Dry Bulk Autumn 2021 by PalladianPublications

AUTUMN 2021 - VOLUME 6 NUMBER 3

Stacker/Reclaimer (1973) at the former Coal Mine „Zollverein“, Essen/Germany UNESCO World Heritage

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CONTENTS 03

Comment

News

Bulk Carriers & Shipping Services

Regional Report 10

A Story Of Bulk

Emily Hannah Stausbøll, BIMCO, Denmark, provides a dry bulk shipping market analysis, considering European grains, fleet news, and presenting an outlook for the coming years.

Commodity Review: Minor Bulks 16

The Smaller The Better

Felipe Simian, Nachipa, Chile, explains why minor bulk cargoes are the future in a time where decarbonisation and green solutions are becoming increasingly important.

Conveyors & Dust Control 19

Following The Freight

Can’t Stop The Cargo

Maria Bertzeletou, The Signal Group, Greece, provides a review of fundamentals for the main bulker ship sizes. Peter Hirthe, Great Lakes St. Lawrence Seaway Development Corporation, USA, details the binational maritime gateway and the technology utilised to keep cargo moving safely and reliably.

Cranes, Grabs & Shiploaders 42

Always On The Move

Carl Donnelly, Telestack, Northern Ireland, explains how the launch of a new shiploading solution has opened up a host of mobile possibilities for those operations with a narrow jetty.

Rail, Barge & Logistics

What’s In Your Sandwich?

Amy Duncan, Dos Santos International, USA, details a recent installation of a high-angle conveyor at a port to easily move materials for export.

Focus On The Drive, Not The Destination

Dr. Heinz-Peter Ehren, KUMERA Getriebe GmbH, Germany, describes how a customised gearbox solution can increase reliability and reduce energy costs.

David Przednowek, CN, Canada, provides an overview of the evolution of the grain supply chain in western Canada.

Storage, Stockyards & Silos 49

Sustainable Silo Manufacturing

Don’t Jump To Assumptions

A Misty Plume To Beat The Dust

Mike Lewis, BossTek, USA, details dust management in bulk material handling operations, specifically looking at atomised mist.

Leading The Charge

Fernando Luengo, Symaga, ASM South East Asia, explains how to improve the sustainability of silos, from producing and consuming renewable energy on-site, to storing renewable fuel feedstocks. Bernard Serote (South Africa) and Bheki Nkomo (Kenya), Qnum, discuss how bulk stock surveyor assumptions can be responsible for compounding inventory shrinkage problems.

ON THE COVER

AUTUMN 2021 - VOLUME 6 NUMBER 3

SCHADE Lagertechnik GmbH (member of the AUMUND Group for 20 years and celebrating its 140th anniversary this year) is a leading supplier of highly specialised equipment for stacking, blending, and reclaiming bulk materials for all kinds of industries. Over 700 references worldwide demonstrate the quality and versatility of SCHADE stockyard equipment. One of these references is the stacker/reclaimer delivered to Ruhrkhole AG, Zollverein Coking Plant, Essen, Germany in 1973 – today a UNESCO World Heritage Site. www.schade-lagertechnik.com

Stacker/Reclaimer (1973) at the former Coal Mine „Zollverein“, Essen/Germany UNESCO World Heritage

Dry Bulk is a fully-audited member of the Audit Bureau of Circulations (ABC). An audit certificate is available from our sales department on request.

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Copyright © Palladian Publications Ltd 2021. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. All views expressed in this journal are those of the respective contributors and are not necessarily the opinions of the publisher, neither does the publisher endorse any of the claims made in the advertisements. Printed in the UK.

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COMMENT I MANAGING EDITOR James Little james.little@drybulkmagazine.com EDITOR Lydia Woellwarth lydia.woellwarth@drybulkmagazine.com EDITORIAL ASSISTANT Sarah Smith sarah.smith@drybulkmagazine.com SENIOR EDITOR Elizabeth Corner elizabeth.corner@drybulkmagazine.com SALES DIRECTOR Rod Hardy rod.hardy@drybulkmagazine.com SALES MANAGER Ryan Freeman ryan.freeman@drybulkmagazine.com PRODUCTION Kyla Waller kyla.waller@drybulkmagazine.com ADMINISTRATION MANAGER Laura White laura.white@drybulkmagazine.com DIGITAL EVENTS CO-ORDINATOR Louise Cameron louise.cameron@drybulkmagazine.com DIGITAL EDITORIAL ASSISTANT Bella Weetch bella.weetch@drybulkmagazine.com DIGITAL ADMINISTRATOR Lauren Fox lauren.fox@drybulkmagazine.com VIDEO CONTENT ASSISTANT Molly Bryant molly.bryant@drybulkmagazine.com DRY BULK (ISSN No: 2059-9579) is published quarterly by Palladian Publications Ltd. Annual subscription (monthly) £50 UK including postage, £60 overseas (airmail). Claims for non-receipt must be made within four months of publication of the issue or they will not honoured without charge.

LYDIA WOELLWARTH EDITOR

n this day and age, one would think it relatively safe to be a seafarer, however this could not be further from the truth. To focus initially on pandemic-related issues, in September the International Chamber of Shipping published updated guidance to protect seafarers and shipowners from the unpredictable and unavoidable challenges of COVID-19. Speaking from a country where 67% of the population is fully vaccinated (UK), the 25% figure of vaccinated seafarers seems alarming. Reportedly, most of the currentlyunvaccinated seafarers are not expected to receive their doses until 2022, when their national programmes provide them with coverage. Considering the fact the movement of global trade would be at a standstill without these individuals, the International Maritime Organization (IMO) has acknowledged the concern and named seafarers as one of the groups that should be prioritised for the COVID-19 vaccination when supplies are limited. IMO Secretary General Lim said, “I am glad to see that the WHO recognises the importance of vaccinating seafarers on cargo ships. These individuals are responsible for transporting over 80% of all goods around the world, including food, medicine, and vaccine supplies – and have continued to do so despite extremely challenging circumstances. Seafarers will play a key role in the global recovery, and barriers to international travel and crew change must be removed.” Whilst struggles with mental health, vaccination issues, shore leave, and more remain at the forefront of current challenges to seafarers, safety concerns relative to the actual cargoes being transported remain a constant challenge in

the industry. Analysis by INTERCARGO has detailed how cargo failure (via liquefaction) accounted for the highest loss of life in the bulk carrier industry from 2011 to 2020, when 61 lives were lost and five ships were casualties during this period. Last month, concerns were heightened as there is reportedly an increased liquefaction risk of iron ore fines cargoes from Sierra Leone – specifically those cargoes being loaded in the port of Pepel. The International Group of P&I Clubs (which provides liability cover for 90% of the world’s ocean-going tonnage) recently issued a Circular to members to highlight the risks. The group understands that some cargoes of iron ore fines intended for shipment have been stockpiled outdoors for a prolonged period of time without any cover. Since this is the wet season, there is particular worry for liquefaction risk. Moreover, some cargoes planned for shipment that were previously considered too low grade for export, and thus left uncovered for some time, are only now being blended with higher grade materials for export. Shippers have been informed they should carefully examine the characteristics of the material intended for loading, to make sure those that are unsafe are identified and separated. Ultimately, the shipper is responsible for ensuring that the transportable moisture limit of cargoes which may liquefy is complied with. So, a nod to all seafarers in the industry. From battling the months onboard vessels due to COVID-19 travel restrictions, to the daily risk of cargo failure when shortcuts are taken during storage and transportation, the global dry bulk industry shows its appreciation.

Palladian Publications Ltd, 15 South Street, Farnham, Surrey, GU9 7QU, UK // t: +44 (0)1252 718999 // w: www.drybulkmagazine.com

WORLD NEWS ASIA SFL Corporation sells seven vessels

FL Corporation Ltd has announced that it has agreed to sell its seven Handysize dry bulk vessels to an Asiabased buyer for an aggregate price of approximately US$100 million. Delivery of the vessels is expected to take place before year end, and net cash proceeds are estimated to be more than US$50 million after repayment of associated debt. The company expects to record aggregate book gains of more than US$40 million from the sale of the vessels. The vessels have cargo capacity between 32 - 34000 DWT and have been employed in the spot market the last five years, after redelivery from their initial charters. With limited long-term chartering opportunities for small dry bulk vessels, the intention has been to trade the vessels in the spot market until the markets improved. The sale will not have an impact on the company’s charter backlog, and the net proceeds are expected to be reinvested in new assets. Ole B. Hjertaker, CEO of SFL Management AS, said “Our primary business strategy is to own and charter out vessels long-term to strong counterparties, and we have added more than US$850 million to our charter backlog in 2021.”

NORWAY Veson Nautical announces acquisition of Oceanbolt

eson Nautical has announced its strategic acquisition of Oceanbolt, a dynamic data solutions product for bulk commodity trade flow analysis and marine shipping intelligence. Oceanbolt’s data solution provides web-based and API access to high integrity, real-time data on commodity trade flows, freight tonnage flows, live and accurate vessel positions, port congestion, port activity, and turnaround times – instrumental insights for strategically managing demurrage, for example. Since the inception of the Norway-based venture in 2019, Oceanbolt’s innovative data platform has earned the respect of an impressive client base of dry bulk owner-operators, commodities traders, supply chain co-ordinators, and tonnage charterers. Oceanbolt combines a best-in-class AIS processing engine with a proprietary geospatial database of port and berth polygons to allow computationally expensive calculations to be processed in a matter of seconds. Today, Oceanbolt processes 30+ billion data points, makes 60+ million daily observations, and tracks 5+ billion t of cargo each year over 140 commodities.

USA Bruks Siwertell delivers cement unloader to Ozinga

ruks Siwertell has delivered a Siwertell road-mobile shipunloader to US organisation, Ozinga. The next-generation unit promises to secure environmentally friendly cement handling for the company; an operator that prides itself on delivering innovative solutions to its customers. “This is Ozinga’s first Siwertell shipunloader,” says Ken Upchurch, VP Sales and Marketing, Bruks Siwertell. “The Ozinga team invested time in researching various types of unloading equipment and concluded that the Siwertell roadmobile unloader was the best solution for its application.” Ozinga specialises in concrete, dry bulk materials, and natural gas energy solutions, and has an extensive network of truck, rail, barge, and ship terminals. Its operations are predominantly focused in the US mid-west, where the new shipunloader is making its debut. 4 . DRY BULK . AUTUMN 2021

For operators that serve multiple ports or facilities with minimal or no infrastructure, Siwertell road-mobile shipunloaders offer flexibility, efficiency, and environmental protection. “They have a worldwide reputation for reliability and are a popular choice for cement handlers,” adds Upchurch. Ordered in 2020 and delivered later in the same year, the 5000 S road-mobile unloader offers totally enclosed, environment-friendly cement handling operations, with the unit delivering a continuous rated unloading capacity of 300 tph for vessels up to 5000 DWT. The trailer-based, diesel-powered system is fitted with dust filters and a double-bellows discharge arrangement with an automatic shifting function. It also features advanced digital technology for diagnostics and trouble-shooting.

