portstrategy.com
NOVEMBER/DECEMBER 2023 VOL 1023 ISSUE 9
Positive View of DCT Pier 2 | TOS: Age of the Add On | Tyre R&D Gathers Speed
2023 STATISTICAL DECOUPLING GAME CHANGER: LINER INFLUENCE? THE ELECTRIC DEFICIT BRAZILIAN BLIGHT
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The international magazine for senior port & terminal executives EDITORIAL & CONTENT Editorial Director: Mike Mundy mmundy@portstrategy.com Features Editor: A J Keyes keyesj186@gmail.com Consultant Editor: Andrew Penfold andypenfold@yahoo.com
VIEWPOINT MIKE MUNDY
The seeds of change are apparent in 2023, with some particularly interesting developments at a strategic level. Going forward, there is cause for optimism at the greater spirit of collaboration that is now gaining momentum. Progressively, positives can be expected to follow from this…
Regular Correspondents: Felicity Landon; Stevie Knight; Ben Hackett; Peter de Langen; Charles Haine; AJ Keyes; Andrew Penfold; Oleksandr Gavrylyuk Johan-Paul Verschuure; Phoebe Davison
Looking Back and Forward
Production David Blake, Paul Dunnington production@mercatormedia.com
It’s that time of year again, when we look back over the past year and look forward. Looking back, an interesting phenomenon manifest in Europe is featured in our article 2023 Statistical Decoupling (P24) which essentially highlights the fact that over the last few quarters the GDP-trade relationship, as the article says, “does not tell the full story for 2023.” The author, Johan Paul Verschurre. Director at Rebel, highlights the new reality that: “pre-COVID-19 the goods related economic sectors are performing in sync with overall economic activity, but that since 2020 there are large variations between segments of the economy.” This,” he says, “makes understanding the GDP headlines and the implications for the container segment not as straightforward as in pre-COVID-19 times.” A seemingly relatively small detail – a matter of statistics you may say – but actually quite seismic when you consider for how the long the traditional GDP-trade relationship has been used as a mainstay of container forecasting! Also looking back, we can see the proliferation of shipping line investment in terminals over 2023 and prior to this. Again, in conjunction with the European situation, the author, Andrew Penfold, in the article A Game Changer? (p26) raises another interesting strategic point. Traditionally the EU has been careful to monitor and regulate the distribution of container handling power – for example between the major terminal operating groups. The same reality does not, however, seem to apply to shipping lines – take for example MSC which has acquired large terminal assets in Le Havre, Antwerp, Rotterdam, Bremerhaven and soon to be Hamburg as well. (The closing of this latter deal is anticipated for the second quarter of 2024). Have the Regulators missed a trick here? Time will tell if this greater control over the supply chain ultimately results in reduced or increased cost. Looking forward, yes of course we can see more emphasis on decarbonisation and digitalisation these elements are here to stay and will doubtless expand their influence in the near to medium term. What is perhaps more pleasing, however, looking forward, is the expanding spirit of greater collaboration between parties in the supply chain. Our news pages highlight the discussions that are now underway between key ports about establishing a global network of innovation hubs (p15). Similarly, we can see the number of participants in the METEOR project growing – an initiative aimed at the detection of illicit substances in containers (p13). Attendance at the IAPH World Ports Conference in Abu Dhabi recently further confirmed this enhanced spirit of cooperation, with the strong ties established between IAPH and the International Maritime Organization being a particularly strong indicator of this. Equally, the World Ports Conference programme featured diverse other initiatives underpinned by a new spirit of collaboration and cooperation. Have a Great Xmas and Happy, Healthy and Prosperous New Year from all of us here at Port Strategy.
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NOVEMBER/DECEMBER 2023 | 3
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CONTENTS portstrategy.com
NOVEMBER/DECEMBER 2023 VOL 1023 ISSUE 9
Positive View of DCT Pier 2 | TOS: Age of the Add On | Tyre R&D Gathers Speed
NOVEMBER/DECEMBER 2023
NEWS
FEATURE ARTICLES
17 MSC – HHLA Close
24 Statistical Decoupling
Deal On-Track
17 Half a Billion
For Colombo West CT
17 Gdansk Grant
US$106M for upgrades
19 DPW Controversial Deals
2023 STATISTICAL DECOUPLING
Russia & Tanzania
GAME CHANGER: LINER INFLUENCE? THE ELECTRIC DEFICIT BRAZILIAN BLIGHT
_Port Strategy Nov/Dec 2023.indd 1
22/11/2023 12:36
On the cover 2023 has seen its fair share of challenges not least due to geopolitical conflicts and tensions. Against this background, it is a little ironic that the ports sector and partners in supply chain operations generally can be seen to be demonstrating a greater willingness to cooperate. It is perhaps inevitable given the scale and cost of the challenges ahead – business, technical and regulatory. These and other areas of challenge can only benefit from a more collaborative approach
19 IAPH 2024
Partnering with Mercator
19 Vizhinjam First First Crane but…
10 1H 2023 China Box Volumes
11 Brazil Port News 13 METEOR Launched Illicit Substance Detection
13 Supply Chain Harmony
IAPH & chainPORT Link
15 Innovation Hubs Global Network Talks
15 Strategic Partnership
is a proud support of Greenport and GreenPort Congress
One Stop & Tyne ACFS
17 Mooring + Shore Power
GreenPort magazine is a business information resource on how best to meet the environmental and CSR demands in marine ports and terminals. Sign up at greenport.com
A First in Stockholm
19 Double Cone Dundee
The Congress is a meeting point that provides senior executives with the solutions they require to meet regulatory and operational environmental challenges. Stay in touch at greenport.com
Online portstrategy.com 5 Latest news 5 Comment & analysis 5 Industry database 5 Events Online Social Media links Weekly E-News portstrategy.com LinkedIn Sign up for FREE at: 5 Latest news PortStrategy 5www.portstrategy.com/enews Comment & analysis portstrategy 5 Industry database YouTube 5 Events Weekly E-News Sign up for FREE at: www.portstrategy.com/enews
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REGULARS
21 Tlinks he New Yorker Social Media LinkedIn More Engagement with PortStrategy Labour Recommended portstrategy YouTube 21 The Analyst
of MSC HHLA Social MediaScrutiny links LinkedIn Deal Needed PortStrategy portstrategy 23 The Economist YouTube Is Recession Coming or Not?
Key Changes Impacting Market Drivers
26 A Game Changer? Have the Regulators Missed a Trick with Shipping Lines?
29 Confident ICTSI
Unlocking DCT Pier 2 Potential
31 Corridor Options Explored Uzbekistan Plans
33 Trust the Data Improving Insurer Loss Ratios
35 L ithium-Ion Fires
Lithium-ion Batteries Under Microscope
37 UNCTAD Maritime Review 2023 Decarbonisation Implications
39 Electric Deficit
Concern Over Weak UK Government Support
41 Cutting Edge Thinking
News & Views from LISW
42 No Standing Still
US South Atlantic Ports Strategy for 2024
45 Brazilian Blight Drought & Deluge Problems
48 Quality Not Quantity
Clean Data is Critical The Congress is a meeting point that provides senior
executives with the solutions 50 TOS: Age of the they require to meet regulatory and operational environmental challenges. Stay in touch at Add On greenport.com
52 Tyre R&D Gathers The is a executives meeting JoinCongress leading port point that provides senior in Athens, Greece from The Congress is a meeting executives with the Speed 14-16 October 2019solutions point that provides senior they require to meet regulatory executives with the solutions they require to meet regulatory and operational environmental challenges. Stay in touch at greenport.com
58 Postscript
DPW Australia – Horribilis Batteries & Decarbonising Join leading Annus port executives in Athens, Greece from Vessels In-Port 14-16 October 2019
23 The Strategist
www.greenport.com/congress and operational environmental challenges. Stay in touch at greenport.com Join leading port executives in Athens, Greece from 14-16 October 2019 www.greenport.com/congress
www.greenport.com/congress
For the latest news and analysis go to www.portstrategy.com
NOVEMBER/DECEMBER 2023 | 5
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PORT & TERMINAL NEWS It might have provoked a negative reaction from certain members of the Hamburg establishment – Hapag Lloyd, Eurokai Group and Kuehne & Nagel for example – but MSC’s audacious bid to buy into Hamburg terminal operator HHLA looks to be right on track at the time of writing. As of November 20, according to information provided, the City of Hamburg and MSC held a total of 63.3 million shares which is reported to correspond to approximately 84 per cent of the company’s share capital and voting rights. MSC is offering €16.75 per HHLA share with the formal offer scheduled to close on 21 November but an extension to this is a possibility. A key threshold for takeover bids is 90 per cent. This point is highly influential in forcing the remaining shareholders to transfer their shares against their will – the “squeeze out” process as it is known.
MSC – HLLA TRANSCATION ON COURSE TO CLOSE 2ND QUARTER 2024
The transaction, which seems to be proceeding at pace, is still subject to regulatory approvals. Once all regulatory
requirements are satisfied it is estimated that the deal will be concluded in the second quarter of 2024.
n MSC is closing in on securing a buy-in to Hamburg-based terminal operator HHLA
SRI LANKA TERMINAL RECEIVES US DFC HALF A BILLION DOLLAR LOAN
The US International Development Finance Corporation (DFC) has confirmed it is committing US$553 million to support a new deepwater shipping container terminal at the Port of Colombo, Sri Lanka. DFC is making a direct loan to the consortium developing the terminal, which is 51 per cent owned by India’s largest port operator, Adani Ports & Special Economic Zones Ltd, while other partners are Sri Lanka’s John Keells Holdings, which has a 34 per cent share, and the Sri Lanka Ports Authority with the remaining 15 per cent. The US agency states that the
new terminal will cater to growing economies in the Bay of Bengal and comes at a good time for the Port of Colombo, which has been operating close to its existing capacity since 2021. Scott Nathan, CEO at DFC notes: “DFC works to drive private-sector investments that advance development and economic growth while strengthening the strategic positions of our partners. That is what we are delivering with this infrastructure investment in
the Port of Colombo. Sri Lanka is one of the world’s key transit hubs, with half of all container ships transiting through its waters. DFC’s commitment of $553 million in private-sector loans for the West Container Terminal will expand its shipping capacity, creating greater prosperity for Sri Lanka – without adding to sovereign debt – while at the same time strengthening the position of our allies across the region.”
The DFC was established five years ago in response to Beijing’s massive global infrastructure building campaign, known as the Belt and Road Initiative. Through it, Beijing has invested tens of billions of dollars each year to build roads, railways, ports and airports, typically in developing nations, to foster trade and goodwill towards China.
RIELP in PR
Gdańsk Grant
AFC Exits
Port of Dover 2050
The Prince Rupert Port Authority has commenced construction of a new largescale transloading and logistics terminal. Dubbed the Ridley Island Export Logistic Project (RIELP), the facility comprises a 440,000m² greenfield development on Ridley Island and will handle rail-to-container transloading for agricultural, forestry, and plastic resin products, facilitating unit trains of 3050m in length. The facility is due to open in 2026.
The Port Authority of Gdańsk has signed a grant agreement for a new largescale project, known as “Improving the Port of Gdańsk infrastructure and analysing the implementation of a low-carbon OPS system for the sustainable development of the TEN-T network.” Funding of US$106 million is from the Connecting Europe Facility for the implementation of this project during 2023 to 2027. Quay renovation and rail infrastructure are currently under tender.
For the latest news and analysis go to www.portstrategy.com
Africa Finance Corporation (AFC) has disposed of its 35 per cent equity investment in Atlantic Terminal Services Limited (ATSL) in the Port of Takoradi. The move follows AFC committing to spend up to US$138 million in equity and loans in the Takoradi Port Expansion Project in 2019. Ibistek and Ghana Ports & Harbours Authority remain shareholders. The AFC 35 per cent stake has been acquired by Yilport Holding.
BRIEFS The UK’s busiest passenger and roll-on/roll-off (ro-ro) port, Dover, has launched its longer-term strategic masterplan, known as ‘Port of Dover 2050.’ Key components include championing rapid decarbonisation, incorporating plans to achieve the UK’s first high-volume shipping corridor as part of a rapid journey to net zero and working with government on a remote and digitally led solution for the incoming EU Entry-Exit system.
NOVEMBER/DECEMBER 2023 | 7
PORT & TERMINAL NEWS
DP WORLD NOT AFRAID TO “SAIL CLOSE TO THE WIND” Rosatom Agreement Dubai-based port operator DP World is growing a reputation for “sailing close to the wind” in terms of the deals it concludes and actions it takes. The two latest deals that fall into this bracket were both announced in late October, namely, a joint venture company set up with Russian nuclear agency Rosatom to develop container shipping through the Artic and secondly the signing of a 30-year concession to operate Dar es Salaam port. The deal with Rosatom involves the establishment of a joint venture company, International Container Logistics, registered on 20th October, with 51 per cent owned by Rosatom. It is anticipated that a major part of DPW’s role will be setting up the required port facilities and a possible involvement in container shipping in which it also has existing business interests. It is controversial as in mid-year this year, when it signed a preliminary agreement with Rosatom it attracted the ire of Ukraine’s National Agency on Corruption Prevention (NACP) which added DPW to its list of international sponsors of war, effectively it sanctioned the company in reputational terms. Specifically, NACP gives the reasons for its decision as DPW not only continuing to do business with Russia but also “strengthening its cooperation with the aggressor.”
NACP additionally highlights the forecast of Mikhail Mishustin, Russian Prime Minister, that the Northern Sea Route Project will bring 20 trillion roubles (circa. US$224 billion) to the Russian budget and underlines: “These additional funds will be used by Russia, among other things, to finance the war against Ukraine.” Further, it points out that it is Rosatom that since the Spring of 2022 has been responsible for holding hostage the largest nuclear powerplant in Europe, the Zaporizhzia nuclear power station. It is clear that this new agreement with Rosatom places DPW at odds with the policies of many of the countries in which it has business units or is generally active.
Dar es Salaam Controversy On the 22 October DP World, as has been reported previously in PS e-news, signed a 30-year concession with the Tanzania Port Authority (TPA) to operate and modernise Dar es Salaam Port. The overall stated goal underpinning the concession is to optimise operations to improve transport logistics services throughout Tanzania and its hinterland. Specifically, Makamwe
Mbarawa, Transport Minister, Government of Tanzania, had previously highlighted the goal of raising port revenue from US3.3 billion a year to US$10.9 billion. The deal signed, however, is in effect a watered-down version of the government-to-government deal originally proposed by Dubai to the Government of Tanzania – a deal seen as onerous (against the national interest) by a wide range of parties including the Catholic Church, lawyers, activists and opposition politicians. Such was the extent of feeling against this arrangement – intended to be for a much longer term and involving much wider ranging powers - that it triggered protests on the streets and resulted in a crackdown by government which saw 22 people arrested, according to Human Rights Watch. The fact that the opportunity was not offered to the market on the basis of a competitive tender – the preferred route of such eminent authorities as the World Bank – was also integral to the protests for the usual reasons. The deal just signed is understood to give DPW the right to operate berths 4 to 7 at Dar es Salaam Port, plus as the arrangement unfolds, opportunities in the areas of logistics, rail, temperaturecontrolled storage, a special economic zone with major emphasis initially on improving cargo clearance and planning processes.
Vizhinjam First
MSC Gate Deal
AfCTA Created
Vizhinjam Port has received its first ship-to-shore crane at its new container terminal. The greenfield port is due to commence operations by the end of the first half of 2024, although local reports indicate there may be further delays. The port is owned by the Government of India’s Kerala State but will be operated and maintained by the Adani Group under a 40-year concession. The port is located near the southern tip of India.
‘‘
DPW: Reputationally sanctioned by the Ukraine
Eurogate and Terminal Investment Limited (TiL), the terminal operating company of the world’s largest container shipping line, MSC, have confirmed a deal for the joint operation of the MSC Gate Bremerhaven terminal for another 25 year period, to 2048. The contract was first signed in 2004. The terminal partners have confirmed joint discussions are underway regarding modernisation of the facility.
For the latest news and analysis go to www.portstrategy.com
The world’s largest free trade area has been created and is to be known as the African Continental Free Trade Area (AfCFTA). The development comes as container imports entering the continent in the fi rst seven months of 2023 were up by 6.7 per cent over the comparable period of 2022 according to Maersk Broker. The West Coast of Africa is the driver of trade, with port activity increasing by 20.9 per cent versus 2022.
IAPH World Ports Conference 2024
At the conclusion of the 2023 World Ports Conference in Abu Dhabi, incoming IAPH president Jens Meier announced that Hamburg Port Authority will be the host sponsor of next year’s IAPH conference. The dates have been confirmed for 8-10 October 2024 and will be held in the Congress Center Hamburg (CCH) with up to 1000 delegates expected. This will be the first conference that IAPH is organising in partnership with Mercator Media. UK based Mercator has a longstanding understanding of the ports and terminals sector through publishing the highly respected Port Strategy magazine, producing GreenPort Congress, GreenPort Oceania. The partnership includes the organisation of the 2024, 2025, and 2026 World Ports Conferences. The 2025 World Ports Conference has already been decided to be held in Kobe, Japan, to mark the 70th anniversary of IAPH. Mercator Media will also be taking over the publication of the Ports & Harbors magazine. Andrew Webster, Chief Executive of Mercator commented, ‘Ports facilitate world trade and working with the leading representative association to help enhance The World Ports Conference and Ports & Harbors magazine will be a great opportunity for the team at Mercator. It also complements our existing activities in this vital industry sector’.
BRIEFS Wind Award in NJ
A total of almost US$52.5 million from the Port Infrastructure Development Program has been awarded to the Port Authority of New York and New Jersey and the South Jersey Port Corporation. As part of modernising infrastructure and security to enhance cargo movements, US$20.5 million has been specifically allocated to the South Jersey Port Corporation for Phase 2 of the specialist Wind Port located in Paulsboro.
NOVEMBER/DECEMBER 2023 | 9
Qingdao in the north of China had a very strong first half of 2023, adding 1.47 million TEU over comparable period of 2022, to record 13.94 million TEU by the end of June 2023. The second h port growth was also in the north, at Tianjin, which recorded an eight per cent improvement fr 10.52 millionTRADE TEU in H1 2022 to 11.36 million TEU for the comparable period in 2023. In Centra NEWS SPECIAL: CHINA CONTAINER China, Shanghai led the way with a 5.3 per cent increase between the two respecSve periods, despite congesSon and COVID-19 issues in Q1 2023.
