Port Strategy January/February 2022 by Mercator Media

JANUARY/FEBRUARY 2022 VOL 1022 ISSUE 1

portstrategy.com

China Corrosion | Hydrogen: Chicken and Egg? | UNCTAD: Price to Pay | Berth Right

COVID BOOSTER: Asia-N. America Box Trade JNPCT BID CONTROVERSY LOOMS VBS: DISCIPLINE ESSENTIAL ENERGY CHOICES: HOW TO PLAN

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 Features Editor: A J Keyes keyesj186@gmail.com

VIEWPOINT MIKE MUNDY

Not the whole story

“There are no facts, only interpretations” Friedrich Nietzsche

Is this well-known quotation one that applies to Maersk’s early January Customer Advisory – Operational Constraints in Key Regions? It does raise questions, not the least of which is the case for a much bigger eﬀort on the part of the liner sector to assist ports and terminals to meet today’s and tomorrow’s challenges.

If you take it at face value, it is a top tier shipping line providing a perspective of what it sees as major port bottlenecks negatively impacting the supply chain. It is a list of those ports where Maersk has, and is, facing delays getting on the berth to discharge and load cargo. It is, though, a rather one-dimensional statement on what Maersk defines as Operational Constraints in Key Regions in an 11 January Customer Advisory. In fact, although no one is shouting it from the rooftops, it has come in for more criticism than that. One view is that it is a convenient statement which basically amounts to passing the buck. Another is that theory does not go into practice and the example is given of a dedicated berth for Maersk/MSC left empty for two days as a result of vessel rerouting. At the very least, there do appear to be grounds to say that the statement issued is based more on ‘effect’ than ‘cause.’ At one level it is accurate to point the finger at ports in Asia, North America and Europe and identify them as congestion points, but we all know it is not the whole story. The inference from the Advisory is that it is the ports that are the cause of disruptive blockages in the supply chain – that due to lockdown factors, staff shortages resulting from COVID-19 or inadequate capacity or methods of working they are the generator of problems. But its not as simple as that; and isn’t it just a bit too convenient to say that: “…we are working closely with all respective port authorities and coordinating with all involved parties in the local supply chain to help alleviate the situation?” At an operational level, for example, a major problem certain ports face is the clearing of empties which are clogging up their respective terminal systems. The Port of Long Beach on January 25 reported that 47 per cent of the resident container population was accounted for by empties, units which if removed would go a long way towards easing the log jam. Doubtless more can be done by lines in this respect – more sweeper vessels for example – but do such exceptional efforts sit high on the agenda when vessel deployments can be made to achieve big profits elsewhere? Which brings me to the point raised in my Strategist column (p19). The liner sector is in receipt of huge profits but there is little evidence yet of these bonanza earnings being used to assist a struggling ports sector, unless of course it’s with company affiliated terminal divisions. With more power concentrated in fewer hands in the liner sector a tight lid is being maintained on the port sector’s earning power. It is relevant to ask, is this appropriate today in such challenging circumstances and equally given the large-scale investment that has to be undertaken to service the huge number of new high-capacity vessels on order?

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

News Reporter: Rebecca Jeﬀrey rjeﬀrey@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 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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JANUARY/FEBRUARY 2022 | 3

CONTENTS JANUARY/FEBRUARY 2022 VOL 1022 ISSUE 1

portstrategy.com

China Corrosion | Hydrogen: Chicken and Egg? | UNCTAD: Price to Pay | Berth Right

NEWS

21 Bid controversy

17 Terminal 5 opens

23 VICT another first

Seale capacity boost

18 Busy chicken run

Chasing chicken cargo

18 Anaklia again Asia-N. America Box Trade JNPCT BID CONTROVERSY LOOMS VBS: DISCIPLINE ESSENTIAL ENERGY CHOICES: HOW TO PLAN

On the cover Structural changes are underway in Asia-North America trade with increased usage of US East and Gulf Coast port gateways a hallmark of this (p24). While volumes are up in the San Pedro Bay ports they are losing market share, down from over 37 per cent in 2010 to 33.5 per cent in 2021. Signs are a new competitive balance is being established.

Back for investment

19 New Humber terminal JV green light

10 Nigeria digital plans Five-year digital programme

13 Kalmar goes electric

Electric and robotic ranges unveiled

14 Hamburg plots

GREENPORT Cruise Congress

14 Merger moves

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

Asia-N. America box trade

26 VBS: takes the fast lane

The ‘go to’ system

27 VBS: discipline essential

Fees and penalties work

31 Middle corridor moves

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

Join leading port executives www.greenport.com/congress

24 COVID-19 booster

11 Tradelens take up

Kazakhstan scheme

Transparent data monitoring

Expansion programme

28 China corrosion coming?

11 SICK Monitoring Box

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

JNPCT rethink required

10 Digital trade corridor

More Blockchain momentum

is a proud support of Greenport and GreenPort Congress

FEATURE ARTICLES

17 Bollore sale

Smoothing the path

COVID BOOSTER:

JANUARY/FEBRUARY 2022

Extensive shore-power Cargotec and Konecranes tactics

REGULARS 17 Environmentalist More ocean literacy

18 The New Yorker

Moon-shot data flows

18 The Analyst

Re-shoring bandwagon

19 The Economist

Pandemic positives

Signs of stress

TITR intermodal plans

32 Chicken and egg? Hydrogen – risk and reward

34 Energy choices: how to plan Model for complex decision making

36 UNCTAD: a price to pay

Supply chain performance & strategy

39 Bromma seing the pace

New products launched

40 Berth right

Latest berthing aid tech’

43 Mobiles: growing in the wind

Wind turbine handling

46 Postscript

Bollore: the big sale

19 The Strategist

Liner largesse lacking

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

JANUARY/FEBRUARY 2022 | 5

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COMMITMENT

My team is my support – only the best will win. To manufacture world leading spreaders is a result of our dedicated staﬀ.

PORT & TERMINAL NEWS

MOVES TO WIN APPROVAL FOR SALE OF BOLLORE PORT ASSETS? As Port Strategy goes to press, the MSC Group is undertaking due diligence as part of the exclusive process it has agreed with Bollore to acquire 100 per cent of Bolloré Africa Logistics, comprising all of Bollore’s transport and logistics activities in Africa, on the basis of an enterprise value of €5.7 billion. The lessons of the past indicate that an important ingredient in the due diligence process will be gaining the

approval of the host port authorities with whom Bollore holds terminal concessions. Is it with this in mind that Cyrille Bollore, CEO, Bollore and former French President Nicolas Sarkozy arrived in the Ivory Coast in late January? Bollore has been involved in container terminal operations in Abidjan, Ivory Coast since 2004. It operates a container terminal in conjunction with APM Terminals

(APMT) and together with APMT has won the concession to build a new deep-water container terminal adjacent to the existing facility. The new terminal is expected to be operational at the end of 2022 and possessing the ability to accommodate vessels of up to 14,000TEU is seen to be a gamechanger. 8 For more on the Bollore sale of its Africa port facilities, see PS page at the rear of the magazine.

SEATTLE’S TERMINAL 5 COMMENCES OPERATIONS

BRIEFS Eight Concessions

MAWANI, the Saudi Port Authority, is planning to award eight multi-purpose terminal concessions at ports in Saudi Arabia. A Request for Qualification (RFQ) has been launched in conjunction with the National Centre for Privatisation & PPP (NCP). All concessions are expected to be awarded under a long-term public-private partnership agreement, using the Build, Operate and Transfer (BOT) model. Submission of Statement Qualification (SQQ) are expected by MAWANI and NCP by early February 2022.

Contecon Boost

International Container Terminal Services, Inc. (ICTSI) is investing US$230 million at its Contecon Manzanillo facility in Mexico. The project will see terminal capacity rise by 300,000TEU per annum, from 1.4 million TEU to 1.7 million TEU, per annum. The project will entail berths and yard construction and acquisition of quay cranes, rubber-tyred gantries, terminal tractors and other handling equipment. Project work is due to start in the second half of 2022..

Boluda Scores The first-phase of the modernised Terminal 5 in the Port of Seattle is up and running. The north berth of the two-berth upgraded terminal is the first to open with the south-berth expected to commence operations in mid-2023. In its original format the terminal was only capable of handling vessels of up to 6000TEU capacity but with the upgrade to both berths vessels of 18,000TEU capacity will be able to be handled. Modernisation work includes berth deepening, strengthening and power upgrades to support the four new ZPMC ship-to-shore cranes installed. Shore power will also be supplied to vessels when

alongside, 1500 reefer plugs installed, arrangements in place to facilitate noise management, faster truck processing and greater use of on-dock rail. Facilitating the movement of Asian cargo to the large, high consumption, US Midwest hinterlands is a key objective. On full completion Terminal 5 will comprise a modern twoberth 185-acre terminal able to serve the largest vessels in operation in Trans-Pacific trade. SSA Terminals is the terminal’s operator its lease agreement for Terminal 5 commencing with the completion of the first-phase construction. Total project cost is put at US$500m with the North West

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

8 The first vessel to call the upgraded Terminal 5 in Seattle, the MSC Monterey

Seaport Alliance providing US$340m and SSA Terminals US$160m. The ports of Seattle and Tacoma comprise the managing members of The Northwest Seaport Alliance. The 4782TEU capacity MSC Monterey recently made the first call at the upgraded terminal – larger vessels are expected to follow. Overall container volume moving through Seattle is on an upward curve, rebounding after a dip in 2020, the addition of major new capacity is thus seen as most timely.

Boluda Maritime Terminals has won the concession for the container terminal in the port of Arrecife in Lanzarote. The port operating subsidiary of shipping company Boluda Corporación Marítima, confirmed in a statement that the new facility will be added to its existing presence in ports in the Canary Islands, which includes Las Palmas, Tenerife, La Palma and Fuerteventura. The new concession will support the Valencia-headquartered company’s ships, with Boluda targeting synergies across its logistics chain.

JANUARY/FEBRUARY 2022 | 7

PORT & TERMINAL NEWS

SOUTHERN CHICKEN RUN GETS BUSY ... Southern Brazilian ports and shippers are seeing strong demand in chicken exports, which are up 25.7 per cent in revenue terms and nine per cent in volume. Two ports vying to be “Chicken Export Capital of the World” are the Itajai Port Complex (IPC, which includes MSC’s Portonave and the APM Terminals Itajai facilities) and Paranagua (where China Merchants Port Holdings Company (CM Ports), is the sole operator. Paranagua led the way last year with 1.9m tonnes (around 155,000TEU) of chicken (up from 1.75m tonnes in 2020) for a 42 per cent share of the market, followed by the IPC with 1.4m tonnes (slightly down from 1.64m tonnes) with a 32 per cent share (down from 34 per cent). Porto Itapoa came in third with 374,814 tonnes (up a significant 75 per cent compared to 216,741 tons in 2020 largely at the expense of the IPC), Santos in fourth increased from 340,148 tonnes to 368,826 tonnes for an eight per cent market share. According to the Association of Brazilian Protein Exporters (ABPA), export revenue totalled US$7.66billion in 2021 compared to US$6.09billion the previous year. Brazil exported 4.6m tonnes last year, up nine per cent over the 4.23m tonnes in 2020. “Brazilian animal protein exporters faced severe challenges in 2021, as did the rest of global exporters,” said Ricardo

BRIEFS Valencia Spending

The Port of Valencia, Spain is to invest almost US$1.25 billion over the next five years. The port has announced its new Business Plan 20212025 with this focusing on sustainability, innovation, accessibility and digitalisation across its facilities in Valencia and Sagunto. Investment in container handling will support continued growth in Valencia. For the January to end of November 2021 period, the port handled over 5.16m TEU.

8 | JANUARY/FEBRUARY 2022

Santin, the president of ABPA. “Lack of containers and reduced shipping routes have become problems for exporters, with increased shipping costs and

reduced shipping windows. We need to improve our logistical eﬃciency but we did well, as confirmed by the record balance of Brazilian chicken exports.”

8 The Port of Paranagua is Brazil’s leading exporter of chicken, with China the leading trading partner

…AND PORTONAVE EXPECTING MORE In order to accommodate rising volumes of chicken exports Portonave, the box terminal operated by MSC’s stevedoring arm Terminal Investment Limited (TIL), in January added a new service from CMA CGM and COSCO.

Portonave handled 66,110TEU of chicken exports during 2021, up an impressive 13.6 per cent over the 58,221TEU handled in 2020, and expects further increases this year now that the Brasex 1 service has been added. The Brasex 1 service will join

The Georgian government continues to work on an updated investment tender package for the construction of the first deep-water port of Anaklia in the west of the country. It is planned to announce an international process for the selection of investors in 2022, according to Natia Turnava, Minister

ANAKLIA – HERE IT COMES AGAIN of Economy and Sustainable Development in Georgia. The project ‘has history’ with earlier attempts at launching it failing to get oﬀ the ground. In January 2020, the authorities cancelled the contract with the Anaklia Development Consortium, a private entity, as a

result of it being unable to fulfil its financial obligations. This, in turn, has resulted in a legal challenge from the consortium via which it is seeking reimbursement of financial losses, claimed to be in excess of US$1 billion and restoration of the cancelled contract.

APMT’s GHG Goal

Autonomous Vehicles

Green Marine

APM Terminals, is bringing forward its net-zero greenhouse gas (GHG) emission target to 2040. This represents a 10-year advancement of an initial 2050 ambition for The Hague-based member of AP Moller Maersk (APMM) and follows its 70 per cent reduction in total emissions already being set as an interim milestone for the 2020-2030 period. The decision represents a key contribution to a wider target already set by AP Moller-Maersk.

Ford UK has completed tests at DP World’s London Gateway terminal looking at how cargo deliveries by autonomous vehicles impact port operations and workflows. In a joint statement, DPW and Ford note that investment of over GBP5.5 billion (US$7.32 billion) in autonomous vehicle research worldwide will be undertaken by Ford up to 2025 and GBP2 billion (US$2.66 billion) investment by DP World in the UK.

the same carriers’ Brasex 2 service which already calls Portonave, thereby giving the growing terminal two calls per week. Brasex 1 includes calls at Kingston, New Orleans, Houston, Veracruz, Cartagena, and Manzanillo.

Leading US port operator, Ports America Group (PAG) has confirmed is participating in Green Marine, a voluntary environmental certification programme. The company’s Baltimore terminal will be the first marine facility to join the programme, with other East Coast terminals to follow before operations on the US Gulf and West Coast of North America are added. Ports America operates in 70 terminals at 33 ports throughout the United States.

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

PORT & TERMINAL NEWS

BRIEFS Simandou Review

JV FOR NEW HUMBER TERMINAL UK port operator, Associated British Ports (ABP) and Swedish ferry operator, Stena Line, have confirmed a joint venture to develop a new terminal at the Port of Immingham, in the Humber region of the UK. The £100 million (US$135.6 million) deal will see Stena Line operate the new facility for a 50-year period. ABP, port owner and landlord in Immingham, has submitted an application to the UK Secretary of State for Transport for a Development Consent Order by the Summer of 2022, with a view to the terminal becoming operational during 2025. This news follows on from Stena Line relocating its Rotterdam freight service to the Port of Immingham.

The project entails the relocation of Stena Line’s existing Immingham cargo operation to a new site adjacent to Immingham Outer Harbour, where ABP will commit to constructing the purpose-built facility. Stena Line has stated that it needs to develop additional capacity and expand its Immingham operation for the longer-term. The planned new terminal will be on the main Humber Estuary and allow the introduction of larger vessels, thereby raising vessel capacity. Niclas Martensson, Chief Executive Oﬃcer, Stena Line, explains: “We are very pleased to announce that we will now take the next steps in the strategic vision for our routes between the UK and Continental Europe. Our

8 Stena Line and ABP are developing a new terminal on the Humber in the UK to meet demand for the next 50 years

freight levels are at record levels and are continuing to increase, so we want to build on this success and provide additional services with the development of a brand new terminal and berths at the Port of Immingham.” Stena Line is one of the world’s largest ferry operators, It currently oﬀers 18 routes, using 37 vessels and connecting 13 countries across Northern Europe. There are four daily freight services from the Humber to The Netherlands and for 2021 the company confirmed its North Sea routes moved record levels of cargo, which included a 28 per cent year-on-year increase in unaccompanied freight.

8 Evergreen’s terminal in the Port of Los Angeles is to gain two more cranes to improve operating eﬃciency. Everport Terminal Services, Evergreen’s joint venture with Ports America for terminal operations at US West Coast ports, is leasing the units from Evergreen Shipping Agency (America) Corporation. The two additional cranes will supplement the existing four units already in service at the terminal and represents a direct response to fast growing traﬃc volume.

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

The almost never-ending plans to unlock the inland located Simandou iron ore project have hit another bump in the road to implementation. Mamady Doumbouya, President of Guinea, is understood to have ordered a review of the associated rail and port infrastructure plans. Liberia is also reported to be pursuing a similar path, taking a fresh look at ArcelorMittal’s rail line to transport ore through its territory.