All Wheel Travel System with high rise design suitable for narrow jetty (< 25m (80ft) Wide for Panamax Vessel) Trucks can drive underneath the unit for unloading easily on site Perfect for Multi-cargo Berths – customised for your commodity Range of customised environmental features including dust containment and suppression options Autonomous and Independent Unit - Integrated Generator for all functions - Optional Changeover switch for shore power Customised Diagnostics Touch screen Control Panel – operate plant from one position

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WORLD NEWS DIARY DATES

ADIPEC 2021 15 - 18 November 2021 Abu Dhabi, United Arab Emirates www.adipec.com/exhibition/ about-the-exhibition

AntwerpXL 07 - 09 December 2021 Antwerp, Belgium www.antwerpxl.com

SOLIDS & RECYCLING-TECHNIK Dortmund 16 - 17 February 2022 Dortmund, Germany www.solids-dortmund.de

GEAPS Exchange 26 - 29 March 2022 Kansas City, USA www.geapsexchange.com

Posidonia 2022 06 - 10 June 2022 Athens, Greece www.posidonia-events.com

TOC Europe 14 - 16 June 2022 Rotterdam, the Netherlands www.tocevents-europe.com

6 . DRY BULK . AUTUMN 2021

RUSSIA Cargo to Russian seaports on the rise

n January - July 2021, loading volumes on the railway network owned by Russian Railways and dispatched to Russian seaports for export amounted to 204.9 million t, 9.4% more than in the same period in 2020. Various cargoes dispatched to the ports of Russia’s North-West totalled 83.9 million t, up 11.7%, while 53.3 million t were transported to the ports of the South, an increase of 21.7%, and 67.7 million t to the ports in Russia’s Far East, a rise of 6.2%. Coal dominated the exports, accounting for 52.4% of the total, followed by oil cargo (22%), ferrous metals (6.9%), fertilizers (6.1%), and grain (2.3%). Coal loading volumes shipped to ports in January - July 2021 increased by 15.5% to over 107.4 million t. Delivered to the ports of Russia’s Far East were 55.8 million t of solid fuel, an increase of 4.5%, 16.8 million t to the ports in the South, up by a factor of 1.8, and approximately 35 million t to the ports of the North-West, a rise of 15.5%.

CANADA Port of Vancouver announces new grain record

he Vancouver Fraser Port Authority has released the 2021 mid-year statistics for goods moving through the Port of Vancouver. From 1 January - 30 June 2021, overall cargo volumes through Canada’s largest port reached a record high of 76.4 million t, up 7% from 2020 mid-year, and 5% above the previous record set in 2019. Sectors that experienced strong growth include grain and containers, both of which hit new records in 2021. Strong overseas demand for Canadian grain products – a main driver of the overall record mid-year cargo volumes – resulted in record mid-year volumes of bulk grain, up 20% to 16.5 million t compared to mid-year 2020 and up 35% from 2019. Total foreign tonnage and foreign exports resulted in 60.3 t and 52.0 million t, up 4% respectively, compared to mid-year 2020 volumes, due to strong increases in grain and coal. Increases in wheat, up 23%, barley, up 151%, and animal feed, up 30%, contributed to this new bulk grain record. Metallurgical coal increased by 11% while thermal coal remained flat. In fertilizers, potash exports increased by 0.3% from last year and sulfur decreased by 20%. “Record grain volumes through the Port of Vancouver once again over 1H21 demonstrate the continued growth in the global demand for Canadian agricultural products,” said Robin Silvester, President and Chief Executive Officer at the Vancouver Fraser Port Authority. “Over many years, we have worked with partners to support the growth of the agricultural sector, and over the last decade there has been a very significant amount of investment in the port and the surrounding gateway by grain terminals, governments, railways, port customers, and the port authority, with much of that investment directly benefitting the grain sector.” The record overall cargo volumes at mid-year in 2021 reflect the continued growth in the agriculture and container sectors. This trend is expected to continue as the long-term outlook for Canadian trade is growing.

WORLD NEWS

USA NORDEN moves into port logistics

hrough a complex operation to offload bulk salt, NORDEN is optimising the supply chain for its customer Empremar. At a chemical plant in California, US, 30 000 t of salt is being offloaded from a bulk carrier onto a private terminal. The salt will be taken directly to the plant and used to make chlorine. This shipment is one of eight per year that NORDEN will make for Chilean salt miner Empremar. While NORDEN has been shipping salt to the US for Empremar for 20 years, this is the first time it is managing the entire logistics operation of moving the salt from ship to shore. “Usually our contracts for carrying bulk commodities are simple ‘free in/free out’ – which means our responsibilities end when the ship arrives at the berth for discharge,” explains Mark LaFrankie, Head of NORDEN’s Vancouver, Canada, office.

“For Empremar we are handling all the port logistics too. This involves an intricate barging, heavy equipment, and labour operation, and timing it all to consistently meet the arrival of the ship coming from Chile. There’s a great deal of specialist knowledge involved.” With no space at the terminal to bring in heavy equipment, NORDEN has partnered with a local barge company to carry bulldozers, clamshell buckets, re-fuel tanks, and gangways alongside the vessel to offload the salt. A team of private heavy equipment operators have also been contracted to complete the offloading operation in approximately four or five days, working 12 hour shifts night and day. Such port logistics and cargo handling services represent a critical new business area for NORDEN.

LATVIA Loading of the new harvest grain has started in the port of Riga

ecently, approximately 190 000 t of grain products were handled at the port terminals in Riga. Most of this amount is wheat, which is currently shipped to South Africa, Nigeria, Mozambique, and Algeria by Panamax-type vessels, so it can be considered that the new grain season in the port of Riga has been launched. “In August, we have loaded the first seven vessels with approximately 90 000 t of local wheat, peas, and rapeseed of the new harvest. However, in general, we plan this season cautiously – the prolonged heat of this summer has affected both the quality and volume of the harvest,” said Edgars Ruza, the Board Chairman of the Agricultural Services Co-operative Company LATRAPS, which has acquired a 50% + 1 share in the dry bulk cargo terminal ‘Alpha osta’. He added that due to weather conditions, this year’s grain season started earlier than planned. “This year, grain arriving at the port of Riga both by road and rail is being handled at 13 terminals on both banks of the Daugava. The Freeport of Riga Authority’s investment in dredging the port access and shipping channels made it possible for larger vessels to enter the port, providing the businesses with the opportunity to save on transportation costs,” emphasised Ansis Zeltins, the Freeport of Riga CEO. 8 . DRY BULK . AUTUMN 2021

One of the essential preconditions for competitiveness is availability of the infrastructure for transhipment and storage of agricultural products at the port companies as well as the grain storage facilities. In recent years, modern grain warehouses have been built at the terminals, and investments are being made in new handling equipment and technologies. Due to changes in cargo structure, this year grain cargo is being handled at the STREK terminal on Krievu Island, where two new closed warehouses of 3000 m2 with a total storage capacity of up to 30 000 t have been built and are being filled with grain of local and Lithuanian origin. This year a new closed grain warehouse with storage capacity of up to 20 000 t has been built in the terminal ‘Osta LejasVoleri’. In addition to the six existing ones, two more closed grain warehouses will soon be put into operation at the bulk cargo terminal SIA ‘Port Milgravis’. In recent years, with the change in the overall cargo situation in the port of Riga, grain and grain products have become one of the fastest growing segments in the cargo portfolio of the port of Riga, which is confirmed by the fact that the volume of grain products shipped through the port has increased 2.2 times. So far in 2021, 1.6 million t of grain products have already been handled at the port, which is a quarter more than in the corresponding period of the previous year.

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Emily Hannah Stausbøll, BIMCO, Denmark, provides a dry bulk shipping market analysis, considering European grains, fleet news, and presenting an outlook for the coming years.

he first half of the year has provided a strong backdrop for the dry bulk shipping market. Demand for dry bulk goods has been strong as a result of stimulus measures and strong industrial production. However, as a new phase of the pandemic is entered, the world is increasingly divided between countries with high vaccination rates that are protecting populations, and thereby the economies, and countries at the other end of the scale where vaccination rates in some cases are still measured in single digit numbers. This divide, coupled with the COVID-19 Delta variant which has increasingly broken through the defences that kept many countries almost COVID free, has prompted the International Monetary Fund (IMF) to revise its GDP growth forecast for 2021. While the headline figure of 6.0% global growth this year is unchanged from the previous IMF forecast, it hides the fact that the growth forecast for advanced economies has been upgraded by 0.5 percentage points to 5.6% and the forecast for emerging economies has been downgraded by 0.4 to 6.3%. In recent months many Asian countries have been hit with new waves of the pandemic, with some of them experiencing their strictest lockdowns of the pandemic. These have led to drops in manufacturing activity in several of the world’s largest producing countries. Vietnam’s manufacturing PMI fell to 40.2 in August, with anything below the threshold of 50 indicating a contraction. In China the overall PMI was still just above

10 . DRY BULK . AUTUMN 2021

AUTUMN 2021 . DRY BULK . 11

50 at 50.1 in August, but new export orders fell to 46.7. The slowing growth in manufacturing in China as well as government measures to limit emissions from steel and other heavy industries pose a threat to Chinese imports of dry bulk goods. One big question is how strictly these government measures will be enforced, especially if they start to constrain economic growth. The two largest volume dry bulk goods being imported by China, iron ore and coal, have both fallen y/y in the first seven months of the year. Iron ore imports have fallen by 24.1 million t (-1.5%) and coal imports are down by 4.1 million t (-15.0%). Imports of both of these goods were record high in 2020 and as government restrictions come into play it seems increasingly likely that imports will not reach those levels again.

Earnings far above previous years

55,000

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Panamax (82k)

Supramax (58k)

Jul 2021

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Capesize (180k)

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5,000 Mar 2019

USD day USD perper day

USD perper day USD day

Despite some of the major Chinese imports falling y/y, average earnings in dry bulk shipping so far this year have put average earnings from the past couple of years to shame. As is often the case, Capesizes are taking the limelight with their recent breaching of US$50 000/d, but a much more consistent and stable increase can be found in the often-neglected Handysize and Supramax ships. These saw average earnings rise to US$33 981/d and

Handysize (38k)

Source: BIMCO, Clarksons

350

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30-49

Capesize

20-29 10-19 5-9 )-bࢢm] ࢢl; Ő7- vő Panamax

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2-4

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Source: BIMCO, Oceanbolt

Figure 2. Dry bulk ships waiting in China, 1 September 2021.

12 . DRY BULK . AUTUMN 2021

Numberof of ships ships Number

Number Numberof of ships ships

Figure 1. Dry bulk earnings, 2019 - 2021.

