. Despite that, UKHO, Traficom and other electronic nautical chart (ENC) providers are not being left behind as services offered by Meritaito, OceanWise and others include formats that can be validated and incorporated into Electronic Chart Display and Information System (ECDIS).

The concept is of particular interest to ports in the Gulf of Finland, “which often have difficult navigation challenges that can put the ship in close proximity to rocky outcrops or boulders”, says Savijoki’s colleague, Hanno Kurtti.

Levey further explains where benefits exist: “With a greater level of detail, you can expand the tidal windows, allowing you to see how to bring more ships through the port.” There are advantages to locations with draft restrictions. “Accurate risk information can open up a port with loading limitations,” says Atte Rotko, a specialist independent consultant.

38 | APRIL 2021

There are other potential uses too. For example, the Finnish port of Naantali is planning to scale-up the volume and frequency of ship calls to consolidate its position as a freight hub for Scandinavian markets – but that’s against ever-present competition from larger European players.

Hence the port, which is part of the EU-funded Intelligent Seas pilot project, is going one step further. Meritaito is combining high-density bathymetric models of the port with information from a series of ‘smart buoys’. These floating and landside navigation aids (monitored and controlled from a web-portal) continually track everything from environmental markers to weather, current and accurate tide and sea-level data. As a result, both port and vessels gain real-time information. “Exactly how much water there is behind the propellers and beneath the hull is known,” says Savijoki.

MEETING DIVERSE DEMANDS Demands are being pushed even further by oil and gas decommissioning, where the size and scale can be extraordinary. For example, Teesport in the UK was only able to take in the Iron Lady, loaded with the entire 24,000-tonne Brent Delta topside, because high resolution bathymetry made available to the pilots highlighted a viable route through to the Able UK yard at the end of its Seaton Channel.

Interestingly, this level of detail also assists in answering more troubling requests. When the UK’s Clydeport received a call from a large, stranded ship the port knew it was urgent, “but it was a tight squeeze”, says Levey. Having accurate bathymetry allowed the tugs to bring the ship in – despite extremely narrow clearance margins.

For the latest news and analysis go to www.portstrategy.com/news101

PORT NAVIGATION: SMART OCEAN BOTTOM DATA

‘‘

Greater detail expands tidal windows and facilitates more vessel calls

PLANNING SIMPLIFIED It is not only about ship calls. The dense multibeam and laser readings get translated into easy-to-understand visualisations enabled for a web portal, making infrastructure planning and maintenance far simpler.

Hitherto hidden vulnerabilities can also be revealed. For Naantali, one example involves an underwater pipeline running from the shore to a peninsula on the other side of the port. Since it turned through an angle its exact pathway had remained unknown, explains Rotko, at least until the models revealed all. However, these surveys also turned up a surprise – a small, previously undiscovered wreck that, though not a navigation hazard, will undoubtedly see future investigation.

These bathymetric models also highlight requirements that need addressing immediately, helping ports to deploy resources effectively. It might not take much to make a difference. Naantali had bulk cargo remains built up against one of the quay’s footings and some remedial dredging regained depth alongside. Further, debris in the fairway can be an issue, “but this kind of bathymetric modelling also allows ports to consider where currents may move it,” says Savijoki.

The combined underwater and landside visualisation enables port authorities and stakeholders to play with the possibilities. Rotko explains further, “It is a bit like a video game where you can move your view around between sea, land and air, and say ‘here’s where I might put my next structure’, and then look at the effects.”

BUY IN OR GO-IT-ALONE? While Meritaito and its partners have developed an offering with regular re-surveys and ‘smart buoy’ deployment, there are a variety of approaches. Some ports will find a ‘one-off’ service suffices, and yet others may decide to keep the whole process to themselves.

Of course, the cost of making it worthwhile depends on what the port is sitting on. Handing over raw data to ENC chart providers not only loses detail, these organisations are managing hundreds of charts, and simply might not be able to finalise the official update for a considerable period.