1H 2023 CHINA BOX VOLUMES MUCH LOWER
Growth at remaining faciliSes across the Central and South areas was much lower, for example both Shenzhen (H1 2022 total was 14.40 million TEU, H1 2023 was down to 13.53 million TEU) China’s half year container throughput figures an11.74 overall of five per cent, Guangzhou (H1 show 2022 was millionrise TEU,in H1containers 2023 was up marginally to 12.13 million TEU).
but it’s a mixed bag of results for individual port performances. A J Keyes presents the highlights
MUCH LOWER Growth at remaining facilities across the Central and South areas was much lower, for example at both Shenzhen (H1 2022 total was 14.40 million TEU, H1 2023 was down to 13.53 million TEU) and Guangzhou (H1 2022 was 11.74 million TEU, H1 2023 was up marginally to 12.13 million TEU). However, it is important to draw a comparison to the position in H1 2019. This was pre-COVID-19 and Chinese ports had been seeing tremendous growth. Following the impact of the pandemic and subsequent rebound, it can be seen in Figure 2 that almost all of China’s ports handled more in H1 2023 than in H1 2019. Nevertheless, things are changing, which appears in-keeping with manufacturing trends. Overall, China reported a 12.4 per cent decline in exports during June 2023, partly due to slowing global demand, but also partly due to companies moving their manufacturing outside of China. According to specialist information provider, Data&, exports from the country have now fallen for 12 consecutive months to June 2023, with this figure the highest since the COVID-19 pandemic. Despite, however, the possibility of lower growth, port investment continues, with many operators targeting technology investment and green initiatives to improve efficiencies. There are various ongoing and known projects, at both large and smaller ports and terminals, including: l Shanghai International Port Group is in the process of spending CNY51.3 billion (US$7.2
10 | NOVEMBER/DECEMBER 2023
Figure 1: Comparison of H1 2022 vs. H1 2023 Growth by Major Ports by Regions in China
Xiamen
Guangzhou South
Source: Ports, www.dataand.com
Central
Shenzhen
Ningbo-Zhoushan
Tianjin North
Shanghai
14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% Qingdao
Overall, container port growth in China for the first half of 2023 was “only” up five per cent over 2022. So which ports are pulling the average up and where is the average being pulled down? The regional split in China is shown in Figure 1 and it can be seen that the northern ports, serving the manufacturing powerbase, had the strongest growth in the first six months of 2023. Qingdao in the north of China had a very strong first half of 2023, adding 1.47 million TEU over the comparable period of 2022, to record 13.94 million TEU by the end of June 2023. The second highest port growth was also in the north, at Tianjin, which recorded an eight per cent improvement from 10.52 million TEU in H1 2022 to 11.36 million TEU for the comparable period in 2023. In Central China, Shanghai led the way with a 5.3 per cent increase between the two respective periods, despite congestion and COVID-19 issues in Q1 2023.
Source: Ports, www.dataand.com n Figure 1: Comparison of H1 2022 vs. H1 2023 billion) to develop a new port and container Growth at Major Ports by Regions in China terminal at the Yangshan Deep Water Port in However, it is important to draw a comparison to the posiSon in H1 2019. This was pre-COVIDZhejiang province. The facility will have and Chinese ports had been seeing tremendous growth. Yet,Operating followingasthe impact seven container berths, with a total annual sources on site. a smart portof the pande throughput capacity of 11.6 million TEU. has reduced costs by about 30 per cent and Construction commenced at the end of 2022 scaled down the on-site workforce to 200, and is scheduled to be completed within an compared to nearer 800 for a comparably eight-year time period. sized traditional facility, while using l Shandong Container Terminal (SCT), operator automation to improve safety and working of the Yangshan Port’s fourth phase, which conditions for its workforce. Using claims to be the world’s largest automated automation has led to reduced berthing container terminal, is expecting to handle 6.6 times by seven per cent, through quicker million TEU in 2023, surpassing the design and more efficient vessel operations this capacity of 6.5 million TEU, necessitating the year, according to the port operator. l Yangpu Port, located in China’s Hainan need for more space. Jin Jian, General Manager of SCT, outlines the strategy moving island, commenced its largescale expansion forward: “We are looking to make the programme in January 2023. It is adding five terminal more intelligent and environment new berths to the existing Xiaochantan friendly as we increase its capacity to better Container Terminal, which has 830m of serve the container liners. An annual capacity berth and eight ship-to-shore cranes. Four of more than 7 million TEU is targeted as we new berths will accommodate ships up to expand computing power and make proper 24,000 TEU in size, with the remaining logistics arrangements.” facility servicing ships up to 14,000 TEU. This l Tianjin Port is leveraging 5G technology, project will raise the port’s total capacity automation and renewable energy, as part from 5.5 million TEU to seven million TEU, of its ongoing transformation to use annually. A key component of development large-scale autonomous driving technology. at this port is a 2.35 Megawatt power plant It has also been certified as carbon neutral, that utilises the roof space of buildings in the powered with 100 per cent renewable port area, which has been confirmed as a energy provided from solar and wind model of “independent power generation for self-use with surplus power sold to the grid,” with more than 80 per cent of the green power generated consumed locally. Investment in container capacity in China is, therefore, continuing apace, but trade uncertainties obscure the longer-term development of demand in a much more hostile geopolitical climate.
‘‘
Overall, container port growth in China for the first half of 2023 was “only” up five per cent over 2022
For the latest news and analysis go to www.portstrategy.com
BRAZIL PORT NEWS It’s all change again at the Brazilian port ministry where key offi cials have been replaced for political reasons and where the STS 10 tender for Santos (to build a new container terminal (in South America’s largest port with 4.98 million TEU handled last year, up 3.2 per cent on 2021) has been delayed for “further discussions” Silvio Costa Filho has taken over as Minister for Ports and Airports – from Marcio Franca, who was only in the job for nine months – and Mariana Pescatori has replaced the popular and respected Fabrizio Pierdomenico as the head of the Secretariat of Ports. She too has a good reputation but not necessarily in the port sector, and many port users fear it will take time for Costa and Pescatori to get up to speed before making key decisions. “The scenario is changing again, especially regarding STS10 where there is talk of going back to the original plan [to build a very large Super Terminal],” reports one wizened Santos based consultant. “Many of the changes are once again down to political game playing rather than for the improved future of the port of Santos and the Brazilian logistics transport network. Those of us
ALL CHANGE AT BRAZIL’S PORT MINISTRY AND TACTICS AS WELL?
who want to see much-needed improvements are fed up with it, although Pescatori comes with recommendations by many.” Pierdomenico, who was once on the Board of Santos and was responsible for a far-reaching Santos Port Master Plan, has gone back to his consultancy business, but some sources suggest he might be in line for a place on the five-man board of the Santos Port Authority (SPA). Sources at SPA suggest that the
current CEO of the port authority, Anderson Pomini, will continue for the foreseeable future despite being appointed by Franca. This is because he is a “Technico” (technical type), rather than a “Politico” (an outright political appointment), and therefore unlikely to interfere with any political decisions. However, it has also been suggested that political choices could be made to three of the other five SPA board positions to
n Silvio Costa Filho, Brazil’s new Minister for Ports and Airports
assist President Lula’s power politics in Brasilia. Costa is of the same party, the Republicanos, as a previous Port Minister under Bolsonaro, Tarcisio de Freitas, now the Governor of Sao Paulo. It is understood that the two will combine to build the long-awaited tunnel to connect the right bank with the left bank of the port of Santos.
SANTOS ALSO IMPACTED BY EXTREME WEATHER EVENTS The extreme weather phenomena in northern and southern Brazil (see feature article) and its effects on ports in those regions has led to “extreme congestion” at the port of Santos, the biggest port in South America. Cancellation of services from Santos (serving the huge 20 million plus population of metropolitan Sao Paulo) to Manaus, in the north Amazonas region, has caused a backlog at all the key terminals in Santos. Overflows from Brasil Terminal Portuaria (BTP) and DP World Santos, have led to a log-jam at Santos Brasil, which initially had some spare capacity but then struggled to deal with the extra boxes. At the same time, the southern port of Itajai saw the Portonave box terminal closed for 17 days due to extreme flooding upriver
causing dangerously fast currents and this led to carriers skipping the port and instead offloading at Santos. Leandro Carelli Barreto, a Director with the Solve Shipping Consultancy, notes that five services from BTP and two from
DP World had to make calls at Santos Brasil because the former two could not cope with the extra volume. He adds that this “proves” that Santos needs the STS10 project to go ahead, to build another big box terminal in Santos.
Teconnave, a new company set up by MSC subsidiary Portonave, is all set to take over the former APM Terminal Itajai, from early next year with a contract that will last at least two years. However, a last-minute intervention from Livramento Holdings, the fourth placed bidder, means they may have to wait, as Antaq, the National Waterways and Ports Authority, examines an eleventh hour appeal regarding possible “anomalies” in the process. Having offered to handle only 35,000 containers per month for the short-term contract
Teconnave came in third behind MMS Empreendimentos and Mada Araujo (offering, respectively, 66,000 boxes and 44,000) but once Antaq (the regulatory body) bore down into the bid details it decreed that the first two outfits did not have the capacity or know-how to deliver that many boxes. These two entities are also appealing to Antaq, suggesting that correct procedures were not followed by Diogo Piloni, when he was National Secretary of Ports under
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“Yes, I know the weather extremes have been exceptional this year, but every year we do get some floods and a dry spell in Manaus, so we definitely need STS10 to go ahead to deal with these emergencies when they occur,” argues Barreto.
ITAJAI: THE WAIT GOES ON
the Bolsonaro government. Portonave is still likely to be the one that can best perform and deliver what it promises,” says Robert Grantham, Director, Solve consultancy and a former commercial director at the Itajai Port Authority. “Whoever wins in the end,” he elaborates,,” it will be great for the local shipping community to see the ex-APMT Itajai terminal, a 700,000 sq m facility, up and running again as it hasn’t handled a single container this year.”
NOVEMBER/DECEMBER 2023 | 11
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DIGITAL NEWS
FUNDACION VALENCIAPORT CONFIRMS SUPPORT FOR THE METEOR PROJECT
Fundación Valenciaport is supporting the launch of the METEOR project, an initiative that seeks to increase the safety of maritime transport, specifically of goods transported by container. METEOR, which will run from October 2023 to September 2026, has a total budget of almost €3 million, and is co-financed by the Horizon Europe programme. It is seeking to improve the detection of illicit substances in containers, including drugs, explosives, and even biological threats, through its vapor-based detection technology. Fundación Valenciaport explains that less than five per cent of containers are subject to physical inspections by European customs, due to the large volume of goods and containers moving through such a big geographic area and
covering a vast number of ports. The solution proposed by the METEOR project involves detecting illegal substances in what is described as an “intelligent way,” using a vaporbased detection technology that utilises innovative sampling technologies, as well as innovative analytical instrumentation and processing techniques based on NonTargeted Screening (NTS). Among the main features of the initiative is its portable, multi-purpose nature and its affordable, non-intrusive character, with a high Detection Rate (DR) and low False Alarm Rate (FAR). Fundación Valenciaport will play a key role in the project by guaranteeing access to scan containers in the Port of Valencia, while also taking responsibility for
n Fundación Valenciaport is one of 12 partners across Europe launching the METEOR initiative to improve the detection of illicit substances in containers
Nokia for Kingston
ADP to Deploy MEP
Win for Circle
Kingston Freeport Terminal Limited (KFTL) has selected Nokia to deploy a private wireless network at its container terminal. The system will be installed by Nokia Channel Partner EGC International. This latest development continues the digital transformation of KFTL, which includes adopting other new technologies such as the Nokia DAC (Digital Automation Cloud), and MXIE, a wireless digitalisation platform.
AD Ports Group is deploying RightShip’s Maritime Emissions Portal (MEP) in its portfolio of facilities globally. MEP is a digital solution that combines Automatic Identification System (AIS) vessel movement data with RightShip’s vessel information. The outcome is a solution that calculates ships’ emissions within port and terminal facilities and highlights opportunities to reduce environmental impact, allowing ADP to effectively measure and manage vessel emissions.
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facilitating the collection of more than 250 air samples from actual containers. This will be carried out on behalf of the system developers at one of Valencia’s port terminals. Fundación Valenciaport is an initiative of the Port Authority of Valencia specialising in Applied Research, Innovation & Training centre services for the port and logistics cluster. It enjoys the collaboration of businesses, universities and institutions from the port community. The METEOR consortium is formed by 12 partners representing four different European countries of the Netherlands, Belgium, Spain, and Ireland.
CIRCLE Group, of Italy, has been awarded the tender issued by the European Maritime Safety Agency (“EMSA”) to evaluate the feasibility of developing a Maritime National Single Window (“MNSW”). The project will assess activities across a group of countries neighbouring Europe, consisting of Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, and Tunisia, Georgia, Moldova, Turkey, and Ukraine.
IAPH and chainPORT Partnership The International Association of Ports & Harbors (IAPH) is partnering with chainPORT, a multilateral partnership of the world’s leading ‘smart ports,’ on a project to develop a common understanding of the critical components of digital port infrastructure in order to harmonise data throughout the maritime supply chain. The initiative, which intends to deliver high quality data, standardisation, and smooth information flow in real-time, will be achieved by building on progress already made in the sector by participating parties. This will, help deliver standard processes and terminology associated with the port call process. Specifically, the project is intended to prioritise meeting the evolving needs of Beneficial Cargo Owners (BCOs), who, in the post-pandemic era, continue to seek heightened control and visibility across supply chains. chainPORT was introduced in 2016 by the port authorities of Hamburg and Los Angeles in collaboration with the Global Institute of Logistics. The initiative is supported by the ports of Antwerp-Bruges, Barcelona, Busan, Felixstowe, Gothenburg, Indonesia, Montreal, Panama, Rotterdam, Singapore, Shanghai, Shenzhen, and Tanger Med.
BRIEFS RPs for AI
DNV has published a series of recommended practices (RPs) for the application of artificial intelligence (AI) across infrastructure and critical assets. DNV states that the increasing use of AI necessitates a new approach to risk because its use means alterations are made in milliseconds whereas more traditional mechanical or electrical systems are slower. The RPs cover systems utilising data, sensors, algorithms, and digital twins.
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DIGITAL NEWS
DISCUSSIONS INITIATED ON A GLOBAL Australia: NETWORK OF PORT INNOVATION HUBS Strategic Partnership
The ports of Halifax, Hamburg and Valencia are in discussions about the creation of a collective global network of port innovation hubs. The announcement of this new initiative took place during the Port Entrepreneurship International Congress, held as part of the recent Valencia Digital Summit. The aim of this project is to establish a global alliance of port innovators. It is looking to develop a clear focus of driving the adoption of innovation in the global port system by connecting communities of innovation centres, including start-ups, entrepreneurs, companies, researchers, universities, and investors, to share innovative
ideas, project results, innovation experiences, methodologies and best practices. Antonio Torregrosa, CEO, Valenciaport Foundation, explains: “This kind of initiative has the potential to leverage the existing capabilities of innovation hubs globally, offering test spaces in the ports of the network’s innovation hubs, workspaces and collaborative platforms to be used as technology testbeds for members and partners from other hubs in the network.” Michael Davie, Vice President of Operations and Technology at the Port of Halifax, adds: “The connection of the three hubs will bring additional international perspective to each of the hubs
n Hamburg Port Authority states that it is of utmost importance to share with other hubs best practices and to communicate the benefits and results of innovative projects with all network members
Precision Navigation
Constanta PCS Study
Smart Tyne
The Port of Long Beach, Jacobsen Pilot Service, and the National Oceanic and Atmospheric Administration (NOAA) have developed a new high-precision navigation tool. A set of data files, generated via NOAA’s Precision Marine Navigation Program called S-102, provide high-resolution depth data that can be added to NOAA’s standard Electronic Navigational Chart (ENC) to create detailed custom depth contours in navigation systems.
An international tender for developing, designing and implementing a new Port Community System (PCS) for the Port of Constanta in Romania has been secured by Romanian IT company Critical Technologies SRL (consortium leader), HPC Hamburg Port Consulting GmbH and two Estonian maritime and shipping partners, E.N. Shipping Services OÜ and Saaresalu OÜ. The initial study work will take nine months to complete,
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and their members. This will allow us to think more globally and have a greater understanding of international culture, ideas and solutions to complex problems that would benefit start-up projects at the local level and expand existing capabilities for technology testing and demonstrations.” The three innovation hubs are now entering the last phase of the network design and the initiative is expected to be officially launched “in the coming months.”
The Port of Tyne, in collaboration with BT and Ericsson, has launched a new 4G and 5G private network, which it says makes it the first smart port in the UK able to deploy portwide standalone connectivity. Deployment of this private 5G wireless network means the port is able to integrate future 5G applications and advanced technologies, including autonomous navigation, survey drones, smart surveillance, AI and remote crane operations.
A new strategic partnership is targeting improvements to the cargo supply chain in Australia by narrowing the gap in container visibility and transparency. OneStop, a major provider of supply chain optimisation solutions and Tyne ACFS, a leading player in Australia’s transport, warehousing, and freight logistics sector, have formed an alliance to pioneer innovative solutions that optimise container movements across the Oceania region and bring an unparalleled level of visibility for all supply chain participants. Key benefits foreseen are reduced costs and a more sustainable future for the industry. Integral to the optmisation process are the deployment of next generation automation and technology and streamlined processes The former will leverage One Stop’s Depot Operating System, One Stop Modal and advanced data capabilities. The latter will utilise One Stop’s Vehicle Booking System and Licence Plate Recognition (LPR) system. The implementation of key One Stop systems at Tyne ACFS’s Port Botany facility is scheduled to take place in early December and represents an opening move in this new partnership.
BRIEFS eBL Tokenising
Global Shipping Business Network (GSBN) has signed an MoU with ZAN to explore technical innovations for tokenising the electronic Bill of Lading (eBL). Bertrand Chen, CEO at GSBN, said, “The move towards eBL is already a major leap for the industry but together with tokenisation, we can go one step further. Together with ZAN, we will explore tokenising the rights to these shipments with the aim of unlocking an entirely new asset class.”
NOVEMBER/DECEMBER 2023 | 15
MOMENTUM WHERE IT MATTERS
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EQUIPMENT NEWS
NEW GENERATION MOORING AND SHORE POWER ARRIVES IN SWEDEN
Sweden’s first MoorMaster NxG vacuum mooring system has officially entered service at Port of Kapellskär, part of Ports of Stockholm. It is in use with Finnlines’ new-build Ro/Pax passenger and freight vessel, Finnsirius, with an expectation of seeing significant safety, operational and sustainability gains. The system is reported to moor and release the vessel in less than 30 and 15 seconds, respectively. Johan Wallén, Chief Commercial Officer at Ports of Stockholm, notes: “The vacuum technology improves sustainability by providing a safer working environment and reduced environmental impact.” He adds that using MoorMaster enables the ship’s engines to be
shut off sooner after arrival in port, resulting in significant fuel savings and reduced NOx and CO2 emissions and noise reductions – benefits that are increased further with connection to shore power using Cavotec’s PowerReach solution, which has also been installed at the Kapellskär berth. Faster mooring in just 30 seconds will quickly add up to significant savings, meaning one MoorMaster system can save thousands of litres of fuel per year and with it, thousands of tonnes of CO2, NOx, SOx and particle matter emissions. The ability to guarantee efficient mooring at the touch of a button dramatically cuts idling and thruster use while a vessel is berthing, thereby reducing fuel
n Now installed together at Kapellskär, the joint MoorMaster NxG and PowerReach application provides an example of how ports and shipping lines are able to make their operations safer, more efficient and more sustainable
Big Vietnam Order
Electric Kalundborg
Simulating Teesport
Port of Haiphong Joint Stock Company (CHP) in Vietnam has placed an order with MITSUI E&S Co., Ltd. (MITSUI E&S) for six Ship-to-Shore (STS) gantry cranes and 24 rubber-tyred gantry (RTG) cranes. The STS units have a 65m outreach. This deal is one of the largest ever in the Vietnam market. CHP is currently constructing the container terminal in Lach Huyen area in Hai Phong City, located in the northern part of Vietnam.
