INVESTMENT
THE RISE AND RISE OF DIGITAL TWINS MEXICO:
Have you got one? A lot of ports, terminals and other companies active in the supply chain have. There is a big surge in interest in deploying digital twin technology as evidenced by the articles on p38 and p40. The latter article particularly highlights the range of applications for digital twin technology in the ports sector and the ensuing benefits.
The fundamental strength of the digital twin, and what makes it so exciting to deploy, is that it effectively bridges the divide between model and reality. Driven by developments with the internet of things (ioT), big data, artificial intelligence, cloud computing and digital reality technologies, the recent arrival of digital twins signals a defining moment where the physical and digital worlds can be managed as one, and we can interact with the digital counterpart of physical things much like we would the things themselves.
Bottom line, what doers this deliver? In a nutshell, better decision making which in turn is expected to drive significant changes in the operation of supply chains and logistics processes. Digital twins bring deeper insight into the planning, operation and optimisation of the individual components of supply chains – ports and terminals for example – right through to entire global networks.
Exactly how can they work and deliver real benefits. Six main areas of application are identified:
n Twins for system prediction: A digital twin geared towards predicting complex systems.
n Twins for system simulation: A digital twin that can simulate complex system behaviour.
n Twins for asset interoperability: A digital twin to achieve common data formats and streamlined data extraction in complex systems.
n Twins for maintenance: A digital twin that will assist with maintenance related cases.
n Twins for system visualisation: A digital twin for visualising a complex system (e.g. in 3D)
n Twins for product simulation: A digital twin simulating the behaviour of future products/systems, mostly at the design phase.
There is no stopping the digital twin bandwagon now – as noted above there is a major uplift of interest in deploying this technology. The days are now long gone when complexity and cost restrained the broad-based adoption of digital twins. The growing number of technology providers bears witness to this and significantly industry analysts expect the digital twin market to grow at a rate of more than 38 per cent over the next few years, accounting for more than USD26 billion by 2025. If you haven’t explored the digital twin dimension yet it is clearly very worthwhile doing so.
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Climb on the digital twin bandwagon and enjoy the ride!
Empowering technology, falling cost factors, an explosion in the number of technology providers and growing positive experience all combine to bring digital twins within reach that can deliver substantial added value
Our cover celebrates the positive influence of digital technology on the port and terminal sector and supply chains in general. Within this issue, the two articles on digital twin technology, now being adopted at pace, particularly confirm this beneficial impact. The sector is a hotbed of innovation and commensurate expansion
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The port of Kapeellskar, part of Ports of Stockholm, has successfully deployed a new automooring system in conjunction with the new Finnlines ro-ro vessel Finnsirius and the possibility of extending the systems use has been raised including at the container port Stockholm Norvik. There is no onboard technical requirement with vessels using the system other than the vessel structure must be strong enough to cater with the loads experienced during mooring. Control of the system is exercised from the vessel by means of a control unit essentially comprising a computer, screen and antennas.
Trials have been successfully concluded that confirm access to the Port of Antwerp for container vessels with a 16m draft. The first 16m draft vessel to enter was the MSC Tessa with earlier MSC vessels involved in the trial entering at progressively deeper drafts, step by step, up to the record-breaking access of MSC Tessa with a 16m draft. This pilot project has been conducted under a collaboration between the Flemish and Dutch pilotage services, liner operator MSC, the Joint Nautical Authority and Port of Antwerp-Bruges.
Following a project commissioned and overseen by the Harwich Haven Authority (HHA) the main approach channel and Berths 8 & 9 at the Port of Felixstowe have been deepened to improve access for the world’s largest container vessels. The project was implemented by a JV of Dutch dredging contractors Boskalis and Van Oord.
It is interesting to note the uproar that has been sparked by MSC’s proposed US$1.4 billion buy-in of a 49.9 per cent stake in HHLA, the Hamburg port and intermodal rail operator which also has container terminal operations outside Hamburg in Estonia, Italy and the Ukraine.
The deal that MSC has put on the table is one that is assessed to offer a healthy premium over HHLA’s listed share price (at the time the bid was lodged) and one that has other attractive elements especially when looked at against a background of the port of Hamburg’s declining annual container throughput. There is the offer of making the port a ‘central hub’ for MSC’s global network of container services, building a new German headquarters in Hafencity, adding an extra one million TEU of throughput over the next eight years and establishing Hamburg as a homeport for MSC Cruises with the number of employees doubling to around 700.
On paper the deal looks good and it has received a welcome by some parties – Dr Peter Tschentscher, Mayor of Hamburg for example.
Opposition voices have, however, been plentiful and louder. These have included: “Klaus-Michael Kuhne who controls Kuehne & Nagel as well as possessing a 30 per cent stake in major liner operator Hapag Lloyd; Rolf Habben Jansen, CEO of Hapag Lloyd who stated he would move Hapag Lloyd container volume away from
Hamburg rather than pay a rival to use the port, Thomas Eckelmann whose Eurokai Group controls HHLA rival Eurogate and hundreds of HHLA employees who in a show of opposition marched from the HHLA headquarters to Rathausmarkt. Media reports suggest both Klaus-Michael Kuhne and Thomas Eckelmann have floated the idea of launching alternative bids. Further, it is clear that there is concern among the general public about the prospect of losing a national asset to a foreign- based company. It is understood that the deal would operate for a minimum of 40-years. The process continues as PS goes to press.
On the African continent in Dat es Salaam, Tanzania, there has been an even more broad-based negative reaction to the idea of D P World securing a government-
to-government deal which would see the company takeover key port facilities on a long-term basis. The reaction to some extent reads like a work of political fiction with a crackdown by government on opposing political factions including the temporary imprisonment of key figures and the police elevating the temperature of the controversy by labelling proposed mass demonstrations against the deal as amounting to treason and stating they will not be tolerated.
The reaction to the two proposed deals no doubt to a significant extent highlights the power of social media. Equally, it raises doubts about the desirability of investment proposals that fall outside the traditional landlord port/ concession model which has proved so successful to-date.
Bangladesh-based Summit Alliance Port Limited (SAPL) has signed a memorandum of understanding (MOU) with Logistics & Infraprojects Limited, one of India’s largest integrated rail terminal operators, with the objective of forming a jointventure to improve rail logistics in Bangladesh.
The main focus of their
collaboration will be to develop rail-linked inland container depots, container freight stations and multimodal logistic parks at strategic locations in Bangladesh.
Commenting on the development Jowher Rizvi, Managing Director, SAPL, underlines: “By entering this MOU with Pristine, we have identified a well-accomplished technical
partner to work with us to reach the next milestone in the country’s integrated rail logistics journey.”
SAPL is recognised as a leading off-dock service provider handling over 20 per cent of the country’s exports and over 10 per cent of import volume.
The MOU was signed last month, September 2023.
Mediterranean Shipping Co. (MSC) could potentially take a minority stake in a new PSA International terminal at Nhava Sheva Port (JNPT) in India.
Bharat Mumbai Container Terminals (BMCT) is operated by PSA Mumbai. Phase I operations commenced in February 2019, with an annual capacity of 2.4 million TEU, as part of a 30-year concession signed in 2014.
Each phase at BMCT consists of three berths, a quay length of 1000m and has the ability to handle 16,000TEU to 18,000TEU capacity vessels.
The Port of Liverpool, UK has commenced redundancy consultations at its container division. The port states this move is due to a “sustained and significant deterioration” in container volumes.
In an official statement, the port’s owner, Peel Ports, reports that estimates for the first half of 2023 point to a drop in UK container volumes of around 12 per cent, following a decrease of seven per cent in 2022.
Moreover, the company contends that “economic and industry forecasts show that no meaningful improvement is expected in the near future” and adds that these declines are “due to a combination of factors, including weaker consumer demand for manufactured goods
Construction work on a new multimodal terminal at the Port of Cherbourg (part of Ports of Normandy) in France has commenced. This investment is part of a major rail-road transport scheme which, once completed, will connect the south-west of France to Great Britain and Ireland through Cherbourg. The port has several key strategic goals including accommodating larger ships in the cross-channel business.
as a direct result of inflation, recession concerns fueled by rising interest rates and wider geopolitical issues.”
As a result of commencing this process, the Port of Liverpool container terminal, which employs around 850 people, expects to see up to 125 redundancies announced. Voluntary redundancies are being accepted.
In conjunction with its statement on redundancies, Peel Ports also points out that it has “restored Liverpool’s position as a global gateway between the UK and the rest of the world” and that the “£400 million Liverpool2 project, the port’s deep-sea container terminal, has created hundreds of additional, direct jobs and thousands more
Reports in Argentina suggest that the General Administration of Ports of Argentina (AGP) has generated a master plan which includes operation of two terminals in the port of Buenos Aires. As a result, future operating tenders are expected. Related actions anticipated include the reconversion of part of the area previously occupied by BACTSSA for container operations and steps to be taken to improve rail access.
in the wider logistics and maritime sectors.”
Liverpool2 can receive ships up to 13,500TEU in size, with the port more favourably placed geographically over Felixstowe, London Gateway, and Southampton to serve transatlantic trades rather than the East-West trade routes to/ from Asia, where even larger ships are in service.
In November 2022, a new pay deal was agreed between the port operator and workers, following strikes the previous month over cost-of-living wage increases.
The Port of Aberdeen has been awarded funding by the UK Government to design and deliver the first large-scale landside and vessel-side shore power system in Scotland. The project aims to cut vessel emissions at berths by more than 80 per cent compared to use of marine fuel, saving in excess of 60,000 tonnes of CO2 generation over 20 years. Shore power is planned for seven berths and to be operational by April 2025 at the latest.
MSC’s interest is reportedly in the second phase of BMCT, which is currently under construction and due to commence operations in Q1 2026. The move could see a stake of 26 per cent acquired by the Geneva-based liner operator.
MSC is an existing user of Nhava Sheva but primarily uses DP World Nhava Sheva at present. The deal with PSA Mumbai could lead to a greater concentration of calls from this shipping line at BMCT through exclusive berthing access arrangements.
With CMA CGM recently securing a 30-year concession to modernise and operate an older facility in conjunction with Mumbai-based JM Baxi Group, the introduction of MSC as a stakeholder could intensify intra-port competition in Nhava Sheva.
Dongwon Group, a major South Korean logistics and deep-sea fishing company, has secured US$280 million in financing from KDB Smart Ocean Infrastructure Fund, which is supported by state-controlled lender, Korea Development Bank (KDB). The funding is for a new container terminal at Busan New Port’s West Container Terminal, as part of development Phases 2.5 and 2.6. The terminal is to be developed on a fully automated basis.
The Port Houston, Texas, USA has ordered five hybrid RTGs from Konecranes for its Barbours Cut Container Terminal. The order was booked in Q3 2023, with delivery slated for Q1 2025. This latest order continues the ports move towards greater use of hybrid container-handling equipment. It currently has a fleet of 26 hybrid units, but by early 2025 the number will rise to 57 machines of this type of RTG, all of which use advanced Li-ion battery technology.
A new container terminal at Puerto Antioquia, Colombia has placed an order for eight new RTGs as part of its planned development. The new fully electric units were ordered by Puerto Bahia Colombia de Uraba, whose key shareholder is the CMA CGM Group, and are powered by cable reels that are connected to the local power grid. The order was placed in August 2023 with Konecranes and is in line with CMA CGM’s efforts to achieve Net Zero carbon by 2050.
The Port of Long Beach is expecting to commence construction of its 400 acre ‘Pier Wind’ offshore facility in 2027. The US$4.7bn project has what the port describes as an “aggressive” timeline, especially as it will require all necessary permits to be in place by mid2026. This project is a key component of the port infrastructure needed to support the State of California’s planning goal of seeing 25 gigawatts of power generated in place by 2045.
DP World and Evyap Group have confirmed a new strategic equity partnership involving their respective Turkish operations. By combining DP World Yarimca and Evyap Port a new business entity is being created, with the name confirmed as DP World Evyap Port.
This new deal will see DP World take a 58 per cent stake in Evyap Port, with Evyap Group owning 42 per cent of DP World Yarimca.
The aim of the proposed venture is to allow the two port operators to cut turnaround
times, widen service offerings and enhance security capabilities as part of a wider objective of improving supply chain solutions for the Turkish market.
Located in the Izmit Gulf, DP World Yarimca handles around 700,000TEU annually across its two terminals and says capacity at the port is 1.15 million TEU per annum. Evyap Port is located just 10km from Yarimca and has a main quay of 455m and a finger pier offering 378m, giving a total capacity of 700,000 TEU per annum.
This move comes after the UAE
and Turkey announced trade agreements worth a reported US $50.7 billion in July 2023, as they strengthen investment ties and boost collaboration in strategic sectors.
Turkey has a relatively high number of facilities handling containers, with as many as 26 different locations. Collectively, it is a market totalling around 12 million TEU per annum.
DP World has signed a new concession agreement to develop, operate and maintain a new 2.19 million TEU capacity mega-terminal at Kandla, located in the state of Gujarat on the west coast of India.
The concession is to run for a period of 30 years, with an option to extend by a further 20 years, on a Build-Operate-Transfer (BOT) basis.
This new facility is close to the existing Deendayal Port at Tuna-Tekra and will be developed at a total cost of around US$510 million.
When fully operational in 2027,
the new terminal will offer 1100m of berthing, capable of handling ships of over 18,000TEU capacity. The concession features an option to extend the quay to 1375m.
The Deendayal Port Authority awarded the concession in January to Hindustan Infralog Private Limited – a joint venture between DP World and the National Investment and Infrastructure Fund (which is supported by the Government of India).
The new terminal will connect to Indian’s hinterlands through a network of roads and railways but will particularly target greater use of Dedicated Freight Corridors
that link Northern, Western and Central India.
To emphasise this objective, the port is a part of the National Infrastructure Pipeline and will complement initiatives of the Government of India, such as the PM Gati Shakti Master Plan and National Logistics Policy.
DP World currently operates five container terminals in India. There are two in Mumbai, plus terminals in Chennai, Cochin and Mundra. The new Tuna Tekra operation will increase the company’s total container terminal capacity in the country to 8.19 million TEU per annum.
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The Gothenburg Port Authority, Sweden has confirmed it is developing a new digital port solution that will deliver time and cost savings to ships using its port.