XIAMEN: Full Auto’

The Xiamen Ocean Gate Container Terminal (XOGCT) has moved a step closer to full automation. The joint venture of COSCO Shipping Ports (70 per cent) and CMA-CGM’s Terminal Link (30 per cent) completed its testing phase in December 2021 and is now using automated guided vehicles (AGVs) in its cargo handling operations. The terminal additionally deploys 5G internet to connect smart gates, cranes and AGVs to the terminal’s operating system. Design capacity is reported to be 2.6 million TEU/yr.

Singapore Tops

The Maritime and Port Authority of Singapore (MPA) reports that the Port of Singapore handled a total of 37.5 million TEU in 2021. This represents a rise of 1.6 per cent over the 2020 total and, according to MPA, enables it to claim the title of the world’s busiest container transshipment port. Also, the first two of a total 21 planned berths are now operational at Singapore’s new Tuas mega port. The 1,337ha project is due to be completed in the 2040s and oﬀer a handling capacity of 65 million TEU/yr.

JANUARY/FEBRUARY 2022 | 9

DIGITAL NEWS

BRIEFS MSC goes for Kale

MSC Thailand has signed a new partnership with Kale Logistics Solutions (Kale) for the digital delivery of documentation across the supply chain in Thailand. Kale is collaborating with TIFFA EDI Services to oﬀer CODES Electronic Delivery Order (e-DO) processes to enable freight forwarders, shipping lines, custom agents, importers, and terminal operators to exchange and receive delivery order documents digitally instead of in the traditional paper form.

FIVE-YEAR DIGITAL PLAN FOR NIGERIAN PORTS AUTHORITY

Kiel Tests

The Federal Ministry of Transport and Digital Infrastructure (BMVI) of Germany will fund the establishment and operation of a digital test field in the seaport of Kiel. As part of the D-Tech-Base project, port terminals for roll-on/roll-off (ro-ro) traffic will become test fields for the new 5G terminal communication and traffic control. The project, costing US$1.99 million (€1.75 million), will run for two and a half years until 30 June 2024, and focus on Kiel’s road, rail and ferry terminal Ostuferhafen as well as on the freight and passenger terminal Schwedenkai.

Info Highway in LB

The Port of Long Beach in California, USA, is launching a new “Supply Chain Information Highway” in conjunction with technology consultant, UNCOMN. This new cargo visibility service software aims to help cargo shippers improve operational decisions by providing data to integrate into their own systems and track their cargo through the supply chain. As a consequence, it is hoped that shipments are better planned and delays at the port are reduced.

10 | JANUARY/FEBRUARY 2022

The Nigerian Ports Authority (NPA) has set a target of creating and introducing a fully digital ecosystem in all of the country’s ports by 2025. The ambitious target has been confirmed by Mohammed Bello-Koko, Acting Managing Director, NPA, in the company’s “Digitalisation Roadmap and Current Information and Communications Technology (ICT) Implementation Status” announcement. This new strategy has a central focus based on enterprise computing, with a heavy dependence on network infrastructure, while also using a

centralised and shared database. To achieve this fully integrated port operating system, NPA has confirmed that it intends to adopt a phased ICT deployment. In doing so, a number of benefits are expected to be gained, including streamlining internal port business processes, making use of high-end smart technologies and to record, monitor and utilise more data to promote better decision-making. Other key objectives for ICT include a Command, Control, Communication and Intelligence System (3Ci) for maritime domain awareness and management of vessel calls, along with Truck Call

8 The Nigerian Ports Authority has set an ambitious digitalisation agenda

Up and Gate Access Control for the control and scheduling of trucks to the ports. Bello-Koko notes: “Our goal is to leverage on technology to close the gap between us and the major international ports…a digitalised port helps in making better informed operational decisions, increased eﬃciency, improve collaboration amongst stakeholders, lower port costs and ultimately help to meet the ever-increasing customer expectations in a timely manner.”

ASIA-EUROPE DIGITAL TRADE CORRIDOR CrimsonLogic, a PSA Group company, has signed a Memorandum of Understanding (MOU) to establish a digital trade corridor supporting the Kazakhstan region. Partners collaborating in the venture are multimodal transport and logistics company KTZ Express and the local Information Technology partner Digital Silk Way. The planned digital trade is targeting the Trans-Caspian International Transport Route,

which starts in Southeast Asia and China, moves through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia and onward to Europe. Key objectives of the new digital service are to better facilitate business-to-business-togovernment (B2B2G) trade regulatory compliance and improved global trade connectivity. KTZ Express, the subsidiary of Kazakhstan Rail Company, will be the logistics operator for the integrated corridor for

Kazakhstan and Central Asia. Nurlan Igenbayev, CEO, KTZ Express, states he expects the joint-venture partners to be able to “accelerate the transition to paperless technology for shippers and consignees to transport goods.” Saw Ken Wye, CEO, CrimsonLogic, notes: “With the increased trade flow between Asia and Europe, Kazakhstan is centrally positioned to serve as a logistics hub, especially for supporting key markets such as China.”

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

NEWS REVIEW Use of Tradelens Blockchain technology has received a boost with the technology being introduced in three important ports across a wide geographic area. Rotterdam, Thessaloniki and the customs authorities in Pakistan are all tapping into the technology. The Port of Rotterdam has released a new service oﬀering, Quay Connect, which aims to make customs procedures applicable from the Netherlands to the UK easier. The service allows for the automatic exchange of information with the UK’s customs authorities at ports. This enables exporters to have the ability to digitalise and streamline exporting and customs processes. According to the port, a pilot progamme has seen shipment savings of at least 30 per cent for each customs clearance, the faster and more eﬃcient processing of documents and goods (at least 20 per cent faster), a general reduction in manual work and less scope for errors. Thessaloniki Port Authority (TPA) is expecting the TradeLens platform to improve asset and yard management by better leverage of information from partners in the supply chain, while also being able to reduce the cost of connecting to each individual shipping line customer and the wider port community. The other major benefit to Thessaloniki is to replace manual, paper-based and time-consuming administrative processes with digital procedures that optimise and accelerate the decisionmaking process for the port and its associated ecosystems.

Optimising Truck Flow

Hamburg Port Authority (HPA) is collaborating with HERE Technologies to better manage all truck traffic. Digital information boards (Dynamic Information on traffic Volumes in the Area of the port -‘DIVA’) provide truck drivers with traffic-relevant information to help them better navigate through the port. HERE’s Corridor Travel Time-as-aService solution means HPA can also better monitor traffic movements on all roads.

TRADELENS BLOCKCHAIN TECHNOLOGY TAKE UP 8 Customs authorities in Pakistan will utilise the TradeLens platform to help combat trade-based money laundering

In a third development, the Pakistan Single Window (PSW) Company has signed an agreement with TradeLens on behalf of Pakistan Customs, to digitise import-export

documentation of the containerised cargo moving in and out of the country. The federal government in Pakistan has an ongoing initiative to transform Customs processes

in the country by modernising documentation through a secure, paperless and digital solution. Adopting the TradeLens platform is expected to strengthen controls in Pakistan against trade-based money laundering. The TradeLens platform provides visibility across the whole supply chain network and utilises detailed input from industry, which includes direct integration with more than 180 ports and terminals globally, along with in excess of 15 customs authorities and an increasing number of intermodal service providers.

MONITORING BOX LAUNCHED SICK (UK) Ltd has launched a new system that enables the monitoring and preventative maintenance of sensors, machines, process and plants. It is called “The Monitoring Box” and uses pre-configured apps on a wide range of SICK sensors. Consequently, the Box is able to provide transparent data monitoring through an intuitive, browser-based dashboard. Device data is then processed via IoT gateways to enable local data storage on either a user’s premises or via a secure connection to the SICK cloud. It is

also possible to adapt the Box for specific operating requirements in order to oﬀer live status feedback and historical analysis. Once customers are logged in, they are able to view all their registered devices with the AssetBrowser and then view incidents and graphical representations to identify historical patterns and trends, and use the Data Explorer and Event Log to review a record of alarms and notifications. Neil Sandhu, Product Manager for Measurement and Systems at SICK UK, states: “Bolt on the SICK

Monitoring Box and transparent information about the health of your machines is just a few short steps away….machines and systems become more available and efficient. Unplanned maintenance time is reduced and operating staff can be deployed more efficiently to respond to any issues that occur. You will extend the operating life of machines through a better understanding of historical trends and patterns.”

IDENTEC Joins TIC 4.0

PSA Int’ Funding

Wave Converter

IDENTEC SOLUTIONS, of Lustenau, Austria, has joined the Terminal Industry Committee 4.0 (TIC 4.0). The mission of TIC 4.0 is to promote, define and adopt standards that enable the industry to develop the 4th industrial revolution. This includes ports, shipping lines, freight forwarders, software providers, hardware developers and process designers. Members of the TIC 4.0 include A- list port and terminal operators..

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

PSA International and Straits Trading have been confirmed as leading the funding to support a global fintech powerhouse leveraging on blockchain technology, according to digital financial start-up company, SDAX Financial. A total of US$24 million has been raised by SDAX Financial Group, an integrated digital financial services platform, driven by a Digital Asset Exchange. PSA expects to contribute to decarbonisation via this platform.

BRIEFS The Port Authority of Valencia (PAV) is installing a device to generate electrical energy from waves. In conjunction with the City Council of Valencia, a pilot Wave Energy Converter is being installed in the northern part of the Port of Valencia, in an area known as the “hammer” where wave forces are stronger. This project complements with the PAV’s strategic goal of decarbonisation and the commitment to renewable energy sources.

JANUARY/FEBRUARY 2022 | 11

Box clever Intelligent engineering for exceptional container handling. liebherr.com

Rubber tyre gantry cranes

EQUIPMENT NEWS

KALMAR GOES ALL ELECTRIC… Kalmar is launching a new range of products for the port and logistics industry, with a specific focus on electric power and the application of robotic equipment. The Cargotec-owned company has launched its new Kalmar Electric Reachstacker, Kalmar Electric Heavy Forklift and a Kalmar Ottawa Electric Terminal Tractor, which fulfils an objective of delivering a fully electric portfolio for the start of 2022. The new electric reachstacker range consists of eight models, comprising six top lift items and two combi lift, with lifting capabilities of up to 45 tons. Importantly, all of the models in this range are fuelled by lithium-ion batteries with Bosch Rexroth drivelines. The new electric forklift trucks feature seven lithium-ion powered models all with Bosch Rexroth drivelines. Lifting capacities range from 18 to 33 tons. In addition, the Ottawa T2E+ Electric Terminal Tractor range

Napoleon cranes

includes five lithium-ion batterypowered models, with three models targeting work in logistics facilities and two designed for container terminal applications. Kalmar notes that this range aims to replace the Kalmar Ottawa T2E, which was launched in North America in 2018. One advantage of the new electric range is a built-in thermal management system which allows the equipment’s batteries to remain within an optimal temperature range at all times, thereby enabling the machinery to work eﬀectively across a wide range of varying climates.

8 Kalmar’s new electric reachstacker is one of eight new models

Michael van Roozendaal, President, Kalmar Mobile Solutions elaborates: “In 2018 when we made our promise to have our full oﬀering available as electrically powered by 2021, over 50 per cent of our cargo handling equipment was already available with electric power sources… we have a strong track record in bringing to market solutions that help our customers to reduce the environmental impact of their operations.”

...AND A FOCUS ON ROBOTICS 8 Accessibility to automation and robotics technologies for new customer segments, such as distribution centres, as well as the established ports and terminals market is being targeted

Kalmar has also introduced a new range of intelligent, flexible and autonomous mobile equipment solutions that have been designed to improve safety and eco-eﬃciencies but without negatively impacting operational productivity. This new equipment has been dubbed as the Kalmar Robotic Portfolio. The new portfolio comprises the Kalmar RoboTractor,

BRIEFS

RoboLifter, RoboStacker and RoboHandler. The company has confirmed that prototypes of each item of equipment are currently being tested at various locations globally. Kalmar explains that moving “intelligence” from central systems to the equipment means robotised solutions oﬀer greater equipment flexibility and scalability. This makes the

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

machinery particularly suitable to companies that are operating smaller equipment fleets. In addition, all of the equipment in the Kalmar Robotic Portfolio will be built on a standardised platform, which means that it will also be a more simplistic and cost eﬀective process to deploy with the help of cloud technologies – the company additionally confirms that the new equipment is fully compatible with all Kalmar automation solutions. Lasse Eriksson, Vice President, Technology, Kalmar, sets out the company’s thought process behind the new equipment: “With this new portfolio we are laying the foundations for a future driven by fully autonomous, unmanned material handling with zero accidents, zero emissions and maximum productivity.”

The Napoleon Avenue Container Terminal at the Port of New Orleans (Port NOLA) has taken delivery of four new Post Panamax cranes from ZPMC in China. The project represents an investment of US$112 million at the facility, including US$49 million for the construction and delivery of the new units and a further US$63 million to modernise the existing wharf and extend the crane rail infrastructure.

Visy in Egypt

October Dry port, Egypt, has awarded the tender for delivery of truck and rail Optical Character Recognition (OCR) portals alongside a gate operating system (GOS) to Finnish-based Visy and its partner, Prime Trading & Contracting. On-site installation work is scheduled to commence before the end of Q1 2022. The award is the second OCR project for Visy in Egypt – in 2017 it was awarded the delivery of truck OCR and automated gate solutions for the Alexandria Container Terminal.

Patrick’s Pondus

Patrick Terminals has implemented the Pondus weighing solution into its Sydney AutoStrad operations. A primary feature of the system is to identify mis-declared weights through statistically sampling containers for weighing and then automatically notifying customers of weight discrepancies in the range +/- 1 tonne. Both import and export containers are sampled for weighing on the Pondus stand and any mis-declared container found to be outside of the 1-tonne tolerance will be charged a Weight Amendment Fee.

JANUARY/FEBRUARY 2022 | 13

EQUIPMENT NEWS

HAMBURG PLOTS SHORE POWER Hamburg Port Authority (HPA) is planning to install shore power systems at its Burchardkai, Tollerort and Eurogate container terminals, as well as the Steinwerder and HafenCity cruise facilities. Funding for the project is being provided by municipal sources, together with a federal programme currently in place to promote the expansion of shore power systems in Germany. HPA has stipulated that Siemens is expected to become a general contractor for the container terminals Burchardkai and Tollerort container terminals, with PowerCon taking the same role for the Eurogate container facility and the Steinwerder cruise facility. In addition, all ship connection systems for the container terminals are being developed by Igus and for the cruise terminal by STEMMANN-Technik. As a result, these project partners and the terminal operators will be engaged in what HPA describes as “innovative pioneering” work, reflecting how the majority of the planned shore power systems are some of the first to be introduced into European ports. Initial tests are expected to commence in early 2023 at the container facilities, with the HafenCity cruise terminal planning to be using shore power during 2025.

The application of shore power in Hamburg’s container terminals and HafenCity cruise facility is intended to deliver a major

contribution to the decarbonisation of the port ahead of planned EU regulations due to come into force in 2030.

8 Heavy Lift, a business division of EIE Group, has delivered two Konecranes Liftace SMV 4532 TCE5 reach stackers to Yellow Jersey Logistics (YJL), a full-service transportation company located in Germiston, Johannesburg, South Africa. The reach stackers feature Konecranes’ state-of-the-art TRUCONNECT suite of remote service products that allows operators to track the real-time usage of the truck and maintain truck condition from control systems and sensors. In addition, smart load-sensing hydraulics sense the weight of the load and adapt lifting power accordingly to only provide maximum power when required, reportedly resulting in fuel savings and reduced emissions and noise

BRIEFS Merger Moves

Cargotec and Konecranes are continuing dialogue and cooperation with competition authorities, and have been considering ways to mitigate concerns, raised to secure approvals to complete their planned merger. The latest development involves submitting a remedy package to the European Commission (EC) comprising a commitment to divest Konecranes’ Lift Truck business and Cargotec’s Kalmar Automation Solutions.

14 | JANUARY/FEBRUARY 2022

8 Port of Hamburg – shore power roll-out, a major step on the path to decarbonisation

CSX Carolina RMGs The CSX Carolina Connector Intermodal Terminal (CCX) in Rocky Mount, North Carolina (NC), has taken delivery of three fully automated gantry cranes (RMGs) from Liebherr Container Cranes. Liebherr reports that the cabinless RMGs have been supplied with its Remote Operator Stations (ROS). The new equipment is configured to be able to work five rail lines and a four-high, five-wide container stack.

Fender Test Bed

IRM Oﬀshore and Marine Engineers of Ahmedabad, India has confirmed the completion of its new and independent testing facility in India which can test the physical and chemical properties of all types of rubber fenders and oﬀshore rubber engineering products. The facility includes a state-of-the-art Hydraulic testing press used for carrying out load deflection test on fenders.

RMGs at PoV

The US East Coast Port of Virginia (PoV) has confirmed a new order for three RailMounted Gantry (RMG) cranes from Konecranes for its Norfolk International Terminals (NIT) facility. These new RMGs will be remotely operated from a control centre, so they will not have cabins. Each item can lift containers 1-over-2 high, handling double-stacked intermodal trains. Delivery of the new RMGs is scheduled before the end of 2023.