The Port of Kalundborg in Denmark has confirmed plans to electrify equipment at its container terminal within the next seven months. This process will initially begin with all machinery handling containers utilising HVO100 fuel (hydrotreated vegetable oil) in the short term to reduce CO2 emissions by 90 per cent, while longer-term decarbonised solutions, such as battery power, are rigorously assessed.
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consumption and emissions in port. It also means less tugboat time, which, in turn, further reduces emissions and costs. Cavotec is a specialist in provision of shore- and ship based power connection services globally and while Ports of Stockholm first provided onshore power connection for vessels in the 1980s, the Kapellskär application, offering both next generation mooring and shore power combined, is the first of its kind in Sweden.
PD Ports’ Tees Dock is now using a new immersive crane simulator that can replicate high-risk events without endangering drivers or other port workers. The Full Mission Crane Simulator was supplied by GlobalSim at a cost of GB£400,000 (US$485,000) and has been set up to recreate the ship-to-shore cranes, rubber tyre gantry cranes, and mobile harbour cranes used at Teesport, plus different operating conditions, such as high winds or working at night.
BEST Steps Towards Decarbonisation Six new hybrid shuttle carrier cranes have arrived at Hutchison Ports Group’s BEST terminal in the Port of Barcelona. This new equipment represents a pivotal step for the terminal in its decarbonisation process with the existing shuttle units the only items of machinery at the facility still powered by fossil fuels. All other equipment at the BEST terminal is primarily powered by electricity that comes exclusively from certified renewable sources. With the arrival of this new equipment, the BEST terminal is expecting CO2 emissions to be reduced by up to 40 per cent due to the use of a highly efficient regenerative energy system, contributing to a substantial improvement in the terminal’s energy efficiency. Guillermo Belcastro, CEO, BEST, states: “We are very proud to continue to take steps with this investment to reach our decarbonisation goals. Currently, each container passing through BEST saves 65 per cent in emissions compared to a conventional terminal.” The decarbonisation of the shuttle carrier equipment is part of a wider range of initiatives by the Hutchison Ports Group in Barcelona to minimise its carbon footprint, which includes the installation of solar panels, the electrification of the fleet of vehicles and the electrification of the quays.
BRIEFS Vegetable Oil Trials
Hong Kong-based Modern Terminals is commencing a trial programme to test hydrotreated vegetable oil (HVO) at its facilities at Terminal 9 (South). It will be the first company in Hong Kong to deploy this renewable diesel. The test will see HVO used in three types of equipment including a rubber-tyred gantry (RTG) crane, a reachstacker and an empty stacker, over a three-to-fourweek period.
NOVEMBER/DECEMBER 2023 | 17
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EQUIPMENT NEWS
CMA TERMINALS FORTALEZA INVESTS IN KONECRANES’ MOBILES CMA TERMINALS Fortaleza has confirmed delivery of two new mobile harbour cranes to support its terminal operations located in northeastern Brazil. The two new units are Generation 6 Konecranes Gottwald ESP.8 Mobile Harbour Cranes with a working radius of 54m and a capacity of up to 150 tonnes for vessels up to postPanamax class. The operator has stated that the cranes are primarily expected to be used for container handling but remain flexible enough to also undertake movements of project and general cargo, as needed. Konecranes confirms that a strong lifting capacity curve improves performance and a high classification doubles service life in container handling. The cranes use the innovative Konecranes hybrid drive, which consists of a modern eco-efficient diesel engine paired with ultracapacitors that can recharge using energy recovered from lowering and braking motions. This gives the power needed for peak performance, while saving fuel on lighter loads.
This order is part of Ecolifting™, Konecranes’ continuous work to decrease the carbon footprints of its customers, which means utilising eco-optimising diesel drives, hybridisation and greater use of fully-electrified fleets of equipment. Sergio Lima, CEO of CMA Terminals do Brazil, notes: “Highly efficient operations promote commercial development and increased revenues, strengthening the local economic and social infrastructure. Konecranes was able to offer us impressive technology that is sure to provide us with the fast and precise container handling we
n CMA Terminals Fortaleza has received two new Generation 6 mobile harbour cranes from Konecranes and states the increased productivity they offer aligns with the terminals commercial goals
need to improve our productivity. We’re looking forward to seeing just how quickly the cranes can make a difference.” The introduction of these new units form part of the first stage of a port expansion project by Marseille, France-headquartered CMA CGM Group that will see the Port of Fortaleza develop as a regional transport hub.
n The addition of 11 new double Cone Fender Systems is supporting Forth Ports Dundee’s expansion project that is allowing the port to improve its capabilities to service offshore wind projects in the North Sea
positions the port to support the offshore wind farm industry. As part of this expansion process, a total of 11 double Cone Fender Systems each consisting of two Cone Fenders (SPC 700, G2.1) and a closed box panel with UHMW-PE pads, have been installed. Of particular note, is the size of the steel panels used, which are 2032 x 6950mm, confirmed by ShibataFenderTeam
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Kalmar Selected
Kalmar, part of Cargotec, has concluded an agreement to supply Kingston Freeport Terminal Limited (KFTL) with 12 Kalmar hybrid straddle carriers for deployment at its Kingston facility in Jamaica. The order was booked in Cargotec’s Q3 2023 order intake with delivery of all machines scheduled to be completed during Q2 2024. The new units will be connected to Kalmar Insight – a performance management tool that turns data into actionable, impactful insights. .
Trelleborg Deal
DOUBLE CONE FENDERS FOR DUNDEE PORT
ShibataFenderTeam, working in collaboration with Graham Construction, has designed and supplied a new customised solution of double cone fenders to the Port of Dundee in the UK. With an excellent location on the east coast of Scotland, Forth Ports Dundee is ideally placed to support the North Sea oil and gas industry, and new quayside construction reportedly also
BRIEFS
as being relatively large due to the tidal ranges typically experienced in this area of the UK coast. The project scope also included 8 T-Head Bollards (100t) and four Removable T-Head Bollard (100t); the latter customised with an anchor frame to create removability of the bollards during operation. Following this modernisation project, the Port of Dundee is offering an additional 300m for safe berthing operations and a new heavy lift quay capable of roll-on/roll-off as well as conventional loading and unloading operations.
Trelleborg Marine and Infrastructure has signed a deal with JERA Co., Inc. Japan’s largest power generation company and global logistics enterprise, Nippon Yusen Kabushiki Kaisha (NYK), for a trial operation of its DynaMoor mooring system at JERA’s Hitachinaka port thermal power station. The trial will involve two of Trelleborg’s DynaMoor Type-L ship mooring systems. It is scheduled to commence in 2024, with the goal of enhancing the safety, efficiency, and movement of moored vessels at the port.
Renewable Hunterston
SSE Energy Solutions has signed a strategic partnership with the owners of Hunterston Port and Resource Campus (Hunterston PARC) to provide renewable energy for the proposed development of the site. UK port operator, Peel Ports Group, is developing an energy and marine campus on 300 acres of land within its Clydeport facility in Scotland. SSE will provide the infrastructure and renewable energy.
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CRUISE CAPITAL OF THE WORLD GLOBAL GATEWAY OF THE AMERICAS
THENEWYORKER BARRY PARKER
Labour issues just can’t go away. Certainly, it seemed that any maritime news during 2022 and 2023 always included some snippet or another about negotiations around the West Coast of the States and Canada. Flows of containerised cargo imports did indeed shift from Pacific ports into the Atlantic. And now, at the time of writing, a labour-related shutdown of the St. Lawrence Seaway (not quite an actual port, but almost) is in its early stages. Hopefully, this one will be short-lived. Why should ports ramp up their engagement on such matters? After all, many ports have landlord status, and don’t actually operate facilities. Ports, however, need to be responsive to the general public’s changing moods, and also to the ability of bad news, albeit of the trade press variety, to permeate into mainstream media. “Cargo doesn’t vote, people do,” is something we heard frequently
LABOUR ISSUES: PORTS SHOULD RAMP UP THEIR ENGAGEMENT
prior to the Supply Chain Crisis of 2020 – 2022, intimately tied to the unprecedented (well, for 100 years) pandemic environment of those years. While I would not use the cliché of “sea change”, it is fair to say that the general public (the consumers of the aforementioned import flows) the majority of whom don’t have bedroom views of the big ports
n More engagement by port authorities in labour issues could prove a positive step
or channels such as the Seaway, is much more keenly aware of cargo flows than in previous years. Mainstream media outlets are now watching such issues closely; even the venerable New York Times – NYT (sometimes called the Gray Lady), which had a “shipping reporter” back in the
day, now has multiple writers covering logistics. As an aside, the NYT used to publish lists of vessels inbound to the docks, but doesn’t do so anymore. Ports can exert important influences on labor issues. On the West Coast earlier this year, the big ports did get involved in the nuts and bolts of actual logistics by fine-tuning vessel queueing practices. Behind the scenes (not directly visible to me… but maritime writers must frequently draw inferences), potential and actual political favours were presumably an ancillary add-on to the actual bargaining that occurred. It’s no longer enough to leave it to the feuding parties to resolve their differences in a timely manner- ports should make efforts to get out in front of negotiations before trade flows are disrupted.
THEANALYST PETER DE LANGEN
After the news broke that the government of the ‘city-state’ of Hamburg had reached an agreement with MSC about the sale of a minority share of HHLA to MSC, HHLA issued a press statement which read: ‘HHLA has been informed by its main shareholder, the City of Hamburg, that the latter has reached an agreement with Mediterranean Shipping Company S.A. (MSC) on a strategic participation in HHLA’. This statement and further information provided by the city government indeed points out that this was truly a government initiative, with confidential negotiations between the Hamburg government and MSC. And while perhaps to some that comes across as perfectly legitimate, it strikes me as a rather strange process. A couple of questions.
MSC INITIATIVE TO ENTER HHLA WORTHY OF SCRUTINY The strategic partnership between HHLA and MSC in Hamburg; an unusual process First, where was Hamburg Port Authority? This corporatised entity acts as the developer of Hamburg’s port complex. The shipping lines and the terminals are its customers. So, you would think they would be best placed to lead a process to strengthen/ develop a partnership with a shipping line. Yet their role, apparently, was very limited. Second, how did the politically elected entrepreneurial dealmakers know they were getting a good and indeed the best possible deal? Was there a compelling reason not to work with a competitive bidding process? Such a competitive bidding process could have incorporated the effects on Hamburg’s port (in terms of
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volumes, investments, sustainability and so on). It would have given other companies a chance to place a competing bid. One company that immediately comes to mind is Hapag Lloyd, the shipping line with the largest volumes in Hamburg. But other candidates also could have been relevant. In addition, competitive bidding is an obvious choice to get the highest price for the shares of HHLA. Third, how certain are MSC’s promises to turn Hamburg into a ‘global hub’? I am sure additional volumes will come to Hamburg, but it is good to keep in mind that MSC reached an agreement with ECT in Rotterdam for the development of a seven million TEU terminal in Rotterdam, while
MSC already has a strong hub in Antwerp and a stake in Bremerhaven. There is a risk of overly optimistic views on the effects of MSC’s stake. In addition, there may be ‘negatives’ too, such as reactions of competing shipping lines – which in the case of Hapag Lloyd has emerged and the more complex challenge of HHLA to continue to position itself and especially its inland logistics branch METRANS, which has developed a very strong rail network, as a ‘neutral’ service provider. All of this is not to say that the deal is a bad deal - there are far too many unknowns for that - but that the process of selecting partner has been unusual and deserves scrutiny.
NOVEMBER/DECEMBER 2023 | 21
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THEECONOMIST BEN HACKETT
IS RECESSION COMING OR NOT? There is an argument as to whether recession is still on the way, yet many indicators suggest that it will be avoided. No one really knows which is odd. It is a tough world that we live in, with the repercussions from Covid, rising inflation, rising interest rates, wars and conflicts in Europe, the Middle East and Asia. Europe, China, and the U.S. have been struggling with fighting recessions using fiscal measures and government support to boost investment. The U.S. appears to be moving away from a possible recession, Europe continues to struggle looking for growth and China has finally seen a quarters worth of growth (if we are to believe their statistics). As inflation increased globally, central banks had few tools to deal with it other than to raise interest rates. The strange thing is that the inflationary trend had little impact on unemployment, which has caught most
economists by surprise. At the same time the economists were arguing about when the recession, brought on by high inflation and high interest rates would arrive. The problem was that no one really knew what the lag factors and timing of higher interest rates were. There is a heated discussion as to weather the U.S. is headed for a “soft landing”, i.e., no recession as most usual signs are positive
n Is recession on the way?
with the gross domestic product growing despite the statistical base line indicators suggesting that it should not be. Europe is a laggard in coming up with growth. Unemployment is much higher than in the U.S. but there is a labour shortage as working from home has caused disruption in people wanting to come back to work and qualified
workers have been returning to their home countries. In the maritime industry there are also contradictions at play. Container lines are sitting on huge profits earned in 2022 and early 2023. Some are investing in ships, others in ports and other tertiary transportation sectors. The net result of that, in the container world, is that supply is far outrunning demand with orderbooks across many size ranges, including the 24K+ containerships running at very high levels. The difficulty here is that consumers across all continents remain pessimistic about the future and are putting their money into savings rather than discretionary durable items that keep containers full and ports busy. There is disagreement about the future, with Hapag Lloyd taking a pessimistic view whilst others are more sanguine. We have been here before!
THESTRATEGIST MIKE MUNDY
Talking to my ever-optimistic car dealer he tells me 2025 is the year to have in mind when electric cars will come into their own – suffice it to say I am not yet a believer. What happens when a major catastrophe looms and we all jump in our respective vehicles and leave town at the same time? I don’t imagine it will be that easy to find a charging point however many miles I get up the road! Yes, I know, a bit of a pessimistic scenario but the central point stands, battery technology, including recharging arrangements are still an evolving process. Certainly, this applies in a port and terminal situation as much as anywhere else, not least with regard to port and battery storage options, under various
MATCHING BATTERIES TO IN-PORT VESSEL DECARBONISATION REQUIREMENTS scenarios, to facilitate the decarbonisation of vessels. This latter area – it is worth noting – has recently been the subject of a White Paper compiled by MSE International, the marine sector, non-profit cluster organisation located in the maritime Solent region of the UK. The research received funding from the UK’s Department for Transport (DfT), Transport Research and Innovation Grant (TRIG) 2022, delivered by Connected Places Catapult. The ESSOP project, as it is known, compared a variety of port energy storage options and modelled how these options could be best deployed in order to deliver a financial benefit. As MSE International explains: “The
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ESSOP project considered six different energy storage technologies; three of which were discarded for reasons of limited commercial readiness at scale, leaving three contenders; Lithium-ion, Vanadium Redox Flow Batteries (VRFB) and hybrid Lithium-ion/lead-acid. An energy flow model was built to compare the cost-effectiveness of these technologies and to explore how battery sizing could be optimised, using a levelized cost of storage methodology.” The five-month project concluded, “that an optimallysized smart battery can reduce energy costs by prioritising when power is procured from the grid and by maximising use of PV solar generation.