As a result of the “Digital Port Call” product, an estimated 1000 tons of CO2 emissions will be saved annually with effect from January 2024 when the new tool goes live. The system allows all parties involved in a ship’s arrival, which can be up to 120 different stakeholders, to synchronise and plan all requirements of the operation to maximise efficiencies.
Digital Port Call is the result of a collaboration between the Gothenburg Port Authority and the Finnish company, Awake.AI, which is responsible for developing the service. In 2021, the two organisations launched a new digital Berth Planner tool, Allberth, but this latest initiative plans to digitalise the whole port call.
Fredrik Rauer, Manager of Port Control, Port of Gothenburg, elaborates: “Today, there are numerous contacts that need to be made for a ship to arrive at berth, to load and unload, and then depart. This consumes time
and creates uncertainty. Digital Port Call consolidates all communication points into a smooth and efficient chain where predictability for the entire ship call process becomes evident. It encompasses everything from booking pilots and tugs, ensuring cranes are in the right position for the vessel, having the port crew ready to receive ropes, knowing the prevailing wind strength, to identifying the vessels in port. Essentially, it ensures that the right information is available at the right time for effective planning of a smooth arrival.”
Digital Port Call is part of the major initiative Green Connection that the Port of Gothenburg is implementing in a bid to reduce port-related CO2 emissions by 70 per cent by 2030.
There will be a need to ensure storage and access to alternative fuels is available, along with investment in physical and digital infrastructure that can support a fossil-free logistics chain –currently, spending of €60 million is earmarked for CO2-reducing activities, which is targeting a reduction of 500 hours in berth time annually and 250 hours less anchoring time.
Kawasaki Kisen Kaisha, Ltd. (“K” LINE), TIS Inc. (“TIS”) and Miotsukushi Analytics Inc. (“Miotsukushi”) have jointly developed a draft survey application in order to more accurately determine vessel draft survey application.
This new product is designed to use artificial intelligence (AI) to recognise the water surface and the draft mark from the image captured with a smartphone and to display the accurate draft level with the impact of waves removed on the screen to help accurately measure the draft.
The draft is measured to calculate the weight of cargo loaded onto dry bulk carriers. Currently it is undertaken by crew members and surveyors using the naked eye, but doing so at anchorage can lead to inaccurate information because some ports
LHTE, a multimodal terminal in the port of Le Havre, is collaborating with OCR technology specialist, AllRead, to address real-time control of container entry, exit and condition. With almost 2000 containers transiting each week via different modes of transport, LHTE has implemented AllRead’s ARS© Rail solution. The software uses artificial intelligence algorithms to interpret the images.
and terminals can be susceptible to waves.
The jointly developed automatic draft survey application makes use of the “AI and data analysis service” offered by TIS and Miotsukushi and combines smartphones with the AI to supplement draft measurement
Supply chain visibility supplier, FourKites, has launched Fin AI to develop a new process of exploring, monitoring, and leveraging supply chain data for real-time, data-driven decisionmaking. Fin AI uses a specific language model (LLM) from FourKites’ data network to enable customers to assess the effect of disruptive events on supply chains and quickly pinpoint impacted shipments. A diagnosis of why a shipment is not tracking can be made promptly.
that traditionally depended on the experience of maritime professionals with the AI. As a result, the new application can improve the degree of safety in navigation and cargo operations and maximise the cargo transportation volume. It is designed for smartphones and
The US Department of State’s Export Control and Border Security (EXBS) programme is establishing a National Maritime Single Window (NMSW). An NMSW is an electronic platform that facilitates the exchange of information between government agencies and the shipping industry, which acts as a centralised system for reporting and processing marine transport-related data.
n K Line and its partners filed a patent for a new application that uses AI to recognise the water surface and draft measured
can be used at sea where Internet access is unavailable because the processing is completed locally at the terminal.
Husky Terminal and Stevedoring, a terminal operator and stevedoring firm based in Tacoma (WA), has introduced a new private wireless network. It has been supplied by Nokia and ensures an upgrade to the previous cloud-based terminal operating system (TOS). Coverage is from six 4.9G/LTE antennas at four access point sites, rather than the existing 39 Wi-Fi access points, and allows monitoring of movements for up to 40 yard trucks.
CEVA Logistics has confirmed that it has reached an agreement that will see it purchase 98 per cent of Mumbai-based Stellar Value Chain Solutions.
Stellar Value Chain Solutions was founded in 2016 and is a major consumer supply-chain services provider through provision of contract logistics and fulfilment services across the eCommerce, automotive, food products, consumer, fashion and retail, healthcare and pharmaceuticals market segments.
A new Community Network Services (CNS) Port Community System (PCS) upgrade has been launched in the UK by Digital Trade Solutions (DTS).
DTS is a DP World company and is offering a new CNS PCS in a bid to greatly improve ease of use and cross-platform integration.
The company’s existing “Compass” platform has been supporting a number of major ports in the UK since 2010, but this new upgrade will see a transition to a cloud-based and HMRC-compliant CNS PCS. The system is based on DP World’s global CARGOES platform and is operable on multiple devices and
RightShip, has launched an enhanced version of its industry leading maritime decarbonisation product.
GHG 2.0 Rating features an updated and improved methodology built in line with International Maritime Organisation (IMO) regulatory developments to support the drive for decarbonisation as efficiently and effectively as possible. The IMO requires that shipping reaches net zero by 2050.
reportedly has sufficient flexibility to respond to regulatory changes as they occur.
CNS PCS provides real-time visibility relating to the status of shipping consignments, while also automating manual processes to streamline operations. It features an Application Programming Interface (API) which allows its various users, including importers, exporters, freight forwarders, shipping lines, transport service providers and customs brokers, to integrate the new platform into their existing systems.
As a result, the API can seamlessly facilitate integration, data exchange and interaction
The FIT Alliance (BIMCO, Digital Container Shipping Association (DCSA), International Federation of Freight Forwarders Associations (FIATA), International Chamber of Commerce, and Swift) has announced its “Declaration of the electronic Bill of Lading (eBL).” The aim of the declaration is to secure a commitment from all stakeholders in international trade to collaborate in driving digitalisation which will help streamline international trade.
between all stakeholders, thereby enhancing efficiencies, and improved communication.
A phased rollout of the new system commenced with a pilot launch in the Belfast community during August 2023, with a wider implementation across other CNS sites in the UK subsequently following. The transition for all ‘Compass’ users in the UK is expected to be complete in 2025, including deployments across London Gateway and the Port of Southampton.
Maritime software provider Sea and the Mærsk McKinney Møller Centre for Zero Carbon Shipping have signed a Knowledge Partnership Agreement committing to a long-term strategic cooperation/decarbonisation programme. The deal cites how reliable data empowers informed decisions and insights into global fleet operations, can fast-track development projects and better implement green corridors and technology.
As a result of the deal, CEVA will gain 7.7 million ft2 of operational space across 70 facilities in 21 cities throughout India. The current workforce is estimated to be almost 8000 people. By comparison, CEVA’s footprint in the country is much smaller, with 75 locations, around 2.7 million ft2 of space in 35 Indian cities.
This acquisition represents an opportunity for CEVA to expand its presence in India, as Mathieu Friedberg, Chief Executive Officer, CEVA Logistics, explains: “With the addition of Stellar VCS, we will continue our strategic growth with the goal of becoming a top five global logistics player. We are expanding into more key market segments and boosting our presence in this strategic country. Stellar has an important network of contract logistics facilities across India.”
COSCO Shipping has released its new “For For Tune” digital end-to-end supply chain solution for shipping cargo from Europe to China. The new digital platform, dubbed SynCon Hub, covers the full shipping process from container yard to door, including inland transportation services and optional customs clearance in China. As a result, COSCO customers benefit from what the company describes as “easy and fast order and reliable delivery,”
Kalmar is acquiring the product rights of the electric terminal tractor product line from US-based Lonestar Specialty Vehicles (LSV). As part of this transaction, LSV is transferring all immaterial assets and will act as Kalmar’s contract manufacturing partner.
Lonestar Specialty Vehicles, headquartered in Texarkana, Texas, is specialised in the development and manufacturing of turnkey electric vehicle solutions for the commercial vehicle market. The company deployed the first electric tractor in November 2019.
Hyster has developed and shipped a new hydrogenpowered reach stacker to the Port of Valencia. This new product is part of the H2Ports project which aims to introduce hydrogenpowered equipment and vehicles into all aspects of port operations at the Spanish facility.
This Hyster® ReachStacker represents an innovative zero-emission solution that uses a Nuvera® fuel cell to convert hydrogen into electricity. The hydrogen is stored on-board in high-pressure tanks and can be refilled in 10-15 minutes. The on-board hydrogen fuel cell charges the batteries, which power the electric motors and hydraulic systems enabling the ReachStacker to lift laden containers with a similar
Norwegian government enterprise, Enova, has confirmed it is investing NOK64 million (€5.5 million) in shore power port projects. The ports of Stavanger, Molde and Oslo will receive a total of NOK 60 million (€5.2 million), while Plug AS will receive NOK four million (€400,000) for an onshore power facility in Larvik. Since its inception in 2016, Enova has supported 127 different shore power projects.
performance to a diesel alternative.
Using the Nuvera Fuel Cell Engine, this new ReachStacker is claimed to offer several advantages over conventional diesel-powered machines. It reduces greenhouse gas emissions, noise pollution and operating costs thanks to the elimination of the diesel engine, transmission and other mechanically-driven components.
The Hyster ReachStacker will be tested and validated in live operation at the MSC terminal in Valencia. Jan-Willem van den Brand, Director Global Market Development, Hyster, explains the value of the project in more detail: “We are proud to be part of the H2Ports project and to contribute to the development of
The first two of six new ZPMC Super-Post Panamax Ship-toShore (STS) cranes have been delivered to the APM Terminals (APMT) operation at the Elizabeth marine facility in the Port of New York/New Jersey. The remaining four similar-sized units are due in 2024. Each crane has a 23-container outreach to be able to serve ultra large container vessels (ULCVs). Port Elizabeth is APM Terminals’ largest terminal on the east coast of North America.
zero-emission solutions for port operations. The hydrogen fuel cell ReachStacker is a breakthrough innovation that demonstrates our commitment to sustainability and customer satisfaction. We look forward to seeing it in action at the Port of Valencia and to receiving valuable feedback from the end-users.”
Hyster® is a leading global supplier of materials handling equipment, designing and manufacturing more than 140 models of counterbalance trucks, warehouse, and container handling equipment.
Peru’s Port of Paracas has installed new cameras that off er 4k UHD resolution, wind resistantance up to 290 km/h, 12 x zoom and vibration-free monitoring with optical image stabilisation. Supplied by Bosch, the MIC IP ultra 7100i cameras have been placed on 40m-high masts to ensure reliable, high-resolution surveillance of the 110,000 m² area. They are able to determine the exact position of objects at all times enabling fast response times.
Kalmar, part of Cargotec, states that this new electric terminal tractor product line will be added into its existing portfolio under the brand name Kalmar TX and will be available in the Americas region.
Hermanni Lyyski, Vice President, Terminal Tractors, Kalmar, elaborates “The demand for electric terminal tractors is increasing and we want to make sure we have a comprehensive portfolio of electric vehicles available for the market. It is a key strategic objective for us to advance our own and our customers’ decarbonisation journey, and we are excited to widen our existing range of electric solutions with the acquired electric terminal tractor product range.“
US-based inspection body, the National Cargo Bureau (NCB), confirms that 55 per cent of inspected containers were non-compliant, 43 per cent failed due to poorly secured dangerous goods, and 6.5% were mis-declared dangerous cargoes. Consequently, NCB is encouraging broader participation from industry for a more comprehensive view on container risks globally, while container inspections are being offered to carriers free of charge.
Tyre manufacturer Continental has added recovered carbon black (rCB) to its newly produced Super Elastic solid tyres at its tyre plant in Korbach, Germany.
This process reduces the use of fossil raw materials and CO2 emissions, which means solid tyres such as Continental’s SC20+ utilise around 60 per cent renewable and recycled materials thanks to a naturally high rubber content.
The recovered carbon black is supplied by Pyrum Innovations, one of Continental’s partner companies. Pyrum breaks down end-of-life-tires into the individual components in industrial furnaces using a special pyrolysis process. This allows valuable raw materials contained in end-of-life-tyres to be extracted and recycled.
Moreover, solid tyres have a high load capacity and are extremely stable, puncture-proof, maintenance-free and highly economical. This means they are ideally suited to be used in material handling applications in conjunction with forklift trucks, heavy transport vehicles, side loaders, platform trucks
and other port equipment.
Matthias-Stephan Müller, Product Manager for material handling tyres in Continental’s Specialty Tyres business area, offers further insight: “Sustainability is becoming increasingly important in the specialty tyre segment. Our Super Elastic solid tires combine low rolling resistance, long service life and a comparatively high proportion of sustainable materials.”
Many forklift trucks are powered electrically. The range and charging times of the battery employed are therefore important. Tyres with a low rolling resistance can help to keep the energy consumption of electrically powered forklifts low and thus contribute to improved vehicle range.
The rubber compound is crucial for high energy efficiency and therefore low rolling resistance, as valuable natural resources can be saved and the energy consumption of special vehicles reduced.
Müller elaborates: “Our customers want to make their operating processes even more environmentally friendly, resource-saving and efficient. Forklift trucks, for example, are required to do more work in the shortest possible time. This means moving heavier loads and traveling further distances at higher speeds. This is where Continental comes in with its customised tyre solutions.”
This latest move is part of Continental aiming to use 100 per cent sustainable materials in its tyre products by 2050, at the very latest.
The International Union of Marine Insurance (IUMI) claims carriage of electric vehicles (EVs) is safe. Lars Lange, IUMI Secretary General, explains: “Our paper draws on a body of scientific research which demonstrates that fires in battery EVs are not more dangerous than fires in conventional vehicles, nor are they more frequent. Although statistics continue to be gathered, they currently estimate that, in general, there are fewer fires from EVs compared with fires from conventional vehicles when driven over the same distance.”