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

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THEENVIRONMENTALIST CHARLES HAINE, ESG Specialist Maritime

It’s a new year and many say the tide is turning on the need to address neglect in the marine environment. We were reminded about wanton consumerism – and the inevitable waste that ends up in the sea – during lockdown. COP26 actually had a lot of ocean-themed content; after all, 2021 was the beginning of the UN Ocean Decade. The upturn in marine stories has been impressive. There’s been much recently on biodiversity and ocean rewilding, such as seagrass restoration, alongside the raft of news on low emission and hydrogen propulsion in shipping that tend to be the headline grabbers. The Ocean Conservation Trust has been busy creating a template for a much needed ‘Ocean Recovery Declaration’. Under the moniker ‘a motion for the ocean’, their activities are nudging local authorities to “think ocean”. The aim is to ensure that coastal action is integrated alongside that being progressed on the landside, in response to declared climate emergencies. Falmouth Town (quick oﬀ the mark) and Plymouth City Councils in the UK are already on it, engaging and formally debating the issues. You will remember from school geography lessons, that oceans regulate the global climate, mediating temperature and driving weather. They influence precipitation and its eﬀects, including floods and droughts. In the last two centuries, oceans have absorbed a third of carbon dioxide produced by human activities and 90 per cent of the additional heat trapped by the rising concentration of GHG emissions. As well as this creeping challenges of sea level rise, increasing storminess and polluted waters are also threatening coastal communities, ecology and transport. The condition and health of the seas is fully connected, and fundamental to climate regulation. Yet the topics are under-represented in strategies and policies, investment, R&D and action programmes. Ocean

OCEAN LITERACY HAS TO BE HIGHER UP THE AGENDA ‘Thinking Ocean’ is not receiving the prominence it deserves – there is a strong case for business stepping up, especially marine businesses

literacy, in society, seems to be too light. BETTER CONNECTION Some UK councils are trying to better connect people to the ocean. Plymouth is advancing this through its National Marine Park, Plymouth Sound, while the City supports a sustainable fishing industry, and advocates good marine management by hosting a consultative forum on fisheries and conservation. There’s a Plan for Plastics and a carbon neutrality journey to 2030. The blue economy agenda rightly also includes the health and wellbeing of the marine environment. That is needed to deliver eﬀective benefits such as storing captured carbon in saltmarshes and seagrass beds, and equitable access to clean and safe recreation. Here, the maritime culture is being put at the heart of an economic recovery programme and that’s great to see. Using UK National Lottery Support (keep buying those tickets!), Cornwall Wildlife Trust is helping children – including

‘‘

those from deprived communities – learn and experience the ocean with a view to boosting knowledge and becoming empowered to get more involved. After all, the typical politicians’ response to climate and ecological emergencies is to leave a monster legacy challenge for the next generation, especially after 2050. These youngsters will be in the prime of their careers by then, and their skills much needed to cleanly power marine traﬃc, transfer cargo and goods, and eﬃciently manage energy while balancing human needs and nature alongside critical maritime industry. At a local level, there’s talk of attaining net zero, taking smarter approaches, levelling-up, and lobbying Government. However, there’s not enough mention of the role of ports, harbours, wharves and other facilities that are the hubs of economic prosperity, employment, and no doubt soon – energy storage and resources. Are ports forgotten, involved but keeping a low profile, or too busy to participate right now?

… businesses need to be part of the eﬀort to help promote, demand improvement and help deliver on healthy seas

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

8 A positive sign – killer whales have been spotted of the Cornish coast in the UK – the first southerly sighting in more than 50-years

GET INVOLVED If there is to be some kind of collective marine citizenship, businesses need to be part of the eﬀort to help promote, demand improvement and help deliver on healthy seas. This is where port authorities, terminal operators, and those in the logistics supply chain can collaborate, with time and co-financing, to add their mighty human and commercial clout to help scale-up local and regional initiatives. Any environmental, ESG, CSR or sustainability strategies in private sector companies would be particularly meaningful if allied to this push. There are plenty of opportunities to influence. The MMO (Marine Management Organisation) is consulting on the eﬀectiveness of England’s six regional Marine Plans. The responses to a monitoring survey are going to be used to support decision-making and inform Parliament. For starters, ports and harbours, and indeed all active organisations across the maritime and coastal sector, ought to have their say and propose supportive measures for ocean recovery. (By 7 March 2022; https://linktr.ee/ marinemanagementorganisation).

JANUARY/FEBRUARY 2022 | 17

THENEWYORKER BARRY PARKER

The backlogs at ports, and the counts of waiting vessels at historical highs, can’t stay out of the news. The Omicron variant appears to be cresting in the USA but it did sideline dock and terminal workers- including in hard-hit Los Angeles-Long Beach (LA-LB). Meantime, ongoing lockdowns of ports in Asia, just prior to the Chinese New Year, will lead to uneven cargo flows, and a different wave of disruptions, in the coming weeks. There has, however, been some good news. The US$17 billion for ports in the USA’s Infrastructure Bill, the US$2+ billion for revitalising ports in the California budget, and, around my hometown- New York, some big bucks (with unspecified amounts) to revitalise the Brooklyn waterfront for offshore wind projects. But physical improvements, while much needed, are not the entire story. There have been some inchoate efforts to look at the “data” side of freight movements, the Federal Maritime Commission has taken baby steps to study data, and the Ocean Shipping Reform Act of 2021. If this initiative moves ahead

A CASE FOR A SYSTEM WIDE LOOK AT INFORMATION FLOWS?

through the U.S. Senate then it will provide for the National Academy of Sciences to study cargo-related information data flows. As I write this, it’s impossible not to be distracted by all things pandemic-related. But there is a silver lining, maybe. 2020’s “Operation Warp Speed”, described as a “Moonshot eﬀort” by some (harkening back to the 1960’s Glory Days) which developed vaccines in a shorter timeframe than anyone could have imagined, might oﬀer some inspiration for the port and supply chain community. Dramatic improvements on the data side

enabled the medical experts to work their magic / wonders. With analogous improvements when it comes to freight movement and shipping data, I am wondering if the next Moonshot might be aimed at cargo flows and supply chains? Let me be clear, I am not suggesting that supply chain crises, late holiday gifts, shortages of Peleton bikes or whatever, and those 100+ ships anchored around San Pedro Bay have brought anything even remotely close to the human impacts of the pandemic (we are now two years, and 800,000

8 Will the next ‘Moonshot’ be aimed at cargo flows and supply chains?

victims, in). However, there has been, and will continue to be, high economic costs of poorly functioning flows of cargo around the USA. I will leave it to the economists to quantify the huge costs, perhaps in the US$Trillions. Figures of this magnitude, however, do seem to justify the proposition that a system-wide look at the information flows surrounding cargo, where ports play a pivotal role, supported by sponsorship at the highest levels from government.

THEANALYST PETER DE LANGEN

RE-SHORING: A BANDWAGON GATHERING MOMENTUM? This year, C&A, a large fashion retailer, started producing jeans in bulk, in the heart of Europe. Their new factory is carbon neutral, heavily robotized and digitalized and has an initial capacity of 400,000 pairs of jeans per year. This is an interesting case, as intuitively one could think that jeans (or textiles in general) would be one of the segments where re-shoring would be the most challenging (a similar eﬀort by Adidas for heavily robotized production in Germany and the US having previously failed). Both the COVID pandemic and

18 | JANUARY/FEBRUARY 2022

the surging shipping costs, however, play into the hands of more re-shoring. A 2021 report for the EU concludes: ‘The empirical evidence on reshoring in the last decade highlights that reshoring processes are on the rise, with larger firms and medium to high-tech industries exhibiting the greatest reshoring propensity. However, these processes remain so far limited in scale and thus have exerted only small eﬀects on the EU economy as a whole’. The report goes on to stress the case for ongoing initiatives to promote re-shoring, as part of the

EU’s push for ‘open autonomy’. The EU is not alone in this respect; the pandemic has pushed reshoring initiatives of policymakers in various countries, both by nations with reshoring policies in place (e.g. France) and by countries without such policies (for instance Japan and India). So far, the eﬀect on freight volumes has not been noticeable; the container volumes in most of the large EU ports in 2021 are substantially higher than in 2020. The C&A initiative accounts for less than two per cent of the total jeans sales in Europe. However,

this may be one of these cases where it takes a relatively long time before the impact of new developments becomes clear. As an example, Economist Robert Solow famously said in 1987 that the computer age was everywhere except for the productivity statistics. This changed in the 1990s when productivity growth in sectors like technology, retail, and wholesale was huge. Likewise, one could argue now ‘re-shoring is everywhere except in the container volumes’. Let’s see where we stand 10 years from now!

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

THEECONOMIST BEN HACKETT

Shortages in shipping capacity cannot be put down to excessive levels of trade volumes. The surprising picture of global consumer trade in containers shows that there been relatively little fluctuation in monthly volumes despite two years of lockdowns and restrictions on economic and community activities. Equally, the sharp rise in freight rates has not been due to volume of trade. A bold statement for sure, yet consider the following: 5 Global container trade, according to “Container Trade Statistics” data shows that over the 16 months to November 2021 the monthly average movement was 14.9 million TEU with the exception of the normal February Chinese New Year decline to 13.2 million TEU in February 2021, followed by a sharp recovery. 5 North America imports averaged 2.9 million TEU monthly with a 6 per cent drop

COVID-19 PANDEMIC HAS NOT BEEN DISASTROUS FOR GLOBAL TRADE

in February 2021 followed by recovery. 5 Europe imports averaged 2.9 million TEU monthly with a 10 per cent decline in February followed by a 17 per cent rise then back to average levels. Despite the theoretical availability of containership capacity over this time, freight rates exploded to provide carriers with bonanza profits as ships became unavailable due to poor crew vaccination management,

8 The sharp rise in freight rates has not been due to volume of trade

Chinese port lockdowns in the battle against Covid-19 and labour shortages in North America and European ports and along the logistics supply chain due to Covid-19 illness. This created the shortages in the retail and industrial sectors that have caused an element of shortages and pressures along the whole of the transportation chain.

Economic indicators are giving us a paradoxical view of the direction of the global economies. Job vacancies are high as are the number of employees quitting jobs in search of better opportunities. At the same time, many workers are currently testing positive, reportedly with up to 10 per cent of workers absent due to covid or isolation. Despite all the hurdles in the way, the indications are that the major economies are finding their way back to pre-pandemic levels of economic growth suggesting that the new normal may well be to down-play the risk of Covid and focus on ridding all restrictions and living with it. Much of this may be driven by governmental support packages hoping that a sustained recovery will follow. However, with growing political and military tensions between the three super powers the next few months look rocky.

THESTRATEGIST MIKE MUNDY

EARNINGS BONANZA BUT LITTLE SHARED LARGESSE There is no shortage of reports about the record earnings that shipping lines have chalked up in 2021 and which are forecast to continue in 2022. There are few signs, however, that common user terminals will see any associated benefits. As inflation builds and service challenges grow, as a result of erratic supply chain performance, it might be reasonable to assume that there is a case for a bit more give and take on the part of shipping lines when it comes to contract negotiations with terminals. But it seems there a few signs of this. Indeed, there is a body of opinion in the terminal sector that suggests the opposite is often the case – “with their new found wealth the lines have grown more bullish,” as one informed party puts it.

Why? Is there an underlying anxiety on the part of lines that when ‘the party ends’ – when a flood of new tonnage swings the demand supply balance back into the old story of excess capacity – that they will suﬀer as a result of giving ground on terminal fees and service requirements? Or is the thinking that with all the new tonnage set to come on line this a major incentive to not allow terminal costs to escalate? But to put it in perspective, shipping consultancy Drewry puts the combined EBIT for liner earnings in 2021 at US$190 billion and for 2022 (wait for it) at an estimated US$200 billion! Surely with this level of earnings there must be some room on the part of lines to oﬀer a little largesse towards the terminal

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

sector, especially when terminals have repeatedly been asked to contain costs and increase investment over the previous many difficult years endured by liner operators? The most striking net effect of course of those difficult years has been consolidation in the liner sector which, one way or another, has ended up with more power concentrated in the hands of fewer players. This only serves to make things more challenging for the terminal sector when seeking to achieve realistic earning levels from client lines. So, what next? Well for the sake good order it should be said that terminals invested in by lines can partially at least be excluded from this discussion – as a rule they have the security of guaranteed volume and more

volume can always be added (although their status as internal cost centres always places a question mark over true productivity). Innovative common user terminals do have some other avenues open to them that may be progressively developed in the future – for example, direct approaches to big cargo owners to secure preferred terminal operating arrangements which could possibly negatively impact the current Terminal Handling Charge (THC) arrangements applied by the lines. Bottom line, however, liner operators may just be well advised to remember the old maxim that if you are not kind to people on the way up don’t expect any mercy on the way down!

JANUARY/FEBRUARY 2022 | 19

ALIMAK INDUSTRIAL ELEVATORS

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TERMINAL CONCESSION: JNPCT

BID CONTROVERSY LOOMS Perceived inequalities in the bidding process for the Jawaharlal Nehru Port Container Terminal, which work to the advantage of existing operators, suggest it might be time for a rethink Will the many bidders for the Jawaharlal Nehru Port Container Terminal (JNPCT) be able to compete on an equal footing? There are two core elements of the recently released Request for Proposals (RFPs) for the terminal concession that suggest parties already operating at Jawaharlal Nehru Port (JNP) have a distinct advantage over the other bidders – the time allowed for bid submission and the ability to meet minimum volume requirements. There are five existing container terminals at JNPT, including the now public sector operated JNPCT which is being offered for concession. DP World operates two of the terminals, the Nhava Sheva International Container Terminal (NSICT) and the Nhava Sheva (India) Gateway Terminal (NSIGT). The remaining two operators are Gateway Terminals India (GTI), which is APM Terminals together with the Container Corporation of India (CONCOR - a Government of India undertaking) and Bharat Mumbai Container Terminals operated by PSA International Pte Ltd. All of these parties, with the exception of CONCOR, are bidders for JNPCT. APM Terminals on this occasion is bidding together with the shipping line Wan Hai, a major operator in the region. Also in the mix is the Mediterranean Shipping Company (MSC) via its affiliate Terminal Investment Limited (TIL). MSC is a major line active in the port and TIL is bidding together with Adani Ports, the leading Indian container terminal operator. Adani has long been trying to gain a foothold in JNP, India’s major containerport, and has previously successfully collaborated with MSC/TIL; notably in India at Mundra Port where they operate the Adani International Container Terminal Private Limited (AICTPL) on a 50: 50 equity basis. All of these parties, due to their presence on the ground and working knowledge of JNP, are seen to be afforded a considerable advantage as a result of the very limited time made available by the Jawaharlal Nehru Port Trust in which to submit bids. The RFP was made available from December 24 and the submission date is just a few weeks on, i.e. 17 February 2022. Even under normal circumstances the typical time allowed for the submission of an RFP for a high-capacity container terminal is usually a minimum of six months and under COVID conditions longer. The incumbents can leverage this situation to gain a significant advantage over other domestic and foreign bidders which include Q Terminals, CMA Terminals together with Abu Dhabi Ports and JM Baxi Port & Logistics, International Container Terminal Services Inc, JSW Infrastructure and Ports, Essar Ports and All Cargo Logistics. There is a particularly interesting situation associated with DP World’s bid. With terminal facilities adjacent to JNPCT if DP World wins the concession this would give it a continuous quay length of 1610m offering significant scale benefits. Conversely, if DP World does not win and MSC/TIL/Adani does it stands to lose around 60,000TEU a month through diversion of this traffic to JNPCT. DP World has it all to play for and a strong bid is expected. UNFAIR ADVANTAGE JNPT has set the main bid criteria as the highest royalty fee per TEU with the base for this put at US$24. Coupled with this

the requirement for bidders to accept a Minimum Guaranteed Cargo volume, set at 630,000TEU in Year One rising to 1,220,000TEU in Year 10. Again, this can be seen to oﬀer an unfair advantage to the existing incumbents or major port users who, practically speaking, have the ability to move cargo from the other terminals to meet this requirement. Further, the requirement in itself can be seen to be challenging. In FY20 JNPCT handled 718,863TEU and in FY21 this reduced significantly to 544,027TEU. Overall, there is a record of decline with volumes dropping year on year from a high of 1.53mTEU in FY17. FY22 is likely to show a higher throughput under COVID conditions but a slowdown is anticipated in the era of recovery from the pandemic with a potential return to the previous pattern of traﬃc development, a probability cited by a number of informed observers.

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8 Key bid conditions for JN Port Container Terminal raise significant level playing field issues

… what is the rush when it comes to bid submission?

