Port Strategy May 2021

MAY 2021 VOL 1021 ISSUE 4

portstrategy.com

K2 for bulk port planners? | Ukraine: unlocking concession potential | Canadian rail fight

BRAZIL RO-RO CHALLENGES ZAGREB PIER QUESTIONS CHINA PORTS: TROUBLE AHEAD? DIGITAL: REWARD OR RISK…

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

Sustainability finds core financial dimensions

Sustainability: the right credentials can deliver benefits and conversely if there is a perception that such credentials are not in place there can be penalties

President Biden said at the recent Leaders’ Summit on Climate that we are in a “decisive decade” for tackling climate change. “Scientists tell us that this is the decisive decade – this is the decade we must make decisions that will avoid the worst consequences of the climate crisis,” he emphasised in the opening address to the summit.

He followed this up with a commitment for the US to cut carbon emissions by 50-52 per cent below 2005 levels by 2030. Other nations made similar commitments – Canada to limit carbon emissions by 40-45 per cent by 2030, Japan by 46 per cent by 2030 and strikingly the UK announced its intention to set into law the ambitious target of reducing emissions by 78 per cent by 2035. Furthermore, this latter target will, for the first time, include the UK’s share of international shipping and aviation emissions.

There is a lot of work to do to turn theory into practice, and while there are still key nations that have not stepped up to make commitments on carbon emissions – notably China and India – it is clear that emission reduction has metamorphosed from an illusory goal to a serious objective in today’s world. The bandwagon of emission reduction is well and truly rolling, as is increasingly evidenced in the ports and shipping sector.

Without doubt the largest volume of news received on a daily basis by Port Strategy is what can broadly be called sustainable news – steps in our sector to make the planet a cleaner and better place to live ranging across a myriad of subjects extending from low carbon shipping solutions through to measures to improve social sustainability.

Interestingly, there is also today a growing recognition of the importance of sustainability in the investor and financial markets – the right credentials in this respect can deliver benefits and conversely if there is a perception that such credentials are not in place there can be penalties.

A near pioneering move in the former respect was announced by Hapag Lloyd in late March – i.e. plans to issue a sustainability linked corporate senior note for €300 million. This note is associated with a clearly defined sustainability target; namely by 2030 the co2 intensity of Hapag-Lloyd’s liner fleet is to be reduced by 60 per cent compared with 2008, the reference year of the International Maritime Organisation. The favourable terms of the loan enable the early redemption, in-full, of an existing €300 million EUR bond – plainly a beneficial move.

The other side of the coin is highlighted in the story Adani Runs into Myanmar Quagmire on p6. Adani has been removed from S&P’s Dow Jones Sustainability Indices which feature companies that perform well environmentally and in a social context. It has also experienced some divestment by investors – both events stemming from its past association with the Myanmar Economic Corp (MEC), which the USA states is a military holding company that supports the regime that overthrew Myanmar’s civilian government. It has to be said that in the eyes of many this action is harsh – it nevertheless highlights the growing influence of sustainability in the maritime environment including in the core areas of finance provision and investment.

Sustainability now has a price tag attached.

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

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

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MAY 2021 | 3

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CONTENTS MAY 2021 VOL 1021 ISSUE 4

portstrategy.com

K2 for bulk port planners? | Ukraine: unlocking concession potential | Canadian rail fight

NEWS 16 Banana rethink

Concession revisions

16 Myanmar quagmire Sustainability penalties

17 Leatherman opens

New terminal for SC Ports

BRAZIL RO-RO CHALLENGES ZAGREB PIER QUESTIONS CHINA PORTS: TROUBLE AHEAD?

17 Gladstone hydrogen Ecosystem MOU signed

DIGITAL: REWARD OR RISK…

On the cover Brazil’s ro-ro terminals are facing up to new market circumstances which look set to deliver a new industry structure

18 ISO Standard soon

For operations and admin’

18 Docktech buy-in Precise depth measurement

18 Portbase overview Suez solution

19 Track & trace embraced

System acceptance builds

19 Camco solutions

Gate and rail automation

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11 GPA goes large

Comprehensive crane order

MAY 2021 FEATURE ARTICLES 19 Zagreb Pier questions

Winner already decided?

20 Brazil ro-ro challenges

Terminals adapt to new market conditions

22 Thinking big

Major port projects – Part 1

25 K2 for port planners

Bulk ports: the China factor

28 Ukraine concessions

PPPs underpin port plans

30 There may be trouble ahead

Era of change ahead for China’s box ports?

33 Systemic problems PoAL safety review

35 Step-up or risk repercussions

11 MPA upgrades VTS

Part 1: Digital recommendations

13 Biden targets wind

39 Optimised vessel moves

Upgrades for more clarity Ambitious energy plans

13 North Sea hydrogen Consortium extensive plans

REGULARS 15 The Economist

Globalisation stumbles

15 The Strategist

Don’t forget the lile guys

17 The New Yorker

Port bragging rights

17 The Analyst

Thinking crime reduction

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

Arrival and departure refined

40 Canadian rail fight Bidding war for KCS?

41 Tit-for-tat in Montreal

Concern over industrial action

42 Sense of security Problem hotspots and solutions

43 Security innovation Innovations for maximum security

48 Postscript

ESPO OPS initiative

MAY 2021 | 5

NEWS Africa Intelligence reports DP World as engaging with the DR Congo government on the issue of the revision of its concession contract for the port of Banana in south western Kongo Central province where it hopes to build a deep-sea container terminal.

DP World signed the original concession contract with the former administration led by Joseph Kaliba, but the current administration reportedly considers this biased in favour of DP World.

One of the contentious issues associated with the original concession agreement is DP World’s wish to have exclusive use of a 90km perimeter around the new port to be built in Banana.

This is considered excessive by the Congolese authorities plus it has the added problem of preventing Fortescue, the Australian mining company, from progressing targeted projects.

Fortescue apparently has its eyes on the Grand Inga megadam project (which includes the Inga III and Inga VIII hydroelectric dams totalling 70,000-MW) and for this purpose will have to build a port between Banana and Boma on the Congo River so as to be able to export the hydrogen and ammonia produced as a result of these dams.

Sovereignty is also said to be another issue. A clause that bars the National Assembly from legislating against DPW’s interest for the full term of the 30-year concession is seen as onerous. In a similar vein, government has also suggested that the 30%

BRIEFS Peru’s 10 Projects

Peru’s National Ports Authority (APN) is currently overseeing 10 major projects in ports worth a combined US$274.4 million. These are taking place at terminals run by private concessionaires at the ports of San Martín, Paita and Salaverry. General San Martín, which is operated by Consorcio Terminal Portuario Paracas, has completed works of US$157 million for Phases 2/3. At Ilo and Iquitos $8.9 million of works are underway.

6 | MAY 2021

BANANA RETHINK OF CONCESSION ARRANGEMENTS 8 The DRC government considers it has strong grounds to renegotiate DPW’s Banana port concession at the mouth of the Congo River

stake it will hold in the project is too low – there are particularly concerns about this level of equity stake being too low to exercise the right of veto.

Outside of the sphere of concession issues, questions have also been asked about the logic of a container terminal positioned at the mouth of the

Congo River functioning as a gateway terminal for the DRC. Container imports are largely destined for the capital city of Kinshasa and surrounding area.

Freight road transportation costs in the DRC are very high and the journey from Banana to Kinshasa is more or less twice the distance from Matadi to Kinshasa. Matadi, a Congo River port, offers recently established modern container handling capacity.

ADANI RUNS INTO MYANMAR QUAGMIRE India’s Adani Group has run into problems flowing out of past payments made to the Myanmar Economic Corp (MEC), which the USA designates as a military holding company that supports the regime that overthrew Myanmar’s civilian government in February of this year. The payments were made to secure development rights for a terminal project in the Myanmar city of Yangon.

This connection has recently led to financial data company S&P Global removing Adani Ports & Special Economic Zone Ltd. from its Dow Jones Sustainability Indices; regional indices that feature companies that perform well environmentally and in a social context. Adani Ports featured among approximately

100 indexed companies in the emerging markets category.

This is a significant step – indices like S&P’s, which score a company beyond the basics of its earnings and balance sheet, are increasingly being looked at by investors in the context of risk assessment.

Adani has also experienced investor pull-back in recent weeks. A report in the Wall Street Journal cites Norwegian bank DNB ASA selling off the shares it held in the company at the end of March on the basis of human rights concerns. Also, it reports Finland’s Nordea Bank ABP as completing its divestment in early April and stating that a recent United Nations report on the military’s activity in Myanmar “confirms” its decision to pull back.

For its part Adani stresses that it hasn’t undertaken any transactions with the MEC since last year and that all transactions with and payments to MEC and its subsidiaries have been terminated. Further, Adani points out that its operation of the terminal doesn’t violate U.S. sanctions. A statement from the Group notes: “As Adani Group isn’t a U.S. person, we are not subject to the prohibitions of U.S. sanctions.” And emphasises that: “We condemn violations of the fundamental rights of all people and would continue to work with our partners and stakeholders, including business leaders, government and non-government organisations, to foster a business environment that respects human rights.”

Antonina + 50% in 2021

Puerto Bolívar Quay 6

Biden plan concerns

Brazil’s Port of Antonina is forecasting a 50 per cent growth in operations this year. Most of the growth will come from Ponta do Félix Port Terminals (TPPF), which benefits from the current economic situation favouring Brazilian agribusiness (high dollar, rising commodity prices and the growing demand for food worldwide). New bonded warehouse facilities and warehouses close to the quay are also expected to support new business development.

Yilport has begun expansion of a new 450m Quay 6 at Puerto Bolívar, in Ecuador.

The project has a budget of US$176 million, which will also fund construction of a container stacking yard, reefer warehouse and access roads. The local Yilport subsidiary has also acquired six RTGs and two ship-to-shore cranes, worth US$22 million.

The port currently accounts for 60 per cent of export banana traffic.

The new Biden administration has confirmed that the American Jobs Plan means spending of US$2.25 trillion. Of this total, US$17 billion is for inland waterways, coastal ports, ferries and land-based points of entry. The American Association of Port Authorities says this is inadequate, with ports in the USA needing US$5 billion for navigational projects, US$4 billion for security and US$20 billion for terminals, wharves and intermodal connections in the next five years.

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

NEWS

LEATHERMAN OPENS IN SOUTH CAROLINA

container capacity, which will double the current capacity at the Port of Charleston.

At the same time, the Charleston Harbor Deepening Project is also fully on track to achieve 52ft of depth during 2021, enabling the port to successfully receive the largest container vessels in service and planned for deployment along the East Coast of North America.

8 Open for business – the new Hugh K. Leatherman Terminal in South Carolina

SC Ports has seen a strong start to 2021, with the January to end of March 2021 total comprising 647,331 TEU an increase of 8.3 per cent over the same period in 2020. Full year 2020 volumes of 2.31 million TEU reflect a small drop on the 2019 figure of almost 2.44 million TEU.

GLADSTONE HYDROGEN ECOSYSTEM MOVES Hydrogen exports from the port of Gladstone have moved closer to reality after five entities signed an agreement to back production for the home and overseas markets, with Queensland’s gas networks being converted to carry renewable hydrogen.

Sumitomo Australia, Gladstone Ports Corporation, Gladstone Regional Council, Australian Gas Networks (as part of the Australian Gas Infrastructure Group (AGIG)) and CQUniversity Australia have signed a memorandum of understanding to create the “Gladstone Hydrogen Ecosystem”.

It will be Australia’s first hydrogen ecosystem, initially focusing on production for the domestic market and

BRIEFS Bolivia’s Busch benefit

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South Carolina Ports Authority (SC Ports) has commenced operations at the new Hugh K. Leatherman Terminal, with the first vessel to call operated by Hapag Lloyd. The port authority states that this is the first new container terminal to open in the USA since 2009.

The Leatherman Terminal has been under development since 2003, when SC Ports first filed permits to develop a container terminal at the site of a former Navy Base in North Charleston.

Site work began in 2007 and involved demolishing old buildings and preparing the former Navy Base site for port operations. Construction commenced in 2018.

The Phase 1 development has a price tag of US$1 billion and features 1400ft of berthing equipped with five ship-to-shore gantry cranes. Vessels with capacities up to 20,000 TEU can be handled.

There will be a supporting 47-acre container yard served by 25 hybrid RTG cranes to provide an initial capacity of 700,000 TEU. There is also an additional six-acre area designated for refrigerated and reefer cargoes enabling SC Ports to target more fresh, refrigerated and frozen goods.

When completed, the US$2 billion Leatherman Terminal will provide three berths, adding a total of 2.4 million TEU of annual

subsequently large-scale exports with Japan a prime target market.

The MOU sets out a threephase plan, with the end goal to see hydrogen exported from Gladstone by 2030.

Australia is pursuing a strategy to become a world-class hydrogen energy generator and exporter and has a National Hydrogen Strategy in place.

The State of Queensland has a similar strategy, which promotes the growth of the gas as a clean, environmentally friendly energy source.

Queensland has exceptional solar radiance for the production of hydrogen and is well placed to scale up from domestic production and use to large-scale generation and export. The presence of a major global

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

corporation such as Sumitomo in the collaborative agreement is seen as a sign of international investor confidence in the project.

Mick de Brenni, Minister for Queensland Energy, Hydrogen and Renewables, says countries around the world, like Japan, have mandated decarbonisation and set clear targets, and are looking to Queensland for help to meet them. He says that use of existing water and gas pipeline infrastructure and publicly owned ports facilitates crucial access to domestic and international markets.

Gladstone has a strong track record for development in the energy field. The development of the A$70-billion LNG industry was accomplished in just under a decade.

Argentina has offered Bolivia the chance to partner in the development of the Busch river port, which is located in Santa Cruz, being part of the Paraná-Paraguay waterway. Legislation passed in Argentina three years ago aims to transform the facility into a strategic regional export hub. Bolivia would benefit directly from the project to integrate its lemon export production with that of Argentina’s so that they could fulfill demand in common markets overseas.

CMA CGM TTIA stake

CMA CGM has taken a major equity stake in Total Terminal International Algeciras (TTI Algeciras), at the Port of Algeciras, Spain.

The deal involved the purchase from HMM Co Ltd of 50 per cent of its shares minus one of the company Total Terminal International Algeciras SA by Isla Verde Algeciras Terminal Holding SL (IVATH). The latter is 51 per cent owned by CMA Terminals Espagne (CMA CGM) and 49 per cent by a subsidiary of the DIF Capital Partners group.

Puerto Williams quay

In the extreme south of Chile, work has commenced on a new multipurpose quay at Puerto Williams. Funding is from the Ministry of Public Works, through its Directorate of Port Works (DOP), and the National Fund for Regional Development (FNDR).

The facility, which will also be used by scientific vessels, is being developed in two stages with the initial one incorporating a 150m long dock.

MAY 2021 | 7

DIGITAL SYSTEMS

BRIEFS HHLA invests

Hamburg terminal operator HHLA and shipping group Wilhelmsen are anchor investors in a new fund powered

by Rainmaking, Motion Ventures, which aims to accelerate startups that overcome maritime chain ‘hurdles’ via the strategic injection of capital and support.

In particular, Motion Ventures will focus on the development and application of technologies such as artificial intelligence, continuous intelligence and hyper-automation.

8 | MAY 2021

ISO STANDARD AGREEMENT FOR ADMIN’ & OPERATIONS 8 ISO Technical Committee 8 will progress the introduction of a new digital ISO standard for the exchange of operational and administrative data

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Following three years of work by Non-Government Organisations (NGOs) and leading maritime public and private sector players, consensus has been reached on proceeding to develop a global digital ISO standard for the exchange of operational and administrative data.

This follows identification of, and agreement on, application program interface standards which are compatible and interoperable by leading industry participants.

This important development is seen to complement progress made in nautical and hydrographical data standards, with the principal aim being to facilitate vessels being able to exchange uniform data sets with port communities and supply chain stakeholders on a global basis – before, during and after port calls. It is envisaged this will optimise port calls, reducing berthing time and emissions.

ISO Technical Committee 8 will advance work on the proposal to originate a single and neutral supporting technical standard for operational and administrative data. This Committee will continue work on the alignment of ISO 28005 to the IMO Compendium and have responsibility for defining the information exchange needs and application program interfaces between ship and shore.

The detailed specification and standardisation work will be undertaken by an ISO Working Group with parallel updating of the IMO Reference Data Model.