ShibataFenderTeam Group (SFT) has developed a new assessment tool that provides Greenhouse Gas (GHG) emissions per individual order. In a jointventure with independent consultancy company Ramboll, this new offering confirms emission outputs associated with the product components, the energy consumption and transport of the raw material. This confirms CO2 emissions associated with an order, and more importantly, how reductions can be achieved.
Florida Legislators are supporting the purchase of two new container cranes at the Port of Jacksonville. A total of US$30 million has been allocated for the new units at Jacksonville Port Authority’s (JAXPORT) Blount Island Marine Terminal. Jaxport will replace two older cranes and is expecting the new ship-to-shore units to help meet the growing cargo volume needs of Florida businesses and consumers. Procurement processes for the cranes are already underway.
Throughout the world of digitalisation - which looms large across all maritime sectors, 2023 has been the year of Artificial Intelligence (or “AI”). For techsavvy investors, big gains have been scored in picking the right names. For the port communitieswhich interface with the world of vessels, and then with the parallel universes of cargo moves and landside infrastructure, AI is clearly worth watching- though with a weather eye, rather than as an instant action item.
Years back, on several of the tech projects I worked on, I became a big fan of something called “XML”, a programming protocol which had the ability to assist in sharing of data. A few months ago, in this column, I wrote about “APIs” which work differently, but also offer the capability to link disparate data
flows (and underlying data repositories) together.
Do readers detect a theme here?
To me, when looking at ports, it’s all about translation and moving actionable information “across the dock”.
At a few of the world’s largest ports - including some in the States, planners have made great strides with management of cargo flow data. But these efforts can be likened to individual islands; island hopping may be fun for tourists, but it is not viable for managing cargo flows on a worldwide basis.
“Machine learning”, another term that is often conjoined with AI, has been used by maritime players in recognising patterns. However, the vast
The recent announcement of the India-Middle EastEurope economic corridor is another step in the efforts of the EU and US to challenge China’s Belt and Road Initiative (BRI) with a competing approach: the Partnership for Global Infrastructure and Investment (PGII). As with the BRI communication, the announcement does not have a great deal of detail.
Some unofficial maps seem to suggest a ‘sea/rail/sea journey between Europe and India. However, India’s direct maritime connectivity with Europe is good and will further improve through better port and hinterland operations, especially in India.
A competitive ‘sea/rail/sea’ alternative for the India-Europe trade is in my view not really feasible, even though such an alternative may put pressure on the charges for the Suez Canal. Thus, I doubt this corridor will
interplay of variables affecting cargo flows (and, hence, having the ability to improve scheduling and day to day operations) limits its applicability to looking out beyond a few weeks, maybe one or two months.
From my vantage point, I would hope that ports would think about infusing AI applications (not the wellknown ones like ChatGPT, but rather platforms with a logistics specialty) on top of their existing data management platforms. This will enable port planners to “see” further into the future, enabling more rigorous testing to accompany their recommendations and decisions with longer-term implications.
But there is still the issue of “island hopping”. There are efforts
to look at standardising some parts of the data universe; for example, the Federal Maritime Commission (FMC) is now undertaking a data initiative.
As I sit back and ponder all the parallel universes behind cargo flows (writers have that luxury!), I would ask questions along the lines of how, exactly, efforts like those at the FMC might interact with those of other bodies (e.g. the International Maritime Organisation - IMO - comes to mind)? The IMO’s dictates will have broad implications- not the least of which concern ships being forced to slow down as rules on carbon intensity of fuel consumption evolve. Quite a bit for this tourist, maybe using an AI assist as a guidebook, to ponder.
and Saudi Arabia. Such a rail connection -and the trade facilitation initiatives/hydrogen pipeline as also announced in the agreement could benefit supply chains within the Middle East and promote economic integration (of some countries) in the region.
have a ‘transformative impact’ on maritime transport between India and Europe. Nevertheless, India is obviously happy with this initiative, which strengthens its geopolitical standing and its links to the Middle East. In my view the real potential breakthrough of this corridor is within the Middle East. The corridor initiative foresees
a rail connection between Saudi Arabia, UAE, Jordan and Israel. Such an agreement is plausible given the recent improvement of relations between these countries – and especially Israel
In addition, such a connection could be valuable for Turkey - not included as a signatory of the MoU. It will take a considerable amount of time before the exact rail corridor will be agreed, designed, financed, built and put in operation. In all likelihood the major financial contribution will have to come from Saudi Arabia, blessed with a budget surplus but a potentially problematic relation with PGII’s values regarding democratic values, good governance, and sustainability. It will be interesting to hear about the progress made at the next G20 summit.
The near collapse of the supply chain in 2021-22 was very profitable for terminal operators, but this has come to an end and the search is on to find ways to cut cost.
Two years of strong performance driven by the Covid -19 consumer boom, combined with the near collapse of the logistics supply chain, drove up terminal volumes and increased income from demurrage as they were not able to clear boxes out powered income growth. Then came the shift in consumer demand as expenditure shifted more towards the service sector.
Rising interest rates and inflation make life more costly and by late 2022 cargo volumes to Europe and North America began to decline, turning into a serious rout by early 2023 that is only slowly improving. Northern Europe has the additional pain of the shut down of services to Russian ports.
Container terminal operator volumes in the northern
hemisphere are being negatively affected from this decline in demand for containerised cargo in 2023. Intra-Asia trade is bearing up. Hamburg, Rotterdam and Antwerp have been particularly hit by the combination of lower volumes and sharp reductions in earnings from demurrage as the supply chain sorted itself out.
Hamburg’s HHLA reported that “In the first three months of the year Group revenue reduced
It is quite remarkable that the US International Longshoremen and Warehouse Union (ILWU) has been compelled to declare bankruptcy and enter Chapter 11 over a dispute at the Portland (Oregon) container terminal. This centres on just two employees, who plugged in reefer containers and who the ILWU argued should be its members as opposed to belonging to the International Brotherhood of Electrical Workers which they were already members of.
The question springs to mind, how it has come to this, a union compelled to file for bankruptcy over the dogged pursuit of getting two employees, already union members, to switch their allegiance to the ILWU? I suspect Peter Drucker might have a
operations in Q2 2023, increasing 10 per cent compared to the first six months of 2022. Throughput grew nine per cent to the envy of the other international operators.
Reports from across the globe indicate that demurrage revenue is back to pre-Covid levels and vessel congestion is only a memory (perhaps not at the Panama Canal, but that is another story). The return of positive volume growth however will be a slow affair until inflation, interest rates and the uncertainty of the Ukraine war reduce.
by 5.6 per cent year-on-year and operating result (EBIT) fell significantly by 57.3 per cent. At the same time, profit after tax and minority interests dropped by 87.7 per cent, compared with the same period last year”, not an encouraging result.
International Container Terminal Services Inc. (ICTSI), with much less exposure in Europe, has reported revenue from port
This leaves the industry with a difficult 2024. Carriers are managing their overcapacity by dropping sailings and temporarily parking their ships, including some of the new 24,000 TEU class in places such as Singapore. Terminals are increasing their focus on finding ways to increase cost savings by further automation and optimisation of operations in order to increase productivity.
word or two to say to union officials on the subject of risk management. The ILWU is said to have over 4000 members –objectively if I was one of them, a fully paid-up member, I might be more than a little disgruntled at this state-of-affairs.
Irony of ironies though it does lend some credence to the ILWU motto: “An injury to one is an injury to all.”
A quick recap: the dispute goes as far back as 2012 and is between the ILWU, for the reasons stated, and international terminal operator, Manilaheadquartered International Container Terminal Services Inc (ICTSI), the then operator of Portland’s Terminal 6 container facility. The ILWU in pursuing its goal of bringing the two
employees into its membership implemented a near year long slowdown of operations and a landside blockade of the terminal which, hardly surprisingly, saw liner operators seek other gateways. Net result, no viable business stream – also another testament to, ‘An injury to one is an injury to all!’
ICTSI sued for damages and was awarded a thumping US$93.6m with the Federal Judge making the judgement citing the “ILWU’s unlawful labour practices.” (Did no one read the Red Book of legal union practice?) On appeal damages were reduced to US$19m, a figure not acceptable to ICTSI. The dispute continued and hence it has arrived at the point today where the ILWU has sought the
shelter of Chapter 11 bankruptcy, an arrangement under which businesses recognise their debts but continue operating. Indeed, the ILWU has stated publicly:
“We intend to use the Chapter 11 process to implement a plan that will bring this matter to resolution and ensure that that our union continues to do its important work for our members and the community.”
“A plan?” Presumably the ILWU had one previously…the one that failed! It will be interesting to see what the new plan is, perhaps essentially it needs to recognise how its previous actions have brought it to this parlous state and that the reckless pursuit of principle is not always in the best interests of all of its membership.
The world looks quite different today than it did in 2019. The implications for port development of these structural shifts are far-reaching. How should the port sector adapt to the new reality? Andrew Penfold takes a look…
n Bangladesh is one location that is the subject of investor interest but the cost picture behind many forthcoming terminal projects has changed and this raises questions about the adequacy of tariffs and ultimately the level of returns
Port development – and especially the container sector –experienced at least ten years of growth and expansion in the period since the Financial Crisis of 2008-2009. Indeed, the process of globalisation was accelerating demand for many years prior to this. The situation from the current perspective looks quite different.
Until 2019 demand was expanding rapidly in nearly all the deepsea and shortsea container trades with this driven by accelerated investment from private investors – both from within and from outside the industry – and also from state players. Private equity involvement in the port/terminal sector drove up valuations sharply and ‘Belt and Road’ money from China accelerated many projects that now seem highly dubious. The grease in the engine of all this was low interest rates and (to a lesser extent) geopolitical motivation.
The US Federal Reserve dropped interest rates to just 0.25 per cent in the immediate wake of the Financial Crisis as a ‘temporary’ measure to save the major banks and financial institutions. This low rate was held for years, and sense was only beginning to return in 2018, but an immediate U-turn followed with the Covid Crisis and only now have rates increased from 0.5 per cent 5.5 per cent.
Superimposed on all of this were repeated rounds of government purchases of their own debt (‘Quantitative Easing’). This story is well charted but what are the implications for port investment?
Terminal investors are now faced with several issues that have been largely unknown in the container sector for many years. Specifically:
5 It costs mush more now to raise the money for investment – this cost pressure will work through into lower margins per box handled.
5 The costs of supplies for development – construction and equipment – have gone through the roof, placing further pressures on the bottom line.
5 Investors have been faced with much higher demand from the ‘green’ economy, both with regard to infrastructure development and required green features in the terminals.
The answer for any business faced with these changed reality issues and broad inflationary pressures would be to seek to pass these higher costs onto their customers. The terminal sector is seldom able to adopt such a strategy. Stevedoring contracts often have an inflation clause (usually CPI) that seeks to protect revenue from the worst effects of this kind of situation, but a closer look reveals that this may well provide only a false comfort blanket.
Take the situation in the European North Continent ports. Here, new capacity is coming on stream that predates the post-2019 realities. This capacity – especially in the deepsea sector – is facing a decline in demand or certainly slower growth. Whether this is a temporary situation or indicates a structural shift away from China is unclear. But it does mean that terminal operators will be in a highly competitive situation over the next few years. This will be compounded by increasing pressures for lines to run their containers through their owned terminals.
Under these conditions is it realistic to think that CPI protection will escape unscathed? Also, the lines are only now facing up to the challenge of over-capacity and lossmaking freight rates. It is unlikely that lines will simply pay-up
for higher charges in this environment. As was noted during other periods of shipping over-capacity there will be downward pressure on rates.
This situation is being mirrored in many of the major port ranges in the Developed World and any mismatch of capacity with demand will soon be reflected in other major port ranges.
If these uncertainties were not enough to at least put the brake on some development programmes the geopolitical instability following from the Ukraine war and (perhaps more worryingly instability over Taiwan) has lifted political risk. Some projects are now uninsurable, and others have seen much higher premiums quoted. This has also seen localised contraction in demand – for example transshipment from North Continent ports into the Baltic.
It seems certain that the following will determine the market in the next five years, or so:
n Much more realistic costs of capital – no return to cheap money.
n Inflationary pressures – especially in the near term.
n Uncertain demand development and redirection – lower growth.
n Weaker supply/demand balances – in some regions.
n Much greater political risk.
For commercial investors this clouds the outlook considerably.
Development of a container terminal is invariably effectively a joint venture between the Port Authority (usually the local or national government) and the concession holder. The latter is usually commercially funded by infrastructure funds or industry operators (terminal operators and shipping lines). The situation is often blurred as in the case with many (now suspect) Belt and Road initiatives.
from infrastructure funds in terminal development fall back sharply. A few years ago, infrastructure funds were queueing up to invest in terminals, with the result that prices were pushed to unrealistic levels. These days have gone.
At the private equity (pe) level, including where pe has acquired key suppliers to the terminal industry, there is also a distinct push to leverage charges sometimes well into double-digit figures – the net result is increased cost, another pressure on margins.
The divergence of interests between the terminal operator and the Port Authority seems certain to intensify in the next few years.
Since the early 1980s port development – especially for containers – has assumed a steady growth in demand. Under these conditions where ‘a rising tide floats all boats’ some marginal projects proceeded on the assumption that capacity will be readily filled and that demand forecasts could be simply accepted largely unchallenged.
This is no longer the case. In the current financial climate an appraisal needs to look very carefully at the robustness of cost and revenue assumptions. A new checklist must include at least:
n How will the IRR look if interest rates remain at high levels – or even increase further?
n How protected are revenue streams from adverse currency movements?
n The Maasvlakte II Terminal in Rotterdam, operated by APMT, is being expanded. In the face of dipping demand, it is expected to be used more extensively by Maersk as a cost saving measure
The Port Authority is, typically, concerned with the competitive position of their port versus other alternatives in the range. This has been the driving force for ports for time immemorial. Whilst this is still fundamental, additional responsibilities are now noted. The increase in green pressures has seen ports required to make investments in other – high cost – projects such as shoreside power or the handling and storage of ‘green’ fuels. In the EU this is driven by Union-wide regulations, but the absence of agreed enforcement rules results in intra-port competition on these issues. Emphasis on these ‘non-commercial’ investments needs to be accommodated.