Competition for traﬃc will also be further exacerbated by the addition of major slices of new capacity and particularly that expected in the near term as a result of the phase 2 expansion of PSA’s Bharat Mumbai Container Terminal. This will take overall annual container capacity up to around the 10mTEU/yr mark. Longer term there is also the government approved development of the greenfield, deepwater port at Vadhavan, about 120 miles north of Jawaharlal Nehru Port (JNP), under a landlord model with private participation. This deep draught port (20m) is intended to function as a satellite port to JNPT and oﬀer major new container capacity. WHAT’S THE RUSH? Taking into account all the above, it is relevant to ask what is the rush when it comes to bid submission? Surely, it is in everyone’s best interest including JNPT to have adequate time to submit the most robust bids as per best practice? Equally, it is more the exception than the rule nowadays to have a financial bid based solely on royalty per TEU and such a bid basis is questionable when factoring in the actual advantages held in this respect by the existing operators. There appears to be a good case for a rethink on these important fundamentals which if they remain in place appear set to spark significant controversy.

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

JANUARY/FEBRUARY 2022 | 21

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TERMINAL DEVELOPMENT: MELBOURNE

VICT: ANOTHER FIRST VICT Melbourne is implementing a major expansion programme with new ship-to-shore crane specifications consolidating its reputation as an innovator and gamechanger

8 The near 11,000TEU capacity CMA CGM Ural is the largest vessel to call at VICT/Melbourne to-date but now VICT is in expansion mode with accommodating much larger vessels high on the agenda

Victoria International Container Terminals (VICT) is chalking up another first in the port of Melbourne and Australia as a whole. As part of the two-step phase 3 expansion of VICT, the company, a wholly-owned subsidiary of ICTSI, has recently confirmed an order with China-based crane builder ZPMC for two out of three new ship-to-shore (STS) cranes able to serve vessels with a beam of up to 55m (across 22 container rows) and possessing a lifting height of 49m. They will be the first cranes deployed in Australia and Oceania able to serve Ultra Large Container Carriers of up to 18.000TEU. The specification of the cranes reflects the belief that the trend, already underway, of larger and larger vessels being introduced into mainline Australian trades will be maintained. The largest vessel handled at VICT to-date possessed a capacity of nearly 11,000TEU, a significant step up from the largest vessel in Australian trade in 2019, the 7455TEU capacity E.R. Long Beach. In the near term, VICT management foresees the arrival of 14,000 – 15,000TEU vessels with the provision for handling vessels up to 18,000TEU designed to future proof the terminal over the longer term. Vessel access arrangements in Melbourne have been enhanced by work undertaken by the Port of Melbourne Corporation (PoMC) which includes diverse simulation studies that confirm the ability of 14,000 – 15,000TEU vessels to manoeuvre through the challenging Port Phillip Heads. PoMC has stated publicly that due to limited growth in vessel operational draughts – actual and foreseen - it does not need to undertake major deepening or dredging activities but instead is focused on improvements by way of instruments such as: higher precision navigation and berthing aids (GPS systems and laser guided berthing) as well as the introduction of more powerful and manoeuvrable tugs etc., activities which also require other port companies ‘to get onboard.’ Just recently PoMC has approved trials for vessels up to 350m LOA, current limitations are 347mLOA. MAJOR CAPACITY BOOST The two new STS cranes installed under the first part of the expansion phase and one to follow in the second part will

operate in conjunction with the five existing units along an extended quay line. PoMC has announced that it will remove a knuckle and extend VICT’s existing 660.58 quay by 71m to give a 731.58m (768.98m including mooring dolphins) continuous quay, enabling the simultaneous berthing of 350m and 367m long vessels. This development, combined with an upgrade of landside operating arrangements, will ultimately see full utilisation of the near 50 per cent of VICT’s existing terminal footprint that is undeveloped. In keeping with its fully automated status – the original ‘first’ achieved by VICT in Melbourne and Australia – six new Automated Container Carriers (ACC) have recently been delivered and six Automated Stacking Cranes (ASC) are scheduled for delivery from Kalmar. They will work alongside the 11 ACC and 20 ASC existing units that comprise the backbone of yard handling operations.

‘‘

VICT: Australia’s biggest STS cranes on the way

VICT’s automated operations are powered by the Kalmar One Automation System – a complete end-to-end system that combines Kalmar automated equipment and a preintegrated and tested software solution. The system includes the recently upgraded Navis N4 Terminal Operating System and the Kalmar Automated Truck Handling System in addition to the ACC and ASC units. The effectiveness of the automated system overall has been proven with box exchanges as large as 12,700TEU in a single call. Part 1 of the Phase 3 expansion will realise a 25 per cent increase in terminal capacity, up to a level of 1.25mTEU/ yr entailing a total investment of A$150m. The Part 2 expansion will increase capacity to 1.5mTEU/yr and entail a further investment of A$85 million totalling A$235m overall. The overall development effectively consolidates VICT’s status as the driving force in Melbourne and Australia’s efforts to keep pace with the new requirements of the country’s premier container trades.

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

JANUARY/FEBRUARY 2022 | 23

NORTH AMERICAN CONTAINERPORT OPERATIONS

COVID-19 BOOSTER Boosted by COVID-19, the structure of Asia-North America container trade is changing with increased use of US Gulf and East Coast gateways a fast emerging trend. Andrew Penfold summarises

8 The main arterial trade routes serving North America. Congestion on the West Coast is seeing increased interest in alternate port gateways to access the main US markets

The supply chain disruptions noted since mid-2020 have had far-reaching implications for the Asia to North America container trades. Shipping lines have sought (and found) alternatives to the major West Coast terminals with underlying comparative costs favouring long under-utilised alternatives. Were these trends already underway before Covid and has the pandemic just accelerated latent trends? The dominant China to San Pedro (Los Angeles/Long Beach) route has been the major driver of overall demand since it began to explode in the mid-1990s and double stack intermodalism became the primary feature of the business. However, several trends have been modifying the position since the mid-2010s, these include: 9 Increased competition from Canadian ports with strong intermodal links to the Midwest. Both Vancouver and Prince Rupert have seen volumes increase, with this supported by strong investment in capacity and extended intermodal reach. The shorter ocean hauls from China have also been a major factor here. 9 The development of the Panama Canal was a major catalyst. With much larger units – of up to 15,000TEU – transiting the Canal, the all-water route was already seeing increased demand prior to current congestion problems. The improvement of US East Coast ports has further catalysed these developments. 9 At the macro- level, major importers have sought alternatives to reliance on China. As Chinese production costs have increased there has been a shift to cheaper suppliers in south-east Asia. This trend was already inplace before Covid but is accelerating now for both economic and political reasons. The focus on this region makes the transport costs via Suez competitive on some North American East Coast trades. Looking ahead, what does this mean for port development?

24 | JANUARY/FEBRUARY 2022

WHAT HAS HAPPENED? The congestion in San Pedro has seen very long berthing delays throughout 2021 and this is continuing. With upwards of 100 vessels awaiting handling, this has eﬀectively reduced the supply side of the container shipping equation and seen freight rates climb to unprecedented levels. The genesis of this situation is complex and results from labour diﬃculties, supply chain uncertainties and other short-term disruptions. Although the lines have been delighted by the impact of this on their profits the long-term impact is problematic. For some containerised goods the freight rate is now making economic production in China uncompetitive – this was seen as highly unlikely pre-Covid. More onshoring will be the result but (more importantly) new alternatives are being sought.

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

NORTH AMERICAN CONTAINERPORT OPERATIONS

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Sea-Intelligence data shows that at the global level before the pandemic around two per cent of container capacity was accounted for by port delays – the current position is 11 per cent, with no sign of improvement. In addition to higher freight costs the delivery time for goods has increased dramatically (thus undermining one of the selling points of the San Pedro argument). New data from San Francisco-based forwarder Flexport’s Ocean Timelines Indicator covering export to final delivery indicates average eastbound delivery times have increased from around 50 days pre-pandemic to a high of 110 days in January 2022. These issues are compounding already established trends. Total North American port demand since 2010 is summarised in Figure 1. The overall scale of demand is clear, with preliminary data for 2021 indicating a total of over 68mTEU. This is the result of continuing reliance on manufactured imports and the bounce back in demand from Covid (although the sustainability of this with reduced QE from the Federal Government must be questionable). Total North American CAGR was around 6.2 per cent since 2015 – an acceleration over the longer-term trend. Demand has increased on the West Coast, but this masks some important trends. The market share of each seaboard is summarised in Figure 2. The Pacific Northwest has stagnated in terms of market share, but the poor performance of Seattle/Tacoma obscures the growing importance of the Canadian terminals. More importantly, the market share of Pacific South (San Pedro plus Oakland) has contracted across the period from a peak of over 37 per cent in 2010 to an estimated 33.5 per cent in 2021. REORGANISATION UNDERWAY Transport costs from China to the Midwest (the focus of continental demand) were already swinging in favour of the All-Water option ahead of the pandemic, with East Coast ports recording cheaper built-up transport cost (ocean + port + inland) of around US$350-400 per forty-foot container. The congestion related charges have grown this dramatically and this has been directly reflected in increased deployments via Panama to the East Coast ports. Surging demand at established ports (NY/NJ and Virginia) has been joined by other terminals, such as Savannah. The move by Georgia Ports Authority (GPA) to accelerate capacity additions of around 1.6m TEU per annum at the Garden City Terminal and elsewhere in the port is typical of moves to accommodate increased demand and is representative of developments being noted in other ports. This capacity should be onstream by June – an increase of around 25 per cent in six months. The port has not been immune from congestion, but the speed of response is remarkable and underlines the pace of structural shifts underway. The GPA is also extending its eﬀective reach by adding container yards near major demand locations thus reducing dwell times at the marine terminals.

The speed of reaction at these terminals (together with significantly lower costs) is in sharp contrast to the response of West Coast terminals to market conditions over 2021. East Coast ports have geared up to accept not just new Panamax vessels but also anticipate Megamax vessel calls from Asia on the Singapore trades. As the centre of gravity moves away from China to ASEAN and Indian suppliers the Suez option will become increasingly realistic. This does not mean that San Pedro will see volume declines but, rather, that recent shifts in market share will continue. Given current high stevedoring cost structures and intermodal restrictions from California it is diﬃcult to see what steps can realistically be taken to reverse this trend.

‘‘

New options such as US Gulf/Mississippi terminals oﬀer real potential The level of interest in new developments in the US Gulf, especially the proposed Plaquemines Parish terminal downriver from New Orleans, further confirms the level of pressure to find alternative routes to/from the Midwest. Utilising the Mississippi system will allow a new route of access and, when combined with strong demand from booming Texan markets and the availability of export opportunities (elsewhere scarce), will further revise the structure of the trades. PORT DEVELOPMENT IMPLICATIONS The impact of all of this is complex, but the following seems certain: 9 San Pedro needs to up its game in terms of productivity and intermodal capacity. The drift away from China will accelerate pressures as alternative routes come into play. Other options are eating away at market share. 9 The Pacific Northwest has been successful, but this has been entirely focused on Vancouver and Prince Rupert. Capacity is under strain here and some acceleration of capacity is required if hard-fought gains are to be maximised. 9 The East Coast has the opportunity to further build on current gains, with hitherto secondary ports set to further capitalise on lower costs and strong inland links. It is anticipated that strong and sustained investment will be required. 9 New options such as US Gulf/Mississippi terminals oﬀer real potential and there is scope to significantly revise trades from Asia via Panama onto this route. These trends were well underway in the period following the Panama Canal expansion. Covid has underlined the need for new options and the result will be some fundamental restructuring of the Asia-North American trades in the next few years.

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

JANUARY/FEBRUARY 2022 | 25

VEHICLE BOOKING SYSTEM OPERATION

VBS TAKES THE FAST LANE Vehicle Booking Systems (VBS) deployment, bolstered by meeting the challenges of the pandemic, is growing fast. Mike Mundy charts the rise of VBS based on a PS sector survey The pandemic has proved a catalyst to the take-up of Vehicle Booking Systems (VBS) according to a recent survey undertaken by Port Strategy. The bandwagon of utilisation of digitised truck appointment systems for container drop off/pick up at container and other marine terminals had already been gaining significant momentum in recent years but the Pandemic has applied added velocity to this. In diverse locations around the globe, the pandemic has effectively increased the scope for the adverse conditions that VBS are, at heart, configured to ameliorate – truck congestion at the terminal gate and on the approach roads to terminals, the negative impact of peaks in volumes on terminal operations overall and the uncoordinated and thus inefficient interaction between terminals’ container hauliers and their respective clients. VBS, operating as an integral component of a terminal’s IT architecture, have proven to be highly influential in scaling down what would otherwise have been labelled ‘chaotic operations.’ Above all others, the one thing that VBS offers is ‘regulation of traffic flow’ – which, experience records, delivers real benefits in terms of the ‘micro’ situation around a terminal and in a macro context all along the supply chain. UNCTAD in its recent report COVID-19 and Maritime Transport: Impact and Responses, commenting on experience in the pandemic confirms the benefits of the enhanced attention paid to truck and rail car access by terminal operators: “Of note,” says the report, “is the improved programming by port operators of the loading and unloading operations involving trucks and rail cars…” BAROMETERS OF INFLUENCE A measure of the increasing value of VBS, is the adoption of the system geographically. Notable in this respect is the recent announcement by South Africa’s Transnet Port Terminals (TPT) of the introduction of a mandatory truck booking system at its Cape Town Container Terminal and Cape Town Multipurpose terminal. The digitalised system enables transporters to book delivery slots 48 hours in advance or cancel a booking within two hours prior to the time slot. VBS systems, now in operation for over two decades, have progressively been taken up around the world. The latest Transnet deployment sees the system build its influence in Africa. Prior to this there has been progressive take-up in Australasia, Asia, the Americas and Europe. It is true to say, the PS survey concludes, that today VBS is a ‘go to’ or ‘must have’ system in the context of modern container terminal operations. Demand generates supplier response, and the PS survey notes that more system suppliers crowding into the marketplace further underpins the market belief in the merit of VBS. A recognised pioneer in the field, is 1-Stop VBS, active for around two decades, but today it faces competition from companies such as: Camco Technologies; DSP, Navis, Visy Oy and diverse others. Their entrance into the sector, PS suggests, will drive system innovation and further accelerate system take-up on a basis comparable to the adoption of Terminal Operating Systems (TOS) or Port Community Systems (PCS), with which VBS is designed to interact.

26 | JANUARY/FEBRUARY 2022

TODAY’S REALITIES There is always resistance to change with the introduction of digitalised systems versus a previous manual system or no system at all. Today’s realities are, concludes PS, that with VBS this simply represents ‘standing in the way of progress.’ The primary operational benefits of VBS are highlighted above – they clearly outmatch any manual system but there are also wider benefits. One is security, the move to a digitalised system is inherently more secure. Also positive is the added dimension VBS gives to capacity management – macro and micro. Another big plus is sustainability and the experience of Antwerp Gateway Terminal (AGT), a DP World facility, in this respect is instructive. With the deployment of the terminal’s QLess VBS, AGT was able to report the elimination of 730,000 kilograms of CO2 annually. AGT was the first terminal in DP World’s portfolio to operate automated stacking cranes. More than 65 per cent of all containers loaded or discharged from deep sea vessels typically arrive or leave by truck. In conclusion, the PS survey emphasises the wider benefits available from VBS – along the supply chain. The key trucker sector oﬀers a prime example, including: greater certainty of container pick-up and drop-oﬀ times; reduced truck cycle times, the ability to increase the number of truck cycles and as result to achieve better fleet management and overall return on investment. Like any new generation system VBS has its growing pains, but experience to-date confirms the system’s broad-based benefits and status of being an essential component of a state-of-the-art marine terminal operating in a modern supply chain, PS underlines.

8 APM Terminals, Pier 400 facility, the largest container terminal in North America, has deployed a state-of-the-art VBS

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

VEHICLE BOOKING SYSTEM OPERATION

DISCIPLINE IS ESSENTIAL Complaints are heard about the penalty regimes that are integral to Vehicle Booking System operation but global experience shows the pluses outweigh the minuses. Mike Mundy reports The old maxim “you can’t please everyone” is one that applies to Vehicle Booking Systems (VBS) but experience overall confirms they are integral to maximising both container terminal efficiency and having a positive impact on supply chain performance overall. It is true to say that under pandemic conditions there has been an escalation of complaints and grumbles about VBS but, as is manifestly visible around the world, supply chains generally are under great stress and as such it is hardly surprising that VBS and diverse other aspects of supply chain activity have come in for criticism. VBS is a front-line activity and directly in the firing line of truckers delivering and picking up containers. Truckers, collectively and individually, are well known to be vocal when they confront problems, so it is hardly surprising that there is more ‘noise,’ but is it justified? The short answer is no and global experience confirms this. PERFORMANCE AND PENALTIES Matt Ball, General Manager Communications, Ports of Auckland, voices the opinions of many systems users contacted by PS when he says: “We do not believe that we could effectively operate without having a VBS. We need to align our terminal capacity with demand to avoid congestion and having a VBS greatly assists us with that. This is particularly relevant in the current operating environment with global disruption in the supply chain and the lumpiness of volume flow that COVID has caused. We can adjust our VBS slots according to our resourcing and we are also just about to adjust pricing to encourage more off-peak volumes across a 24/7 period.”