US$36 774/d respectively on 24 August 2021. On the same day a Panamax ship could expect to earn US$34 615/d. Time charter rates are underscoring the current strength of the market with charterers currently double, if not 2.5 times, as much as at the end of August as they were at the start of 2021. A one-year time charter on a Capesize ship at the start of the year would have seen owners receiving US$16 500/d. Today, that number stands at US$32 250/d. The largest increase comes in rates for Supramax ships which have seen one-year time charter rates rise by 165.1% since the start of the year to reach US$28 000/d. Part of the explanation behind the high freight rates lies in the pandemic-related restrictions and problems at ports which are tying ships up for longer than they usually would. On 1 September 2021, there were 674 dry bulk ships waiting in China. On the same day in pre-pandemic times this number stood at a much lower 287, according to Oceanbolt. As an example of what this means for an individual trade, Oceanbolt data for ships sailing from Port Hedland, Western Australia, to Qingdao, China, shows that the average time for the journey (including waiting time at the load and discharge ports) has risen by 22.7%. In July 2021 it took an average of 33.5 days, while in July 2019 it could be done in 27.3 days. As well as congested ports, the recent pick up in Brazilian iron ore cargoes to China has helped lift the Capesize market. In the first three weeks of August, 15 cargoes were offered on the spot market – more than in the whole month of July, with the weekly number of cargoes available the highest since April, according to Commodore. In the first seven months of the year Brazil has exported 198.8 million t of iron ore, a 10.8% increase from last year and up 1.0% from 2019. However, it remains 15.0 million t lower than the record high exports of 213.7 million t in the first seven months of 2018. There has also been strong growth in grain; exports from the world’s largest exporters have grown by 6.3% to a record 162.1 million t in the first six months of the year. The driver of this growth has been the US which has seen its grain exports rise by 39.3%, jumping from 51.3 million t in the first half of last year to 71.5 million t. In contrast exports from Brazil and Argentina have fallen. Brazilian exports are down by 0.3% to 61.6 million t while those from Argentina have fallen 26.3% to 29.0 million t. US coarse grains exports have seen the highest growth up 18.1 million t (+72.5%) in the first half of the year compared to 2020. These extra volumes are the equivalent of an extra 242 Panamax loads (75 000 t). Just behind in terms of volume growth are US soya bean exports. These have had a strong off-season; exports in the first six months have totalled 17.1 million t, a 16.6% increase from last year. In September the new US marketing year commenced, and exports of soya beans will ramp up again. Compared to the start of the 2020/2021 marketing year, outstanding sales are much lower. These currently stand at

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15.6 million t, compared to 29.4 million t on 1 September 2020. While more sales will soon be added to the current level of outstanding sales, it is unlikely that volumes in the just started 2021/2022 season will match the 60.0 million t of soya beans exported in the 2020/2021 season.

European grain exports

Coarse grains

Wheat

Million tonnes Million tonnes

Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 Jul 2018 Aug 2018 Sep 2018 Oct 2018 Nov 2018 Dec 2018 Jan 2019 Feb 2019 Mar 2019 Apr 2019 May 2019 Jun 2019 Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021

Million tonnes Million tonnes

Grains exports from Europe on the other hand have fallen considerably from last year. In total they have fallen by 29.3% in the first seven months of this year compared to 2020, down from 76.0 million t last year to 53.8 million t this year. Almost three quarters of these exports come from the Black Sea which so far has exported 39.4 million t – 14.6 million t or 385 Handysize loads (38 000 t) less than last year. Approximately 40% of European grains are exported on Handysize ships, which in the first seven months of the year have carried 21.7 million t of grains away from Europe, making that ship size the most used for European grains exports. Panamax and Supramax ships are the other popular ship types for grains out of Europe with these having taken 16.2 million t and 14.0 million t respectively in the first seven months of the year. Common to all ship sizes is a fall in exports this year compared to last, though Panamax

Soya beans

Source: BIMCO, US Census Bureau

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-10

-1%

Million DWT Million DWT

-20

2017A Delivered

2018A

2019A

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2020A

2021F

To be delivered p.a.

2022E

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Growthrate ratep.a. p.a. Growth

Figure 3. US seaborne agricultural exports, 2018 - 2021.

-2%

Growth rate (RH-axis)

Figure 4. Dry bulk ship fleet growth, 2017 - 2023.

14 . DRY BULK . AUTUMN 2021

ships single themselves out as being the only ones to have exported more in the first seven months of this year compared to the same period in 2019. In total, European grains exports are down 14.8% this year compared to 2019. Two Capesize ships have also been used so far this year, both of which sailed from Ukraine to China. China is the largest taker of European seaborne grains exports, accounting for 15.1% of total exports so far this year, or 8.1 million t. This is a 4.4 million t fall from the first seven months of 2020, but up 3.4 million t from the same period of 2019. After China the next largest importer of seaborne grains from Europe is Egypt, providing much less of a tonne-mile boost than China with the 5.0 million t it has taken so far this year, below both 2020 and 2019 levels.

Fleet news

Approximately 70% of the deliveries expected for 2021 in the dry bulk market have arrived adding 24.2 million DWT of capacity and bringing the total fleet to 931.6 million DWT. In the coming months BIMCO expects the fleet to grow to 940 million DWT, leaving fleet growth of 3% this calendar year. Of the 24.4 million DWT delivered so far this year, half comes from the 58 new Capesize ships, of which 45 have a capacity of 180 000 DWT or more, with eight of these above 300 000 DWT. In numbers, more Panamax and Supramax ships have been delivered – 71 and 72 respectively – though even these combined add less capacity to the fleet (10.1 million DWT) than the 58 new Capesizes. At the other end of the lifecycle, only 4.7 million DWT of capacity has been demolished. By the end of the year BIMCO expects demolition to reach approximately 7 million DWT, less than half of what was removed from the market in 2020, as the earnings potential for ships has incentivised owners to keep their ships sailing. This once again proves the point that the freight markets have a much larger influence on demolition than scrap (or new) steel prices. The summer months have seen the dry bulk orderbook grow by 54 ships, as 4.8 million DWT was ordered in June through August. All but one will be delivered in 2023 and 2024. The orders include 1.9 million DWT and 1.8 million DWT of Capesize and Panamax ships respectively. Including all orders, the orderbook currently stands at 58.3 million DWT, a marked decrease from the 71.6 million DWT in August 2020 and 97.8 million DWT in August 2019, as ships have been delivered faster than new ones are being ordered.

Outlook

As the strongest part of the year seasonally for dry bulk is approached, things are looking promising, with operators already pulling in solid profits so far this year. As long as countries enforce quarantine and testing requirements and ports face sudden disruptions due to

local/regional outbreaks, the congestion that is sucking capacity out of the market will continue to support earnings for the dry bulk market, with the market expected to stay strong into 2022 until the temporary support factors are wound down. These include congestion and delays thanks to pandemic restrictions, spill over from the red-hot container market, stimulus measures, and the up-till-now strong recovery in manufacturing. The positive outlook is also reflected in second hand prices which have followed the freight markets on an upwards path. Compared to the whole of 2020, the price of a Capesize ship on the second-hand market has risen by 43.3%, when comparing sales with disclosed prices so far this year. This year to date, the average price of a Capesize ship has been US$28.4 million, with the ships sold being 9.4 years old on average. All other dry bulk ships have also seen average prices rise by more than 40% this year compared to 2020, with Handysize ships rising 68.4% from last year to US$12.1 million – with the ships being 9.9 years old on average. In contrast to the positive outlook for dry bulk shipping, the OECD has warned that most major countries have passed their peak growth rate this year, and while they will continue to grow, it will be at a slower pace. The ‘easy’ gains deriving from the re-opening of economies have been realised and the next gains in line will be more challenging, not least because key industries are prevented from realising their true potential due to external factors such as material and labour shortages. The big question for everyone in shipping, and for the rest of the world for that matter, is how the supply chain disruptions will develop. Despite services re-opening and accounting for a larger share of consumer spending, demand for goods in the developed world will remain high, as wholesalers and retailers will need many months to get their stock back to levels they are comfortable with after this unprecedented period. This means that even if manufacturing and supply chains can keep up, it will be well into 2022 before any talk of a ‘normalisation’ can return. So, can supply chains keep up? The development of the pandemic in many of the world’s major producing countries has exacerbated the problems, as factories and ports are closed in attempts to contain the virus. This causes more delays and an even longer time frame for a return to normal. All eyes will be on China, dominating production to a large degree, and on whether the country will continue to pursue a COVID-19 elimination strategy despite the severe economic consequences for China itself, as well as for all of the countries that depend on receiving goods. A prolonged COVID-19 elimination strategy from China would likely lead to more closures of factories and ports, with very little predictability as to where they will hit or how long it will last.

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Felipe Simian, Nachipa, Chile, explains why minor bulk cargoes are the future in a time where decarbonisation and green solutions are becoming increasingly important.

lobal debates about energy production, shipping policy, and political strategy are currently filled with talk about the demise of hydrocarbons and the arrival of clean technologies. However, it is true today and it will be true for many more years that the two largest bulk cargoes by trade volume are coal and iron ore. In 2019, iron ore and coal’s shares (by volume) of total dry bulk trade were 32% and 27% respectively, together amounting to nearly three-fifths of all dry bulk cargoes. The upturn in demand for the two biggest major bulk cargoes is unlikely to grow from these figures, however. Power production around the world is phasing out coal as a source of energy, and increased steel recycling (particularly in China) is likely to constrain substantial growth from the current levels of iron ore demand. Chinese demand for coal and iron ore is approximately 20% and 60% respectively. Given the economic outlook, only one country could create Chinese levels of steel demand with its industrialisation: India. But there is limited evidence that New Delhi has the will or finances to take this step.

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The shape of things to come

Minor bulks – minerals, metals, grains, cement, etc. – have approximately a quarter share by volume of total dry bulk trade. Yet despite this, they are commodities that are growing much more rapidly. The international effort to create a more sustainable global economy and ‘green’ the world’s energy sources will have an enormous impact on minor bulk cargoes. Take lithium-ion batteries, as an example. They use minerals such as lithium, cobalt, and nickel, and are a much more sustainable energy source that could hugely reduce the use of hydrocarbons. In maritime, the industry is starting to see lithium-ion batteries’ impact in hybrid and fully electric vessels, such as ferries, coastal vessels, and other small passenger ships. Recent months have also seen the expansion of battery technology into larger sea-going vessels with dual-fuelled operations. It is evident that this will continue to develop as the pressure for shipping to reduce its greenhouse gas (GHG) emissions heightens.

AUTUMN 2021 . DRY BULK . 17

Elsewhere, lithium-ion batteries are being deployed by a host of electric car manufacturers with the same premise: better performance, lower emissions. It is a market in which Deloitte expects to see compound growth of 29% over the next decade. Many electric vehicles also require commodities such as bauxite and manganese to build infrastructure and operating systems. And as with most commodity trades, consumer demand for greener solutions will play a key role in their acceleration. Copper is also set to feature heavily in a green recovery, as many electric and hybrid vehicles and infrastructure make use of the commodity to establish operations with reduced environmental impact. Given that electric vehicles use more than double the amount of copper in their construction than other, standardised combustion engines, the commodity will likely increase in the coming years as global demand for electric and hybrid operations escalates. By contrast, it is also the effects of climate change which could well escalate the demand and trade of minor bulks. Approximately 30 - 50% of high production regions for some of the most widely utilised minor bulks – including copper, zinc, and gold – are significantly impacted by water stress. That is, areas with high flooding, high risk of flooding, and rising water levels. It is likely that, given the current outlook and changing landscape, these figures will worsen, making the coming years vital for minor bulk trade. Australia’s recent floods are emblematic of these effects, and have seriously impacted steel trade and coal exports, as was noted at the Port of Newcastle earlier this year.