Problematically, certain channels (especially those with sandy bottoms), can move dramatically in that time. “In the Dee Estuary, the main channel can move on an almost daily basis, so it is not possible for the National Hydrogaphic Office to produce charts at that speed, it can only be done locally,” explains Levey.

Therefore, given an ongoing demand for accurate measurement, the software for creating a compatible ENC format might be a worthwhile investment even if it can be a

Source: Meritaito

However, these services also extend landward to the quay and even beyond that. The multibeam surveys can be tied together with LiDAR readings, yielding a seamless 3D model of port assets, explains Kurtti. Certainly, a quick virtual tour around Naantali shows not just the berth but electrical cabinets, water and waste points, bollards, ramps, cranes, and so on. “This speeds up cargo operations as the ship can optimise its position on the quay, straight from ECDIS”, points out Rotko. Further, Kurtti adds that relatively simple things like labelled plug-in points or showing agents where they can drop off supplies make the port a lot more accessible while easing the day-to-day administrative burden. five-figure sum – especially as this means these unofficial readings can be uploaded and made available on various mobile platforms in a matter of a day or so, with no waiting or loss involved.

8 Naantali’s 3D bathymetry picked up the detail necessary for effective remedial dredging

WHAT DOES THE FUTURE HOLD? The technology utilised in water-side operations is about to see a step change. The uptake of Portable Pilot Units – PPUs – has been rising ever since the kit moved from a bulky bag to an iPad app, but detailed bathymetry data is necessary to make the most of it. As one of the Tees Bay pilots involved in the Brent Delta operation notes, having this information available on the PPUs made “difficult, unexpected changes on the day” manageable.

In Finland, Naantali’s project “is also helping build the foundation of the future,” says Rotko. As the country is a leading player in robotic solutions, that future will likely include autonomous vessels. Finferries is already testing out the supporting building blocks while Finnpilot is working steadily toward realising an e-piloting concept. Both will demand more than the traditional 2D charts can provide.

However, “the real change comes in 2024 when new ECDIS devices, incorporating IHO S-100 features, are required onboard new vessels”, says Savijoki. That, in turn, is likely to give rise to further automation. As a result, she sees ships’ crew “potentially” handing over certain sections of the navigation to onboard computers.

Indeed, asking vessel automation systems to recognise the fairway requires detailed bathymetry, but while current charts are accurate enough for the human eye they are not yet accurate enough for machines.

“It may be a lot of small pieces,” adds Rotko, “but an ecosystem is slowly and surely building up” and a necessary part of that is an accurate, immediately available model of port infrastructure.

However, right now, these additional capabilities allow a port to offer a new layer of digital services to its customers, making the operation both faster and slicker. “Considering the competition for calls, this does not hurt. Every hour counts,” concludes Savijoki.

‘‘

The real change comes in 2024 when new ECDIS devices, incorporating IHO S-100 features, are required onboard new vessels

For the latest news and analysis go to www.portstrategy.com/news101

APRIL 2021 | 39

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For the latest news and analysis go to www.portstrategy.com/news101

E LECTRIFICATION SOLUTIONS

Cimbria is a global leader in the conveying, drying, processing, sorting and storage of grains, seeds, food and bulk products. Cimbria designs, manufactures and services customized high-tech solutions, from stand-alone machines to large turnkey plants. Our broad experience ensures our clients the targeted advice and range of solutions they need to grow their business.

LASE Industrielle Lasertechnik GmbH

25/02/2021 15:49

Tel: +65 9186 6846 jon.arnup@trent-global.com www.trent-global.com/

C RANE COMPONENTS

C ARGO HANDLING SYSTEMS

27/01/2021 11:29

A/S Cimbria

D REDGING

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Tel.: +49 2521 240 E-mail: info@beumer.com Web: www.beumer.com

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As one of the leading manufacturers of quick connector systems,Stäubli covers connection needs for all types of fluids, gases and electrical power.