In contrast to private capital Port Authorities have access to taxpayers’ funds and as pressures mount on costs there are already instances of significant upgrading of state investment. This can clash with the priorities of terminal operators. The focus here is on making a profit or serving the line owner’s business. With revenue pressures mounting any calls for increased concession charges from Port Authority landlords will only be resisted. Also, new projects will be much more closely analysed – we are already seeing the level of interest
n Can inflationary cost pressures be readily passed on to the end user (shipping line or shipper)?
n Are line guarantees worth the paper they are written on? Counter-party risk is high and getting higher in the container shipping market.
n Just how robust are demand forecasts and what influence will local supply/demand balances have on pricing power?
All of these issues should always have been at the centre of investments but – unfortunately – this was often not the case, and this is now being manifested by marginal projects feeling the pressure.
At the end of the day an investor in a new or expanded container terminal will have to decide the level of risk they are comfortable with. Its always possible to overplay the risks, paint a pessimistic picture and decide to keep your money in the bank but in reality, the position now is much more complex than before 2019 and margins much tighter. This means that there is no alternative to a very careful and detailed review. Terminal and port investments are long term and can’t simply be ‘sailed away’.
There are many good opportunities out there but the population of ‘maybes’ is much higher than it used to be.
In contrast to private capital Port Authorities have access to taxpayers’ funds and as pressures mount on costs there are already instances of significant upgrading of state investment
Mexico has long been a manufacturing alternative to China, but concerns over China’s economy and vulnerabilities to supply chain security from COVID-19 means further opportunities exist, as AJ Keyes discovers
A recent study from the Inter-American Development Bank (IDB) suggests that nearshoring could bring an annual US$78bn in additional exports of goods and services throughout the Caribbean and Latin America. Of this total, the IDB estimates that Mexico could be the biggest beneficiary with US$35.3bn per annum of goods exports.
With concerns over supply chain security one of the fallouts from the COVID-19 pandemic, a greater interest in nearshoring is a logical outcome. The concept of nearshoring is where a company moves all or part of its manufacturing and production closer to its final consumer. This reduces costs and, importantly, minimises supply chain issues that have been prevalent in many locations (especially the USA) since the pandemic occurred.
COVID-19 certainly gave the nearshoring concept a boost because the closing of borders globally impacted the provision of goods being shipped internationally, but it was not the only reason. For example, tariffs imposed by the US on China in 2018 caused some businesses to look for alternative markets to reduce costs. Also influential, the USMexico-Canada Agreement, signed in 2020, brought manufacturers incentives to relocate supply chains and make more products in North America. Also, the war in Ukraine impacted the supply of various key raw materials, resulting in a search for alternate suppliers.
What does this mean for Mexico and is the country taking advantage of any potential that exists? Well, there are several
fundamental reasons why nearshoring is highly relevant to Mexico and why the country is in a good competitive position to attract investment, as Table 1 shows.
Mexico already has an established role in nearshoring and it can be seen that the country has recently benefitted from the COVID-19 pandemic and concerns over China’s future role more than any other country trading with the US.
A comparison of the share of US imports by country of origin for 2018 and for Q1 2023 confirms that the country has taken some of the share lost by China, according to data provided by the US Census Bureau and shown in Figure 1. Here, China has seen its share fall from 21 per cent to 13 per cent, with Mexico seeing an increase from 13 per cent to 15 per cent, which places it as the largest provider of imports into the US in Q1 2023. At the same time, Canada overtook China’s share in the same quarter, recording a figure of 14 per cent, while Taiwan and Vietnam also recorded improvements, with both locations seeing the 2018 total of two per cent rise to three per cent for the first three months of 2023.
Of course, the Q1 2023 figure is only a snapshot and covers just one three-month period, but it does endorse known trends suggesting that China’s dominance in serving the US is slipping, while Mexico is taking the opportunity to increase its trade activity with the US.
So, is it possible to quantify how much Mexico could benefit from nearshoring moving forward? In terms of value, nearshoring has the potential to boost the growth of Mexican
Proximity to US Borders the USA, so offers immediate access to major consumer markets via a shorter/quicker supply chain – USMCA deal means tariff-free options
Skilled Labour Force
manufacturing exports to the US from US$455bn in 2023 to an estimated US$609bn in the next five years, according to Morgan Stanley. To put this into perspective, manufacturing exports currently represent about 40 per cent of Mexico’s US$1.3 trillion economy, but there are various areas where increases are anticipated. For example, US$94bn in gains in well-established sectors such as electronics and automotive, US$38bn from sectors that have benefited from free trade via the USMCA and US$22 billion from the increased manufacture of IT hardware and opportunities related to the electric vehicle supply chain (a US electric car maker is opening a new US$5bn plant in Monterrey) and other clean technologies.
As a result, new investment driven by nearshoring could reach an estimated US$46bn in the next five years, according to Morgan Stanley estimates.
For this to happen, the Mexican intermodal rail and logistics industry will need to be up to the task, with the ability to cross the US border underlining that an efficient operation will be needed to keep pace with opportunities.
The US Bureau of Transportation Statistics (BTS) confirm that there was a five per cent year-on-year increase in trucks entering the US at the key Laredo cross-border location in March 2023. This follows similar improvements at the start of 2023, with January seeing a rise of 9.6 per cent and February enjoying a 7.9 per cent rise over the corresponding periods 12 months earlier.
Furthermore, for the whole of 2022 cross-border trucking at Laredo, moving inland to US locations, represented a nine per cent rise over 2021. This is double the figure for the total inbound US trucks crossing from Mexico, which itself was up by 4.5 per cent in 2022.
Meeting US demand for automobiles and SUVs/trucks is already an established business activity, with largescale manufacturing plants in place from US companies and with the US Federal Reserve System confirming that vehicle and parts production continue to increase (up by over nine per cent in April 2023, year-on-year). This is another activity expected to take advantage of more nearshoring.
While there are, of course, other border crossing locations linking Mexico with the US, Laredo offers a good snapshot of overall activity. The simple conclusion is that given increases in nearshoring in Mexico, with the major market served being the US, then more trucking movements can be expected.
The use of rail is the other key overland transport facilitator and North American railroads are continuing to improve service offerings form Mexico to the US – with the prize being the ability to serve the US Midwest and, specifically, Chicago.
The newly merged Canadian Pacific Kansas City (CPKC) entity has already announced it is planning to use Lazaro Cardenas as a new, “safe” option for US imports from Asia. The aim here is to offer beneficial cargo owners greater supply-chain stability than using the San Pedro complex of Los Angeles-Long Beach and saving (according to CPKC) 1014 days over the Panama Canal option.
With around one million TEU of unused capacity at Lazaro Cardenas’ existing two terminals (before any further
Cost Efficiencies
Large and capable workforce, experienced in manufacturing and engineering – bilingual language facilitates communication and collaboration with US companies
Mexico wages higher than many Asian countries, but the lower transport costs to the US can offset this factor – real estate costs are reportedly reasonable
Supply Chain Resilience
Closer proximity means the US can be accessed via road/rail, cuts out the maritime/port supplychain components – fewer parts in the chain. Nearshoring in Mexico allows companies to establish more agile and responsive supply chains, enabling faster delivery of products, and lower inventory costs
Nearshoring in Mexico allows companies establish more agile and responsive supply chains, enabling faster delivery of products, lower inventory costs
Sector Capabilities Established capabilities in high-value sectors –i.e., automotive, electronics, aerospace, and medical devices
Sector Capabili.es
Source: Infrata, dataand.com, TMF Group
Established capabilities in high-value sectors i.e., automotive, electronics, aerospace, medical devices
expansion), there is certainly space, but the efficiency of the operation beyond the port’s boundaries must exist.
Source: Infrata, dataand.com, TMF Group
Here, CPKC is moving quickly. It has confirmed capacity in conjunction with Knight-Swift Transportation for a Mexico to Chicago train and also with Schneider International for a service between Central Mexico and the US Midwest. These arrangements offer a daily link between San Luis Potosi in Central Mexico and call at Monterrey, Laredo, and Kansas City en-route to Chicago.
Mexico already has an established role in nearshoring, but it can be argued that the country already benefi@ed from the COVID-19 pandemic and concerns over China’s future role more any other country trading with the US.
A comparison of the share of US imports by country of origin for 2018 and for Q1 2023 confirms the country has taken some of the share lost by China, according to data provided by the US Bureau and shown in Figure 1. Here, China has seen its share fall from 21 per cent to 13 per with Mexico seeing an increase from 13 per cent to 15 per cent, which places it as the largest provider of imports into the US in Q1 2023. At the same Vme, Canada also overtook China’s the same quarter, recording a figure of 14 per cent, while Taiwan and Vietnam also recorded improvements, with both locaVons seeing the 2018 total of two per cent rise to three per the first three months of 2023.
However, the newly merged entity faces competition from Union Pacific Railroad, which has signed a deal with Canadian National and Ferromex to provide a joint service offering from Monterrey and Silao, Mexico, to Chicago and Detroit via Eagle Pass in Texas.
The actions of these North American Class I railroads indicates a belief in the potential for serving the US from Mexico and, in turn, supports growth in nearshoring activity in Mexico, with a specific focus on moving goods across the border and the ultimate aim of targeting the US Midwest and Chicago. The timing to take advantage of increased nearshoring from Mexico looks positive.
Of course, the Q1 2023 figure is only a snapshot and covers just one three-month period, bu endorse known trends suggesVng that China’s dominance in serving the US is slipping , while has an opportunity to increase its trade acVvity with the US.
Note: Data provided by US Bureau of Census, based on all imported acBvity. Remaining share aFributed to “others” QUANTIFYING NEARSHORING?
So, is it possible to quanVfy how much Mexico could benefit from nearshoring moving forward? terms of value, nearshoring has the potenVal to boost the growth of Mexican manufacturing
n Table 1: Summary of Rationale to Support Mexico as a Nearshoring LocationWith concerns over supply chain security one of the fallouts from the COVID-19 pandemic, a greater interest in nearshoring is a logical outcome…Figure 1: US Imports by Leading Countries of Origin, 2018 vs Q1 2023
Building from a one-country operation at the Por t of Manila in the Philippines, ICTSI has pressed forward across 35 years. On six continents, currently in 19 countries, we continue developing por ts that deliver transformative benefits.
All across our operations, we work closely with our business and government par tners, with our clients and host communities: to keep building momentum where it matters, in and through por ts that keep driving sustainable growth.
ARGENTINA AUSTRALIA BRAZIL CAMEROON CHINA COLOMBIA DR CONGO CROATIA ECUADOR GEORGIA HONDURAS IRAQ INDONESIA MADAGASCAR MEXICO NIGERIA PAPUA NEW GUINEA PHILIPPINES POLAND
Mexico’s two key Pacific Coast ports - Lazaro Cardenas and Manzanillo - are pushing on with major investments to meet new demand. Nearshoring also has the potential to accelerate growth elsewhere, A J Keyes maps the path ahead
n ICTSI’s Manzanillo facility is investing in additional container capacity and simultaneously launching new block-train initiatives. Manzanillo leads the way in accommodating Asian import trade
Mexico has two largescale ports on each of the Pacific and Atlantic coasts. Based on share of total container throughput in 2022, Manzanillo and Lazaro Cardenas on the Pacific Coast and Altamira and Veracruz on the Atlantic side account for 90 per cent of the national total. Ensenada handles the majority of the remaining throughput.
The size and make-up of the container port market in Mexico, up until end 2022, is highlighted in Figure 1 (overleaf), which details the development of container traffic at the four dominant ports in the country.
Lazaro Cardenas and Manzanillo are the major players on the Pacific Coast with much of Lazrao Cardenas’s annual volume made up of transshipment traffic and Manzanillo performing a stronger gateway role, handling in excess of 70 per cent of imports from Asia to Mexico.
Lazaro Cardenas in the period 2020-2022 saw a major uplift in transshipment volume but this year, to end September, has seen a 16 per cent fall in this traffic. Manzanillo in 2023, to end September, further consolidated its role in Asian import trade with this rising by four per cent compared to last year and by six per cent in terms of loaded imports. Manzanillo since 2020 has seen a noteworthy increase in Asian imports in the order of 50 per cent.
In overall volume terms, both Lazaro Cardenas and Manzanillo saw a drop in container throughput in 2020, due to their larger exposure to Asian trades, albeit that there was a recovery in both 2021 and 2022. This was particularly notable for Lazaro Cardenas which fell from 1.36 million TEU in 2019 to just 701,350 TEU for 2020 before a rebound to 1.69 million TEU in 2021 and 2.07 million TEU for 2022
Manzanillo’s rebound was strong with the 2022 total amounting to more than double the 1.51 million TEU handled in 2010.
Atlantic Coast ports did not experience such volatility during the pandemic period and while there has been some growth generated in total container volumes both facilities are seeing their respective shares of the “big four” traffic falling. In 2010, Altamira and Veracruz recorded 13 and 18 per cent, respectively, in terms of market share but for 2022 the numbers were just 10 per cent and 14 per cent.
The rising volumes at the Pacific terminals have largely been due to increased Chinese containers at the expense of San Pedro ports. This comprises traffic utilising Mexican gateways that is destined for the US, traffic supporting the increasing nearshoring activities in Mexico plus transshipment traffic.
Further, it is clear that in the future, goods sourced in Mexico will not just be from zones adjacent to the border but from a wider geographical range involving other regions. This will, in all likelihood, deliver increased opportunities for Atlantic coast ports.
The trend lines visible today clearly underline that port expansion is necessary to feed Mexico’s efforts to attract nearshore companies and to establish good supply capacity for them. Plus, at the same time, expansion is generally needed to support growing volumes, notably with Asia/ China trade and to service potential transshipment traffic coming from the West Coast of Central America.
The Pacific Coast ports are set to remain the major players with new investments consolidating this position, offering increased terminal capacity and improved rail connectivity.
More than US$322 million in public and private funding is being directed to a range of projects expanding cargohandling capacity at Lazaro Cardenas, including a new 32 acre yard for import-export of 7560 automotive units.
Included in the port investment is the US$140 million APM Terminals (APMT) is spending on its Phase II expansion plan. This will generate an additional one million TEU of annual capacity at the semi-automated terminal. The project will see the yard expanded by 15.7ha and the introduction of the Navis N4 terminal operating system. As a result, total capacity will be 2.2 million TEU per annum when it is fully operational in Q1 2026.
