Port Strategy March 2021 by Mercator Media

MARCH 2021 VOL 1021 ISSUE 2

portstrategy.com

North Continent: winners & losers | BREXIT: New rules, paperwork, barriers and routes

LUANDA TENDER CONTROVERSY SUPPLY: THE CRITICAL ISSUE TRANSLOADING TAKES OFF MUA: THE BIGGER PICTURE

PORTSTRATEGY INSIGHT FOR PORT EXECUTIVES

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

VIEWPOINT MIKE MUNDY

Terminal operators: shoulders to the wheel…

Overall, the terminal operating sector has responded well to the prevailing challenging operational circumstances. This poses the question should they be better rewarded for their eﬀorts by their liner customers in particular?

It’s unusual that the supply side of the container sector is under pressure – that container availability and shipping capacity is stretched and when available invariably only at a high price. For sure it must seem like Xmas every day to the majority of shipping lines who are enjoying an unprecedented financial upside resulting from the Covid related events that have added radical new dimensions to key supply chains. The lines themselves have, of course, learnt some new tricks when it comes to turning on and off the capacity tap as well as being astute not just with core pricing but all the many add-ons that can be deployed nowadays – congestion charge, peak season surcharge etc The issue of supply is considered in-depth in the article Supply the Critical Issue on p17. Empty repositioning, container congestion in terminals, ships waiting at anchor, full warehouses, port workers with Covid and, as a result of one or more of these factors, extended container journey/cycle times are all seen as contributory causes to prevailing supply-based issues. It is calculated that on average delays caused by one or more of the above factors are increasing normal journey times by as much as 10 per cent. Furthermore, it is estimated that a week’s delay in container trips results in 10 to 20 per cent more containers being required, something that cannot be achieved in short order. All this means, of course, that along key trade routes supply side problems will persist for some time yet, possibly beyond a year! As the p17 article underlines given these difficult circumstances, ports and terminals have, as a rule, done rather well but at a price. Indeed, this is reflected in the article Winners and Losers (p18) which considers the recent and potential forward performance of the major North European containerports. The end of 2020 delivered an overall result for north European containerport throughput – a decline of just 4.1 per cent – that many had anticipated would be much worse. To achieve such a performance under difficult operational circumstances can be seen as a significant achievement. One that should perhaps be better rewarded by lines a major point raised in Supply: the Critical Issue. The larger power blocs manifest in container shipping nowadays have to a significant extent suppressed increases in terminal pricing but the merit of achieving fair deals with terminal operators is amplified when they are called upon to deliver in a high-pressure environment. Also of relevance looking to the future, is a higher level of innovation in the terminal sector – building in more flexibility is one facet of this at an operational level, highly necessary with disrupted supply lines. Technically, added impetus is discernible in the adoption of digitalisation and semi or fully automated operations. Terminal operators clearly have their shoulders to the wheel in seeking to keep supply chains moving. Port and terminal labour can be included in this commendation but of course there are always exceptions to the rule and in this respect it is notable that the Maritime Union of Australia has come in for significant criticism. It has attempted to say that it is behaving responsibly while triggering yet another round of industrial action in Melbourne but the consensus appears to be that this is more PR spiel than fact (p46).

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

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MARCH 2021 | 3

CONTENTS MARCH 2021 VOL 1021 ISSUE 2

portstrategy.com

North Continent: winners & losers | BREXIT: New rules, paperwork, barriers and routes

NEWS 16 EU strategy

Port mobility plans

16 Duisburg new stake

CargeBeamer investment

16 EU green deal

Sustainable ports pitch

LUANDA TENDER CONTROVERSY SUPPLY: THE CRITICAL ISSUE TRANSLOADING TAKES OFF MUA: THE BIGGER PICTURE

On the cover Angola has a comprehensive programme of IMF-backed privatisations planned. The recent tender for the privatisation of Luanda’s multi-purpose terminal has, however, run into stormy waters

17 CMA CGM in Egypt New port deal

17 Chile quick deal Valparaiso short concession

17 El Salvador plan Masterplan target

18 Westports automation

Expansion aims

18 Hungry intermodal Start up in 2022

19 Data exchange globally Big guns sign up

is a proud support of Greenport and GreenPort Congress

19 New partner for PD

Teaming with Roerdam

19 OPUS in Manaus 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

Piraeus2021

GREENPORT Cruise Congress &

The Congress is a meeting point that provides senior executives with the solutions they require to meet regulatory and operational environmental challenges. Stay in touch at greenport.com Join leading port executives www.greenport.com/congress

Social Media links LinkedIn PortStrategy portstrategy YouTube Weekly E-News Sign up for FREE at: www.portstrategy.com/enews

FEATURE ARTICLES 17 Luanda controversy Tender troubles

18 North Continent Winners and Losers

20 Critical Supply Issues Hope for flexible solutions

22 BREXIT update

New rules, barriers and routes

25 UK Freeports The Bids are in

27 B.A. Carriers key Lines influential in Buenos Aires

28 Chile capacity crossroads

Development issues

30 Callao: two speed Operator priorities

11 Ammonia backed

32 Transloading takes o

11 Galveston donuts

34 Drayage solutions

Gaining new TOS

New APM target

Trelleborg fenders

REGULARS 13 The Economist

Ports are struggling

Online portstrategy.com 5 Latest news 5 Comment & analysis 5 Industry database 5 Events

MARCH 2021

13 The Strategist Coal wind down inevitable

14 The New Yorker New ‘Super Cycle’

14 The Analyst

Antwerp/Zeebrugge deal

15 The Environmentalist Big step in right direction

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

Prince Rupert ambitions

Optimisation potential

36 Design options stack up RTG and RMG innovations

38 Refining vessel arrival

Docking and mooring eiciency

41 New smart bollards Roerdam test – benefits foreseen

44 Postscript

MUA actions questioned

MARCH 2021 | 5

PORT NEWS

EU strategy DUISPORT BUYS INTO CARGOBEAMER for ports As part of its recently released mobility strategy which aims to lay the foundations for how the EU transport system can achieve its “green and digital transformation and become more resilient to future crises” the European Commission (EC) has made the following observations regarding the ports sector. It states: “Ports should become multimodal mobility and transport hubs, linking all the relevant modes. This will improve air quality locally thereby contributing to the improved health of nearby residents. Inland and sea ports,” the EC elaborates, “have great potential to become new clean energy hubs for integrated electricity systems, hydrogen and other low-carbon fuels, and test-beds for waste reuse and the circular economy. “The Commission,” it says, “will propose measures to make ports clean, by incentivising the deployment of renewable and low carbon fuels and feeding stationed vessels with renewable power instead of fossil energy, incentivising the development and use of new cleaner and quieter vessels.” It is reasonable to expect following this policy statement the EC will back it with a growing package of financial and other incentives designed to accelerate the achievement of the stated goals.

BRIEFS Kangaroo debut

Public consultation has brought plans for a multi-user deepwater port at Kangaroo Island in South Australia closer to reality. Amendments to the plans by developer, Kangaroo Island Plantation Timbers (KPT), provided more details about biosecurity management and further detailed port design. The port will be suitable for timber, passenger and general cargo vessels, with woodchips transferring by conveyor belt.

6 | MARCH 2021

Duisburger Hafen AG (duisport) has purchased a stake in CargoBeamer AG, a rail technology company. CargoBeamer’s fully automatic system is primarily used for transporting semi-trailers by rail, using special railway cars and handling terminals. During loading and unloading the semi-trailers are driven and parked in the pallets, which are then shifted horizontally and fully automatically into the waiting train. CargoBeamer is reported to be able to complete the loading and unloading of a cargo train with up to 36 wagons in less than 20 minutes, while the process is completely digitalised and is fully compatible with intermodal transport cranes and reach stackers. Customers such as freight forwarders can bring their semi-trailers to the rail terminal from where they are transported to their destination by rail. Both

companies are working together to develop digitally automated handling for semi-trailers from road to rail. The aim is to combine robotised warehouses and the electromobile distribution of goods on the ‘last mile’, an eﬃcient European model for a sustainable transport network is to be created in the centre of North Rhine-Westphalia. Erich Staake, Chairman,

8 Duisport invests in CargoBeamer and has a digitally oriented new product agenda

Duisport, explains: “Those who want to relocate transport away from roads have to transfer semi-trailers towards rail. CargoBeamer oﬀers an excellent solution with its handling technology that has been developed in a pioneering concept oﬀering environmentally friendly and sustainable mobility solutions.”

GREEN DEAL FUNDING APPLICATION A joint application for EU funding designed to facilitate assisting ports to become sustainable multimodal nodes has been submitted by the ports of Stockholm, Belfast, Lubeck and Gent. The application covers a variety of planned work including realising scaling up existing onshore power electricity connection capabilities so as to be able to charge heavier road

vehicles and to provide large scale battery charging facilities for Ro-Pax vessels. Stena Line is also participating in the application and Niclas Martensson, CEO, Stena Line and member of the Government Oﬃces of Sweden’s Electrification Commission commented on the project: “Electrification is an important part of our journey to achieving fossil fuel-free shipping and we are already operating

services with a hybrid ship.” He further notes Stena has plans to introduce an entirely battery powered ferry by 2030 at the latest and that the port green initiatives complement these plans. The application also covers the testing of emission free equipment within port areas, a study and trial of autonomous passenger boats and last mile delivery services plus charging facilities for smaller passenger vessels.

Almeria box capacity

Sines shines

Maputo border pain

Box throughput at the southern Spanish Port of Almería continues to rise, prompting Almería Port Authority (APA) to announce upgrades to the storage and handling area for containers on Muelle de Poniente. The reception area for containers will be expanded while handling operations on the quay are to be upgraded along with an improvement in overall safety measures. At La Piscina, a new reclaimed storage area of 2500m2 will be created.

In 2020, the Portuguese Port of Sines reported container growth of 13 per cent, to 1.6 million TEU, despite being impacted by the COVID-19 pandemic. Although primarily a transshipment port, Sines also handled import-export demand of 442,000 TEU. The performance contrasts with the overall trend with oﬃcial figures confirming mainland Portuguese ports handled a combined 2.7 million TEU in 2020, down -8.9 per cent.

Cargo volumes at the Port of Maputo, Mozambique, declined by 13 per cent in 2020 compared to the previous year. The port handled 18.3 million tonnes compared to 21 million tonnes in 2019. Maputo Port Development Company (MPDC) attributed the decline in activity to the closure of the South African border due to COVID-19 and also to the lockdown imposed in March and April. Inbound shipments of metal ores by rail grew by 33 per cent.

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

TERMINAL NEWS CMA CGM is going to operate a new cargo terminal at the Port of Alexandria in Egypt, on the Mediterranean coast. This latest announcement follows news in August 2020 that Hutchison Ports is developing a new facility at the Abu Qir naval base at a cost of $730 million. Both facilities are due to commence operations in 2022. The CMA CGM terminal, at Pier 55, will be a 1.5 million TEU per annum multipurpose facility, with the Hutchison Ports development, located just 20km away, oﬀering an eventual capacity of 2.0 million TEU per annum. CMA CGM reports that Pier 55 will cover an area of 560,000m2 and be served by 2000m of quay designed to allow the largest ships deployed to berth. Serving Egypt’s local markets is also the aim for the new Hutchison Ports terminal. This greenfield facility is expected to connect to a new highway oﬀering a direct route to Alexandria and, via the national road network, to Cairo. The new facility will have a design draft of 18m, to service the largest ships in trades calling Egypt in conjunction with major East-West services such as to/ from Asia and the Mediterranean. Quay line will be 1200m

CMA CGM AND HUTCH’ – EGYPT INVESTMENTS

supported by a 60ha yard area (with an additional 100ha available for future expansion). Container terminals located on the Mediterranean coast of Egypt benefit from a strategic geographic location. They are at a crossroads that can link Asia, Europe/Mediterranean and Africa. They are, nevertheless, part of a competitive port landscape. Currently, there are four container terminal options in the Alexandria and El Dekheila port region. Hutchison Ports operates Alexandria International

8 Strong current interest in port terminal in Egypt exists

Container Terminal (AICT) and along with Alexandria Container & Cargo Handling Company (ACCH), both AICT and ACCH have one terminal in each of the two ports. The total Egyptian container port market totalled almost 7.25 million TEU in 2019, according to Egypt’s Ministry of Transport. This represents an eight per cent increase over the previous 12-month period, although COVID-19 is expected to have impacted 2020 volumes.

VALAPARAISO SHORT-TERM CONCESSION A cloud of uncertainty is hanging over the temporary concession for a second terminal for handling containers in Valparaiso. Terminal Cerros de Valparaiso (or TCVAL) has been given a four-month extension from April until August 2021 to continue operating the general cargo and container terminal at Terminal 2 in Valparaiso, historically one of the most important ports not only in Chile but of the entire West Coast of South America. Owing to a tranche of unsolvable problems – including delays in the environmental license – TCVAL declared over a year ago it would give up its 20-year concession, awarded in 2013, in April of this year. The Valparaiso port authority is now oﬀering a short-term four-year concession to maintain

box terminal competition within the port – where Terminal Pacifico Sur (TPS, operated by the Ultramar Group and in which MSC has an interest) is the main container terminal – as well as outside the port. According to local sources there are four companies who might bid for the short-term contract, but each has reservations about how any profit can be made without spending on equipment. They are ZEAL, which operates the logistics

park in the port, but has no equipment; Agunsa (Urenda Group), which has equipment but is in dispute with the Valparaiso Port Authority, which is managing the bid; the current concessionaire TCVAL (although it said that it wants to exit by August); or for TPS to be granted an exemption from the monopolies commission so it can bid. The concession is due to be awarded in May but further delays are expected.

EL SALVADOR CONCESSION PLANNED The Autonomous Executive Port Commission of El Salvador (CEPA) has presented its Master Plan for the Development of Ports in El Salvador 2020-2030. It is based on feasibility reviews that looked into the development of new

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

business models for the Port of La Unión. In 2021, a tender will be issued for the development of infrastructure via a new operating concession. Separately, the Port of Acajutla will target international productivity standards.

BRIEFS Buenaventura new terminal

In Colombia, the National Infrastructure Agency (ANI) has granted a concession to Sociedad Portuaria Energética Multipropósito y Contenedores Puerto Solo Buenaventura SA to build a new terminal in the Bay of Buenaventura. It will commence initial operations in 2022 and be fully working by 2024. It will mostly handle imported LPG, but the multipurpose facility will also target containers and refined petroleum products from the USA.

Pushback on Patrick charges

Australia’s container transport industry is stridently opposing new increases in landside fees and charges to be applied by Patrick Terminals from March 1. The Container Transport Alliance Australia (CTAA) states the decision is “unfettered and unilateral” and notably because non-payment of the terminal’s fee tariﬀ will deny transport operators terminal access. The CTAA says no justification or evidence has been given for such fee increases which represent a major cause for concern for landside stakeholders.

MSC acquires rail terminal

Mediterranean Shipping Company (MSC) has acquired the Torrejon railway terminal in Spain, via its logistics subsidiary, MEDLOG,. The company said the terminal location can support the acceleration of trade between Madrid and diverse points around the Iberian Peninsula. The facility will complement existing logistics platforms, such as in Cordoba and will be exclusively dedicated for MSC customers with dry goods and reefers.

MARCH 2021 | 7

INDUSTRY NEWS

Westports target automation Westport Holdings Berhad (West ports), located in Port Klang, Malaysia, has confirmed its intention to invest in automated container equipment in the future. Westports has stated that capacity needs to be created for CT10 and CT17, which will see container handling capabilities doubled from the 14 million TEU currently available up to 30 million TEU when CT17 is fully operational. During December 2020 and January 2021 the operator received a fleet of new equipment, including 12 Mitsui rubber-tyred gantry (RTG) cranes delivered in December 2020 and January 2021. Datuk Ruben Gnanalingam, Managing Director, Westports underlines the rationale of using more automation. “For us, right now, a lot of the operations we do are manual. We have human beings driving the cranes, trucks, stackers, human beings everywhere. We’re trying to get fewer human beings doing better jobs. We’re not going to automate all of the cranes because we feel in some instances human beings are superior to robots – but we feel there are some areas though where automation can really help.” The company expects to invest RM12.6 billion ($3.12 billion) over a 20-30 year time period as part of the expansion to CT17.