Tel: +33 4 50 65 61 97 connectors.sales@staubli.com www.staubli.com/en-de/ connectors/

C ONSULTING ENGINEERS

Overland Conveyor Pipe Conveyor Stacker & Reclaimer Shiploader

Gemini House Cambridgeshire Business Park, 1 Bartholomew’s Walk, Ely Cambridgeshire CB7 4EA England, United Kingdom (UK) Tel: +44 1353 665001 Fax: +44 1353 666734 sales@samson-mh.com www.samson-mh.com

C ARGO HANDLING EQUIPMENT

The BEUMER Group is an international leader in the manufacture of bulk material handling systems:

SAMSON Materials Handling Ltd specialises in the design and manufacture of mobile bulk materials handling equipment for surface installation across multiple industrial segments. Designed for rapid onsite set-up and continuous high performance SAMSON equipment provides an excellent return on investment.

C ONNECTION SOLUTIONS

For more than a century, Bedeschi is providing effective and reliable solutions in a wide variety of industries (bulk handling, marine logistics and mining), capitalizing on synergies and cross competences.

Via Praimbole 38, 35010 Limena (PD) – Italy Tel: : +39 049 7663100 Fax: +39 049 8848006 Email: sales@bedeschi.com Web: www.bedeschi.com

B ULK HANDLING

B ULK HANDLING

Bedeschi S.p.A

VAHLE PORT TECHNOLOGY VAHLE is the leading specialist for mobile power and data transmission VAHLE provides the solutions to reduce the carbon footprint while increasing the productivity.

RTGC electrification including positioning and data transmission making RTGC ready for Automation.

Westicker Str. 52, 59174 Kamen, Germany

Email: port-technology@vahle.de Web: www.vahle.com

Piraeus2021

GREENPORT Cruise Congress &

Rohde Nielsen A/S Specialising in capital and maintenance dredging, land reclamation, coast protection, Port Development, Filling of Caissons, Sand and Gravel, Offshore trenching and backfilling Nyhavn 20 Copenhagen K. DK-1051 Denmark +45 33 91 25 07 mail@rohde-nielsen.dk www.rohde-nielsen.dk

20OCT Piraeus 22 2021 Greece TO

For more information visit: greenport.com/greenport Tel: +44 1329 825335 email: congress@greenport.com

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PRODUCTS & SERVICES DIRECTORY

Contact Tim Hills or Hannah Bolland

Tel: +46 470 77 22 00 info@fogmaker.com www.fogmaker.com

+44 1329 825335 www.portstrategy.com

Port Strategy Directory

H ANDLING EQUIPMENT

G RABS

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To advertise in the

MRS Greifer GmbH

Sany Europe GmbH SANY offers reliable quality container handling trucks.

Benefit from the experience of over 4,000 reach stackers build over the last 12 years, with up to five year full machine warranty.

Sany Allee1 D-50181 Bedburg Tel: +49 2272 90531 100 Email: info@sanyeurope.com www.sanyeurope.com

RuggON is here to offer high quality and future-proof one-stop rugged computing solutions, ranging from rugged vehicle-mount computers, mobile tablets and data terminals, to similarly durable data-capture accessories, for a safer and more efficient automated port and terminal operations from quay, yard, gate, and all the way to warehouses.

4F., No. 298, Yangguang St., NeiHu Dist., Taipei, Taiwan +886-2-8797-1778

Piraeus2021

GREENPORT Cruise Congress

01/02/2021 13:12

Grabs of MRS Greifer are in use all over the world. They are working reliably and extremely solid. All our grabs will be made customized.

Besides the production of rope operated mechanical grabs, motor grabs and hydraulic grabs we supply an excellent after sales service.

Talweg 15-17, Helmstadt-Bargen 74921, Germany Tel: +49 (0)7263 - 91 29 0 Fax: +49 (0)7263 - 91 29 12 info@mrs-greifer.de www.mrs-greifer.de

I T PORT AUTOMATION

H ANDLING EQUIPMENT

F IRE SUPPRESSION SYSTEMS

Fogmaker develops, manufactures, and markets fire suppression systems for engine compartments with high pressure water mist. Fogmaker is a market leader for automated fire suppression systems with 200,000 installations in more than 50 countries since 1995.