Rail is already a key component of this facility’s activities. There is direct connectivity to the APMT intermodal facility in Mexico City, reducing lead times for deliveries to this key market by almost five days compared to traditional road transport. This enables daily services connecting though all
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Kansas City Southern Mexico intermodal network, with capacity for building four full trains per day.
Also at Lazaro Cardenas, Hutchison Ports Mexico (HPM) has selected dexFreight to utilise its smart contracts and block train infrastructure to seamlessly and transparently organise container shipments at port terminals in Mexico. The programme was initiated at the port of Veracruz, an inland terminal in Hidalgo and in conjunction with Hutchison’s Lazaro Cardenas terminal with the ability to be rolled out to cover HPM terminals throughout Mexico.
Contecon Manzanillo (CMSA), the Mexican subsidiary of International Container Terminal Services, Inc. (ICTSI), is also employing and growing its block train linked services. The company is coordinating with CMA CGM and Grupo México to offer the first block train for Walmart de Mexico. The operation is part of the French shipping company’s third block train service in Mexico and serves as another milestone for CMSA, which recently obtained certification as North America’s first carbon-neutral port.
CMSA is also progressing its Phase III expansion project. As a result, capacity at the facility will increase from 1.4 million TEU per annum, on a phased basis, to in excess of two million TEU per annum within the next five years. This US$230 million investment covers upgrades to terminal infrastructure, storage yard and container-handling equipment. As a result, when the project is completed Contecon Manzanillo will be the largest container terminal on the Pacific Coast of Mexico.
There are also projects ongoing for a second northern access to Manzanillo for terminals handling agricultural bulk, mineral bulk, and hydrocarbons. This is all part of a longerterm plan involving investment of US$1.2bn from public and private sources and dredging of the navigational channel and other environmental works in the northern area of the port that have already been undertaken.
A number of terminals, operators and other stakeholders in the Port of Manzanillo have also created the Association of Terminals and Operators of Manzanillo (ASTOM), with clear aims of enhancing the competitiveness and efficiency of the port through improved connectively and greater optimisation and innovation.
The members are CMSA, along with Grupo Carrix – SSA, Ocupa, and Friman; Hazesa, Corporación Multimodal and TAP Terminals. More than 90 per cent of the activity at the port is facilitated by members of ASTOM.
Current ASTOM President, José Antonio Contreras, CMSA Chief Executive Officer, explains the group’s objectives in more detail: “Customers and users have given us their trust, and it’s our responsibility as an association to seek the constant development of the Port of Manzanillo, and with this, continue helping and accompanying Mexican foreign trade and its growth. We must continue to improve and grow, which is why the second northern access to the port is being built, and why we are expanding the capacity of the Specialized Container Terminal II by 40 per cent, among other investments.”
The planned development of infrastructure in Mexico’s ports, notably Manzanillo, is timely, with the recent arrival of CMA CGM Alexander Von Humboldt at CMSA. The 396m-long, 16,000TEU capacity ship is the largest to call to the facility and connects Asia and Latin America on the Asia Central
container throughput in 2022,
side account for 90 per cent of the na7onal total. Ensenada handles the majority of the remaining throughput.
The size and make-up of the container port market in Mexico is highlighted in Figure 1, which details the development of container traffic at the four dominant ports in the country.
Source: dataand.com
South America 1 (ACSA1) service.
Both Lazaro Cardenas and Manzanillo saw a drop in container throughput in 2020, due to their larger exposure to Asian trades, albeit that there was a recovery in both 2021 and 2022. This was par7cularly notable for Lazaro Cardenas which fell from 1.36 million TEU in 2019 to just 701,350 TEU for 2020 before a rebound to 1.69 in 2021 and 2.07 million TEU for 2022.
Manzanillo’s handling ac7vity followed a similar paWern, although volumes were higher and the drop less severe. Overall, the port has con7nued to increase its total container throughput, with the 2022 total more than double the 1.51 million TEU handled in 2010.
The importance of this ship calling is certainly understood by Contreras. “With the historic arrival of the CMA CGM Alexander Von Humboldt, Mexico is at the gates of a new era in maritime transport, increasingly larger ships that enhance economies of scale and cost optimisation. We have prepared for this moment in recent years, designing and sizing our terminal to be able to serve these ships. It is our obligation to ensure that Mexican foreign trade has competitive and efficient maritime logistics,” he stated.
Atlan7c Coast ports did not experience such vola7lity during the pandemic period and while there has been some growth generated in total container volumes both facili7es are seeing their respec7ve shares of the “big four” traffic falling. In 2010, Altamira and Veracruz recorded 13 per cent and 18 per cent, respec7vely, but for 2022 the numbers were just 10 per cent and 14 per cent
The position on the Atlantic Coast is less clear. The Veracruz Port Expansion Project continues to face environmental challenges, with the latest being filed by IDA (Interamerican Association for Environmental Defence) and Earthjustice with the Fifth District Court of Veracruz to help protect the Veracruz Reef System.
Mexico’s Pacific Coast ports are clearly leading the charge in preparing for future container demand growth with catering for Asian trade underpinning this. Increases in nearshoring activity have the potential to boost shipments including via the Atlantic ports to the major US markets to the north. At the same time, this trend has the potential to generate shipping options for more remote Mexican ports, notably Caribbean ports may benefit from shipping links to the US East Coast.
Mexico generally has entered an era of development with increased foreign direct investment being a major hallmark of this position. The country has to ensure that port and road and rail infrastructure is optimised in order to derive the maximum benefit from this – a challenge that is not new, but which today has grown in importance.
n Ever-larger ships are calling to Mexico’s Pacific Coast ports as witnessed by the recent call of CMA CGM’s 16,000TEU capacity Alexaander Von Humboldt at CMSA which has prepared for a new era of high-capacity vessel calls
n Figure 1: Development of Container Volumes at Mexico’s Four Major Ports 20102022, by TEUThe expansion of port capacity as part of efforts to secure large-scale nearshoring is seen as a priority by government
Manzanillo and Lazaro Cardenas on the Pacific Coast and Altamira and Veracruz on the Atlan7cFigure 1: Development of Container Volumes at Mexico’s Four Major Ports 2010 - 2022, by TEU
Argentina is building momentum with lithium exports – big things are expected – and the race is on to capture this cargo from the so-called Lithium Triangle. There are various gateway options – Rob Ward assesses the state-of-play
n Mining Lithium in Salta, North West Argentina where diverse mines are under development
Argentina goes to the polls for a new President this month (October) and freight and transport experts in the country are confident that the extraction and export of lithium, one of the world’s most valuable metals, will continue advancing apace no matter who wins.
The struggling South American country – facing rampant inflation of more than 100 per cent per year and various other economic hardships, leading to recent lootings – currently has the world’s third-largest reserves of lithium, with 2.2m tonnes, behind Australia (5.7m tonnes) and Chile (9.2m tonnes) and ahead of China (with 1.5m tonnes), according to figures from Mckinsey&Co. Argentine mines are mostly concentrated in the northwestern regions of Salta and Jujuy, close to the borders with Chile and Bolivia. Similar reserves in those countries help form what is known as the “Lithium Triangle” and Argentina currently has 40 sites being developed and two already exporting.
Lithium-ion batteries, of course, are a key and very valuable component to lightweight, rechargeable power for laptops, mobile phones and electric vehicles (EVs). EV companies throughout the world are willing to pay a high price to obtain a regular supply of the metal, often referred to as “white gold.”
Patricio Campbell, Vice President of the Centro de Navegacion, which represents the interests of various shipping groups in Argentina, notes that the development and exploitation of lithium in north-west Argentina could be a huge economic booster for his country and for logistics companies.
“Argentina has many problems just now, especially the weakness of the Peso, but lithium exports are like a beacon of light in this darkness, especially for our troubled province of Jujuy,” states the veteran Campbell, who is also the
president of ONE shipping line in Argentina. “Exports have already started and there is much more to come. Canadian and Chinese companies, especially, have been investing a lot in lithium and that is sure to increase, especially after the elections [Presidential] are concluded at the end of this year.”
Lithium extraction in Jujuy is particularly popular with mining companies because the state government there has been right of centre for more than 10 years [while the national government has been overseen by left-winger Alberto Fernandez for the past four years] and the rules allow for extraction to go ahead with far fewer royalties being paid than in Bolivia, where the national government runs the show, and in Chile where a mixture of private enterprise and state interests control and organise the lithium exports. In April of this year, Chilean private industry giants SQM and Albermarle were told to hand over some of their equity to state control.
Today freight forwarders in Argentina are servicing these two remote regions for both imports – various machinery and sodium carbonate (used for extraction) and exports of the unrefined lithium itself – via the ports of Rosario, Zarate and Buenos Aires as well as, to a lesser extent, La Plata. One major snag is that the Argentine deposits are a long trucking haul from the exit ports and the infrastructure in the two regions, especially impoverished Jujuy, is, to quote one shipping agent: “Absolutely terrible and in some cases nonexistent”.
“However, In the future we hope to open up transport corridors to the north Chilean port of Iquique,” says Carlos Marazzi, President of Yusen Logistics Argentina, a freight forwarder heavily involved in the Lithium transport business. “That would save a huge amount in time and logistics costs,
especially as the onboard ship time would be 37 to 42 days from Iquique to Shanghai instead of 42 to 47 days via Buenos Aires. Loading in Chile could save up to a week.”
Marazzi argues that the 1000km trucking haul to Iquique would be a vast improvement on the 1600 to 1700km to Buenos Aires trip, and that if another Chilean port, Antofagasta, can “get its act together” it could “in the future become Argentina’s lithium port of choice as it is only 600km away from Salta and Jujuy”. Another possible future advantage for Antofagasta is the existence of the SaltaAntofagasta railway line which passes over the Andes at 4220 metres (13,850 feet) at its highest point and could be utilised, with some investment, possibly from the Chinese plus regional governments.
One obstacle to “Argentine produced lithium” being shipped to China via Chile is that the government in Santiago has recently taken over the control of various lithium mines from the private sector and so might not want to be seen to be encouraging “cheaper logistics” for rival Argentine lithium. Another problem could be that the two passes over the High Andes – including La Polvarilla – can be closed for several months over the winter months (June to August in the southern hemisphere), although global warming has come to the aid of trans-Andean shippers in recent years with only a few days instead of several weeks lost to bad weather.
Yusen is one of three freight forwarders shifting the lithium from the two provinces to the River Plate for export, mostly to China, but also to various other destinations, including Japan, the US, UK, France, Mexico and India.
“Of the two lithium exporting companies, Minera del Altiplano sends its cargoes mainly to the United States, China, Germany and France. And Sales de Jujuy sends its exports to Japan, China, South Korea and the United States,” explains Maria Paula Torrejon, Business Development Manager for Yusen.
As for imports, the main product imported by lithium mining companies is sodium carbonate, which is used for the production of lithium carbonate. In 2022, 95,000 tonnes of sodium carbonate was imported, she adds.
Matias Gomez, a logistics manager at Yusen, says the company mostly trucks the lithium down to Campana where it is then stuffed into containers for shipments out of Terminal Zarate (located some 90km from downtown Buenos Aires). Yusen uses its own trucks for the automotive industry and third party providers for lithium, mainly truckers from the Salta and Jujuy regions as it wants to “help the suppliers in that region develop so we try and maintain those opportunities for the local companies”.
Roberto Murchison, President and CEO of Grupo Murchison, owners of Terminal Zarate (TZ), said that his box and ro-ro terminal has a geographical advantage over Buenos Aires in the race to grab lithium cargoes.
“I think Argentina, in spite of the macro-economic situation, is in a good position to exploit the lithium reserves and Terminal Zarate is in a very good position to help facilitate that,” says Murchison. “Due to our location to the north of BA and our railway connections we are a good partner for lithium exporters.”
Trucking cost pricing is very complicated because of Argentina’s current hyper-inflation and growing “Black/Blue market” on currency exchanges (Argentines call it the “blue dollar” which is the unofficial exchange rate). At the time of writing, Yusen managers were quoting a freight price of ARGPesos920,000 for a round trip (taking 36 hours each way) which would be US$2,628 at the official exchange rate of 350
to the greenback but half that at the blue dollar rate of 725: both rates of course are likely to change almost weekly.
In terms of trucking costs, the port of Rosario – where Maersk operates a feeder service - would have some advantages over BA and Zarate as it is 1200km from Salta and Jujuy (about 310 km closer than BA and 120 km closer than Zarate) but it is, essentially, a grain port and at times is beset by labour disputes.
THE CHINA FACTOR
China is of course at the vanguard of EV production and so its demand for lithium-ions to power up its batteries is almost unlimited. China is also very thoroughly engaged with several South American countries, and especially Peru and Argentina, via its international 10-year-old Belt and Road Initiative (BRI), and always seems to be on hand to provide cash when needed for infrastructure investments that serve its own interests.
From January to June of this year, China imported just under 8000 tonnes of lithium (both lithium carbonate and lithium chloride), from Argentina paying US$127.6m FOB for the privilege. In second place is the United States, with 2750 tonnes, followed by Japan, 2141 tonnes.
For the whole of 2022, 40,000 tonnes of lithium were exported, corresponding to 30,000 tonnes of lithium carbonate and 10,000 tonnes of its derivative, lithium chloride, which seems particularly popular with German importers.
Cosco, the Chinese shipping company, is currently investing US$3 billion on the deepwater port of Chancay, north of Lima, the capital and main city of Peru, and this could act as a main hub for lithium and other mineral exports to China, including transshipments up and along the West Coast of South America (WCSA) from Iquique and/or Antofagasta. Cosco told attendees at a port and shipping conference in Lima recently that Chancay would open for business in the third quarter of 2024 and when it does it could be a game changer for Argentina if logistics pathways over the High Andes can be negotiated, although clearly, the port terminals in BA and Zarate would lose some business with that scenario.
Argentina has many problems just now, especially the weakness of the Peso, but lithium exports are like a beacon of light in this darkness
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n For now PDP is making hay in the general cargo sector while congestion prevails in Callao but the rate of growth is forecast to level off this year
another and this seems to be the case in the general cargo sector in Peru, where Callao, the biggest port on the West Coast of South America (WCSA), has, over a two-year period, been losing shipments to Puerto de Paracas (PDP), some 230 km to the south, close to the city of Pisco (with 115,000 inhabitants and home of the classic cocktail, Pisco Sour).