The resulting draft standards will be processed in the normal way with final approval by member organisations to ISO TC8/SC11.

The International Maritime

Organisation (IMO), World Bank, Digital Container Shipping Association (DCSA) and International Association of Ports and Harbours (IAPH) all rank

among the leading organisations that endorse a standardised approach to data collaboration.

Also of significance regarding this work, the IMO member states (174) will be required by 2024-25 to use a single window system with a recent IAPH survey of 111 ports around the world finding that only approximately a third of the sample have operational systems, a third have them under development and the remainder have yet to commence work in this area.

WILSON SONS BUYS INTO DOCKTECH Brazil-based port and logistics operator Wilson Sons has acquired a minority stake in Docktech, a system based on digital twins technology which is designed to achieve the highly accurate measurement of the depth of port channels and berth pockets. The purchase, agreed with an Israeli start-up company, also provides Wilson Sons with a commercial exclusivity agreement to install Docktech’s technology in Brazilian ports.

Wilson Sons reports that this technology combined with the data collected by its fleet of 80 tug boats will, via the provision of highly accurate depth data in real time, enable the optimisation of

vessels’ cargo carrying capacity and more efficient use of dredging resources overall.

The company’s tugs collect and process the depth measurements of the ports where they are active

with Docktech. These presently include Santos and Rio Grande with Rio de Janeiro, Acu and Vitoria also soon to join. This activity combined with use of the Docktech algorithm facilitates the monitoring of water depths in real time and is said to offer greater safety of navigation as well as significant commercial benefits.

This latest investment by Wilson Sons reflects its ongoing interest in investment into new sector start-ups. Docktech is the second investment of this type made, the first one, concluded in mid-2020, being into a start-up specialised in the development of autonomous mobility systems for port equipment.

Rapid fire response

IBM Maximo

Digital transformation

Portbase, the port of Rotterdam subsidiary, in a rapid fire response to the expected wave of traffic to hit European ports following the resolution of the Ever Given blockage problem in the Suez Canal, has developed and launched a real time digital overview of vessel arrival times to better inform all interested parties.

The overview covers all the schedules at the port’s deepsea terminals with this provided on one platform.

8 Data collection by Wilson Sons tugs complements use of Docktech generating highly accurate depth measurements

UK-based SRO Solutions is to provide IBM’s Maximo asset management software licences to Belfast Harbour as it endeavours to increase digitalisation across its operations. SRO has previously worked with the port of Belfast, implementing Maximo to store information about the port’s assets and manage the maintenance of equipment.

SRO states this project played a part in IBM’s move into the maritime sector.

Malaysian port operator MMC has appointed Ramco Systems, to assist it to achieve a major digital transformation and consolidation of processes at its group ports of Pelabuhan Tanjung Pelepas Sdn Bhd (PTP), Johor Port Berhad, Northport (Malaysia) Bhd, Penang Port Sdn Bhd and Tanjung Bruas Port Sdn Bhd. The contract follows the successful implementation of the Ramco integrated Enterprise Resource Planning (ERP) system at PTP.

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

DIGITAL SYSTEMS In a drive towards uniformity to the broad-based benefit of all concerned, the Digital Container Shipping Association (DCSA) reports that the majority of its members have adopted DCSA Track & Trace (T&T) standards.

This follows on from the DCSA, a neutral non-profit group, publishing earlier this year a common set of processes, as well as data and interface standards for the Track and Trace of containers.

The standards are designed for use by liner operators, cargo shippers and third parties to enable cross-carrier shipment tracking.

The DCSA underlines that ‘widespread adoption’ will create better reliability and real time responsiveness. It further notes that the Standards are compatible

POSITIVE TAKE-UP OF TRACK & TRACE STANDARDS

Le Havre 5G

with the UN Centre for Trade Facilitation and Electronic Business standards thereby enabling ongoing positive returns from existing investments.

DCSA’s liner operator

8 DCSA Track & Trace standards have gained wide acceptance among liner operators and others

membership is estimated to account for 70 per cent of the capacity in the sector.

MULTITERMINALS SIGNS UP CAMCO TECHNOLOGIES ...

Brazilian terminal operator Multiterminals has contracted Belgium-based Camco Technologies to provide gate automation of its Rio de Janeiro Container Terminal 2.

Camco Technologies will provide Gate-In as well as Gate-Out truck Optical Character Recognition (OCR) portal for automated truck, container and trailer registration.

The automated solution comes with a gate operating system, OCR software applications and a service agreement for continuous remote support.

Camco Technologies is installing its rail OCR portal technology at the port of Koper which is participating in the COMODALCE pilot for automated container and rail wagon registration

... AND SO DOES KOPER FOR RAIL OPERATIONS Camco Technologies has also announced that it is partnering with the Port of Koper, Slovenia for the automated registration of its increasing container and rail wagon traffic.

Supported by the Interreg CENTRAL EUROPE programme, Port of Koper is part of the COMODALCE pilot for automated container and rail wagon

BRIEFS

registration. Camco Technologies has been awarded the design, installation and support of its Rail OCR portal technology.

The Camco Technologies rail portal is equipped with AI embedded cameras, capable of registering container, trailer and rail wagon ID, ISO code, weight info’ and door direction.

Dedicated engines based on

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

convolutional neural networks and OCR technology immediately start processing after image acquisition.

The data is sent to the Terminal Operating System thereby increasing overall terminal efficiency. Camco Technologies Rail OCR has now been implemented in over 100 intermodal terminals.

Stephane Richard, CEO of Orange, reports the roll-out of 5G coverage in the port of Le Havre, France. The development is seen as a major catalyst to other digitalisation projects in the port which include digital-based dredging campaigns and port optimisation projects. The 5G project is an integral part of Le Havre’s Smart City Programme which targets development across the Seine Axis ports to boost commercial competitiveness.

Barcelona study

Measuring the impact of digitalisation represents an integral part of a new Economic Impact Study (EIS) initiated by the Port of Barcelona, Spain. The port, in reporting progress with the new study, recognises that since the time of the last EIS in 2010 that the port of Barcelona generally has “…undergone major changes at all levels, and that a strong focus on innovation and digitalisation” are key factors driving competitiveness. As a result, the study will highlight and measure the impact of the efforts made by companies within the port of Barcelona community in diverse digitalising processes spanning; automation and digital management of various operations, the development of PORTIC and other innovative digital processes.

A specialist company, Ecoatenea, has been appointed by the port of Barcelona to undertake the digital analysis element of the EIS. Ecoatenea has recently been gathering comprehensive related data from selected companies as part of its essential preliminary work. Digital processes in the port span automated handling and extensive admin’ and support functions.

MAY 2021 | 9

EQUIPMENT NEWS

GPA LARGE-SCALE STS & RTG ORDER Georgia Ports Authority (GPA) has ordered 20 eco-efficient Konecranes Rubber Tyred Gantries (RTGs) and eight Konecranes Ship-to-Shore (STS) units for the Port of Savannah, USA. The STS cranes will be delivered in two batches, with the first units arriving in June 2023, followed by the remaining cranes in October 2023. The dieselelectric RTGs will be provided in four separate deliveries of five cranes throughout 2021 and 2022.

Griff Lynch, Executive Director, GPA, explains the rationale for the order. “Six of the new cranes will be very large, enabling us to serve the New-Panamax container ships, which will reach us thanks to the dredging of the final portion of Savannah’s shipping channel, which will be completed by late 2021.”

Mika Mahlberg, Executive Vice-President, Konecranes Port Solutions, underlines the importance of the order.

“Konecranes has been working

New AGV’s for ECT

with the GPA since the early 1990s. Six of the new STS cranes will be the largest that Konecranes will have ever made.”

When the new STS cranes enter service, Konecranes will have delivered 45 STS cranes to the GPA, Port of Savannah, since 1990. With the additional 20 RTGs this will bring the total GPA fleet to 201 Konecranes RTGs. In 2020, GPA handled more than 4.68 million TEU, reflecting an increase of 1.8 per cent over

8 The new crane order placed by GPA with Konecranes includes six STS large units purpose-built to handle New Panamax dimension container vessels

the 2019 total of 4.59 million TEU, despite the impact of COVID-19.

The port has seen its longer-term container throughput growth continue, with an average increase of five per cent per annum since 2010, reinforcing the need for continued investment in infrastructure and equipment.

MPA UPGRADES VESSEL TRAFFIC SYSTEM The Maritime and Port Authority of Singapore (MPA) has made a number of upgrades to its Vessel Traffic Information System, including increasing the bandwidth of the communications link between the VTIS and radar stations. Having expanded the tracking capacity of the VTIS progressively over the years to enhance its situational awareness of the Port of Singapore and the Singapore Strait, it has also recently upgraded its VTIS operator workstations to boost system performance and strengthen cybersecurity.

MPA’s vessel traffic operators are acutely aware of the complex operating environment that is unique to the Singapore Strait, notes an MPA spokesperson.

“They include the sheer volume of traffic, shallow patches and the sudden changes in weather conditions. To meet these challenges, MPA’s operators undergo rigorous training and stringent assessment regimes on

BRIEFS

a regular basis to ensure that their competencies are current.

They are also proficient in the use of smart tools and monitoring technology, including collision prediction capabilities to enable early detection of collision and grounding risks.”

The MPA has welcomed the

new IMO Guidelines for Vessel Traffic Services, saying these provide for a consistent and harmonised delivery of VTS. “They give clarity to the global maritime community and are consistent with current practices and standards,” explains the spokesperson.

8 ShibataFenderTeam has supplied the SPC 1600 Cone Fender Systems with a closed steel panel design measuring 3353 x 4334mm and Single Bit Bollards with a capacity of 200 tonnes, to the Middle Harbor Redevelopment Project at the Port of Long Beach, California, USA

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

VDL Automated Vehicles (VDL) has confirmed that it is to provide a new fleet of 77 automated guided vehicles (AGVs) to ECT Rotterdam, operated

by Hutchison Ports. VDL points out that the new units consume 50 per cent less fuel compared to the diesel-powered AGVs that are being replaced. In addition to the battery diesel hybrid drive line, smart vehicle control software is a key contributing factor in the drive to ensure reduced fuel consumption.

Bruks Brazil order

Bruks Siwertell has confirmed a new order from Brazilian operator, Novo Remanso Port Terminal (TPNR), for a Siwertell screw-type ship unloader to serve its grain-handling export operations in located in northern Brazil on the banks of the Amazon River.

Four other, individually owned Siwertell ship unloaders already serve the agricultural market in Brazil. The new ST 790-M unit will be fitted onboard a floating barge and offer a continuous rated capacity of 1,700t/hr for handling soya beans and corn.

Linker goes live

INFORM, the provider of artificial intelligence (AI ) and optimisation software, reports it has successfully integrated “Linker,” a proven middleware into its Syncrotess Rail Scheduler, an add-on solution designed to optimise train unloading and loading processes. This extends system compatibility with all container terminals using a standard Navis N4 Terminal Operating System (TOS) – they are now able to introduce the Syncrotess Rail Scheduler. INFORM reports the first application at the high capacity GCT Deltaport container terminal in Vancouver.

MAY 2021 | 11

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ENVIRONMENTAL NEWS

BIDEN TARGETING WIND POWER

BRIEFS Kashima advancing

The Kashima Port offshore wind project in Japan is advancing.

The partners are Wind Power Group, Tokyo Gas and Vena Energy. The 159.6MW development is to support the Japanese government’s 2050 carbon neutrality strategy project, which has a target of generating over 50 per cent of the country’s electricity from renewable energy sources by 2050.

Construction is slated for 2024 and when operational will support power to over 70,000 Japanese homes per annum.

The USA government has confirmed new plans to boost the country’s development of offshore windfarms, with the specific objective of supplying 30GW of energy to in excess of 10 million homes by 2030.

The ambitious target being set by the Biden administration is going to be funded through investment of more than US$12 billion a year in order to reach this short-term goal.

The announcement further confirmed that there are plans

to designate a new offshore wind development zone off the East Coast, adjacent to the shoreline of New York and New Jersey. The next steps are to offer operating lots by the end of the current year or the start of 2022.

The USA is somewhat late to the development of wind farms for energy. There is just one fully functioning farm in operation, off the cost of Rhode Island on the North Atlantic coast.

However, this position looks set

8 President Biden is setting ambitious wind energy targets

to change, with confirmed other new projects under development adjacent to the eastern seaboard in Delaware, Maryland, Massachusetts, North Carolina and Virginia.

As part of the process, the federal government is also planning to grant up to US$230 million to ports able to support the development of offshore wind energy programmes.

GIANT NORTH SEA RENEWABLE HYDROGEN PLANS An ambitious project to link GW-scale electrolysis to the large industrial demand from the North Sea Port cluster is being developed off the coast of Holland and Belgium.

Danish utility giant, Ørsted, has revealed plans for SeaH2Land, an envisaged regional cross-border pipeline, that will utilise green electricity to produce the renewable hydrogen, generated from the development of large-scale offshore wind.

The companies involved are ArcelorMittal, Yara, Dow Benelux, and Zeeland Refinery.

Collectively, the group will support the development of regional infrastructure to ensure sustainably produced steel, ammonia and ethylene, as part of

the Netherlands and Belgium efforts to accelerate carbon reduction by 2030, and beyond.

The North Sea Port Cluster is a major production and demand centre for fossil hydrogen.

Annually it generates around 580,000 tonnes per year, so the drive to raise decarbonisation efforts could see industrial demand in the area increase by more than one million tonnes per annum by 2050, which is equivalent to around 10 GW of electrolysis.

The Ørsted proposal will connect the GW electrolyser directly to a new 2GW offshore wind farm in the Dutch North Sea. Once in place, it will enable the large-scale supply of renewable electricity required for production of renewable

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

hydrogen. Moreover, the offshore wind farm could be built in zones in the southern part of the Dutch exclusive economic zone, which has already been designated solely for offshore wind development.

A consortium of Yara, Ørsted, and Zeeland Refinery have outlined plans for renewable hydrogen production at their sites.

The conversion of a gas pipeline into hydrogen can be extended further south to ArcelorMittal and further north, underneath the river Scheldt, to Zeeland Refinery.

Overall, this will create a unique regional ecosystem, according to the partners.

The next steps are to establish the framework and policies required and conduct a full feasibility study.

Hydrogen dredger

Dutch-based shipbuilder, Royal IHC, has confirmed that it is progressing with its hydrogen-fuelled trailing suction hopper dredger project. The hopper is referred to as the LEAF (low energy adaptive fuel) vessel and the design has now gained approval in principle (AiP) from classification society, Bureau Veritas. The project commenced in 2019 as a partner partnership between Royal IHC and the Dutch DirectorateGeneral for Public Works and Water Management (Rijkswaterstaat).

Saga Pure invests After recently switching its focus from shipping activities to renewables, Norwegian-based “green investment company,” Saga Pure, has outlined a commitment to invest NOK30 million (US$3.5 million) in a private placement of new shares in IC Technologies AS (ICT). Based in Trondheim, Norway, ICT is developing a storage solution for liquid hydrogen and liquefied natural gas (LNG). Saga will retain a share of around 33 per cent in the company.

MAY 2021 | 13

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The COVID-19 pandemic is putting pressure on globalisation beyond the Trump Administration impacts. The question is: What has gone wrong?

Globalisation and international trade came under significant pressure as a result of the USA’s inward-looking economic policies under the Trump Administration.

China, Europe, South Korea and Japan came under scrutiny and tariff rules regardless of whether friend or foe. The pressure on companies was to look for increased opportunities of home sourcing. Not an easy task in a world that has developed with highly integrated logistics management and low inventory, both a means to control costs.

Initially the trade war highlighted that there were no winners but only costs, mostly for the consumers. It did put some impetus to switch production away from China, in particular, but in many cases that went to Chinese companies. Nevertheless by 2019 we did see that trade growth on long haul routes was

GLOBALISATION STUMBLES UNDER COVID-19 PRESSURE

beginning to weaken after a very long run of growth.

Then came the COVID-19 pandemic and things went wrong as economies began to lock down by February 2020. Global trade collapsed from 14.5 million TEU in December 2019 to 11 million TEU, a drop of 24 per cent

8 Globalisation is here to stay because industry is built on sourcing good materials globally

according to Container Trade Statistics, UK. Trade recovered in March, faltered in April but then grew steadily to reach a high of 15.4 million TEU by October 2020.