BRIEFS PIL secures funding

Singapore-based container line, Pacific International Lines (PIL), is being restructuring following a capital injection from Temasek Holdings, sparing the company from liquidation. The US$600m bailout is via Heliconia Capital Management, a unit of Singapore’s sovereign wealth fund, Temasek Holdings. Financial diﬃculties have seen assets being sold oﬀ with PIL’s liner fleet now reduced to 280,000 TEU slots.

8 | MARCH 2021

HUNGARY INTERMODAL TERMINAL START-UP 2022 A new intermodal terminal in Fényeslitke, Hungary, aims to become one of the largest and most modern terminals in Europe due to use of innovative crane technology from Kuenz. East-West Intermodal Logistics Ltd. has 125 hectares of land near the Ukrainian and Slovakian border and reports it is developing it to be the most modern and largest hub on the Silk Road. Three Kuenz Intermodal Cranes and One Freerider RTG will handle up to 1 million TEU

per year. Two of the RMGs will be designed as gantry cranes with a single-sided usable cantilever with a rail gauge of 21m and a cantilever length of 11.5m. The third, larger crane, will be designed with usable cantilevers on both sides; rail gauge is 40.15m and cantilever length on each side is 10m. The cranes will handle all types of containers as well as semi-trailers and swap bodies. All four Kuenz cranes have a high level of automation and are operated via remote control

stations – no cabins are mounted on the cranes. For the first time ever in intermodal terminals, data is to be transmitted to remote-controlled cranes via 5G technology. The new East West Gate in Fényeslitke will employ its own 5G network for internal communication and operation of the cranes. All systems will be delivered before the end of this year. After a test phase, the terminal is scheduled to go into operation at the beginning of 2022.

8 The Spanish port of Tarragona has confirmed a new weekly service with the port of Izmir, Turkey. It is being operated by EKOL Logístics, DFDS, Euroports and shipping agent, Arola. The service has capacity to move 210 ro-ro transport units (RTU), including trucks and semi-trailers, as well as carrying capabilities for containers, heavy machinery or special cargoes. From Turkey, Tarragona is reached in 60 hours and deliveries are made in Spain within 96 hours.

Nicaragua investment The National Port Company (CPN) of Nicaragua forecasts it will handle five million tonnes in 2021, which compares to 4.5 million tonnes in 2020. To facilitate traﬃc growth, CPN will invest US$4 million in modernising Sandino Port covering more paving, improvements to the quay and construction of new warehousing. The Port of Arlen Siu will receive U$342,368 to commence operations at a multipurpose dock.

Copper deal struck

In Chile, Mejillones Port Company (CPM) has signed an agreement with the National Copper Corporation of Chile (Codelco) to handle containerised copper concentrates at subsidiary Terminal Graneles del Norte SA (TGN), at Angamos Port. The contract, which will generate annual revenue of up to US$10 million, covers the reception, collection and shipment of containers from Codelco’s northern divisions.

Mexico box drop

Following year-on-year growth since 2008-2009, container throughput in Mexico in 2020 experienced a sharp downturn. Total box traﬃc was down -9.1 per cent on the 7.1 million TEU reported for 2019. According to the Ministry of Communications and Transport (SCT), Pacific ports handled 4.5 million down - 8.1 per cent, while ports in the Gulf of Mexico saw activity of 2.0 million TEU, equivalent to a drop of -11.2 per cent.

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

DIGITAL NEWS

BIG GUNS SIGN UP TO GLOBAL SHIPPING BUSINESS NETWORK Nine of the industry’s largest shipping companies and terminal operators have signed an agreement confirming their interest in becoming shareholders of the proposed Global Shipping Business Network (GSBN). The nine companies are CMA CGM, Cosco Shipping Lines, Cosco Shipping Ports, HapagLloyd, Hutchison Ports, OOCL, Port of Qingdao, PSA International and Shanghai International Port Group (SIPG). GSBN has been established by specialist logistics technology provider, CargoSmart Limited, with the intention of it being a not-for-profit organisation that operates and supports a secure data exchange platform across the global supply chain. One of the companies involved, Hapag Lloyd, outlines the importance of this latest development. “The signed

shareholders’ agreement symbolises an important milestone towards securing an industry-wide secured digital collaboration platform that aims to benefit all parties in the global supply chain. We expect the trusted blockchain platform will accelerate the sharing of verified logistics and cargo data, streamline business operations across the whole

8 Hapag Lloyd is one of nine container industry heavyweights supporting a new data exchange platform

supply chain, and create value to each stakeholder,” said Martin Gnass, Managing Director, IT, Hapag Lloyd. CargoSmart will remain the technology solutions provider and operator for GSBN once operational.

PD PORTS TEAMS UP WITH ROTTERDAM UK-based port operator, PD Ports, has confirmed a new partnership with the Port of Rotterdam to help develop digital solutions as part of supporting future growth on the River Tees. PD Ports is committed to increase activity and economic development in its region by 2050. As part of this process, the company is targeting greater use of digitalisation, beginning with

introduction of a port community system (PCS). The first phase of the programme for this critical infrastructure is to enhance its role as a “smarter port” and reduce the need and reliance on personal interaction and paper-based transactions. The impact of COVID-19 and the new operating environment for post-BREXIT UK are also factors in the operator’s thinking here.

The aim of the new arrangement is to generate much closer and collaborative working processes with the Port of Rotterdam, as Frans Calje, CEO, PD Ports, explains: “By working with our colleagues in Rotterdam we can build direct links with Teesport’s biggest single supply route, connecting not only PD Ports but the entire community on the river to the largest port in Europe.”

SUPER TERMINAIS GOES FOR OPUS TERMINAL Super Terminais of Manaus has signed a deal with CyberLogitec to utilise the OPUS Terminal Operating System in order to increase operating productivity and eﬃciency. The Port of Manaus is a river port located on the Rio Negro and despite its location on the Amazon remains the main transport hub for the entre upper Amazon basin. In H1 2020, the facility handled almost 340,000TEU, an increase on the same period for 2019 when just over 320,000TEU

8 Growing volumes are a catalyst to greater digitalisation at the Port of Manaus

passed through the facility. With volumes growing annually the port has selected CyberLogitec to help monitor, manage and enhance existing operations in

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

real-time, as part of a drive towards improving customer service levels Marcello Di Gregorio, Managing Director at Super Terminais notes: “CyberLogitec’s OPUS Terminal will help us improve inventory accuracy and operational eﬃciency, on top of providing better visibility to all our stakeholders. Implementing the new TOS supports our commitment to meet and exceed expectations through reliable services, meeting deadlines, and adding value to our partners.”

BRIEFS Digital twin for CSP in Valencia

Cosco Shipping Ports (CSP), Spain is supporting DSP and TALUMIS to build a digital twin of its Valencia terminal to support daily operations decision making, optimise processes and use of equipment. DSP and TALUMIS have a partnership agreement to develop innovative vertical software solutions in the area of simulation, emulation, predictive analysis and artificial intelligence for the container terminal industry to support operators in their daily operational decisions.

VULCAN X is Navis ready

RuggON of Taiwan has added its rugged vehicle mount computer VULCAN X to its Navis compatible computing solutions to meet communication needs for semi-or fully automated terminals utilising Navis N4 terminal operating systems. Supporting a full range of communication technologies including Bluetooth V5.0 and optional GPS, VULCAN X is additionaly compatible with Wi-Fi fast roaming to decrease the likelihood of in-field network dropouts for better quality of service.

Virtual vessel traﬃc planning

Siport 21 has developed new simulation maritime traffic software that compares different layout alternatives of waterways and port areas. Called Siflow 21, the analysis programme maximises operational efficiencies by generating a virtual representation of vessel traffic in a port or complex waterway with concurrent traffic to ensure better planning.

MARCH 2021 | 9

EQUIPMENT NEWS

AP MOLLER BACKS GREEN AMMONIA AP Moller Maersk and specialist ferry operator, DFDS, have signed a new memorandum of understanding (MoU) with Copenhagen Infrastructure Partners (CIP) to develop carbon free marine fuel and green fertiliser for the agriculture industry. The MoU outlines an intention to build a one-gigawatt (GW) electrolysis power-to-X facility in Esbjerg, in western Denmark, which will convert oﬀshore wind energy to green ammonia, for green fertiliser and marine fuel, any excess heat will be used to heat homes in the town. In confirming the project, AP Moller Maersk states, “there is a now a very real sense of urgency for the shipping industry to develop green fuel solutions as part of successfully targeting, and meeting, climate change targets.” Henriette Hallberg Thygesen, CEO, Fleet & Strategic Brands, A.P. Moller – Maersk elaborates: “We expect an ammonia dual fuel engine for container vessels

Two STS for SeaInvest Antwerp

Antwerp Container Terminal (ACOT), a member of the SEA-invest Group, has placed an order for two Liebherr ship to shore container cranes. The units will feature an outreach of 60m and operate along a 900m deep-water berth enabling ACOT to handle Super Post-Panamax (SPP) vessels with up to 22 container rows on deck.

Drone tests to maximise safety to become available in the coming years. We consider green ammonia as a promising option for marine fuels and a dual fuel engine for ammonia is under development. We are optimistic that ammonia, along with methanol and alcohol-lignin blends will be powering Maersk-vessels in the future.”

8 Maersk Line ships could soon be using carbon free marine fuel derived from converted oﬀshore wind

CIP is a Danish fund management company focused on renewable energy infrastructure including oﬀshore and onshore wind, solar energy and biomass.

GALVESTON TO INSTALL TRELLEBORG FENDERS Trelleborg’s marine and infrastructure division has been awarded a contract to supply its donut fender system, as part of the ongoing maintenance to the Galveston-Port Bolivar ferry, operated by the Texas Department of Transportation in Texas, USA. The fender systems are designed to assist the accurate and safe docking of ferries while withstanding a highly corrosive environment. The ferry service meets the needs of the local community and requires regular port maintenance to ensure it transports cargo and millions of people across the bay every year on an uninterrupted basis. Trelleborg states that its donut fender system features superior buoyancy and unsinkable foam that cannot burst or deflate. The fenders float up and down a tubular pile that freely rotates, allowing for ease of vessel alignment or redirection. They are said to be an eﬀective solution for simple berthing dolphins, guiding,

BRIEFS

The Port of Antwerp is testing deployment of autonomous drones for safety inspection and control. This is the first time the equipment is being used. The drone system will cover all of the port land and is part of the ‘Port of the Future’ platform, which aims to introduce a range of new innovations in the port environment. A full network of drones is planned for use during 2022.

Fresh approach by MPA

and turning structures and can be tailored to specific and unique requirements; with additional protection such as rubbing strips to handle ferry beltings, and can be manufactured in bright colours to improve visibility and safety. Trelleborg heavy-duty donut fenders have a durable polyurethane reinforced skin with

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

8 New heavy-duty Trelleborg donut fenders are being introduced in Galveston

continuous nylon filaments, with an internal casing that has long-lasting, low-friction bearings designed to require very little maintenance. Installation of the fenders is due to take place in the first half of 2021.

The Maryland Port Authority (MPA) is replacing much of its dray trucking fleet with new, cleaner and more eﬃcient equipment. By April 22, 2021 (Earth Day), MPA expects to have 20 trucks replaced under a programme known as “Dollars for Drays” in which truck owner-operators are oﬀered a rebate of up to 50 per cent (to a maximum of US$30,000) from the Federal Government.

Kalmar’s ECT win

Kalmar is to supply 10 new hybrid straddle carriers to Hutchison Ports for its ECT Delta Terminal at the Port of Rotterdam. Kalmar owner, Cargotec, booked the order in Q1 2021, with delivery planned for completion by the end of Q3 2021.

MARCH 2021 | 11

THEECONOMIST BEN HACKETT

PORTS ARE STRUGGLING The economics, such as they are, of the COVID-19 crisis is playing havoc at the ports as is the virus infection as well. The first half of 2020 was much as could be expected in terms of cargo volumes flowing through ports. In our innocence we thought that COVID-19 would be a short-term phenomenon that would quickly end much as it did in China and that the lockdowns would be short followed by a sharp recovery and back to normal. How wrong we were, while Asia, Australia and New Zealand shut down early and quickly closing borders, Europe blundered forwards with a lack of consistent measures and those put into place were too late and too little. The USA and Brazil took virtually no measures at all. Trade slowed dramatically in the first half of the year. The second half of the year was a surprise for all as cargo

volumes boomed as the infections and deaths rose. Europe finally decided to shut borders, again closing the doors after the horse has bolted. Fortunately, vaccines are being rolled out. In the West, wave one came to an end by late May 2020 only to return by September 2020 with a vicious second wave that is still

8 Space at many ports was an issue in 2020, with empties not returning to Asia quickly enough. An import surge is currently underway

with us as governments failed to grasp the required policies, but trade recovered. This was primarily due to consumers learning how to order on-line with the expectation of same day and

next day delivery. This drove up inventory and imports from Asia resulting in unexpected volumes of cargo surging through the ports in Europe and North America. Shipping space became an expensive commodity and additional ships were brought into service. Space at the ports also became an issue and ultimately empty containers clogged up the system and did not return to Asia. A great year for carriers with record profits. Economic stimulus packages helped industry and consumers to survive the worst of the crisis as GDP growth rates yo-yoed like a roller coaster. By the end of the year, however, economies survived, some better than others and the import surge has continued through February 2021 and likely it will be there in March. Economic growth will strengthen in 2021 as will cargo volumes.

THESTRATEGIST MIKE MUNDY

AUSTRALIA – CHINA COAL SLIP INEVITABLE Tensions between China and Australia continue and appear to be progressively negatively impacting trading arrangements. The list of products banned by China for import continues to grow: coal, barley, wine, lobster, sugar, fruit and barley trade has also fallen dramatically with the imposition of an import tariﬀ in excess of 80 per cent.. Coal is by far the biggest value trade impacted. In 2019, Australia exported A$13.7 billion worth of coal to China. This included A$9.7 billion in metallurgical coal for steel making and A$4 billion in thermal coal for electricity generation. In the period November 2019 to November 2020 inclusive, however, statistics indicate that exports of both commodity types to China fell dramatically, 85 per cent and 83 per cent for metallurgical and thermal coal respectively. China is believed to have some

extent shot itself in the foot with this policy – while China denies that a shortage of coal is responsible it is known that a number of Chinese provinces experienced black-outs in late 2020. Australian coal is calculated to only account for two per cent of coal consumption in China but it is nevertheless thought to play a significant role in maintaining a reliable coal supply to power stations in China’s southeast coastal provinces. The effective block China has put on coal trade with Australia has also led to a difficult situation with coal shipments. At one time as many as 75 coal ships were sitting off China waiting to discharge but this is believed to have reduced to just under the 50 vessels at the end of February. The number of vessels is reducing as buyers in other countries are found. Australia is expected to sell

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

more coal to existing buyers and to find new buyers for its coal largely compensating for the loss of China’s business – India and Japan being two major customers. To meet its purchasing requirements China is similarly looking further afield – it has, for example, recently started sourcing South African coal something it last did as far back as 2015. Looked at from a longer-term perspective, it is also relevant to note that as far as thermal coal is concerned then a reduction in China’s requirement from overseas is on the cards anyway, irrespective of tensions with Australia. While it diﬀers from province to province in China, in certain provinces there is a distinct emphasis on reducing reliance on coal as a means of electricity generation. Significantly, China’s eastern coastal regions will continue to close power plants over the near to medium term

with power generation capacity shifting to the western provinces and these being supplied by nearby domestic sources of coal. Equally if not more significant, it is China’s stated aim to peak its carbon emissions before 2030 and achieve net-zero by 2060. This is a major structural change which inevitably would have spelt a reduction in imported Australian thermal coal volumes. The fact that this is happening now may ultimately prove to be a good thing in terms of Australian producers identifying clients that may prove to be able to oﬀer a longer term requirement. As regards the other commodities banned by China it is not all doom and gloom there either: as one Aussie known to the writer quipped: “Mate we have never had so much lobster available and all at bargain basement prices!”