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20/01/2021 10:50

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20OCT Piraeus 22 2021 Greece

BLOK Container Systems Ltd

TO

BLOK cuts Shipping Line pollution: increases safety and productivity in Port • BLOK Spreader – lifts 4x40’ empties • BLOK Rig – automatic twistlocking • BLOK Trailer – 8 teu

Visy systems reduce VISY Oy expenses, optimize safety & security, and VISY takes pride incapacity solving via increase throughput operational problems,Our specialising process automation. singlein gate automation and system access platform gate operating control solutions in ports and and OCR solutions manage all terminals.

Their solutions cargo, assets & personnel streamline processes resulting movements via quay, rail or road in saving money and to keep operations moving. increasing productivity.

For more information visit: greenport.com/greenport Tel: +44 1329 825335 email: congress@greenport.com

Tel: 00441926611700 enquiries@blokcontainersystems.com www.blokcontainersystems.com

Tel: +358 3 211 0403 Email: sales@visy.fi Web: www.visy.fi/

P OWER TRANSMISSION

I NSURANCE

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Orts GMBH Maschinenfabrik Over 40 years experience constructing and manufacturing a wide range of grabs, including electro-hydraulic grabs (with the necessary crane equipment) radio controlled diesel hydraulic grabs, 4, 2 and single rope grabs all suitable for bulk cargo.

Schwartauer Str. 99 D-23611 Sereetz • Germany Tel:+49 451 398 850 Fax: +49 451 392 374 soj@orts-gmbh.de www.orts-grabs.de

Künz GmbH Founded in 1932, Künz is now the market leader in intermodal rail-mounted gantry cranes in Europe and North America, offering innovative and efficient solutions for container handling in intermodal operation and automated stacking cranes for port and railyard operations.

Gerbestr. 15, 6971 Hard, Austria T: +43 5574 6883 0 sales@kuenz.com www.kuenz.com

To advertise in the

Southampton United Kingdom

Port Strategy Directory Contact Tim Hills or Hannah Bolland

For more information visit: seawork.com contact: +44 1329 825 335 or email: info@seawork.com

+44 1329 825335 www.portstrategy.com

S HIP UPLOADERS

I T PORT AUTOMATION

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Conductix-Wampfler The world specialist in Power and Data Transfer Systems, Mobile Electrification, and Crane Electrification Solutions.

We Keep Your Vital Business Moving!

Rheinstrasse 27 + 33 Weil am Rhein 79576 Germany Tel: +49 (0) 7621 662 0 Fax: +49 (0) 7621 662 144 info.de@conductix.com www.conductix.com

01/03/2021 14:40

CAMCO Technologies NV Visual- and Micro Location- assisted process automation solutions for container, ro-ro and rail terminals worldwide. Accurate crane, gate & rail OCR systems and Gate Operating System software helping terminals accelerate terminal and gate activity.

Technologielaan 13 Leuven, Belgium +32-16-38-9272 +32-16-38 9274 info@camco.be www.camco.be

Bruks Siwertell is a market-leading supplier of dry bulk handling and wood processing systems.

With thousands of installations worldwide, our machines handle your raw materials from forests, fields, quarries and mines, maintaining critical supply lines for manufacturers, mills, power plants and ports. www.bruks-siwertell.com sales@siwertell.com service@siwertell.com

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30/03/2021 10:12

For the latest news and analysis go to www.portstrategy.com/news101

PRODUCTS & SERVICES DIRECTORY

Solvo Europe B.V. Solvo’s software solutions such as TOS or WMS help container and general cargo terminals take full care of their cargo handling processes and make sure the clients expectations are exceeded.

Prinses Margrietplantsoen 33, 2595AM, The Hague, The Netherlands Tel: +31 (0) 702-051-709 Email: sales@solvosys.com www.sovosys.com

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20OCT Piraeus 22 2021 Greece TO

For more information visit: greenport.com/greenport Tel: +44 1329 825335 email: congress@greenport.com

Navis understands that as ships get larger and operational processes become more complex - efficiency, collaboration and productivity are essential. As a trusted technology partner, Navis offers the tools and personnel necessary to meet the requirements of a new, and ever-evolving, global supply chain.