‘‘

Prior to implementing the No Show fee over 15 per cent of bookings made were no shows Ball also amplifies the views of the majority of respondents to a PS survey on VBS when discussing the often-thorny subject of fees and penalties: “Standard fees are charged,” he explains, “to cover the cost of having the VBS system whereas penalties or diﬀerentiated pricing is there to change behaviours. Prior to implementing the No Show fee over 15 per cent of bookings made were no shows. This,” Ball underlines, “is lost capacity and a huge waste, especially in the current operating environment. When we implemented the No Show fee we reduced No Shows to below five per cent. This reduction in wastage benefits the entire supply chain.” He elaborates: “VBS booking fees and penalties do provide benefit for the supply chain. VBS enables capacity to be matched to demand, gives more certainty to timing and the wider supply chain because distribution centres’ warehouses can plan their own labour and operations based on known/confirmed booking slots, and, as noted earlier, they reduce waste.”

With penalties diverse terminals in Europe, the USA and Asia make the point that they are a fundamentally essential ingredient to facilitate proper system use, especially under COVID conditions. As DP World London Gateway notes in its mid-2021 Annual adjustment of VBS service charges: “It is essential that we make best use of resources across the supply chain and it has unfortunately become necessary to revise the ‘Expiry – no show’ charge. Bookings made where no vehicle arrives at the terminal waste time and resources in operational preparation and eﬀectively block capacity for other VBS users.” With this in mind DP World London Gateway raised its Expiry Charge (for a booking made for which no vehicle arrives at the terminal) to GBP50.00 (US$69.00) for 2021/22 from GBP32,79 (US$45.00) in 2020/21.

8 VBS has played a prominent role in maintaining positive traﬃc flow along the supply chain in the Philippines including coordinating with the Metro Manila Development Authority

EVOLUTION The base message is that to get the best out of VBS there needs to be discipline – comprising rules, regulations, fees and penalties – underpinning the technical excellence of such systems. VBS has been around for well over a decade and system usage has spread around the world. It is recognised as the ‘go to’ system to impose order on traffic flow to the benefit of efficient and environmentally-friendly operations in conjunction with terminal working and the supply chain overall. VBS, however, is not impervious to system mis-use or abuse – for instance the booking of numerous slots on a speculative basis when not required to link them to a specific container drop-off or pick-up. Procedural discipline is widely recognised as fundamental to optimising system usage and maximising benefits. Further, while VBS system specification is inherently bespoke to a given set of operating circumstances, standardisation of system usage and procedures offers the potential of extending system benefits. Ports of Auckland notes, for example, that its Container Chain VBS, “was chosen as it is also used across multiple sites in the Upper North Island and our transport customers were seeking as much consistency in business rules and system usage to help manage their fleets and movement of containers.”

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

JANUARY/FEBRUARY 2022 | 27

CHINA: CONTAINERPORT ANALYSIS

CHINA: CORROSION COMING? A stop-start port industry and potentially faltering economy are raising questions about China’s reliability as the world’s leading trading partner, as AJ Keyes discovers

8 Ships are skipping Ningbo-Zhoushan for Shanghai due to COVID-19 outbreaks

Is China still the unstoppable economic force and manufacturing engine room for the world? Well, it is becoming apparent that a combination of economic challenges and Beijing’s hard-line COVID-19 approach to completely shut-down port cities are raising questions about the country’s future trading position. At the start of January 2022, the World Bank issued an economic prospects report that stated how a severe and prolonged downturn in the real estate sector in China would cause a significant economy-wide negative impact in the country due to the combined onshore and offshore liabilities of property developers, amounting to almost 30 per cent of total country GDP. The report concluds that years of regulatory curbs on borrowing is leading to a string of offshore debt defaults, credit-rating downgrades and sell-offs in developers’ shares and bonds. In short, Chinese developers are facing an unprecedented liquidity squeeze, as highlighted by China Evergrande Group’s main unit Hengda Real Estate Group seeking a six-month delay for redemption and coupon payments with its bondholders. STOP-START PORTS AND ZERO TOLERANCE Coupled with this increasingly uncertain economic backdrop is the ongoing, stop-start nature of port activities and manufacturing due to COVID-19 outbreaks, with central Government maintaining its strict zero tolerance approach. This is causing a negative impact on the supply-chain for goods out of China, with shipping lines, beneficial cargo owners and ports receiving the Chinese export loads being negatively impacted. At the same time, uncertainty in the construction sector and domestic economic growth are playing havoc with bulk imports. The recurring emergence of COVID-19 strains continued

28 | JANUARY/FEBRUARY 2022

throughout 2021, culminating in a particularly difficult end to the year. In December 2021 over 300,000 people tested for coronavirus in a district in the port city of Ningbo following an outbreak of the illness, while the district of Zhenhai had a twoweek lockdown after five people tested positive for COVID-19, marking the third lockdown in less than six months in Ningbo. This trend has continued into 2022. In early January there was a breakout of the Omicron strain of COVID-19 in the port city of Tianjin, resulting in a partial lockdown, with mass testing of the 14 million inhabitants. While the port remained operational, there have been negative knock-on effects across the supply chain. For example, vehicle manufacturers, Toyota and Volkswagen, have suspended production at Tianjin factories and at port terminals the pick-up of import containers has been suspended, gate hours reduced and a restriction put in place on truck deliveries. The issue is spreading further afield, with other Chinese port cities including Dalian and Shanghai reporting positive COVID-19 cases and mass testing taking place in Shenzhen, after a “cluster” of cases was detected. Local reports in China indicate that Ningbo-Zhoushan, China’s second busiest container port is still open for business, but the efforts to contain the spread of COVID-19 is slowing trucking logistics activities. Likewise, road transport in Jinhua Yongkang, dubbed a “medium-high” risk area of Beilun and the area outside Zhejiang province, where Ningbo is located, was suspended at the time of writing (mid-January 2022) CARGO MOVEMENT BRAKE Global liner operator, Maersk Line, provided a synopsis of the challenges in Ningbo in its customer briefing on January 11, 2022: “Unfortunately, 2022,” Maersk says, “has not started off as we had hoped. The pandemic is still going strong and

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

CHINA: CONTAINERPORT ANALYSIS

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8 Table 1: Container Volumes for China’s Top 12 Ports, January-November 2021, by Million TEU

unfortunately, we are seeing new outbreaks impacting our ability to move your cargo. General sickness remains high as key ports in key regions are seeing new COVID-19 peaks. In China, the city of Beilun is also experiencing a COVID-19 outbreak….trucking services in Jinhua Yongkang, the midhigh-risk area of Beilun and the area outside the Zhejiang province are suspended under the strict regulation by the epidemic prevention policy.” As a result, ships are already diverting away from Ningbo, with nearby Shanghai the preferred option. Yet this causes delays to liner schedules, by “about a week,” according to local forwarders. “The danger is that delays at China’s ports will cause further backlogs in North American and North European ports and without noticeable, quick, improvements, ships may even begin to omit Chinese ports,” suggests Dean Davison, Technical Director Maritime Advisory, WSP. Beijing’s strict zero-COVID-19 policy helps to curb local outbreaks with mass testing, snap lockdowns, vigilant surveillance and extensive quarantines. Yet the country still struggles to deal with the recurring eﬀects of the pandemic, with local outbreaks continuing to flare up with increasingly short intermissions. Short-term, shippers and logistics partners are struggling to get cargo on vessels before the Chinese New Year (CNY) holidays that run from January 31 through to February 15, 2022. After CNY, ongoing issues in China will further damage the supply chain and make the option of shipping from other South East Asian economies appealing. So, how is the continued disruption impacting China’s port industry? Well, for the most part the ports are seeing positive results, albeit that available data released by the Ministry of Transport is only available for January to end of November 2021. Overall, container ports in China handled a total of 259.7 million TEU for this period, reflecting a year-on-year increase of 7.2 per cent over the comparable 11 months of 2020. The largest volume 12 ports are identified in Table 1, again from Ministry of Transport data. The Port of Shanghai remains the top-performing port in China, handling 38.99 million TEU during the assessment period, reflecting an increase of 8.7 per cent compared to the first 11 months of 2020. Other notable increases, and volumes handled, were recorded at Shenzhen (23.79 million TEU, an increase of 10.7 per cent) and Qingdao (19.87 million TEU) a 10.3 per cent uplift.

Collectively these 12 ports handled over 144.9 million TEU during the first 11 months of 2021, reflecting an increase of 4.5 per cent over the January to November period of 2020. However, this position is certainly being skewed by the continued decline at Dalian. Container activity was down by a notable 34 per cent during the assessment period. For 2020 the port saw a bigger drop of 41.7 per cent to finish 2020 at 5.11 million TEU – down on the 8.81 million TEU handled in 2019. Localised reports indicate that a combination of weakening GDP, a drop in reefer shipments and traffic shifting to nearby Yingkou were all factors in 2020. Yet the trend has clearly continued into 2021. Dalian port is located in the North East of the country, along with Tianjin and Qingdao – both faster-growing facilities and it can be assumed that container traffic routing is preferred for these ports, as per the trend over the past few years. The total picture underlines the world’s continuing dependence on Chinese manufacturing but reduced reliability and major difficulties at the macro- level are seeing large foreign importers increasingly looking for alternatives.

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The danger is that delays at China’s ports will cause further backlogs REDUCED PROSPECTS? Container port growth in China was largely positive for 2021, but the continued return of COVID-19 cases, Beijing’s insistence of a zero-tolerance policy and rumblings of an economic crisis starting, leave China in a potentially perilous position for 2022. The resurgence of COVID-19, the latest data released suggests, can be seen to be gathering momentum, so it cannot yet be gauged just what the full impact will be. However, with a negative impact on the freight logistics network anticipated through Q1 2022, at least, shippers and their transport partners may be prompted to consider sourcing more goods from other South East Asian locations instead. The bubble has not yet burst for China, but the country’s dreams of remaining as the manufacturing engine to the world may slowly be beginning to slowly to fade.

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

JANUARY/FEBRUARY 2022 | 29

18 OCT 20 2022

Zeebrugge

CALL FOR PAPERS OUT NOW! Submit your abstract for the world’s leading conference on balancing environmental challenges with economic demand.

Congress topics: • Fuel and energy provision for shipping • Fuel and energy for port operations (including hydrogen LYFW [MRH JEVQW ERH IPIGXVMǰ GEXMSR SJ TSVX ZILMGPIW • Sustainable Partnerships – Ports working together to meet sustainable targets • Ports and IT and AI - port process improvement and how digitalisation can be used for further improvement • Port:City:Logistics Chain collaboration – how port and city can work together to move cargo in a sustainable way • Monitoring of physical, chemical, and biological components whilst controlling their impacts Cruise topics: • How to get ready for regulatory changes including Fit for 55 and EU Taxonomy • Sustainable cruise projects in aid of being carbon neutral by 2050 • Environmental Cruise Ships – including hydrogen fuelled ships • Legislation and cooperation in the cruise industry

Abstracts should be no more than 250 words and should be sent, with a biography of the speaker, headshot photo and logo, to congress@greenport.com. The deadline to submit your paper will be 14 February 2022. visit: greenport.com/congress contact: +44 1329 825335 or email: congress@greenport.com Media Partners:

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GREENPORT INSIGHT FOR PORT EXECUTIVES

INTERMODAL OPERATIONS

MIDDLE CORRIDOR MOVES The Trans-Caspian International Transport Route (TITR), the so-called Middle Corridor, has big plans for ramping up intermodal traﬃc. Oleksandr Gavrylyuk reports In the final days of 2021, Baku, Aktau and Turkmenbashi, the respective key Caspian ports of Azerbaijan, Kazakhstan and Turkmenistan, announced the integration of their individual information systems into a single PCS (port community system) platform. Taking into account the geographical location of Baku in the South Caucasus and both Aktau and Turkmenbashi in Central Asia, the action of the three ports represents more than just a desire to connect the Caspian Sea’s western and eastern shores. It is seen as a starting point for a wider network. “In addition to the Central Asian countries, we are planning to integrate our information systems with those of European ports,” explains Khudayar Hasanli, Head of Strategic Planning and Development Division, Port of Baku, confirming the wider ambitions. Also of note, earlier in December last year, the OPEC Fund for International Development approved a US$45 million loan to Turkmenistan for the further development of its merchant fleet. The project will see construction of three new ships, including a trans-Caspian rail ferry, a bulker and a passenger vessel. This will reportedly help improve the utilisation of the Turkmenbashi seaport, which is part of the Transport Corridor Europe-Caucasus-Asia (TRACECA). TRACECA was initiated by the three South Caucasian (Georgia, Armenia and Azerbaijan) and five Central Asian (Kazakhstan, Turkmenistan, Uzbekistan, Tajikistan and Kyrgyzstan) nations in 1993. It aims to develop freight flows from Europe across the Black Sea, the Caucasus and the Caspian Sea to Central Asia. The concept enjoys technical assistance from the EU and is reflected in recent initiatives. The Ukraine, Moldova, Romania, Bulgaria and Turkey have also joined the project.. In 2014, key transport agencies of Kazakhstan, Azerbaijan and Georgia set up a consortium to develop the intermodal carriage of goods under the so-called Middle Corridor or Trans-Caspian International Transport Route (TITR). Under the project, East-West traﬃc originally went through a number of loading and unloading operations, changing ferries, railcars and bulkers before being finally delivered from Georgia’s Black Sea harbours of Poti and Batumi to European destinations. The situation changed dramatically in October 2017 with the launch of the Baku-Tbilisi-Kars (BTK) rail line. Linked with Turkey’s Trans-Anatolian Railway, BTK has significantly simplified the delivery scheme, reduced its cost and expanded volume. CHINA CATALYST The rapid progression of China’s export ambitions and deployment of its Belt and Road infrastructure in the same period contributed much to the development and extension of TITR to the Far East and even Southeast Asia. A number of block trains were run on a test basis to connect Chinese cities with Asia Minor and Europe via the Middle Corridor and proved able to cover the distance within just 12 days. China Railway Express, a transcontinental service started in 2019, helped double the annual volume of containers railed via TITR in just a year, from 15,000TEU in 2018 to 30,000TEU in 2019.

While the global pandemic crisis of 2020 reduced by a quarter the cargo volume moving via TRACECA, the Middle Corridor saw the launch of new block trains. Effectively, the suspended operations of some of its key Pacific harbours forced Beijing to pay increasing attention to overland routes. The major challenges of the post-pandemic year 2021, such as the Suez Canal accident and soaring prices for transocean container shipping, have only served to enhance the Chinese interest in TITR. As per the data revealed by ADY Container, the Azerbaijan Railways’ subsidiary involved in the TITR project, during the first ten months of 2021, rail container traffic along the route rose by 13 per cent year-on-year to 66,878TEU. As Beijing is set to deepen its involvement in the Middle Corridor, Kazakhstan and Azerbaijan seem to be the main beneficiaries of the process. Accordingly, the two countries have been heavily investing in the development of relevant infrastructure. On 10 December 2021, Aktau welcomed the one-millionth transit container running through Kazakhstan. Brought by a train from the city of Xian in Central China, it was subsequently shipped onboard a feeder ship to Baku and then railed to the Turkish Mediterranean port of Mersin. Meanwhile, Azerbaijan has constructed a new international seaport at Alat, some 60km south of Baku, featuring the ferry terminal linking it with Turkmenistan (since 2014) and Aktau (since 2017). With the projected construction of new container handling and logistic facilities, Alat is expected to add a free trade zone. Additionally, should Azerbaijan gain access to its Nakhichevan exclave, via a narrow strip of Armenian territory (the so-called Zangezur corridor), it would be able to rail cargoes to Turkey. This would automatically raise its competitiveness as a transit nation, underlines Baku-based analyst Khazar Akhundov. Furthermore, informed sources suggest Azerbaijan could be in position to expand its transit traffic by up to 40 per cent over the near term if it manages to cooperate with its partners in setting up a single managing company coordinating their efforts in conjunction with international transport projects.