Cesar Rojas, the Operations Director for PDP, says that the “severe congestion” in and around Callao and lack of political will to fix it from the Lima government, has created “opportunities to fill a vacuum and we have gladly filled it”.
At least they did for the past two years when Rojas estimates that more than 180,000 tonnes of cargo switched from Callao to Paracas in each year, helping to more than double its general cargo throughput from 1.36m tonnes in 2020 to 2.775m tonnes in 2022.
but for the past two years it has been receiving some “most unusual” shipments such as toilet rolls and diapers.
“A number of leading companies such as Suzano, the big cellulose producer, which supplies cellulose to Blue Chip companies like Kimberley Clark and Softys [a South American version of Kimberley Clark], need the cellulose pulp to make their products – such as Andrex toilet rolls and Kleenex, baby wipes and the like - and just cannot afford the delays that Callao suffered last year,” states Rojas.
He adds that if freight forwarders can find the right size break bulk cargo vessels then freight costs can sometimes be cheaper than via containerships.
Estenio Pinzas, President of the Peruvian Shipagents Assocation (APAM), says that many of his members, especially those with breakbulk interests, are complaining at the congestion at the port of El Callao (as the locals call it) and also about the emphasis on containers, and despite suggestions being made to the powers that be regarding corrective actions nothing seems to change.
“We are forecasting around 2.8m tonnes for this year but this time it will be with hardly any Callao cargoes transferring over to us,” Rojas told Port Strategy. “That is because the Peruvian economy is really struggling right now, with so many political changes [five Presidents in just three years], and on top of that our two biggest trading partners, the US and China, have both seen their economies cooling down and when those two big markets catch a cold here in Peru we always catch a severe cold too!”
Terminal managers at APM Terminal Callao see things a little differently and put most of the congestion down to “factors relating to Covid and post Covid” and see the defections to PDP as just a “temporary aberration”. (See following article).
PDP has always had its share of breakbulk and project cargoes, especially transformers, wind turbine and heavy vehicles for mining and other industries based in its hinterland,
“To be fair the lay-out of the port does not help,” says Pinzas. APAM takes the view that the port of Callao is hemmed in by the City of Callao, and that the chaotic road infrastructure is the main source of the congestion, but Pinzas nevertheless does feel APMT Callao could do more.
“For our country and for the City of Lima it’s very important to have breakbulk and project cargo but with the mix of cargoes that APMT (operator of the multipurpose terminal) has to deal with it is difficult. Sometimes it can take three days to unload/load a vessel and at times there are 20 to 36 ships waiting in the lanes.”
To handle the increased loads PDP has ordered an extra Liebherr Mobile Harbour Crane (a LHM 420 from Sunderland, UK), to add to the two LHM 550s it already deploys.
With the extra lifting capacity and plenty of quay space and draft (around 12 meters) the annual capacity for PDP is around 6.5m tonnes so there is plenty of capacity to pick up more overflows from Callao, if ever the congestion there becomes overwhelming again, declares Rojas.
‘One man’s gain is another’s pain’ as the old adage goes and this is the case with Puerto de Paracas which has made inroads into Callao’s general cargo traffic. But will it last?
Sometimes it can take three days to unload/load a vessel and at times there are 20 to 36 ships waiting in the lanes
APMT Callao has recently lost breakbulk cargo, principally due to congestion factors, but with new investment implemented is confident that it is back on track. Rob Ward reports
n Significant investments have been made in multipurpose cargo handling and storage systems including for ro-ro cargo
APM Terminal Callao’s management recognises that in its role as Peru’s leading general cargo terminal operator – it handles around 80 per cent of Peru’s breakbulk and solid bulk volumes – it has had a tough two years. But it is now convinced that the congestion problems which have made life difficult for it are now over.
This year volumes are down and so too is the congestion, with new equipment also easing the pain. Callao watchers say the multitude of different cargoes handled by APMT Callao hinders progress with consistently achieving high efficiency levels.
Ro-ro registered 166,688 vehicles during the first six months of this year, down from 186,672 for the first half of last year and break-bulk was 838,565m tonnes (down more than 60 per cent from the 1.4m tonnes for the same period of 2022. The full year figure for last year was 2.48m tonnes for break bulk, down from 2.82m tonnes in 2021, and 400,704 vehicles for ro-ro, up from 392,198 but some of the ups and downs are due to inventories rising and falling caused by Covid Fall-out as well as to congestion, and throughput is returning to preCOVID-19 levels.
With the Lima-Callao conurbation hosting 11.35m of Peru’s 30m population it is hardly surprising that the port of Callao dominates the country’s throughput.
Although its plans to invest and upgrade have been somewhat stymied in recent years executives at the terminal are still investing and might even be ready to go for an early renewal of their existing 30-year concession (12 years gone so far).
Javier Vidal, the Chief Operating Officer for APMT Callao, says that he is well aware of criticisms about congestion and
breakbulk cargoes fleeing Callao (see preceding article) but laid the blame mostly at the door of “difficult Covid and post Covid factors”.
“Globally the entire logistics chain had been suffering a lot and we were no exception,” Vidal tells Port Strategy. “Our concession includes the commitment to be open 24/7 and we kept that up throughout Covid, leading to a lot of pressure on our employees when many were off work, suffering from Covid. This reduced our capacity as did the well-known box shortages and logistics problems worldwide.
“Also this problem of lack of containers globally saw a lot of cargo move from boxes to breakbulk so more volume/ weight went into breakbulk and that consumed a lot of extra space.
“It was very strange as it is not common, in recent years, to see wood, tiles and the like in breakbulk and the strangest thing of all was seeing diapers, from Proctor and Gamble and other brands, being shipped in palettes.”
Vidal admits that there were some weeks where vessels were waiting in the channel for between 10 and 12 days and “some importers decided to move to Paracas to alleviate the congestion in Callao”.
He also acknowledges that the terminal had, indeed, been concentrating much more on developing the container side of the operations because that emphasis had been written into the original concession contract.
“Our concession from the government stated that most investments must go into containers as the government at that time thought that most cargo was moving into
containers,” Vidal underlined. “However, after eight years we have realised that not all cargoes will go to containers, and some, maybe, never will.”
To deal with the changes, the APMT Callao executive presented “an alternative plan to the government, suggesting there should be more investment into general cargo facilities.
“And then last year we signed a new Addendum with the government and we promised immediately to spend US$70m on upgrades,” enthused Vidal. “With a new continuous ship unloader, we have created 60,000 tonnes of bulk capacity for free flow cargoes, such as grain, and that has improved productivity by 40 per cent with a handling rate of 1300 t per hour.”
To further help deal with sudden surges in cargo APMT Callao has added four new Liebherr MHC 550s, three new E RTGs (it now has 15), as well as more Terex cranes. Also on the container side it bought a new super post panamax ship-to-shore unit from ZPMC and has installed 500 new reefer plugs (giving it 1800 in total).
Under the concession APMT also has to handle liquid and solid bulk cargoes, plus ro-ro at its 14 piers for general cargo.
For its part the government has told Callao port users, and APMT Callao, that they will soon trigger a concession for a large parking space for trucks, just five kilometres from the two key terminals: DP World and APMT.
Also, looming on the horizon for APMT Peru is new competition from Chancay, which is scheduled to open for business next year, and with some general cargo earmarked for that “future hub port” for Chinese carrier Cosco and possibly other operators. APMT Callao will face competition from north and south.
“Chancay will be a Gateway operation for sure,” observed Vidal, “but it will have some general cargo too, but this will be good for Peru when there are three big operators in Lima [referring also to DP World on the container side]. I believe rivalry and competition is good for everyone.”
The construction of the new Chancay Port, a 992ha mixed use project, in which COSCO Shipping holds a 60 per cent stake and Volcan, a subsidiary of Swiss mining company Glencore 40 per cent, has faced recent setbacks but is still advancing.
Chancay is located 67km north of Lima and on completion is designed to have an annual container handling capacity of 1.5m TEU and six million tonnes of general cargo with facilities also targeted for the export of copper and other minerals as well as agricultural products.
Works on the secondary breakwater have finished and the main breakwater construction is also nearing the finishing line. Reclamation and dredging works have begun in the basin and access channel for Pier 1 and the construction of docks 2,3 and 4 is also underway. Construction works encountered problems in May as a result of a landslide at one of the construction sites for the 1.8km tunnel that will provide access to the port – this caused the suspension of the related tunnel works with these reported, at the time of writing, as about to begin again. The project also continues to be the
The
n Flexing its container handling muscle APMT Callao recently handled the 16,000TEU+ MSC Chiyo the largest vessel to call at the terminal – 366m LOA and with a width of 51m
… we signed a new Addendum with the government and we promised immediately to spend US$70m on
In today’s rapidly evolving world of innovation, the introduction of digital twin technology has provided a game-changing tool for transforming airline operations and has huge potential for application with ports and terminals. Simon Miles, Head of AI, Aerogility, sets the scene
n Demand for model-based AI and digital twin technology will ramp up as the port sector realises the benefits to be attained
Digital twins grant ports and terminals the ability to create virtual replicas of their operations, unlocking unparalleled insights, efficiencies and AI-powered analytics to inform decision-making.
An enterprise digital twin can be created using software such as Aerogility’s model-based multi-agent AI framework. Here, ‘agents’ are used to represent the various components of an operation – things like equipment, processes and people.
Each of these agents follow specific rules for how they collaborate with others, similar to how team members have their unique roles. Moreover, there are factors that some agents depend on, which can place restrictions on what they can do at a given time. So, when you make a change that affects one of these agents, the technology ensures all other connected agents are informed. This prevents the presentation of strategies that might not actually work, guaranteeing decisions are sensible and practical.
Whether you are a port or terminal manager, traffic services operative or engineer, digital twins adapt to the needs of various stakeholders. The software’s versatility also applies to its usage: available as a fully hosted software-as-a-service (SaaS) through a standard browser or alternatively it can be installed on-site within a data centre, aligning with the port or terminal’s specific needs.
Multi-agent systems are an example of model-based AI, enabling businesses to explore hypothetical scenarios before making decisions that affect their organisation. Each AI model will contain a part it computes for itself and a part defined by the people who constructed it.
With model-based AI and digital twin technology, ports can play out a variety of scenarios and detailed simulations to examine and identify potential issues and make better
business decisions. For example, if a projection foresees potential delays in port maintenance due to the unavailability of certain resources, stakeholders can strategise and simulate the most effective course of action, ensuring they keep future operations working smoothly.
This proactive approach enables ports to predict and prevent potential challenges. Furthermore, situational awareness becomes a cornerstone of port management, allowing immediate identification of bottlenecks and inefficiencies.
Digital twins allow port managers to gain a holistic, forwardlooking view of their operations. By replacing error-prone linear spreadsheets with data-driven simulations, digital twins allow for efficient answers to complex forecasting questions. Furthermore, the siloed nature of knowledge within a few key individuals is dismantled, as insights become accessible to the entire team.
The integration of digital twins into port operations transcends traditional forecasting and planning methods. Ports and terminals can now confidently project costs related to maintenance, human resources and operational shifts. The agility of digital twins permit instant re-planning when circumstances change, ensuring that organisations remain adaptable and responsive. For example, if a port faces unexpected congestion due to weather disrupting shipping routes, digital twins can quickly simulate and implement alternative strategies. This enhances port management and efficiency by optimising resources and minimising disruptions. The same benefits are realised in conjunction with a terminal operation that has to adapt to late vessel arrivals.
Whether it’s short-term quarterly adjustments or long-term decade-spanning strategies, digital twins empower ports and terminals to make informed decisions with lasting impact.
Digital twins hold the promise of advancing sustainability within port operations. Ports can align their strategies with net-zero emissions goals by meticulously analysing their carbon footprint and optimising processes.
Efficient resource allocation, guided by data-driven insights, reduces waste and environmental impact, contributing to an era of greener port operations.
THE FUTURE AND AEROGILITY
Aerogility enhances planning and forecasting by building upon existing human knowledge and experience. It assists users in gaining a better understanding of the likelihood and severity of variables in the business in terms of financial impact. This scenario modelling results in realistic, secure and trusted planning that helps contain costs and reduce volatility.
Aerogility has been modeling the dynamic, high-stakes environments of civil aviation and defence for years. But its capabilities do not end there. The valuable insights gained from these sectors are seamlessly applied to the port sector. The platform excels at enabling planners and strategists to optimise operational effectiveness when dealing with
multiple assets and their many interrelated dependencies. As such, it can be used across many complex industries, ports and terminals included.
The potential of digital twins for ports goes beyond immediate benefits. As the technology matures, ports and terminals can expect a wave of sophistication that transforms their respective business sectors. Streamlined logistics become attainable through accurate real-time data, leading to improved resource allocation and reduced inefficiencies.
As ports and the business units in them continue to evolve into dynamic, data-driven ecosystems, we can expect to see a vast increase in demand for model-based AI and digital twin technology.
n The agility of digital twins permit instant re-planning when circumstances change
The siloed nature of knowledge within a few key individuals is dismantled, as insights become accessible to the entire team
n Port Esbjerg can triple its annual shipping capacity for offshore wind installations by deploying a digital twin
Digital twins are rapidly expanding within the ports sector. While a relatively new concept, digital twins – which are a digital representation of the physical port or terminalare a way for terminals to achieve increasingly stringent targets, from optimising operations, increasing efficiency and automating, to deploying clean fuels. The below company by company reviews highlight the traction that the sector is gaining right through from the launch of start-ups and the increased focus by established companies on creating digital twins to a range of pilots
and government-funded projects taking place in terminals. Many port sector companies have embraced the digitalisation trend, deploying real time data solutions to boost their efficiency and decarbonisation efforts. Maritime data solution company Sinay underlines that digital twin technology is the “logical next step”, taking complex data and making it comprehensible, and therefore enabling ports to act on it. A key component of the ‘smart port’ concept, as the below records, ‘digital twin’ is not just a buzz phrase but has real meaning.