MARCH 2021 | 13

THENEWYORKER BARRY PARKER

NEW ADMINISTRATION, NEW ‘SUPER-CYCLE’ All along the East Coast, the talk is all about offshore wind. There’s a new Administration, new folks in top regulatory slots, and daily reports about a spirit of working out issues, and getting the approval processes back on track. With various commodity pundits using the word ‘super-cycle,’ the timing could not be better. Meantime, I heard talk about a 20 megawatt turbine being discussed. It’s all good. One nagging issue worth watching, and worth careful discussion and consideration by ports looking at offshore wind, are questions about what I euphemistically call ‘local content.’ Electricity purchasing is usually controlled by the individual states, and states are driving the investment dollars in what is, effectively, creating ‘Greenfield’ types of infrastructure. But contrast that with supply chains that we’ve come to know and love, where ports can freely compete with

each other based on berths, landside interfaces, availability of certain fuels, you name it, where the cargo flows respond to incentives (some operational, some financial, and sometimes a bit of both). Change does not always come easy. Oﬀshore wind is very much about ‘re-invention’ of facilities that have been neglected and

8 Oﬀshore wind is about the reinvention of supporting facilities

fallen into dis-use. When the switches are turned back on, there may be some guarantee or assurance of certain throughputs, or certain guaranteed cash flows. Yet, a longer-term view of the decade ahead should build in incentives for innovation, and

mobility of both business and capital in response to newer forms of ‘market forces’ (however defined). If one port can be massively eﬃcient or do a particular type of staging or maintenance far better than others, that great performer should be able to attract business from further up and down the coast. Likewise, if the local provider gets all jammed up, for whatever reason, neighbouring ports able to perform work with the same standards should get a piece of the action. Over time, jobs will transition from construction towards routine maintenance roles. Yet, things happen, so hopefully planners will be thinking about arrangements similar to those in place for disasters, where workers move around in response to urgent needs, a non-maritime concept, albeit one of great necessity. With some thoughtful planning, the future looks bright.

THEANALYST PETER DE LANGEN

FURTHER STEPS NEEDED FOR NEW MERGER On goes the wave of mergers of port development companies, this time between the ports of Antwerp and Zeebrugge. The merger has been long in the making, in contrast with some other cases, where the initiative came from the ports themselves (for instance the nearby Ghent and Zeeland Seaports merger into North Sea Port, and the merger of Copenhagen and Malmo Ports), this initiative has long been advocated by the Flemish government. The public owners of the port development companies, the cities of Bruges and Antwerp, initially were more hesitant. The synergies between Zeebrugge and Antwerp (ports that are around 100 km apart and have fairly limited inter-port flows), are less obvious than in the

14 | MARCH 2021

case of North Sea Ports, which really can be regarded as an integrated complex. Nevertheless, there are clear synergies, especially with regard to new energy related developments such as LNG, hydrogen and the capture, storage and use of carbon. The merger also is a demonstration of the rising importance of the energy transition for ports. While in the past talks about synergies were focused on the

8 Zeebrugge and Antwerp are merging, but new additions to the Board may be appropriate

container segment, synergies for that segment are not highlighted in the merger announcement – apart from the ‘bragging rights’ because in all likelihood, a Port of Antwerp Bruges can call itself Europe’s largest container port. Overall, this merger is likely to create value for port users and society at large, but one aspect is

still missing - a better composition of the supervisory board. This board will be made up of six local politicians from the city of Antwerp, three from Ghent and four independent members. These latter ones will be selected ‘taking the regional embeddedness into account’. The high number of politicians, as well as the stated relevance of the regional background of the independents, suggests that further steps are required to shift to a truly independent and professional board. I would even argue (in line with a wealth of studies demonstrating the value of diversity, in all its dimensions, like gender, industry background and nationality) that it would be healthy to add a couple of foreign board members with a fresh take on the new organisation.

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

THEENVIRONMENTALIST CHARLES HAINE

A BIG STEP IN THE RIGHT DIRECTION The environmental media has been awash with news that shipping giant Maersk is aiming to launch its first ‘carbon neutral’ cargo liner vessel. The good news is that this is going to be in 2023! That’s a surprise, being seven years ahead of schedule! However, please note, carbon neutral is not the same as net zero. I’m not dampening the news. For years, the cargo sector has been saying this is not possible at scale, leaving the alt fuels, electrification and batteries tennis ball in the court of the ferry and oﬀshore servicing/crew transfer court. Maersk was never going to hide in the shadows and has forged ahead with serious investment, noticeably via the Mærsk McKinney Møller Center for Zero Carbon Shipping. It has committed to achieving net-zero emissions across the business by 2050, with an interim target to reduce the carbon intensity of its shipping function by 2030. In February, it announced plans to launch a liner vessel powered by methanol, just two years from now. The new ship will be fuelled by methanol produced from bio-based sources and from e-methanol suppliers. While most methanol is produced using fossil fuels to power its production, e-methanol relies on electricity from renewable sources. Innovators like Liquid Wind are making e-methanol in Sweden using wind power and CO2 emissions from the pulp and paper industry. Sounds like a proper circular economy model. Maersk will procure the methanol from suppliers but have it verified and certified as carbon neutral in order to confirm those sustainability credentials so many companies now crave. Get those images of mega vessels sailing into Rotterdam and Antwerp out of your head. The first vessel will only have a capacity of 200 TEU and operate on an intra-regional route. Methanol’s energy content is around half that of traditional marine diesel, so distance is a constraint.

But you can’t build a jigsaw without putting a few marker pieces down on the table first. Maerk’s launch will be the first of its kind to be carbon neutral “in operation”. That’s not the same for ‘net zero’, which – if it is to be aligned with science-based targets – will need to eliminate GHG emissions from the value chain, including embodied carbon in energy and materials in construction, transportation and other connected and indirect activities. The near future of alternative fuels is going to be about flexibility as vessels sail into diﬀering jurisdictions and destinations which have plumped for investing in infrastructure and bunkering diﬀerent versions of lower carbon fuels. Maersk has committed to ensuring that the new-build

‘‘

vessels that it owns will have dual-fuel technology. Smart tech to switch is going to be key to seamless operations. ADEQUATE SUPPLY? One risk that springs to mind is ensuring an adequate supply of e-methanol. Someone has to get it to the right place, using infrastructure and piping, safely and in time for berthing. If the methanol is not sourced exclusively as the ‘e’ variety, but from a fossil-fuel source, the carbon oﬀsets purchased to ensure the carbon neutrality tag will rightly attract cries of greenwashing. I wouldn’t expect customers to be against the switch to methanol, so long as prices don’t spiral, and reliability is assured. Chemistry fans will recall that methanol is a liquid at room

Maersk’s vessel launch will be the first of its kind to be carbon neutral “in operation”

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

8 Maersk is undertaking the development of a Methanol powered vessel for liner operations…

temperature, allowing easier handling than LNG or hydrogen. It’s water soluble meaning leaks pose minimal problems while its emissions are relatively low levels in terms of sulphur, particulates and nitrogen oxide. If anyone can make it work, Maersk can. The company is embracing all sorts of fuel types in the race to zero. It’s leaning on those port-city relationships that many European hubs seem to mobilise so well. Maersk is in a consortium, teaming up with other Danish companies, such as Ørsted, DSV Panalpina logistics, DFDS ferries, and the aviation sector (SAS and the Copenhagen Airports) to develop hydrogen. They’ll produce sustainable fuels with a 10MW electrolyser, using green energy from the Bornholm oﬀshore windfarm. There are collaboration lessons galore here on the theme of cleaner and greener futures.

MARCH 2021 | 15

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ANGOLA: SPECIAL REPORT

LUANDA TENDER CONTROVERSY Serious questions are being asked about the recent tender award process for the multipurpose terminal in Luanda The recent award of the multi-purpose terminal concession in Luanda, Angola to DP World has been followed by escalating controversy. At the heart of the matter is the contention by other bidders that had the rules governing the tender process been properly followed, and not circumvented, then the result would not have been as declared. Bids for the multi-purpose terminal, intended to offer a substantial container throughput capacity together with general cargo, were submitted to the Luanda Port Company and the evaluation of the bids undertaken by a Concession Evaluation Committee (CAC), an ad hoc body created to run the tender process and reporting directly to the Ministry of Transport. It is the results as announced by CAC, and various of its actions in arriving at them, that have been called into question by two of the bidders in particular, Terminal Link, an arm of CMA CGM and International Container Terminal Services Inc (ICTSI). The bid process was comprehensively and properly prescribed with clear rules laid down on the basis of a multicriteria bid structure – with points awarded for the financial element of the bid and for the technical content, i.e. add-up the points awarded for both elements and the highest score wins. RULES BROKEN The contention, however, by Terminal Link and ICTSI is that the ‘rules of engagement’ were not properly followed and basically that alterations, adjustments and supplementary actions were taken by CAC with the aim of promoting DP World into a winning position, which had the rules been properly adhered to it would not have occupied. Terminal Link, which bid together with the Angolan company Multiparques, wrote to CAC putting on record what it sees to be damaging errors, flaws and incongruities arising from CAC’s actions, not the least of which is that in the final tender evaluation report issued by CAC DP World was ranked third but despite this was declared the winner! In evaluating the bids submitted by five companies – DP World, ICTSI, Terminal Link & MultiParques, MSC and Sifax Group – CAC issued three reports, a Preliminary Report, a Final Preliminary Report and a Final Report. In the course of this evaluation process, CAC introduced a cap on the financial offer, a step that prompted official protests from bidders. Effectively, it changed the rules of the game mid-way through the tender process – a highly unusual move – which inevitably drew formal protests from those parties which found themselves disadvantaged as a result. Also entailing a significant departure from the prescribed tender procedure was the announcement made following the issue of CAC’s Final Preliminary Report that the top three contenders, ICTSI, Terminal Link/Multiparques and DP World, would go through to the negotiation stage. The formal tender procedure clearly stated that only the top two contenders would be given this opportunity. As might be expected, this too was the source of formal complaints to CAC. On 11 November 2020 CAC issued its Final Report ranking DP World first and ICTSI second – Terminal Link decided to abandon the process. This ranking was given despite the

facts showing that the ICTSI’s financial oﬀer was considerably higher than the DPW bid and also recorded a much higher level of investment in the terminal.

8 Building controversy: the Luanda multipurpose terminal tender

LEGAL ACTION ICTSI has following this chain of events made overtures to CAC and followed this up by initiating legal action in the Supreme Court of Angola. In a recent formal statement, the company emphasises: “ICTSI believes in due process and is seeking the intervention of the Supreme Court of Angola, pleading a review of the tender evaluation in line with the documented terms and conditions of the Request for Proposals.”

‘‘

“…the ‘rules of engagement’ were not properly followed…

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

MARCH 2021 | 17

NORTH CONTINENT SUPPLY CHAIN

WINNERS AND LOSERS COVID-19 meant that 2020 was a very challenging year for north European ports, entailing a switchback ride for trade and an array of diﬀering results. The outlook remains unclear, so what does this tell us, asks leading analyst, Andrew Penfold?

8 Rotterdam remains a bell-weather for the market as a whole and has broadly recovered its market share, despite a sharp contraction in the first half of 2020

Container volumes at major North Continent ports are expected to record some 44.3m TEU in 2020, reflecting an overall drop of around 4.1 per cent over the previous year. From the current perspective this can be seen as quite a positive outcome given the depth of the crisis noted in the first half of the year. But what actually happened? Figure 1 summarises volumes for the major ports over the period since 2011. A ROUGH RIDE IN 2020 Initially, the focus of the uncertainty was on the Asian trades with the relative role of China being the key determinant of volumes. Thus, the first quarter of 2020 saw a shutdown in China as the impact of the virus accelerated with an immediate supply-side impact on supply chains – with liners introducing blank sailings. The impact only began to be manifested in Europe at the end of the first quarter with the greatest damage done to volumes at ports where Chinese volumes were most important – i.e., at Rotterdam and Hamburg. In addition, Le Havre was adversely impacted by strikes at that time.

In the next few months – through to the middle of the year – the position worsened. Although China opened-up again for exports there was a decline in demand in Europe as the various lockdowns slowed the economy. In this period, only Antwerp broadly maintained volumes with other major ports seeing demand declines of up to 20 per cent. Some signs of growth were noted in the third quarter, but container activity was sluggish, with deferred demand driving some growth but this was oﬀset by supply-chain uncertainties. The final quarter saw a strong recovery as optimism returned and pent-up demand saw a sharp recovery in overall growth and – indeed – a decline of just 4.1 per cent can be seen as positive given the position earlier in the year. More recently, renewed weakness has emerged as lockdowns once again undermine demand and increase uncertainty. UNDERLYING TRENDS ASSERTED AGAIN Overall, the impact of the crisis on 2020 container volumes was less than had been initially feared but some significant trends and diﬀerences have emerged. Some major ports have been particularly badly hit whilst for others the impact

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18 | MARCH 2021

8 Figure 1: North Continent Ports – Container Volumes in ‘000 TEU since 2011

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

NORTH CONTINENT SUPPLY CHAIN

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The position for North Continent ports in 2021 is extremely unclear, but trends in 2020 did accelerate shifts that were already underway has been minimal. Why is this? The COVID-19 crisis has underlined some trends that were already impacting the market. The process of demand concentration at the largest ports has continued with lower volume ports such as Le Havre and Bremerhaven seeing further drops in market share as lines have sought to focus activity on the largest facilities. This trend was intensified by the acceleration in the deployment of the largest vessels on the Asian trades. As shown in Figure 2, Antwerp has continued to increase its market share in the range, rising from 25 per cent in 2018 to over 27 per cent last year. This reflects several factors relating to cost and eﬃciency, but it should also be noted that China is less significant for Antwerp than for other major gateway ports. Indeed, a dependence on Far East (specifically Chinese) demand has proved to be a double-edged sword in 2020, with an over-reliance on these trades exposing vulnerability to a downturn. This will continue until alternative Asian suppliers increase volumes and substitute for an increasingly problematic reliance on China. A diversified regional cargo base is a clear advantage. The other important point to note is that Gdansk in Poland has maintained volumes despite the importance of Asian trade in its profile. The migration of Baltic feedering demand from established North Continent terminals into the Baltic is an important and continuing trend, as was the relative robustness of the Polish economy noted over 2020. Rotterdam remains a bell-weather for the market as a whole and has broadly recovered its market share despite the sharp (seven per cent) contraction noted in the first half of 2020. WHAT ABOUT TRANSSHIPMENT? At present, comprehensive data on transshipment volumes at North Continent ports is only partial. However, the general shape of development is becoming clear. On the one hand, the increased penetration of larger vessels has continued to drive greater demand for transshipment to achieve acceptable load factors. Set against this has been the ability of ports to berth these vessels despite perceived constraints with regard to both length (LOA) and draught. These vessels have been squeezed-in despite constraints on several occasions. More importantly, transshipment is most significant where the size diﬀerential between the mainline vessel and the feeder is greatest. So, transshipment is focused on the Asian trades. This reliance has amplified the impact on total volumes for those ports most dependent on Chinese trades – both negatively in the first half and in the other direction during the recovery phase. Transshipment has thus proved highly volatile during 2020, although there are exceptions where transshipment is used to link discrete deepsea trades (‘interlining’ or ‘relay’) which in contrast to ‘hub-and-spoke’ activity has been less severely impacted. Antwerp has benefited from its role in this sector. Overall, the impact of the COVID-19 pandemic on transshipment in 2020 has been broadly neutral, although one aspect of current developments – improved liner profitability – may well see increased pressures to bring feedering in-house

rather than continue the recent trend of greater dependency on third-party providers (at least in northern Europe). AND SO, WHAT DOES 2021 HOLD? The position remains extremely uncertain. With overall demand showing only a limited decline in 2020 it is clear that the macro-economic fallout from the COVID-19 crisis has yet to be realised. Demand has been maintained by government stimuli and debt has increased. It is unlikely that this will be turned oﬀ in the short term but it’s unsustainable even if the level of infection stabilises and then declines. In the short term, at least, further Chinese-led pent up demand recovery will continue. The macro-economic hit will come, but probably not until the second half of 2021. In the meantime, further demand expansion can be anticipated. There are longer term questions being asked and these are focused by the current reliance on China as the primary source of manufactured imports. The COVID-19 crisis is just one factor calling this into question and it seems likely that a broader sourcing policy will be initiated that increases the emphasis on other Asian sources and greater near-shoring. The port implications are unclear but overall volumes may grow more slowly in the medium term and until export terminals are developed in other Asian suppliers there may be slower take-up of demand for the largest vessel classes. Generally, trends in 2020 have accelerated shifts that were already underway.