Then lockdowns returned and

trade weakened for a few months before consumers began an on-line buying spree that put pressure on ports and carriers struggling with congestions and lack of capacity.

Some things went wrong, however, as nations began to turn to introversion and nationalism in their attempt to maintain their supply lines to reduce dependence on global trade.

This is particularly true for vaccinations as both the USA and the EU moved towards export restriction – in the EU mainly through incompetence of the EU Commission leadership.

Globalisation however is here to stay, at least in the medium term and wars aside, for the long term. Industry is built on sourcing goods, whether consumer or raw materials globally. The impact on ports, current congestion aside, will be minimal and carriers appear to have coped exceedingly well to keep supplies flowing and profits up.

THESTRATEGIST MIKE MUNDY

DON’T FORGET THE LITTLE GUYS With a lot of port sector engagement with the ‘fourth industrial revolution’ (digitalisation) and advanced strategies to achieve zero emissions being deployed, it is quite easy to forget that there are those ports who have not yet got their heads round the basics on either front.

The typical profile of such a port is smaller rather than larger and as a rule not located on a major maritime trade lane – more off the beaten track. Further, the host country may well be a small island state or a smaller nation generally, one which is not so well resourced.

An indication of this is conveyed in the recent IAPH

survey which looked at 111 ports and their state of readiness as regards adopting the IMO FAL requirements on electronic data interchange by 2024-2025. They have to be implemented by the 174 IMO member states by this time but according to IAPH a third of the ports reviewed have yet to commence work on this and basically have no immediate plans.

Another example is getting to grips with achieving environmentally-friendly operations. Experience shows that there are a good number of smaller ports who really don’t know what initial steps to take in this respect and possibly think that this is something beyond

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

their reach when operating with a limited budget.

These two areas of challenge are seen as formidable by many – although it has to be acknowledged not all – smaller ports and the terminal operations they house. How to get started on a low budget and what road map to follow are fundamental questions.

The overall situation is rather reminiscent of when landlord port authorities and port concessions rose to prominence – the smaller to medium size players had a lot of interest but not a lot of understanding of putting these ideas into practice. One event that played a major part in promoting a greater

understanding was the publication by the World Bank of its Port Reform Tool Kit aimed at developing country ports. The eight module Tool Kit provided the framework needed to move forward in a meaningful way.

This poses the thought that the challenges of harnessing the powers of digitalisation and putting in place positive environmental measures may well benefit from a similar approach – essentially step-by-step guides of how to achieve this. Equally, it could be a web site where knowledge and experience can be conveyed and via which the ‘uninitiated’ can ask for advice.

Good idea? Who will step up and turn theory into practice?

MAY 2021 | 15

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THENEWYORKER BARRY PARKER

PORT BRAGGING RIGHTS Well, truth be told, for a while I stopped writing about “Infrastructure” bills from Washington, DC after an almost handful of failed efforts. This time, it may be different, but I am not holding my breath.

Political infighting at the Capitol, as fierce as ever, may well slow down the process of converting good ideas into legislation and, eventually, authorisation of funds. The good news is that the American Society of Civil Engineers (ASCE) gave the port sector a “B-“ mark in its annual report card of various infrastructure sectors, way above the “C-“ earned by USA infrastructure overall.

For ports, ASCE explains the challenge as follows: “… a port’s success is reliant on the infrastructure outside of its gates, which is often congested or in poor condition. For example, just nine per cent of intermodal connector pavement — the portions of roadway that connect

a port to other modes — are in good or very good condition….”

This is a different way of stating the obvious- that “a (supply) chain is only as strong as its weakest link.”

Port executives cannot go around filling potholes, so what to do? The ASCE write-up points to the answer, stressing employment and dollars, “30.8

8 Ports have been graded above total USA infrastructure, according to ASCE

million jobs in 2018 and 26 per cent of the total GDP” is tied to seaports. Ports need to keep hammering that national message. In each case, there is a local angle as well, so that regional contributions (sometimes invisible where the

ports are far from population centres or tourist destinations) must also be highlighted.

The ASCE notes that smaller ports sometimes face difficulties in applying for Federal grant money. The answer here is also to look regionally, many states may offer funding programmes that are not as well-known as USDOT/ MARAD sources. Another aspect of port messaging is the pro-activity in expediting movements of cargo around the docks. At a time that “congestion”, “vessels at anchor” and “long wait times” are trumpeted around the news, I’ve seen some forwardthinking efforts to improve flows at terminals with what deep sea shipping folks might call “Market Based Measures”.

OK, it’s not as complicated as carbon trading, but in practical terms, ports can offer financial incentives for speedier landside truck turnarounds. Plus, yes, they should brag very loudly about what they are doing.

THEANALYST PETER DE LANGEN

UNCONVENTIONAL STEPS TO COMBAT CRIME? Drug crime has been present in ports for centuries and is unlikely to ever go away. In some ports, like Rotterdam and Antwerp, much more attention has been given to drug crime recently. It is increasingly clear that workers in various activities, such as terminals, container depots and warehouses are vulnerable. Criminal groups actively try to get these workers to work for them. Given the huge ‘street value’ of drugs, the financial benefits for the workers are huge. Yet it does not stop there, crime groups also seek to force such workers into cooperating with them through extorsion and threats.

Such efforts of organised crime increase when the options to traffic drugs without ‘people on the inside’ become less

attractive, for instance because of improved physical barriers in port areas. A recent study in the port of Rotterdam found an enabling role from workers in all the police investigations that were studied. The role of corrupted port workers may range from a relatively small role through passing on information about the whereabouts of ships or containers to more active roles such as facilitating access or moving containers to specific places.

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

8 Rotterdam is focusing on the prevention of drug crime

The active efforts of organised crime to ‘recruit’ workers may reach such levels that an active approach may be called for, as simply relying on the police to fight crime is not good enough.

While I have no expertise on fighting crime at all, to me it seems sensible to identify groups of workers in ports that are vulnerable to such recruitment practices and to develop a special ‘regime’ for them. Such a

special regime may be able to protect them better and may also increase the risks associated with recruitment efforts for organised crime. While there may be all kind of legal barriers that I am ignorant of, such a regime could consist of upfront screening of new workers as well as monitoring such workers and encouraging incentivising them to report recruitment efforts.

Such a regime requires formalised cooperation between the involved companies, workers (represented by their unions) law enforcement entities and the port authority. While such efforts can be viewed as Orwellian state control, one could also think of them as efforts to protect vulnerable workers from increasingly active and sometimes aggressive crime groups.

MAY 2021 | 17

Antwerp 2021

COASTLINK Conference Hosted by:

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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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NEWS FEATURE

ZAGREB PIER QUESTIONS A second tender has been issued for the Zagreb Pier container terminal in Rijeka, Croatia, but the way it has been let and operator selection criteria fall far outside the norm. A J Keyes reports

After an initial failed tender process concluded in 2020 a second tender process for the Zagreb Pier Container Terminal, Rijeka, is back on the table but that’s where the similarity between the two processes ends.

The first tender process, reportedly cancelled due to a multiplicity of reasons extending from the COVID-19 crisis through to interfacing road issues, ran from early May 2019 through to March 9, 2020 when the official opening of the submitted bids took place – nearly a year.

The second tender process, taking place at the time of writing, runs for just 35 days and concludes on April 26 – an unusually short period for a capital-intensive project of this magnitude.

The operator selection criteria for the first tender was broadbased, as is typically the case with a new container terminal platform. It was essentially a multi-criteria bid based on a technical submission and a financial one. Points were awarded within the technical submission across a number of criteria – business plan, operational set-up, performance criteria etc., these type of factors – and of course points were awarded for the financial bid.

Whichever entity secured the highest number of points across both elements won.

The current tender process is in name a multi-criteria tender but if the truth be told in reality it is not.

It is not sufficiently broad in its evaluation criteria to justify such a classification. It is striking that guaranteeing container traffic volume is basically the over-riding point of influence in the bid criteria accounting for 90 per cent of the points awarded. It is, when weighed against normal container terminal tender criteria, highly unusual to have one criteria exerting such a big influence.

‘‘

Does this mean the winner has already been decided?

WHAT IS GOING ON? There are decades of experience now with container terminal tenders and what this experience tells us is that when bid submission arrangements and tender selection criteria of the type referenced above are in play then they are there for one reason only, namely, to push the result in a preferred direction. In this case it seems to have shipping line or shipping line

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

affiliated terminal operator written all over it!

This supposition is further supported by the financial arrangements in the second tender – for example, the annual concession fee is fixed at a much higher level than the original tender, over five times higher than the minimum concession fee in the original tender which could be bid higher. There is also a variable fee component related to turnover, with both these elements realistically only being commercially acceptable to a shipping line or shipping line affiliate that is in a position to guarantee throughput including by diverting it from another gateway port or terminal, with the latter possibly including the existing container terminal in Rijeka, the Adriatic Gate Container Terminal.

BIG QUESTIONS The ‘rules of engagement’ with the current Zagreb Pier tender process are such that they pose big questions.

The funding behind the project has come from the World Bank (over €100 million for the terminal development) and the European Union via its Connecting Europe Facility to provide rail linkage to the terminal (over €28 million) as

8 Zagreb Pier has previously been the source of criticism focused on need and now the second tender process appears to have major flaws

well as 85 per cent of the €68m for the D403 road connection to Zagreb Pier.

Both these institutions strongly promote the presence of a level playing field in order to maximise competition in tenders and especially in high value tenders.

The World Bank, for example, says: “Standards and technical specifications quoted in bidding documents shall promote the broadest possible competition” and on recommended tender durations, “Where large works or complex items of equipment are involved, this period shall generally be not less than 12 (twelve) weeks…”

It is clear that the latest Zagreb Pier tender process is not compliant with these values. It is highly unusual for this to be the case, especially for an EU country.

Bottom line, there appears to be a case to be answered as to why the latest tender process is structured to favour a shipping line category bidder and why the tender timing arrangements also work to discourage a broader base of bidders? Does this mean the winner has already been decided?

MAY 2021 | 19

Piraeus2021

GREENPORT Cruise Congress &

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GREENPORT

BALANCING ENVIRONMENTAL CHALLENGES WITH ECONOMIC DEMANDS

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DAY ONE - Wednesday 20th October 2021 0800 Coffee and registration 08:30 Opening by Chairman/Moderator 08:35 Welcome Address by Port of Piraeus

Keynote addresses 08:45 The Political Agenda of European Ports Isabelle Ryckbost, Secretary General - European Sea Ports Organisation Roger Strevens, VP, Global Sustainability - Wallenius Wilhelmsen

09:30 Q&A with Presenters and special guests

Session 1 – ‘Sailing in the LNG era’ – Poseidon MEDII Project 10:00 The Poseidon MEDII Project aims to contribute to reducing negative impacts of heavy fuel oil powering and to facilitate the implementation of the requirements of a number of EU Directives regarding alternative fuels for a sustainable future in the shipping industry. This panel showcases the projects partners on how they are successfully contributing and implementing the project.

11:00 Coffee & Networking

Session 2 – Cruise Stream A sustainable future – developments in Green Cruise Terminal Projects 11:30

Congress Stream Sustainable development in Port Infrastructure – learning through collaboration 11:30

Introduction by Port of Piraeus 11:45

The environmental management of small ports – challenges and options Christopher Wooldridge, Honorary Research Fellow - Cardiff University

Best Environmental Practices in Port Reception Facilities.

Stelios Karampelas, Head of Port Reception Facilities - Antipollution

Siemens* Caroline Price, Green Ports Director - Royal Haskoning DHV

12:00 12:00

12:00

12:00

Recent advances in harmonizing marine seaport infrastructure with the environment Wiebe de Boer, Sr. Project Manager Ports & Coasts - Deltares The EU green deal and the Western Balkans Maritime Ports of the extended TEN-T Network – Challenged and opportunities Kristijan Lezaic, Desk officer for Waterborne Transport - Transport Community

12:15

Q&A

12:15

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13:00 Lunch & Networking

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For further information please call +44 1329 825335 or email congress@greenport.com Session 3 – Cruise Stream What’s next for the cruise industry – taking a look at the latest in sustainable cruise ships & technological innovation

Congress Stream Policy & Environmental Workshop - ESPO

Ms Valeria Mangiarotti, Senior Vice President 14:10 and Director of Sustainability and Environmental Issues - Medcruise 14:30

Workshop facilitators: Christopher Wooldridge, Honorary Research Fellow - Cardiff University

14:50 15:35

Moderator: Valter Selén, Senior Policy Advisor Sustainable Development, Cruise and Ferry Network, EcoPorts Coordinator - ESPO

Q&A

Rosa Mari Darbra Roman, Professor - Universitat Politècnica de Catalunya

15:50 Coffee & Networking

16:20 Session 4 – Greening of Ports and Shipping including alternative fuel projects 16:20 Title to be announced Introduction by Port of Piraeus 16:50 Ammonia as an alternative fuel Mr Malte A. Siegert, Chairman - NABU 17:20 Q&A Conference Close Conference Dinner

DAY TWO - Thursday 21st October 2021 0820 Coffee and registration 08:30 Opening by Chairman/Moderator 08:35 Morning Welcome Ms. Lamia Kerdjoudj-Belkaid, Secretary General, Federation of European Private Port Companies and Terminals

Keynote addresses 08:50 IAPH/WPSP sustainability initiatives on the decarbonisation and digitalisation of ports Dr. Antonis Michail, Technical Director, World Ports Sustainability Program, IAPH ESPO Environmental Report.

Valter Selén, Senior Policy Advisor Sustainable Development, Cruise and Ferry Network, EcoPorts Coordinator - ESPO

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Book Online at greenport.com/congress or fax form to +44 1329 550192 09:10 Session 5 – Powering Ports - Energy efficiency improvements and on-shore power supply Local renewable power generation and energy efficiency measures in smaller ports Mr. Alex Ruijs, Senior Consultant Electrical Power & Energy - Royal HaskoningDHV 09:25 Onshore power case studies in the Baltic sea area Mr. Klaus Kopelman, COO - Shore-Link Q&A 10:40 Coffee & Networking

11:00 Session 6 – Port Equipment - Supporting the drive for improved sustainability & efficiency The green transition: Towards fully electric operations Mette Kjems Baerentzen, Product Portfolio Manager – Kalmar* 11:10 Q&A Panel Discussion 13:00 Lunch & Networking

14:00 Session 7: The Green Deal – moving forward with green logistics FEPORT 15:00 Q&A 15:20 Coffee & Networking

15:50 Session 8: Digitalisation for improved port efficiency Pixel Project & Green C Ports Project Port Piraeus 16:05 Taking Small and Medium Sized Ports on Board with Digitalization Mr. Ville Mäkeläinen, Chief Business Development Officer, GISGRO 16:20 Sustainable Electrification and Digitalisation for Greening Small and Medium-Sized Ports along the TEN-T Corridors Christopher MEYER, M.Sc - Wismar University of Applied Sciences: Technology, Business and Design* 16:35 Inform* 16:50 Q&A 17:10 Conference Wrap up by Conference Chairman/Moderator Conference Close *invited

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BRAZIL: RO-RO

BRAZIL RO-RO CHALLENGES After a torrid 2020, operators of Brazil’s ro-ro terminals are hoping for a significant improvement in vehicles handled this year but challenges remain. Rob Ward investigates

8 While Ford is closing production in Brazil, TEV is now importing Ford Rangers into Brazil from Mexico

During the pandemic afflicted year of 2020 Brazil exported only 324,330 vehicles, down 25.2 per cent from the 433,512 units in 2019, which, according to the Brazilian Association of Automobile Manufacturers (ANFAVEA), is the lowest since 2002. Another major factor affecting exports is the dire straits of the Argentina economy, as this is the main destination for car exports out of Brazil.

In terms of imports to Brazil the number of units was down 28.9 per cent from 297,658 in 2019 to 211,619 items last year, the lowest for at least 20 years. Imports are never again likely to reach the peak of 858,037 units in 2011, according to figures from Sindipecas, the Brazilian National auto-parts Association.

VOUMES DOWN BUT SHARE UP AT TEV, SANTOS Terminal de Veiculos (TEV) in Santos is the biggest car terminal in Brazil and last year handled around 30 per cent of all vehicles exported out of the South American country.

Despite that it also suffered a 15 per cent drop in export units down to 130,000 vehicles.