Furthermore, for ports facing multiple peak loads during each day, the durability of VRFBs make them the more costeffective battery option.” The White Paper is certainly a useful weapon in the armoury of seeking effective vessel decarbonisation when in port. The ESSOP decision support model allows ports to investigate the optimal mix of battery power rating, energy capacity and PV solar to achieve a minimum levelized cost of energy delivered to shore power systems. Copies of the White Paper can be obtained free of charge from MSE International Tel: +44 (0) 2380 111 590 E: admin@mseuk.org
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CONTAINER ANALYSIS
2023 STATISTICAL DECOUPLING The industry thought the COVID-19 pandemic resulted in chaotic macro-economic and port statistics. It seems the period since the pandemic remains equally complex in Europe. Johan Paul Verschuure* looks at changes in the forces driving the market
n The Port of Antwerp-Bruges anticipates a market share gain of roughly a full per cent in 2023. This means it sees an overall decline in the market in the first nine months of the year of an astonishing 9.9 per cent
Geopolitical conflicts, volatile commodity prices and adverse macro-economic parameters result in new dynamics that ports and terminals need to carefully review. Making sense out of the port statistics and the GDP-trade relationship is becoming more complex. Looking at recent container throughput statistics in NorthWest Europe all indicators point to lower volumes than in 2022. The Port of Rotterdam startedthe year with a 11.6 per cent drop in Volumes (by TEU), largely as a result of the Ukraine-Russia conflict which started in late February 2022. In the course of 2023 volumes recovered to quarterly yearon-year (y-o-y) growth rates of -4.6 per cent and 5.6 per cent in Q2 and Q3 respectively. Hamburg followed a similar track albeit with -16.9 per cent in Q1 and -6.4 per cent y-o-y in Q1 and Q2 and went a bit deeper in the red. The port of AntwerpBruges however managed to keep the loss in container volume limited in Q1 with a minus of ‘only’ -5.7per cent, which was however followed by a -4.7per cent and ~ -10per cent in Q2 and Q3 of this year, respectively. The Port of AntwerpBruges is down 6.8per cent over the first nine months of 2023, while Rotterdam is down 7.2per cent down for the year (in terms of TEUs). The stories behind the figures, however, tells an entirely different tale. In its Q3 press release Port of Antwerp-Bruges states that these developments will still result in a market share gain of roughly a full per cent. This means that they see an overall decline in the market in the first nine months of the year of an astonishing 9.9per cent. In mid-October, the port of Le Havre indicated the port is expecting a minus of 15per cent for 2023 after it saw a decline in demand of 16.7per cent in the first half year (in containerised tonnage) giving up the growth resulting from volumes rerouted during the pandemic. Also, the northern major German ports are probably coming in just *Johan Paul Verschurre is a Director of Netherlands-based Rebel Consultancy and is well-known as a port specialist and expert in market analysis/financial and economic matters
24 | NOVEMBER/DECEMBER 2023
under this overall market decline. This would bring NorthWest European container volumes roughly back to the 20152017 levels. The exit of Russian volumes from the range was, to a large extent, built into the 2022 figures (except Q1) So, what is actually happening? GDP -TRADE RELATIONSHIP Over longer periods the GDP-trade multiplier is working well to forecast container demand, as acknowledged across the industry. Looking at the GDP growth over the past few quarters reported by North-West European countries, the decline is nothing like as steep. It seems that Germany is struggling with the poorest GDP performance this year, but it is expected to record only a marginal overall contraction. For other North-West European countries small economic growth may materialise by the end of 2023. Overall, the GDP-trade relationship does not tell the full story for 2023. When filtering out the goods related segments of the economy (primary manufacturing, retail & wholesale, construction, and industry) from the overall economic performance it is apparent that this sector has been outperforming the overall economy since the beginning of 2022 (see chart below). Rising interest rates did affect in particular the financial and real estate sectors. As a consequence, the headline economic growth rate is not currently reflecting the reality in the sectors driving demand in the container sector. However, the decline in demand in the past few quarters is more clearly visible when zooming in on the retail and wholesale sector in North West Europe – i.e., consumer demand. Going forward the outperformance of the retail and wholesale sector in 2021 and 2022 will result in underperformance throughout 2024. Overall, it can be concluded from Figure 1, below, that pre-COVID-19 the goods related economic sectors are performing in sync with overall
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CAPT – CAN U PLEASE PUT Figure 1 AT THE BEGINNING OF THE HEAD BELOW
CONTAINER ANALYSIS n Figure 1: Quarterly Real Economic Growth Good Sectors* and Retail & Wholesale versus Total Economy – North West Europe Source: Eurostat, Oxford Economics, Rebel
*manufacturing, industry, construction and retail & wholesale
economic activity,Oxford but that since 2020 there Rebel are large variations Source: Eurostat, Economics,
drop in inventories (and hence in port demand) can be easily understood. between segments of the economy. This makes understanding When taking into account the strong reduction in inventory the GDP headlines and the implications for the container * manufacturing, industry, construction and retail & wholesale levels in thetofirst quarters of 2023 thislevels represents not as straightforward in pre-COVID-19 times. with this Thesegment Ukraine-Russian conflictascame as a surprise leading an two increase in inventory in Q2a rebalancing of the excessive inventory build-up witnessed of 2022. With demand softening over the summer of 2022 inventory levels went up a bit further, before from late 2021. If the lower build-up in inventories experienced CHANGES IN INVENTORY tapering off shippers started to realise supply chains end demand started to in Q1 were and Q2stabilising 2023 versus and the trendline is extended into the As recently as a year ago full container yards, packed CHANGES INwhen INVENTORY future, the areas above and below the trendline from roughly warehouses, and panic amongst shippers to ensure their soften. Q3 2024 again. containersas would arrive in time events all over the news. warehouses, As recently a year ago fullwere container yards, packed and panic amongst shippers to ensure The totalMore area inactivity between the inventories and the As a result, inventory levels went up to ensure demand could Inventories are typically growing in line with economic activity. means larger inventories their containers would arrive in time were events all over the news. As a2022 result, inventory levels went up trendline is estimated to represent roughly 1.5 million TEU be served despite supply chain disruptions. While this was meet demand and hence a stabledespite increasesupply in totalchain volumes. This is indicated bywas the orange linedemand which totoensure demand could be served disruptions. While this going on (assuming that 70per cent of all inventories are arriving or going on demand softened causing a further tranche of shows pre-Covid trendline in inventories. Any far awayform, from will be containerised thethis average a laden goodsthe to pile up in warehouses. In Figure 2 this to can be deviation softened causing a the further tranche of goods pile upleaving in theintoo warehouses. In Figure 2trendline thisvalue caninbe seen 50,000 eur/TEU andthe thatinventories for each ladenwith container seen clearly the total inflation adjusted inventory levels corrected bywhen a move the opposite direction, roughly container equal inissize, balance the clearly when the totalin inflation adjusted inventory levels of NorthtoWest Europe (Germany, France, shipped, 0.3 empty containers will need to be handled of North West Europe (Germany, France, Netherlands, actual demand. When considering the deviation from being the trendline in 2022 the surge in volumes and Netherlands, andare Luxembourg) are plotted by inquarter. the ports). The estimated 2023 TEU figures will come in Belgium andBelgium Luxembourg) plotted by quarter. current inventories (and hence demand)over can5 be easily million TEU understood. lower, of which ~ 1.5 m TEU (handled twice Afterdrop the in initial shock following from in theport COVID-19 Afteroutbreak, the initial from the covid outbreak, was a strong rebound in Russian inventory levels as there transshipment moves) are sanctioned containers. thereshock was a following strong rebound in inventory levels in When takinghalf into account theQ2strong reductionwere in inventory levelsfull in warehouses the first two quarters of 2023When this This puts of 2022 inwhen perspective. thesecond second of of 2020. In Q1In and of 2021 in the half 2020. Q1 and Q2inventories of 2021 inventories werethethen partially emptied lockdowns represents a rebalancing of the excessive inventory build-up witnessed from late 2021. If the lower buildinventories are rebalanced in the second half of 2024, volume then partially emptied when lockdowns re-emerged. re-emerged. Uncertainty about themeasures new Covid measuresgrowth and supply chain problems saw 2022 inventory pick up isonce again tointo match consumer about experienced the new COVID-19 and 2023 supplyversus upUncertainty in inventories in Q1 and Q2 the will trendline extended theend future, the levels keep rising. demand. chain problems saw 2022 inventory levels keep rising. areasThe above and below the trendline will be in balance from Q3 2024 again. Ukraine-Russian conflict came as a surprise with this LESSONS FOR INVESTMENT leading to an increase in inventory levels in Q2 of 2022. With Thedemand total area in 2022 between the inventories and theThe trendline is estimated to represent roughly 1.5 analysis of the sectoral GDP developments and changes softening over the summer of 2022 inventory levels million TEU (assuming 70%tapering of is container inventories, 50,000 EUR/TEU 30% in additional in inventories indicate theand complexity the currentreturn market went up a bit further, before off when shippers effects of in play. Therefore, started to realise supply chains andcome end in and empties). The estimated 2023 were TEU stabilising figures will overthe5 combination million TEUoflower, which ~ 1.5 mcareful TEU consideration is needed when reading the headlines as what demand started to soften. (handled twice as transshipment moves) are sanctioned was Russian containers. This puts the full warehouses analysed pre-COVID-19 may not be sufficient for the next Inventories are typically growing in line with economic of activity. 2022 inMore perspective. When inventories are rebalanced in the second half of 2024, growth set of quarters. Or conversely when volume stock levels adjust will and activity means larger inventories to meet the spending spree is balanced, volumes will likely pick up demand and hence a stable increase in total volumes. This is pick up once again to match end consumer demand. again to the more usual longer-term relationship. When indicated by the grey line – Figure 2 – which shows the preconsidering port and terminal investment a very careful COVID-19 trendline in inventories. Any deviation too far away teasing-out of these factors is clearly necessary. Short term from this trendline will be corrected by a move in the opposite willBELOW have a far-reaching impact on longer-term direction, equal in size, balance2: theIN inventories CAPT CANroughly YOU PLEASE PUTtoFigure FRONT OF differences THE HEAD demand. And everyone developing and managing port with the actual demand. When considering the deviation assets knows it should be a business with a long-term focus. from the trendline in 2022 the surge in volumes and current n Figure 2: Changes in inventories – North West Europe Source: Eurostat, Oxford Economics, Rebel
Source: Oxford Economics, Rebel For theEurostat, latest news and analysis go to www.portstrategy.com
NOVEMBER/DECEMBER 2023 | 25
LINER INVESTMENT AND PORT COMPETITION
A GAME CHANGER? Shipping lines are stepping-up investment in key European ports. The regulators have focused on liner and stevedore market shares. Are they behind the game and what is in the true interests of a competitive port sector? Andrew Penfold looks at these emerging issues
n MSC has progressively established terminal assets along the north European coast but surprisingly this level of market control has not come in for detailed attention from the regulators
The recent move by MSC to take a substantial share – 49 per cent – in Hamburg’s major stevedore Hamburger Hafen und Logistik AG (HHLA) is highly controversial. It follows hot on the heels of Cosco’s approved move to buy a 24.9 per cent share in HHLA’s important container terminal Container Terminal Tollerort (CTT). The question must be: is this a specifically German (or Hamburg) situation or it is the harbinger of much more far-reaching change across the North Container port range as a whole? It should be noted that this acquisition will cover not just container handling in Hamburg but, also, HHLA’s other investments including those in Odesa and Trieste together with other supporting hinterland projects. There has been a long-term trend towards increased line investment in container handling terminals, with various lines stepping-up direct investment in facilities from Le Havre to Hamburg. The apparent volume security offered by lines anchoring their business in particular ports is highly attractive for port authorities and national governments and has been actively encouraged since (at least) the acquisition of a dedicated terminal by APM Terminals (Maersk) on the Maasvlakte in Rotterdam back in the 1990s. The pace of this trend was – until recently – constrained by the limited investment availability from the lines. Until the Covid crisis the general profitability or container lines (as a whole) was stretched, and they tended to look enviously at the stability and profitability of container terminals. Specifically in the case of Hamburg, the very idea that control of a large tranche of container handling capacity could rest outside German control was largely unthinkable. SO, WHAT HAS CHANGED? The answer is the sudden increase in container lines cash availability. Prior to Covid it was difficult for even the largest line to move ahead alone on terminal development, with the
26 | NOVEMBER/DECEMBER 2023
usual model consisting of complex Joint Ventures for new terminals – often with ‘common-user’ stevedoring companies as part of the package. This has been the pattern in Rotterdam and Antwerp. In these ports line interests have been accommodated by such strategies – Rotterdam World Gateway and MPET (Antwerp) were both invested on this basis, to name but two major projects. Covid financial windfalls have changed the position. Looking specifically at MSC, there has always been a distinct lack of transparency about the line’s profits while other publicly listed companies have seen limited only profitability over most of the past twenty years or so. Earlier this year the veil was lifted to some extent for MSC – probably unintentionally. The holding company of the world’s largest liner company reportedly made €36.2bn ($38.4bn) in profits last year. These staggering profits (for the entire group it must be stressed) were revealed in the Italian media when the company announced the purchase of around 50 per cent of high-speed Italian train operator Italo. The explosion in container freight rates during the pandemic saw massive windfall profits over 2021 and 2022. In 2020 – largely before the pandemic the group’s turnover was only $29bn and Ebitda was $6.8bn. These profits and similar windfalls for other lines have allowed a rapid increase in the availability of funding for terminal investments. IS THIS A GOOD THING? The regulatory authorities have looked long and hard at the anti-competitive pressures that can emerge from consolidation of terminal operating capacity, with these concerns stretching back to the acquisition of ECT by Hutchison in the 1990s, and issues of liner market share (of capacity and trade volumes) have long been the subject of
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LINER INVESTMENT AND PORT COMPETITION legislation. Indeed, the European Commission has recently announced that it will not renew the liner Consortia Block Exemption Regulation (CBER) when it expires next year. So how does unregulated line investment in terminals square with this broader thirst for regulation? Once again, the case of MSC is highly relevant. A quick rundown of the line’s investments in major North Continent ports is relevant. MSC is heavily invested – by means of its terminal company TiL – at Le Havre (TPO/TNMSC), Antwerp (MPET with PSA), Rotterdam (Delta terminal with ECT), Bremerhaven (with Eurogate) and potentially now Hamburg. This will effectively represent a ‘full house’ of terminal investments in the range. Collectively, these investments will not set alarm bells ringing in terms of conventional market share considerations but overall, it offers a very strong and flexible (potentially controlling?) position for MSC in the regional business. The ability to switch volumes between terminals – especially for ‘footloose’ transshipment business – can only be of concern. A lack of separation between actual freight rates and the revenues generated by stevedoring (which is not the same as quoted THCs) can only obscure the level of competition between ports for container handling. This will be worsened with the declining availability of common-user (i.e., independent) container terminals and the JV merging of such stevedoring companies with liner interests. GOOD FOR WHOM? A closer look at the Hamburg position provides further insight into the changing structure of the stevedoring sector. Volumes at German ports have contracted sharply since 2021, with this reflecting the changing structure of the German economy as exports to China begin to slow and domestic demand is weakened by recession and slower growth. This has been exacerbated by the collapse of Baltic transshipment volumes as a result of the Ukraine war’s sanctions on Russia. At the same time, Hamburg has been squeezed by the increasing role of Polish ports serving a large part of the former Hamburg hinterland. The increased role of the deepwater facilities at the Baltic Hub terminal (formerly DCT Gdansk) has been a major driving force here. Against this background, an increased role for MSC (and Cosco) at Hamburg – with the promise of an additional 1m TEU of business – appears highly attractive. While, however, these deals may well be effective as defensive moves for Hamburg as its market position is squeezed, they will certainly limit the role of competition in container handling and pass the resulting costs on to the shipper and (ultimately) the consumer. Very careful analysis of the pros and cons of such moves is clearly necessary here and it is not apparent that this has been undertaken. It is the view of some interested parties – not simply narrow union-based opinion – that the port has effectively ‘sold the pass’ to the lines in the hope of managing or reversing the declining role of the port. Moves by Hamburg interests to derail MSC’s strategy have accelerated, but at the time of writing the outcome remains unclear. ETS AND ALL THAT European Seaport Policy (for what it is worth) has spent many years trying to ensure a level playing field between competing ports. Given the role of large ports in generating economic benefits for a locality, ports have long sought national and local subsidies to enhance economic position – subsidies which have often been obscured. But the market is changing. Although much has been done to eliminate hidden development subsidies there are no such concerns for other broader issues. Ports are now
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expected to add considerable extraneous activities to their portfolios. Concerns over the move to ’net zero’, the provision of low carbon bunkering, the move towards low emission handling equipment and insistence on investment in ‘green’ supporting infrastructure have all complicated the competitive position. There is currently no corresponding regulatory framework to police these issues at the European level and this has seen subsidies in these areas increase. This is now influencing market share considerations. The case of carbon taxation (ETS) is a good example. The European Commission has moved forward with this policy (due to be implemented from early 2024) without a full consideration of the way this will be deployed or the implications for port volumes. The lines have, predictably, begun to list ETS surcharges that will be applied as a result of this programme. For example, Maersk plans to add a surcharge of US$70 per container on the Asia to North Europe trade. All this at a time when the European economy is in recession, there are major uncertainties about the structure of world trade as major shippers seek to diversify from China and a flood of Megamax container vessels – that can only be effectively deployed on these trades – is set to hit the market.
n HHLA: A controversial sale of a major slice of equity is in prospect but are the regulators generally missing out on the impact of increasing liner control over terminal facilities in northern Europe?
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Ports: the competitive picture. It might well be said that European policy is ‘fiddling while Rome burns’ with these peripheral issues It might well be said that European policy is ‘fiddling while Rome burns’ with these peripheral issues. WHERE DO WE GO FROM HERE? Lines are under increasing pressure and their investment in terminals will offer a way to maintain or increase revenues from the stevedore sector by bringing the business in house. Competition in the sector will be weakened. This should be considered in some detail by the regulators who have been only too keen to flex their muscles in secondary areas of concern. A framework is required that will acknowledge changing market conditions and seek to protect competition in the highly regarded North Continent port markets. Simply allowing shipping lines to capitalise on their current robust financial situation to step up control of the market seems a highly inefficient means of delivering these goals.
NOVEMBER/DECEMBER 2023 | 27
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POSITIVE VIEW OF DURBAN PIER 2 ICTSI sees major potential in DCT Pier 2 and has a clear view of how to unlock this
n ICTSI is confident that its Public Private Partnership with Transnet in Durban will unlock the clear potential of Durban Container Terminal Pier 2
Reports carried recently by newspapers in South Africa confirm International Container Terminal Service Inc’s (ICTSI) positive view of the future for Durban Pier 2, the facility where it was selected by Transnet to partner with it to optimise the container terminal’s operations and business potential. Hans-Ole Madsen, Senior Vice-President, Europe, Middle East and Africa is reported as saying, the port has a strong foundation and good infrastructure despite challenges in energy, crime and logistics. “People, rightfully so, are disappointed at some of the things that have happened to South African infrastructure, but the reality is….it is a good port, it is a good terminal,” Madsen is reported as saying in South Africa’s Business Times. Further, that: “The roads and connections need to be maintained and they need to be managed, the locomotives need to be moving, but the core infrastructure is there. You cannot let yourself be clouded by the power crisis and by the security crisis,” he said. “If those are resolved the potential that it can unlock is tremendous. That is why we would like to be here.” Madsen further confirmed that in-depth soundings have been taken with “all the big banks” in South Africa and there is a strong appetite to support the venture. He also acknowledged the negative reaction of unions when ICTSI was announced as the strategic partner, with the unions citing particularly lack of consultation by Transnet. It is natural, he said for people to be concerned about change. “It is our job,” he stressed, “to very quickly develop a level of trust.” He emphasised a primary goal will be to improve the port’s reputation which has suffered at the hands of ongoing inefficiencies and, step-by-step, rectify the problems and in the process make the workforce proud of being part of a revitalised and positive organisation…”so everyone who works there can feel they are on the right track.” The Business Times coverage also provided insight into what ICTSI’s first actions would be after financial closure of its contract – set to be achieved by the close of this financial year. Initial steps will focus on achieving quick wins and notably the repair and refurbishment of equipment underpinned by an improved spare parts acquisition process.
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“This, said Madsen, “will be done to make sure the handling capacity increases, which is required for improved service delivery.” A review process would follow with the objective of simplifying how things are done. “This is a process that is very much focused first on the clients, then you get to the internal processes later on. For us this is what we do, we have a lot of experience. …we want to make sure everyone who works at Durban Container Terminal will be proud of working there. We want to change the perception, by doing that people will be happier, and more committed,” he explained. In terms of larger capital works, the 25-year deal struck with Transnet will see the deepening of the North Quay berth with the objective of providing for the higher capacity vessels being introduced into African trade.
‘‘
A primary goal Is to improve the port’s Reputation, which has suffered at the hands of ongoing inefficiencies and step-by-step, rectify the problems plus in the process make the workforce proud of being part of a revitalised organisation Hans-Ole Madsen, Senior Vice-President, Europe, Middle East and Africa, ICTSI A new legal entity will be established to manage DCT’s Pier 2. Transnet Port Terminals will have 51 per cent and ICTSI 49 per cent. ICTSI’s involvement in the key DCT Pier 2 operation represents an important first step in the wider involvement of the private sector in South Africa’s logistics sector with rail freight also on the agenda in this respect and the possible concessioning of rail operations in conjunction with coal and iron ore export operations.