Minor bulk, major impact

In the medium- to long-term, demand will also be shaped by the growing global population. When it comes to grains and fertilizers, the clear and obvious pathway for these commodities to develop is through increasing numbers, both directly and through livestock. There are also high expectations for more circular material flows, such as more steel scrapping and reduced iron ore. The Chinese government has set ambitious steel scrap targets, with plans to triple the amount used (since 2016) by 2030. If this target is vigorously enforced it would reduce iron ore demand substantially, as China is currently responsible for nearly 60% of global steel production. In fact, these trends might be better described as an evolution of the dry bulk market, and could indicate a wider, more permanent shift in the world’s trade patterns. This is also pushing the requirement for dry bulk operators and owners to adjust how they operate. Nachipa’s intimate knowledge of the global dry bulk markets enabled the company to anticipate this sizeable shift a number of years ago, and begin to refresh its business focus to an asset-light, cargo-first approach that better accommodates the evolving changes in demand. It has also been a key driver of Nachipa’s efforts to reduce the median age of its Handysize vessels to five years old, and operate only the most efficient vessels.

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The shrinking outlook for the largest dry bulk vessels – which disproportionately carry iron ore and coal – in the medium-term could strengthen those for Handysize and Handymax segments, as minor bulk cargo becomes more prevalent in demand. Currently, over 10% of the global Handysize sector fleet is more than 20 years old. This makes this method of trade not only an inefficient one, but one which unnecessarily contributes to shipping’s emissions through greater levels of fuel consumption.

Slow steaming: the way ahead?

The threat of increased emissions comes at a time where shipping is facing increasingly stringent regulation designed to reduce its environmental footprint. While a hot market has many benefits, chasing berths and cargoes with greater intensity than usual – as the industry is currently seeing – can result in an overall acceleration of operations, and higher vessel speeds mean higher fuel consumption. One of the key challenges here is that the energy and competition of the current market has resulted in reduced scrapping of older, less efficient vessels; vessels which are not optimised for the speeds and rates which the sector needs to meet the demands of the current climate. More often than not, older vessels incur higher levels of CO2 and other harmful GHG emissions. The median age of a fleet is far from the only component which can support decarbonisation efforts, particularly in the dry bulk segment. Mandatory slow steaming is a significant step with real and immediate impact. Slowing speeds by 25% could achieve more than 50% reduction in main engine fuel use so a low, constant speed feels like a good course of action – if it is adopted by the global fleet. During the past 12 months, for example, there have consistently been two to three week waits at ports such as Abidjan (Ivory Coast) or Sao Luis (Brazil). By reducing the number of vessels rushing to wait at terminals, Nachipa will cumulatively minimise the fuel consumption of hundreds of vessels. The post-pandemic era is steering the trend towards minor bulk cargo. For a generation that will be required to urgently decarbonise its operations, the effects of the pandemic have brought the need for green solutions to the forefront, increasing the demand for the materials to help reach the endpoint. There are many practical solutions available that can be implemented now, such as the scrapping of inefficient tonnage and mandatory slow steaming. Building the efficiency of the company’s global fleet – within and external to the dry bulk segment – will not only support these collective goals towards a more sustainable industry, but create a more profitable and streamlined industry for the years to come. Yet it is only through the establishment of an equal playing field that the benefits can be realised and the industry can move towards a better future.

Amy Duncan, Dos Santos International, USA, details a recent installation of a high-angle conveyor at a port to easily move materials for export.

reated by Dos Santos International (DSI), the Sandwich Belt high-angle conveyor can take on many forms and provide numerous advantages. This technology can offer a clean, environmentally sound operation because the material being carried remains hugged between the two conveyor belts. The DSI Sandwich Belt high-angle conveyor has been designed to achieve higher conveying speeds and greater capacities than other high-angle conveying methods;

high angles of 90˚ are typical, and lifts of 300 m are easily accomplished. With all the positive features of the DSI Sandwich Belt conveyor, it has been successfully used in mining, quarries, plants, and tunnelling, as well as one sector which is less talked about: ports and terminals. The DSI Sandwich Belt high-angle conveyor has not only been implemented on shiploaders, but the company's ingenuity took the technology

AUTUMN 2021 . DRY BULK . 19

beyond perceived limits to offer efficient and sustainable solutions to solve challenges at ports and terminals.

Mobile shiploader

Figure 1. The DSI mobile Sandwich Belt shiploader is driven from the dock when not in use, stored, and parked much like parking a car.

Figure 2. Materials are loaded at the mouth of the Sandwich Belt high-angle conveyor by a mobile feeder.

Figure 3. Adder Snake generalised Sandwich entrance.

Figure 4. Adder Snake generalised layout.

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Australia’s first DSI Sandwich Belt high-angle conveyor shiploader elevates 1000 tph of a variety of materials – from high-value ores to grains and woodchips – from trucks to ship. Conventional conveyors would not have fit the limited dock space, thus a smaller footprint was required. Recognised for the ability and advantage to elevate at much higher angles, the DSI Sandwich Belt conveyor was engineered to elevate materials at a 50˚ angle. Additionally, because of the limited dock space, it was ideal to have a system that was mobile and could be removed from the dock when not loading ships (Figure 1). The ingenuity of DSI partner, Cortex Resources of Victoria, Australia, produced this drivable and completely mobile shiploader. One of the more noted features of the DSI mobile Sandwich Belt shiploader is how it is driven; a dream come true for the child in all of us, this system is driven by remote control. The operator straps the remote control to their body and proceeds to drive the shiploader slowly and carefully to the dock, while standing or walking along the dock. The shiploader is carried on a tripod of rubber tyre assemblies, with each assembly mounted on a vertical axis that can be rotated. The rear tyre assembly consists of four rubber tyres that steer and drive the shiploader. The two forward tyre assemblies each consist of two non-driven tyres. Thus, without repositioning the DSI mobile Sandwich Belt shiploader, with the forward tyres set parallel to the longitudinal axis, it can travel forward and back and be steered in either direction. With the tail tyres fixed, the front tyres can be oriented and travelled for a slewing motion. With the forward tyres set perpendicular to the longitudinal axis, it can be moved side to side while oriented in its loading position over the ship. Materials for export are trucked to the dock and dumped onto a special mobile feeder. The bulk is fed continuously and uniformly into the mobile Sandwich Belt’s receiving chute. The DSI mobile Sandwich Belt shiploader elevates the bulk over the ship’s deck to the hatch, where it is discharged into the ship’s hold. At the Sandwich Belt conveyor’s discharge, a special telescoping chute with a rotating pivot spoon facilitates even and complete filling of the holds. The Port of Adelaide is the main port in South Australia, it works with a range of outbound mining cargoes including: limestone; metals and scrap metal; iron ore; iron and steel; mineral sands; mineral concentrates; cement and cement clinker. It also transfers materials such as grains and woodchips.

A design to fit the project

The mobile shiploader set the stage for DSI to supply its Sandwich Belt highangle conveyor at the Yara Sluiskil shiploader upgrade in the Netherlands. The initial design concept for the upgrade used a conventional conveyor stinger boom out from the perpendicular

dock conveyor, to the tail of a standard DSI high-angle conveyor. This had the disadvantage of an additional transfer and extra equipment, so the client readily embraced the idea of replacing the stinger conveyor with an extended high-angle conveyor tail to receive the material directly from the dock conveyor tripper. The layout of the new arrangement immediately revealed that sufficient tripper height did not exist to accommodate the tail pulley of the Sandwich Belt high-angle conveyor. The solution was to employ the DSI Adder Sandwich Belt high-angle design, using a lighter construction belt that could be wrapped around a smaller tail pulley. To accomplish the high-angle lift, the DSI Adder Snake swallows the narrow conventional belt, along with its material, into the two wider sandwich belts – allowing the material to enter the sandwich belts with minimal disturbance. It achieves this without the energy loss and additional equipment required for a standard transfer. The concept of the DSI Adder Snake, invented by DSI’s Vice President, Marc dos Santos, was inspired by a very different application: elevating material from under large storage domes. The use of this technology extends to a wide variety of applications, including marine terminals, stacker/ reclaimers, and long overland systems. The Yara shiploader application provided the first opportunity to implement the Adder Snake concept. The DSI Sandwich Belt high-angle conveyor transfers urea and Amidas prills at a rate of 600 tph at a 45˚ angle (Figure 5). The material will be transferred from the tripped dock conveyor onto the 1200 mm wide Adder Belt, which is then swallowed with the bulk into the 1600 mm wide Sandwich

Figure 5. The DSI Sandwich high-angle conveyor will transfer urea and Amidas prills at a rate of 600 tph at a 45° angle. Belt. The bulk is then elevated to the shiploader boom conveyor. The sandwich conveyor discharge is centred on the rotation axis of the boom, allowing the boom to rotate freely. Dos Santos International is a foremost authority on Sandwich Belt high-angle conveyors and was founded on its extensive worldwide experience in sales, engineering, and construction of bulk materials handling systems and equipment. This has included contributions that have expanded the range of bulk handling and transport solutions. While typically thought of as an elevating solution in mines, quarries and plants, the DSI Sandwich Belt high-angle conveyor has proven a high level of flexibility to bring costsaving solutions on both land and sea.

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Dr. Heinz-Peter Ehren, KUMERA Getriebe GmbH, Germany, describes how a customised gearbox solution can increase reliability and reduce energy costs.

owerful conveyors and their drive systems have a key role in surface mining. In ore mines, conveyor belts up to several kilometres long transport ore for further processing or transportation and reduce labour burden. The operational safety and reliability of the systems is of great importance since delays or shutdowns due to damage can cause immense downtime costs. Environmental hazards such as extreme weather conditions and fluctuations, dust and dirt pollution, and falling rocks must also be considered for operational safety. Systems are often installed in impassable locations so low-maintenance concepts are required. In the event of

service or damage, the downtime should be as short as possible. Another high priority is the greatest possible ecological sustainability of raw material extraction. This is not only achieved through the high operational reliability and long service life of the systems, but also through the energyefficient operation of the individual drives. As a manufacturer of high-performance drives for conveyor systems, KUMERA is aware of its responsibility and strives to implement this in the best possible way in the development and manufacture of high-performance gear units for customer and applicationspecific operations.

Figure 1. KUMERA powered overland conveyor in operation in Chile.

AUTUMN 2021 . DRY BULK . 23

Figure 2. KUMERA conveyor belt drive solution – right position.

Figure 3. Highly efficient KUMERA 2500 kW conveyor belt drive.

Three-phase AC motors with the following gear variants are typically used as drive concepts for the conveyor belt systems. Advantages of a standard gear with or without a fan include fast availability and the fact they are inexpensive. Their disadvantages, however, include the fact they have small outputs up to 1000 kW; gear ratios greater than 16:1 in three-stage design results in high power losses; there is less possibility of variation in differing installation and environmental conditions; and additional lubrication and cooling units are usually required for heat dissipation. KUMERA’s customised gears have been designed to overcome the disadvantages experienced when using a standard gear with or without a fan. Advantages of the customised gears include: Optimised drive design for the respective application and the specified environmental conditions. Outputs over 2500 kW possible. In the two-stage design, ratios greater than 20:1 are possible, which reduces the power losses by up to 30% compared to three-stage gearboxes. There are a large variety of options, including universal installation options as a result of the double foot design. Compact design through the flange output shaft. No additional lubrication and cooling system. Higher operational safety due to a significantly lower number of components at risk of failure. Disadvantages of KUMERA’s customised gears include the higher design effort and more complicated gear housing design due to the internal oil routing. This means higher costs, however, these are partially offset by saving the oil supply system. The gearboxes are mounted on a base frame as a drive unit together with all additional components (e.g. brakes, torque support, etc.) and flanged on the belt drums. Depending on the power requirement, a conveyor belt is equipped with one or two driven belt drums, whereby each drive drum can be equipped with a drive on one or both sides. A conveyor belt is thus equipped with up to four drive units. A significant advantage of having several drives per conveyor belt is that if one drive fails, the system can continue to operate – albeit with a reduced delivery rate – until the defective drive is repaired or replaced. Another advantage in connection with the universal gearbox design is that in the event of a defect with a replacement gearbox, any damage, regardless of the gearbox position in the system, can be repaired at significantly lower costs than if the conveyor belt was driven by just one large drive.