See previous article in which the company notes: “The potential of digital twins for ports goes beyond immediate benefits. As the technology
Israeli-based start-up DockTech has launched digital twin technology to help improve freight movement throughout the global port system. DockTech offers the real-time status of waterway conditions, leveraging artificial intelligence (AI) and dynamic data, by creating a digital twin. By collecting and aggregating dynamic data from existing sensors located on tugboats and harbour vessels, the company can show real-time operational insights about the
DSP Talumis B.V developed its first product in 2021: the GEMINI digital twin. The company was born from the synergy between DSP Data and System Planning SA, Switzerland and Talumis B.V., the Netherlands.
matures, ports and terminals can expect a wave of sophistication that transforms their respective business sectors.”
waterway concerned. Some of the benefits DockTech is said to deliver for ports include a reduction in dredging costs by helping decision makers understand both when and where they need to survey and when and where they need to dredge in order to reduce maintenance interruptions. The digital twin also has a role in critical decision making regarding draft restrictions. More than 25 ports are using DockTech solutions, including those in Brazil, Colombia and the US.
GEMINI is a digital twin capable of mirroring decisions and strategies of container terminal operating systems’ (TOS) algorithms and modelling all other sub-systems’ behaviour and worker practices during real operations. A modular
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solution, it provides data analytics and forecasting, resource demand and TOS algorithms optimisation. The company says that it enables operators to predict and measure resource capacity and demand, allowing them to avoid over or under allocation of resources. The company joined forces
n Ericsson: Ericsson has worked with partners in the maritime industry to improve efficiency since 2016. One of these projects involves Italy’s Livorno port terminal, which now serves as an experimental area covered by a live 5G network. The data collected through 5G feeds a digital twin engine, developed and deployed by Ericsson, which provides a virtual replica of the port area in real time. Having the port area and the general cargo freight cloned in the digital twin makes it possible to provide operators of the terminal with smart virtual reality (VR) and augmented reality
n GE Vernova: GE Vernova’s Power Conversion business, as part of the UK’s Clean Maritime Demonstration Competition, has been working on reducing emissions at ports by helping to manage power and energy more efficiently. With project partners PD Ports Ltd, Connected Places Catapult and Teesside University, Power Conversion’s cloud-based, integrated digital concept aims to improve situational awareness on energy supply and demand. PD Ports’ data
n GISGRO: GISGRO was formed on the back of noticing that customers were struggling to use 3D data when it was formerly surveyor VRT Finland Oy. The company realised that its customer ports did not have suitable systems or the expertise to use the data. Therefore, GISGRO was established and its solution was a visual digital twin. As well as a visual and intuitive user interface, GISGRO wanted to develop a cost-effective SaaS software for all sizes of ports and terminals, which was easy and quick to deploy and use even
n Huawei: Huawei announced plans earlier this year to collaborate with Tianjin Port Group to build a digital twin of the Chinese terminal. This cooperation builds upon the two companies’ existing partnership, which has boosted the port’s digitalised and automated processes. Tianjin Port
n IOTICS: Portsmouth International Port announced in September this year that it has been awarded £19.8 million from the Zero Emissions Vessels and Infrastructure Competition, funded by UK Government to embark on the SEA CHANGE decarbonisation project. At the heart of it is the digital twin concept, created by IOTICS and its partners. The SEA CHANGE project will design, build and operate a shore power system across the three busiest berths at Portsmouth International Port. The digital twin will interoperate existing and emerging data from the port and its activities and gather
n Moffat & Nicholl: In January this year it was announced that Port Esbjerg, Denmark had commissioned a digital twin for deploying offshore wind installations. By using the digital twin, the port can triple its annual shipping capacity for offshore wind installations from 1.5 GW to 4.5 GW within three years. “This means that we can increase the pace of the green transition because we use the space we have more efficiently,” says Dennis Jul Pedersen, CEO, Port Esbjerg. Ports and maritime engineering consultancy Moffatt
n Sinay: Sinay has partnered with Canadian technology and software company 3D CityScapes to create hyper realistic digital twins and interactive 3D environments for ports and the maritime industry. 3D CityScapes offers the digital twin as
with Cosco Shipping Ports (Spain) Valencia Terminal to cooperate in building the digital twin. Gemini Predictive Analysis supports the port operation’s decision making in resource assignments and analysis results. GEMINI is also used by DP World as an online tool for yard planner training.
(AR) applications. The VR application allows operators to virtually navigate inside the digital twin model. Ericsson has also deployed a specific algorithm which makes it possible to achieve an automated and optimal sorting of freight and enable a quality check by inspecting the storage area and yard virtually from a remote site. This pilot is expected to bring significant benefits including a reduction in the average execution time of moving an object with a forklift as well as a decrease in the unloading/loading times of a general cargo ship.
has enabled the team to create operational scenarios to carry out testing using an emulated digital twin platform. Andy Cooper, UK Managing Director, Power Conversion, notes: “Industry is investing in ‘clean ship’ and ‘clean port’ technology readiness, but it’s really important we work with customers on their operational needs if the path to net zero is to be viable.” Digital energy management is part of Power Conversion’s range of port electrification solutions.
for non-technical employees. All information recorded or integrated on GISGRO, plus the sensor data, can be found by clicking a ‘real-world’ geospatial location on the online digital twin. With lean visual management, teams can provide a situational view of processes and communicate information across departments. GISGRO sums up: “By making information more visible, teams work more efficiently and with fewer human errors.” From its launch in 2010, in 2023 GISGRO is now in use in 50 ports in around 12 countries.
Second Container Terminal has used Huawei’s Smart Horizontal Transportation Solution to build a smart port powered by 5G and L4 autonomous driving. The digital twin can build upon the solution and 5G telecommunications structure being deployed.
information from the working hydrogen electrolyser. This data will be leveraged to enhance and optimise operations with decision-support tools. Sophie Peachey, Head of Customer Success, IOTICS highlights the digital-twin approach in the project: “We will be looking at the business case for deploying renewable and clean fuels as well as the logistics of how onshore equipment and sea-going vessels will be refuelled around the ongoing operations of a busy port.” IOTICS was founded in 2012 and provides interoperable technology, including digital twins.
& Nichol developed the digital twin, which is fed data on everything from upland storage space and berth characteristics to the port’s experience with shipping offshore wind installations gathered over the past twenty years. The programme then runs modelling simulations with variables including on and offloading times and weatherinduced down times. Moffatt & Nichol has also developed digital twins for other port processes elsewhere, such as container transport.
a component to Sinay’s technology and sensor data information. Sinay’s data is represented on the interactive digital platform created by 3D CityScapes, providing ports with a real time visual platform.
Date: 05 October 2023
Bid Reference No. OIB/CHC/DISP/STS/01/2023
Description: DISPOSAL OF THREE SHIP TO SHORE (STS) CRANES & Associated Spare Parts
1. The Cargo Handling Corporation Limited (CHCL), located at Mer Rouge, Port-Louis, Mauritius is inviting bids from eligible candidates for the DISPOSAL OF THREE SHIP TO SHORE (STS) CRANES of make HANJUNG.
2. Interested eligible candidates may obtain further information at the address provided below. The STS cranes will be sold on an as is where is basis, without any encumbrances.
3. Interested bidders may inspect the goods to be sold during office hours 10 00 Hours to 15 00 Hours from 18 October 2023
to 26 October 2023 at the Mauritius Container Terminal, Mer Rouge, Port-Louis, Mauritius. All costs to be borne by bidder.
4. Bidding Document may be viewed and downloaded for free from CHCL’s website www.chcl.mu.
5. Clarification may be addressed to the Officer in Charge via email address: quoteclarifications@chcl.mu
6. Bidders are required to submit a bid security as indicated in the Section I. Instruction to Bidders.
7. All bids, in one original plus two copies, properly filled in and enclosed in plain envelopes must be mark as follows: DISPOSAL OF THREE SHIP TO SHORE (STS) CRANES – HANJUNG Bid Reference No. OIB/CHC/DISP/STS/01/2023
“Do not open before 13 30 Hours on 06 November 2023”
8. Bids must be deposited by courier/post or hand in the Tender Box, located at CHC Building, Mer Rouge, Port-Louis, Mauritius
before 13 30 Hours (local time) on 06 November 2023. Bids submitted by email will not be considered.
9. Bids will be opened promptly after 13 30 Hours (local time) on 06 November 2023 at CHC Building, 2nd Floor Board Room, Mer Rouge, Port-Louis Mauritius. Bidders or representative(s) of bidders may choose to attend the bid opening.
10. Bids submitted after the deadline for submission will be returned unopened.
11. The Cargo Handling Corporation Limited reserves the right to accept or reject any bid and to annul the bidding process and reject all bids at any time prior to award of the Contract, without thereby incurring any liability to any Bidder.
CHC Ltd
05 October 2023
n Kalmar’s new generation anticollision system, launched in May this year, is purpose-designed for installation on its manually operated straddle carrier range
Growing levels of automation and the handling of increased cargo volumes mean that collision prevention technology is more important than ever for port operating units. All areas of a terminal require protection against potential collisions, from avoiding a clash between a ship-to-shore crane’s boom and the superstructure of a ship to between cranes, to protecting straddle carriers, reach stackers, empty container handlers and other lifting equipment from collision. ZoneSafe points out that obstructed views and blind spots are a common problem for drivers
of vehicles such as large reach stackers, making it difficult for them to see workers or other obstacles in their vicinity, thereby increasing the risk of accidents. The growth of automation in ports means that port operators require an increasingly high-level of sensing technologies to prevent collisions. But manually driven equipment also needs anti-collision measures due to the ever-present risk of human error. As well as reducing loss of life, injuries and protecting against equipment damage, anti-collision solutions can cut costs and boost efficiency.
n Kalmar: In May this year Kalmar, part of Cargotec, launched a collision warning system for its manually operated straddle carrier portfolio as part of its commitment to “safety-first design”. The system is available as an optional add-on for new machines and as a retrofit upgrade for existing machines. Kalmar explains that it increases safety by providing the driver with both visible and audible warnings when there is a risk of collision, providing more time to react to potential hazards. The warnings help to prevent or reduce the severity of collisions and also reduce stress on the driver by helping them to
n LASE Industrielle Lasertechnik: Laser-based sensor application company LASE has boosted its terminal anticollision systems after signing a multi-year supply agreement with Ouster to automate and retrofit container terminals and their cranes with 3D digital lidar sensors. The agreement, announced in March this year, includes a binding commitment for several hundred Ouster OS sensors through 2025. LASE says that it plans to offer new solutions using Ouster’s 3D digital lidar sensors to increase and enhance the capabilities of its existing and new installations. LASE is typically equipping
remain alert and attentive at all times. In addition to detecting obstacles in the machine’s path or blind spots, the system also warns the driver if the spreader (whether empty or laden) is too low when the machine is approaching a container stack. The driver remains in full control of the machine at all times. Jeroka Alanko, Senior Manager, Product Management, Kalmar, sums up the advantages: “The collision warning system will help our customers to make machine operation safer and improve overall terminal safety as well as reduce repair costs and extend equipment lifetime.”
gantry cranes and other port equipment with two or four Ouster OS1 sensors for precise position measurement and object detection to enable the safer autonomous or semiautomated handling of containers. This digital lidar-based solution supports collision avoidance between handling machines, people and other port equipment. The highresolution and wide field-of-view of Ouster’s sensors enables LASE to reduce the number of sensors currently required on an installation while increasing the coverage area and overall system performance for equal or less cost.
n Lehnert Crane Intelligence: Lehnert Crane Intelligence’s LENNIX® Pro is a control and regulation system which enables ship-to-shore gantry cranes to position their loads quickly and reduce the risk of collision. The company, which manufactures control systems for cranes, says that its solution “independently eliminates the unavoidable oscillations that occur while the crane is in operation,” as well as easing the crane operator’s job and supporting inexperienced operators while facilitating the automatic positioning of the crane. The danger of collision is therefore
n Mi-Jack: The Mi-Jack Anti Collision System prevents suspended loads above vehicles and people, which, the company says, increases the “safety, reliability and availability of the complete automation solution”. To avoid a decrease in terminal efficiency, the Mi-Jack system allows parallel operation between fully automated equipment and personnel in the same working environment. An interactive digital twin of the terminal shows all object positions for the
n Navtech Radar: Designer and manufacturer of commercially deployed radar solutions Navtech Radar says that its industrial grade sensors provide anti-collision detection in all weather and light conditions for automated ports. Navtech Radar sensors can be fixed to current infrastructure and integrated with existing systems. They are reportedly quick to install with low power requirements and are designed to be maintenance free for 10 years. The sensor, which has a compact design and a 360-degree field
n Rombit: Rombit’s Collision Avoidance solution not only includes a proximity detection system to safeguard workers from collisions, but its real time monitoring and analytics platform provides insights on near-misses and unsafe behaviours. The company explains that because every vehicle is continuously monitored and tracked, comprehensive data is collected, including information on driver behaviour. “Speeding, sharp turning, lane crossing, excessive acceleration or braking, … factual data
n SICK:Global sensor manufacturer SICK has developed what it calls a “super-tough” radar sensor for collision avoidance duties in challenging industrial environments such as for cranes in container ports. SICK has developed a new platform for anti-collision radar sensor technology and the SICK RMS1000, launched last year, is the latest release in this product family. The radar sensor uses 61GHz
n Siemens:Siemens Load Collision Prevention System (LCPS) reduces the risk of collisions by assisting drivers with blind spots on manually operated cranes and supporting automated moves with automated cranes. Safe distances are monitored in real time to avoid collisions and therefore reduce the risk of damage and consequent repair costs. Dynamically adjusted safety distances are monitored and integrated into the drive and control system, which
n ZoneSafe:ZoneSafe’s Proximity Warning Systems reduce the risk of accidental vehicle collisions within ports. They use sensors and alerts to detect and warn port operators of potential collisions with personnel, vehicles, or other objects in their vicinity. A detection antenna - using Radio Frequency Identification (RFID) technology - is fitted to the vehicle creating a 360-degree invisible detection zone around the vehicle and will sense ZoneSafe tags up to ten metres away. An in-cab control unit is also fitted to the vehicle within the operator’s reach. The ZoneSafe control
reduced because the spreader hangs steadily at the end of every crane transaction, each time. The desired speeds that are set by the crane operator in the manual operation mode are controlled by acceleration and braking processes so that swaying movements that occur during operation and after stopping are automatically eliminated. This, in turn, enables a quick positioning of the load. The controller includes torsional vibration damping. Trim, list and skew cylinders are used to calm down the torsional vibrations of the spreader during handling operations.
purpose of asset tracking and basic trouble shooting. The Crane Collision Avoidance System is the “core safety component”. The sensor fusion of Mi-Jack’s GNSS and RFID technology system prevents the crane trolley from moving over any vehicle or personnel. Cranes, vehicles and even personnel are tracked, and to avoid collisions, halos are generated around them. When overlapping, the crane is prompted to stop.
of view, differentiates between machinery or debris and dangerous obstacles, leading to a low false alarm rate. “Alarms are only raised when true collision threats are detected. This increases operator confidence in the system,” says Navtech Radar. Operators can work in a small cabin close to the ship. The radar can scan the area the loader is operating in and easily identify any potential risks or movement from the ship. The long detection range means the sensors are suitable for port automation on large sites.
on individual driving behaviour feeds directly into driver coaching and ultimately a safer, more efficient worksite,” says Rombit. Furthermore, the always-on location tracking of every vehicle allows for the visualisation of traffic density. This can expose unknown high-risk areas, prompting preventive measures. Real-time and continuous tracking can provide precise data regarding the number of incidents, their locations and the personnel involved in near misses.