NOVEMBER/DECEMBER 2023 | 29
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SESSION 3: PORTS AS ENABLERS – FACILITATING THE ENERGY TRANSITION FOR SHIPPING & THE SUPPLY CHAIN 09:15
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MULTIMODAL TRANSPORT CORRIDORS: UZBEKISTAN
CORRIDOR OPTIONS EXPLORED Land-locked Uzbekistan is pushing on a number of fronts to establish new routes -multi modal corridors - to global markets. Oleksandr Gavrylyuk tracks the key initiatives underway In early October this year, when addressing the Fourth International Transport and Logistics Business Forum, New Silk Way in Kazakhstan’s capital of Astana, Ilhom Mahkamov, Uzbekistan’s Transport Minister, emphasised “the growing importance of multimodal transport corridors in facilitating international trade, fostering regional connectivity and addressing the evolving needs of the global logistics landscape”. According to him, his country has been taking practical steps in both developing existing and forming new transport schemes. In particular, Tashkent has been promoting creation of a new route that would connect landlocked Central Asian nations, including Uzbekistan, with the Indian Ocean. Building a 570-km-long railway from the city of Mazar-iSharif in northern Afghanistan (close to the Uzbek border) to its capital of Kabul and then to Peshawar in north-western Pakistan would be the project’s main part (the so-called Kabul Corridor). Once linked with Pakistan’s internal rail network in 2027, it would provide the Central Asian countries with access to the ports of Karachi and Gwadar. By as soon as 2030, the Kabul Corridor would be able to reach an annual carrying capacity of up to 15 million tonnes of various cargoes, according to Mahkamov. Being the shortest and cheapest possible way from Central Asia to the Arabian Sea and thus the Indian Ocean, the new route would reduce the cargo delivery time between Uzbekistan and the Pakistani harbours from over a month to just five days, while halving the relevant transportation costs. In 2021, the Trans-Afghan route saw the launch of freight haulage, which more than doubled last year, reaching 670,000 tonnes. By the end of 2023, transit motor traffic is expected to exceed one million tonnes. Alongside its undoubted advantages, however, the Kabul Corridor does have its weak points. Realising a rail passage through the Afghan mountainous terrain requires immense investments (up to US$8.2 billion). There is also the troubling political and economic situation in Afghanistan which leaves a lot to be desired. UNIQUE POSITION Situated in the very heart of Central Asia, Uzbekistan is one of just two double landlocked (surrounded by other landlocked states) countries in the world. Such a unique geographical location, coupled with the nation’s rapidly growing population (around 35 million or nearly half the region’s total), has stimulated Tashkent to find ways to secure its access to global markets since obtaining independence (after the break-up of the USSR) in 1991. Traditionally, Uzbekistan had used the north-western transport routes (via Kazakhstan, Russia and Belarus or Ukraine) to deliver its exports to western markets. However, Moscow’s invasion of Ukraine last year and the resulting sanctions against the Kremlin have made the usage of them extremely complicated or even impossible. Under the circumstances, Tashkent has been compelled to establish new trade ties and diversify its export and import channels. Specifically, Uzbekistan’s official Strategy for the
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development of its transport sector by 2035 has designated the Trans-Caspian International Transport Route (TITR or the Middle Corridor), which is intended to connect the Central Asian states with those of the South Caucasus and then (through the Black Sea) Europe, as one of its top priorities. Last year, Uzbekistan exploited the 4000km-long Middle Corridor for multimodal deliveries of its containerised copper concentrate to Bulgaria and containerised fertilisers to Romania. The same year, Tashkent’s overall export and import traffic through Azerbaijan’s Caspian port of Baku and those of Poti and Batumi on Georgia’s Black Sea shore expanded to 904,000 tonnes (up 65 per cent on 2021) and 864,000 tonnes (up 72 per cent on 2021) respectively. In 2023, each of the figures is expected to grow to at least 1.5 million tonnes, according to Abdulla Oripov, Uzbekistan’s Prime Minister.
n Pakistan, Afghanistan and Uzbekistan have signed a plan for a mega railway project that will give Uzbekistan access to the ports of Karachi and Gwadar
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Tashkent has agreed with the Azerbaijani and Georgian authorities to develop its own handling and storage facilities at the two countries’ harbours To further capitalise on the TITR, Tashkent has agreed with the Azerbaijani and Georgian authorities to develop its own handling and storage facilities at the two countries’ harbours. Further, the landlocked Central Asian nation’s ambitions also extend to building and operating (together with Azerbaijan) a dedicated merchant fleet for deployment on the Caspian Sea. In June this year, Shavkat Mirziyoyev, President, Uzbekistan, paid his state’s first official visit to Iran for 20 years. As a result, Tashkent has now been in talks with Tehran over a new transport route, which would run from Uzbekistan (via Turkmenistan) to Iran’s southern coast and then further to either Oman or India. This project’s soft spots are the Iranian ports of BandarAbbas and Chabahar. While the former remains under western economic sanctions, the latter is a relatively new harbour, which is yet to see fully-fledged development. For example, Tehran will have to complete the construction (about half the total length) of a 630 km-long rail line to connect Chabahar with the international railway network at the city of Zahedan.
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INSURANCE
TRUST THE DATA After making its mark in marine insurance, Concirrus is looking at the port and terminal sector where it is confident it can also help insurers improve their loss ratios. Felicity Landon reports
n Beirut Port: the 2020 explosion there killed 220 people. Concirrus suggests its big data and machine learning platform, Quest, can help identify risks that may lead to such a tragic event
Concirrus says its big data and machine learning platform, Quest, has helped marine insurers improve their loss ratios by seven per cent. Now it is turning its attention to the ports and terminals sector, where it says insurers could also enhance their profitability. Andrew Yeoman, Concirrus Founder and CEO, says he knew almost nothing about shipping when he decided to target the marine insurance sector in 2017; but he and his team did know a lot about data and technology. Within two years, he was voted the second most influential person worldwide in marine insurance. To date, Concirrus has sold its Quest Marine service to about 30 underwriters, brokers and P&I Clubs. “Concirrus has been in business since 2012 but before 2017 we were a completely different company,” says Yeoman. “Late 2016 we were doing things like monitoring airports, and monitoring coffee machines to keep them working. A customer asked – had we ever considered doing what we did but in insurance, and specifically in shipping. I spoke to the market and developed Quest.” He says Quest is similar in principle to black box, or telematics, insurance for cars: “We monitor how, where and when a vessel is used and combine this with who owns it, information about which ports it visits, whether there have been port inspections, what cargo it carries, etc. Then we make judgments on those movements, the utilisation of the vessel, etc., for the insurers to decide if they are going to insure it and, if they are, what price should be paid. UNDERSTANDING DATA KEY There is, of course, no black box installation, but Concirrus takes in 170GB of wide-ranging data a day “millions and millions of records of data”, says Yeoman. “The secret is not having access to data but being able to understand it and break it down. For example, when a broker sends an email with a bunch of attachments – schedule of risk, historical claims, etc., our system will read and rate everything automatically. It takes 15 seconds to assess it all.” Quest accesses and interprets the data, combining this with historical claims information to reveal behaviours and patterns that correlate to claims. Concirrus targeted marine insurance because “it seemed obvious that the market had operated the same way for 300
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years and wasn’t taking advantage of this wealth of data available”, says Yeoman. “We challenge the traditional method of insurance, which rates vessels on age, type, class, tonnage, where built, flag, etc. We look at factors around the ship’s behaviour. We are helping insurers make money out of marine insurance – not just by raising prices, but by selecting risks wisely.” At a recent IUMI conference, Yeoman asked attendees what were their biggest challenges. The answer was the amount of procedural complexity that now exists and the time it takes up. “An underwriter’s job is to make good decisions but often that’s only 10 per cent of their time. I think that the advances in technology and data give a lot of people their time back. The system can read all the data and say – based on your appetite, these are the ones that will make money for you. It is that aspect of data analytics that is paying great dividends. You need to put your trust in data and analytics – it is going to make your lives easier.”
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…we think we can add a ton of value to port and terminal operators Andrew Yeoman, Concirrus Founder and CEO Companies adopting the tech have on average improved their loss ratios by 7 per cent, says Yeoman. Inevitably, a large amount of the data involved relates to ports and terminals, details of loading, offloading, cargoes, wait times, and so on. Concirrus is moving into ports and terminals in their own right, “because insurers are getting more interested in that aggregation of risk”, says Yeoman. “We have ventured into property. The assessment of [port] buildings by insurers is often done on a clumsy manual basis and we are absolutely looking at how we can improve that. There are other aspects – what sorts of goods are coming through the terminal? What’s transiting, which vessels, how often? What about port accumulations – think of Tianjin or Beirut. Insurers often have no idea what they might be insuring that may be in the port, whereas we do know. It may be trickier for ports to answer those questions, but we have access to all the data. It’s an absolute need and we are looking at this – we think we can add a ton of value to port and terminal operators.”
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RISK MANAGEMENT: LITHIUM-ION FIRES
LITHIUM-ION FIRES: THE RISKS A recent TT Club Webinar put the risks associated with Lithium-ion batteries under the microscope. Felicity Landon reviews the key points discussed Surely the biggest takeaway from the TT Club’s webinar on the risks of lithium-ion batteries in the logistics supply chain was the disturbing range of video clips and images. An e-scooter being charged up in the hallway of a house, giving off toxic gases before bursting into flames; an electric bus fiercely burning, molten aluminium raining down; a battery device left in clothes in a tumble dryer, causing an explosion that blows out the front of a laundrette; and a series of pictures of onboard catastrophes, showing decks distorted by the intensity of the fire, and scenarios where emergency escape routes and lifeboats above car decks would likely force people to breathe in toxic gases. Some car manufacturers have stated their intention to phase out ICE (internal combustion engine) vehicles by 2030. However, when it comes to shipping, transport and logistics, this isn’t just about electric vehicle (EV) transport and storage, as Mike Yarwood, the TT Club’s Managing Director, Loss Prevention pointed out. “We are considering phones, computers, batteries, packaged goods, all the way to vehicles and handling equipment.” THE RISK PICTURE The risks encompass electrification of port equipment as well as cargo transiting port facilities, and other less obvious items, he said. Lithium batteries storing the energy harvested from rooftop solar panels and other renewable power sources are among the risks that need to be considered. Smart containers are powered by lithium-ion batteries. “A reefer trailer was being designed that incorporated solar panels on the roof; the idea was it would protect against a break in a cool chain when not plugged in – but this is again demonstrating that innovators are looking for ways to incorporate this technology into the supply chain.”
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The technology is advancing all the time – our regulatory standards are not advancing Dr Karwei So, Managing Scientist, Brookes Bell Lithium-ion battery fires continue to make the headlines – the batteries can result in very large fires with very high temperatures, said Dr Karwei So, Managing Scientist at Brookes Bell. Thermal runaway is a self-sustaining reaction that is very difficult to stop once it has started, she said, and a key message was: “Thermal runaway – be warned – this is not smoke!” Prior to ignition, the batteries vent a white vapour which is highly toxic; a 100KW battery could produce up to 20kg of hydrogen fluoride, and inhalation can result in death, she warned. The standards and requirements for firefighting and lifesaving appliances onboard ships are governed by SOLAS and STCW regulations – and these have not been changed or updated to take account of the rapid spread of an EV fire, said Dr So. “The technology is advancing all the time – our regulatory standards are not advancing.” Karley Smith, master mariner and marine consultant at Brookes Bell, outlined the specific challenges when a fire occurs onboard a vessel – for example, ro-ro ferries and car
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carriers. “Enclosed spaces can contain a fire, but they also act like an oven,” she said. “Normal breathing apparatus will have 20 minutes of air – but when a car deck is full, it will take five to 10 minutes to reach a specific car and the crew need to make sure they leave enough time to evacuate. Toxic vapour from thermal runaway will potentially be in the area of the lifeboats above the car decks. Using a drencher could lead to stability issues if the water builds up because areas are blocked by debris [from fire/explosion]. You need to consider the spread of the vehicle fire when they are stowed so closely together.” Temperatures of 2700 degrees have been reported in EV fires; the melting point of aluminium is 660 degrees, and many decks or even entire high-speed vessels are made of aluminium. Some emergency access points can only be reached by going through the car decks. While onshore firefighters have access to additional resources and specialist firefighting expertise, any firefighting at sea is entirely down to the crew and their limited resources. They stand alone, said Dennis Kusters, CEO of React Emergency Response. He called for a review of procedures, more professional/remote assistance, additional training and professional support.
n Temperatures of 2700 degrees have been reported in EV fires; the melting point of aluminium, which can be used in the construction of ships’ decks, is 660 degrees
PORT PERSPECTIVE The speakers were asked – if a port was running a training exercise to simulate fighting a fire with EV/lithium-ion batteries involved on a car carrier that was alongside, what would they recommend? “Evacuation can be a problem,” said Kusters. “The firefighters want to get onboard – the crew or passengers want to get off. Maybe identify separate areas to contain unaffected vehicles. Think about spillage, pollution from the vehicles on the quayside, toxic substances dripping out. All the assistance you can get from shore would be helpful, so training would be very useful.”
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DECARBONISATION: THE UNCTAD REVIEW
“A FAIR AND JUST TRANSITION” UNCTAD’s Review of Maritime Transport 2023 focuses on the costs, challenges and uncertainties around decarbonisation – and emphasises the need for a fair and just transition for all. Felicity Landon attended the launch of the report at the IMO in London An additional US$8bn to $28bn will be required annually to decarbonise ships by 2050 – and even more substantial investments, ranging from $28 billion to $90 billion a year, will be needed to develop infrastructure for 100 per cent carbon-neutral fuels by 2050, according to the United Nations Conference on Trade and Development’s (UNCTAD) Review of Maritime Transport 2023. UNCTAD says that full decarbonisation could increase fuel expenses by 70-100 per cent – with a disproportionate impact on small island developing states (SIDS) and least developed countries (LDCs) that rely heavily on maritime transport. “Maritime transport needs to decarbonise as soon as possible, while ensuring economic growth,” said UNCTAD Secretary-General Rebeca Grynspan. “Balancing environmental sustainability, regulatory compliance and economic demands is vital for a prosperous, equitable and resilient future for maritime transport.” To ensure an equitable transition, UNCTAD has called for a universal regulatory framework applicable to all ships, irrespective of their registration flags, ownership or operational areas, to avoid a “two-speed decarbonisation process” and maintain a level playing field.
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UNCTAD says that full decarbonisation could increase fuel expenses by 70-100 per cent – with a disproportionate impact on small island developing states Economic incentives such as levies or contributions paid according to shipping emissions may incentivise action, promote the competitiveness of alternative fuels and narrow the cost gap with conventional heavy fuels, said Shamika Sirimanne, UNCTAD’s director of technology and logistics. “These funds could also facilitate investments in ports in SIDS and LDCs, focusing on climate change adaptation, trade and transport reforms, as well as digital connectivity.” The Review of Maritime Transport analyses shifting global trade patterns – for example, the nearshoring trend and an increase in intra-Asian container volumes – and also considers the impact of geopolitical developments. The disruption caused by the war in Ukraine led to oil cargo distances reaching an all-time high in 2022, says the review, and shipments of grain in 2023 have travelled further than in any year on record, due to grain importing countries being forced to seek alternative exporters to Russia or Ukraine, such as the US and Brazil, which require long-haul shipping. PORT QUESTIONS At the launch event, hosted by the IMO, questions were asked about the importance of ports in decarbonisation. A worrying potential scenario is that large and more important ports will take on this role because they are strong, have the money and are in the right place to make the transformation and adaption
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essential to achieve decarbonisation while developing country ports could be marginalised, said Grynspan. “It will be more and more difficult for these countries to get into the mainstream of trade – so we are worried about that,” she said. “If you want major impact in terms of decarbonisation, you have to put more attention on the ports that have the most affinity. The problem I want to flag is that the distributional effect will be very important for the world, because trade is the lifeblood of many of these developing countries, especially those that have no alternative but to trade.” Ports are keen to make the adjustments for decarbonisation “because the fear is that if they don’t, the ports will be bypassed and the ships will not go there”, said Sirimanne. “There is a fear that if the ports are not ready to adapt to the changes coming their way, for climate change – decarbonisation, bunkering, etc. – big ships won’t come their way.” Providing bunkering is already a challenge for ports that are geographically at the very end of long distances and there will be an added challenge when they have to provide more than one fuel – perhaps ammonia, methanol and hydrogen – said Jan Hoffmann, Chief of the Trade Logistics Branch in UNCTAD’s Division on Technology and Logistics. Looking at the impact of ongoing uncertainty, UNCTAD notes that shipowners must decide whether to renew the fleet now while still lacking clarity about alternative fuel, green technology options and the regulatory regime. “Uncertainty about the fleet renewal timelines and constraints caused by shipbuilding yard capacity and higher building prices are also complicating investment decisions. Ports and terminals face similar challenges when considering investing in equipment or terminals.” Shipping cannot decarbonise on its own, says the review. “Decarbonisation efforts should bring together the broader industry, including carriers, ports, manufacturers, shippers, investors, energy producers and distributors.” The commitment to establish green shipping corridors is an example of leveraging collaboration, it says. “The objective is threefold: to provide bunkering options for vessels using low or zero-carbon fuels, facilitate testing of various solutions and support pioneering green initiatives. Experiences with green shipping corridors will vary by region and will entail both challenges and opportunities.”
n Economic incentives such as levies or contributions paid according to shipping emissions may incentivise action
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LONDON INTERNATIONAL SHIPPING WEEK: DECARBONISATION
THE ELECTRIC DEFICIT Assume weak UK Government support and direction’, delegates were told at Arup’s LISW event focusing on the role of ports in shipping decarbonisation. Felicity Landon explains
n Dover: electric ferries are possible but not without more power
The lack of UK Government funding for decarbonisation in ports – and particular concern about the need to prioritise grid connections for electrification – were key themes at Arup’s special event organised during London International Shipping Week. Dr Tristan Smith, co-founder of UMAS, was blunt – investment in electrification is a ‘no brainer’ but the UK Government is not investing enough. Outlining the opportunities and risks around decarbonisation, he said: “Expectation of support paralyses action. Assume weak UK Government support and direction pre-2025 – don’t be paralysed.” Ports should not bank on UK production or a UK supply chain of hydrogen-derived fuel, he added: “It only happens if there is much greater intervention by Government.” The International Maritime Organization (IMO) is the much greater driver when it comes to decarbonisation, said Smith, advising ports to factor in the impacts of IMO regulations now: “Please don’t ignore the IMO.” Doug Bannister, Chief Executive of the Port of Dover, described how Dover, Calais, Dunkirk and DFDS are seeking to create a high-volume green corridor, having signed an MoU in March 2023 – and the obstacles faced by the Port of Dover. “There is an option here that all the ferries are electric. The problem is, we don’t have much power,” he said. “Predicted demand would be 160MW. Right now, we have access to 8MW. They are not going to invest in electric ferries unless there is power in the port, and we are not going to invest in electricity in the port unless there are electric ferries.” While Calais has a ‘massive electricity infrastructure behind the port’, and Dunkirk has a nuclear power station, the UK’s National Grid infrastructure requires a tremendous amount of investment, he said. “But from the port perspective, we go on the list behind the garage, the supermarket, the shopping mall and the hotel operator.” To help Dover take a leading role in decarbonisation of the supply chain, he urged the UK Government to take three key actions: “First, prioritise grid connections into the ports. We don’t need to be more important than hospitals, but you have to see us a bit higher up the list.” Second, he said: “Make it easier for us to invest. Planning regimes are quite cumbersome and clunky. Open the doors, guys, is the message. Help us, because we are ready to go with this stuff.” Third: “We might need a bit of funding or
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guarantees. There is insufficient capital being deployed by the UK Government in these things.” NET ZERO: NOT FREE David Browne, Director Corporate and Social Affairs at Maersk, described the entry into service of the shipping line’s first green methanol vessel, and its arrival in the UK to discharge containers at DP World London Gateway. “The containers will go through DP World’s green terminal, to get on a train to the Freeport in the East Midlands, where they will be moved by electric truck and into our warehouse.” This was a great example of what could be done, he said, but more was required. “This state-of-the-art ship cannot plug into shore power at London Gateway because they don’t have the infrastructure or the electricity. So, it is a sunk cost.” Maersk has set a target to decarbonise its business completely by 2040, including ships, terminals, air, land and warehousing. “As a business with a very large GHG emissions footprint, we see it as absolutely an obligation to make these changes and make them as soon as possible,” said Browne.
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…investment in electrification is a ‘no brainer’ but the UK Government is not investing enough Dr Tristan Smith, co-founder of UMAS “We want to do the right thing, but we need the industry to step up and join us. If not, we risk making the country uncompetitive and our customers uncompetitive and ultimately asking the question, why are we making this investment, from a commercial perspective?” The route to Net Zero is not free, he said. “Investment in infrastructure, fuels, technology and vessels all add costs to the bottom line and that could make us less competitive in the marketplace. Unless others step up or are forced to step up, we could become less competitive. The UK is not a good place unless we are all on a level playing field.” The presentations were followed by a ‘café style’ discussion bringing in all delegates to consider three questions based on ‘What is the art of the possible?’