Power

Figure 4. Conveyor belt slope downwards – generator mode.

24 . DRY BULK . AUTUMN 2021

In addition to the drive concepts described, gearless direct drives are occasionally used in the upper power range, up to approximately 8000 kW. Here the conveyor belt is usually driven by a central, slow-running synchronous motor. As a result of the low utilisation and the elimination of mechanical losses in the gearbox, these drives also have a favourable energy efficiency. However, this can only be achieved by tight tolerances in the permissible air gap between the stator and rotor of the motor. For this, high demands are placed on the

n t a l ly

Summary

KUMERA is focused on offering customised concepts and solutions based on each location’s unique conditions. One solution is to enlarge and design the housing surfaces of the gearbox in such a way that, in combination with appropriate fans on the drive shaft, heat is dissipated for a stable thermal balance. If these measures are not sufficient, KUMERA offers further concepts such as integrated cooling tubes. KUMERA endeavours to support plant manufacturers in the implementation of their drive concepts with the best possible gear design. KUMERA also offers support to system operators and tailor-made drive concepts for the renewal and improvement of operational safety and increased performance of conveyor belt drives. The KUMERA belt drives are subject to continuous improvement. At present, new concepts are nearing production, through which both greater power density and an increase in operational reliability under thermal performance limits will be achieved.

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maintenance-free and uncomplicated operation is required. A main problem here is the dissipation of power losses in the transmission as heat. Standard gearboxes in this power and operating range are usually not able to dissipate the heat via the housing surface. Separate external oil supply systems with heat exchangers are used for this. Since there is generally no cooling water available at the installation site of the drives, oil-air coolers are mostly used. A critical disadvantage is that these oil systems show a high susceptibility to electronic, hydraulic, and mechanical failure in the harsh environment. Accordingly, efforts are being made to dispense with this for cooling and to use simpler, more reliable solutions.

rigidity of the overall construction (foundations, shaft deflections, etc.). Since these individual drives are also comparatively heavy, the logistics involved in installing them in mostly inaccessible terrain are also a challenge. Another important disadvantage is that if the drive fails, the entire system comes to a standstill, which can result in immense downtime costs. KUMERA conveyor belt drives are designed as a two-stage design when possible. Compared to a three-stage version with standard gear units, this has the advantage of 1% better efficiency (approximately 98% instead of 97%). Whilst this does not sound like much initially, it does, however, turn out to be an ecologically and commercially significant advantage. For example, a KUMERA conveyor belt with 10 MW drive power (four drives at 2500 kW each), currently in use in a copper mine in Chile, has a saving of approximately 100 kW/h in motor operation by an efficiency increase of 1%. For a conveyor system consisting of three conveyor belts, with a system utilisation of 80% on average and an operating time of 16 hrs/d and 250 d/y, this means an energy saving of approximately 960 MW/y. If still considering a system utilisation of 80% but 24/7 operation time and 14 days downtime for maintenance per year, the savings are up to 2016 MW. In many applications the systems convey the material downhill, which means the operation is in generator mode. The higher efficiency means the systems will generate approximately 100 kW/h of power more than a three-stage version with standard gear units. Since the drives are usually installed throughout a mine in locations which are difficult to monitor visually, the most

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Mike Lewis, BossTek, USA, details dust management in bulk material handling operations, specifically looking at atomised mist.

ust management is an ongoing issue faced by virtually every company transporting or processing dry bulk materials. Effective dust control has become an increasingly important challenge in bulk handling applications, with raised awareness and tighter regulatory standards both contributing motivation for operations to employ efficient, cost-effective methods of particle control. Depending on the source and ambient conditions, airborne dust can contribute to a number of concerns, including potential health or safety hazards, environmental issues, regulatory challenges, explosion risks, higher equipment maintenance costs, and poor community relations. Some of the issues are fairly obvious: dust inhaled by workers or members of the surrounding community can irritate airways and exacerbate conditions such as asthma. From a purely financial perspective, significant amounts of dust can lead to more frequent maintenance and faster equipment wear, causing operating costs to rise. Fugitive dust can also generate complaints from local residents and businesses, affecting neighbour relationships and potentially creating obstacles to future operating permits. According to the US Occupational Safety and Health Administration (OSHA) and most global safety organisations, a safe and compliant workplace around conveyors includes open walkways clear of debris, dust-free air, guarded belts with safe access points, signage, and sufficient lighting.1 Violations can result in fines and downtime, but a workplace injury can carry substantial penalties affecting operations and insurance. Many substances that are not flammable can be explosive, as evidenced by the explosion at a Georgia, US, sugar refinery that killed a dozen workers and critically injured 11 others in 2008. Despite more than a dozen relevant OSHA directives, there have been more than 250 fires and explosions caused by combustible dust in the past 25 years, resulting in more than 100 deaths and 700 injuries. In addition, it is estimated that for every accidental death in industry there are 20 deaths due to the long-term effects of dust exposure. These deaths are not as sudden – but just as traumatic – and often do not show up as fatalities in the company injury statistics because a worker can be on disability pay for years before passing. There have been many methods developed to control dust over the years, and the solutions are as numerous and different as the materials being handled. Because of the number and diversity of methods employed to control fugitive particulates, material handlers need to do some homework on their individual processes and the potential dust management techniques available to them in order to arrive at the optimum approach for their specific set of conditions.

AUTUMN 2021 . DRY BULK . 27

What is dust?

In an industrial context, dust is a generic term for small, dry, solid particles ranging from approximately 1 - 100 μm in diameter. In bulk material handling, these particles are often created in a wide range of sizes, with larger, heavier particles tending to settle out of the air, while smaller, lighter solids may remain airborne for long periods of time. These tiny solids are easily projected into the air by a variety of forces, settling slowly under the influence of

gravity. For occupational health purposes, airborne solids are categorised by size as either respirable or inhalable. The inhalable dust classification is applied to particles which are typically trapped in the nose, throat, or upper respiratory tract. The EPA describes this category as particles with a median diameter of approximately 10 μm. In contrast, respirable dust is small enough to penetrate deep into the lungs, usually identified as particles under 10 μm in size. These small particles that migrate deep into the respiratory system are generally beyond the body’s natural cleaning mechanisms (such as cilia and mucous membranes) and are likely to be retained. To put that into perspective, a dime is 1000 μm thick, so the most potentially hazardous dust particles are the ones too small to see. In most bulk handling applications, primary attention is generally focused on dust particles smaller than 100 μm (0.004 in.), based on the observation that particles under that size have a tendency to stay aloft once they become airborne.

Sources of dust in bulk handling

Figure 1. The majority of respirable dust particles are too small to see.

Figure 2. The slipstream effect.

Figure 3. Atomised mist is one of the few techniques able to control both surface dust and airborne particulates.

28 . DRY BULK . AUTUMN 2021

Virtually any activity that disturbs a bulk material is likely to generate dust. Substances composed primarily of smaller, lighter particles can create significant volumes of airborne material if left uncontrolled. Bulk conveying operations and trucks or railcars dumping loads of raw material often struggle to manage this fugitive material. And any activity involving front-end loaders or other heavy loading equipment is almost certain to release airborne particles. In operations where containment is impossible and the creation of dust is not preventable, suppression may be the best option. Suppression involves treating the dust particles once they have been released from the bulk material stream, typically using plain water or a water/ chemical solution. Airborne droplets combine with the dust particles, making them heavier so they fall out of the air stream. Some operations may use hoses or industrial-sized sprinklers on outdoor applications, which can be effective at immobilising ground-level particles. Unfortunately, these options usually require large volumes of water, which can create additional complications such as run-off. Aside from the cost of the water, hoses and sprinklers are also fairly localised methods, often requiring frequent repositioning or manual spraying. Their greatest drawback, however, is droplet size: water droplets produced from hoses and sprinklers are simply far too large to have any meaningful effect on airborne dust particles. The size of the droplet is important: hoses and large sprinklers common to large bulk handling operations typically produce droplets between 200 - 10 000 μm in size, which are large enough to create a phenomenon known as the slipstream effect. A slipstream is created when a mass moves swiftly through the air. Like the air moving around an airplane wing and keeping the craft aloft, a slipstream also travels around a large falling water droplet. Smaller dust particles

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Figure 4. Raising the humidity at the point of emission helps control dust at the source.

Figure 5. This atomised mist design employs a 60 hp fan and diesel generator on a roadworthy trailer. can get caught in this slipstream and get directed away from the droplet, remaining airborne. Very small droplets produce virtually no slipstream and linger in the air much longer, increasing the chance of a collision with an airborne dust particle. For this reason, a more effective option for large open areas is an atomised mist, which relies on the principle of creating tiny droplets of a specific size range and delivering them at relatively high velocity over a wide coverage area, inducing collisions with dust particles and driving them to the ground. For large open areas such as storage piles, crushing operations, and loading/unloading stations, basic spraying techniques such as sprinklers or handheld hoses have a tendency to saturate target surfaces, often resulting in excess water that can damage sensitive cargo. The range of these techniques also tends to be quite limited, frequently requiring significant staff time to man the hoses or reposition sprinkler heads. In contrast, atomised mist has proven to be one of the few technologies capable of delivering dust control via airborne capture and surface wetting. Because all of the elements in atomised mist dust control equipment tend to have an effect on each other, each component must be designed to achieve an optimum balance, including pump, nozzles, barrel, and fan. Changing any element can have consequences on droplet

30 . DRY BULK . AUTUMN 2021

size, velocity, spray angle, pattern, and range, and all of these must work together for maximum efficiency. In large operations or facilities that store significant amounts of material outdoors, atomised mist technology delivers highly effective suppression over large open areas, with some equipment capable of covering as much as 280 000 ft2 (more than 26 000 m2 – nearly six football fields) with a single machine. Some manufacturers have even developed turnkey systems that include a diesel generator and electricpowered atomised misting unit mounted together on a roadworthy trailer. Designed for large open-air applications, these systems deliver effective particle control in a highly-mobile platform that can be positioned directly at the source of dust-generating activities. With a range of up to 100 m, the systems can deliver effective particle management on remote sites without an available power supply. Some of these new designs can even be specified with a high-lift pump for drawing water from a stationary source, such as a private pond. Unlike industrial sprinkler systems used for dust management, which can require as much as 500 gal./min. (1893 l/min.) of water, even large atomised mist equipment typically uses less than 40 gal./min. (151.4 l/min.) to help avoid pooling or run-off. Many of these can also be outfitted with a dosing pump to accurately meter in surfactants or tackifiers to further enhance binding of dust particles. Standard designs are typically engineered to use a potable water source, but many can also be outfitted with a selection of filters to handle non-potable water. For applications in which the water contains high amounts of sediment, additional external filters are available. While some atomised mist designs are engineered to run directly from diesel engines as their power source, experience has shown that an electric motor delivers quieter and more durable performance. Maintenance requirements for the electric units are typically minimal, and some suppliers provide a three year or 3000-hour warranty. Of particular interest in certain applications is the evolution of atomised mist technology for odour control. With the development of specialised vaporising nozzles, these systems can create an engineered fog comprised of millions of tiny chemically-enhanced droplets as small as 15 μm in diameter (approximately twice the size of a human red blood cell). Delivered by a special open-ended barrel design containing a powerful fan, these devices can also be mounted on a towable roadworthy trailer fitted with a dedicated water tank that gets filled with a pre-mixed solution of water and highly-effective odour treatment chemical. The water content of the solution quickly evaporates once dispersed into the air, leaving behind the deodorising vapour, which can hang suspended for long periods of time as the microscopic droplets attract and counteract odour-causing molecules. The devices can also be used for active odour control spread over wide areas, as well as topical treatment or a perimeter barrier.