Overall handling at TEV was down from 175,000 units to 152,000 vehicles, but despite this being a 14 per cent fall TEV’s share of the Brazilian market actually increased due to bigger losses elsewhere. TEV’s imports totalled 22,000 units, down around 25 per cent from 2019.

Ford Motor Co, already dealing with falling demand in Brazil owing to the COVID-19 pandemic and economic uncertainty, dealt a heavy blow in January 2021 when it announced it would be closing all production facilities there - it already began closing its plant at Camacari, in Bahia, near Salvador, but is adding Sao Bernardo do Campo and Taubaté to the redundant list.

This decision is having an immediate detrimental impact on TEV but the ro-ro operator – part of the Santos Brasil container handling group, which operates Tecon Santos and

20 | MAY 2021

the Vila do Conde box terminal in the north of the country – is already offsetting some losses by importing Ford vehicles from Mexico.

Historically car imports into Brazil have gone to ports such as Vitoria, in the state of Espirito Santo, which has offered import and state tax concessions/exemptions but the government of Jair Bolsonaro, and his Economy Minister Paulo Guedes, have done away with many of these incentives.

This means that ports with superior logistics infrastructure – such as Santos, Paranagua and Rio de Janeiro – will now handle more auto imports in the future.

FORD BEING REPLACED BY FORD Ricardo Santos Buteri, Chief Commercial Officer and Commercial Director, TEV, is optimistic that imports from Ford can compensate for the loss of Ford exports and from other auto makers.

“It was sad news for the auto sector that Ford is leaving but we are currently importing the Ford Ranger SUV from Mexico as a new product,” Buteri told Port Strategy. “Last year was terrible for our volumes, due to the pandemic and all the other related reasons, but we have made a good start to this year with almost a third more vehicles handled so far [up to the end of March].”

He explains further: “During the first three months of this year we have imported 4,315 Ford vehicles from Mexico, and we are confident this trial will continue as it makes up for some of the Ford exports that will no longer be manufactured at Sao Bernardo and Taubaté. [Ford auto plants located close to Sao Paulo].”

He adds that more than 90 per cent of those Fords were Rangers and that TEV had “got off to a flying start” in 2021 as it handled 30,750 vehicles, 30 per cent higher than the same period of 2020.

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

BRAZIL: RO-RO

‘‘

Brazil is on the comeback trail with ro-ro vehicle volumes but…

Buteri further notes that one of his key clients, who imported/exported 50,000 automobiles last year “is forecasting at least 30 per cent more units this year”, and so there is “good cause for optimism”.

The TEV executive says he expects around nine calls from car carriers each month, and its key clients are K Line, NYK and Wallenius Wilhemsen Ocean.

TEV used to have competition in Santos from Deicmar, on the right bank of the port, but it closed its operations about six years ago, although the multi-purpose terminal of Ecoporto Santos (ex Tecondi) has been hosting a regular roro service from Grimaldi Lines since 2019. It brings Land Rovers from Tilbury (UK) and BMW/Mercedes Benz from Hamburg (Germany).

Grimaldi previously called at Deicmar and executives from the Italian owned company were disappointed to hear that Diogo Piloni, the Minister for Ports, has refused to grant a concession extension to Ecoporto Santos from 2023, when its current term expires, as this will leave TEV with a virtual monopoly.

Several years ago, Grimaldi looked at the possibility of building its own ro-ro terminal somewhere in Santos, possibly at a greenfield site close to the entrance to the port, but the plan got bogged down in “bureaucratic red tape.”

The second biggest port for vehicles is Paranagua, with Rio de Janeiro third. Along with Santos these ports collectively account for around 75 per cent of all exports from Brazil.

VW EXCLUSIVITY IN PARANAGUA In Paranagua, VW has its own terminal and proudly protects its exclusivity but its stevedoring, as with the other two main users of the port – Renault and Audi - is currently being carried out by Marcon Logistica Portuaria.

Last year Paranagua handled 69,940 export units and 18,311 import vehicles, which was 37.7 per cent down compared with the 141,779 units handled during 2019. Import volumes plummeted from 53,590 to 18,311 units, while exports fell from 88,189 to 69,940 vehicles.

Marcon Logistica handled 60,289 vehicles during 2020 from 74 car carrier calls, which saw the struggling Argentine carrier, Maruba, leading the way with most calls, followed by NYK and K Line. Wallenius Wilhemsen Ocean made 19 calls but with much smaller loadings per vessel.

Patrick Ferreira Tavares, Commercial Director, Marcon, says VW has a contract to run its own storage and warehousing in the port until 2028 and his company has a contract to undertake stevedoring until then.

“There will also be new competition here over the next three years or so because Ascensus has won a concession to build a new car terminal on a greenfield site near the port,” Tavares explained.

Grimaldi, the Italian ro-ro operator, has not been the only one seeking its own terminal in Brazil.

NYK – split from NYK Line box carrier which merged into ONE – is still a key player in the Brazilian car carrier scene and was looking closely at investing in its own terminal in Suape, the northeast port in Brazil which has a superb strategic location that would make it an ideal hub port for carriers of various cargoes; but especially containers and ro-ro.

A shipping agent who works closely with NYK in Brazil notes that the Japanese line had shown a “keen interest” in

the proposed tender process to operate a ro-ro terminal in Suape back in 2015 but, again, bureaucratic red tape (involving promises to keep rate concessions for existing port users and not allowing a concession winner to set market rates), saw the plans falter.

8 Grimaldi has in the past looked at establishing its own terminal in Brazil and NYK is also now looking at Suape

RIO DE JANEIRO TAKES MASSIVE HIT Some 200 miles East Northeast from TEV and Santos lies the port of Rio de Janeiro and MultiCar, the third biggest handler of automobiles in Brazil. After taking a massive hit from COVID-19, total units handled fell from 7000 per month at the start of 2020 down to just 100 in May 2020.

On both the container and auto front, Rio de Janeiro is more of an import port/city than an export source but in recent years export of vehicles - especially Fiat and Peugeot/ Citroen – have boosted exports. By 2019 there was a 46 per cent share for imports and 54 per cent for exports, but during 2020 this trend reversed to 55 per cent for imports and 45 per cent for exports.

Luiz Henrique Carneiro, CEO, MultiCar, explains that 2020 was “an extremely tough year.”

“MultiCar was virtually closed during May because the car manufacturers closed down their plants for a period but then we went from close to zero in May to just over 7000 units in November and then 7,605 vehicles in December. Demand was definitely improving at the year’s end and those results were about the same number that we had in November and December of 2019.”

Overall for 2020, MultiCar handled 50,435 units, down 26 per cent on the 68,500 vehicles of 2019. Of this total, imports were down zero per cent to 28,735 automobiles, but exports were down 41.2 per cent to just 21,706 units.

However, 2021 has started positively. MultiCar has made a solid start with imports which rose by 33 per cent during the first three months compared to Q1 2020, with 9,888 vehicles handled compared with 7,435 units.

Unfortunately, exports dived dramatically by 55.6 per cent, from 8,058 units down to 3,576 vehicles, to give a total for the first quarter of 13,464 units, down 13.1 per cent. Exports crashed due to the fact that 80 per cent of the vehicles are usually destined for Argentina, which is struggling economically.

Owned by the diversified Multiterminais Group (itself owned by the Klien family), MultiCar has served the giant Rio de Janeiro conurbation (with a population of 13 million people) for several decades. As well as Fiat and Peugeot/ Citroen, the operation also serves Jaguar Land Rover, Chrysler, Iveco and MAN (VW Trucks).

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

MAY 2021 | 21

NORTH AMERICA/EUROPE: MAJOR PORT PROJECTS

THINKING BIG In the first of a two-part global assessment, Felicity Landon reports on some of the largest port investment projects in North America and Europe Ports have been on the frontline when it comes to the COVID-19 response – continuing to operate despite the challenges and dealing with extreme volatility, including the spike in demand for all manner of lockdown-related cargoes.

And now? The talk is of investment post-pandemic. In the USA, Biden has described his US$2 trillion “American Jobs Plan” as a once-in-a generation investment for improving the country’s infrastructure and shifting to greener energy. Within US$621 billion for transportation infrastructure and resilience, US$17 billion is earmarked for inland waterways, ports and ferries.

In Europe, the EU’s Recovery and Resilience Facility is seeking to implement a green, digital and resilience recovery of the economy. The European Sea Ports Organisation (ESPO) has called on EU member states to take port projects onboard in these plans. To continue to play their role, Europe’s ports must remain resilient and fit for the future, it says.

Policy, of course, is only one part of the picture. Port investment, development and expansion projects are not dreamt up overnight, and they continue around the world.

The influence of political decisions post-COVID-19 remains to be seen.

The following is a summary of major port projects in North America and Europe.

8 USA South Carolina South Carolina Ports Authority (SC Ports) opened the new Hugh K. Leatherman Terminal in April, saying that the first container terminal to open in the US since 2009 would spur economic development, add much-needed capacity and further the state’s position as an international business destination for years to come.

Phase one, price tag of US$1 billion and capacity for 700,000TEU, has provided 1,400ft (426 metre) of berth, capable of handling a 20,000TEU vessel, with five ship-toshore cranes said to be among the tallest on the US East Coast, supported by a 47-acre container yard with 25 hybrid RTG cranes and a six-acre refrigerated cargo area with sixhigh container racks, enabling handling of more fresh, refrigerated and frozen goods.

The opening of the terminal came at just the right time, states Jim Newsome, CEO, SC Ports, as many container ports in the country continue to handle unprecedented cargo volumes amid strong consumer demand. SC Ports had an all-time cargo record in March 2021, with a 50 per cent yearon-year increase in loaded imports.

When completed, the US$2 billion Leatherman Terminal will provide three berths, adding 2.4 million TEU of annual throughput capacity and doubling the current capacity at the Port of Charleston.

Houston The Houston Ship Channel Expansion will widen and deepen access for vessels calling at the port’s eight public terminals and more than 200 private facilities operating along the channel. In January 2021, the Port of Houston received notification from the US Army Corps of Engineers (USACE) that it was awarded a ‘new start’ designation and US$19.5 million in federal funds to begin the project.

22 | MAY 2021

Lisa Ashley, Public Relations Director, Port of Houston notes: “We are pleased that the Houston Ship Channel Expansion programme – known as Project 11 – is moving from the planning and design phase to ‘moving dirt’. We expect oyster mitigation and the first channel dredging projects to start in the fourth quarter of this year.”

Work to prepare the first dredged material placement area is expected to start as early as the second quarter after a contract award in April 2021. The mitigation and first dredging contracts are to be issued in the third quarter. The schedule allows for three to four years to complete priority segments, which cover most of the length of the channel, with remaining segments to follow.

In November 2020, USACE ranked the Houston Ship Channel as the number one USA port in terms of total waterborne tonnage – the waterway handles an average 50 deep-draft vessel transits every day. The widening and deepening will provide a safer and more efficient waterway and accommodate the larger vessels carrying container and petrochemical products, says Ashley.

Roger Guenther, Executive Director, Port of Houston points out: “Import and export container trade through Houston continues to be very strong and we are aggressively making

8 USACE ranked the Houston Ship Channel as the number one USA port in terms of total waterborne tonnage, so the widening and deepening is definitely needed

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

NORTH AMERICA/EUROPE: MAJOR PORT PROJECTS the capital investments to stay in front of the demand we expect in the near and long term. We have several upgrades and improvements planned, especially for our container terminals.”

Three new ship-to-shore cranes should be operational in the Bayport Container Terminal by the autumn; three STS cranes are being moved from Bayport to Barbours Cut container terminals, where quays are being refurbished to accommodate them. “We are also providing new and more yard capacity at both terminals. Later this year, we are expecting to award a design contract for Yard 2 at Bayport,” said Guenther.

In addition, a US$42 million upgrade is expected to double truck gate capacity at Barbours Cut. 8 CANADA Roberts Bank Terminal 2 Vancouver Fraser Port Authority’s Roberts Bank Terminal 2 project has been undergoing a federal environmental review since 2013. The proposals are for three container berths, a widened causeway to the mainland to accommodate road and rail, and an expanded tug basin.

After a three-year review of the environmental assessment, the review panel submitted its report to the environment and climate change minister in 2020 but more information was requested in August 2020. The port authority will provide this by summer 2021 and is hoping that a decision by the federal government can be made soon after, explains Duncan Wilson, Vice President, Environment, Community and Government Affairs for the Vancouver Fraser Port Authority.

“Ultimately, the construction start date depends on many things outside of our control, such as COVID-19, the timing of the federal government’s decision on the project and approval of the required permits,” he said.

Current thinking is that the earliest that construction can begin is 2024, with the project in operation by the early 2030s.

Roberts Bank Terminal 2 is more important now than ever before to meet Canada’s trade aspirations with Asia, underlines Duncan Wilson, Vice President, Environment, Community and Government Affairs for the Vancouver Fraser Port Authority. The port’s container volumes increased by two per cent last year to reach a record 3.5m TEU, despite the pandemic and global economic uncertainty.

“Since 2001, ports on the west coast of Canada have, on average, handled more than seven per cent growth annually in the container sector, quickly recovering from temporary downturns such as the effects associated with the 2008 global financial crisis or the slowdown in 2016 related to US port labour disruptions in 2015.

“Forecasts continue to confirm that Canada’s west coast ports will run out of space to handle container traffic by the mid to late 2020s, years before Roberts Bank Terminal 2 is operational. Once space runs out, Canadian farmers, producers, and businesses will have difficulties sending and receiving their commodities and goods to and from overseas markets,” he says.

“The port authority continues to advance the project as quickly as possible to provide much-needed capacity to support Canadian businesses in this time of economic recovery.”

8 EUROPE Netherlands: Rotterdam Expansion at Maasvlakte II continues this year.

In February 2021, the Port of Rotterdam Authority awarded to the HOCHTIEF, Ballast Nedam and Van Oord contractor consortium the contract for constructing 1825 metres of

deepsea quay, 160m of inland shipping quay and 360m of soilretaining walls at the Princess Amalia Harbour, a project which will add four million TEU of annual capacity in Rotterdam.

APM Terminals and Rotterdam World Gateway already operate 1500m and 1700m of quay, respectively, in the harbour and both have signed relevant options to develop further. The project will also provide a 160m waiting area for general use by inland shipping vessels.

The completion of the first 500m of quay wall is expected in late 2022, with the final part of the project to be be completed within 18 months.

8 Expansion of Maasvlakte II in Rotterdam is one of the larger infrastructure port projects in Europe

Poland: Gdansk, Gdynia, Swinoujscie Gdansk The Port of Gdansk is reaching the conclusion of a €36.6 million investment in road and rail infrastructure which has included 10km of roads, 7km of rail tracks, numerous junctions, four flyovers and other facilities.

The work ties in with the A1 motorway project linking the Czech Republic with Poland’s Baltic Sea coast and Gdansk, which is already 85 per cent complete. In 2022, it will be possible to drive directly and without traffic lights from the Port of Gdansk to Ostrava, Brno, Prague and Bratislava, said Lukasz Greinke, President of the Port of Gdansk Authority.

The port is also moving ahead with a project to upgrade and develop quays and deepen the access to the inner port.

Gdynia The Port of Gdynia’s plans for a new outer port involve the construction of an artificial peninsula and the creation of a new deepwater container terminal with 2.5 million TEU annual capacity, capable of handling vessels up to 430m in length, 60m wide and 16m draft, the largest vessels that can enter the Baltic Sea. The project also includes dredging of basins and approach channel, and new road and rail connections. The current timetable is based on obtaining a permit for phase one by 2024.

Swinoujscie Szczecin and Swinoujscie Seaports Authority has plans for a series of development projects, including dredging the channel to 12.5m the entire length, now underway, and dredging the access route from the Baltic to Swinoujscie to 14.5m first, and later to 16.7m. This will serve a planned external port in Swinoujscie with 17m depth, to provide a container terminal able to handle the largest container ships in the Baltic as well as feeders, general cargo terminals and an LNG terminal.

The plans also include modernising and rebuilding road, rail and waterway infrastructure and providing new connections with the Oder and Danube for inland shipping.