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

8 The Trans-Caspian International Transport Route starts from Southeast Asia and China, runs through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia and on to European countries

JANUARY/FEBRUARY 2022 | 31

HYDROGEN OPPORTUNITIES

HYDROGEN: CHICKEN AND EGG? Hydrogen for core maritime and wider business functions presents ports with opportunities but there is risk. Felicity Landon reviews sector initiatives

8 Hydrogen hub plans are springing up around the world – Australia, Denmark, Estonia, The Netherlands, UK, USA…the list goes on

When shipowners invested in mega ships, the ports serving them had no alternative but to invest in the mega cranes required to handle them. If shipowners plump for hydrogen as their future fuel, they will expect ports to be able to provide the bunkering. But with uncertainty about exactly what choices the maritime sector will make in the drive for decarbonisation, is this something of a chicken and egg situation? Numerous studies and projects are out there, discussing how and where hydrogen could be required and provided. This is not just a case of sizing up. Hydrogen can be ‘breathtakingly diﬃcult to store in large quantities’, notes one expert. It could be stored onshore under pressure and suitable in this form for domestic (or short distance) shipping. However, the challenges are far greater for international shipping. Large amounts of fuel would be required and if it is not to reduce the ship’s cargo capacity, it would need to be stored onboard in a smaller volume, i.e. as liquid, close to zero, over long distances. Quite apart from the safety issues (real or perceived) of landside storage, what would be the implications of a huge container ship, carrying many thousands of tonnes of hydrogen, coming alongside, especially in ports located in big cities? All of this might seem to imply that hydrogen is still something of the ‘future’. However, the Antwerp-based maritime and logistics group Compagnie Maritime Belge (CMB) has been pushing ahead with innovations around hydrogen as a fuel, some of which were showcased during COP 26, at Maritime UK’s International Maritime Hub. CMB acquired the UK-based Windcat Workboats in 2020 and is preparing to launch the Hydrocat, the world’s first hydrogen-powered crew transfer vessel, serving the oﬀshore wind sector. Last year, it launched a hydrogen refuelling station, a dual-fuel truck, a dual-fuel excavator and Asia’s first

32 | JANUARY/FEBRUARY 2022

hydrogen ferry (the HydroBingo). It has also set up JPN H2HYDRO, a joint venture with Tsuneishi (with which it developed the HydroBingo) and created partnerships to produce hydrogen on a large scale in Japan. This year will see the launch of the Hydrotug – the world’s first hydrogen-powered tug, it will operate in the Port of Antwerp. Alexander Saverys, CEO, CMB, points out that in the shipping industry, late followers have usually outperformed early pioneers. “We do, however, believe that this time it can be diﬀerent. The sheer magnitude of the challenge ahead will necessitate quick and agile action. Having gone through the development phase of our technology in the past six years, we are ready to scale up and bring our solutions to the market today, whereas some of our competitors are still stuck in feasibility analyses and prototyping.” INVESTMENT BUT UNCERTAINTIES In Estonia, the Port of Tallinn has set out its proposals to build a 25,000m3 hydrogen storage facility at Paldiski South Harbour, for the import and export of hydrogen in the Baltic Sea region. The idea is that the area is suitable for developing oﬀshore wind farms and these could provide the electricity to produce green hydrogen, to fuel ships. As well as building the storage, the port would install the required infrastructure for handling exports and imports of hydrogen, possibly through the Muuga cargo port. Raimo Pirksaar, the port’s chief specialist of energy management, says: “Hydrogen is not a new thing but it is very new in the field of transport and production. On a large-scale, it means a lot of investment has to be done – and yet there is no market right now.” The situation was similar with LNG, he points out: “We all learned the hard way that it doesn’t always work out, so everyone is very cautious about new fuels.”

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

HYDROGEN OPPORTUNITIES

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The sheer magnitude of the challenge ahead will necessitate quick and agile action The Port of Tallinn would at least have a ‘starter’ market, as the port’s subsidiaries include a ferry service and ice breaker. “So we are shipowners as well,” says Pirksaar. The Port of Tallinn Group generates 97,426 tonnes of GHG emissions a year and the main emitter is ships visiting the harbour, at 53 per cent, says Hele-Mai Metsal, Head of the Port of Tallinn’s development department. “We are the first company in Estonia to have a hydrogen strategy, which we launched in 2021,” she says. “Hydrogen will help the Port of Tallinn to create new value chains and economic opportunities – and in doing so, reach carbon neutrality. This is a very risky business – there is no market yet, no production yet, but there is a very ambitious goal to have climate neutral operations. In order to be a first mover, you have to take a risk – and you need support for that.” The port is seeking co-funding for its proposals, based on its hydrogen strategy being beneficial to the whole country. Potential use cases for hydrogen produced include not only transport and export, but also industry, energy storage, filling stations for road vehicles, and heating for buildings, says Pirksaar. Another challenge is providing onshore power for as many as four cruise ships at a time in the old city harbour, where there is little room and land is expensive. One solution could be doing away with onshore power supply for ships and providing power from a barge – at first electricity from hydrogen, and then perhaps hydrogen. These are all ideas, he emphasises, but time is running short – with the danger that new vessels will be ordered with new fuels, while ports don’t have suitable bunkering. “All the sectors must move in parallel, otherwise they can’t support each other.” CHALLENGES AND RISK Tallinn sees itself as ideal for a hydrogen hub in an east-west ‘green fuel’ shipping corridor through the Baltic Sea. “Ships using hydrogen have to bunker more often and you have to be sure that on a route there are suﬃcient places to bunker,” says Metsal. In all of this, Pirksaar and Metsal do not gloss over the challenges. “The big one is legislation and regulation and the need for an overall risk assessment. Another issue is communication, to the authorities and to the public.” Having petrol stations in a city centre is considered normal, even though there could be an explosion, she points out. “The NIMBY syndrome needs to be addressed quickly. With LNG it took five years – but now we don’t have that time.” What’s clear is that subsidies will be needed to lower the capex cost. “We can’t do that with our own finances. Hydrogen is expensive and is not as good an energy carrier as electricity itself. The technology is new. It is much more expensive compared to fossil fuels. These things are all risks.” Ultimately, if production and consumption levels rise, then prices will decrease, Pirksaar points out. “But if you want subsidies, you have to be a first mover.” Tallinn is in discussion with ports including Rotterdam, Amsterdam and Hamburg, which have the same strategy to become a node, says Metsal. Meanwhile it is partnering with Tallinn Technical University on the development of an autonomous harbour/service boat to run on either hydrogen or electricity, and it is applying for

co-funding for its overall hydrogen plans. “Within the next year, we have to make decisions.” Other notable projects in progress include: 8 Freeport East – UK, partnering Plans have been drawn up for a Green Hydrogen Hub as part of the UK’s Freeport East development. The hub would pull in energy generated by oﬀshore wind as well as the present and planned new nuclear power stations at Sizewell on the Suﬀolk coast. Freeport East is partnering with Ryse-Hydrogen and EDF to find ways of powering port equipment at Felixstowe and Harwich with the green hydrogen supply, and then to use hydrogen across port freight operations including road, rail and vessel movements. It is suggested that at its peak by 2030, 1GW of hydrogen could be produced, which would achieve 20 per cent of the UK government’s total target.

8 Thyssenkrupp Uhde Chlorine Engineers signed, in early January, a plant supply contract with Shell for the large-scale project ‘Hydrogen Holland I’ in the Port of Rotterdam, The Netherlands

8 Rotterdam: international approach The Port of Rotterdam recently issued a document looking at the importance of hydrogen in the port of the future. It is expected that from 2050 there will be 20 million tonnes of hydrogen produced in and transported via the port to northwest Europe, says Edwin van Espen, International Port Development Manager, Port of Rotterdam. The use of hydrogen is expected to grow rapidly in the 2030s and 40s and it will become more and more commercially attractive, he says. “Several countries are taking steps to realise its long-term market potential. Development of import and export flows may already be a game-changer in this decade.” However, a lot of research and pilot projects still have to be executed, involving private companies, public organisations and knowledge institutes, before hydrogen is a mature business, says Espen. “By using an international approach, it will be possible to share knowledge and experience which will speed up the necessary developments.” 8 Orkney – pioneering approach Orkney has been a leader in deploying hydrogen technology. In the ‘Surf N Turf’ project, an electrolyser on Kirkwall Pier converts hydrogen produced from wind/tide back into electricity, to provide shore power to internal ferries while they are berthed overnight. In the Big Hit project, hydrogen produced on the outer islands is brought to Kirkwall Harbour to supply a hydrogen vehicle refuelling station.

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

JANUARY/FEBRUARY 2022 | 33

ENERGY MANAGEMENT

ENERGY CHOICES, HOW TO PLAN Gridmaster, a consortium of energy interests, is developing a multi-layered model to assist diverse port of Rotterdam businesses make complex energy investment decisions

8 A model developed for diverse businesses in the port of Rotterdam, Europe’s biggest port, represents a pioneering approach to making the best energy investment decisions

As ports and industries strive towards decarbonisation, a dramatic transition in energy demand and supply is ahead of us. That much we know. But what shape will the new world take? Who will use what type of energy (and how much) and how will it be provided? How can we plan if we don’t know? The ‘many worlds’ interpretation of quantum physics suggests that there may be multiple copies of us all living in multiple worlds. Determining and planning for the future power demands and associated infrastructure requirements in Rotterdam, amounts to almost the same thing! There are more than 40 industrial sites/users across the port area, all of which will have increased or diﬀerent needs for electricity, hydrogen, methane, natural gas, and so on, in the coming years. Making investment decisions can be just as challenging for them as for the energy infrastructure providers, due to the uncertainties about, for example, market and grid capacity developments. All of these uncertainties are being taken on by Gridmaster, a consortium set up in 2020 which spans the entire spectrum of the Dutch energy infrastructure market. Its target – to develop a unique tool to support tough decisions on futureproof investments in energy infrastructure. Siemens Nederland is a member of the consortium, *Jeroen de Bruin, Siemens Nederland N.V., has authored this article on behalf of the Gridmaster consortium. Siemens Nederland is a member of the consortium, alongside TenneT (the operator of the Dutch national electricity grid), energy infrastructure company Gasunie, grid operator Stedin, Province of South Holland, the Port of Rotterdam Authority, Municipality of Rotterdam, Smartport, TU Delft, Quintel Intelligence and TNO.

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alongside TenneT (the operator of the Dutch national electricity grid), energy infrastructure company Gasunie, grid operator Stedin, the Port of Rotterdam Authority and others. MULTI-LAYERED MODEL In essence, a multi-layered simulation model of the energy system of the Port of Rotterdam is being developed, through which numerous possible future scenarios can be tested and analysed. The work, based on extensive research, data collection and consultation, is being project managed by Siemens on behalf of the consortium. “The basic concept of Gridmaster is a tool that helps the grid operators in the Port of Rotterdam to make investment decisions that are more robust, in what is an uncertain future,” says Jan van Dinther, Energy Transition Developer for Siemens. He compares the model to a ‘multi-layered digital twin’, in which the base layer represents all the assets in the port – industrial sites, wind farms, solar parks, etc. – and considers how they are operated, how they exchange diﬀerent forms of energy, etc. Subsequent layers represent the electricity market, the methane, hydrogen and electricity grids, how assets are operated in the port and how these assets are connected to the energy infrastructure. “We plot the operation of all the assets, given the energy prices, and then we can calculate the power flows in the diﬀerent grids and determine where capacity bottlenecks in energy infrastructure will occur. We are working with a rich set of building blocks; modelling these building blocks is a technical process but also a social process of bringing people together and defining strategy.” Alan Croes, responsible for System Outlook within Energy

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ENERGY MANAGEMENT System Planning at TenneT, says: “I use the parallel of building a new type of car. The intention is to drive somewhere to the future, which is a tight spot, but in the project we are still building the engine, putting the wheels together, designing the navigation system – diﬀerent things have to come together to make it work. We have already shown that this ‘car’ is able to drive. The idea with Gridmaster is – are we able to drive it in the right direction, to do the right things?” Industry is facing strategic uncertainty when it comes to investments and future power, he says: “It is not like a straightforward development plan. An industry site has to choose whether to stay, stop, go to hydrogen or use electricity. All those choices have huge impacts. Seeing these discussions with industry, we can’t expect them to make the final decisions because the technology is still in development.” So instead of coming up with one story line or two, Gridmaster is considering all the possibilities. “What kind of grid would we need? We are taking all stakeholders into account – asking them, what do you think, what are your uncertainties? This adds up to thousands of possibilities. The engine of Gridmaster will make sense out of all that and present it in such a way that we are able to choose our investment path.” There will be preliminary results from the Gridmaster project by early 2022, demonstrating the modules created and how they work together for a real-life showcase. But the work is far from ‘over’. Croes points out that when you consider energy systems, the level of uncertainty, stakeholders’ plans, current and future infrastructure, etc., the complexity is huge. “I haven’t heard of anything similar being done and that makes it very interesting – the electricity and gas sector working together and trying to create one model to support the whole decision-making process.” INDUSTRY INTERACTION Jan van Dinther (who was recently named Young Port Talent of the Year in Rotterdam) explains some of the work involved to date. “We have had sessions with industry, gathering their strategies. We gathered information from research done in the port, for example, how fast will hydrogen grow, or

electrification; we build up a scenario for each site, making it very broad-ranging. We work with a broad spectrum, not with scenarios that are single lines or endpoints. This is what we call the scenario space. “We are building,” he continues, “a digital representation of what is happening in the port and what kind of energy flows through it. We have over 40 different sites and each of these has different assets – for example, boilers that provide heat in a process, an electricity need, potential hydrogen need. Every site has its own assets. Based on the trends in the scenario space, these assets are transformed – for example, from electric boiler to hydrogen-powered boiler. What is important about this vision, is that it’s really a bottom-up way of analysing, considering the relation of the asset with other assets on the site and in the broader context of the industrial cluster.” Alan Croes says this is the biggest pilot project on decision support that he has ever been involved in. “The reason to make it big is if you don’t do it properly, you will never know whether it works. You need to grasp the complexity. “In principle, what will be delivered initially is a view of what kind of infrastructure is needed if you want to achieve a certain ‘storyline’. If you assume there is very high electrification and high decarbonisation, that has a certain number of parameters; suddenly, you will see what that means, and what needs to be put in place to make it happen. “Or, if looking at hydrogen-based power with CCS (carbon capture and storage) as an immediate step, what would you need then, and are there overlapping items where you don’t have to choose? It is that kind of insight we expect to have visible soon.” None of this means that decisions will be easy, he says – but it does mean that decisions will be informed and, of course, continual updating of the model will continue as trends develop. “The uncertainties are there because we are looking at the future. But Gridmaster can help us to understand the inter-relation of different development scenarios and which uncertainties are more, or less, decision driven. This whole journey will not stop for the next ten years at least – by which time, we should have killed off at least some uncertainty! In the end, what we are trying to do is make sure our future customers have the infrastructure they need, when they need it,” he concludes. 8 There are more than 40 industrial sites across the port of Rotterdam, all with different energy needs

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

JANUARY/FEBRUARY 2022 | 35

UNCTAD: MARITIME SECTOR REVIEW

UNCTAD: A PRICE TO PAY There is a price to pay for bloated freight rates and other supply chain issues. Felicity Landon charts the UNCTAD position and suggestions on mitigating measures

8 “We are seeing this mess due to our lack of action over the last years” - Captain Karuppiah Subramaniam, President, International Association of Ports and Harbors

How often have we heard over the years that the public and politicians don’t understand or appreciate the importance of ports and shipping? That was largely because global supply chains (pre-pandemic) were generally swift, eﬃcient and uninterrupted – and therefore very much unnoticed. Not any longer. We all tend to notice the things that aﬀect us directly and a small ‘positive’ of 2021 was that consumers were able to make a connection between waiting for months for their new furniture to arrive and the dramatic images of the Ever Given jammed across the Suez Canal. As the disruption to maritime transport continues, there’s more to come – unpredictable schedules, port congestion and supply chain bottlenecks show no signs of easing – the connections between freight rates and consumer prices are about to become a whole lot clearer. The United Nations Conference on Trade and Development (UNCTAD) Review of Maritime Transport 2021 includes a chapter dedicated to the impact of the record freight rates, together with the surge in fees and surcharges. Its in-depth analysis suggests that consumer prices overall will be 1.5 per cent higher in 2023 than they would otherwise have been. Beyond that figure, the predictions are alarming. The impact will be far more for Small Island Developing States (SIDS), where prices are projected to rise by 7.5 per cent, and in Least Developed Countries (LDCs), where the increase is likely to be 2.2 per cent. UNCTAD simulated the impact of the surge in container freight rates and concluded that global import price levels will increase on average by nearly 11 per cent. For SIDS, the increase could be as much as 24 per cent. Goods manufactured through global, integrated supply chains will also gain a hefty price tag, says UNCTAD; for

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example, consumers may have to pay 11 per cent more for computers and electronic goods. UNCTAD says that low-value-added items such as furniture, textiles, clothing and leather products, whose production is often fragmented across low-wage economies, well away from the major consumer markets, will also be heavily impacted; the simulation predicts consumer price increases of 10.2 per cent on these. The analysis also suggests a 9.4 per cent increase in rubber and plastic products, 7.5 per cent increase for pharmaceutical products and electrical equipment, 6.9 per cent for motor vehicles and 6.4 per cent for machinery and equipment. At the launch of the RMT in December, Rebeca Grynspan, Secretary General, UNCTAD, noted that crises such as the present one in maritime trade are often portrayed in simple terms. She mentioned a headline, “Supply chain issues will ruin Christmas”, and said: “The reality is much deeper and more worrying than that. What is at stake is not just a holiday season – it is food insecurity, it is inflation. It is a long-term challenge for developing countries in general and for SIDS in particular.” It was also pointed out at the launch that decarbonisation regulations and the maritime industry’s path to eliminating carbon will cost money, adding more to the cost of shipping. Once again, this will have more impact on SIDS. The report delves into the issue of turnround times in ports and how they vary significantly between countries, “producing economy of scale in countries with large and eﬃcient ports but the opposite for those with low levels of digitalisation and inadequate infrastructure”, said Grynspan. “These inequalities are also behind the transport costs that some in the developing world are currently facing,” she said.