Summary

warranty is the manufacturer’s pledge to replace failed parts within a specified period of time, while the guarantee is that supplier’s assurance of a buyer’s satisfaction. A manufacturer willing to warranty its products for significantly longer than its competitors is demonstrating confidence that the equipment is durable and reliable. Likewise, if a supplier promises customer satisfaction with a money-back guarantee, it is a good indication that the products have been field-proven to perform as advertised.

Users of atomised mist technology can choose from a variety of different designs, including low-turbulence models for applications in which a large airflow would be undesirable – indoor operations, tunnels, conveyor transfer points, etc. – and they can be customised according to the application. Fan-driven units employ a cone-shaped barrel with atomising nozzles in front, a powerful industrial fan in the rear, and can be mounted on a mobile trailer, skid, or fixed tower. These fan-driven machines are typically manufactured in a standard 480 V configuration for the US References 1. Standards: 1926.555 – Conveyors, U.S. Occupational Safety and market, and users can specify voltages to suit their region. Health Administration (OSHA), Department of Labor, Washington, They can be direct-wired or powered by a generator set. D.C. Self-contained, transportable units can be mounted on a roadworthy trailer, with a generator and highly durable electric motor. Modern atomised mist cannons are engineered to deliver portable one-touch operation, with workers able to manage the settings for specific conditions via touch keypad or remote control. They can run unattended for extended periods when connected to a suitable water source, reducing labour and the overall cost of operation vs manual suppression methods. Before making a commitment to a particular dust suppression design, it is a good idea to see the units Eliminate material carryback and increased cost of close-up and get a demonstration of operation involving manual cleanup, damage to belts the equipment in service, rather than and systems, and downtime and lost production. relying solely on spec sheets and videos. Renting a unit before buying Martin® clean belt systems and services ensure can be a valuable experience, your conveyor belts are cleaner, safer, and more especially if the supplier will credit a portion of the rental fee toward the productive by providing unsurpassed cleaning purchase. performance and remote monitoring with industryInspect the materials of construction: is the unit built with leading technology, experience, and knowledge. heavy-duty materials that are likely to withstand the rigours of everyday use, or does the manufacturer use thin sheet metal housings and light-duty components? Does the supplier employ a durable frame and fasteners that lend themselves to FACTORY DIRECT SALES & SERVICE removal and replacement, if a repair becomes necessary? Or is the unit CALL assembled with light-gauge rivets and sheet metal screws that are VISIT MARTIN-ENG.COM unlikely to survive many years of field service? ® Registered trademark of Martin Engineering Company in the US and other select locations. © 2021 Martin Engineering Company. Additional information can be obtained at www.martin-eng.com/trademarks and www.martin-eng.com/patents As with many types of equipment, good indicators of overall quality are the supplier’s warranty and guarantee, not to be confused. The

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Maria Bertzeletou, The Signal Group, Greece, provides a review of fundamentals for the main bulker ship sizes.

32 . DRY BULK . AUTUMN 2021

his year has emerged as a remarkable time for the dry bulk shipping markets as the world recovers from COVID-19 and trade flows increase. Spurred by robust commodities demand, all vessel classes ranging from Handysize to Capesize have seen a healthy rebound of freight rates, with all signs indicating further momentum into the third quarter. Looking back at the performance of the dry freight index by the Baltic Exchange, the industry has seen a dynamic turnaround with levels above 3000 points, due to a high volume of demand for iron ore and coal. As of 30 June 2021, the dry freight index closed at 3383 points, which is approximately six times the value from the prior year (May 2020, 504 points), after the outbreak of the COVID-19 pandemic. Governmental growth targets of the Chinese economy seaborne trade flows have spurred demand for raw materials and increased tonne miles. According to the latest estimates from the World Bank in June, China’s economy will post the highest annual growth in 2021. Assuming the continued suppression of COVID-19, growth is projected to reach 8.5% this year. For the next year, the World Bank predicts growth to slow to 5.4%, as

low base effects dissipate and the economy returns to its pre-COVID trend growth. This year’s Chinese GDP growth will be the highest annual growth in a decade and is well above the country’s official target growth of 6%. In the iron ore trade, the first six months ended with a 2.6% increase in Chinese imports (560 million t) over the same period in 2020. According to the customs data, robust steel production and strong profits at mills fuelled Chinese iron ore demand, sending prices for the raw material to all-time highs. The value of imported iron ore surged 71.7% on an annual basis during the January June period. The surge in Chinese iron imports kept pace during July and ended up 24% higher than the previous year, customs data showed. It is said that the jump in imports mainly came from non-mainstream suppliers as shipments from Brazil are still suffering from the pandemic. With the ban on Australian coal imports still in place, Chinese imports shifted to alternative points of origin, creating a significant impact on the dry bulk freight market dynamics for smaller ship sizes. June was the seventh straight month of this restriction, causing

AUTUMN 2021 . DRY BULK . 33

interesting changes in the relevant trade patterns. Indonesia remained the primary source to feed the need of the world’s second largest economy for coal. In the agricultural segment, China’s corn imports reached the highest level on record in May as the country’s purchases ramped up on growing demand from the feed industry, signalling record high demand for 2021. China’s General Administration of Customs showed that the country imported 3 million t of corn in May, which pushed the year-to-date total of corn imports to 11.7 million t, up more than three times on 2020’s year-to-date total.

Cargo flows

As outlined, Chinese macroeconomic trends and the dynamics of iron ore, coal, and grain imports from the 2020

Jan-Jun 2021

Million tons

Freight rates

world’s second largest economy during the first half of this year influenced the positive growth of seaborne cargo flows. The first half of this year confirmed the strong sentiment for imports as the global volume of export shipments ended at higher levels than the overall figures of last year. The Signal Ocean Platform data per ship size (as demonstrated in Figure 1) provides a thorough picture for the evolution of shipments that supported the euphoria of freight rates with Capesize and Supramax ship sizes driving the growth. The January - June period ended with the monthly average volume of global exported cargo flows for Capesize and Supramax bulkers exceeding the barrier of 30 million t, and recording a 5% increase compared to the annual shipments of 2020. In the Panamax segment, levels at an average trend of more than 26 million t are seen, up 4% from last year’s total, whereas in the Handysize segment the increase is of a smaller magnitude of 3.5%, at an average figure of above 26 million t.

Capesize

Panamax

Supramax

Handysize

Figure 1. Signal Ocean Platform data: monthly average export volumes for dry bulkers, per ship size, 2020 compared to 1H21 volumes.

Figure 2. Signal Ocean Platform data: dry freight market (US$/t) in major trading routes, per ship size, 2020 - 2021.

The dynamics of Chinese economy for iron ore, coal, and grain imports, along with the growth of cargo flows spurred a sustained upward freight market sentiment. This evolution of upward monthly movements during 1Q21 and 2Q21was kept during July with an easing of sentiment in the Capesize segment. Figure 2 plots the performance of market rates (US$/t) for major loading areas of iron ore, coal, and grains towards the Far East from the beginning of 2020 up to now. The upwards trend of freight rates from July 2020 up to July 2021 has been impressive, with Handysize recording the strongest rebound (more than double US$/t rates) compared to larger bulkers, Capesizes. In the Australia to Far East route, Handysize rates posted 154% y/y increase, whereas in the Supramax segment, ECSA to Far East, rates almost doubled from July 2020. In the Capesize segment, the Brazil to North China route posted the highest point in May and eased during June and July, with 41% y/y growth. In the Panamax segment, rates have more than doubled between July 2020 and July 2021 in the Continent to Far East (up 110% y/y), which reflects the shifting trend that was detailed at the beginning of this year for the change of origin for Chinese coal imports.

Ballasters' view

Figure 3. Signal Ocean Platform data: bulkers sailing in ballast status, per ship size, May - August 2021.

34 . DRY BULK . AUTUMN 2021

The trend of ballast seagoing dry bulkers kept easing during 2Q21 with higher volatility during July, when freight rates started a short-term declining trend. However, figures started to fall in the first days of August, indicating that demand for seaborne transportation is still there to absorb the surplus of ship capacity. This could indicate that the seasonal slowing down of freight market sentiment may not necessarily be experienced. Figure 3 indicates that the number of seagoing Capesizes in ballast remained around 540 ships between

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Figure 4. Signal Ocean Platform data: bulkers average laden speed, per ship size, 2021. May and July, with levels falling nearer to 500 ships at the beginning of August. In the Panamax segment, the average trend of July for seagoing ballasters nearly exceeded 800 ships, however, the beginning of August signalled a decreased number of ships, below the barrier of 800. In the Supramax segment, July also brought accelerated pace with an average number of 750 ballasters, whereas in the Handysize segment, July kept lower levels than 700 ballasters, which underlined stronger freight rates compared to the Supramax and Panamax segment. August started with around 650 Handysize bulkers sailing in ballast. Overall, the beginning of the first week of August brought steep declines in the number of ballasters for the

main bulker ship sizes compared to end-July levels. However, seagoing Supramax bulkers appear to be at 40 ships lower than the beginning of January. Ballasters’ view confirmed the strongest performance of market rates US$/t during 2Q21, and although an over performance in the Handysize segment between July 2020 and today was experienced, the figures of seagoing bulkers in ballast in the first days of August imply that Supramax ships bear more potential for a noticeable upward correction of freight rates in 3Q21. Nevertheless, it is worth noting that the Chinese economy will continue to fuel optimism in the freight market sentiment for larger bulkers such as Capesize and Panamax.

Laden speed

As a reflection of the positive freight market movements and optimistic expectations for a sustained recovery in the coming months, the fluctuation of the laden speed per bulker size since the beginning of the year has been examined, as seen in Figure 4. The results show an increasing trend among all sizes that implies the firm willingness of ship owners to absorb the positive fluctuations of freight rates and decrease the number of sailing days in ballast status by securing the most profitable employment for the ships with voyage optimisation. In Figure 4, it is clear that the higher trend of average laden speed has been recorded in the Handysize segment at levels near to 11.7 knots, compared to the lowest point of 11 knots at the end of January. The average laden speed of Handysize bulkers follow almost the same pattern of Supramax, with higher indications at the end of July. In larger ship sizes, Capesizes posted an accelerated trend above the average laden speed of Panamax bulkers during the period of May June at levels of approximately 11.4 - 11.5 knots. July ended with higher levels of laden speed for Panamax bulkers as it seemed that the easing trend of Capesize freight rates diminished the need for increased sailing speed.