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

MAY 2021 | 23

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POLITICS VERSUS TRADE

K2 FOR BULK PORT PLANNERS? The fallout from the worsening Australia-China trade relations has implications for the port sector today and longer term. Analyst Andrew Penfold assesses the situation

8 Indonesia is one of a number of coal suppliers that has seen increased demand from China

Much has been made of the large tariffs slapped on containerisable products such as wine and seafood by China, but clearly the main point of conflict is the unofficial trade war with regard to the import of coal into China. This has seen Australian imports of both thermal coal (for power generation) and metallurgical coal (for steel production) dwindle to virtually nothing.

There is no official block in the latter respect by the Chinese authorities but a quite effective tacit ‘nod’ from these parties to Chinese coal buyers that Australia is not to be dealt with.

CHINA – AUSTRALIA RELATIONS UNWIND Trade relations between China and Australia have been growing tense for some time. Matters reached a head with Australia calling for an independent inquiry into the origins of COVID-19, with this precipitating both increased tariffs and de facto embargoes on Australian products.

This highlights the vulnerability of trade to political distortions – considerations that have largely slumbered in recent years. There can be far-reaching implications for port development and risk calculation.

For the time being Australian coal producers seem to have navigated the loss of the high demand Chinese market rather well – as explained below.

Australia has traditionally been China’s primary source of coal and iron ore.

Steel production is central to the Chinese economy and will be especially important as part of the planned infrastructure investment programme designed to lift the country’s growth post-Covid.

Despite these unresolved issues, it has been reported that – in value terms – Australian exports to China reached record levels in 2020, with a further growth of 8.2 per cent in January and February. The position is complex, however, with lost coal revenues more than offset by soaring prices for iron ore – the number one commodity – and LNG. China has been the only economy to (officially) record economic expansion in 2020 and it seems set to record a strong recovery in 2021. The IMF estimates 2020 growth at 2.2 per cent with 8.4 per cent slated for 2021. This growth will be based upon a strong stimulus to the economy driven by a massive infrastructure programme. This means increased steel demand.

Although China has been increasing investments in (scrapfed) Electric-Arc production, the total level of demand for blast furnaces continues to expand with China producing 1052m tonnes of steel in 2020 (up 5.2 per cent).

There are plans to increase production by around 3 per cent this year despite the ongoing unofficial blackballing of Australian coal spanning both metallurgical and thermal imports. One very visible signpost of this is the large number of bulk carriers that remain anchored in the Bohai Gulf most of which have coking coal onboard. The number is dwindling but remains in double figures.

The fact remains, however, much of the Chinese steel and power generating sectors have been optimised for high quality Australian coals.

WHAT DOES THIS MEAN FOR GLOBAL COAL TRADE? In the near-term other exporters have stepped-up to service booming Chinese demand. Indonesian thermal coal exports to China have climbed significantly in the wake of reduced coal purchases from Australia. Similarly, South African coal is now reaching China for the first time in many years – with this focused on lower quality coal for power generation. These increases have been reciprocated by a drop in shipments to India and Pakistan, with Australian coal picking-up a substantial part of the deficit in these markets. Other beneficiaries have been Russia and Mongolia, although in both cases there are questions over availability and quality.

For coking coal, the only real alternatives for high quality supplies are Canada and the USA. BC coal, from the former, is a clear option and there is scope to raise production and exports within the existing port and supply chain infrastructure. The USA has the capacity and the quality coal, but prices are high from this historic ‘swing supplier’.

Given the emergence of the co-called ‘Quad Countries’ (the USA, India, Australia and Japan) as a political force as a counterweight to China it is far from clear how far China can rely on the stability of these sources in coming years. There may be short term opportunities for these suppliers, but the position remains fluid.

It is apparent that there are no real untapped potential suppliers of coal that could step into the gap here. With China set to rely on lower quality secondary suppliers and overland shipments from Mongolia and Russia, the scope for

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

MAY 2021 | 25

POLITICS VERSUS TRADE significant port/terminal uprating is limited. China is boosting domestic production in a push for self-sufficiency but in reality, this is not achievable.

Maybe self-interest will resolve the situation?

WHAT ABOUT IRON ORE? The position is very similar for iron ore. China is dependent upon Australian iron ore and this rather undermines the ‘trade war’ approach – at least in the short term. Australian ore shipments to China increased by seven per cent in 2020 to around 713 million tonnes with Brazil being the number two supplier at 236 million tonnes. These ores are high quality with iron content of around 62 per cent.

Prices remain high at around US$170/tonne and surging demand has seen increased shipments from other suppliers.

For example, Indian shipments rose by 90 per cent to nearly 45m tonnes last year. This was made possible by weaker domestic steel production which increased export availability.

As local demand recovers, however, there will be further positive pressures on prices. China has also sought to increase use of lower quality ores (Indian ore is typically in the sub-58 per cent range) primarily to mitigate soaring prices.

Generally, in the near term, there is very little that China can do to reduce reliance on Australian iron ore imports.

However, there are clear moves underway to change this. At the centre of China’s strategy is the development of the highquality iron ore deposits in Guinea. These reserves represent the most significant untapped ore in the world with the Zogota and Simandou reserves already earmarked for development by various Chinese interests. When they finally

‘‘

For now China remains dependent on Australian iron ore but longer term… come on-stream they will provide a third source of high quality iron ore on the global market with long term shipping contracts proposed for China.

Development of these resources has proved highly problematic for several years with failures to agree on the very expensive rail link to tidewater and a new port development repeatedly frustrating development. In late 2020, however, the China-backed multi-national consortium which holds significant mining rights in the massive Simandou iron ore deposit received approval from the Guinea Government for its plan to build a 650km railroad from its two iron ore production blocks to deep-water export port in Guinea as part of its mining project. Start-up operations are envisaged in 2024-2025.

Recently, increased interest has also been noted in shipping these ores via Liberia to the port of Buchanan – a cheaper but less desirable outcome from the Guinean perspective. This is another long running story extending to around 10-years.

OTHER SOURCES OF SUPPLY There have also been plans brought forward to develop iron ore supplies from Algeria.

The proposed US$2bn project would develop reserves in

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POLITICS VERSUS TRADE Tindouf province and boost Algeria’s moves to reduce dependence on oil revenues and allow the development of the southwest region of the country. Chinese interests are to fund this.

This type of project can be seen as at the margin of China’s strategy with the ore targeted having typically a metal content of around 30 per cent. Such a project will have clear requirements for port and inland investments on a large scale.

It seems certain that China will develop such projects if only to reduce current reliance on Australia, but the scheduling remains highly uncertain.

WHAT SHOULD PORT INVESTORS DO? One of the major outcomes for port development will clearly be the requirement for a new generation of export terminals to service new bulk commodity suppliers to China. However, the realistic timing of these projects remains unclear with delays making investment increasingly problematic and the subject of deepening political risk. These projects invariably include massive associated hinterland investments – especially rail links – and governments are becoming increasingly concerned about the geopolitical aspect of Chinese investment. Indeed, the world is wising up to the potential ‘debt trap’ of the Belt and Road Initiative.

In addition, as secondary ore (and coal) exporters seek to extend their reach to meet Chinese demand there will be pressures to increase the size of vessels deployed – especially in longer-haul trades. Port modifications to meet these needs will be a potential business stream.

However, for investors in port and terminals the message

8 Rail-based export routes from the Simandou iron-ore project – the route to near Conarky involves contruction of a 650km railroad

is clear: demand will be strong, but you need deep pockets, patience, and a comprehensive approach to risk management to take part. Once again, it is clear that so called ‘managed trade’ is a lose-lose situation from the economic viewpoint with infrastructure investors potentially caught in the middle.

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MAY 2021 | 27

UKRAINE: PUBLIC-PRIVATE-PARTNERSHIP

UKRAINE: UNLOCKING CONCESSION POTENTIAL Oleg Matiusha, Counsel, Head of Infrastructure, Kinstellar, Kyiv, draws on first-hand experience to explain the role of improved concession arrangements in the Ukraine’s port plans

8 Chernomorsk container terminal, on the agenda for privatisation this year

The port industry plays a key role in the Ukrainian economy and is responsible for 40 per cent of the country’s international trade. However, despite having the largest port potential in the region with 13 state-owned seaports located on the coasts of the Black and Azov Seas, the country’s port industry continues to struggle with various problems.

The recently adopted National Transport Strategy and Sea Ports Development Strategy demonstrate the government’s intention to resolve the key challenges for the industry by establishing specific measures to reform and modernise the port sector. These address issues such as insufficient state management, the lack of deep-water anchorages, inadequate condition of public transport infrastructure, the fragmentation of port lands and assets, etc.

As expected, due to the lack of fiscal resourcess the government is seeking alternative ways of financing for its ambitious plans without increasing the state debt.

Engagement with the private sector for the modernisation ion of the country’s port infrastructure appears to be the most viable option to implement such plans. The following owing projects completed in the past three years demonstrate te the interest and capacity of the private sector to support rt the government’s strategy: 5 The signing of 35-year concessions for the Olvia a and Kherson seaports in 2020; 5 HHLA’s investment into the development of its Odessa dessa Container Terminal and the recent establishment of itss own intermodal company; 5 The launch of the “Neptune” terminal by Cargill in 2019; 19; n the 5 Korean Posco Daewoo’s acquisition of a 75% stake in Nikolayev grain terminal in 2019;

28 | MAY 2021

5 DP World’s acquisition of a 51% stake in the container terminal at Yuzhny port in 2020; 5 Portinvest’s announced plan to invest USD 150 million to develop a grain terminal at Yuzhny port.

DOOR OPEN FOR PRIVATE SECTOR The adoption of the new Concession Law by the Ukrainian parliament in 2019 and the successful conclusion of two pilot concessions – for the Olvia and Kherson seaports in summer 2020 – opened the door for the private sector to engage in the modernisation of Ukraine’s port infrastructure on a concession basis.

The concession of the Olvia seaport to Qatar’s QTerminals, with expected USD 120 million investments into the 8 Oleg Matiusha, Counsel, Head of Infrastructure, Kinstellar, Kyiv

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

UKRAINE: PUBLIC-PRIVATE-PARTNERSHIP modernisation of the port, became one of the largest foreign investments in the Ukrainian port sector. Inspired by this success, the government plans for 10 of its 13 seaports to be transferred into concession, either fully or partially, within the next 10 years, including Yuzhny port, the passenger terminal at Odessa port, the ferry and railway complex as well as container terminal in Chernomorsk, and the Mariupol, Berdyansk and Izmail seaports.

Three smaller ports – Skadovsk, Belgorod-Dnestrovsk and Ust-Dunaysk – are being prepared for sale (privatisation). The announcement of the privatisation tenders for the UstDunaysk and Belgorod-Dnestrovsk seaports are expected within approximately two months, with the announcement for Skadovsk tender by end-2021.

The government is now actively preparing the Chernomorsk ferry and railway complex and Chernomorsk container terminal for concession. In the run-up to the concession tender, which is expected by end-2021, the government is focusing on re-structuring the current fragmented asset structure of the businesses, resolving issues with court disputes, and procuring the necessary feasibility studies and tender documentation.

UNSOLICITED PROPOSALS WELCOME Meanwhile, due to the lack of capacity on the public side, unsolicited proposals from investors are welcomed.

Ukrainian law entitles an investor that develops an unsolicited proposal but fails to win the concession tender to a reimbursement of its expenses by the successful bidder. In this way, not only may the state benefit from unsolicited

proposals by reducing state expenses and expediting the preparation of port concessions, but private investors may also better prepare for concessions in advance.

Kinstellar’s experience successfully supporting the pilot Olvia seaport concession, together with the preparation of other successful concession projects, engenders confidence that the Ukraine is now the beneficiary of an improved concession regime that can be used efficiently by both the public and private sectors to realise the objective of improved port sector infrastructure.

8 Olvia seaport recently concessioned to QTerminals, Qatar with support from Kinstellar

8 Kinstellar is recognised as a leading legal practice with a strong presence in the markets of Emerging Europe and Central Asia. The firm’s work has earnt it numerous accolades including Law Firm of the Year Central & Eastern Europe (Chambers & Partners, 2020). https://www.kinstellar.com

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

MAY 2021 | 29

CHINA: SPECIAL REPORT

THERE MAY BE TROUBLE AHEAD Container throughput at many of China’s major ports was up in 2020, but is the increase masking underlying problems? AJ Keyes investigates

8 Dalian saw a big drop in 2020 container volumes – over time other ports in China may follow in Dalian’s footsteps

China is the only major economy to record economic expansion in 2020 – with a strong recovery set to gather pace in 2021. Yet the country’s ports work on the export demand model, making them heavily dependent upon demand recovery in North America and Europe, with the latter far from certain.

It is, therefore, questionable how sustainable continued port growth will be? And all the more so when it is recognised that China remains dependent upon raw material imports and has been adopting a confrontational trade policy that risks dislocating the supply chains that have driven previous growth. The latter subject comes under scrutiny in the article ‘K2 for Bulk Port Planners?’ p25.

POSITIVE CONTAINER PORT GROWTH Last year proved a positive one for many of the larger container ports in China. According to China’s Ministry of Transport, total container port throughout for the 24 largest mainland ports registered an increase of 1.5 per cent for 2020 over 2019. A total of 234.3 million TEU passed through these container facilities. Interestingly, this increase is reported despite the negative impact of the COVID-19 pandemic and an array of trade tensions, notably with the USA. Looking at the data that has been made available in more detail, it is reported that the largest volume port, Shanghai, saw throughput in 2020 stay largely flat with a minimal 0.4 per cent rise.

The other largest volume container facilities, however, all recorded stronger growth, ranging from a 6.1 per cent rise to 18.4 million TEU at Tianjin (which is the main port for the greater Beijing region) to a lower, but still positive 1.5 per cent increase for the Pearl River Delta port of Guangzhou, (which includes Nansha) with 23.2 million TEU in 2020.

The Shenzen facilities of (Yantian, Shekou, Chiwan and Dachan Bay) also saw a 3.0 per cent rise to 26.6 million TEU, with Qingdao being the other major facility generating growth, with the 22.0 million TEU handled in 2020 representing a 4.7 per cent increase over 2019.

Table 1 details the total container volumes handled for the biggest volume ports in 2020, with confirmation of the percentage increase over the full-year 2019 also shown.

DALIAN BUCKS THE TREND – MAJOR LOSS The other notable factor in the data is the severe loss of container cargo through the Port of Dalian, which saw a substantial drop of 41.7 per cent to finish 2020 on 5.11 million TEU – down from the 8.81 million TEU handled in 2019.

Localised reports reference weakening GDP, a drop in reefer shipments and traffic shifting to nearby Yingkou as all influencing factors.

There are clearly ongoing issues impacting this port because it has recently confirmed a change in name to Liaoning Port Company, as part of a restructuring process.

China Merchants Group assumed control of Liaoning Port Group during 2019 and there have been a number of different consolidation activities since, which included Dalian Port absorbing listed port operator, Yingkou Port. At the same time, the previously private port company, Dandong Port, was also taken over by Liaoning Port Group after it went into Table 1: Total Container Throughput in Million TEU by Leading Ports in China, 2020 vs. 2019 – with Percentage Difference Shown Port

Throughput – in Million TEU

+ / - Growth

2019

2020

Shanghai

43.3

43.5

+0.5%

Ningbo-Zhoushan

27.5

28.7

+4.4%

Shenzen

25.8

26.6

+3.0%

Guangzhou-Nansha

23.2

23.2

-0.2%

Qingdao

21.0

22.0

+4.7%

Tianjin

17.3

18.4

+6.1%

Xiamen

11.1

11.4

+2.5%

Yingkou

5.5

5.7

+3.5%

Dalian

8.8

5.1

-41.7%

Rizhao

4.5

4.9

+8.0%

Top 15 ports

206.1

208.4

+1.1%

Total

230.9

234.3

+1.5%

Source: All data supplied by Ministry of Transport, China

30 | MAY 2021

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

CHINA: SPECIAL REPORT

STRUCTURAL CHANGE IN CHINA It is important to understand the industrial structure in China.

Traditionally, heavy industries are located in the north and produce bulk products and intermediate goods that feed the consumer production and goods focused in the south.

‘‘

China’s ports are seeing a structural shift and 2020 generated a poor performance of just 1.5 per cent growth The share of production/manufacturing of steel in the northern regions and for televisions/parts in the central and southern area can be seen in Figures 1 and 2.

This make-up of the market has enabled central ports to grow strongly, resulting in the higher volumes moving through the likes of Shanghai and Ningbo.

Northern ports have seen lower growth, especially Dalian.