8 Antwerp is less reliant on Asian trades compared to other regional ports and this is reflected in the port’s performance in 2020, with less exposure to the volatility that COVID-19 generated

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MARCH 2021 | 19

SUPPLY CHAIN EVOLUTION

SUPPLY: THE CRITICAL ISSUE The supply side of supply chains is under pressure. But according to analyst Johan-Paul Verschuure of consultancy firm the Rebel Group, it may eventually prompt more flexible and innovative solutions

8 The problems faced by the ports of Los Angeles and Long Beach present interesting lessons to be learnt

The supply side of the global transportation system rarely makes the headlines in the mainstream media. The supply side is normally assumed to be a “given” and demand issues are more newsworthy. Now, however, global supply chains are in the spotlight: freight rates have been elevated for a couple of months now and supply chains struggle. With an average value of goods in a container ranging between US$30,000-100,000, a couple of thousands dollars extra on shipping costs per container will approximate a couple of per cent to retail and component prices. This, together with concerns over delivery reliability, has placed pressure on businesses. Essentially, the jury is out as to whether it is a problem on the demand side or on the supply side and hence how quickly things will return to ‘normal’. DEMAND VERSUS PORT CAPACITY Let’s start with demand then. The ports of Los Angeles/Long Beach have been the focus of the current supply chain problems. Delays have seen over 35 container vessels waiting at anchorages and other US ports also facing similar problems. Demand recorded a very healthy bounce back in the second half of 2020, making up for shortfalls in the first half of the year. Although demand is indeed elevated, this cannot be the full story. Demand has grown by around 20 per cent at LA/ LB, but this was on the back of a slow second half of 2019. Comparing 2020 volumes to the average of the last three years, the increase in the second half of 2020 was between 10-15 per cent in most months.

20 | MARCH 2021

Looking only at full containers, the growth versus the last few years was around 10 per cent. This suggests that the extra volumes in the port were driven by repositioning of empties to Asia. Although this is still a healthy increase in full containers being transported (especially considering a shrinking economy) it’s somewhat less extreme than commentary would suggest. The focus is on full imports, as full exports were down compared to 2019 in each month since the pandemic started – a slightly less convincing sign of a return to normal economic activity as the growth of full imports only would suggest. Figures 1 and 2 provide further demand insight. Though volatility and peak loads are always complex for container terminals, utilisation rates in the ports do not seem to be in problem territory. With an overall monthly handling capacity of almost 2.3m TEU (27.23m TEU annual capacity) in San Pedro Bay under normal circumstances, utilisation levels are normally around the 60-70 per cent range. At individual terminals the problems may be larger, but overall an increase of 10-15 per cent in demand would push the port just into very busy territory, but should not lead to a rapid-build up of vessels waiting at the anchorages. Reports focus on port productivity being aﬀected by port workers and truck drivers being ill. Vaccination programmes in the ports of LA/LB have been announced following the example of Singapore and some other ports. LA/LB have also been receiving larger vessels with significantly higher consignment sizes. This would present diﬃculties in a ‘normal’ market as the terminals adjust working patters. In the current climate this has further

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

SUPPLY CHAIN EVOLUTION

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An average container is being used for a trip roughly every two months, which means an increase in transit times of over 10 per cent

Figure 1: Monthly Throughput Versus Capacity in LA/LB

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exacerbated prevailing difficulties. Finding additional capacity at terminals may, as a result, be harder in the short term. Simulation may offer some support to investigate optimal ways of dealing with a new mix of traffic. In any case, this situation is a clear reminder the container terminals must be laid out to allow flexible operations. BRAKES ON BOX SUPPLY Long inland container journey times are the other key factor. Delays due to full warehouses, waiting at anchorages and containers used as storage space are numerous. Currently delays on both the water and landside are adding several days to a round trip. An average container is being used for a trip roughly every two months, which means an increase in transit times of over 10 per cent. With the number of containers and global supply chains traditionally carefully balanced, this extra transit time is reducing the effective capacity A week’s delay for each container trip causes 10- 20 per cent more containers to be needed. With the current box fleet of around 17m boxes, this means a lot of extra containers and, in turn, an estimated requirement for the doubling of normal global box production capacity. It will take some time before a significant number of boxes can be added to the system. Also as a consequence, an excess number of boxes will be in use when journey times reduce again when the problems are solved. This will lower the return for the box owner. It also reduces the incentive to aggressively add boxes to the system in the short term. The ‘return to normal’ will take some time, with vaccinations focused on the elderly not key transport workers, and the pace of these roll-outs generally slow in the majority of countries. Some estimates suggest that the global vaccination programme will likely take until 2023. As long as lockdowns and disruptions occur in an unsynchronised way around the world, problems in the supply chains can be expected. The magnitude may slowly reduce, but normality is not likely to return in the next few months. FLEXIBILITY REQUIRED AND COMPENSATION? Shipping lines are compensated for the volatility by high freight rates. Ports should also be compensated for being flexible and the extra efforts needed. If not already in place, the next round of TSA should allow container terminals to mitigate the higher costs of coming up with solutions to deal with changing trade patterns and high utilisation rates. In addition, ports should focus even more on reducing the journey times of containers by means of incentivisation. Faster empty repositioning, progressive storage tariffs and other measures to reduce the time in transit should give a stimulus to alleviate some of the container shortage problems. Some multipurpose vessels have been chartered for transporting containers. With lower port productivity and lower service reliability, vessel journey times will increase further. In some cases, large cargo owners have decided to charter their own vessels in order not to be reliant on the major shipping lines. DHL is reported to have chartered vessels to

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start calling at a short-sea terminal in the Netherlands, with the hope of being less reliant on the large shipping operators who may favour deepsea trades over the short-sea sector. The hope is this will secure sufficient shipping capacity and reduce disruptions for DHL. In any case, an increasing number of multipurpose vessels will call at container terminals for a while. The current situation may also provide a great opportunity for digital solutions to be implemented. Tracing empty containers, finding alternative routing options and spare capacity onboard will be accomplished much more efficiently using digital solutions. The pandemic gives just the right pressure to make the global supply chains a bit more efficient via rethinking and flexible operations, finding creative capacity solutions, and coming up with smarter digital solutions.

8 An interesting question is will the moves made by certain larger shippers to charter their own vessels to circumvent available capacity problems have implications for operations over the longer term?

‘‘

The supply side adapts slowly – expect it to take a while for things to return to normal

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

MARCH 2021 | 21

UK: BREXIT CHALLENGES

NEW RULES, PAPERWORK, BARRIERS AND ROUTES A steady series of headlines makes one thing clear – BREXIT most certainly isn’t “done”! Felicity Landon considers the fallout for some of the key UK ports involved

8 Traders currently perceive it is easier to move goods into Ireland by travelling through Northern Ireland rather than directly travelling from the UK to the Republic of Ireland, but it not clear how much of this is due to BREXIT or COVID-19, or both

Those who campaigned for the UK’s departure from the European Union promised a freedom from EU red tape. The reality? Since January 1, bureaucracy has hit cross-border trade, and there is more to come. Fish, silk, trees, cheese, wine, wool, electrical hot plates, confectionary – the stories of imports and exports entangled in, or prevented entirely by, new regulations and restrictions are easy to find. For UK ports, the BREXIT drama began early with the preChristmas logjam on the way to Dover; the result of France’s COVID-19-related border closure combined with a surge of stockpiling by UK importers anxious to build inventories before the end of the transition. And now? There has been upheaval on the Irish Sea, with a shift of volumes from the UK-Dublin to Northern Ireland route and a significant expansion of services directly from France to Ireland, which cut out altogether the UK landbridge route with its hassles – perceived or real. According to Freight Transport Association Ireland (FTAI), import cargo from the UK to southern Ireland declined 50 per cent in January. At the Irish Sea ro-ro port of Holyhead, owned by Stena, volumes have been cut in half. TRAILER SPIKES IN LIVERPOOL AND HEYSHAM The ports of Liverpool and Heysham saw a spike in trailer demand from autumn 2020 and throughout the Christmas and New Year period, says Stephen Carr, Group Commercial Director, Peel Ports. Indications are that freight volumes on the Irish Sea overall fell in January year-on-year as stockpiles were used, he says – but this aﬀected central corridor routes rather than Northern Ireland journeys. “We [Peel] are seeing larger than normal volumes on the Northern Ireland route and lower volumes on the Dublin

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route. Traders perceive it is easier to move goods into Ireland by travelling through Northern Ireland rather than directly travelling from the UK to the Republic of Ireland.” He adds: “We have yet to establish whether the changes we are seeing in Irish Sea ro-ro/container services are short or long-term and whether these are caused by BREXIT or COVID-19 challenges, or a combination of both.” Peel has not seen any physical delays at the ports, Carr explains. “Prior to January 1 we, along with the shipping lines, informed customers they would not be able to wait if they had incorrect paperwork – and by turning away trucks that did not have the correct documentation, we prevented any issues. Of course, that does not mean traders did not have issues, just that they did not manifest themselves at the ports.” There has been plenty of publicity about the increase in volumes of direct ro-ro shipments between Ireland and mainland Europe. Carr notes that there were previously about three such services a week – now (at the time of writing), he says, there are 15, as well as a steadily increasing number of additional container services over the past two or three years. “Our ports are less aﬀected by this transition as they are biased more towards the unaccompanied flows, whereas much of the ‘land bridge’ volume is accompanied. One of our notions pre-BREXIT was that there would be a shift away from accompanied freight to unaccompanied – which is

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Volumes through Dover reached about 90 per cent of normal levels by the end of the first week in February For the latest news and analysis go to www.portstrategy.com/news101

UK: BREXIT CHALLENGES happening. The combination of COVID-19 and the introduction of testing of drivers at Dover has had an equally distorting effect on the market.” DOVER – CENTRE OF THE STORM The Port of Dover was at the centre of the storm when France closed its borders for two days before Christmas, leading to queues on the motorway and the diversion of 4000 trucks to Manston airfield. Once borders were reopened and COVID-19 testing was up and running, processes worked well and traffic started to clear, says Doug Bannister, Chief Executive, Port of Dover. “It comes down to our capacity through Dover – the frequency of sailings means that when there is disruption, we can clear the congestion and get back up to normal very swiftly.” When January 1 arrived, all was OK, as Bannister explains. “We saw tremendous stock build-up take place at the back end of November and through December. People were preparing for a possible no-deal BREXIT. That meant we were anticipating lighter than seasonal freight volumes in January and into February and that turned out to be the case.” In the quiet early weeks of 2021, those who were trading were getting prepared and accustomed to new processes and getting the right documents in place, he says. “We were expanding the core of well-prepared traders and, as new traders came in, we saw that core of well-prepared people growing. We have a very low percentage of people being turned away either for incorrect paperwork or because they have not got their negative COVID-19 test.” Volumes through Dover rebuilt, to reach about 90 per cent of normal levels by the end of the first week in February, he says. The ‘Kent Access Permit’ system, which requires EUbound trucks to have the right paperwork before they enter the county, is operating – but Bannister would like to see some improvements. “For example, trucks coming down the M20 are stopped at junction 8. If they are destined for the port, they are sent back to junction 7, to Manston, whether they have had a negative COVID-19 test or not. They are then fast-tracked through Manston. This means a driver might have deviated 20 miles already to get his test earlier but still has to go to Manston. There is a green lane set up on the M20, but the trucks are not granted access to it.” He would like to see a system where drivers can show their negative test at junction 8 and head straight into the green lane to the port. The overall trade imbalance means that typically 30-40 per cent of trailers are empty when they depart Dover for Calais. The port did see higher empty ratios in January, although this has been towards more usual levels, says Bannister. However, the real test for imports has yet to come. So far, the main documentation challenges have applied to exports to the EU. The UK has been applying a ‘light touch’ in terms of import regulations and inspections – but the full set of import rules and declaration processes will apply from July. CONSTANT DIALOGUE TO PREPARE FOR JULY 1 “The important thing right now is that we have a few months to go before we hit the main import rules,” says Bannister. “We are in constant dialogue with government departments. Questions really need to be answered, plans need to be put in place, we need assurances around milestones. Getting some attention on these areas will mean July 1 will happen much more smoothly than it might otherwise.” As for transit traffic, Bannister says about 40 per cent of Irish exports to mainland Europe take the land bridge route

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The full set of import rules and declaration processes will apply from July via Dover or the short straits. “The reason why they take that route is that it is the most economical and they can be in the market 14 hours after setting out from Dublin, whereas the direct [sea] routes mean a long time commitment, tying up the driver and truck, and longer getting things to market. “The other point is that if you miss a long sailing, you might be waiting 36 to 48 hours for the next. Here, we have another sailing in about an hour. Dover is popular because it offers multiple options and the closest time to market.” VOLUMES DOWN ON THE FRONT LINE The port of Holyhead, owned by Stena Line, is truly in the front line. Overall, volumes are down 50 per cent, year on year, says Simon Palmer, spokesperson. “Everyone thought post-BREXIT there would be congestion at the ports and our message was, don’t come if you don’t have your correct reference and customs declaration. However, the big issue is not the trucks that are coming to the port – it is the trucks that are not coming.” Historically, one-third of the freight carried on the Dublin route was destined for Northern Ireland. That trade is now moving via Belfast, taking advantage of the differences in paperwork. At the same time, large volumes of freight to and from the Republic have shifted to the ‘back door route’ via Belfast because it offers unfettered access, says Palmer, and Stena knows from hauliers that a lot of the trucks going into the Republic (Holyhead-Dublin) are empty. “Also, we had eight weeks of very high freight levels preChristmas. Three of the weeks we actually broke record levels on the Irish Sea – so there are still stockpiles,” states Palmer. He also emphasises that more rules are on the way. Britain had a six-month deadline to bring in the rest of the rules; it is almost a second Brexit coming in July, he warns. “There are a lot of issues coming up that have not been thought of – at present, food and groupage are the big issues.” Stena has seen volumes tumble on its Fishguard-Rosslare service – but volumes have more than doubled on its Cherbourg-Rosslare link, which bypasses the UK altogether. “Last year we ran a service every other day on that route. Now we are going every day. It was just us and Irish Ferries leaving alternate days – now you have DFDS and Brittanny Ferries operating too. There is a lot of demand for Rosslare.” However, Palmer says that transit traffic via the UK land bridge is in fact working well. “Customers are demanding direct routes because they do not have to fill in the paperwork – even though each load is costing €300-€400 more and adding five or more hours urs to the journey.” Describing the entire post-Brexit port scene, one customs consultant nsultant says: “It will get worse before it gets better. On July 1, the UK will enforce orce the new border and full declarations. ations. So far, lockdowns have also helped elped because volumes are lower than an normal. As things get back to normal and everything starts flowing,, that is when we will really find the issues.. Add in the return of passengers at a port like Dover, and if there iss a hold-up for trucks, it willl create huge congestion.”

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8 Stephen Carr, Group Commercial Director, Peel Ports

MARCH 2021 | 23

24 | MARCH 2021

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UK FREEPORTS

FREEPORTS: THE BIDS ARE IN David Mundy of legal firm BDB Pitmans discusses the main criteria, candidates and challenges associated with the selection process for operators of the 10 new UK Freeports Innovative hubs which boost global trade, attract inward investment and increase prosperity in the surrounding area by generating employment opportunities, Freeports are high on the UK Government’s agenda for a post COVID-19 and post Brexit regeneration drive. The aim is to create up to 10 Freeports across the UK, with seven in the offing for England alone. The main benefit to traders, manufacturers and processors is that Freeports will sit outside the UK’s normal customs and excise territory. Goods can be brought into the Freeport, and stored or processed, without tariffs being applied. No tariffs will be payable on goods “re-exported” out of the UK and only applied when imported into the domestic market. Responding to the government’s November 2020 bidding prospectus for Freeport status in England was a tall order. The deadline closed on 5 February. Less than three months to assemble a complex multi-party proposal with diverse interests (ports, local authorities, LEPs, businesses) with new initiatives on planning incentives, tax concessions, customs benefits, alongside financial, governance and political priorities. WINNERS ANNOUNCED SOON Successful locations will be announced in the Spring and Freeports introduced “as soon as possible”.. Why the rush? Ports are dealing with unprecedented challenges caused by Brexit alone. Stir in a world-wide pandemic disrupting supply lines, stakeholders can be forgiven for calling this policy initiative ill-timed.