Conclusion

The dry bulk market seems well supported by vessel demand due to strong Chinese economic activity and infrastructure plans after COVID-19. The question now is how will supply respond, also taking into consideration the relatively modest fleet growth that is planned over the coming period. Could the relatively high levels of congestion and delays at key port hubs underline further the upward trend of freight rates? The current trends offer signs of a declining number of ballast ships and this could continue triggering an upward curve of freight rates. It remains to be seen whether 2H21 will bring the same firm level of freight market rates US$/t as of 1H21, however, there is always a summer lull that may cause downward direction in the short-term.

Peter Hirthe, Great Lakes St. Lawrence Seaway Development Corporation, USA, details the binational maritime gateway and the technology utilised to keep cargo moving safely and reliably.

he St. Lawrence Seaway directly serves an eight-state, two-province region that accounts for one-quarter of the US gross domestic product (GDP), one-half of North America’s manufacturing and services industries, and is home to nearly one-quarter of the continent’s population. On its own, the Great Lakes region of North America would represent the world’s third largest economy with a foundation built on mining, manufacturing, steelmaking, and agriculture. The Great Lakes St. Lawrence Seaway System is the

binational maritime gateway between this economically powerful region and the world, offering a safe, reliable, and sustainable supply chain for waterborne commerce. Since the Seaway opened in 1959, more than 3 billion t of cargo valued at over US$450 billion has transited the binational waterway. The St. Lawrence Seaway is comprised of 15 locks that lift and lower vessels the height difference equivalent to a 60-storey building, between the Atlantic Ocean and Lake Erie.

AUTUMN 2021 . DRY BULK . 37

Seven of these locks are located between Montreal and Lake Ontario, including the two US locks in Massena, New York. The other eight locks of the Welland Canal are adjacent to Niagara Falls, transiting vessels between Lake Ontario and Lake Erie. Administration of the binational waterway is shared by two entities, the US Great Lakes St. Lawrence Seaway Development Corporation within the US Department of Transportation, and the Canadian St. Lawrence Seaway Management Corporation, a not-for-profit corporation established by the Government of Canada. There are over 100 commercial ports of varying capacity and capability within the Great Lakes St. Lawrence Seaway System stretching from Montreal, Quebec to Duluth, Minnesota. Each port has maritime-purposed infrastructure and over 40 of them offer intermodal connectivity to either a Class 1 or short line railroad and/or the interstate highway system, providing access well into the heartland of North America. The experienced stevedore services offered throughout the system handle a cargo mixture of bulk, breakbulk, project cargo, and containers. The primary global markets served include, but are not limited to, Europe, North Africa, South America, and the Middle East. Annual commerce on the Great Lakes St. Lawrence Seaway System typically exceeds 180 million t and serves US farmers, manufacturing workers, miners, and commercial interests throughout the Great Lakes region. With capacity to grow, the St. Lawrence Seaway provides a simpler, more direct, water-centric transportation route to shippers doing business with the Great Lakes region. Virtually every type of bulk and general cargo commodity moves on the Great Lakes Seaway System, including iron ore for the US steel industry; limestone for construction and steel industries; coal for power generation and steel production; grain exports from US farms; general cargo such as iron, steel products, and heavy machinery; and cement, fertilizer, salt, and stone aggregates for agriculture and industry. Additionally, the Seaway has emerged as a critical transportation route for the shipment of large components essential to the wind energy industry.

number of international vessel incidents in the Seaway has decreased significantly. From 1996 - 2006, the average number of incidents was 19 per year. However, from 2007 - 2020, the average number of incidents declined to only six per year and the 2020 navigation season was one of the safest on record with only four incidents. This positive development can be attributed to several factors, including the US-Canadian Enhanced Seaway Inspection Program, the use of the Seaway’s automatic identification system (AIS) vessel traffic management technology beginning in 2002, the use of the Seaway’s hands-free mooring system beginning in 2018, the well-trained and skilled GLS lock operations and maintenance staff, and a major fleet renewal programme implemented by many of the Seaway’s commercial carriers. Since the Seaway’s opening in 1959, it has consistently maintained a near-perfect system reliability rate above 99% for commercial users. In the US sector of the waterway during the 2020 navigation season (1 April - 30 December 2020), the US Seaway workforce operated and maintained the waterway and lock system at a reliability rate of 99.3% and lock availability rate of 99.96%, despite the challenges of operating during a pandemic. This high mark of success is due primarily to the efficient management and operations of the locks and control of vessel traffic. Global customers from nearly 50 countries return each year to use the Seaway because of the waterway’s strong safety record, efficient operations, and near-perfect reliability rate.

Technology to keep the cargo moving

The Seaway leverages technology to improve system utilisation. State of the art technology is transforming Seaway operations and allowing for gains in competitiveness. The list of cutting-edge technologies implemented or soon to be introduced by the Seaway is impressive. It includes the AIS, the draft information system (DIS), and the hands-free mooring technology. Mandatory Global Positioning System-based (GPS) AIS carriage became effective on the St. Lawrence Seaway on 31 March 2003. The Seaway became the first inland waterway in the Western Hemisphere to implement an operational AIS vessel traffic Safety and reliability, the driving forces services system. All commercial vessels transiting in Seaway waters from Montreal to mid-Lake Erie are capable of The continued safety and reliability of the St. Lawrence ship-to-ship, ship-to-shore, and shore-to-ship communication Seaway is the foundation upon which increases in maritime under all weather conditions on a 24/7 basis. cargo can be promoted and accommodated. The Seaway is A major enhancement to the AIS occurred in July 2012 one of the world’s safest waterways and that safety record with implementation of the DIS. DIS is an onboard continues to improve. Over the past 25 years, the average technology, providing Seaway mariners with real-time information on current and projected distances between a vessel’s keel and the river bottom using real-time, threedimensional displays. The Seaway is the first inland waterway in the world to implement this technology. Vessels with DIS technology are permitted to sail at a draft of up Figure 1. Hands-free mooring unit fully operational at Eisenhower and Snell Locks. to 3 in. above the published

38 . DRY BULK . AUTUMN 2021

maximum, which could allow for transport of as much as 360 t of additional cargo per voyage. AIS and DIS have greatly enhanced the safety and efficiency of the waterway and have improved Great Lakes Seaway System maritime security. By pairing these navigation technologies, precise vessel traffic management has been enhanced more than ever, and ships equipped with these technologies can travel the Seaway more safely and with more cargo. The US and Canadian Seaway Corporations are currently assessing how to improve and enhance their joint vessel traffic management system. Working with the Department of Transportation’s Volpe National Transportation Systems Centre, studies are underway on how to enhance the existing AIS real-time data to forecast vessel traffic movements farther into the future. This technology promises to be a ground-breaking advance in the way the Seaway manages, schedules, and predicts vessel traffic throughout the Great Lakes St. Lawrence Seaway System and will provide associated environmental, economic, and mobility benefits. Both the US and Canadian Seaway entities have been investing heavily in infrastructure rehabilitation and modernisation. Since 2009, the US Seaway has invested nearly US$180 million, and together with the Canadian Seaway, more than US$1 billion has been invested in rebuilding and improving the lock and channel infrastructure. Major infrastructure projects completed over that time period included maintenance dredging, lock miter gate and culvert valve machinery upgrades, culvert valve replacements, hands-free mooring (HFM) installation at the locks, gate-lifter upgrades, miter gate rehabilitation, tugboat replacements, and various other structural and equipment repairs and/or replacements. One of these projects, the HFM system, has been in use at all US and Canadian Seaway locks since June 2019. The new technology allows commercial ships to transit safely and efficiently, while also enhancing workplace and operational safety conditions. In May 2015, the Seaway’s HFM technology was recognised by the Organization for Economic Co-operation and Development (OECD) with the ‘Promising Innovation in Transport Award’. This technology has been used previously to secure ships to dock walls, but this is the first time it is being applied to secure ships through a lock transit. The HFM system uses vacuum pads, each of which provides up to 20 t of holding force, mounted on vertical rails inside the lock chamber wall to secure the ship during the lockage process as it is raised or lowered while keeping it at a fixed distance from the lock wall. The new technology is saving shippers time and money, and allowing more ships, globally, to utilise the waterway. The combined Canadian and US reinvestment in Seaway infrastructure over the last decade is impressive, and when adding the amount of both public and private Great Lakes Seaway stakeholder capital investments since 2009, that total grows to almost US$7 billion. Some of those private investments have included fleet renewal programmes undertaken by shipowners who transit the St. Lawrence Seaway. As the most energy efficient way to move cargo with the lowest carbon footprint, the newly-built ships have

Figure 2. Gates opening at Eisenhower Lock.

Figure 3. Aerial view of the St. Lawrence Seaway. an important role to play enhancing trade in a highly sustainable manner. Maritime navigation is one of the most – and in many cases the most – environmentally friendly modes of transportation by various measures. According to the most recent study on the subject, Great Lakes Seaway commercial navigation carrying 1 t of cargo for 1 km emits 19% fewer greenhouse gases (GHG) than rail and 533% fewer GHGs than trucks. With superior fuel efficiency and fewer GHG emissions per tonne than trucking or rail, Seaway shipping leads the way in environmentally smart transportation; it is North America’s green transportation corridor. The St. Lawrence Seaway was conceived and built to be a bulk commodity transportation route. Today, it has realised that vision and is one of the safest and most efficient bulk commodity marine transportation routes in the world.