Qingdao is less impacted because it is the most southern of the Northern ports and can still access some central areas.

According to one liner shipping executive, who did not wish to be named, the real impact is being seen with the northern regions losing around one million TEU of cargo year-on-year up to 2020, but the south and central areas each generating increases by two million TEU per annum.

This suggests that while the north may have largely maintained its export production, it has seen output of the intermediate goods that are supplying the consumer good manufacturing hubs of the south and centre being replaced by ports in these latter two areas. The key conclusion from the combination of port volumes and manufacturing activities is the structural shift towards the south with the reduction in “dirty” production activities in the north.

Source: Data Source: Ministry of Transport, China

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bankruptcy. This reflects the relatively high reliance of the regional economy on the heavy industry sector and could be a bellwether for broader problems in the short term.

Based on Ministry of Transportation data, the fastestgrowing port in the country is currently Beibuwan. Located in Guangxi province, this facility reportedly handled 5.05 million TEU in 2020, an increase of 32.2 per cent over container activity seen in 2019.

So, how much have China’s ports been impacted by the COVID-19 pandemic? It is difficult to be precise. As Figure 2 shows, generally, growth in 2020 was lower than in 2019 for most of the ports, although Ningbo-Zhousan saw a small improvement from 4.2 per cent in 2019 to 4.4 per cent for 2020, while Shenzen turned a 6.9 per cent drop in 2019 to a 3.0 per cent increase for 2020.

Yet the overriding conclusion is that while some ports have seen slightly more positive growth, overall the trend for 2020 for container ports was an increase of just 1.5 per cent overall – which is a very poor performance for China.

growth could “fall short” and there is a growing pressure on local government finances that is expected to see the levels of infrastructure investment slow – which would directly impact port projects.

The current model adopted by the Chinese government for its ports can continue to be followed, but it does not seem like a workable longer-term strategy.

Rising debt in the country, structural changes to industry and issues concerning the sourcing of imported raw materials are all new problems that the country has to face.

The position is complicated and may be further challenged as near-shoring increases in China’s key exports markets such as the USA as a result of the COVID-19 pandemic.

Equally, the shift of manufacturing to other Asian and subcontinent manufacturing locations is another worrying trend.

There may indeed be trouble ahead.

8 Figure 2: China: Select Container Port Performance 2020 vs. 2019 in Percentage Terms

8 Figure 1: Estimated Share of Steel Production

by Region Source: Ministry of Transport, China; Clipperdata; WSP

MOUNTING PROBLEMS So a process of structural change in the country and potentially challenging trade activities are two key issues faced by China and its ports.

There are also other issues emerging at home, with China facing emerging economic challenges. While the current port model is appropriate, structural issues that are already starting to bite have the potential to negatively impact port growth and investment going forward.

According to the Chinese Academy of Social Sciences, Beijing’s plan for domestic consumption to drive economic

8 Figure 2: Estimated Share of TV/Parts Manufacturing

by Region Source: Ministry of Transport, China; Clipperdata; WSP

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

MAY 2021 | 31

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HEALTH AND SAFETY

PoAL: “SYSTEMIC PROBLEMS” A comprehensive review paves the way for a wide-ranging upgrade of safety arrangements at Ports of Auckland. Iain MacIntyre reports An independent review of health and safety at Ports ofAuckland (PoAL) has determined there are “systemic problems” at New Zealand’s major import port in relation to “critical health and safety risk management and organisational culture”.

Prepared by Construction Health and Safety New Zealand (CHASNZ) on behalf of PoAL owner, Auckland Council, the 43-page report was commissioned after two fatalities at the port in recent years.

The report delivered over 100 key findings and recommendations under the topics of: 5 Governance 5 Leadership 5 Health and safety risk 5 Overlapping duties 5 Fatigue management 5 Incident reporting and investigation 5 Organisational culture and engagement 5 Health and safety function 5 Training 5 Continuous improvement Leadership featured as the most prominent subject within that list, attracting seven key findings and nine recommendations.

Within “general observations”, the report praised the port’s management of fundamental business aspects relating to such areas as shipping movements and equipment maintenance. However, it stated that greater focus was needed where there was “reliance on the people element” – particularly in regard to higher-risk, operational areas.

“In reviewing the systemic management of critical health and safety risks, the reviewers found that there is scope for significant improvement to ensure that PoAL operates a resilient and appropriately controlled environment reflective of the level of inherent risk in port operations,” states the report.

“In reviewing the current safety climate, as an aspect of the overarching culture at PoAL the reviewers found that in highrisk areas of the port there were inconsistent views on how workers perceived the commitment to health and safety by senior management to that of what board, line and executive management felt was being demonstrated.”

MANAGEMENT/WORKFORCE CONFLICT The report also highlighted an underlying management/ workforce conflict.

“PoAL do accept responsibility for their workplace culture and are working to improve it. The difficult relationship between Maritime Union of New Zealand (MUNZ) and PoAL has, at times, hampered health and safety improvement. For health and safety to continue to improve at PoAL, it is essential that all parties work collaboratively to support health and safety.”

Auckland mayor Phil Goff said his council would now require PoAL management to provide regular reports on “changes made and progress in implementing the recommendations in the review”, which would also be released publicly.

“Health and safety rules that keep people safe are not ‘a nice to have’,” said the mayor.

“They are a vital component of good management in any workplace.

“When someone goes to work, they should go back home to their families and loved ones. I have made it very clear to

the chair of [PoAL] that changes need to be made to the way [PoAL runs] and it is my expectation that he and the board will hold management accountable for these changes.

Council, in turn will hold the board accountable.

“The reviewers make a number of recommendations to improve health and safety … including new requirements for the port’s chief executive to prioritise safety over productivity and profitability, improve trust and communication between management and staff, and for a new health and safety manager to report directly to the chief executive and the board.”

PoAL issued a six-page statement following the publication of the report, in which it specifically addressed points raised under each of the 10 findings and recommendations topics.

“The CHASNZ report was commissioned to help PoAL identify and address shortcomings in its health and safety environment,” it states.

“By its nature, the report has focused on the things that need improving, which can make it appear like a daunting challenge for the organisation. However, it is not.

“As the report notes, there are parts of the business which have managed safety well, which shows that we can do it across the entire business if we all work together and support each other to make change.

“We welcome the opportunity and direction that this report gives us, and we are determined to deliver the change that is needed.”

However, MUNZ, FIRST Union and other parties have demanded the resignation of Tony Gibson, Chief Executive, PoAL as a key pathway to achieving change – highlighting the fact that he admitted in a recent press conference that he was unaware of the extent of the port’s health and safety issues.

On April 13, MUNZ members held a “stop-work meeting” at a local bowling club to discuss the findings of the report.

“Workers at the meeting voted unanimously that they no longer had trust and confidence in the executive management and board of PoAL,” it reported in a media release.

“The union is also demanding that it has union officials represented on the health and safety, and fatigue risk management committees, and a union representative on the board.”

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

8 An independent review signposts the way to improved safety arrangements at Ports of Auckland

MAY 2021 | 33

CONTAINER TERMINALS: Paths to Profitability

By Remco Stenvert and Andrew Penfold

Container Terminals: Paths to Profitability

Trade Analysis ❘ Terminal Strategy ❘ Investment Trends ❘ Business Priorities 13 MAIN CHAPTERS, 220pp 5 5 5 5 5 5 5

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Price of a PDF version of the study is £575 (UK), €680 (Europe) or US$780 (Rest of the World) per copy. https://www.portstrategy.com/reports

ACCELERATING DIGITALIZATION

STEP UP OR RISK REPERCUSSIONS In the first of two features, Felicity Landon considers some of the immediate, short-term and medium-term digitalization recommendations from a new World Bank and IAPH report

8 Port Community Systems are essential to optimise, manage and automate port and logistics processes with further key steps seen beyond this

A new report, Accelerating Digitalization: Critical Actions to Strengthen the Resilience of the Maritime Supply Chain, has been produced by the World Bank’s transport global practice and the World Ports Sustainability Program (WPSP) of the International Association of Ports and Harbors (IAPH).

Maritime ports must improve their position in respect of technological innovation and integration – or there will be tangible repercussions, warn the authors of a technical report on digitalization in the sector.

“In the short term, these impediments will likely drive shortages of essential goods and higher prices; in the medium to longer term, they could result in slower economic growth, lower employment and higher trade costs,” says the report.

PAINFUL DEMONSTRATION Prepared by a joint team of representatives from the World Bank’s transport global practice and the IAPH’s World Ports Sustainability Program, the ‘Accelerating Digitalization’ report was produced as a follow-up to a policy statement issued in June 2020 by a number of port and maritime industry organisations. That statement listed nine priority areas, ranging from port call optimisation to cybersecurity, and was endorsed by the International Maritime Organization (IMO).

“When it comes to digitalization, the COVID-19 crisis has painfully demonstrated the heterogeneous landscape that currently exists across ports worldwide. While some port communities have seized the opportunities found in the Fourth Industrial Revolution and have developed into fullyfledged ‘smart’ ports, many others have barely grasped the essentials of digitalization and continue to struggle with larger reliance on personal interaction and paper-based transactions as the norms for shipboard, ship-to-shore interface, and shore-to-hinterland based exchanges,” says Patrick Verhoeven, Managing Director – Policy & Strategy, IAPH, in his foreword to the report.

Boutheina Guermazi, Digital Development Director, World Bank, explains further: “The digital revolution has emerged in the past decade as one of the main drivers of change in the

port and maritime sector, promoting a high level of integration between devices, agents and activities. Together with the increased connectivity between ports, it has created a new ecosystem in the industry – one where being on the outside presents a significant disadvantage for ports and countries.”

One of the lessons learned early in the pandemic was the need to ensure business continuity of the critical supply lines, notably the maritime gateways and the associated logistical chains, states the report. “Maritime transport carries 90 per cent of all merchandise trade and, as such, any impediment to the maritime logistical chains results in tangible repercussions for countries served by the port and their respective populations.”

It notes: “Experience so far and the risk of subsequent waves of COVID-19 underline the urgent need to improve the resilience of the maritime sector, through accelerating the digitalization of maritime trade and logistics, which will automate trading across borders and reduce traditional human interaction and paper-based transactions.”

GREATER FOCUS ON INNOVATION AND INTEGRATION It is vital that maritime ports improve their position in respect of technological innovation and integration, “both to ensure or improve their competitiveness, but also to reduce the cost of international trade for their respective hosts and hinterland,” says the report.

However, as the authors point oint out, digitalization does not work if everyone goes their separate parate ways on the journey. The standards and data elements being used need to be harmonised armonised to facilitate the exchange of information between ship and portt and the interoperability of electronic systems. This need for harmonised maritime-related itime-related data and common agreed standards ndards led to the development of the IMO Compendium ic Business, a on Facilitation and Electronic tool for software developers who design the

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

8 Patrick Verhoeven, Managing Director – Policy & Strategy, IAPH, notes varying degrees of take-up by ports of the opportunities presented by digitalization

MAY 2021 | 35

ACCELERATING DIGITALIZATION systems supporting the electronic transmission, receipt and response of information required for arrival, stay and departure of ships, persons and cargo to or from a port.

As well as meeting the requirements of the IMO Facilitation FAL Convention and working on key data elements, the report says that of equal importance is the establishment and introduction by ports of a Port Community System (PCS), described as a “vital platform to optimize, manage and automate port and logistics processes through a single submission of data in the transport and logistics chain”.

Also, in parallel to meeting the FAL requirements, discussions must be held on the nine key data elements related to port call optimisation. “Port call optimisation allows ships to optimise their speed during the voyage to facilitate a timely arrival at the pilot boarding place, thus securing berths, fairways and nautical services at the destination ports. This just-in-time (JIT) arrival will also increase a port’s relative attractiveness and hence its competitiveness.”

In the medium term, every port needs to upgrade to a Port Management System (PMS) “in order to ensure the full digitalization of all processes related to traffic control and assets management”. Such a system enables the port authority to control all port traffic through a single digital interface and manage port infrastructure such as port calls, dues, journal, incidents, waste, dangerous goods, planner, cargo, inspections, permits, services, security and assets, explains the report.

Next comes the need for discussion to enable moving to the next-generation PMS, “intended to prepare the transition from cargo hub to digital hub through the smart port”. This is defined as an automated port that uses nascent technologies such as

‘‘

Digitalization does not work if everyone goes their separate ways on the journey AI, advanced analytics, the IoT, 5G, autonomous systems, digital twin, blockchain and other distributed ledger solutions, as well as other smart technology-based methods to improve performance, economic competitiveness, and environmental sustainability. “In an ideal smart port, all processes would be automated and connected via the IoT,” the report states.

Poorly performing ports reduce trade volumes, and this impact is particularly pronounced where ports serve developing landlocked countries or small island states, outlines the report. “The port, together with the hinterland access infrastructures (whether inland waterway, rail, or road) constitutes a crucial link to the global marketplace and needs to operate efficiently.”

However, port performance is not only about the scale of physical and digital infrastructure – the report emphasises the importance of the ‘institutional infrastructure’ (including administration and clearance services, plus supportive ICT) and the ‘human capital’ in port administration, operations and marine services, as well as in the logistics sector supporting the port. Alongside the digitalization agenda is the need to protect and develop human capital in the sector.

8 Part two of this report review will appear in the June 2021 edition of Port Strategy Note: This article retains the American grammar in order to complement the character of the report

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T O M O R R O W ’ S

36 | MAY 2021

T E C H N O L O G Y

F O R

T O D AY ’ S

S E C U R I T Y™

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

ACCELERATING DIGITALIZATION

Number One Recommendation: Digital Health Security Number one on the list of short-term recommendations reflects the impact of the pandemic on global healthcare systems, underlining the need to improve digital health security at critical infrastructure such as ports, to protect workers. This involves measures such as the enforcement of social distancing rules and temperature control of port workers through the use of thermal cameras, drones and electronic wearables, which could be integrated into a digital port security command and control centre.

However, the digital technology covers a far wider radius in terms of health and safety. The report describes a pilot project in the Port of Antwerp, which has partnered with a Belgian start-up specialising in IoT solutions for maritime services and port terminals. The company developed a wearable device equipped with several security and safety applications particular to ports.

A series of tests at the port focused on man-to-machine detection, man-down detection, safe work in closed spaces and a lone worker alarm, which includes a panic button and man-down detection.

In February 2020, a new function was added to monitor and maintain physical distancing and to facilitate contact tracing through device-to-device communication. The device generates a vibration and orange indicator light when the distance between two or more devices is closer than two metres.

A second signal – loud alarm, vibration and red flashing indicator – is generated when it detects less than 1.5m between devices.

THERMAL CAMERAS Thermal cameras have also helped with epidemic prevention and control in many settings, says the report.

For example, they were introduced at many points of entry during the Ebola outbreak in West Africa in 2014-2016.

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

In the maritime sector, Port Coronel in Chile was one of the first ports to introduce thermal camera technology in the early days of the COVID-19 pandemic, putting the devices in the main access areas and in the logistics centre of cargo terminals, to measure with a high degree of precision the body temperature of workers entering the terminal. Cameras are also used to monitor the temperature of the passengers at ferry and cruise terminals, with Portsmouth International Port being the first facility in the UK to install such a scanner to help ensure passenger safety.

However, the report warns that thermal cameras should not be considered a panacea; they can detect a high body temperature, but not any other infection symptoms. A high temperature does not necessarily mean a person has COVID-19 – more testing would be needed – and, in addition, many people infected with COVID-19 are contagious while remaining asymptomatic.

MAY 2021 | 37

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DIGITALISATION

OPTIMISED VESSEL MOVEMENT The digital know-how is available to optimise vessel arrival and departure Innovez One’s marineM platform offers an advanced solution The Ever Given’s week in the headlines highlights a fact that is often overshadowed in the age of the megaship; that global trade is highly reliant on the effective co-ordination of hundreds of relatively tiny vessels, the tugs, pilot boats and other service vessels that make the first and last miles of any maritime journey possible.

Given their importance, it might be surprising to discover that most towage, pilot and supply vessel movements are still co-ordinated by old-fashioned means such as whiteboards and excel sheets. This is incongruous with the term ‘smart port’ – a port that is underpinned by innovative digital technologies and solutions. In reality, however, it is clear that only a few major, ‘tier one’ ports fully reap the digital dividend. And even then, the digital emphasis is on the land-based operations of a port, overlooking the vital processes that happen at sea in terms of towage, pilotage, and workboat operations.