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LISW: ENERGY TRANSITION & SAFETY FOCUS
CUTTING EDGE THINKING Felicity Landon highlights news and experience of interest to the ports sector at London International Shipping Week – energy transition and safety are to the fore Port authorities, companies and individuals all have a role to play in the energy transition and all must take responsibility, Luc Arnouts told guests at the Port of Antwerp-Bruges networking reception during London International Shipping Week. One of the key reasons for the merger of the ports of Antwerp and Zeebrugge in April 2022 was the need to focus on energy transition, said Arnouts, who is Vice President International Relations and Networks at the Port of AntwerpBruges. While emphasising the port authority’s determination to take responsibility for decarbonisation, he also acknowledged the challenges. “We are starting to operate the first tugs in the world on methanol and hydrogen. But we need to decarbonise industry and replace it with green solutions. It is a huge challenge, to decarbonise the steel and the cement industry.” He described Antwerp-Bruges as a port that is ‘complementary to the region’ and has three pillars. “We are much more than a port. We are a combination of port handling platform, big industrial complex and huge logistics complex. It is all intertwined,” he said. “Our role as a port authority is to try to be involved in the global production of green electrons and molecules and as an important base for green electrons and green molecules – we see a very strong role for our port to be a main importer and we have the space for expansion. We have dedicated a particular part of the port for customers that want to invest in the circular economy – for example, recycling plastic waste and chemical recycling. Finally, carbon capture and storage. If we want to reduce CO2 emissions, we have to capture, liquefy and bring this to safe storage. A project we are pushing very hard is to build a liquefaction plant.” INNOVATION CRITICAL Ports represent a ‘very traditional’ sector, transporting goods from A to B, said Arnouts, but innovation is of crucial importance. “Over the last ten to 15 years, this industry is really moving forward in an innovative way and putting a lot of money and energy into innovation – for example, the Seafar remote control barges.”
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One of the key reasons for the merger of the ports of Antwerp and Zeebrugge in April 2022 was the need to focus on energy transition Luc Arnouts, Vice President International Relations and Networks at the Port of Antwerp-Bruges Reflecting on the merger of Antwerp and Zeebrugge, Arnouts noted that this took place after three years of discussions. “Why did it take so long? Because we wanted to go for full integration, and that means you need to integrate everything – ownership, one CEO, one executive committee, a fully integrated structure. I can assure you, it takes time.”
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VR & 3D TO ENHANCE SAFETY A VR (virtual reality) port developed for ABP prompted positive feedback when tested by staff and apprentices – with some commenting that ‘health & safety has become cool’. The VR port, designed to look like various of ABP’s 21 ports, but not exactly any of them, is currently being used in ABP’s internal health & safety courses. It is being scaled up for use in other training areas, including leadership, plant and equipment, and refresher training. Saheed Onisemo, ABP’s Health, Safety and Environment Trainer, described the VR project during an ‘Innovation in Port Skills’ event organised by Port Skills & Safety (PSS) during London International Shipping Week. “Through this VR, I want people to understand where they can and can’t go for health & safety reasons,” he said. “We want to truly understand what people are doing and why they are doing it. When we understand that, we can start to establish and tailor what we are saying in our training courses.” There were technical challenges when designing the VR port, he said. For example, port users could walk through walls, lampposts ‘floated’ and the early versions were ‘too perfect’, with no cracks in the pavements. The model was upgraded several times before testing. The creation of a 3D map of Portsmouth International Port was described by Chris Hatter, Head of Compliance at Portsmouth. The main aim is to use the technology to avoid accidents and risks – but while it was initially set up for safety, the 3D map is being used for other applications such as interactive and self-learning opportunities for children, practical help for staff, and route directions for drivers who are unfamiliar with the port. “Using the 3D model and making it interactive is adding a layer of connection to people,” said Hatter. “We can also use the model for training – it takes you around the port and gets people interested.”
n The UK port of Portsmouth has developed a 3D map of the port to help avoid accidents and manage risks
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US SOUTH ATLANTIC: CONTAINERPORT DEVELOPMENT
NO STANDING STILL It has been a challenging year for US South Atlantic ports. AJ Keyes looks at what has been going on and what ports in the region are doing moving into 2024
n Despite a challenging 2023 through August, US South Atlantic ports are benefitting from longer-term growth fundamentals, but there is a need to ensure issues with unionised workforces, such as at the Hugh Leatherman Terminal, do not derail the potential
There is no doubt that 2023 has been a challenging year throughout the North American container port industry. The two major ports in the US South Atlantic region, Savannah, and Charleston, have experienced similar trends as other major ports in North America with 2023 volumes down on the comparable period of 2022. Despite these challenges, both ports have a clear strategy moving into 2024, as does near-neighbour Jacksonville in northern Florida. The combination of increasing consumer demand and growing economic activity in the southern states has underpinned recent port demand. The US Bureau of Economic Analysis (BEA) confirms that in 2010 the northern states generated almost 24 per cent of total US economic GDP, while the southern region provided 21 per cent. By 2022, these figures had shifted to 22.5 per cent and almost 24 per cent, respectively. This latter shift is shaping the future of South Atlantic ports and their strategic market position. The population of the US Southeast has grown by nine percent since 2012, adding 6.5 million people and increasing consumer demand commensurately. States such as Georgia, South Carolina and Florida are all key markets for both truck and intermodal rail as manufacturing shifts to the Southeast. Georgia Ports Authority (GPA) cites the shifting of production sources in Southeast Asia – as customers and ocean carriers respond to a “China plus one” sourcing trend – with India particularly emerging as a strong option. Effectively, this means new business opportunities for US South Atlantic ports because Southeast Asia shipping routes to the US East Coast, via the Suez Canal, are five days faster than US West Coast routings. This option also overcomes existing Panama Canal water drought challenges which are seeing delays and reduction in the sizes of vessel consignments able to use this All-Water routing – a problem expected to continue in 2024. Admittedly, however, it could also see US South Atlantic ports lose some cargo back to direct transpacific routes to West Coast ports.
42 | NOVEMBER/DECEMBER 2023
So, while 2023 is proving a tough year for the two major ports in the US South Atlantic region compared to the first eight months of 2022 (Savannah -19 per cent and Charleston -13 per cent) there is also cause for optimism for 2024. Longer-term trends are more positive. As Figure 1 identifies, for the periods of January through to the end of August for 2019 to 2022, there has been consistent growth for both ports. These periods cover the critical timeframe of the pre-COVID-19 year of 2019, the impact of the pandemic in 2020 and subsequent rebound in 2021 and into 2022. Consequently, an interesting parallel needs to be drawn with the position before the global pandemic. For example, Savannah’s eight-month 2023 volumes confirm an increase of 4.9 per cent over 2019, while Charleston maintained cargo stability. BEYOND JUST PORT INFRASTRUCTURE In October 2023, GPA announced a desire to deepen its access channels from the current 47ft to between 50-52ft and therefore receive ships up to 22,000TEU (from the current largest of 16,000 TEU). A request has been filed with the US Army Corps of Engineers to study the project. Interestingly, these larger ships are carrying volumes of cargo from India that was formerly sourced from China, according to GPA. The project would likely take about 10 years to complete and comes just 18 months after Savannah completed a US$973 million project to deepen the harbour by five feet to 47ft at low tide. The other critical infrastructure requirement for Savannah is the need to raise the Talmadge Bridge, which limits the size of ships able to pass under it, by 20ft from the current 185ft. The Georgia Department of Transportation (GDOT) has developed plans to raise the structure, with completion expected in early 2027, at a cost of up to US$175 million. It is clear that the ability of ports to handle more cargo and bigger ships involves going beyond the terminal gates, so it is
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US SOUTH ATLANTIC: CONTAINERPORT DEVELOPMENT
BRIDGE ISSUES ALSO IN CHARLESTON The state of South Carolina has also launched a project to raise the Charleston area’s major bridge as part of a 10-year project aimed at allowing the North Charleston Terminal to receive container ships of up to 20,000TEU in size on Suez Canal routings. The North Charleston Terminal is the smallest of the Port of Charleston’s three marine terminals and is currently limited to serving ships of up to 8000TEU in size and offers a capacity of just 500,000TEU per annum. However, raising the Don Holt Bridge from its current 160ft is expected to alleviate these issues, assuming it adds around 25ft in total to air draught. As a result of this project, the South Carolina Ports Authority has confirmed it will increase capacity at the North Charleston Terminal to 2.4 million TEU per annum by re-working the layout and updating equipment. Upon completion of this terminal investment and the bridge being raised, North Charleston will match capacity at the Wando Welch Terminal. In due course, the Hugh Leatherman Terminal (HLT), currently in its second phase of construction, offers capacity of 700,000TEU per annum, but completion of the phase scheduled for 2032 will also see annual capacity of 2.4 million TEU. NOT ALL PLAIN SAILING However, it is not all plain sailing in the US South Atlantic region for Savannah and Charleston. GPA has raised concerns
4,500,000 4,000,000 3,500,000 3,000,000 2,500,000
Savannah
2,000,000
Charleston
1,500,000 1,000,000 500,000 -
2019
2020
2021
2022
2023
n Figure 1: relating to its business model and plans to add a new Source: Ports, www.dataand.com Container largescale terminal in the future. In a brief filed with the US at Ports handled To put theCourt, posi+on perspec+ve, in the eight-month periodThroughput of 2019, Savannah Supreme GPAinto is supporting a September petition from of Savannah and 3.08 million TEU, with Charleston seeing 1.65 million TEU. The impact of COVID-19 the SCSPA to overturn a court ruling that allows the ILA to Charleston, January was exp to August periods, sue shipping using theper Hugh Leatherman Terminal in in both ports lines (a drop of 5.1 cent for Savannah and Charleston volumes were down by 1 2019-2023 in TEU Charleston as arebound way to preserve work the union historically cent), but the was strong in 2021, (Savannah +21.3 per cent, Charleston +18.3 per performed at other ports. into 2022 (Savannah +8.0 per cent, Charleston +3.3 per cent). GPA has already applied to the US Army Corps of Engineers to begin work on Savannah’s third ocean terminal Container volumes fell through to August 2023 butinan2026 interes+ng parallel needs to be draw and, notably, intends to staffpandemic. the new 3.5 facility posi+on before the global Asmillion Figure TEU 2 shows, Savannah’s eight-month 2023 volu similarly to all operating — with state represents an other increase of 4.9 ports per cent overnon-union, 2019, while Charleston maintained stability. employees operating certain cranes and other lifting equipment essential forofthe loadingtoand cargo Figure 2: Comparison January endunloading of AugustofContainer Port Volumes for 2019 and 2 ships, and union members performing other longshore work. Savannah and Charleston, in TEU This is because updating its current hybrid labour model to 3,500,000 an all-union workforce will cost “upwards of US$600 million in its first operating year,” GPA states. The ongoing legal issues in the South Atlantic do come at 3,000,000 a cost. HLT in Charleston opened in Q1 2021 but is still largely out of service after the unions sued liner customers in what 2,500,000 appears to be a way of dissuading use of the new facility. Perhaps it is not all bad news though? A Federal Maritime 2,000,000 Commission (FMC) administrative law judge has denied an 2019 ILA claim dating back to April 2022 that stevedores at the 1,500,000 2023 ports of Savannah and Charleston engaged in price fixing. The ruling states that the stevedores are not marine terminal 1,000,000 operators with full power to set fees and rates for container handling. A small victory, perhaps, but as shown by the lack 500,000 of use of HLT, building new terminals and adding capacity to meet demand is only half the challenge – seeing them fully utilised and working harmoniously with union workers must Savannah Charleston also be achieved.
Source: Ports, www.dataand.com
Jacksonville continues to look South BEYOND JUST PORT INFRASTRUCTURE The Port of Jacksonville is the most northerly port in Florida, and it has a very clear focus, as the “global gateway to Florida, the nation’s third largest state,” and, as a result, access to 28 million inhabitants. This is an indication that Jacksonville Port Authority (Jaxport) is primarily looking south rather than north for its primary market. This limits competitive overlap with other South Atlantic ports. Specific activities at Jacksonville include
two new container cranes for its Blount Island Marine Terminal, after receiving US$30 million in state funds, as part of master planning improvements that will expand capacity at this facility by 250,000TEU to one million TEU per annum by 2025. Also, the port authority is raising power lines to be able to offer an operational air draught of 205ft, up from the existing 175ft clearance, while three new ship-to-shore
For the latest news and analysis go to www.portstrategy.com
Source: Ports, www.dataand.com
also imperative to continue improvements in port and rail infrastructure too. Savannah has opened its new 85-acre Mason Mega Rail facility, which doubles port capacity to one million containers per annum and further supports its desire to serve the port’s US Midwest “Arc” target market. In addition, the Garden City Terminal can now serve seven ships simultaneously (including four of 16,000TEU) and is seeing eight new cranes being added between February 2023 and January 2024, while the 100-acre Garden City West expansion has commenced, with one million TEU of annual storage to be added during 2023 and 2024. This will be complemented by two phases of renovations at Ocean Terminal (in 2025 and 2026) to provide two million TEU of annual capacity. Another development is a new transloading facility adjacent to Garden City Terminal, operated by NFI Industries. It is unique because it does not require a trucker to collect a chassis, then haul the container to a nearby site to transfer the contents into 53ft trucks because the containers are shuttled within the port, thereby also negating access to the South Atlantic Chassis Pool.
cranes arrived at the SSA Jacksonville Container Terminal during Summer 2023. Another important development involves a major port automotive customer, Southeast Toyota Distributors, which is investing over US$100 million to develop a new facility at Blount Island when it moves out of its current Talleyrand terminal in 2025. This will help support the port’s key role in vehicle handling and distribution in its core markets in Florida.
NOVEMBER/DECEMBER 2023 | 43
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BRAZIL: NATURAL DISASTERS
BRAZILIAN BLIGHT Brazilian ports have been hit by a double weather whammy of both drought and flood, almost of Biblical proportions. Rob Ward charts events
n Porto Chibato seen here under normal working conditions but drought has recently seen the facility closed for two months along with Superterminais, also located in the port of Manaus
In the Amazonas region, in the far north of the South American country, the worst drought since records began, over 100 years ago, has caused essential container services, serving the Manaus box port terminals of Porto Chibatao and Superterminais, to be cancelled for close to two months. Maersk Line (via the Aliança Navegação brand), CMA CGM (via Mercosul Line) and MSC (via Log-In Logistica), usually operate 20 or so cabotage calls per month into Manaus, a city of 2.2 million people which is 1500km away from the sea and does not even have roads connecting to the south of Brazil, so river-borne transport is an integral and essential part of the transport infrastructure. It is also crucial for the functioning of the Manaus Free Trade Zone, which maintains around 110,000 direct (and another 600,000 indirect) jobs and is home to some of the leading multi-nationals, including Samsung, Panasonic, Honda, Yamaha, Harley Davison, CocaCola, Nestle and Pfizer. Sixty out of 62 municipalities in Amazonas state have declared a state of emergency. Although the rainy season has begun again now up high up in the Peruvian Andes, the recent huge reduction in unloaded/loaded boxes – with cabotage inbound down from an average of 56,000TEU per month, to just 12,000TEU - has wrecked many shippers’ Black Friday plans, and is expected to have a heavy impact on Christmas as well. Federal and state governments have combined to invest Reais100 million (US$20.5 million) on Emergency Dredging at two choke points, but port operators and shippers worry that it might not be enough. In contrast, in the far south of the country all operations at the Itajai Port Complex (IPC) were suspended from October 4 to October 21 due to flooding and heavy rainfall upriver
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causing the current to race at speeds not conducive to berthing vessels. Even after cautiously re-opening, the authorities were forced to close again, twice, including the first weekend of November. At one point more than 30 vessels were waiting in the lanes or delayed, and losses to shipowners are running into the millions of dollars due to the upsets. PERFECT STORM Mark Juzwiak, the Director for Institutional Relations for Maersk Line in Brazil, commenting on the low water level problems notes that the situation in the Amazon had been “problematic” for some time but, for a while, Aliança Navegação had worked around those obstacles by imposing draft restrictions as the water level (at certain choke points) fell from 12 metres to 10, and down to 9, but after that operations were impossible. “We suspended our direct services at the beginning of October because of these low water levels,” says Juzwiak, “but a lot of our customers realised what was coming and so prepared early for Black Friday. Now, following some heavy rains in Peru [the source of many of the Amazon tributaries] the water should be rising but we certainly welcome the arrival of the dredgers.” Since the suspension Aliança and the other two cabotage carriers have been deploying the barge systems (some short and some long) that have been the mainstay of cargo movement in the Amazon region for decades. “We fixed a few shipments to be transferred to barges, but of course they can only carry between 250 and 300 containers compared to 2000 plus by ship, so its leading to a logistics log-jam.
NOVEMBER/DECEMBER 2023 | 45
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BRAZIL: NATURAL DISASTERS “Since the suspension we have been transhipping into Manaus from ports such as Vila do Conde [close to the city of Belem and operated by Santos Brasil] as well as Pecem [near Fortaleza, where APM Terminals has a facility] and we are also looking at other options as those terminals are becoming very congested,” explains Juzwiak, who expressed relief that dredging had finally been started. The “other options” include the river ports of Macapa and Santarem, but, according to the Maersk and Hamburg Sud stalwart, “it’s tough as there is very little or no infrastructure at those ports”. And Ramesh Thadani, the new Business Manager for Grupo Simoes, a leading Manaus-based company, says that a “Perfect Storm” had created this unprecedented drought problem this year and that it might be, partially, repeated again this time next year. “This is the worst drought in more than a hundred years and is in fact a perfect storm of two phenomena,” he explained to Port Strategy. “Firstly, the El Nino weather system [which causes the Pacific jet stream to move south from its neutral position] has caused a longer dry season, with record temperatures all over Brazil, and secondly a massive system of hot air and High Pressure has been sitting over central Brazil preventing rain systems from moving into the Amazon Basin in the north.” And despite the rains in Peru filling the source of the Amazon, the next two months might not be the end of the problems for Brazilian ports. “Quite often El Nino is a 16-month phenomenon and so we are expecting similar problems will affect our port terminals around this time next year,” he told Port Strategy.