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Successful locations will be announced in the Spring and Freeports introduced “as soon as possible”... However, the bids have come in. Consortia based around 30 ports and airports have responded. Bids submitted include those from the Tees Valley and the Port of Tyne, the Humber Ports, Felixstowe and Harwich, London Tilbury and Port of London, Bristol/West of England, Barrow and Workington in Cumbria and the North West. WHAT ARE THE COMPONENTS OF A WINNING BID? Top of the list is whether bids can deliver on the government’s five fundamental objectivesa. Establishing national hubs for global trade b. Regeneration and levelling up c. Creating hotbeds of innovation d. Ability to deliver eﬀectively at pace e. Inclusion of the private sector. Further influential factors include accounting for changing regional economic trends resulting from COVID-19 and the end of the Brexit transition period. Alignment with other policy initiatives, in particular “levelling up”, Industrial Strategy, English devolution and planning agendas are on the government’s “must have” list.

Perhaps fundamental for the final decision is how the Freeports will be geographically spread across the country. Whilst reserving the right to select “multiple nationally exceptional proposals from the same LEP”, the government’s leading light will be proposals focusing on the regeneration criterion -the lead objective. Priorities too are areas of deprivation and vulnerable communities. Tax sites which will benefit from the special reliefs on oﬀer, should be located in areas below national average GDP and above average national unemployment rates. A bid which acknowledges and seeks to use this opportunity to regenerate and assist communities damaged by COVID-19 may well score highly.

8 Bids featuring a strong regeneration component oﬀer the potential for a high score

HOW WILL GEOGRAPHICAL SPREAD INFLUENCE MATTERS? One area of concern is “displacement”- businesses migrating towards the successful bid areas where the customs. tax and planning breaks are available. As part of the deliverability objective bids have to explain why their choice of tax sites minimises displacement of economic activity from already deprived areas. The government will retain the power to prevent access to reliefs where there is abuse. Prospective customs sites will need to be authorised by HMRC as will businesses operating inside designated sites. Alongside displacement, distortion of competition by government intervention is also relevant. The EU State aid regime is no more, but in its place is a new domestic subsidy control regime, commitments ts made in the EU Trade and Cooperation Agreement ent and obligations under the WTO. The government ment will have these at the back of its mind. These considerations and nd the importance attached to the regeneration on objective and the need to invest post COVID-19 -19 may mean some surprise decisions in the Spring. ring. 8 David Mundy is a partner and Parliamentary agent at BDB Pitmans

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MARCH 2021 | 25

ARGENTINA: INDUSTRIAL RELATIONS

CARRIERS HOLD THE KEY IN BA The Buenos Aires port labour conundrum is still ongoing but, as Rob Ward discovers, peace at the port is now in the hands of three shipping lines

GOODWILL AND PEACE OVER CHRISTMAS Goodwill and peace seemed to break out over Christmas when José Beni, the head of the AGP, persuaded the owners of the two remaining terminals to take on all the dock labour from BACTSSA. However, the solution to keeping containerised cargo moving in Buenos Aires may not be in the hands of the stevedore unions, the authorities or even the terminal operating companies, but instead fully down to three ocean carriers. One major snag with the deal drawn up by the AGP with the BACTSSA stevedores is that it is a remedy that only works if the ESA 1 weekly service to the Far East, operated by Evergreen, Cosco Shipping and CMA CGM, stays in Puerto Nuevo. These carriers have choices to make. Switch ESA 1 to Exolgan (the Dock Sul facility 15km from downtown Puerto Nuevo, which is owned and operated by Terminal Investment Limited, which is part of MSC, along with partners PSA of Singapore) and already has 43 percent of the BA container market, or go to TecPlata (an out-of-town terminal operated by ICTSI in La Plata) or, thirdly, cancel all direct calls to Argentina and transship from either Montevideo, in Uruguay, or Rio Grande, in Brazil. Management at TecPlata has made it clear that if ESA 1 switches to its facility, which has struggled to attract cargo since opening and currently has just one regular call, stevedores will be given exactly the same wages and conditions currently held at BACTSSA. “CATCH 22” However, the problem is that many dockers do not want the extra commuting time to TecPlata. There is also a “Catch 22” situation because TecPlata needs to spend US$5 million to dredge down to 34 feet, to incorporate larger ESA 1 vessels, but it is not prepared to do so unless it gets a written commitment from the carriers. Since April 2019, TecPlata has received regular calls from Brazilian coastal carrier, Log-In Logistica and from October 2020 Evergreen have been transshipping boxes to TecPlata

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It was announced last year by the Buenos Aires Port Authority, Administracion General de Puertos (AGP), that the BACTSSA (Hutchison Port Holdings) concession at Terminal 5 in Puerto Nuevo would not be extended beyond its May 15, 2021 deadline. Consequently, the powerful trade unions representing the 600 dockers working there have been staging regular strikes, picketing and working slowly with union leaders demanding that all jobs be preserved even after the closure. The action is still ongoing. After the grandiose US$1.9 billion plans to re-configure and expand Puerto Nuevo collapsed back in March 2020 (Port Strategy April 2020, Musical chairs in BA) AGP deemed that only two terminals were required to handle the volumes through the port, which have been declining or (at best) stagnating for over a decade. The total in 2019 was 920,000TEU, with 2020 expected to be lower still. Terminales Rio de la Plata (TRP), operated by DP World, plus AP Moller’s Terminal 4 had been given the approval to continue, at least for another year, as BACTSSA was to be closed. from the main Far East ports, using this service. Consequently, the La Plata terminal operator hopes that the Taiwanese carrier will persuade its ESA 1 partners to eventually migrate south of Puerto Nuevo.

8 Three shipping lines hold the power in Buenos Aires and with it, potential to bring peace to the port

SAVING STEVEDORE JOBS Patrick Campbell, vice-president of Centro de Navegacion, which represents the interests of various shipping groups in Argentina, said that the stevedores’ jobs will be saved if the lines stay in Puerto Nuevo, at least in the short term. “With all the strikes and problems in Argentina with the economy in recession and rampant inflation (it is running at 37 per cent at the end of February 2021 but was above 40 per cent throughout most of 2020), we cannot say for sure if ESA 1 will stay here for the long term,” Campbell told Port Strategy. “The carriers could go to Exolgan or TecPlata or even find another alternative but we hope they will stay at TRP or Terminal 4. He explains further. “I think that there is enough space in the Puerto Nuevo terminals and it makes no sense to keep going with a long strike to keep BACTSSA open. There are no volume increases coming in the short term to keep a third terminal working when the volumes can easily be handled by two, as long as they take on the stevedores and the carriers continue calling there.” A shipping agent based in Buenos Aries oﬀered his view. “I believe that as long as there are no more strikes between now and May, the carriers will stay in Puerto Nuevo, probably at TRP, but if there are more strikes they might go elsewhere.”

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Keeping containerised cargo moving in Buenos Aires may not be in the hands of stevedore unions or terminal operating companies, but three ocean carriers

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MARCH 2021 | 27

CHILE: PORT DEVELOPMENT

CHILE LOOKS FOR CAPACITY AND CALM WATERS While Chile’s port decision makers ponder whether or not to push ahead with the $3.5billion Puerto Exterior (Outer Port) project, there are growing fears that all Chilean ports may become only feeder ports, as Rob Ward discovers San Antonio has been Chile’s leading port for containers for several years now and the demand – this last pandemic afflicted year excluded - is such that full capacity will be reached by 2025 or shortly after. This is why Empresa Portuaria San Antonio (EPSA) and the government are eager to move ahead with a project that would add six million TEU of capacity and service Chile’s box needs for the next 25 to 30 years. Another reason for the move to expand port and especially container facilities in San Antonio is that the new US$1.2 billion, 3.9km breakwater that goes with it will help protect the Region V port – where boxes are currently handled by DP World San Antonio (Puerto Central) and San Antonio Terminal International (STI, which is a joint venture between Stevedoring Services of America and Chilean company SAAM Puertos) – from increasing problems and shutdowns caused by high tidal waves. STORMS BATTER PORT OPERATIONS Ports along the Chilean coast are regularly battered by huge, “very violent Pacific waves” that have always caused intermittent problems for vessels berthing. However, these have rapidly increased in recent years, owing to climatic changes of global warming and polar ice melting. According to detailed studies by the University of Valparaiso, over the past 10 years the eight biggest ports in Chile have suffered 18,000 hours of closure, with San Antonio seeing 54 closures during 2020, causing chaos to ocean carriers’ schedules. Another study, the Climate Risk Atlas (Arclim), from the government states that between 2008 and 2017 there were 9097 separate closures of ports, going from 82 cases during the first year of the study up to 2330 during 2017, a “massive increase and major cause for concern”. Carolina Schmidt, the Chilean Environment Minister explains further: “According to projections made by the scientific teams that guided Arclim, the port of San Antonio is at greatest risk of suffering from the storms and waves in the medium and long term, but measures can be taken to reduce that risk.” Simon MacKenzie, President of Asonave (the Chilean National Ship Agents’ Association) agreed. “In recent years it has become a major problem along the entire coastline, but especially in San Antonio. Over the past year we even had a few car carriers and other vessels diverting from San Antonio to Valparaiso. They had been waiting several days, some of them more than a week, for the waves to reduce so they could take their slot in San Antonio but gave up in the end.

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Some experts in Chile are not convinced that Puerto Exterior will happen in the near future 28 | MARCH 2021

We desperately need some solutions to this problem and the new breakwater could be at least part of the answer.” Patricio Winkler, a leading expert on oceanography and climate effects on the ports of Chile, concluded a detailed, long-term study last year and said that the climate changes and rises in sea level could get much worse, but some effects could be mitigated. “The closures of ports generate a very high economic impact on shipowners, port concessionaires, companies that make up the logistics chain, shippers and also those who ultimately buy the products, the consumers,” said Winckler, a professor at the School of Civil Ocean Engineering at the University of Valparaiso. “San Antonio had more than 50 closures last year and many ships had to divert to Valparaiso, leading to complications and additional costs. There are short and long term strategies that can be adopted to mitigate the effects of wave swell,” he added. The ocean expert cited “better storm surge warning systems” and better approach manoeuvres for the short term and “improved dredging and extension of existing breakwaters” in the long term.

8 There is interest in Chile spending US$3.5 billion to develop six million TEU per annum of new capacity at San Antonio, but the US$15 billion of COVID-19 costs represent a potential brake on development

DOUBTS LINGER OVER PUERTO EXTERIOR Some experts in Chile are not convinced that Puerto Exterior will happen in the near future, partly because of the cost and partly because the struggling Chilean economy means demand has greatly reduced in recent years. Also, the development of Chancay in Peru, is a potential future hub port for the WCSA, and Callao already is.

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CHILE: PORT DEVELOPMENT

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Chile’s ports have been hit hard by bad weather and the economic climate resulting from COVID-19 during 2020 Ricardo Sanchez, Senior Economic Affairs Officer for the Integration of International Trade and Integration Division of the United Nations Economic Commission for Latin America and the Caribbean says that the time might not be propitious to move forward with Puerto Exterior yet. “It was very much at the forefront of everyone’s thoughts when the economy was going well, under the governments of Michelle Bachelet [March 2014 to 2018 and March 2006 to 2010], when annual GDP growth rates were often at six per cent per annum, but we have not been doing so well in recent years and so I do not think it is a priority now, especially now Chile has to pay off extra COVID-19 costs.” Sanchez argues that the US$15 billion spent on the economy due to COVI-19 needs to be paid back so spending US$3.5 billion on a new port, or even US$1.3 billion on a new breakwater, however vital for the future infrastructure of the country, will not sit comfortably with the electorate. At the same time, no Chilean politician wants to be the one to say no to the massive, much-needed infrastructure project, which would also create thousands of jobs. Despite some reservations once regulatory procedures are passed, preliminary in-filling of the breakwater could begin before the end of this year. MacKenzie, who is also an executive for Valparaiso based shipping group Ian Taylor Cia, is a supporter of both Puerto Exterior and the expansion of facilities in Valparaiso but warns that the threat from Peru is real. “What is coming into our vision in Peru is Cosco Shipping who are building Chancay, a new port north of Callao,” MacKenzie told Port Strategy. “My feeling is that Chancay [Cosco has a 60% share and Peruvian partner Volcan has the rest] could become a hub port for WCSA and Chile, both San Antonio, Valparaiso and all the other Chilean ports will be feedered from Chancay. Once that is fully operational we will likely be partly or wholly serviced from Peru. Having said that shipping lines like to advertise the fact that they are serving countries direct,” he adds. However, MacKenzie also acknowledged the role to be played by the liner shipping community. “If we turn into a feeder port it will not be due to the decisions of the Chilean port community and terminals, it will be on the part of the carriers. If they can save money by feedering they will do so. We have to hope that if they save a lot they will pass on some of the savings to the importers and the exporters.”

GEO-POLITICS CANNOT BE IGNORED Several times in the past, Chile has been to war with Peru and after the War of the Pacific – from 1879 to 1884 - the strategic port of Arica, in the far north, was taken and eventually ceded to Chile in 1929. The idea of Chile only being served by feeder vessels will not go down well in Santiago. “From time to time geo-politics becomes very key in South America,” said one veteran ports and shipping consultant based in Valparaiso. “In Chile it will be a question of pride if they lost most of their direct calls to Peru, but I think there is suﬃcient demand from Santiago and the surrounding regions that direct calls will continue for some time to come.” Amongst container and general cargo sectors in Region V, the terminal making best progress over the past COVID-19aﬄicted year has been DP World San Antonio. It moved ahead of Terminal Pacifico Sur (TPS) of Valparaiso, for the first time, cementing the continuing decline of the historical port city which also houses various government ministries. According to the two port authorities, DP World moved 8.16 million tons of cargo during 2020, with TPS handling 7.13 million tons. STI led the way, though, with 10.4 million tons. It seems that things could get even worse for Valparaiso – located 75 miles northwest of the capital Santiago - over the next year or so as a tender for a new short-term container concession, at the TCVAL (Terminal 2) is attracting controversy and little interest from domestic and international investors and terminal operators. STI has agreed to spend $46.6 million on equipment and infrastructure to acquire a five-year concession extension to its terminal until 2030, while boosting capacity from 1.2 million TEU to 1.6 million TEU.

8 Chile’s container ports endured a challenging 2020. Valparaiso saw full exports and imports drop in the January to end of September 2020 period, with loaded imports down by a significant 37.8 per cent

San Antonio leads the way In terms of the perennial battle for containerised cargo in Chile the number one port, San Antonio, continued to pull away from Valparaiso, in second place, during COVID-19 dominated 2020. During the first nine months of 2020 (the latest figures available from the United Nations Economic Commission for Latin America and the Caribbean, or ECLAC) San

Antonio handled 1.12million TEU, which was down 12.7 percent compared to the same period of 2019, while Valparaiso handled 530,608TEU, a large decrease of 23.9 per cent. Valparaiso only saw full export boxes drop 3.2 per cent to 169,310TEU during those first three quarters of 2020, but import containers fell by a massive 37.8 per cent to 165,383TEU. Meanwhile, in San Antonio, full exports rose

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10.4 per cent, to 293,998TEU and full imports were down by 1.8 per cent to 326,609TEU. The third placed port for containers in Chile was Talcahuano, in the south of the country. It recorded 219,143TEU, a decrease of 27.1 per cent and was followed by Iquique, in the north, which handled 151,440TEU from January to the end of September 2020, reflecting a drop of 24.5 per cent.