When a ship makes a port call, the marine services provided by pilots, tugboats, and pilot boats need to be scheduled and dispatched for the safe approach of a vessel into port. A vast number of scheduling considerations need to be evaluated including: providing a pilot with a suitable license; finding the appropriate number of tugboats to move the vessel, weather conditions, tide considerations, availability of berth and other factors.

Incredibly, of the estimated 4900 ports globally, 80 per cent are not yet using digital technology for even the most fundamental processes. Instead, they rely on manual, legacy solutions such as whiteboards or spreadsheets to manage critical marine services including towage, pilotage, and launch boats.

This lack of digitalisation leads to a range of inefficiencies in ordering, execution, and billing, as well as a lack of sustainability. Furthermore, it leaves many ports commercially vulnerable and less able to compete in an increasingly digital maritime world.

While the business of efficiently allocating vessels, crew and berths around a port might seem insignificant, the size and scale of modern ports means that the right people, vessels and equipment could all be in the right port, but kilometres away from where they need to be. This can be the difference between a successful, F1 pitstop-style, port call and a vessel waiting unnecessarily outside a port for hours, having burned considerable amounts of fuel and emissions to get there on time in the first place.

This dynamic reflects the often-messy reality of port operations where there is a blend of advanced digital and paper-based, manual processes sitting side-by-side. It also causes interoperability issues, where systems are not talking effectively to each other, which impedes effective execution.

TAKE THE DIGITAL PATH The reality is that affordable, proven digital technologies and services, with a fast return on investment, exist and are readily available now to optimise vessel arrival and departure - Innovez One’s marineM platform is a prime example. By automating complex maritime operations for ports, terminals and towage and workboat operators worldwide, Innovez One

enables ports and launch operators who are missing out on the digital dividend to harness the benefits.

The marineM platform provides port management information systems that link together each stage of the towage and pilotage chain, covering job management, planning & dispatch, tracking & monitoring and billing.

Together, it provides an ecosystem that integrates the whole process, from booking nautical services to billing. This streamlines a port’s planning and management of pilotage and towage services, and significantly reduces the workload for the operations and billing departments.

The benefits are varied – marineM delivers berth planning, optimises vessel allocations, enables real-time reporting of timings and locations, and delivers digitalised service returns to the billing engine to generate invoices automatically. It basically provides a far more efficient, reliable and robust system for planning and allocating these valuable resources than traditional methods. It also saves significant amounts of fuel and maintenance cost by enabling optimised vessel journeys.

The marineM Port management software apps receive pilotage and tug job dispatches on devices wirelessly. They allow pilots and tug masters to update job timings that are delivered real-time to the marineM Job Planner, which uses a proprietary AI engine, built specifically for the maritime sector, to maximise efficiency for pilotage and towage operations. marineM has been deployed in some of Asia’s busiest ports, such as Singapore and Tanjung Priok, Indonesia, facilitating hundreds of thousands of dollars of savings per year. In Tanjung Priok, for example, marineM has saved US$155k in annual fuel costs, by reducing vessel mileage by 20 per cent.

It has also saved an estimated US$90k in annual maintenance costs, and US$150k through reducing the incidence of accidents. Whereas in the past vessels waited on average 2.5 hours for nautical services, since adopting marineM the Port of Tanjung Priok has reduced vessel waiting time to below 30 minutes.

These kind of Software-as-a-Service solutions can enable tier 2 ports and below to boost the efficiency, sustainability, profitability and competitiveness that they so urgently need.

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

8 marineM is a proven digital solution to optimise the first and last mile of vessel movement

MAY 2021 | 39

INTERMODAL

CANADIAN RAIL FIGHT Canadian Pacific Railway and Canadian National Railway have both bid for Kansas City Southern.

Phoebe Davison looks at what it could mean for ports and shippers and the obstacles ahead

BENEFITS AND NEW ROUTES – “A PLAY FOR MEXICO” There are a number of new services being put forward by CP/KCS as part of the merger. The current CP network does not extend past Kansas City so the merger will give immediate access to the US Gulf and Mexico, (including Lázaro Cárdenas) in addition to other improved intermodal routes and service to/from the Upper Midwest and Vancouver (BC), Chicago, Toronto and Montreal By comparison, CN will be able to link its Chicago-New Orleans line (gained from the acquisition of Illinois Central Railroad in 1998), with the KCS network in Louisiana.

According to one terminal operator, who has substantial experience of working on a daily basis with CP – and so wished to remain anonomous – this whole deal is about one thing. “This is a play for Mexico,” he stated.

40 | MAY 2021

Based on information available from the Intermodal Association of North America (IANA), there are currently up to 350,000 containers entering or leaving Mexico on an annual basis and around 75 percent of this traffic connects with Chicago from Minneapolis or Detroit. Hence the ability to improve connectivity in this corridor is appealing and reinforces the feedback gained from the terminal operator.

8 CP had hoped to close the KCS merger in 2022, subject to the regulatory process.

Now, interest in KCS from CN may complicate matters

THE CHALLENGE – REGULATORY APPROVAL It is important not to underestimate this potentially difficult and arduous process because it requires gaining regulatory approval from a powerful federal agency (STB) that has, in recent times, managed to discourage consolidation in the industry with time-consuming reviews and stringent merger rules.

The challenge for CN merging with KCS could be tougher than for CP and KCS, simply because the joint CN-KCS company would be that much larger. Initially, CP said it expected approvals for the $25 billion deal “sometime in 2022.” However, the railroad may first have to revisit the negotiating table with KCS to head off CN’s interest.

Table 1: CN, KCS and CP Railroads Profiles, end of 2020

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

Source: CP, CN, KCS (including annual reports, 2020)

Mergers and acquisitions between railroads in North America are not new. Burlington Northern Santa Fe (BNSF) was created in 1995, from the merger of Burlington Northern Railroad and Santa Fe Pacific Corporation, while in 1996 the newly created Surface Transportation Board (STB) in the USA approved the merger of Union Pacific and Southern Pacific to create a new entity of Union Pacific Railroad (UPRR).

In fact, all of the current Class 1 railroads on the continent can trace their history through a range of mergers and acquisitions. So, there are precedents in place in North America for the latest proposed transaction from either Canadian Pacific Railway (CP) or Canadian National (CN) to acquire the Kansas City Southern (KCS) operation. However, gaining necessary regulatory approvals will be the challenge.

In March 2021, CP announced a US$25 billion deal to merge with KCS. However, prior to the process of STB approval, Jacques Ruest, CEO, Canadian National announced in mid-April 2021, “Railroads don’t come for sale very often,” and tabled a rival bid of US$30 billion.

This latest bid could trigger a fully-fledged bidding war, with the loser potentially facing a competitive network disadvantage.

Table 1 provides a summary overview of each of the railroads, confirming the trackage, coverage and other key metrics.

With the CP bid it is known that the combined company would be called Canadian Pacific Kansas City, or CPKC and will have annual revenues of about US$8.7 billion and almost 20,000 employees. The grouping of KCS with CN would be substantially larger. In 2020, CN recorded freight revenues of C$13,218 million and had more than 24,380 employees already.

According to CP, the aim of the proposed deal is to create the “first rail network connecting the U.S., Mexico and Canada,” adding that it will “connect customers via singlenetwork transportation offerings between points on CP’s system throughout Canada, the U.S. Midwest and the U.S. Northeast and points on KCS’ system throughout Mexico and the South Central US.” CN also sees the benefits of the North-South coverage, as Ruest stated on a call with analysts: “A lot of the freight today that moves north-south is only getting a partial ride by rail or is actually moving all truck, and these are huge distances.”

The company has indicated it believes that there is as much as US$8 billion of truck traffic that could convert to rail.

CANADA: LABOUR RELATIONS

TIT-FOR-TAT IN MONTREAL With no new collective bargaining agreement in place fears of further disruption at the Port of Montreal are manifest, Phoebe Davison investigates

CARGO DIVERSIONS UNDERWAY At the time of the truce commencing, it was hoped that the new contract would be in force before the end of March 2021.

Unfortunately, this has not happened. Longshoremen unanimously rejected the contract proposal from the Maritime Employers Association. There were several key steps leading up to this.

The talks were suspended in early March when the employers’ association submitted a comprehensive offer in an effort to put an end, finally, to the bargaining process.

However, at a subsequent general meeting held at the end of March 2021 by the workforce, the proposal was soundly rejected by 99.7 percent of the dockworkers, when 1,023 votes (of a total of 1,120 members of the union) were cast. Of those members voting, 1,020 dockworkers rejected the employer’s offer and only two voted to accept it (with one abstention). Clearly, a tremendously overwhelming rejection of the offer on the table.

Immediately after the March 2021 vote, the workforce unions confirmed there was no intention to submit a strike notice, which is the mandatory step to bring about a work stoppage.

However, some shipping lines reacted, regardless, and confirmed an intention to divert ships, with Halifax a major option of interest – and likely to be the real winner of cargo diversions.

Hapag Lloyd, a major user of the Port of Montreal, has already confirmed its plans highlighting the nervousness of shipping lines. The operator announced: “With the risk of potential industrial action at the e Port of Montreal, we expect that terminal performance e in the port will be severely impacted.”

Canada’s National Statistics tics office, Statistics Canada, has estimated the cost of the impact of the strikes that occurred ccurred in 2020. The organisation reportss that the cost to wholesales was almost st C$630 million (US$500 million) in sales, while the Canadian Federation of Independent ependent Business states that 40 per centt of small and medium businesses located in Quebec tive impact experienced a noticeable negative hat occurred. directly as a result of the strikes that

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In July 2020, a dispute between terminal operators and the Local 375 of the Canadian Union of Public Employees (CUPE) erupted at the Port of Montreal. There had been no contract in force since the end of December 2018, when the previous collective bargaining agreement expired.

Work stoppages occurred throughout August 2020 before the striking workers subsequently agreed a seven-month truce with employers while a new collective bargaining agreement was to be negotiated, with no further lockouts or strikes happening.

The impact of the strike action undertaken was severe. An extensive backlog occurred, and more than 20 container ships were diverted, impacting the movement of an estimated 80,000 TEU and ultimately taking three months before operations stabilised in the Port of Montreal.

TIT-FOR-TAT Tensions are continuing to escalate at the time of writing (midApril 2021). Montreal’s terminal employers have reportedly refused to pay longshoremen full salaries after an 11 per cent decrease in cargo in March 2021 due to cargo diversions. In return, the workforce is not undertaking any overtime shifts, working during weekends or undertaking any training activities.

The fear expressed by terminal employers is that the workers may deliberately undertake a “go-slow” and any employer response could see the situation further deteriorate.

These concerns are already being seen, based on Hapag Lloyd’s latest announcement, which states that terminal operations at the port are configured on five days per week instead of the usual seven days. “Slowdowns to vessel operations as well as rail handling are to be expected. Vessel schedules could be impacted by these delays. Hapag-Lloyd will continue to adjust operations in order to limit the impact to the schedule and our customers,” it says. On this basis, expect more cargo to divert to Halifax.

Canadian Manufac Manufacturers & Exporters (CME) continues to call on the federal fede government to intervene to resolve the situation situation. This association directly represents more than tha 2,500 companies who collectively account for an estimated 82 per cent of manufacturing manufac output and 90 per cent of Canada’s Canada’ exports.

In the th Summer of 2020, the Canadian government governm refused to get involved, stating at the time that it had faith in the collective bargaining bargainin process. Well, that stance needs to change to ensure that this long-running issue is reso finally resolved, especially as pressure is being b those most impacted – cargo shippers ramped-up by

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

8 Tit-for-Tat actions in Montreal between workers and employers leave the port on the brink of further strike action

8 Dennis Darby, President & CEO, CME: “Strike action at the Port of Montreal will further impact an already fragile manufacturing supply chain.”

MAY 2021 | 41

PORT AND TERMINAL SECURITY

SENSE OF SECURITY Port security issues are growing in number and severity. John Bensalhia identifies the problem hotspots and new thinking in curbing and eradicating their influence To protect against threats like damage, crime and accidents, ports must be ready to face all challenges, in both the real and virtual worlds. As John Lund, Senior Sales Agent, Americas, Visy, explains: “Each facility is somewhat unique in terms of its exact security requirements. For example, our customers in Latin America face different security challenges than our customers in Europe.”

CYBER-CRIME OR REAL WORLD? A challenge for all ports is the constant occurrence of new security issues, whether through the growing incidence of cyber-crime or from real world events.

The most obvious example of the latter is COVID-19.

While port sector companies strive to run businesses as smoothly as possible, they must also ensure maximum safety of staff and visitors. Accordingly, security product manufacturers are devising products to help realise this objective. SICPA Certus’ myHealth pass, for example, is a technology-based solution that enables health status management in real time. The pass was trialled in Singapore and the Philippines in Autumn 2020 in conjunction with CrewAssist, a Hong Kong-based non-profit organisation.

Other ports have introduced temperature screening systems.

Portsmouth International Port’s temperature scanner takes temperatures of employees before they commence work, adding extra protection for staff and passengers. X-ray machines, walk-through detection arches and hand-held detectors are also employed at the UK-port as a way of maximising detection and the protection of individuals against the virus.

The UK’s Port of Poole now features a VIRALERT 3 noncontact body temperature screening system. Anyone entering the port has their temperature taken, with results being accurate to within 0.5 degrees Celsius. Developed by AMETEK Land, the VIRALERT 3 system is fast, efficient and accurate (with body temperature calculated in seconds).

One-off incidents can also have consequences. Debbie Heald MBE, Managing Director, Heald, points out how the recent highly publicised incident - the mv Ever Given blocking the Suez Canal – has parallels with maritime port security issues.

She notes: “With the rising cost of shipping products and the cost of goods themselves, ports that do not invest in security measures to protect from the threat of organised crime and terrorist attacks could be left with costly consequences.” The Suez Canal incident underlines it just takes one catastrophic event.

VIRTUAL WORLD THREATS The virtual world poses a growing threat to port and terminal security, although many facilities continue to take meaningful steps to fight back against cyber-crime. The Port of Los Angeles, for example, has teamed up with IBM Security to create a Port Cyber Resilience Centre which protects the port against cyber-crime, plus supports all stakeholders involved with transportation of cargo through the port.

Visy is a company that is strongly focussed on the subject of visibility, as Lund explains: “We are having a lot of conversations about how we can provide visibility in the yard

42 | MAY 2021

and in the stacks. Visy AREA is one way that we are providing security and operational benefits inside the terminal. In the stacks we are adding vision technology directly to the container handling equipment (CHE) in the form of spreader optical character recognition (OCR), called TopView.”

Lund highlights the value of the product in relation to port security: “We have essentially turned the spreader into a smart device. By adding OCR cameras, we turn every spreader into a data collection tool that allows operators to automatically verify every container identification before the box is moved. If the wrong box is about to be moved, the system will notify the operator and prevent the wrong move.

For security purposes, the system also links the operator and CHE to the box move. This is important for regions that deal with issues such as fraud and drugs.”

8 Smarter systems, in line with the Smart Port concept, represent a major path to improved security

DETECT AND REACT Laura Quinton, External Communications Lead, Wärtsilä Voyage, says that critical infrastructure protection is an important part of effective security services. “We see the trends to increase sensitivity of the systems and advanced decision support solutions allowing operators to detect and identify threats, as well as to react in a timely and appropriate way to them.

“All in all,” she points out, “the adoption of smarter systems that help to solve four major problems in ports, namely safety, security, efficiency and environmental protection – is a big emerging trend.”

In its Smart Ports Vision 2021, Wärtsilä Voyage advocates an ecosystem approach to developing digital solutions for ports. “The notion of a ‘smart port’ refers to a port that uses digital solutions to overcome some of the traditional challenges associated with the sector,” says Quinton. “These include spatial constraints, pressure on productivity, fiscal limitations, safety and security risks and sustainability.”

The key to effective security in all aspects of port operations is seen as innovation. Quinton states: “The focus is always on the possibilities to enhance and upgrade existing technologies, for example, machine learning to detect anomalies or suspicious behaviour, development of 3D models and displaying 3D pictures of the port areas in real-time, automatic identification of the vessels etc. Recently,” she adds, “the demand for additional drone detection systems has been noted as well.”