‘‘
This is the worst drought in more than a hundred years and is in fact a perfect storm of two phenomena Ramesh Thadani, Business Manager, Grupo Simoes Thadani and other port users are arguing for the beefedup dredging of the two areas of sandbanks which are causing most of the problems. They argue they need to be maintained for months to come, in order to try and avoid future crippling stoppages. As Manaus is the “No 1 destination for cabotage in Brazil” with the Santos to Manaus route alone accounting for 15 per cent of all Brazilian cabotage, it is vitally important that these ports are kept open throughout the year, no matter what the water level, contend Thadani and Juzwiak. The National Department for Infrastructure in Brazil (DNIT), has stumped up Reais100 million (US$20.5 million) to deal with the two “problem sandbanks”, one at Tabocal (some 41km downriver from Manaus) and the other at Boca da Madeira (a further 69km downriver and close to the river port of Itacoatiara). Dredging was due to start in mid-November and works will begin simultaneously, with local dredgers, and will take up to 45 days to complete. A manager at Chibatao, the largest box operator in Manaus with around 460,000TEU last year, says that the boxes which have been moved through the terminal through the drought period were “very few” and were loaded/unloaded via barges, some from the Bertolini company which brought older, laid up barges back into the fray to help deal with the “emergency backlog”. Chibatao also has a sister company which operates barge systems (which can usually accommodate between 70-140TEU) across the Amazonas region, and it is also plugging some of the gaps. He adds that
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the problem was not at Porto Chibatao, which maintained a depth of at least 16m alongside its floating piers, but at the “two choke points”, which regularly “create problems” but rarely “lead to total blockages”. “This is the worst drought for more than 100 years,” said the manager, “and although barges have allowed some containers to get through it is difficult and time consuming to handle them via this system; this drought has really hurt our operations and bottom line.” And its costly too, with shippers telling us that it now costs Reais42,000 (US$8,540) to move a container from Santos/ Sao Paulo to Manaus (about 4200km) via the barge plus containership, compared to between Reais11,000 and Reais15,000 via container vessels for the entire voyage from the south. Over at Super Terminais, the second terminal for boxes in Manaus (with 240,00TEU handled last year, out of the Manaus total of 702,097TEU, with Porto Chibatao handling the remainder), one vessel has been received since the drought began, MSC’s Izmir, which docked (on October 21) with only 10 per cent of its cargo capacity, and with 140 “urgent” containers for the MFTZ, and then departed with just 110. It was the first berthing since September 19 and was only possible because it was 184m long instead of the usual 220m.
n The severity of the drought in the in the Amazonas region, in the far north of Brazil, is plain to see here
FLOODS IN THE SOUTH Meanwhile in the south of Brazil, at the Itajai Port Complex (IPC, which includes Itajai port and Portonave), the opposite meteorological obstacle to port operations has raised its ugly head; namely, flooding and currents that are too strong for ships to berth. At the start of October heavy rains and flooding upriver, near the Germanic town of Blumenau (some 55km from Itajai), led to a sharp increase in the speed of the current in the River Itajai-Acu, making it impossible for tugs to safely berth vessels at Brazil’s second-biggest port for boxes; with around 1.35 million TEU forecast for this year. “It has been very bad and caused the port to be closed for several weeks,” said Robert Grantham, a director of Solve Shipping consultancy and a former Commercial Director of the Itajai Port Authority. “But at least it hasn’t been as bad as November 2008 when the port itself flooded, and sections of the quay collapsed into the river.” That led to millions of dollars of damage and weeks of inaction for the port, which was closed for several months. Shipping lines are using other southern ports, such as Porto Itapoa to the north (near Sao Francisco do Sul) and Imbituba, to the south, but these are now becoming very congested and are not keen to take any more of the overflow as it ruins schedule integrity for the carriers.
NOVEMBER/DECEMBER 2023 | 47
DATA QUALITY
QUALITY NOT QUANTITY Data can be the magic ingredient for port and terminal optimisation – but not just any old data. Get it wrong and the impact can be devastating. As Chad Van Derrick of Tideworks Technology tells Felicity Landon, data quality is paramount
n Overnight terminal housekeeping really benefits from clean data and data governance
How clean is your data? Can it be trusted? Is optimisation being achieved proactively or is it always a reactive function with analysis after the fact? Do you resort to spreadsheets in an attempt to reconcile data glitches? Chad Van Derrick, Vice President of Software Product Management at Tideworks Technology, says that every single meeting he attends with ports and terminals is peppered with talk of optimisation: “But what does it actually mean? It is really about data and the integrity of the data, and making sure it is actionable and easily accessible. “It can be as detailed as attributes around a single container – we were expecting this, it isn’t there – or very subtle details. But if the data is wrong, then it’s a case of death by a thousand cuts. Enough of those errors and all of a sudden, you are not planning as efficiently or correctly as you should, and a container gets released from Customs when it shouldn’t be or a hazardous container isn’t flagged up.” Tideworks provides end-to-end software for marine and rail terminals, from documentation and billing to the planning and execution of vessels, as well as the data platform for analytics, AI and machine learning. Van Derrick says that when operators are looking into or adopting new systems, data is often ‘lost in the shuffle’, becoming an issue almost at the last minute, particularly in system migration. “It’s often ‘wait a minute, we should look at this’. When system migrations don’t get adopted, it’s often because the data can’t be trusted. The question is, why not?” CRUCIAL FACTOR Data governance is crucial for shaping the future of marine terminal operations and enhancing the value and
48 | NOVEMBER/DECEMBER 2023
management of near real-time data, emphasises Van Derrick. Governance in this context includes compliance and data security, but most importantly it is about policies and procedures. “Data is typically broken down into three basic areas – master data, transactional and analytical. That requires different governance along its journey because things can change. What’s in one system might conflict with another, which might conflict with another. So, it’s about knowing the data journey, where it is stored, etc.” This requires different policies to ensure integrity, he explains. “At its simplest – if a particular value shouldn’t be negative or null but should be within a certain range and is not, the system should set up a flag because something’s not right and requires someone to take a look and possibly clean it up. “Instead, a lot of the time there are teams of folks operating on spreadsheets and email to try to reconcile the data. It takes a ton of effort, intervention and paper processes. But with the correct data governance, the system can flag it up, and a data steward goes in to make that adjustment. It is about picking up erroneous stuff early – the longer those discrepancies last, the more probability of error that can have a really significant impact in our industry.” It’s important to build the foundations from the start, he says: what is the master data, make sure it remains clean and high integrity, with boundaries around it so that this can be maintained. “The goal is to change from people manually going in and resolving issues after the fact, to being proactive and providing insights early on. That is the golden key to optimisation.” Tideworks is working with a number of terminals on AI and
For the latest news and analysis go to www.portstrategy.com
DATA QUALITY
‘‘
Terminals should start by understanding their business goals, whether it’s increasing capacity, throughput or handling times, for example. Optimisation in itself isn’t a business goal ML projects to deliver optimisation. An example of this might be a ML model to predict dwell time, based on the last three months of data. “The model is only as good as what you are putting into it. Any data anomalies contribute to the model – as you then try to automate the model and get into AI, you are moving containers and planning the stacking based on what you think is the dwell time. If it’s wrong, you will be putting the containers in the wrong spots or moving a container to another position where another container is already sited, so wasting fuel and labour and resulting in chaos and maybe even safety issues.” Questions must be asked around any data feeding into such a system: has it been cleansed, standardised, enhanced? Are we comparing apples with apples? Different terminals measure various metrics in different ways. “That’s super important when you get into ML and AI. If we don’t understand the data being fed into those models, the results will be interpreted wrongly. AI will take the data for what it is and look for correlations.” Overnight terminal housekeeping really benefits from clean data and data governance, he says. “Decisions can be made to put this container on top of this one, move another, optimise the yards. Also, data can tell you what the gate turnround times are, where trucks are getting backed up, where the waits are, so that you can redeploy resources accordingly. Just making changes in operations based on what you are physically seeing can have other downstream effects.” Are ports making the most of the opportunities from data and real-time analysis? Van Derrick says some terminals are close, their aspiration is real-time, and they are perhaps getting within 30 minutes of real-time in terms of getting access to data and making decisions based on it. “Other terminals have big monitors above their operations desks which are just blank – they are not tracking what I would deem to be essential KPPIs to run their operations, but looking at KPIs after the fact. Data can be retroactive, looking at performance and taking out insights for the following week. But that’s what we need to shift to get into the new optimisation – pulling in data real-time and acting more proactively.” UNDERSTANDING GOALS Terminals should start by understanding their business goals, whether it’s increasing capacity, throughput or handling times, for example. “Optimisation in itself isn’t a business goal. Define what you are trying to achieve and technologists can look at how to help make it happen. Defining the ‘what and why’ is so critical and yet it’s amazing how that’s the difficult thing for many terminals to do. Sometimes the terminals are so in the weeds day to day that it’s hard to take a step back and consider how to increase frequency or profit.” Data for the sake of data is certainly a pitfall, he says. “You can get so wrapped up creating this huge data lake and trying to optimise it and basically look for a nail that isn’t there. You can have the biggest hammer but if you don’t have the nail and you are finding that after the fact, then maybe you didn’t need the hammer.
For the latest news and analysis go to www.portstrategy.com
“I see a lot of terminals go down that path. But if they can’t articulate what they need and what they are trying to achieve, then I have to ask the question – what is all this effort going into? You can throw a lot of time and money at a project but the initiative is unlikely to work.” Other pitfalls are thinking that data governance is a onetime event and thinking that everything must be done at once. “Often, data governance work is tied into a data migration project, into ERP, TOS, etc. – a sort of ‘time to clean up the data’. That’s all well and good but it can be a very overwhelming one-time event. You throw resources at it, suddenly you are in the new system and it all ‘goes away’, but a year later, you are in the same position. It’s really important to establish this in bite-size amounts and continue to come back and ask – are we doing the right thing? Is the benefit still there?” The amount of data itself can be an overwhelming burden. He advises: “Take time to identify the top 20 pieces of data that if they’re wrong are really going to mess things up and affect operations, safety, financials, for example. Draw a box around these; focus on these areas and see the results of that effort.” Where will the industry be in five years’ time? Data will become increasingly important, says Van Derrick. “I would like to say we will be exchanging data between us, across terminals, in a more governed, standardised and readily available state. I think we will be getting there but will not be here yet. “I think we will see some experiments in AI – some may be successful, some maybe not so much. But we will see more business rules and machine learning come into the mix, with things like housekeeping being automated and more predictive applications for trickier tasks. With the likes of ChatGPT entering the consciousness, terminals have the interest to see what they can do with that. It will bring up some really interesting fundamental questions and problems. The next five to ten years will be really pivotal for the industry.”
n Terminals should start by understanding their business goals
NOVEMBER/DECEMBER 2023 | 49
TERMINAL OPERATIONS MANAGEMENT
TOS: AGE OF THE ADD ON
n The Kaleris/ Navis TOS has been developed so that downtime can be reduced while rolling out new features
SECTOR ANALYSIS: TOS SECTOR BOOSTS OFFERINGS Terminal operating systems (TOS) are undergoing developments ranging from more emphasis on subscription payments, new advanced modules and a split between companies that develop the solutions and those that implement them. Mark Wootton, Leading Professional Smart Ports, Water & Maritime, Royal HaskoningDHV, notes that providers are following the Microsoft model, moving from a licence fee upfront and an annual support fee to a monthly subscription fee based on throughput. Wootton highlights the pros and cons: “There is a smaller capital cost but it changes the nature of the investment from an asset to an operational cost, which will have a direct impact on the terminal’s net profitability.” Wootton says that TOS costs have increased, in some cases generally and significantly, but also because providers are demanding an additional fee for
extra modules that are being developed, rather than including them as part of the core product. New modules include digital twins, AI and machine learning, with Wootton explaining that vendors are capitalising on these fast-growing buzz words and developments. While traditionally companies developed the TOS product and implemented it, there is now a shift towards product companies which develop the TOS and third-party professional services companies that implement them. Wootton further comments that TOS projects are large and time consuming and so such a split could help to mitigate risks for the companies developing the systems. It could also be advantageous for terminal operators as if there are enough implementation providers in the market, it could drive competition and thus improve pricing.
ADVANCED FEATURES, NEW MODULES AND CONFIGURATIONS n ContPark: ContPark has launched a management system for container yards that enables the tracking of all movements across terminal sites. The container fleet management solution, released in March 2023, allows the prompt entry of data on changes in movement across container yards that are available to employees and customers in real time. ContPark says: “We took into account all the wishes and made a truly convenient
50 | NOVEMBER/DECEMBER 2023
product that has an intuitive interface for an ordinary employee who knows WORD/Excel.” The company states that its container terminal management system is a specialised real-time solution for the terminal or depot yard. The cloud-based system has AI capabilities and as well as yard tracking and planning, includes performance improving KPIs, accounting for storage and handling operations and customs control.
For the latest news and analysis go to www.portstrategy.com
TERMINAL OPERATIONS MANAGEMENT n Grieg Connect: Grieg Connect has launched a dedicated restow module for its TOS, providing a digitised process to enable agile rehandling during port calls. The Norwaybased company – born out of a merger in 2018 - explains that a restow occurs when a container is relocated from one bay to another, with reasons including an inefficiently placed container, misplacement or late arrivals causing hasty
positioning. The need to execute restows are often delivered to container terminals using email. Grieg Connect says that terminals therefore need a visual module to easily add the required restow container information into their TOS. This module, launched in August this year, ensures that restows are visually marked with both the previous and the new stowage position to make the job easier for the recipient.
n Kaleris: US headquartered Kaleris has unveiled recent innovations related to Navis TOS, including a focus on AI and boosting the efficiency of the product. AI has the potential to significantly enhance decision making within the TOS, but Carlos Lopez Barbera, VP of Product Management, Kaleris, points out that these algorithms typically require substantial datasets and time to reach optimal performance levels. “This learning curve can pose a significant challenge in mission-critical solutions, as our customers cannot afford the time necessary for these solutions to mature,” he says. To overcome this challenge, Kaleris is integrating AI algorithms with its traditional solutions. “This fusion enables our system to learn and evolve while maintaining the accuracy and reliability that our customers have come to expect from us,” he says. Elsewhere, a recent enhancement to its Navis TOS makes it possible to roll out major new features while minimising downtime. Barbera says: “Instead of stopping the
system, performing a big upgrade, and hoping operations return as planned, our TOS supports the current version of the software and the new upgrade at the same time.” The upgrade is tested in a portion of the terminal and rolled out in a stepped approach, allowing customers to work at their pace, without impacting operations or productivity. Navis deploys a subscription-based model, which is calculated based on the volumes the customer moves, factoring in management and hardware costs. Highlighting a growing trend for Kaleris, Barbera also notes: “Some terminals may choose to host their TOS on-premises, but this requires a data centre, servers, and people to maintain all of it. Increasingly,” he suggests, “terminals prefer to pay Kaleris a hosting fee in their subscription, achieving cost savings by using a shared service for hardware, server, and IT support.” Navis TOS, connected to the Kaleris platform, is said to be used in 80 per cent of the world’s terminals.
n RBS: Australia-headquartered Realtime Business Solutions (RBS) has launched a new component for its TOS that spans 3D Digital twin reality, IoT, Cloud, Automation, AI and Integration. The company explains that TOPX Intelligent 3D takes in problems including traffic, bottlenecks and planning delays and re-plans, re-routes and re-assigns until it produces an optimised execution plan. The system has predictive and preventative capabilities that will ensure that problems will be solved before they occur. This can be visualised in the digital twin display that will show how the
yard looks in real time. The display can also show how execution is expected to look in the future, allowing operators to optimise planning. Data is outputted to charts that outline the performance of the terminal and highlight what areas can be improved. TOPX Intelligent 3D can reportedly be integrated with any existing TOS by linking to the existing database to take care of all operational tasks. Recent RBS features include an Intelligent Equipment Control system and enhanced yard management features.
n TBA Group: A growing focus of UK headquartered TBA Group, part of Konecranes, is to configure its TOS to meet terminals’ bespoke demands. Two recent examples of this can be seen in projects for longstanding clients EimSkip and Port of Lyon. EimSkip’s Sundahöfn terminal in Reykavik, Iceland sees approximately 60,000 containers move through the gate annually. TBA Group says: “At peak times, it was becoming very busy, resulting in unacceptable waiting times for the trucks. Furthermore, the processes in place were manual and paper based.” To resolve the issue, EimSkip wanted to relocate the gate to a more strategic location, add more lanes, and redesign the in/out gating process, better utilising technology and implementing OCR to capture container numbers. TBA’s development team
worked with both EimSkip and Cetus (the partner developing the new gate) to ensure that the Gate Operating System was fully integrated into its Autostore TOS V5. Elsewhere Lyon Terminal in France has been using Autostore at its two multimodal inland terminals since 2005. After receiving delivery of a new widespan quay crane, it implemented TBA’s Driver Assist module. The module combines a Driver UI with Position Determination System integration, providing simplification and minimisation of human interaction with the TOS UI. This enables the driver to focus on driving the equipment safely and efficiently, with a positive tracking of container movements utilising feedback from the PDS. Autostore TOS V5 has been implemented at over 30 maritime and inland terminals.
n Tideworks Technology: Tideworks Technology has launched new features in order to optimise a terminal’s value chain and ensure that data is available to make better decisions in real time. The US headquartered company’s marine terminal TOS Mainsail is a flexible platform that is constantly evolving and frequently updated, usually every quarter. In June this year, it launched simulation-based training module DriverSIM. Using either a monitor or headset, trainees can complete a series of lessons in virtual reality that can be customised to include different weather or driving conditions, completed in a digital reenactment of the yard. This is coupled with the ability to include more than one driver in the environment at the same time. Chad Van Derrick, VP, Software Product Management, Tideworks Technology, says: “We have seen a
dramatic decrease in the time it takes to train drivers, along with substantial improvements with costs and safety, as terminals do not have to block off sections of the yard for training and put wear and tear on vehicles. When the driver is in the yard for the first time, they are much more effective at completing tasks.” The company has also developed a platform that brings together data from various TOS applications and which gives terminals the ability to marry data with third party feeds. Launched this summer, and in use in two terminals, the platform enables analytics, machine learning and AI. Van Derrick explains: “We are providing real time streaming with operations data, and creating a set of tools that are purpose built for whatever challenges the terminal is facing.”
For the latest news and analysis go to www.portstrategy.com
NOVEMBER/DECEMBER 2023 | 51
CARGO HANDLING
TYRE R&D GATHERS SPEED
n Trelleborg has developed its CX940 model for handling high intensity jobs in ports
SECTOR ANALYSIS: SUSTAINABILITY AND HEAVY DUTY FOCUS The port cargo handling equipment tyre market is fast growing, with major themes including an increased focus on both sustainability and heavy-duty features. US based Transparency Market Research Inc released its Global Port and Handling Equipment Tire Market report in August 2023, which says that tyres in this sector are projected to increase at a CAGR of 3.7per cent from 2022 to 2032. It notes that the demand for radial and solid tyres remains high. Innovative new features continue to be developed, with the report saying: “Manufacturers are incorporating advanced technologies into their tyre designs to improve
performance and efficiency by using innovative rubber compounds, tyre reinforcement materials, and advanced tread patterns to optimise traction, stability, and wear resistance.” The profiles below highlight such new developments that protect against damage and boost efficiency. Elsewhere, sustainability is a rapidly growing theme, both in tyre production, and also in deploying more environmentally friendly materials, including a growing use of recycled materials as tyre manufacturers aim to meet global CO2 emissions targets. This enables port operators to reduce their carbon footprints too.
INNOVATION, SUSTAINABILITY, DAMAGE RESISTANCE, EFFICIENCY n Bridgestone Americas: Bridgestone Americas has introduced a new tyre for straddle carriers that has been engineered to help terminals extend their equipment’s operational hours. Launched in April 2023, the Bridgestone V-Steel Port Container Straddle (VPCS) radial tire has been designed to deliver enhanced load capacity, speed rating and durability for more efficient operations and extended service life. “Ports face unique challenges and need equipment that remains productive in virtually any kind of condition, 24 hours a day and seven days a week,” says Rob Seibert, President, Off the Road, US and Canada, Bridgestone Americas. “With the VPCS, our team of engineers set out to design a tyre that meets these challenges head-on and keep our world’s supply chain moving forward.” The Bridgestone VPCS radial tire is currently available in two sizes: 450/95R25 and 480/95R25. Compared to previous generation Bridgestone tyres,
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innovations include: a new tread pattern and more durable casing structure for a 22 per cent longer service life and a new high-strength casing design that delivers a 28 per cent higher load index. Or there is the option for a Cooler Running Tire Design that provides a 40 per cent higher maximum speed, allowing carriers to increase efficiency and move more per hour. Bridgestone has also been working towards its sustainability goals, after announcing in September 2023 its first tyre manufacturing site to be verified as carbon neutral. Its plant at Chakan in Pune, India, was verified according to the international PAS 2060 standard for 2022 by global assurance partner, LRQA. Bridgestone says that this was an important part of its efforts to meet the global target of carbon neutrality (Scope 1 and 2) by 2050 and a 50 per cent reduction of CO2 emissions from its operations by 2030 versus the 2011 benchmark.