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

UNCTAD: MARITIME SECTOR REVIEW Yet while more maritime trade means more economies of scale, it also means larger ships and fewer ports and more market concentration. “This is what we are seeing and this also has an eﬀect on prices.” NO SILVER BULLET There is no single silver bullet on the horizon to solve the crisis but policymakers can support shippers and transport providers through a number of measures to ease the situation, explained Grynspan. It is important to advance urgent investment in soft and hard transport infrastructure, she said. Governments need to advance reform and digitalise procedures, she said – noting that pre-arrival data processing, automation, port call optimisation and digital solutions all help to speed up port and customs handling. Following the RMT launch, the UNCTAD team held an ‘Ad Hoc Expert Meeting’ online, focusing on the maritime supply chain crisis. More than 20 speakers representing the perspective of shippers and cargo interests, industry associations, analysts, ports and government and international organisations, discussed what policymakers could do to help reduce congestion and high freight rates in the short term and provided longer-term recommendations for policymakers. One of the key points to emerge was the importance of hinterland connections and the interdependency of the various links in the supply chain. James Hookham, Secretary General of the Global Shippers’ Forum, talked about ‘connecting the dots’ and looking at the longer-term needs of all in the shipping and logistics industry. “Generally, we need to get governments to think about and update their perspectives on the movement of goods around the world,” he said. “National transport policy is still developed and administered and delivered in narrow modal silos. If this crisis has demonstrated anything, it is the dependency of the diﬀerent modes on each other and how, as the peak of demand and flow moved through the supply chain, we moved from shortage of capacity at sea, to ports, to inland transport.”

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The connections between freight rates and consumer prices are about to become a whole lot clearer Governments need to think about the dependency of their economies and imports/exports along those lines rather than seeking to address issues solely in their own modal terms, he said. “Even the European Union doesn’t do this. Recognising the interdependency of the diﬀerent modes and the way they connect together would be a major learning point for policymakers in the last few months.” More interactivity and collaboration is needed between the diﬀerent parties in the supply chain, including government, and this needs to address “the inherent suspicion and mistrust that there is in the industry”, said Hookham. He urged a rethink of anti-trust regulations, “which we consider to be a cloud hanging over the industry and a hindering aspect on the market”. THE FINAL DETONATOR The problems in the maritime and logistics supply chain have been brewing for years – the pandemic provided the final detonator, said Captain Karuppiah Subramaniam, President, International Association of Ports and Harbors (IAPH). “We are seeing this mess due to our lack of action over the last years.

We saw this problem coming but we did not act fast enough and this pandemic certainly taught us a lesson,” he said. “Do we think the end of the pandemic is going to end this problem? We don’t think so. We have to deal with this problem for years to come.” Ports have been the “punching bag” for many years, said Subramaniam. “We are the interface for ships; in the eyes of many people, we are seen as the final destination of ships. People are not concerned that cargo is passing through the ports to go to other areas. This is where hinterland connectivity is so important – and in many countries it is the biggest problem. We are only as strong as the weakest link. If one link is not eﬀective, the whole supply chain is going to be ineﬀective.” Ports cannot control everything but a port can be best placed to be a trade facilitator, he said, being in a better position to coordinate with clearing agencies, Customs and others in the ports. “Ports are moving to a role as trade facilitator within the supply chain ecosystem. We need to have Single Window systems, Port Community Systems, so that data can be shared at the press of a button, with many parties simultaneously. Going forward, we need to link up with the stakeholders outside the port – warehousing, shipping agents, forwarders, Customs etc.”

8 Ben van Scherpenzeel, Port Call Optimisation International Task Force, suggests improved vessel berthing arrangements are a priority

GLOBAL PLAN REQUIRED Ben van Scherpenzeel, representing the Port Call Optimisation international task force, said: “Port efficiency would help shore issues – not short term but in the long term. By allowing ships to secure their place in the queue at the terminal, it would help to give ships sufficient notice so they can decide whether it would make sense to change the rotation of the ship, select a different port, or optimise speed. Knowing that the berth system will be available three or four days away would help to use the ship in a more efficient manner than we do today.” However, ports cannot do that alone, nor shipping lines, he said. “We need a global implementation plan – how to do this, guidance from IMO being written in the FAL committee and the mandate to implement it.” An implementation plan is needed for the sharing of nautical and navigation data between ports, he suggested. “We need port-to-port standards to share this data, a compatible solution to translate ship movement into cargo movement and vice versa.”

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JANUARY/FEBRUARY 2022 | 37

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CONTAINER HANDLING

BROMMA: SETTING THE PACE Bromma has hit the ground running in 2022 with diverse new products and an optimistic view of the year ahead, as AJ Keyes discovers New equipment and initiatives are high on the Bromma agenda, but so is the need to make sure continued support is always available to customers. The new STS 45E G2 fully-electric spreader is due for full launch in early 2022. The principal environmental related design features of this all-electric spreader is the absence of hydraulics, which means no risk of hydraulic leakage. A hydraulically driven system also requires a constant powering of the system (i.e. motor running), which compares to the all-electric option whereby the motor is running only when something is moving. The power consumption of a STS45E G2 Plus is less than 10 per cent of the corresponding hydraulic version (STS45). In a high productivity terminal, this results in 16 tons less CO2 emissions per spreader annually. To put 16 tons in perspective, it corresponds to two trips around the world in a modern petrol driven car such as a Volvo V90 T5, according to Bromma. Lars Meurling, Vice President, Marketing & Sales, EMEA, Bromma, confirms that early pre-series units have been in place since Q1 2021 and have been favourably received. He also feels that the test grounds selected for new equipment are a key factor. “The new technology is used first in harsh environments but is proving to be durable. This is very important to our customers who want good, environmentallyfriendly equipment that is reliable,” he underlines.

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The new Bromma STS 45E G2 fully-electric spreader is due for full launch in early 2022 The Bromma Spreader Monitoring System (SMS) is also now in operation. This subscription-based web application provides real time monitoring of a spreader’s “health” for each spreader in the equipment fleet. The process packages information on operating issues and recommends solutions while highlighting what is most important. Further, a structured overview of planned maintenance for the spreader fleet and statistics on performance, productivity plus details of issues at a fleet level as well as for individual spreaders are available outputs. Tommi Tähtinen, Vice President, Spreader Solutions, Bromma, explains that the company’s innovative Application ication Programming Interface (API) provides access to data already available from the SMS enabling customers to integrate egrate information directly into their asset management ent or maintenance planning systems, while simultaneously utilising tilising the SMS functionality for advanced troubleshooting and d issue resolution. “The API currently consists of two endpoints, nts, the Spreader Status API focusing on condition-based monitoring oring of spreader health with access points (URLs) to SMS for advanced vanced troubleshooting and issue resolution at the point of need ed and Maintenance API, generating key data for planning of scheduled eduled maintenance based on Bromma recommendations or a user’s own preferences.” amera Yet another new initiative is “Hawkeye” a camera ng of application platform which facilitates OCR-reading

container numbers, oﬀers video streaming capabilities and a much-improved damage detection resource. There is also attention to basics. “We launched the new Bromma Parts Webshop in Q4 2021,” highlights, Tähtinen, “It was a full update of our old system but is much more user-friendly and more adaptable to use by our customers on their phones and tablets.” Key features include a shared shopping cart function, allowing any user to prepare a shopping cart, while visibility of stock and lead times are available.

8 The new environmentally friendly STS 45E G2 spreader is due in 2022 and will be supported by Bromma’s strong focus on digitalisation

MARKET ASSESSED Assessing the recent and forward market position, Meurling notes: “Overall, the market came back quite quickly. Projects were not cancelled but instead placed on hold. The demand for new capacity was always going to be there and would return, but the reduced spending on equipment replacement hit us hard as our customers had to delay until the extent of the pandemic was better known.” “We are actually seeing a similar pattern for our sales now, with a good geographic mix,” elaborates Meurling. “The big challenge in 2021 was the availability of component parts, as seen across many diﬀerent industries, plus cost pressures, with the need to take out costs where we can – as all of our customers have had to do themselves,” he says. With an estimated annual 40 million TEU of additional container port and terminal capacity expected to come online between 2021 and 2025, Bromma remains confident it will be able to gain its share of sales.

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8 Tommi Tähtinen (left) and Lars Meurling (right)

JANUARY/FEBRUARY 2022 | 39

BERTHING AID SYSTEMS

BERTH RIGHT John Bensalhia examines the latest developments and innovations in docking and berthing aid technology

8 The Straatman Berthing Aid System employs laser technology to measure vessel approach speed, distance, and angle

With higher capacity and physically bigger vessels, the docking and berthing process poses more potential issues for ports than ever before. Increases in scale present a greater risk of accidents, damage to the vessel and/or cargo and damage to port infrastructure and equipment. There is also potential for environmental hazards: if, for example, chemicals or other hazardous cargo spills into a port’s water area. All these potential problem areas can result in significant costs – direct costs and costs associated with the non-availability of a vessel or port facilities. One path, however, open to ports and terminals to reduce the potential for accidents occurring during the berthing process is the use of modern berthing aid systems. Traditionally, earlier generation systems have been deployed in high capacity liquid or dry bulk terminals where correspondingly large vessels call. But now with the significant scaling up of container vessel designs in recent years and berthing system technological advances – stateof-the-art laser technology for example - there is a much wider scope for their application. “World ports are seeing significant increases in vessel size and vessel traﬃc which are driving port utilisation and safety strategies,” says Robert Spain, General Manager, Allison Equipment Group, Inc (US distributor for Straatman BV). “Increasing the eﬃciency and safety of vessel docking manoeuvres are key elements of these strategies. This is especially true for hazardous area LNG and liquid bulk marine terminals.” POSITIVE SUPPLIER RESPONSE The berthing system supplier side of the industry continues to keep pace with user requirements and to ‘push the envelope’ on the development front.

40 | JANUARY/FEBRUARY 2022

Trelleborg’s SmartDock is a system that comprises two laser sensors, controller, central PC and data display options which can all be used to monitor and adjust the vessel approach during the push-up phase of docking. A typical application for SmartDock is in conjunction with the docking and mooring of LNG carriers in Singapore. Another example is Laser Communications Inc’s Rover, which measures the closing speeds and approach distances of vessels, while recording the data on a computer. The incoming information is sent to operatives both on the ship and in the docking area, via portable receivers. The Rover is designed to help port and terminal operators manage risky scenarios such as challenging tidal levels and currents. The Straatman Berthing Aid System (BAS) utilises the latest PLC and computer hardware and propriety application software to acquire, measure and display real time information critical for vessel docking manoeuvres. “Two precision lasers installed on the dock are used to measure vessel approach speed, distance, and angle,” explains Robert Spain. “A large LED flat screen,” he elaborates, “is installed on the dock for shore to ship visual communication with the vessel in real time. The latest sensor technologies are used to monitor environmental conditions, including wind speed and direction, tide levels, and marine current and speed and direction.” “All the BAS data is displayed on a Human Machine Interface (HMI) on the dock. It is also recorded to enable forensic analysis. This information may additionally be provided on a range of wireless, portable, handheld devices typically used by the Harbour Pilot and Ship Captain as well as dock personnel. Further, Straatman BAS systems can also be configured to interface with other digital systems on the dock and in the marine terminal facility.”

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

BERTHING AID SYSTEMS

‘‘

The scope for the application of berthing aid systems is widening Through Allison Equipment Group, its distributor in the US, Straatman has recently supplied Berthing Aid Systems to Customers in Europe and Asia for LNG and Liquid Bulk Terminals. Customers include ExxonMobil, Shell and Pertamina. Two major ports have used Straatman for green berthing area projects: the Port of Rotterdam, and more recently, the Port of Hamburg, with Straatman working on a berthing aid system that is powered by solar panel technology. The panels deliver power to quick-release mooring hook units with integrated capstans. While underwater cables have been used in the past as a power source, these proved to be a problem for diverse reasons: cost; time-consuming installation; risk of damage from either anchors or dredging activiity and health and safety risks. The advantage of using solar power (and also remotely powered devices) mooring ‘dolphins’ is that it gets rid of the need for underwater cables – not to mention providing a cheaper, more reliable and environmentally sound solution. SOUND AND VISION Docking and berthing aid systems rely on sound and vision. Port operators can get a clear picture of what’s happening through visual means such as screens and animations. Plus in the event of a problem, modern day systems are designed with alarms to warn the operator to swiftly act on the issue of concern. Uruguay-based SETI’s berthing aid system features both a large LED display and audible alarms. All of the available berthing information picked up by the system is relayed through the LED screen, which informs the operator of vessel distance, speed and berthing angle. Once the vessel is moored and in contact with the berth’s fenders, the system is programmed to monitor fender deflection and drift. In the case of a problem, an alarm informs the operator. Recording and monitoring the docking process is an important feature of berthing aid systems. This is so that ports can refer to this footage in both a historical context and for the purposes of forward planning. Metratek’s DockAssist includes the facility to monitor, visualise and record concurrent geometric positions and speed data for vessels that are in the immediate terminal area and outside the device’s laser range. DockAssist produces animated real time visuals of vessels in the area, and in the case of a vessel outside the immediate zone, the system’s virtual laser function calculates and displays its distance and speed. Docking aid systems are today designed with greater strength and resistance to outside influences. They are also designed with ease of use in mind. Fugro’s NorthStar berthing aid system possesses these features, being both lightning-proof and powered by a hot, swappable battery. This system works on the two-way principle, relaying data between two portable, global navigation satellite system beacons and a system on the FPSO (floating, production, storage and oﬄoading) unit. The communication is again, completed in real time, allowing for swift and accurate positioning data for the port. With each port facility inherently diﬀerent, this is accounted for in system design. The Prosertek DockMoor Berthing Aid System, for example, is designed with three key flexible

configurations in mind, which can be adapted to specific requirements and conditions. The first of these three modules is the Berthing/ Unberthing Module that precisely measures distance; the speed from bow to stern; and the angle of the ship with respect to the port’s fender system. The second module deals with Mooring Stress Monitoring. This closely monitors important aspects of the mooring process, such as the measurement of how much tension mooring lines can take. It monitors the tension of rope lines, the status of hooks, and the compression factor of fenders. The third module is FOCUSED ON diagnostics. This module provides a source of data on the condition of all hardware in the system (everything from control panels to laser measuring devices), ensuring that all elements are in good condition.

8 The scope for the application of berthing aid systems is widening

WEATHERING THE STORM Adverse weather conditions can prove especially trying for ports. Loss of business and operational challenges invariably occur under such circumstances, especially in conjunction with extreme weather events. In August 2020, for example, the Port of Virginia, USA was faced with the onslaught of Hurricane Isaias. However, with the aid of Seaport OPX’s NCOS Online, the port managed to deal with the fallout from the hurricane in two notable respects. One, the port was able to reopen terminals at a greater speed after the hurricane had eased; and two, the port managed to avoid paying excessive costs with regard to resource planning and operations. The use of NCOS Online helped with berth scheduling and mooring operations across its container terminals. NCOS Online’s online mooring analysis module combines vessel response engines and high-resolution metocean models, resulting in greater accuracy with respect to the calculation of vessel movement. With wind speeds of more than 35 knots, the Port of Virginia was able to reach decisions faster using NCOS Online. For example, the early rescheduling of ship calls meant that vessels could stay safely on the berth. NCOS Online was also used by the port to determine when it could reopen after the worst of the hurricane had passed.