MARCH 2021 | 29

PERU: PORT DEVELOPMENT

CALLAO: TWO SPEED EXPANSION

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Port of Callao has two global terminal operators, with both looking to raise capacity. AJ Keyes looks at the diﬀerent plans and what the short-term holds for Peru’s largest container port

The Port of Callao is eﬀectively a proxy for the Peruvian economy because the overwhelming majority of volumes are directly connected to the local Peruvian market, and in particular the Lima capital region and hinterland. The port continues to handle around 90 per cent of Peru’s container market, with the balance moved via Paita in the north of the country. Steve Wray, Associate Director, WSP Maritime Advisory, underlines the importance of the port. “Callao is by far the dominant container port in Peru and with the existing infrastructure in place is the premier port from a cargo catchment point of view. It serves the metropolitan area of Lima-Callao, which has a population of 9.9 million inhabitants and is where the national concentration of distribution centres are located. This competitive position is not going to change,” he explains. The Lima region accounts for an estimated 51 per cent of Peru’s GDP, according to Proinversion, Peru’s Agency for the Promotion of Private Investment. The region, which includes Callao, has recorded GDP growth of 11 per cent per annum since 2010, far exceeding the national average (of five per cent per annum). In terms of the wider regional context, Peru is the second largest market for container handling on the West Coast of South America (WCSA) after Chile. History shows strong container volume growth with an average increase of 9.7 per cent per annum between 2000 and 2019. In terms of numbers, a rise in annual volume from 462,000TEU to almost 2.68 million TEU in 2019. PROTECTED FROM COVID-19 The country has been largely protected from the COVID-19 pandemic with the 2020 container volume estimated to be in the order of 2.64 million TEU, a small downturn compared to 2019 performance. Informed sources particularly point out in this context: “You have to remember that Peru’s exports consist of a lot of

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8 DP World needs to expand in Callao, and quickly, with container throughput growing by 13.7 per cent annually since 2010

foodstuffs and such products are always going to be needed, irrespective of whether there is a pandemic, in key export markets like North America and Europe.” This explanation is supported by data from Autoridad Portuaria Nacional (APN), Peru’s National Port Authority. As Figure 1 shows, the volumes of loaded export containers projected for 2020 highlights a growth in volumes over 2018 and 2019 and this is irrespective of the impact of COVID-19. The largest single export classification is reefers, with avocados, grapes, citrus, frozen seafood and cranberries all known to be larger-volume items and required irrespective of a global pandemic, although the need to gain access to empty units is always going to be a logistical factor. STRONG GROWTH AT CALLAO The introduction of the two terminal operators in Callao has been a key driver behind container traffic growth at the port. DPW Callao operates the Muelle Sur (South) terminal, while APM Terminals Callao is based at the Muelle Norte (North) facility. Collectively, these two terminals have seen growth of 6.2per cent per annum between 2010 and 2019, as throughput increased from 1.35 million TEU to 2.31 million TEU over this period. Given the importance of Callao to national demand it is unsurprising that the impact of COVID-19 has been small, reducing the average growth to 5.2 per cent per annum, according to projected data from APN. N. Yet there is a difference between the he performance of the two facilities, as Wray explains. ins. “The DP World terminal has generated strong g increases since 2010, with an average of 13.7 growth per annum, whereas at APM Terminal’s al’s multipurpose facility the growth was a lower wer 0.2 per cent per annum.” In 2006, DP World Callao signed d a 30-year erminal, with concession to operate the South Terminal, operations commencing by the end off 2010. Growth

8 Steve Wray, Associate Director, WSP Maritime Advisory

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PERU: PORT DEVELOPMENT

in volumes meant that 1.42 million TEU passed through the facility during 2014 and while this level of activity has been largely maintained, there is a need for expansion and investment to take advantage of future growth potential. Current plans will see an expansion to 2.1 million TEU, as part of a total projected investment in this facility over the 30-year concession in the order of US$615 million. The second facility at the port, the North Terminal, is operated by APM Terminals Callao under a 30-year concession, which it has held since 2011. The concessionaire is a consortium formed by APM Terminals (51 per cent) and MSC (49 per cent). Unlike at the South Terminal, the North Terminal has struggled to generate sizeable improvements in overall demand, with the 2010 total of 910,79 TEU not surpassed until 2016 when 915,741TEU was recorded. For 2019, 927,700TEU was recorded, although this was down on both 2017 and 2018 when over 1 million TEU was handled. During the concession, APM Terminals is required to invest around US$885 million to modernise the infrastructure, with each stage of the process triggered by a throughout threshold being reached, to at least 1.5 million TEU per annum. However, with the terminal operator and port authority still reportedly negotiating an addendum to the existing concession, the future development of the facility is not fully known. Yet with only a limited amount of land and space at the terminal, there may be a need in the future to consider displacing some non-container activity, such as bulks, to make space for box demand. OFFERING ADDED LOGISTICS INCENTIVES DP World has expanded into a fully-integrated maritime and logistics operation that goes beyond the gates of the terminal in Callao. In 2018, the company acquired Cosmos Agencia Maritima (CAM) for US$316 million, one of the larger logistics agencies in Latin America and which owned fully integrated logistics services providers, Neptunia and Triton Transport. CAM also retains a 50 per cent stake in the Port of Paita (see panel). The value of CAM to DP World is that it gave immediate

and established access to freight services, transport, storage and distribution at the very centre of the logistics providers in the Lima region in line with a key corporate strategic objective. “The acquisition supports our recent strategy of extending our core business into complementary sectors,” said Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World, at the time of the acquisition. By comparison, AP Moller has inland service facilities in six locations across Peru, at Cajamarquilla, Callao, Chao, Paita, Sullana and Villa el Salvador. A fleet of almost 100 vehicles and 70 trailers provides transport services, leveraging regional logistics knowledge.

8 Figure 1: Summary of Largest Container Exports from Peru, by TEU volumes, 2018 to 2020F H HQTGECUV

IS CHANCAY A THREAT? Callao could be joined by a new port competing for Peru’s hinterlands. In mid-2019, Cosco Shipping Ports Limited and Peruvian mining company Volcan signed an agreement to build the $3bn Chancay Multipurpose Port Terminal, located 80km to the north of Callao. Despite a target date for initial operations of 2020, construction is yet to start. So, is it a threat to Callao? Wray does not think so. “Even with the support of Cosco Shipping Ports, the Chancay development is behind its original schedule and has major obstacles to overcome. For example, for serving imports, almost all warehousing and logistics infrastructure is in the Callao and Lurin areas, thereby dictating that Callao will always be the dominant import location, representing the lowest cost option and most eﬃcient logistics route.” The other major port in Peru is Paita to the north, but it is not a competitor to Callao, as discussed in the box story.

Paita – Northern Peru export focus Paita is a key export gateway for northern agri-business and future growth in shipping vegetables, crops and foodstuﬀs is expected to be supported through a large number of irrigation projects in Paita’s hinterland. The port serves the Piura region and is just 56km from the city of Piura, which has a population of around 400,000 people. Other areas within Paita’s catchment are Amazonas, Cajamarca, Lambyeque, Tumbes and San Martin. Terminales Portuarios Euroandinos – Paita SA (TPE-Paita) has been operating the

container terminal under a 30-year concession since 2009. It is owned by a joint-venture consortium consisting of Peruvian Cosmos Agencia Maritima (part of DP World) and Tertir – Terminais de Portugal SA (owned by Yilport Holding). Containers are the dominant cargo activity, representing around 65 per cent of total port throughput. Within this share, exports account for a larger 60 per cent share compared to imports. This is not surprising, based on the export of foodstuﬀs, fruit and agriculture from the region, especially in reefer units.

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The Muelle Espigon terminal was expanded in 2014 and further investment is planned beyond the current throughput levels of 300,000TEU per annum. “TPE is gearing up to meet future growth expectations,” explains Wray, adding that there is a modernisation plan that involves development of a second berth with dredging to allow larger vessels. “Paita has a unique position, it is the most competitive port to meet the export demands of the agri-business coming out of the North of Peru and it will retain this specialist niche moving forward,” he underlines.

MARCH 2021 | 31

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Callao is the dominant container port in Peru and this position is not going to change in the future

TRANSLOADING: PACIFIC NORTH WEST

TRANSLOADING TAKES OFF

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High-quality transloading facilities are a key requirement to support container port demand in North America. AJ Keyes assesses the implications of new funding for this infrastructure at Prince Rupert

Shaun Stevenson, President and CEO, Prince Rupert Port Authority, describes the securing of funding from the government of British Columbia to improve and expand infrastructure at the Ridley Island Export Logistics Platform as a “pivotal project.” On the basis of the port being able to enhance and improve transloading facilities to support import and export cargo operations, then he is absolutely correct. WHAT IS TRANSLOADING? Transloading is the process of transferring cargo between diﬀerent modes of transport – typically from an ISO-rated international container to a domestic transport unit. A transload facility is the conduit linking say a 53ft domestic truck trailer or unit with a 40ft-45ft international shipping container. So, for exports, the goods arrive in the domestic 53ft unit and are then packaged into the marine container, with the process in reverse for imports. As international shipping continues to grow and scale up, many ports are increasingly acting as transloading hubs and this is a major driver in the supply chains of western Canada. For this activity, the Port of Prince Rupert is to receive C$25 million (US$19.5 million) from the government of British Columbia to increase the port’s transloading capacity from 75,000TEU to 400,000 TEU per annum. The project includes new and updated rail tracks and dedicated roads to and from the Fairview Container Terminal as well as new cargohandling equipment. SAVINGS FOR BENEFICIAL CARGO OWNERS The importance of transloading to Prince Rupert (and other ports) cannot be underestimated. According to the Transload

32 | MARCH 2021

8 The new AP Moller/Canadian Pacific Railroad Vancouver facility will provide shippers with more control of their cargo via transloading from ocean containers into 53-ft domestic trailers and simultaneously drive demand through the port

Distribution Association of North America (TDANA), an established organisation consisting of up to 6,000 industry participants, “all major commodity groups are involved in the transloading process.” This includes agriculture, forest products, building material, machinery/mining, chemicals, raw materials, food and consumer products. This is a position recognised by Transport Canada, the federal authority responsible for transportation policies and programmes. “Two 53ft domestic containers contain the same freight as three 40ft containers,” the body stated in a recent study entitled, “Pacific Coast Container Terminal Study (14837E).” The Study further quantifies what this means to beneficial cargo owners: “Although importers pay more for transloading, they save about 30 per cent on the rail freight overall,” it notes. For Prince Rupert, exports of forest products is clearly one of the major cargo groupings that the new capacity will be targeting. This is endorsed by Transport Canada: “Many of the 37 pulp and paper mills in British Columbia, Alberta and Saskatchewan ship bales and rolls by box car to warehouses in the Vancouver area,” the Study notes, reflecting the fact that the challenge for Prince Rupert covers cargo redirection and market share issues. Based on available data from ports, Transport Canada, TTX Corp, TDANA and WSP, the level of transloading is estimated to be considerably higher in US ports than it is in British Columbia. For example, the proportion of containers shipped via transloading is now almost 40 per cent through SeattleTacoma but under 15 per cent via the Pacific Gateway ports of Prince Rupert and Vancouver. This reality highlights the importance of bulks and neo-bulks to the North West region generally.

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

TRANSLOADING: PACIFIC NORTH WEST

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Potential extra volumes, tapping into key shipper markets and helping ease supply-chain congestion are all reasons why increased transload capacity appeals to the Port of Prince Rupert

BENEFITTING FROM THE RIGHT STRATEGY With the availability of relatively low-cost land and labour, Prince Rupert represents a good option for transloading. However, it is imperative that the port continues to further increase its capacity and services because such investment is ongoing in Vancouver and the port is benefitting commensurately. In Q3 2020, Canadian Pacific Railroad (CPR) confirmed that it had signed a new deal with AP Moller Maersk in which the railroad operator will move the shipping line’s containers through Vancouver (and Montreal) with eﬀect from the start of March 2021. This announcement followed confirmation that the two companies are building and operating a transload and distribution facility through CPR’s existing Vancouver terminal. When outlining the arrangement, Keith Creel, President and CEO, CPR, referenced the importance of providing shippers with more control of their cargo via transloading from ocean containers into 53-ft domestic trailers and, ultimately, faster transits. He concluded that the new deal involves “a strong relationship developing” with Maersk Line. Prince Rupert needs to be in a position whereby it can look to target, for example, export cargoes being shipped from British Columbia - localised commodities like forest products but also agricultural cargoes that are being shipped to Asia. However, the port can only do this with additional transloading capacity while at the same time there is a need to ensure all stakeholders in the logistics process participate eﬀectively. BY NUMBERS – POSITION OF THE PACIFIC GATEWAY PORTS In 2020, Prince Rupert’s loaded export containers totalled 193,640TEU (just 16.9 per cent of total throughput), which compares to 643,575TEU of loaded imports (or 56.4 per cent of the total). Empty units make up the remainder. It is important to note that Prince Rupert is primarily an intermodal port, with around 85-90 per cent of loaded imports moving immediately to rail for transport to key markets such as the US Midwest and Central Canada. Accordingly, the demand for transloading of imports is less. However, the position for loaded exports is where significant potential exists, especially if the make-up of trade in Prince Rupert is compared to the port’s fellow Pacific Gateway port, Vancouver. In 2020, the Port of Vancouver handled almost 1.80 million TEU of loaded import containers (a 63.3 per cent share) and over 1.04 million TEU of loaded export units (representing 36.7 per cent of the overall port total). INCENTIVES FOR PRINCE RUPERT It is clear that other ports are enjoying higher loaded export

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Even allowing for the fact that Seattle-Tacoma serves the US domestic trades to/from Alaska/Hawaii, which generates demand for the process, there is still scope for expansion in this sector for the Canadian ports.

volumes than in Prince Rupert, with the greater availability of transloading facilities an influential factor. However, if Prince Rupert continues to expand its capacity to oﬀer this service then it will put additional competitive pressure on the Port of Vancouver. While transloading in Vancouver has achieved roughly the same overall degree of penetration as Prince Rupert its numbers in volume terms and in conjunction with export activity are much greater. There is clear potential at Prince Rupert to increase the export loads and the additional transloading capacity is an important step in realising this objective. It is also important to take account of the wider picture. The recent surge of Asian imports into the West Coast of North America has caused congestion at most ports and across supply chain networks. This is resulting in a shortage of international shipping containers due to the additional time it is taking for the containers to leave the port terminals (as a result of congestion). A further impact is the time it takes to get the empty containers back for shipment to Asia for the next load. So, in addition to targeting more export loads, the ability to utilise more domestic 53-ft units (especially closer to the port of entry/exit) could, potentially, help ease periods of congestion, which currently are manifest in North America.

8 Prince Rupert is gaining more, much needed, transloading capacity – especially for exports

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Currently, loaded exports through Prince Rupert are much lower than at Vancouver and a lack of transloading facilities is a contributing factor. However, with continued expansion, the position could change

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MARCH 2021 | 33

OPTIMISING DRAYAGE

THREE SOLUTIONS FOR DRAYAGE

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Adrian Weiler, Dr. Eva Savelsberg and Matthew Wittemeier of INFORM review three of the common challenges seen in port and terminal drayage operations and outline available optimisation solutions

Real-time truck fleet dispatch when supported by artificial intelligence (AI) can master challenges in port and terminal drayage operations while providing significant eﬃciency improvements, cost reductions and environmental improvements. This article assesses three key challenges and solutions for the industry. LONG AND UNPREDICTABLE GATE QUEUING It is no secret in the maritime industry that long truck queue times are regularly encountered - manual gate processes and peak traﬃc at certain times of the day (e.g., morning queuing) are two of many factors that lead to long and unpredictable gate-queuing times. In the Truck Drayage Productivity Guide, published by The National Academies Press, it notes that the average delay across the year at ports in the USA is 20 minutes, but during peak periods, such as morning queues, the delays can easily extend for hours. It estimates that these delays cost ports between US$67-83 million (€55-68 million) nationwide annually. In addition, the sustainability impact from vehicles idling for, on average, 20 minutes per drayage call adds up quickly. A study from the Journal of the Air & Waste Management Association finds that idle emissions from diesel engines averaged 4500g/hr. On the basis of an estimated 60 million drayage calls per year in the USA, an average delay of 20 minutes equates to 90,000 tons of CO2 produced annually that could be avoided.