For the latest news and analysis go to www.portstrategy.com
CARGO HANDLING n Continental Tires: This Germany headquartered company is focusing on digital fleet management tools and boosting efficient and sustainable port operations. It has recently advanced its digital tyre management system ContiConnect with its new Bluetooth-enabled generation of sensors. This enables fleet managers and drivers to access tyre data for the vehicle directly via any smart device, such as a mobile phone. “Having a digital twin of the intelligent tyres in our web portal means that the fleet managers can easily locate the position of each intelligent tyre and check the tyre condition whenever they want,” says Continental. It is equipping all radial port tyres with its new Bluetoothenabled generation of sensors ex-factory, ready for its
ContiConnect digital tire management system. The company says that sustainability is an integral part of its Tyres ‘Vision 2030’ strategy, with the aim that by 2050 at the latest, all of its tyres will be made of sustainable materials. Federico Jiménez, Head of Business Field Port Operation Tires at Continental says: “Our goal is to be the most progressive tyre company in terms of environmental and social responsibility. The efficient use of tyres during operations by the help of digital tyre monitoring solutions like ContiConnect can help to reduce emissions already, today.” For 2024, the company is planning new sizes for its DockMaster+ range, which has been developed for reach stackers, heavy forklifts and empty container handlers.
n Goodyear Tire & Rubber Company: Goodyear has rolled out a new tyre pressure measurement system at DP World Southampton that promises to reduce machine downtime. In August 2023, it was announced that US-headquartered Goodyear had retrofitted the Goodyear DrivePoint Heavy Duty system across DP World Southampton’s port operations, including over 80 straddle carriers. This is a drive-past tyre inspection system that allows automated and dynamic tyre pressure measurement. The drive-past technology removes the need for physical tyre pressure checks, freeing up port staff to focus on other operational priorities. This comes on the back of a 20-year partnership between DP World and Goodyear. Following a test period, the DrivePoint HD solution has been rolled out across the fleet of Goodyear EV-4M tyres. The system uses receivers that read and analyse data from the machine’s dedicated heavy duty tyre pressure sensors as they drive by. Paul Bould, Off-The-Road Sales Manager, Goodyear UK says: “This trial with DP World shows there is an extension of tyre service life, and a reduction in the amount of time spent stopping for tyre pressure checking.” n Nexen Tire: Nexen Tire has unveiled its sustainablematerial demonstration tyre composed of 52 per cent sustainable materials. The South Korea based tyre maker’s experts used current- and emerging-technologies to create the demonstration tyre. Materials include natural rubber, bio-based synthetic rubber and silica derived from rice husk waste residue. Another significant
feature is that it is made of 8 per cent recycled materials using polyester cord formed from recycled plastic PET bottles and bead wire derived from scrap iron using an electric arc furnace. “This research demonstrates our commitment to becoming one of the most forward-thinking tyre companies in terms of ESG,” states a representative at Nexen Tire.
n Nokian Tyres: Nokian Tyres has launched a new tyre for reach stacker front axle use which aims to boost tyre stability and service life. Introduced in January this year, the Nokian Tyres HTS G2 L-5S is a member of the Nokian Tyres HTS G2 series of port and terminal tyres that have been designed for high stability and load-bearing capacity. “In a heavy reach stacker front tyre use, the smooth, extra-deep slow-wearing tread lasts up to 35 per cent longer than our previous comparable tire – depending on your location and application”, says Kimmo Kekki, Product Manager, Nokian
Tyres. “Particular attention has been paid to the tire flexing area, which benefits from our special shock-absorbing rubber compound used in the tire carcass.” The company, based in Finland, explains that it uses Bias tyre technology that has now been further developed for its new product. The new model has been designed specifically for front axle use. This enables a thicker tread than the previous L-4S models, resulting in a longer service life. The rubber compound wears slowly and resists puncture damage, preventing unexpected downtime.
n Trelleborg Tires: Trelleborg has launched its latest tyre with the aim of maximum resistance for handling high intensity jobs in ports. The CX940 model, released in April 2023, is designed for heavy duty equipment that is constantly on the move, such as reach stackers. It has an extra-wide tread that increases operator comfort and provides better resistance when carrying high intensity loads. Its wearresistant compound helps protect the tyre from wear and tear. Trelleborg Tires – acquired by Japan’s The Yokohama Rubber Co. Ltd in May this year - says that the CX940 model
reduces heat generation even at high speeds, and its reinforced bead construction has been tested to make hard turns in tight areas, putting less stress on the tyre. Chiara Cianci, Product Marketing Manager Material Handling, Trelleborg, says: “Our new CX940 tyre is made for stress and endurance. Its robust casing and optimised tread design mean less downtime and more efficient machines, which adds up to huge savings in highly busy ports.” Trelleborg designs, develops and distributes a range of cargo and port equipment tires for heavy duty applications.
For the latest news and analysis go to www.portstrategy.com
n Goodyear has retrofitted a new tyre pressure measurement system across DP World Southampton’s port operations
NOVEMBER/DECEMBER 2023 | 53
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PRODUCTS & SERVICES DIRECTORY
Tel: +44 (0)2882 251100 Email: sales@telestack.com www.telestack.comw #WeHaveTonnesToTellYouAbout
– Portable grains pumps – Pneumatics continuous barge and ship unloaders 100-1200 tph – Simporter twin-belt unloader up to 2500 tph – Loaders up to 2500 tph Complete turnkey projects VIGAN Engineering S.A. Belgium Tél.: +32 67 89 50 41 www.vigan.com/info@vigan.com
The BEUMER Group is an international leader in the manufacture of bulk material handling systems: Overland Conveyor Pipe Conveyor Stacker & Reclaimer Shiploader Tel.: +49 2521 240 E-mail: info@beumer.com Web: www.beumer.com
25/01/2022 12:03
Over 60 years supporting Container Terminals in port operations: we create strategic value and increase profitability through solid and reliable STS Portainer® and RTG Transtainer® cranes, services & Advanced Port Technologies. PACECO® CORP. World Headquarters 25503 Whitesell Street Hayward, CA 94545 Tel (510) 264-9288 email@pacecocorp.com www.pacecocorp.com
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
For the latest news and analysis go to www.portstrategy.com
As one of the leading manufacturers of quick connector systems,Stäubli covers connection needs for all types of fluids, gases and electrical power. Tel: +33 4 50 65 61 97 connectors.sales@staubli.com www.staubli.com/en-de/ connectors/
Staubli_Directory Mar 2021.indd 1
ShibataFenderTeam Group SFT is the leading fender manufacturer with +60 years of group experience in the design of safety critical fender system that protect vessels, port infrastructure and people. We offer the full range of customized fender solutions and maintain production facilities for high-quality rubber products, steel panels and foam fenders. Join the safe side.
contact@sft.group www.sft.group
F IRE SUPPRESSION SYSTEMS
Taylor Machine Works designs, engineers, and manufactures more than 100 models of industrial lift equipment with lift capacities from 4,000-lbs. to 125,000-lbs.
C ONNECTION SOLUTIONS
excellent returnCambridgeshire on investment. Gemini House Gemini House Cambridgeshire Business Park, 1 Bartholomew’s Walk, Ely Business Park, Cambridgeshire CB7 4EAEly 1 Bartholomew’s Walk, England, United Kingdom (UK) Cambridgeshire CB7 4EA Tel: United +44 1353 665001 (UK) England, Kingdom Fax:+44 +44 1353 1353 666734 Tel: 665001 sales@samson-mh.com sales@samson-mh.com www.samson-mh.com www.samson-mh.com
Taylor Machine Works, Inc.
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
igus® GmbH GmbH igus® Spicher Str. Spicher Str.1a, 1a 51147 Köln, D-51147 Köln,Germany Germany Tel.+49-2203-9649-0 +49-2203-9649-0 Tel. info@igus.eu info@igus.eu igus.eu/P4.1 igus.eu/P4.1
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SAMSON Materials Handling Ltd specialises SAMSON Materials Handling Ltd in the design and in manufacture mobile specialises the designofand bulk materialsofhandling for manufacture mobileequipment bulk materials surface installation across handling equipment for multiple surface industrial segments. Designed for rapid installation across multiple industrial onsite set-up and continuous segments. Designed for rapidhigh onsite performance SAMSON set-up and continuous highequipment performance provides an excellent returnprovides on investment. SAMSON equipment an
Heavy duty rol e-chain® P4.1 e-chain®P4HD.56R The new heavy-duty e-chain Energy chain withrol optional meets all thewear relevant requirements intelligent monitoring for for container cranes oflife, the next and double the service travels generations. ofnext-but-one up to 1.000 m, speedsLonger of up and travels, dynamics, tolonger 10 m/s and greater fill weights of short stress zero failures. up tocycles, 50 kg/m.
VAHLE PORT TECHNOLOGY
Email: port-technology@vahle.de Web: www.vahle.com
F ENDER SOLUTIONS
C ARGO HANDLING EQUIPMENT
Vigan ID.indd 1
E LECTRIFICATION SOLUTIONS
For more than a century, Bedeschi is providing effective and reliable solutions in a wide variety of industries (bulk handling, marine logistics and mining), capitalizing on synergies and cross competences. Via Praimbole 38, 35010 Limena (PD) – Italy Tel: : +39 049 7663100 Fax: +39 049 8848006 Email: sales@bedeschi.com Web: www.bedeschi.com
DELLNER DAMPERS AB Customised damper and buffer solutions for container spreaders and ship-to-shore, rail mounted gantry and process crane’s. When fitted to spreaders, our dampers protect the hydraulics’ and reduce noise. Our HYBUFF buffers protect operators and prevent damage in the event of an involuntary impact. P.O. Box 51, SE-642 22, Sweden +46-(0)157-45 43 40 www.dellnerdampers.se/
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
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
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DRY AGRIBULK MATERIALS HANDLING SYSTEMS :
Bedeschi S.p.A
C OMPONENTS
B ULK HANDLING
Telestack Directory June 2021.indd 1
D REDGING
ifm electronic gmbh ifm is one of the world’s leading sensor companies in the automation of measurement and control, optimizing technical processes in almost all industries. +49 201 24 22 0 info@ifm.com www.ifm.com
Beumer Directory Jan 2021.indd 1
C ARGO HANDLING SYSTEMS
B ULK HANDLING
A UTOMATION TECHNOLOGY
Telestack are a leading global manufacturer of equipment for the bulk material handling industry including Ship Loaders/Unloaders, Hopper Feeders, Truck Unloaders, Bulk Reception Feeders, Stockpiling Conveyors, Link Conveyors and Telescopic Stackers.
LASE Industrielle Lasertechnik GmbH
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. Tel: +46 470 77 22 00 info@fogmaker.com www.fogmaker.com
25/02/2021 15:49 Fogmaker Directory.indd 1 01/02/2021 NOVEMBER/DECEMBER 2023 | 55 13:12
PRODUCTS & SERVICES DIRECTORY
TO
For more information visit: seawork.com contact: +44 1329 825335 or email: info@seawork.com
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
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Künz GmbH
Port Strategy Directory Contact Arrate Landera +44 1329 825335 www.portstrategy.com
Contact Arrate Landera +44 1329 825335 www.portstrategy.com
Sany SanyAllee Allee11 50181 Bedburg, Germany D-50181 Bedburg Tel: 100 Tel:+49 +49 2272 2272 90531 90531 100 Email: info@sanyeurope.com info@sanyeurope.com Email: www.sanyeurope.com www.sanyeurope.com
For more information visit: seawork.com contact: +44 1329 825335 or email: info@seawork.com
Seawork 1 25/07/2023 TT Club11:27 Directory March 2021.indd 1 56directory.indd | NOVEMBER/DECEMBER 2023
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11 JUNE Southampton 13 2024 United Kingdom TO
For more information visit: seawork.com contact: +44 1329 825335 or email: info@seawork.com
Reefer Monitoring Solutions Increase efficiency. Reduce costs. Improve safety. RTE’s 40 years of innovation and experience deliver the most complete system of reefer monitoring solutions for today’s growing terminal operations. Discover what over 80 reefer terminals already have. Visit us at: rte-usa.com Or email us at: info@rte-usa.com New York | Panama
The world leading manufacturer of Sideloaders, self-loading semi-trailers for versatile & efficient container handling. www.hammarlift.com info@hammarlift.com
S PARE PARTS
I NSURANCE
Sany ID.indd 1
IDENTEC SOLUTIONS is an industry-leading, trusted partner in managing and monitoring reefer containers and optimizing entire terminal operations through solutions like Reefer Runner and Terminal Tracker. Contact: Stephan Piworus, Global VP Sales Marine & Ports, spiworus@identecsolutions.com; Mobile: +49 151 74122606 www.identecsolutions.com
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
S IDELIFTER/SIDELOADER
SANY Europe GmbH offers a broad spectrum of high-performance mobile port machines such as Reach Stacker, Empty Container Handler, Heavy Duty Forklift Trucks and Material Handler
P ORT AUTOMATION
Port Strategy Directory
TO
To advertise in the
Founded in 1932, Künz is now the market leader in intermodal rail-mounted gantry cranes in Europe and North America, offering innovative and efficient solutions for container handling in intermodal operation and automated stacking cranes for port and railyard operations. Gerbestr. 15, 6971 Hard, Austria T: +43 5574 6883 0 sales@kuenz.com www.kuenz.com
To advertise in the
11 JUNE Southampton 13 2024 United Kingdom
Tel: +358 3 211 0403 Email: sales@visy.fi Web: www.visy.fi/
R EFRIGERATED TRANSPORT
H ANDLING EQUIPMENT
Seawork directory.indd 1
Orts GMBH Maschinenfabrik
Visy systems reduce VISY Oy expenses, optimize safety & security, and VISY takes pride solving via increase throughputincapacity operational problems,Our specialising process automation. singlein gate automation and system access platform gate operating control ports and and OCRsolutions solutionsinmanage all terminals. Their solutions cargo, assets & personnel streamline via processes resulting movements quay, rail or road in saving money and to keep operations moving. increasing productivity.
P OWER TRANSMISSION
11 JUNE Southampton 13 2024 United Kingdom
I T PORT AUTOMATION
G RABS MRS Greifer GmbH 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
TVH is a global player in the field of spare parts and accessories for heavy forklifts, reach stackers, container handlers, spreaders and terminal tractors. With over 96,000 references in stock and more than 644,000 known references, TVH offers quality replacement parts for many brands and makes, including the hard-to-find ones. Tel: +44 2476 585 000 sales.team.uk@tvh.com www.tvh.com
01/03/2021 Seawork14:40 directory.indd 1 11:27 go to www.portstrategy.com For the latest news25/07/2023 and analysis
PRODUCTS & SERVICES DIRECTORY
Prinses Margrietplantsoen 33, 2595AM, The Hague, The Netherlands Tel: +31 (0) 702-051-709 Email: sales@solvosys.com www.sovosys.com
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
TO
For more information visit: seawork.com contact: +44 1329 825335 or email: info@seawork.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
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
Hochhäuser Str 18 97941 Tauberbischofsheim, Germany Tel: +49 9341 8990 sales@mafi.de www.mafi.de
w IRE ROPES
T ERMINAL OPERATIONS SYSTEMS
11 JUNE Southampton 13 2024 United Kingdom
The Brain of Logistics
T RACTORS
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.
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
Brunton Shaw UK is a successful manufacturer of high quality wire ropes for a wide range of applications. The company effectively combines more than 130 years of experience and tradition with an up to the minute range of products, and a customer service package ideal for the modern market place. Tel: +44 1909 537626 Email: info@brunton-shaw.co.uk
www.brunton-shaw.com
GREENPORT Seawork directory.indd 1
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DECEMBER 2019 | 53
DECEMBER 2019 | 53
POSTSCRIPT DPW AUSTRALIA – ANNUS HORRIBILIS
‘‘
Strikes, tax avoidance allegations, a cyber-attack and heavy criticism of new terminal access charges; 2023 is shaping up to be an annus horribilis year for DP World Australia
58 | NOVEMBER/DECEMBER 2023
DP World Australia, operator of container terminals in Melbourne, Sydney and Brisbane, has problems stacking up which would challenge the mettle of any PR man. It is in the middle of an industrial dispute with the Maritime Union of Australia (MUA) which at the time of writing continues to impair its ability to provide efficient service. Recent weeks have seen stoppages and work bans including whole day actions. Coupled with this action, the end of October saw Australia’s Guardian newspaper publish the findings of a new report by the Centre for Corporate Tax Accountability and Research (CICTAR) which states the company has paid no corporate tax in Australia despite generating revenue of in excess of A$4.5 billion over eight years. CICTAR additionally alleges DPW Australia may have achieved this zero-tax position through tactics such as “artificially reduced profits” and inflated management charges. CICTAR also reports that DP World’s Australian ownership structure, “relies on extensive use of shell companies in tax havens, including the Netherlands and the Cayman Islands...” For its part, DP World has responded with a general statement that it has played an important part in maintaining the smooth functioning of the Australian economy. “Efficient cross-border goods movement is essential for the country’s economy, with numerous businesses of all sizes, from Australian farmers to major retailers, depending on this interconnected system,” said DP World. There was no specific rebuttal of the tax allegations. CICTAR is an organisation established by a number of trade unions and community organisations with a remit to focus on the tax arrangements of multinationals and to disseminate this information to the Australian public in order for them to be better informed. The MUA DPW Australia dispute centres on the company’s wish to introduce a more flexible work roster system involving more weekend work. At the time of writing, there are no signs of compromise
n 2023 has seen DP World Australia confronted by multiple problems spanning strike action through to a recent cyber attack which experts suggest was preventable had the company implemented an available solution to a vulnerability called Citrix Bleed, discovered in July this year
with the MUA rolling out new strikes at multiple locations and DP World saying it doesn’t believe it can engage in constructive negotiations while the strikes continue. It is not illegal for companies to pay zero corporate tax under certain circumstances but it poses the thought that it is hardly an attractive element for a host country seeking wide-ranging postive economic impact from the granting of port concessions. Meanwhile, DPW was recently compelled to close its Australia wide landside operations for three days following a cyber attack with operations only resuming on a basis where they were ramped up in phases following confirmation of system integrity. Investigations are continuing regarding the attack with DP World acknowledging that, “some data was exfiltrated from our network.” Recovery at Port Botany is expected to take two to three weeks. As if all the forgoing is not enough to contend with, DP World has faced a storm of criticism following announcing its intention to substantially increase its terminal access charges (for landside transport operators) at its Melbourne, Sydney and Brisbane container terminals. Already a big bone of contention, DPW plans a 52.5 per cent increase in terminal access charges at Melbourne, 37.5 and 26.2 per cent increases respectively for exports and imports at Brisbane and similarly 38.8 and 25.5 per cent increases at Sydney. Terminal access charges are a hot topic with moves afoot to seek regulation in this area to contain escalating charges. DPW’s big uplift in charges is seen in some circles as a move designed to attain a certain level in advance of any new regulations relating to containment efforts that might apply.
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