World Headquarters 55 Harrison Street Suite 600 Oakland CA 94607 United States Tel: +1 510 267 5000 Fax:+1 510 267 5100 Web: www.navis.com

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.

Tel : +33 (0)3 28 65 81 91 contact@tgims.com www.tgims.com

T RACTORS

Piraeus2021

GREENPORT Cruise Congress

T ERMINAL OPERATIONS SYSTEMS

The Brain of Logistics With more than 30 years experience in IT Solutions and Business Operation Consultancy DSP offers a large portfolio of professional services and products to support terminal operations processes and system.

DSP Data and System Planning SA Via Cantonale 38 6928 Manno, Switzerland Tel: +41 91 230 27 20 Fax: +41 91 230 27 31 info@dspservices.ch www.dspservices.ch

T ERMINAL OPERATIONS SYSTEMS

T ERMINAL OPERATIONS SYSTEMS

S PREADERS

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

Stalgatan 6 , PO Box 174 SE 343 22, Almhult, Sweden Tel: +46 47655800 Fax: +46 476 55899 sales@elme.com www.elme.com

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

Tideworks Technology provides comprehensive terminal operating system solutions for marine and intermodal terminal operations worldwide. Tideworks works at every step of terminal operations to maximize productivity and customer service. info@tideworks.com +1 206 382 4470 www.tideworks.com

Hochhäuser Str 18 97941 Tauberbischofsheim, Germany Tel: +49 9341 8990 sales@mafi.de www.mafi.de

Greenport Congress Directory Filler.indd 1 01/03/2021 09:15

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POSTSCRIPT OZ COAL: NEW ‘DANCE’ PARTNERS The unofficial ban by China on Australian coal imports is resulting in a structural shift in seaborne coal trading patterns.

The ban, applied in 2020, followed increasing political tension between the two countries with the trigger point reportedly being the Australian Government’s early and strong calls for an independent investigation into the origins of the Covid-19 Pandemic. In many ways, however, this was the final straw for China with earlier friction points including the increasingly tight investment rules imposed by Canberra, new foreign interference laws and its ban on the Chinese telco Huawei participating in Australia’s 5G network.

The ‘ban’ came suddenly and the immediate impact of this was a raft of vessels anchored off China waiting to offload coal from China. As of early March, it was estimated that approximately 40 vessels remained but with the number steadily reducing as alternative coal purchasers are found.

The coal onboard is largely metallurgical (coking) coal for use in steel production with a resurgent Chinese economy generating increased demand for this commodity – albeit that China is looking elsewhere to secure this product.

‘‘

A distinct see-saw effect forms part of the structural changes underway

44 | APRIL 2021

CHANGING TRADE PATTERNS China’s ongoing dispute with Australia is an influential factor behind a distinct shift in seaborne coal trading patterns.

Australia has moved quickly to compensate for the loss of Chinese business – highlighted clearly in Figure 1. There has been no sustained dip in export activity overall with the country significantly upping coal export activity in the Asia-Pacific region. Indeed, there has been something of a reshuffling of purchaser activity between the principal coal suppliers.

Indonesia and Australia dominate the global seaborne coal trade, with the Southeast Asian nation holding the number one spot in thermal coal, used mainly in power plants, while Australia is the biggest shipper of coking coal, and the number two in thermal coal.

Traditionally, Indonesia has filled the role of being the second largest supplier of coal to China but as Australian imports have dropped to virtually zero Indonesia has quickly ascended to the position of its number one ranked supplier. Activity in December 2020 proves the point - China’s imports from Australia accounted for just 447,523 tonnes, reportedly the lowest since January 2015; down hugely from the 2020 pinnacle of 9.64 million tonnes in June. Conversely, China’s imports from Indonesia climbed to 12.19 million tonnes in December, soaring past the previous record of 10.47 million in April 2019, and up almost three times more than the 4.3 million tonnes achieved in November.

In the process of this change, however, Indonesia has seen Australia make significant inroads into supplying coal to India, a market where Indonesia has long been strong.