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

JANUARY/FEBRUARY 2022 | 41

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CARGO HANDLING

MOBILES: GROWING IN THE WIND John Bensalhia investigates the development and operation of mobile harbour cranes for the growing task of wind turbine component handling

8 The port of Antwerp, Belgium epitomises how the ports sector is progressively growing its expertise in handling larger and diverse wind turbine components

Ports and terminals are setting their sights on the offshore wind industry, a sector that continues to grow. Given the increasing scale of the wind power industry, port interests are looking to use the best quality mobile harbour cranes that can efficiently handle bulky, heavy wind turbine components. A recent report from WindEurope says that with massive expansion throughout Europe of offshore wind farms, investment in this field is a necessity. Power output levels are predicted to grow from 25 GW to over 400 GW by 2050. With that in mind, the report estimates that €6.5bn worth of investment will be required into port infrastructure by 2030. New infrastructures will be needed for new berths, heavyduty quay and general work-space as well as supporting supply-chain facilities. Giles Dickson CEO, WindEurope, points out that ports are essential for offshore wind as they are a crucial element of the supply and logistics chain needed for “the installation, assembly, operation and maintenance of offshore wind farms. “Ports are perfect hubs for green energy. The offshore wind supply chain is often located in or around ports. Ports are then integrated into wider industrial ecosystems, and they will play a key role in the decarbonisation of, for example, chemical plant and refineries in coastal industrial clusters – through the renewable energy for which they serve in a hub capacity” Typical of the response of ports to meet wind generated energy requirements are the following prohects: 8 The Port of Tyne, UK: is to become the base for large-scale offshore wind farm, the Dogger Bank project. Over the course of a six-year plan extending from 2020 to 2026, the project is due to be implemented in three 12 GW phases, with the ultimate aim of generating around five per cent of the country’s electricity requirements. 8 Forth Ports, UK: plans are underway for the UK’s Forth Ports’ Port of Leith to establish itself as a renewable energy hub. Central to these are a riverside marine berth for

accommodating offshore wind installation vessels, and an upgrade of a 140-acre cargo handling site. 8 Port of Amsterdam, The Netherlands: This year will see the completion of the new energy port, Energiehaven, being developed by the Port of Amsterdam, With work having commenced on the 15-hectare area in 2020, Energiehaven is due to be completed by May 2022. It is intended to play a major role in the construction of offshore wind farms in the North Sea. The facility is strategically located in front of the sea locks in Ijmuiden. ADAPTING TO DEMAND While the concept of wind power is by no means new, port interests are progressively responding to the sector’s growing demands. The Port of Antwerp notes: “For more than a decade, we have been handling cargo for the production of renewable energy such as wind power. During that time, the global wind power market nearly quadrupled. As the market has grown, so has our expertise. There is no one-size-fits-all for this type of cargo: each load consists of motors, hubs, blades, tower sections, and nacelles.” At a cargo handling systems supply level mobile cranes are a primary machine for over the quay handling. Sebastian Simon, Product Manager, Liebherr Mobile Harbour Cranes, notes that typically the weight of the nacelle to be loaded can be several hundred tonnes. “For this purpose,“ he says, “our LHM 800 is the perfect solution. It is possible to lift up to 616 tonnes (on rope) with two LHM 800 units in tandem operation.” He gives the examples of the LHM 800 in service in the port of Esbjerg or the Lindø facility in the port of Odense, a facility located between the North Sea and the Baltic Sea, providing handling facilities to the burgeoning offshore wind industry. Carsten Aa, CEO, Lindø, explains that the company’s

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

JANUARY/FEBRUARY 2022 | 43

CARGO HANDLING purchase of the LHM 800 is designed to cement its, “key role as one of the world’s largest port players in the green transition with unique production facilities for future offshore wind turbines.” With the increasing size of this plant, the port can now “continue to contribute to facilitating green workplaces within sustainable energy production,” he says LARGEST AND MOST POWERFUL Liebherr suggests that the development and launch of the LHM 800 represents a clear signal to the market: “The LHM 800 is the largest and most powerful mobile harbour crane in our portfolio. The machine meets the ever-increasing demand for mobile heavy-duty cranes in the maritime sector. A key driver of the development of this unit is clearly the wind industry.” “In a special heavy-duty version, the LHM 800 is capable of transporting weights of up to 308 tonnes on the ropes,” elaborates Simon. Konecranes Gottwald mobile harbour cranes have a maximum lifting capacity of 200 tonnes, and with two cranes in tandem, this can double the load capability to 400 tonnes. The company’s Generation 6 range of mobile harbour cranes includes an electric drive which is designed to provide affordable, efficient and environmentally sound operations. As well as a high lifting capacity, the Generation 6 mobile harbour cranes include a 360-degree working range, a useful feature when handling bulky wind turbine components. Another key factor in wind turbine handling is support. The Mammoet Wind Turbine Maintenance (WTM) 100 and Wind Turbine Assembly (WTA 250) cranes are examples of using the turbine tower as a point of support, so that the cranes can both manage the turbine components and raise and lower these at greater heights. For the WTM 100, this is connected to two pre-fitted hoisting eyes, allowing for the ability to pull itself up and load up along the turbine using the tower for support. As a means of keeping steady during operations, this machine includes claws that can wrap around the tower. Meanwhile, the WTA 250 (developed in conjunction with engineering firm, MECAL) is installed on a guide rail running along the lower section of the turbine, which can then lift the next section using the tower as support. The process is repeated as the crane pushes itself up along the guide rail for the remaining turbine sections. An advantage of these cranes is their compact size, which means that they can be easily transported and relocated to the site of operations. In terms of a step-by-step handling process using a mobile crane to discharge wind turbine cargo from a vessel, the Port of Antwerp says that the handling process is a “two-way street” between the crane operator and the dockers working on both the ship and on the quay. Both parties work closely together, with the crane operator keeping a careful eye on the operations below via the computer monitor screen. This ‘double co-operation’ is mirrored in the horizontal twin lift of two cranes, a precise synchronicity of movement for unloading the blades and tower sections of the turbine. The Port of Antwerp underlines that this is very precise damage sensitive work: “When lifting a component, the crane operator has to do all he can to avoid collisions, as the cargo is very sensitive to damage. Twin lifting requires a lot of co-ordination: it’s not a job every crane operator can do. You need a dedicated and experienced team that’s familiar with handling sensitive cargo.” THE SYCRATONIC OPTION Liebherr mobile harbour cranes are able to operate safely in tandem with this promoted by an ‘intelligent’ Liebherr system

44 | JANUARY/FEBRUARY 2022

8 In a special heavy-duty version, Liebherr’s LHM 800 mobile can lift up to 308 tonnes

called Sycratronic. This is a computerised assistance system for operating two cranes with one crane operator. “This makes the system not only ideally suited for tandem lifts of turbines over 500 tons, but is also ideal for handling rotor blades, which ‘in the offshore sector can be over 80 metres long,” says Liebherr. “Sycratronic speeds up operation and enhances safety as the computer monitors operations to avoid overloads and compensates for the displacement of components being loaded. “Sycratronic is an essential asset in the wind industry – on – and offshore.” New Liebherr mobile harbour cranes as installed at France’s Nantes Saint-Nazaire Port, for example, are currently utilising Sycratronic for handling wind turbines and other windmill components for the offshore wind farm ‘Parc du Banc de Guérande’, France.” Nantes Saint-Nazaire Port has recently acquired two new Liebherr LHM 550 and LHM 600 mobile harbour cranes. The machines were specifically selected for deployment in conjunction with handling turbine and related cargo for Parc du Banc de Guérande, which is being built off the LoireAtlantique coast, and which is due to open this year. With the Sycratronic system boosting safety and efficiency, Ludovic Bocquier, Energy Sector Business Unit, Nantes Saint-Nazaire Port, explains that the new cranes meet the requirements in relation to developing the marine renewable energy sector. “The combination of the LHM 600 and LHM 550 cranes provides reliability and safety in the handling of XXL components such as masts or blades of offshore wind turbines,” he says. The growing number of wind power port projects means that there is ongoing demand for mobile harbour cranes to consolidate their position in the front line of handling turbine components.

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

PRODUCTS & SERVICES DIRECTORY

Email: neuero@neuero.de Tel: +49 5422 9 50 30 neuero.de/en/

C ONNECTION SOLUTIONS

Specialist for pneumatic ship unloaders and mechanical ship loader. NEUERO follows the MADE IN GERMANY quality tradition. Now with more than100 years of tradition in the manufacture of reliable and high-quality conveyor systems worldwide.

C ARGO HANDLING EQUIPMENT

B ULK HANDLING

A UTOMATION TECHNOLOGY

ifm electronic gmbh ifm is one of the world’s leading sensor companies in the automation of measurement and control, optimizing technical processes in almost all industries. +49 201 24 22 0 info@ifm.com www.ifm.com

NEUERO Industrietechnik GmbH

Over 60 years supporting Container Terminals in port operations: we create strategic ǁëŒƪėɆëŝĐɆļŝĉƎėëƖėɆƋƎŨǘƢëĈļŒļƢǈɆ ƢķƎŨƪİķɆƖŨŒļĐɆëŝĐɆƎėŒļëĈŒėɆ STS Portainer® and RTG Transtainer® cranes, services & Advanced Port Technologies. PACECO® CORP. World Headquarters 25503 Whitesell Street Hayward, CA 94545 Tel (510) 264-9288 email@pacecocorp.com www.pacecocorp.com

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 ONSULTANTS

B ULK HANDLING

Staubli_Directory Mar 2021.indd 1

Bedeschi S.p.A 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

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

Taylor Machine Works designs, engineers, and manufactures more than 100 models of industrial lift equipment with lift capacities from ,000-lbs. to 125,000-lbs.

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

Telestack are a leading global manufacturer of equipment for the bulk material handling industry including Ship Loaders/Unloaders, Hopper Feeders, Truck Unloaders, Bulk Reception Feeders, Stockpiling Conveyors, Link Conveyors and Telescopic Stackers.

YOU CAN DEPEND ON BIG RED!

Tel: +44 (0)2882 251100 Email: sales@telestack.com www.telestack.comw #WeHaveTonnesToTellYouAbout

A/S Cimbria 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. Faartoftvej 22 7700 Thisted, Denmark Tel: 0045 96 17 90 00 cimbria.holding@agcocorp.com www.cimbria.com

DRY AGRIBULK MATERIALS HANDLING SYSTEMS : – Portable grains pumps – Pneumatics continuous barge and ship unloaders 100-1200 tph – Simporter twin-belt unloader up to 2500 tph – Loaders up to 2500 tph Complete turnkey projects VIGAN Engineering S.A. Belgium Tél.: +32 67 89 50 41 www.vigan.com/info@vigan.com

Vigan ID.indd 1 Cimbria Directory.indd 1 For the latest

LASE offers innovative and productive solutions for ports by combining state-of-the-art laser scanner devices and sophisticated software applications. We are specialised in the fully automated handling of containers, cranes or trucks. Rudolf-Diesel-Str 111 D-46485 Wesel, Germany Tel: +49 (0) 281 - 9 59 90 - 0 info@lase.de www.lase.de

26/05/2021 12:20

P4.1 e-chain® Energy chain with optional intelligent wear monitoring for double the service life, travels of up to 1.000 m, speeds of up to 10 m/s and fill weights of up to 50 kg/m. igus® GmbH Spicher Str. 1a D-51147 Köln, Germany Tel. +49-2203-9649-0 info@igus.eu igus.eu/P4.1

25/01/2022 11:45

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

E LECTRIFICATION SOLUTIONS

27/01/2021 11:29 Telestack Directory June 2021.indd 1

C OMPONENTS

Beumer Directory Jan 2021.indd 1

We are a UK-based independent consulting ﬁrm with a mission to provide ﬂexible, affordable, and agile Port & Logistics consultancy services to our clients. PORT STRATEGY PORT EXCELLENCE PORT-CENTRIC LOGISTICS

London & Port Logistics ID.indd 1

LASE Industrielle Lasertechnik GmbH

25/02/2021 15:49

London Port & Logistics Consulting Ltd Tel: +44 7379 039957 info@lplc.co.uk www.lplc.co.uk

3690 N Church Avenue Louisville, MS 39339 USA +1 662 773 3421 CONTACT?SALES TAYLORBIGRED COM www.taylorbigred.com

D REDGING

Overland Conveyor Pipe Conveyor Stacker & Reclaimer Shiploader

Taylor Machine Works, Inc.

C ARGO HANDLING SYSTEMS

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.

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

25/01/2022 12:03

14/07/2020 news and analysis go 10:56 to www.portstrategy.com/news101

JANUARY/FEBRUARY 2022 | 45

PRODUCTS & SERVICES DIRECTORY

Port Strategy Directory Contact Tim Hill +44 1329 825335 www.portstrategy.com H ANDLING EQUIPMENT

G RABS

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

Camco ID June 2021.indd 1

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

Phone : +919727738429 E-mail : Info@irmome.com Website : www.irmome.com

19/05/2021 14:16

Sany SanyAllee Allee11 50181 Bedburg, Germany D-50181 Bedburg Tel: 100 Tel:+49 +49 2272 2272 90531 90531 100 Email: info@sanyeurope.com info@sanyeurope.com Email: www.sanyeurope.com www.sanyeurope.com

20/01/2021 10:50

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.

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

25/01/2022 11:42

To advertise in the

Port Strategy Directory Contact Tim Hill +44 1329 825335 www.portstrategy.com

46 | JANUARY/FEBRUARY 2022TT Club Directory March 2021.indd

Contact Tim Hill +44 1329 825335 www.portstrategy.com

01/03/2021 For14:40 the

S IDELIFTER/SIDELOADER

I NSURANCE

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Port Strategy Directory

P OWER TRANSMISSION

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

To advertise in the

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

Orts GMBH Maschinenfabrik

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

With products ranging from Marine fenders, Offshore installation aids to products for the Foundation of offshore wind.

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.

RuggON_Directory_40x58.indd 1

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.

IRMOME is the world’s most preferred offshore and marine rubber engineering products manufacturing company.

IRM Directory July-Aug 2021.indd 1 30/06/2021 14:24

01/02/2021 13:12

MRS Greifer GmbH

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

MARINE FENDERS

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

Fogmaker Directory.indd 1

I T PORT AUTOMATION

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.

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

Hammar Maskin AB Hammar Maskin AB is developing, manufacturing and marketing Sideloaders, also known as Sidelifters, Swinglifters or Self loading trailers, under the brand name HAMMAR™. Buagärde 36, Olsfors 517 95 Sweden Tel: +46-33 29 00 00 Fax: +46-33 29 00 01 info@hammar.eu www.hammar.eu

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

PRODUCTS & SERVICES DIRECTORY

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

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

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

Solvo Europe B.V.

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

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

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POSTSCRIPT BOLLORE: THE BIG SALE

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MSC’s exclusivity status is perhaps a result of “fortune favours the brave,” a willingness to field a knock-out bid

48 | JANUARY/FEBRUARY 2022

The recent announcement that the Bollore Group is putting its African Logistics assets up for sale was not entirely unexpected, there have been murmurs in the market. What followed in short order was, however, a little surprising, namely granting the MSC Group, best known for its top tier ranking among container liner operators but also possessing its own fast growing terminal operating arm – Terminal Investments Limited (TIL), a period of exclusivity to carry out due diligence and conduct additional negotiations on the basis of a US$6.4 billion indicative bid. The jewels in the crown of Bollore’s African Logistics assets are sixteen container terminals with, in all, Bollore present in 42 African ports, although not always in a cargo handling capacity. A number of the container terminals, most of which are operated under concession, involve a partnership with another entity and notably APM Terminals. This is the case in Abidjan, for example, where Bollore and APMT operate the existing container terminal and are now pressing ahead with the construction of an adjacent second terminal. Similarly, they are partners in the Port of Pointe Noire, Congo-Brazzaville container terminal. Indeed, it is surprising given this relationship that APMT did not secure a period of exclusivity to look at the deal. The same could be said of liner operator CMA CGM, which enjoys a French connection with Bollore and also has terminal operating assets in its group as well as strong African lineage. The fact that so far it is MSC in pole position inevitably comes to down to money – in all likelihood the MSC bid came out tops in an indicative bid process and hence the award of exclusivity. It will be interesting to see if at the end of the due diligence process the bid level remains the same and the deal confirmed. Presumably, what can be called the auction stage of the bid process is over and there is little scope for gazumping to take place. But you never know…money talks! Informed sources indicate that APMT and CMA CGM did express interest, both of course already have a strong involvement in Africa through liner shipping and in APMT’s case via both shipping and an existing large network of African terminals including those where it has joint ventures with Bollore. For both these companies, and of course for MSC also with a strong presence in Africa, a purchase oﬀers the sizable benefits of synergies with their existing operations and generally the ability to scale up, in one step, at an unprecedented level. MSC’s exclusivity is perhaps a result of “fortune favours the brave,” a willingness to field a knock-out bid where others might not be so inclined. It is a strategy that has worked before with terminal acquisitions. APMT showed such a willingness back in 2006 when it secured the Apapa Container Terminal concession with a mega oﬀering compared to those

8 The Abidjan Container Terminal – one of sixteen container terminals up for sale including a second terminal under development in Abidjan

of other bidders. Equally, DP World bid very strongly for the P&O Ports global portfolio of terminals and enjoyed a successful outcome. WHY IS BOLLORE EXITING? So, what drives Bollore to exit its African logistics operations at this juncture? There is wide-ranging speculation on this subject. This ranges from the imminent retirement of Vincent Bollore, long-time head of the Bollore Group through to his indictment in France for “corruption of foreign agents holding public authority” relating to port concessions obtained in Lome and Conarky, the fall-out from the 2016 train crash in Cameroon (operated under a Bollore concession) which killed 79 people and the more practical aspect of keeping up with the heavy investment requirement in the port sector in a more competitive environment. There is also the Douala episode which saw Bollore evicted from the container terminal there, a factor which is said to have contributed to an estimated 10 per cent drop in the turnover of the Africa logistics division. Ironically, it was TIL that was declared the winner of a new concession process for the Douala terminal but it has not taken up residence due to ongoing legal action surrounding Bollore’s removal. Another reason to exit, which has come up in the past, is a desire on the part of Bollore to build up its activities in the media sector where it has a powerful presence. Ultimately it may just boil down to the time is right and the price is right, especially with shipping line suitors around who are enjoying unprecedented profits. Indeed, Bollore has previously demonstrated its willingness to sell core assets, selling, for example, the Delmas-Vieljeux to CMA-CGM. One thing is for sure, a sale of this nature encompassing 16 container terminals, diverse other port and logistics activities and three railway concessions does not come along that often and it will be extremely interesting to see the final outcome and price tag.

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

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PORTSTRATEGY INSIGHT FOR PORT EXECUTIVES

Port Strategy January/February 2022

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