FMCW (Frequency Modulated Continuous Wave) technology to detect obstacles up to 100m away in up to four monitored areas simultaneously, as well as to determine distance and radial speed. The SICK RMS1000 is a 1D radar sensor, the first in a roll-out of radar sensors on the new platform, which will see 2D and 3D models launched in the near future.
monitors the position of the spreader and the load. When an obstacle is detected, a virtual speed-dependent safety box dynamically restricts motions according to defined safety margins. To reduce the risk of colliding towards the stack, the sway prediction is taken into account. With this smart pendulum calculation, LCPS considers the residual sway and the stack gradient to define the safety margins around the load.
unit is positioned next to the driver inside the vehicle, while personnel working in the area wear active RFID tags. When tags are detected by the antenna, an alarm sounds. The tag will also vibrate (when Vibratags are used), warning of any approaching vehicle. When the detection zone is breached, an audible/visual alarm alerts the driver of pedestrians in close proximity. ZoneSafe’s customers include APM Terminals in Callao Port, which fitted the Vehicle to Person Alert Application to reach stackers to improve safety and awareness.
An increase in over-sized cargo and the need to handle this as safely as possible is steadily increasing demand for overheight frames. Overheight frames have been designed to improve productivity, speed up operations and significantly increase the safety of stevedores when handling open top containers, flat racks and over-sized cargo in general. Rafael Moragón, General Manager, Tec Container, confirms: “Overheight frame use has definitely increased in container terminals. The reason is that safety is a priority in ports and when safety is a priority you cannot permit the use of chains or other lifting apparatus.” Added to this, as Moragón says, an
increasing number of container terminals are accepting over-sized cargo and “they have to be ready for this kind of ‘out of the box’ operation with the proper equipment”. A key trend within the sector is the rise of the fully automatic over height frame offering benefits spanning the safer handling of goods, greater effi ciency in handling and minimum downtime for maintenance. The company product reviews below highlight the wealth of innovation in the sector including the provision of systems with a lightweight construction for over-height attachments thus allowing a maximum payload capacity.
8 Bromma: Spreader manufacturer Bromma says that its OSR45 is a telescoping overheight frame that provides “automatic, fast and safe handling combined with low maintenance time and costs”. OSR45 can be delivered in a 20-foot container. OSR45 is an automatic telescopic 20-to-45-foot overheight frame to be used together with different Bromma or OEM parent spreaders in cranes, reachstackers or straddle carriers for safer and faster lo-lo -handling of flats, bolsters, ISO containers or overheight containers (with cargo extending up to 2500 mm above the corner pockets). The OSR45 Overheight Frame is attached under any parent spreader with a ISO standard base
measure and equipped with matching overheight frame lifting lugs. The cargo is lifted by the twistlocks of the spreader, which act as extended legs to the spreader. Bromma states this means the “much faster and safer” handling of goods compared to using chains. As the
8 SHT-Lifting: SHT-Lifting says that its automated overheight frames were a “world-first” when introduced to the market and have been designed for “rough” operating conditions. The company, which has been in business for 20 years, offers a fixed automatic SHT Overheight Frame (OHF) / Overheight Spreader and a Telescopic Overheight Frame (TOF). The company explains that its overheight frame system is supplied solely by the torque of the master
8 Timars: Highlighting the growing trend for terminals to electrify their equipment to meet green and energy efficiency goals, Timars offers a fully electric overheight frame spreader, Timars OHE. Operated by an internal 24V system, the frame is equipped with a smart power saving system which means that it will not drain the batteries during normal use and is able to keep loaded purely by solar panels. Timars, a Swedish manufacturer and supplier of port equipment, says that safety is a major focus, and therefore its solution offers a range of built-in safety features. Timars elaborates: “The Timars OHE frame is an intelligent tool that helps the operator to take control of some possible external errors, such as: parts that partly block the inside of the corner casting; shew corner castings and the frame resting on one or several twistlocks.” Safety systems include: a safety twistlock blocking system, whereby landing probes prevent the overheight frame from locking the twistlocks unless the frame is landed correctly. Each landing probe is verified by an inductive sensor (IFM). There is also a Safety Torque Limitation system, whereby if one or more twistlocks are prevented from locking, the twistlock will go back to the original position. A Safety Twistlocks Emergency System means that each twistlock can, when the frame is resting on its goods, be manually turned by hand, or if slightly jammed by a standard tool.
8 Tec Container: Founded in 1976, Tec Container provides lifting solutions to the port industry and has produced around 500 overheight frames during the last 25 years. The company offers four overheight frames, with its most advanced frame the fully electric BA-030E, which is recommended for when oversized load traffic is intense. Tec Container reports that it has sold 350 of its fully automatic and electric BA-030E frames, since it first entered the market back in 2009. The BA-030E is a fully automatic attachment for spreaders designed for handling oversized containers, flat racks and platforms. This model is universal and compatible with any ISO spreader. The twistlocks are locked and unlocked automatically by means of a fully electric mechanism. Its recharge system features four solar panels. Highlighting the benefits, Tec Container underlines: “Thanks to its low power consumption, it has unlimited hours of continuous autonomous operation.” It is equipped with a Wi-Fi connection module, allowing operators to know, in real time, about parameters including sensor lights and battery levels, and it enables the twistlocks, night mode and emergency shutdown to be activated remotely. In February 2019, Tec Container supplied eight BA-030E5T overheight frames to Terminals I and II operated by DP World in Jebel Ali – Dubai. This comes on the back of seven units supplied in 2014. The new models include improvements that the terminal proposed such as a double security pin, new
spreader telescopes, the overheight frame telescopes simultaneously, allowing the unit to handle 20-, 30-, 40and 45-foot containers with overheight cargo. The OSR45 Overheight Frame is mechanically operated and requires no power supply or hydraulics.
spreaders’ twistlocks and can be handled as a universal container. The telescopic frame is extended by the force of the spreaders. A focus on safety means that the movement of the twistlocks is only possible if they are correctly aligned, while all four safety pins have to be pushed in simultaneously. Manual emergency operation without spreaders is possible for all of the twistlocks together or each one separately
n Timars’ fully electric OHE frame is described by the company as an ‘intelligent tool’
The Timars OHE-frame has two short side profiles and one centre beam that are bolted together and are telescopic from 20ft up to 45ft (40ft is pre-set). The body has gone through Finite Element Analysis to optimise the construction to make it “strong but yet light”, said Timars. The OHE frame can be equipped with a modem for wireless communication with port engineers (or to Timars). Benefits include being able to access information about condition of the batteries, number of TEU handled, time in operation and error messages.
temperature sensors and indicators on the battery level. Additionally, the units that have been working since 2014 in the terminal were updated to the new version of the V5 software, which allows greater efficiency in the use of energy. Other overheight frames provided by Tec Container include: the BA-030R, a fully mechanical frame; the BA-030H, a fully mechanical and universal frame and the manual BA-030M.
n There is a greater take-up of specialised attachments to handle cargo that extends beyond the normal container profile
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D-50181 Bedburg
Tel: +49 2272 90531 100
Tel: +49 2272 90531 100
Email: info@sanyeurope.com
Email: info@sanyeurope.com
www.sanyeurope.com
www.sanyeurope.com
Sany ID.indd 1 25/01/2022 11:42
VISYOy
VISY takes pride in solving operational problems, specialising in gate automation and access control solutions in ports and terminals. Their solutions streamline processes resulting in saving money and increasing productivity.
Visy systems reduce expenses, optimize safety & security, and increase throughput capacity via process automation. Our singleplatform gate operating system and OCR solutions manage all cargo, assets & personnel movements via quay, rail or road to keep operations moving.
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Contact Arrate Landera +44 1329 825335
www.portstrategy.com
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
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
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
The world leading manufacturer of Sideloaders, self-loading semi-trailers for versatile & efficient container handling.
www.hammarlift.com
info@hammarlift.com
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
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
Solvo Europe B.V.
Solvo’s software solutions such as TOS or WMS help container and general cargo terminals take full care of their cargo handling processes and make sure the clients expectations are exceeded.
Prinses Margrietplantsoen 33, 2595AM, The Hague, The Netherlands Tel: +31 (0) 702-051-709
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
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MAFI
Specialised in the development and production of heavy-duty equipment for transporting containers, semi-trailers, cargo/roll trailers and special container chassis in ports and industry.
Hochhäuser Str 18 97941 Tauberbischofsheim,
Promote your business to the right audience in the right place at the right time. Engage with our international audience of decision makers and buyers. The Port Strategy multi-media platforms offer our commercial partners a wide range of opportunities for campaign delivery. We provide bespoke marketing packages with quantifiable ROI.
Port Strategy’s valued content is dedicated to the international ports and terminals business and is delivered through multiple channels.
The word greenwashing has risen from a rarely used word to one in common usage today. What does it mean? In common parlance, greenwashing is widely understood to be the exaggeration of a company’s environmental credentials or to put it more crudely bigging up such credentials through marketing spin or media hype.
There are, however, three specific categories of greenwashing identified by Business for Social Responsibility (BSR), the consultancy and business network whose actions are founded on creating a world in which all people can thrive on a healthy planet. These three categories of greenwashing sit around the base line of Effective Environmental Communications as can be seen in Table 1.
The categories shown in Table 1 very effectively cover the whole spectrum of greenwashing and perhaps even more significantly signpost a certain lack of real commitment to achieving decarbonisation efforts against an agreed timeline.
It is then not so surprising that a large dose of scepticism about companies’ Environmental, Social and Governance (ESG) credentials was identified as
CATEGORY #1: EFFECTIVE ENVIRONMENTAL COMMUNICATIONS
CATEGORY #2: MISGUIDED GREENWASH
Effective communication and good environmental value
Poor communication, some environmental value
one of the key findings of a recent UK survey of the subject among 2072 business leaders, entrepreneurs and marketing professionals. Specifically, key findings were:
n More than a third (36 per cent) said that messages supporting ESG credentials had “no effect” on them whatsoever.
n Seventeen per cent said they questioned the validity of ESG claims made by businesses.
n Just 16 per cent said that they look more favourably on those who regularly share updates on their environmental and social responsibility initiatives.
The survey’s originators, Bath-based Clearly PR, notes: “…the extent to which many businesses are talking about their ESG credentials has become frenzied.” And that: “This is clearly alienating many customers…” plus “There is, it seems, too much banging on the green and purpose drum and there is evidence to suggest that customers view excessive ESG communications as hyperbole rather than authentic. As such, in many cases, they have either become immune to the ESG messaging emanating from businesses or distrusting of their validity.”
Sustainability is built into a business’s strategy and core mission statement. Every organisational process and operation is considered, challenged, and improved to reduce an entity’s environmental and social impact. Efforts and successes are then communicated accurately using an evidence-based approach to back claims made. These brands operate as green leaders.
In this instance, corporate greenwash is not used intentionally but is rather the result of ineffective communication that undermines the substantial efforts made to improve a company’s environmental performance. Most often, misguided greenwash includes the use of sweeping generalisations, using terms such as natural, eco, or environmentally friendly with the absence of data to back these statements up. A revised communication strategy is needed here to deliver data-driven and focused marketing messages.
CATEGORY #3: GREENWASH NOISE Poor communication, poor environmental value
These are companies who try to shout louder than their competitors about how green they already are. These brands spend more time and money presenting themselves as green relative to the actual time and money spent on making a change and becoming more sustainable. Much work needs to be done to move these brands into the Effective Environmental Communications category, but this is possible by:
1. Addressing the brand’s environmental impact through the value chain.
2. Developing and implementing an effective environmental strategy.
3. Communicating environmental efforts accurately using a scientific, data-driven approach.
4. Achieving third-party certification.
CATEGORY #4: UNSUBSTANTIATED GREENWASH
Source: Green Business Bureau
Effective communication disguises poor environmental value
These brands are involved in positive environmental projects and provide data to back up their claims. However, these claims mask a company’s damaging environmental impacts. Brands that fall into this category cause the most harm to the environment because their behaviour could lead to public disillusionment and disengagement from the environmental debate.
n Table 1: Environmental Classifications in Conjunction with GreenwashingThree categories of greenwashing are identified: misguided greenwash; greenwash noise and unsubstantiated greenwash
Powering shipping’s emissions-cutting ambitions
Keynote panel topic: The cost of decarbonisation & who is going to pay?
Topics to discuss with the keynote panel will include carbon levy funding, funding for investment, national incentives, funding for new technology & hypothecation.
Gain insight from industry experts on:
Fuel and retrofit solutions for 2030 Safety challenges for new technology
LNG beyond transition
Ammonia / Methonal / Liquefied hydrogen
Carbon capture
Advances in lubrication
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Meet and network with 200 CEOs and technical directors from ship owning, operating and management companies, and senior executives from classification societies, policy makers, shipbuilding, fuel, equipment and technology suppliers.
Visit: motorship.com/PFFBOOK
Contact: +44 1329 825335
Email: conferences@propulsionconference.com
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