34 | MARCH 2021

8 INFORM believes that AI and optimisation software can streamline terminal drayage operations, saving money and reducing harmful emissions

Solution: Time Slot and Gate Management Truck fleet dispatch systems come equipped with a comprehensive time slot management and gate management feature allowing dispatch planners to streamline drayage operations. By considering the availability of personnel, load availability, loading equipment capacity restrictions, as well as other restrictions, the agile optimisation software produces an optimised time slot plan during both preliminary planning and real-time operations, considering ad-hoc bookings and other unforeseen circumstances, while adjusting as needed. EXTRA DRAYAGE TRIPS, “DRY RUNS” Poor communication between dispatchers, drivers and terminals leads to increased drayage moves within the port complex. While the time delays can vary substantially, setting a delay variable of two hours per error results in a cost of over US$1.2 million (€1.0 million) annually across the USA. The flow-on eﬀects include missed customer appointments and environmental impacts resulting from additional mileage driven and idling times. If an error rate of 0.1 per cent or one in every 1,000 drayage calls is assumed, this equals 540 tons of potentially avoidable CO2 production annually. Solution: Automated Communication and Online Data Sharing Interfacing with a port/terminal’s Terminal Operations System

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OPTIMISING DRAYAGE (TOS), the use of GPS telematics systems enables automated, eﬃcient communication between drivers and the system, reducing pressure on the planner significantly. In addition, processed data can be presented via online portals that are accessible anywhere, anytime. CHASSIS LOGISTICS DELAYS Chassis availability, particularly in USA markets, is one of the most debated topics in drayage year-on-year and for a good reason. Congestion at chassis yards, delays due to maintenance, poor interchangeability and time lost due to locating and hooking-up chassis are major sources of pain for drayage and terminal operators alike. It is estimated that, on average, 12 minutes per drayage call is wasted when a driver must obtain a chassis and this costs the industry between US$2-4 million (€1.6-3.3 million) annually nationwide. Solution: Availability Checks on Booking and Preliminary Transport Capacity Planning Even as orders are booked, the system takes demand and the availability of loading slots as well as transport capacities, such as chassis, into account. The plans, updated in realtime, enable dispatchers to negotiate a suitable delivery time while speaking to the customer. Based on the known availability of drivers and vehicles, as well as existing orders, the software calculates an optimised delivery plan for the following days. Planners can make changes, assign priorities to orders, and choose whether the emphasis is to be on cost eﬃciency or service quality.

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Optimisation can enhance delivery plans and focus emphasis on cost or service efficiency INFORM’S BIGGER PICTURE With a broad range of standalone and add-on software modules, INFORM’s blend of algorithmic-based software expertise, industry experience and big world thinking targets delivery of value for customers. For example, Syncrotess, for truck fleet dispatch, optimises transport scheduling and time slot management. This INFORM software product offers truck fleet dispatchers the capability to have the price and service quality factors work in their favour by providing effective support in preliminary tactical planning, availability checks, time slot management, real-time scheduling, and real-time optimisation. In each case, the system uses the best optimisation algorithms available for the area concerned. 8 INFORM believes that AI and optimisation software can streamline terminal drayage operations, saving money and reducing harmful emissions. Based in Aachen, Germany, the company has been in the optimisation business for over 50 years and serves a wide span of logistics industries, including ports, maritime, and intermodal terminals.

EVOLVING AUTOMATION ECOSYSTEMS AI and OCR are more relevant than ever in access and area control operations. That’s why we are dedicated to build ever better, more efficient, and easy-to-integrate solutions that automate our customers’ processes. See how we can help you at visy.fi

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Expand your vision MARCH 2021 | 35

CONTAINER HANDLING: YARD GANTRIES

DESIGN OPTIONS STACK-UP New design options continue to be added for RTGs and RMGs catering for diverse requirements. John Bensalhia investigates innovative product initiatives from leading manufacturers

8 Increased automation is a key driver for the multi-phase order for new units for Antwerp

“Rubber Tyred Gantries (RTGs) and Rail Mounted Gantries (RMGs) bring increased efficiency and stacking density to yard stacking operations when compared with straddle or reachstacker operations,” says Trevor O’Donoghue, Marketing Manager, Liebherr Container Cranes Ltd. Marko Rasinen, Product Manager, RTGs, Kalmar, further notes that both solutions have their own unique features, benefits and disadvantages. “Overall, RMGs and RTGs allow customers to have a high stacking density without losing efficiency when stacking and horizontal transportation solutions are matched to the needs of the terminal. Both solutions are also available fully electric and help customers operate eco-efficiently.” Rasinen says that the biggest benefit of RTGs is flexibility. Being rubber tyred, RTGs can be moved in the terminal to stacking areas where the operational requirements are paramount. He adds: “RTGs can be built with multiple power options of diesel power, hybrid and fully electric. Further, the purchase price of an RTG is lower than an RMG and it requires significantly less investment in terminal infrastructure.” “RMGs are usually equipped with higher performance parametres for hoisting, trolley and gantry speeds, which offers higher productivities,” says Mikko Asikainen, Product Manager, RMGs, Kalmar. “The portal of an RMG can be built wider than an RTG, which is usually a maximum of 10 container rows wide. This makes an RMG a suitable machine, for example, for rail yard operation, where the crane can be built over multiple rail tracks and stacking rows,” he notes. POWER PROVISION In terms of efficiency and power levels for RMGs and RTGs, O’Donoghue says it depends on crane size and operation. “Some RMGs have faster hoist and gantry speeds than RTGs, which, in turn, requires higher input power. Depending on stack width, trolley speeds on RMG’s can also be higher.” Rasinen explains that when it comes to diesel-powered

36 | MARCH 2021

equipment, much has been done to improve the energy efficiency of the cranes, introducing battery hybrid RTGs as well as RTGs with lower peak power requirements. “Kalmar is investing heavily in optimising RTG control software to minimise the energy loss while controlling the movements of the crane,” he points out. “A good example of this is the Kalmar SmartPower RTG, equipped with an intelligent power management system, enabling a considerably smaller diesel engine and thus much lower energy consumption and emissions than with traditional RTGs.” Kalmar’s selection of process automation solutions helps move containers more efficiently and with smaller environmental impact. “Solutions of the SmartPort product family are able to track containers and container handling equipment all the way from quay to the gate. Productivity, equipment utilisation rate and eco-efficiency are increased by optimising travel paths and waiting times by triggering dispatching and job instructions based on the location of container handling equipment.” “Typically, all yard cranes are designed for a lifetime of millions of container moves in accordance with relevant classifications, and this long lifetime is the main reasoning behind the ‘value for money’ aspect.” says Asikainen. LONGEVITY AND VALUE – BUT SAFETY FIRST O’Donoghue explains that Liebherr yard stacking cranes are designed to deliver, “exceptional lifetime costs” to customers. The Liebherr drive system is based on maximum torque requirements not the average, so the machines are designed for longevity, with minimum maintenance and parts requirements. In addition, simultaneous drive motion brings increased efficiency in container handling, allowing increased throughput. For Kalmar, the long lifetime of yard cranes is the main rationale supporting its value for money aims. “We place

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CONTAINER HANDLING: YARD GANTRIES special attention on the reliability of the design to minimise the downtime and need for unplanned spare part replacement needs,” says Asikainen. “This allows customers to save in operational costs during the lifetime of the equipment. Kalmar’s yard crane offering is available as a fully electric option. This can reduce the need for maintenance and thus result in lower cost of ownership compared to other options.” Modern RMGs and RTGs are designed with safety and ease of use in mind. “Liebherr yard cranes come with many safety features,” explains O’Donoghue. “The utilisation of 3D profiling and laser scanners along with state-of-the-art positioning technologies mean safety features that prevent collisions with the stack, obstacles and with other cranes and equipment. The use of remote control and automation can remove the human element from the operational area, bringing increased safety. Controlled access to the crane and to operation of the crane adds an additional layer of safety.” Kalmar’s yard stacking equipment has many features available to help the operator be more efficient without compromising on safety. “Everything starts from the ergonomics of the operator’s working environment, which makes a long work shift as comfortable as possible by giving good visibility to all the relevant aspects needed for operating the crane safely,” says Asikainen. “Plus,” he says, “there are many assisting systems available to help the operator control the crane in a more efficient and safe manner. We offer driving aids like SmartRail, collision avoidance systems (SmartProfile) and gantry collision avoidance, camera systems (SmartView+) giving better visibility and improved lighting systems.” Asikainen says that introducing automation provides the opportunity to increase safety by reducing the number of people who need to be physically present in the yard. “Controlling the cranes via a remote console means that operators can be taken out of the cabin and into a safer, more comfortable and more ergonomic working environment without compromising crane performance.” “Our AutoRTG system is available with various levels of automation and supports the typical horizontal transport modes, such as terminal tractors and external road trucks, as well as straddle carriers,” adds Rasinen. “Kalmar can deliver new equipment that is fully automation ready and can also implement automation for RTGs on both Kalmar and thirdparty cranes as a retrofit project.” Kalmar is investing in developing electric, diesel-electric

and hybrid solutions for heavy cargo-handling equipment, with all cranes available as fully electric for the customers who are able to feed the cranes from the grid, and hybrid and latest engine technologies for the customers who cannot use the power grid. “All Kalmar RMGs are electric with deceleration energy harvesting as standard feature,” says Asikainen. “Together with modern electric system components and energy-conscious control system the energy consumption is minimised.”

8 Today’s RMGs and RTGs oﬀer extensive design options and reduced maintenance strengthening the value for money argument

PROMISING OUTLOOK The crane business is not totally immune to COVID-19, but manufacturers remain upbeat and positive. “We think 2021 is looking promising, but many customers are still, of course, rather careful when it comes to new terminal development projects,” says Rasinen. He also notes: “The increase in automation is the future for terminals while they continuously improve the efficiency, safety and sustainability of operations. Equally, the importance of new eco-efficient technologies is increasing.” While COVID-19 may delay some projects due to a cautious business environment, O’Donoghue feels a sense of optimism for the future exists. “Global container traffic is running at a high level and forecasts are for significant global GDP growth in 2021/2022,” he notes.

New orders on the move In December 2020, a 34-strong fleet order of automated Konecranes Gottwald ARMG’s for DP World Antwerp Gateway was confirmed. The units will be delivered in phases, with the first batch due for delivery in Q2 2022, concluding with the final delivery in 2026. Automation expansion was the motivation for choosing the units. The terminal’s current ASC (Automation Systems & Controls) concept is to be expanded, with the new ASC system order following Gottwald’s ARMG design concept (including a rigid guiding beam for container load control). The new ARMG’s are capable of stacking containers one-over-six, over nine container rows.

The move to mains power connections and hybrid technologies eliminates/ reduces emissions. “Liebherr drive systems are specifically designed to bring further benefits in terms of fuel consumption,” says O’Donoghue. “(Electric) ERTGs and RMGs allow regenerated electricity to be supplied back to the grid, with the Liebherr Liduro Energy Storage able to store and reuse energy locally. The elimination of hydraulics on Liebherr yard cranes brings further environmental benefits and reduced maintenance.” Konecranes Hybrid RTGs run on electrical power from a battery and diesel generator

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

with power from the battery during normal use and parallel power drawn from battery and generator during peak use. In December 2020, US railroad operator, Norfolk Southern Corporation confirmed two units (due for delivery in December 2021) will be used at the Landers Yard intermodal terminal, Chicago, with a further three for the Inman Yard intermodal terminal in Atlanta. Also, ZPMC has confirmed two new rail-mounted RMGs for Vostochnaya Stevedoring Company, as part of a doubling of container area capacity. The new cranes serve 14-rows of container stacks and have a six-tier capacity.

MARCH 2021 | 37

DOCKING AND MOORING

REFINING VESSEL ARRIVAL Nick Labrosse, Sales & Marketing Director of Trelleborg’s marine and infrastructure operation, explains how to maximise vessel docking and mooring eﬃciency through astute equipment maintenance and staﬀ training

8 Docking and mooring equipment must last the intended lifecycle, while ports have to operate efficiently and staff are safe and effective. It is a balance that must be maintained

To meet industry standards, port owners must prioritise frequent and thorough servicing, maintenance checks of docking and mooring equipment and ensure staff receive the latest training. These steps can help avoid unplanned downtime that can impact vessel throughput levels and revenue, while extending the design life of mooring products, improving operational costs and eliminating health and safety risks. The pitfalls of insufficient preventative measures within docking and mooring operations are well known within the maritime industry. Human error due to improperly trained staff and equipment failure following poor maintenance programmes can have serious consequences. The UK Protection and Insurance Club (UK P&I) reports that over the past 20 years, of the 58 per cent of injuries that occurred during mooring operations, six per cent were due to equipment failure[1]. Additionally, in recent years a rise in mooring incidents due to insufficiently trained crew has been reported[2]. REGULAR SERVICE AND MAINTENANCE Until around 20 years ago, there were no official standards set in place to organise effective equipment maintenance. Port owners would take advice from manufacturers and incorporate their recommendations as guidance. Now, industry bodies such as the Oil Companies International Marine Forum (OCIMF) and the World Association for Waterborne Transport Infrastructure (PIANC) update health and safety guidelines for mooring equipment regularly, recommending minimum requirements based on the latest industry practices. It is ultimately down to the port owner or operator and its management of critical operating equipment to prevent issues occurring. Regular maintenance and servicing will reduce equipment downtime, unplanned service activities, maximise product lifespan, improve productivity, manage risk and reduce the total cost of ownership (TCO).

38 | MARCH 2021

There are many servicing and maintenance checks available. Owners must initially assess the criticality of an item defined by looking at the probability and consequence of failure, to establish which service is required. This information can also facilitate, alongside industry guidelines, selection of the correct servicing intervals, either monthly, quarterly, half-yearly or yearly. In some instances, onsite inspections (virtual or in person) may help to best understand maintenance and servicing needs. Industry experts, such as original equipment manufacturers (OEM’s), are invaluable resources, as this indepth equipment knowledge can help maintenance crews better understand how to maximise operational outcomes. Equipment may also need replacement parts, so conducting regular spare part audits is advisable to ensure inventory is up to date. As an example, exchanging hook load cells yearly to comply with the annual calibration recommendations within The Jetty Maintenance & Inspection Guide (JMIG) by the Society of International Gas Tanker and Terminal Operators (SIGTTO) and OCIMF, is recommended. As ports become more autonomous, owners must also take technology-driven equipment into account when arranging such reviews and checks. This equipment can require more regular maintenance, such as cybersecurity checks, system communications checks and software updates. However, updated smart technology and running regular remote diagnostics means operations will benefit from better data and analysis, reliable operation, improved systems connectivity, and safer connections. CREW AND REFRESHER TRAINING Maritime jobs, by their very nature, are physically and psychologically demanding, especially roles on docks which often involve the use of heavy machinery and hazardous materials - an environment where accidents can happen. The UK P&I Club reports that of the serious injuries that

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DOCKING AND MOORING occur during mooring incidents, 14 per cent result in death[3]. One such incident in Asia saw a crew member killed after being struck by a mooring rope. Upon review, it was established that this was caused, in part, due to a lack of training to enhance operational safety awareness.[4] With the inclusion of regular training within port operations, many accidents that are the result of negligence from overlooking safety procedures and failure to train staff sufficiently, can be avoided. Having properly trained staff allows them to utilise equipment to its fullest capacity. Owners then know that staff can safely, correctly and effectively operate and maintain docking and mooring equipment. There are a variety of training programmes available that cater for different levels of experience. These range from personnel who only require an overview of systems, to full refresher training for all operators and maintenance crews. Staff need new or refresher training on correct installation and operation of equipment, sufficient jetty walkthroughs, safe working practices and detailed maintenance procedures, for example. When it comes to managing of smart technology at ports, staff must be educated how to operate all systems effectively and safely and to understand central system configurations. NEGLECTED EQUIPMENT AND INSUFFICIENT TRAINING Certain equipment is critical for port operations. Owners need to assess and establish what parts of their equipment can stop port operations if they were to fail, or if they did not have spares to hand. Neglecting maintenance can also result in knock-on effects within operations. If the integrated monitoring system at a berth with Quick Release Hooks (QRHs) failed, for example, and remote release was not possible, manual release would have to occur on each QRH. A time-consuming job and one that will not have been factored into the schedule. There can also be instances where neglected ports begin to decay, remotely located ports/berths and multiuser berths can sometimes be the casualties in this instance. In the case of multiuser berths, which vessels rent for the time they are berthed, often the port and equipment are not well maintained due to frequency of use. It is imperative to have a clear understanding of who is responsible for maintenance when it comes to these facilities, to avoid ambiguity and neglected equipment. Where a port is remotely located, equipment failure can occur as a result of lack of budgeting, difficulties receiving regular maintenance or being unable to ensure trained personnel are on site.

Other examples of failure due to negligence can include the poor condition of mooring lines, corrosion of equipment due to poor paint coating maintenance, hydraulic failure in automated systems, out of date software and a lack of regular diagnostics checks that can have eﬀects on operationality and data output. Almost 40 partly or fully automated ports are currently in operation worldwide[5] and rely heavily upon these technologies to work to their full capacity to make critical decisions.