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

PORT AND TERMINAL SECURITY

SECURITY SYSTEM INNOVATION

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Providers of security system products and services have been busy. John Bensalhia examines, on a company by company basis, some of the more notable innovations

The advent of the so-called Smart Port has seen a commensurate rise in what can be loosely termed smart security systems designed for application in ports and terminals – some of the latest products in this category being designed to respond to the challenges of COVID-19 but also others that leverage off broad-based digital/IT system advances. But if you also want to stop a 7.5-tonne truck travelling at a speed of 80kph (50 mph) with a strong physical barrier, and one that can continue working afterwards, then this is also possible.

CAMCO Gate security remains a primary area of port security. One example is Camco Technologies’ Truck OCR Portal, which uses a camera system to register trucks and container/semi-trailers.

“Our Gate Automation Software validates the data with the Terminal Operating System (TOS) while the truck driver reaches the gate,” explains Alain Buyle, Camco Global Marketing Communications, Camco Technologies. “At the gate, the camera matches the truck with the data from the OCR portal. The truck driver is prompted to register his ID via the truck ID card, as well as booking number. If the data is incorrect or the driver does not have a valid ID, he is refused access to the terminal.”

Port security must be considered from all angles – including from below for incoming vehicles. One new Camco innovation ensures that ports and terminals can now detect anything suspicious under truck or car undercarriages: “The UVI camera enables remote, fast and safe inspection of defects and anomalies and even foreign objects or persons hiding under the truck. It can be used as a stand-alone system or integrated with a truck video gate, connecting each truck with the corresponding undercarriage,” explains Buyle.

CERTUS Certus recently launched its ‘myHealth’ pass. This helps both port facility staff and seafarers with proof of paper-based and digitally approved COVID-19 tests. The pass can be stored

8 Port security is a hot topic – and it is only going to get hotter

via smartphone, keeping the information easily accessible and up to date.

The real-time concept of an individual’s health status was introduced to ensure their safety at ports as part of the COVID-19 pandemic, but it can be used for other cases such as medical records and vaccines. The pass is easy to establish, with operation ready to go in an instant. It is fully automated and can be linked in with existing IT set-ups.

G4S: G4S is implementing a complete security technology solution for the Port of Rhodes, Greece, a site comprising three bordering ports (Kolones, Aggelon and Akantia) and receiving 300 cruise ships per year.

The full system includes a fibre-optic network, CCTV, access control, security booths and X-ray screening. The technology takes in relevant data pertaining to passengers and vehicles entering and leaving the port. Security is raised with the aid of respective passenger barcodes and vehicle registration numbers that ensure that intruders cannot gain access.

Panos Giannakopoulos, Ports Business Development Manager, Greece, G4S, comments: “Part of our technology solution is to create a network that will connect all three ports to the central control room. This will be achieved by installing a fibre optic network. The CCTV network involves an advanced 360 degrees thermal camera to survey the waterfront, up to a range of 2km. “The whole system will be supplied, for back up purposes, from photovoltaic solar panels and generators, if there is a power failure.”

HEALD “When it comes to port security, our most popular products are the Matador, Raptor and Viper,” says Debbie Heald MBE, Managing Director, Heald.

She explains that The Matador is the world’s only sliding bollard which was developed specifically to address issues around underground infrastructure while still providing access for permitted vehicles. Available in a range of

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

MAY 2021 | 43

PORT AND TERMINAL SECURITY formats, the patent-protected product is available as both a shallow mount and surface mount and can be used as either a permanent or temporary security solution.

To meet the needs of locations that require wider access points, for example like an HGV, Heald has created the Matador 6. The Matador range has been crash-tested multiple times to PAS 68 and IWA 14 standard using a variety of vehicle types and speeds.

The Raptor is a patent-protected retractable security bollard that is crash tested to both PAS 68 and ASTM standards. “It combines the high security of a road blocker with the flexibility of a shallow mount bollard and is the most resistant bollard of its type on the market due to its unique design and internal reinforcement which other bollards simply do not have,” says Heald.

The Viper is a shallow mount road blocker which due to its ingenious folding design requires a very shallow foundation depth of just 400mm. Crash tested to PAS 68 and ASTM standards, the Viper can halt a 7.5-tonne truck travelling at a speed of 80kph (50 mph) and can continue to function afterwards.”

KONGSBERG NORCONTROL Used by customers such as the Singapore Port Authority, Teesport, Gibraltar Port Authority and the ports of Los Angeles and Long Beach, Kongsberg Norcontrol’s Vessel Traffic Services (VTS) solutions help to manage secure vessel traffic at ports.

The Kongsberg Norcontrol C-Scope Port VTS System boosts security by identifying potential risks during port operations (as well as spotting possible causes of hold-ups and optimising utilisation of resources). 3D technology allows port operators to visualise possible problematic situations and allow pre-emptive steps to be taken prevent the issue(s) from occurring.

MIRA One issue is that today there is a greater risk of threats channeled by encrypted connections, resulting in the risk of networks being infiltrated. This is a particular problem with more businesses moving to the Cloud.

Mira’s Encrypted Traffic Orchestration (ETO) provides users with visibility for encrypted traffic for any security analytic tools in use, thereby detecting and rectifying possible threats.

PURE-TECH SYSTEMS An issue with security system designs for wide area perimeters is ensuring that all potential threats can be pinpointed. A wider scale location makes it harder to determine the level of distance and pixel strength required to make an accurate camera capture.

PureTech Systems’ new Design Imaging Calculator rectifies this problem by enabling special features to accurately capture details over a wide range. Parameters set by the port or terminal user include width/height image sensors, the level of lateral and vertical camera pixels, plus horizontal and vertical fields of view.

SECURICLAD Securiclad is a high-strength security barrier that can stand up to sustained attacks from powerful tools and implements. The barrier has been awarded European EN1063 BR2 and BR3 status, which means that the material can stand up to the power of a 357 Magnum Calibre.

The installation process is swift, ensuring minimum

44 | MAY 2021

disruption to port and terminal daily routines. Securiclad is available for use in new installations and on a retrofit basis at existing sites.

SIGILPAC One of the most reliable methods of protecting cargo from theft or the cargo accidentally escaping the container is the metal security seal.

Sigilpac offers a range of metal security seals, which are claimed to have the edge over seals made from other materials such as plastic in that they are tough enough to withstand damage or accidental container opening. The Sigilpac metal seal range is used for easy and effective cargo protection. The seals have been rigorously tested for strength, achieving ISO PAS certification for maximum security.

VISY John Lund, Senior Sales Agent, Americas, Visy, states that the best-selling Visy products are the Visy Access GOS and Visy IRIS OCR suite. The Visy Access GOS (Gate Operating System) with vision technology incorporates a wide range of data collection tools that provide customers with real time data on what is happening at a facility. “The GOS is widely accepted as a mission critical system,” says Lund. “OCR is the most common data collection tool used with the GOS, but RFID is also very common (in fact, we use both OCR and RFID in about 80% of our systems).”

Lund states, somewhat ironically, that a common theme on how to help Visy customers is with visibility. “Of course, visibility is a pun given that we develop vision technology such as our optical character recognition (“OCR”) suite called Visy IRIS OCR.” From a single Visy IRIS OCR portal for trucks, it is possible to relay to the operator information about containers; licence plate number; chassis/trailer ID; seal presence; hazardous goods classification; identifying marks on the truck or cargo such as tare weight or company name; plus event data including date, time and location.

The new Visy AREA system uses traditional CCTV cameras to track and trace assets in terminals. “Utilising camera video streams, Visy AREA enables the tracking and monitoring of individual vehicles within an area,” says Lund.

“Vehicle locations and travel paths are plotted live on a 3D map, like Google Maps. Combining vehicle tracking with Visy OCR solutions at area entry and exit points, to capture vehicle details like licence plates, cargo details (type, container and trailer numbers, IMO labels, etc.), and anomalies such as damage, those vehicle details are available throughout the monitored area.”

WARTSILA: Wärtsilä Navi-Harbour WebVTS is a state-of-the-art software application designed to deliver greater safety for ports. It features an early warning system to avoid collisions with the offshore platforms and vessels in their vicinity.

“It works by providing remote access to Automatic Identification System (AIS) or Vessel Traffic Service (VTS) data sources to maintain constant and full situational awareness, utilising a standard Internet browser,” explains Laura Quinton, External Communications Lead, Wärtsilä Voyage. “The WebVTS decision support tools effectively mitigate potential marine hazards and risks. The application also supports navigational maps, traffic management tools, ship history, and works in various languages.”

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

PRODUCTS & SERVICES DIRECTORY

PACECO® CORP. World Headquarters 25503 Whitesell Street Hayward, CA 94545 Tel (510) 264-9288 email@pacecocorp.com www.pacecocorp.com

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

Staubli_Directory Mar 2021.indd 1

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

Taylor Machine Works, Inc. 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

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

LASE Industrielle Lasertechnik GmbH 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

When experience really does matter!

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.

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

C RANE COMPONENTS

C ARGO HANDLING SYSTEMS

Cimbria Directory.indd 1

E LECTRIFICATION SOLUTIONS

27/01/2021 11:29

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

Beumer Directory Jan 2021.indd 1

D REDGING

Over 60 years supporting Container Terminals in port operations: we create strategic ǁëŒƪėɆëŝĐɆļŝĉƎėëƖėɆƋƎŨǘƢëĈļŒļƢLjɆ ƢķƎŨƪİķɆƖŨŒļĐɆëŝĐɆƎėŒļëĈŒėɆ STS Portainer® and RTG Transtainer® cranes, services & Advanced Port Technologies.

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

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

C ONNECTION SOLUTIONS

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 OMPONENTS

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

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

B ULK HANDLING

B ULK HANDLING

Bedeschi S.p.A

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

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

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

Westicker Str. 52, 59174 Kamen, Germany

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

Piraeus2021

GREENPORT Cruise Congress &

20OCT Piraeus 22 2021 Greece TO

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

7EB DELLNERDAMPERS SE

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

Greenport Congress Directory Filler.indd 1 01/03/2021 MAY 2021 | 45 09:15

PRODUCTS & SERVICES DIRECTORY

Contact Tim Hills or Hannah Bolland

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

+44 1329 825335 www.portstrategy.com

Port Strategy Directory

H ANDLING EQUIPMENT

G RABS

Fogmaker Directory.indd 1

To advertise in the

MRS Greifer GmbH

Sany Europe GmbH SANY offers reliable quality container handling trucks.

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

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

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

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

Piraeus2021

GREENPORT Cruise Congress

01/02/2021 13:12

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

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

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

I T PORT AUTOMATION

H ANDLING EQUIPMENT

F IRE SUPPRESSION SYSTEMS

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

RuggON_Directory_40x58.indd 1

20/01/2021 10:50

&

20OCT Piraeus 22 2021 Greece

BLOK Container Systems Ltd

TO

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

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

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

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

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

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

P OWER TRANSMISSION

I NSURANCE

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

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

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

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

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Southampton United Kingdom

Port Strategy Directory Contact Tim Hills or Hannah Bolland

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

+44 1329 825335 www.portstrategy.com

S HIP UPLOADERS

I T PORT AUTOMATION

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

We Keep Your Vital Business Moving!

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

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

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

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

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

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

PRODUCTS & SERVICES DIRECTORY

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

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

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20OCT Piraeus 22 2021 Greece TO

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

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

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

TGI Maritime Software is a Terminal Operating System editor and integrator specialized in the support of Small to Medium Terminals. Its expertise is built on 34 years of experience within the maritime sector. TGI provides comprehensive services to its customers all along their projects. OSCAR TOS and CARROL TOS have already been successfully handled by 40 container and RoRo terminals worldwide.

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

T RACTORS

Piraeus2021

GREENPORT Cruise Congress

T ERMINAL OPERATIONS SYSTEMS

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

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

T ERMINAL OPERATIONS SYSTEMS

T ERMINAL OPERATIONS SYSTEMS

S PREADERS

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

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

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

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

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

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POSTSCRIPT ESPO PLOTS OPS USE The release of the framework document: Towards an Intelligent Framework for Onshore Power Supply by the European Sea Ports Organisation (ESPO), signposts the rapidly increasing interest in powering ships at berth by this method as a path to reducing co2 emissions and air pollution in ports.

The document comprises five main pages wherein 10 key factors relating to OPS are discussed as set out in Table 1.

‘‘

The European Sea Ports Organisation has plotted a pragmatic path to achieve the wider application of Onshore Power Supply as a means of reducing co2 emissions reduction and improving air quality. Funding initiatives take centre stage

48 | MAY 2021

Table 1: Onshore Power Supply: The Ten Key Factors Highlighted by ESPO 71 Europe’s ports want to be a part of a green future for Europe 72 OPS is an important tool to reduce shipping emissions in ports: European ports fully support more OPS where it makes sense 73 Public funding is a prerequisite for the further deployment of OPS 74 Criteria to define where OPS make most sense in European ports 75 Assessment of shipping segments 76 Port-specific considerations to consider alongside the general criteria 77 OPS investment decisions in ports should be based on a proper cost benefit analysis 78 OPS must be subject to a permanent tax exemption 79 Balanced commitments between vessels and ports are a precondition 10 Facilitating OPS deployment through market information and transparency Source: ESPO

Under Point 2, as featured in Table 1, ESPO notes: “The revised Alternative Fuels Infrastructure Directive (AFID) should… provide a legislative framework leading to the best available and cost-effective technology to reduce emissions at berth, including the development of OPS where viable.”

Plus: “To ensure greater deployment of OPS, it should be possible to provide OPS through either mobile fixed or floating installations.”

Point 3, relating to public funding is an important area of coverage. ESPO underlines the fact that: “The cost for developing OPS in ports varies from port to port, and from location to location in the port, but overall the cost is high with almost no return on investment for the investing party.” It further confirms that: “So far there are no cases known where OPS has been deployed on a commercial basis.”

Against this background, ESPO goes on to point out that every OPS facility installed to-date has been supported by up to 50 per cent of public funding and that an ambitious OPS development must be accompanied by substantial amounts of public funding to enable wider deployment. Furthermore, that as well as the existing funding mechanisms such as the Connecting Europe Facility and the Recovery and Resilience Facility, “dedicated funds for OPS investments in ports should be provided in future funding mechanisms such as a maritime fund under the EU ETS.”

8 Vessel type, time at berth, connect and disconnect times feature among the influential technical criteria that have to be assessed as part of OPS investment

WHERE OPS MAKES MOST SENSE On the fourth point in the table, “Where OPS makes most sense…” ESPO reports that it has identified a number of cumulative criteria which are important in the evaluation of where and when OPS is most appropriate in European ports. These criteria include: 5 Ship type and the OPS readiness of vessels 5 Vessel minimum time at berth (and here it notes the influence of the OPS connect and disconnect times which can vary a lot between different vessel types, e.g. one to two hours for a container vessel) 5 Frequent and repeat calls by the same vessels 5 Minimum occupancy rate of the berth 5 New berths As might be expected, where frequent calls are made OPS is seen as more viable and similarly on the issue of berth occupancy it notes “a berth should be regularly used over an extended time.”

Returning to a financial theme in points seven and eight, ESPO emphasises in the former respect that OPS investment decisions should be based on a proper cost-benefit analysis. Among other advantages, it states that this will avoid the misallocation of limited resources.

And echoing a theme raised recently in the UK, under its Point eight, ESPO notes that: “The wellknown legislative barriers to the use of OPS also need to be addressed and incentives for their deployment should be introduced.” Further that, “A level playing field must be established with other fuels, including a permanent tax exemption for OPS under the Energy Taxation Directive, which would improve the cost-effectiveness of OPS.” The basis of the framework document is that there is clear scope for the wider application of OPS as a means of co2 emission reduction and improving air quality in ports. To make this happen as effectively as possible, however, funding issues needs to be addressed and a range of technical criteria spanning vessel types and port considerations in a general and local context.

Towards an Intelligent Framework for Onshore Power Supply, the full document, is available from ESPO at: https://www.espo.be

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

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M&CCE Expo is open for business all year The Marine & Coastal Civil Engineering (M&CCE) Expo is Europe’s leading event dedicated to showcasing the latest equipment and solutions for marine, coastal and other challenging civil engineering projects with unique landscape features.

Reach a larger audience than ever before M&CCE Expo will be co-located with Seawork, Europe’s leading commercial marine and workboat exhibition.

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For more information visit: mcceexpo.com contact: +44 1329 825335 or email: info@mcceexpo.com #MCCEExpo2021

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