Refinitiv data for total seaborne imports vs from Australia and Indonesia

Source: Refinitiv Eikon Reuters graphic/Clyde Russell 12/01/21

8 Figure 1: The downturn of Australian coal imports into China is clearly seen from July onwards and the big uplift in Indonesian imports from November

Coal imports from Australia to India achieved the record figure of 6.75 million tonnes in January, according to analyst Refinitiv. This was up from 6.32 million tonnes in December, 5.06 million in November and 5.49 million in October. Overall, the four months to end of January 2020 were the strongest for Indian imports of Australian coal since Refinitiv commenced recording these in January 2015. The volumes reportedly include higher levels of thermal coal – exports to India traditionally comprising mainly coking coal.

India imported 5.42 million tonnes from Indonesia in January, down from 5.74 million in December, 5.82 million tonnes in November and 6.75 million in October, confirming a distinct see-saw effect in terms of supply activity.

There is also a twist in the tale of China blocking Australian imports of coal; diverse market analysts report that the bill for doing this is markedly higher than it would be if it were to continue using Australian imports. This reality covers suppliers other than Indonesia and applies to countries such as South Africa, Colombia and Russia which have all seen increased demand from China.

OTHER MARKETS Alongside India, Australia is also recording increased coal exports to Vietnam and to a lesser extent Pakistan and Middle East countries – all of which is robustly helping to fill the gap in demand from China.

Such is the progress being made that at the beginning of March Asia Pacific Thermal Coal Research projected that overall Australian exports in January and February will be higher than in both 2020 and 2019.

And underpinning this positive assumption lingers the fundamental question, will China be able to sustain its block on Australian coal imports? There are those who believe that ultimately it may be compelled to take a step back from this unwritten policy.

‘‘

The ‘China factor’ is influential in reshaping seaborne coal trade

For the latest news and analysis go to www.portstrategy.com/news101

29SEPT Port of Antwerp ȠǼȠ1 Belgium 30 TO

Antwerp 2021

COASTLINK Conference Hosted by:

NEW DATES ANNOUNCED Building connectivity between short sea shipping & intermodal networks

This year’s topics include: • Market Sector Overview – Industry Challenges and New Opportunities for Short Sea & Feeder Shipping • Building Connectivity & Networks for the Future – Linking Short Sea & Feeder Shipping to Intermodal Transport Routes Í XńńĨěĸČ Ɗń Ɗėä 8ƙƊƙŲä ó FĴŝŲńƲěĸČ )ý ÎěäĸÎěäŷ ėŲńƙČė Digitalisation and Innovation

Delegate place includes: • • • • •

One and a half day conference attendance Full documentation in electronic format Lunch and refreshments throughout Place at the Conference Dinner Place on the Technical Visit

Meet and network with international attendees representing shipping lines, ports, logistics companies, terminal operators and freight organisations For more information on attending, sponsoring or speaking contact the events team: visit: coastlink.co.uk/book contact: +44 1329 825335 or email: info@coastlink.co.uk #Coastlink

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Piraeus2021

20OCT Piraeus 22 2021 Greece

GREENPORT Cruise Congress

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Host Port:

The Port of Piraeus welcomes you to Greece!

The 2021 host port welcomes all ports, terminals and logistics TVSZMHIVW [MWLMRK XS HMWGYWW WYWXEMREFMPMX] MWWYIW MRDZ YIRGI national and regional agendas and promote socially responsible growth policies.

The 2021 conference topics include: • Financial and technical challenges to onshore power supply • Getting ahead for new fuels • Collaborative community projects • Sustainable transport and logistics in the hinterland connections • Eco-Cruise ships and sustainable cruise initiatives in Europe

Get involved today!

• A range of sponsorship packages is available to suit any budget • 'IRIǰX JVSQ SZIV QSRXLW I\TSWYVI XS SYV RIX[SVO SJ port, terminal, equipment and logistics professionals

Meet and network with over 200 attendees representing port authorities, terminal operators and shipping lines.

For more information on attending, sponsoring or speaking contact the events team visit: greenport.com/congress contact: +44 1329 825335 or email: congress@greenport.com

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