8 Staﬀ need new or refresher training on correct installation and operation of equipment

TOTAL COST OF OWNERSHIP MENTALITY Regular training, maintenance and service agreements are tools to manage total cost of ownership (TCO) and risk. To maintain industry standards, avoid direct implications on operations and potentially the reputation of the industry itself, a long-term mindset towards TCO should be adopted instead of a short-term view or a ‘run to failure.’ Ultimately this approach ensures equipment remains cost effective and lasts its intended product lifecycle, and that ports can operate efficiently to their fullest capacity while staff operate safely and effectively. 8 Nick Labrosse is Sales and Marketing ing Director of Trelleborg’s marine and infrastructure e operation [1] Understanding Mooring Incidents (ukpandi.com) di.com) ducing [2] Press Release: UK P&I Club advises on reducing mooring incidents (ukpandi.com) di.com) [3] Understanding Mooring Incidents (ukpandi.com) [4] Fatal accident during mooring operation on deck SAFETY4SEA com) [5] The future of automated ports (mckinsey.com)

Peace of mind with servicing and maintenance nce The JMIG by SIGTTO and OCIMF is a health and safety document that helps operators enhance the performance and safety of their docking and mooring systems. Based on the concept of proactive maintenance, it encourages owners to adhere to tailored inspection schedules that suit each item of equipment and its supporting infrastructure. Trelleborg has used this document to tailor its service agreements and one LNG terminal in the south of England, owned by a leading power and gas company in the UK, has reaped the benefits of a bespoke aftersales servicing agreement for the past

two years. This includes a load cell exchange programme, spare parts packaging, and maintenance services. Previous load cell units were installed and calibrated by staﬀ on site, meaning that lifting and calibration operations were conducted over water. Since using this service, the terminal has seen increased reliability and availability of its assets and eliminated unnecessary risk to on-site personnel. What was once a manual labour-intensive task, is now easy to perform and industry standard compliant, maximising the availability of their jetty. Trelleborg’s spare parts package has

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

provided the terminal with the peace of mind that its inventory is up-to-date and, if required, calibrated spares are on-hand for immediate use. The terminal has also invested in warranty cover, which allows for cell return and replacements to be shipped at no additional cost to their operations. Trelleborg’s aftersales and servicing agreement has become a crucial and integral part of the operation of the terminal. Experienced engineers are on hand to help support the port’s operational maintenance swiftly, resulting in increased eﬃciency and reduced health and safety risk.

MARCH 2021 | 39

15JUNE Southampton 172021 United Kingdom TO

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DOCKING AND MOORING

NEW SMART BOLLARD TESTS A new Smart Bollard is under test in Rotterdam – major benefits are foreseen A new Smart Bollard is under test at Hutchison Ports ECT Delta Terminal on the Maasvlakte, Rotterdam. The bollard can measure the loads imposed on mooring lines in realtime. It allows the real-time safety monitoring of the moored vessel, and generally it provides clearer information about the berth conditions for vessels. The Smart Bollard will be tested over the coming months and subject to positive results will be officially launched this summer. It is being developed by Zwijndrecht-based Straatman BV in collaboration with the Port Authority of Rotterdam. INNOVATION TO ACCELERATE IMPROVEMENTS “In order to accelerate improvements in the port we started an innovation and research programme some years ago. The programme is all about safety in the port, cost efficiency and making the port more efficient through innovation, research and digitisation,” explains Joppe Burgers, Senior Project Engineer & Project and Programme Manager, Port Authority of Rotterdam . He elaborates. “We knew that there was not such a thing as a smart bollard anywhere in the world when we started. Generally, the only solution available was to temporarily install load-shackles to monitor line loads, whereas the Smart Bollard will be permanently installed on quays and integrated in the port system.” Burgers and his colleagues embarked on the Smart Bollard project two years ago. Boatmen Association KRVE and Gertjan Strietman, Managing Director, Straatman, have been involved from the start. A central feature of the research and development (R&D) was to explore whether there were applicable sensors available and what could be developed to measure the loads on the mooring lines. The R&D process started by establishing that bollards are the first interface between a vessel and port infrastructure. From this point Strietman initiated the development of the concept with research and measurement runs on existing bollards, only to find it was best to design a new bollard to achieve the exact and reliable measurements and required control of the mooring process from 100 to - 300 tonnes. The application extends across all seagoing vessels right through from container vessels to bulk carriers.

‘‘

The bollard can measure the loads imposed on mooring lines in real-time COLLABORATIVE EFFORT Maarten Verboom, Sales Manager, Straatman, praises the collaboration with both the port authority and the port community in Rotterdam. The engineers and designers conferred with their counterparts at the Rotterdam-based Boatmen Association KRVE, who then helped review the design and will assist during the tests. “They have a lot of know-how about the use of the bollards. The boatmen association also developed the ShoreTension system together with the port authority and ECT years ago. ShoreTension is a hydraulic mooring system that automatically keeps mooring lines tight in severe conditions such as suction

caused by passing ships, severe weather conditions and swell. It also prevents mooring lines from breaking in the case of on-/ offloading and tidal differences,” he explains. “ShoreTension has kindly offered to assist with measuring equipment on the test bollard. Smart Bollards and ShoreTension can be applied separately, however the combination results are effective and improve mooring especially in bad weather conditions,” states Verboom. Additionally Hutchison Ports ECT Delta Terminal has assisted by accommodating this trial, as Burgers notes. “We are dependent on help from within the port community. We all try to improve our port and without collaboration innovations would not succeed.”

8 It is suggested the Smart Bollard oﬀers a level of safety more appropriate to the value of vessels in service today

BENEFITS AND NEXT STEPS All parties involved agree that the Smart Bollard has the potential to simultaneously enhance safety and reduce downtime. Going forward it is also seen to be possible to further develop software to the point where data can be monitored onboard ship, including an alarm system to warn of critical mooring lines strain and a line break. Such data is already available through Straatman’s online portal and can be easily integrated within port management systems. Naturally all involved are aware that the Smart Bollard will be more cost-intensive than the existing bollards, but the return on investment will be worthwhile, enhanced by increased safety due to predictability. As Strietman puts it, “In fact, it is odd that a vessel of €100 million, including half a billion worth of cargo can moor without exactly knowing what’s going on with strain on the mooring lines.”

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

MARCH 2021 | 41

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PORTSTRATEGY INSIGHT FOR PORT EXECUTIVES

PRODUCTS & SERVICES DIRECTORY

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. YOU CAN DEPEND ON BIG RED! 3690 N Church Avenue Louisville, MS 39339 USA +1 662 773 3421 CONTACT?SALES TAYLORBIGRED COM www.taylorbigred.com

14/07/2020 10:56

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

Over a century of port industry experience. A strategic group of ‘best in breed’ people, partners and solutions, capable of delivering holistic, turn-key, advanced port-centric solutions for any brown and greenfield terminal around the world.

G-SERIES

Dellner Dampers is an innovative Swedish company that supplies solutions to mitigate vibrations and absorb kinetic energy. Standard and customised buffers and dampers for port side applications such as cranes, spreaders and more. All designed and produced in Sweden. Tel: +46-(0)157-45 43 40 Email: info@dellnerdampers.se

D REDGING

C OMPONENTS

Cimbria Directory.indd 1

When experience really does matter!

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

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

DEME is a world leader in the highly specialised fields of dredging, marine engineering and environmental remediation. The company can build on more than 140 years of know-how and experience and has fostered a pioneering approach throughout its history, being a frontrunner in innovation and new technologies. Scheldedijk 30, Haven 1025 2070 Zwijndrecht, Belgium +32 3 250 52 11 info.deme@deme-group.com www.deme-group.com

E LECTRIFICATION SOLUTIONS

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

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

25/02/2021 15:49

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

C RANE COMPONENTS

C ARGO HANDLING SYSTEMS

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

LASE Industrielle Lasertechnik GmbH

D REDGING EQUIPMENT

Taylor Machine Works, Inc.

27/01/2021 11:29

A/S Cimbria

D REDGING

Staubli_Directory Mar 2021.indd 1

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

Beumer Directory Jan 2021.indd 1

As one of the leading manufacturers of quick connector systems,Stäubli covers connection needs for all types of ﬂuids, gases and electrical power. Tel: +33 4 50 65 61 97 connectors.sales@staubli.com www.staubli.com/en-de/ connectors/

C ONSULTING ENGINEERS

Overland Conveyor Pipe Conveyor Stacker & Reclaimer Shiploader

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

C ARGO HANDLING EQUIPMENT

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

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

C ONNECTION SOLUTIONS

For more than a century, Bedeschi is providing effective and reliable solutions in a wide variety of industries (bulk handling, marine logistics and mining), capitalizing on synergies and cross competences. Via Praimbole 38, 35010 Limena (PD) – Italy Tel: : +39 049 7663100 Fax: +39 049 8848006 Email: sales@bedeschi.com Web: www.bedeschi.com

B ULK HANDLING

Bedeschi S.p.A

VAHLE PORT TECHNOLOGY VAHLE is the leading specialist for mobile power and data transmission VAHLE provides the solutions to reduce the carbon footprint while increasing the productivity. RTGC electrification including positioning and data transmission making RTGC ready for Automation. Westicker Str. 52, 59174 Kamen, Germany

7EB DELLNERDAMPERS SE

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

Rohde Nielsen A/S

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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

Port Strategy Directory Contact Tim Hills or Hannah Bolland +44 1329 825335 www.portstrategy.com

MARCH 2021 | 43

PRODUCTS & SERVICES DIRECTORY

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

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

Port Strategy Directory

SANY offers reliable quality container handling trucks. Benefit from the experience of over 4,000 reach stackers build over the last 12 years, with up to five year full machine warranty.

Contact Tim Hills or Hannah Bolland +44 1329 825335 www.portstrategy.com

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

Siwertell Directory - Ship Unloaders Category.indd 12/05/2020 14:12 1

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

RuggON is here to offer high quality and future-proof one-stop rugged computing solutions, ranging from rugged vehicle-mount computers, mobile tablets and data terminals, to similarly durable data-capture accessories, for a safer and more efﬁcient automated port and terminal operations from quay, yard, gate, and all the way to warehouses. 4F., No. 298, Yangguang St., NeiHu Dist., Taipei, Taiwan +886-2-8797-1778

RuggON_Directory_40x58.indd 1

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

44 | MARCH 2021

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Port Strategy Directory Contact Tim Hills or Hannah Bolland +44 1329 825335 www.portstrategy.com

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

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

20/01/2021 10:50

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

T ERMINAL OPERATIONS SYSTEMS

To advertise in the

Sany Europe GmbH

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

S PREADERS

MRS Greifer GmbH

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

90 Fenchurch St London • EC3M 4ST Tel: +44 207 204 2635 london@ttclub.com www.ttclub.com

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

01/02/2021 13:12

The TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. TT Club specialises in the insurance of liabilities and equipment for multi-modal operators.

S HIP UPLOADERS

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

I T PORT AUTOMATION

G RABS

Fogmaker Directory.indd 1

BLOK Container Systems Ltd

I NSURANCE

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

H ANDLING EQUIPMENT

F IRE SUPPRESSION SYSTEMS

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

Visy systems reduce VISY Oy expenses, optimize safety & security, and VISY takes pride solving via increase throughputin capacity 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 via processes resulting movements 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/

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

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

PRODUCTS & SERVICES DIRECTORY

T RACTORS

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

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

T ERMINAL OPERATIONS SYSTEMS

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

MAFI Transport-Systeme GmbH

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

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

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

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POSTSCRIPT MUA: THE BIGGER PICTURE Victoria International Container Terminals is the latest Australian terminal operator to be dragged into conflict with the Maritime Union of Australia. The MUA cites failure to reach an Enterprise Agreement as the cause but is this the whole story? Why attempt to implement industrial action now when supply chains are stretched and generally under pressure due to the Pandemic? Are the stated reasons for industrial action now and in the recent past only part of the story? Is the bigger story the back story? These are two key questions to ask against a background of what seems to be continual work stoppages and other actions initiated by the Maritime Union of Australia (MUA) in Australia’s number one containerport, the port of Melbourne. Ironically, the latest MUA dispute in Melbourne – against Victoria International Container Terminals (VICT), a fully automated terminal and ICTSI Group company – was initiated in early February just a few days before DP World announced that it had successfully concluded negotiations with the MUA for four new Enterprise Agreements for its terminals in Melbourne, Sydney, Brisbane and Fremantle. Settling this latter dispute was, however, by no means straightforward as the time taken to reach an agreement underlines; around two and a half years!

‘‘

…this conflict based approach seems more appropriate for the 19th Century than today’s world, especially in the midst of a Pandemic!

46 | MARCH 2021

MARKET CRITICISM With the round of industrial actions, including stoppages, the MUA implemented in Melbourne in the latter half of 2020, directed against terminal operators DP World and Patrick, the union came in for significant criticism over the staging of stoppages, in particular when supply chains were under pressure as a result of the Pandemic. It was widely seen as an opportunistic move designed to capitalise on an already diﬃcult situation. The same feelings prevail with the latest union action, albeit that the MUA has attempted to avoid the ‘landmines’ it trod on previously. The MUA has announced that that any containers carrying medicines, medical supplies or urgent medical equipment will be exempt from the dispute coverage. Similarly, it has declared that refrigerated containers will be exempt ensuring foodstuﬀs, perishable goods and agricultural exports were not negatively impacted. How this will work in practice, is the focus of some scepticism. It has, however, not, at the time of writing, been put to the test with the Fair Work Commission suspending the action early on as a result of submissions made by VICT highlighting the risk of economic harm and other serious negative impacts. A mid-March hearing has been scheduled and up until this time no industrial action will be undertaken. The Victorian Transport Association is one prominent body that believes the MUA action in conjunction with VICT is a calculated one and as such labels it fundamentally “opportunistic and irresponsible.” Equally critical, the shipowner industry

8 The MUA has initiated its action against VICT together with two other unions representing employees at VICT – the Australian Maritime Oﬃcers Union and the Electrical Trades Union – but as the Container Transport Alliance notes by comparison to the MUA these two unions have been relatively quiet

body Shipping Australia identifies the MUA statements on cargo exemptions as cynical PR. THE BACK STORY The official line from the MUA is that all the recent disputes are focused on Enterprise Agreements – and they are, but this is not to say that there are no other wider objectives. The first point to factor in is that the MUA is a very left leaning organisation – entities that at one time or another have given support to the MUA include the Socialist Alliance, Solidarity, Socialist Alternative and the Communist Party of Australia as well as the Australian Labour Party and the Greens. This strong political colouring is an influential driver in the union’s engagement with employers and it is fair to say it is a divisive factor. It also goes some way to explaining the MUA’s resistance to change or as some put it, “unwillingness to move with the times.” With Australian port sector employer’ negotiations the MUA has repeatedly resisted change to the extent that it can even attempt to wind the clock back. Tim Vancampen, CEO, VICT, as part of a written statement formulated in response to the MUA action, highlights the MUA demands as unviable, the proposed strike action as certain to damage the economy and the demands overall a serious attempt to steer the waterfront back into the past. He underlines that “…by ignoring the efficiencies of automation and hobbling VICT with outdated ways of working and inapplicable wages and benefits,” it effectively signals a return to the ‘old ways’. Tellingly, he adds: “As the first automated terminal in Australia we never expected to be popular with traditional waterside unions but we couldn’t have anticipated such unrealistic demands. We’ve been in negotiations for months however the MUA is unwilling to consider reasonable differences in VICT’s operation.” The MUA consistently fields an aggressive approach and one where history shows reaching a conclusion on Enterprise Agreements is invariably a torturous business typically commencing with unrealistic demands and highly likely to involve industrial action. It has to be said that this conflict based approach seems more appropriate for the 19th Century than today’s world especially in the midst of a Pandemic!

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

29SEPT Port of Antwerp ȠǼȠ1 Belgium 30 TO

Antwerp 2021

COASTLINK Conference Hosted by:

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

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

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

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

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Piraeus2021

20OCT Piraeus 22 2021 Greece

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Meet and network with over 200 attendees representing port authorities, terminal operators and shipping lines. For more information on attending, sponsoring or speaking contact the events team visit: greenport.com/congress contact: +44 1329 825335 or email: congress@greenport.com