AUTUMN 2021 . DRY BULK . 39

Fastest route to the Heartland of North America The Great Lakes St. Lawrence Seaway System ²ƊǞǶǞȁǐ ǏȲȌǿ 0ɐȲȌȯƵ‫ ة‬ǏȲǞƧƊ ȌȲ ²ȌɐɈǘ ǿƵȲǞƧƊ‫ ة‬ɈǘƵ JȲƵƊɈ mƊǲƵȺ ²Ɉ‫ خ‬mƊɩȲƵȁƧƵ ²ƵƊɩƊɯ System enables carriers to bring cargo deep into the Heartland of North America. ÀǘƵ ‫ ׀׀ׇة׃‬ǲǞǶȌǿƵɈƵȲ ɩƊɈƵȲɩƊɯ ƧȌȁȺǞȺɈȺ ȌǏ ɈǘƵ ²Ɉ‫ خ‬mƊɩȲƵȁƧƵ ªǞɨƵȲ‫ ة‬²Ɉ‫ خ‬mƊɩȲƵȁƧƵ ²ƵƊɩƊɯ‫ ˛ ة‬ɨƵ JȲƵƊɈ mƊǲƵȺ ƊȁƮ ƧȌȁȁƵƧɈǞȁǐ ƮƵƵȯٌƮȲƊǏɈ ƧǘƊȁȁƵǶȺ‫§ خ‬ȌȲɈȺ ƊȺ ǏƊȲ ǞȁǶƊȁƮ ƊȺ !ǘǞƧƊǐȌ‫ ة‬XǶǶǞȁȌǞȺ ƊȁƮ (ɐǶɐɈǘ‫ ة‬wǞȁȁƵȺȌɈƊ ƊȲƵ ƵƊȺǞǶɯ ƊƧƧƵȺȺǞƦǶƵ‫خ‬ Why stop at the East Coast when you can sail this close to your last mile? ÀǘƵ ƦǞȁƊɈǞȌȁƊǶ ²ɯȺɈƵǿ ƧȌȁȺǞȺɈȺ ȌǏ ׁׁ‫ ׀‬ȯȌȲɈȺ Ǟȁ ɈǘƵ ÇȁǞɈƵƮ ²ɈƊɈƵȺ ƊȁƮ !ƊȁƊƮƊ‫ خ‬²ǲǞǶǶƵƮ ȺɈƵɨƵƮȌȲƵȺ‫ ة‬ǏȲƵǞǐǘɈ ǏȌȲɩƊȲƮƵȲȺ‫ ة‬ƮȌƧǲ ƊȁƮ ƧȲƊȁƵ ɩȌȲǲƵȲȺ‫ ة‬ɨƵȺȺƵǶ ƊǐƵȁɈȺ ƊȁƮ ǿȌȲƵ ƊȲƵ on hand to unload and load dry bulk cargo and swiftly connect ships with trains and trucks for last mile delivery. àǞɈǘ Ɗ ƧȌȁȺǞȺɈƵȁɈ ȲƵǶǞƊƦǞǶǞɈɯ ȲƊɈƵ ƵɮƧƵƵƮǞȁǐ ‫ ةڭ׉׉‬ɈǘƵ JȲƵƊɈ mƊǲƵȺ ²Ɉ‫ خ‬mƊɩȲƵȁƧƵ ²ƵƊɩƊɯ ²ɯȺɈƵǿ ȯȲȌɨǞƮƵȺ ǐǶȌƦƊǶ ȺǘǞȯȯƵȲȺ ɩǞɈǘ Ɗ ȺǞǿȯǶƵ‫ ة‬ƮǞȲƵƧɈ ȲȌɐɈƵ ɈȌ ɯȌɐȲ ƮƵȺɈǞȁƊɈǞȌȁ‫خ‬

FOR DETAILED INFORMATION CONTACT:

PETER HIRTHE International Trade Specialist Great Lakes St. Lawrence Seaway Development Corporation Peter.Hirthe@dot.gov

+1-414-551-3161

Dry Bulk Cargo our specialty The ports and cargohandlers throughout the Seaway System specialize in moving dry bulk cargoes. Moving with ƵǏ˛ ƧǞƵȁƧɯ ƊȁƮ ȲƵǶǞƊƦǞǶǞɈɯ‫ ة‬ bulk cargo is a mainstay of the System. New terminals with advanced and enclosed conveyor systems serve as key connectors to the last mile destination. Bulk cargo handled in the Seaway System includes products that are loose ƊȁƮ ɐȁȯƊƧǲƊǐƵƮ‫ ة‬ȺɐƧǘ ƊȺ ǐȲƊǞȁ‫ ة‬ȺƊȁƮ ƊȁƮ ƧȌƊǶ‫ ة‬ which are typically loaded and unloaded via ƧȌȁɨƵɯȌȲ ȺɯȺɈƵǿȺ‫ ة‬ƊȺ ɩƵǶǶ as break bulk cargoes in ƦƊǐȺ‫ ة‬ƮȲɐǿȺ ȌȲ ƦƊǶƵȺ‫خ‬

Great Lakes region Economic Impact $6 trillion ANNUAL ECONOMIC OUTPUT

51 million

JOBS

30%

U.S./CANADIAN WORKFORCE

30%

COMBINED CANADIAN-U.S. ECONOMIC ACTIVITY

3rd largest ECONOMY IN THE WORLD, IF IT WERE A COUNTRY

Carl Donnelly, Telestack, Northern Ireland, explains how the launch of a new shiploading solution has opened up a host of mobile possibilities for those operations with a narrow jetty. Figure 1. The introduction of the Telestack All-Wheel Travel direct truck to ship shiploading system has transformed the flexibility and rapidity given to operators, not only in terms of speed but also the agility achieved through the ability to operate and move large scale shiploaders within the limited space on current jetty/docks.

42 . DRY BULK . AUTUMN 2021

he introduction of mobile equipment has arguably triggered one of the most significant shifts in the ports sector over the last century. The options offered by mobile equipment in terms of flexibility, productivity, and compliance, has gone a long way to highlight the rigidity and limitations of traditional ‘fixed’ systems in the ports. This flexibility along with the ability to meet all the necessary operational metrics with ease, coupled with the ability to use this on multi-cargo, has prompted a definitive global trend towards mobile equipment in the port, accelerated by the innovative nature of the sector.

Truck to ship

The introduction of the Telestack All-Wheel Travel direct truck to ship shiploading system has transformed the flexibility and rapidity given to operators, not only in terms of speed (achieved by faster loading rates) but also the agility achieved through the ability to operate and move large scale shiploaders within the limited space on current jetty/docks. The surge in demand for this type of system encouraged Telestack to develop this concept further with the introduction of a high-rise chassis that enables the unloading truck to drive under the system, opening up a host of options for jetties that are restricted in width (<25 m – 80 ft wide jetty/dock). The demand for such a system is particularly strong in regions with developed infrastructure which would not allow for expansion but where the desire to ‘move to mobile’ exists based on the level of success achieved by fellow multi-purpose ports.

Solving operators’ problems

Before the development of the high-rise system, mobile solutions would not be a viable option for those operations loading Handymax/Panamax type vessels. This would render the operator’s equipment selection limited to typical fixed conveyor systems or grab/mobile harbour crane systems. In modern developed ports around the world, where space is such a commodity, certain infrastructures could only consider fixed systems as there was not enough space to allow for mobile operating systems, until the high-rise design eliminated this issue. The TB range of radial telescopic shiploaders from Telestack offers a range of mobility features including in-line, parallel travel, radial, and steering. This results in an incredibly mobile all-wheel travel system, ensuring the unit can move with speed, ease, and accuracy from ‘hold to hold’ during the loading operation. The high-rise design allows the unloading truck to drive underneath the shiploader chassis with ease marking a host of options for the compromised jetty. These all-wheel travel high-rise mobile shiploading systems represent a new generation of mobile solutions, offering the performance of traditional systems but with the added benefits of mobility, flexibility, and ultimately a lower cost per tonne achieved by increased production rates, reduced cycle times, and reduced labour costs – now within a restricted jetty. The added ability to truly customise the product to the specific needs of the customer, the locality, the commodity, and the quayside is yet another reason why the sector was so keen to push for a mobile solution within the restricted jetty.

Customisation is key

Telestack offers a level of customisation that is relatively unmatched in the business and it is this level of personalisation that makes the company so successful in this area. The ability to incorporate a host of dust containment/extraction options to meet the needs of the local and regional environmental regulations, whilst ensuring that it can work with more than one material (taking into consideration their differing weights, densities, and flow) has meant a truly tailored solution is offered to the customer. In a recent installation of the high-rise design in South America, the unit was designed with double sealed dust covers, fully sealed transfer points, dust extraction filters at transfer points, undertrays to prevent any spillage on the jetty, and a 20 m (60 ft) telescopic discharge chute to allow controlled trimming of the hold during the loading process. This level of customisation ensures that the system is fully tailored to the environmental needs of the operation.

Electrical sophistication

Telestack is also at the leading edge of electrical sophistication and the company boasts a growing and highly skilled electrical team dedicated to ensuring that any Telestack unit can fully integrate into the port’s operating system successfully. In the same installation in South America, the unit was fitted with a customised IP 66 Rated

AUTUMN 2021 . DRY BULK . 43

diagnostic control panel complete with an easy-to-use touchscreen. For the operator, who will have to manage several different elements of the shiploading process for example, the Telestack solution will offer the ability to monitor and control the plant from a single location using radio remote control. The integrated generator manages all functions of the shiploader resulting in an autonomous and independent unit with the ability to switch to shore power as and when required. The Telestack electrical engineering team is one of the fastest growing departments within the business and the company is continually invested in working with the client to meet and exceed their electrical needs. This level of personalisation can also extend to guarding, handrails, dust containment, and much more. The need for flexibility to adapt to differing operational needs in the handling of any dry bulk in pit to port, pit to plant, or port to plant is important. One of the main reasons for the growth within the mobile sector is the ability to use the same equipment along several parts of the logistics chain. The mobility factor ensures that a company can use the equipment as required in one area of the operation and move to another area with ease and speed, or indeed move the units to storage areas, as and when required. This is flexibility that simply cannot be achieved by a traditional fixed infrastructure.

Figure 2. The high-rise design of this all-wheel travel shiploading system allows the unloading truck to drive underneath the shiploader chassis with ease, opening a host of options for the compromised jetty.

Figure 3. Fully mobile all wheel travel shiploading system comprising a TB60 All Wheel Travel shiploader and Titan dual-feed All Wheel Travel 800-6 Bulk Reception feeder discharging two trucks simultaneously loading to Panamax/Post Panamax vessels in Oman.

44 . DRY BULK . AUTUMN 2021

Adapt to changing demands

In the current climate where the nature of any given business may have to change in response to changing commodity demands, mobile equipment allows the owner to react quickly. The smart design means that the unit can be easily dismantled, packed into containers, and relocated to another site or country as the demand requires. The versatility and multi-faceted use in a variety of global applications (sea ports, river terminals, mines, quarries, power plants, cement plants, steel mills, etc.) coupled with the high resale value ensures there is always a high demand for the mobile product. Mobile equipment often helps reduce initial CAPEX as they are typically significantly cheaper to buy than harbour cranes and stationary systems. The mobile equipment also means there are significantly lower civil engineering and infrastructure costs, and they can easily link into existing material handling systems. The customer can very quickly be generating revenue streams. Typically designed to not require any on-site welding, a standard shiploading unit can be transported in several 40 ft containers and be operational within a few weeks – all with limited/no planning requirements or restrictions as found with stationary solutions. Moreover, the operating costs are significantly less than traditional systems. The ease of use means that all machines are simple to operate, maintain, and troubleshoot as there are no complicated electrics/ electronics to manage, and hydraulics can be kept to a minimum. With over 35 years of experience and thousands of global installs, Telestack has earned its reputation in the international marketplace for well-designed and nononsense mobile bulk material handling equipment. This reputation as an innovator within the industry is as a result of its long history of bringing real solutions to problems that have long-plagued the industry. As Telestack is part of Astec Industries Group, its customers in South America can rely on local support from Astec-owned facilities in Chile (Santiago) and Brazil (Minas Gerais), as well as a growing network of experienced material handling agents that are focused on supporting the sea ports and river terminals there and in other international regions. In addition, Telestack’s customers are also benefitting from the support from the Telestack helpdesk. The helpdesk, along with the help of the optional integrated Telematics feature, can support the operation to remotely troubleshoot any issue in real-time. This provision has proven invaluable in the current climate where COVID-19related restrictions have prevented travel and access to some sites, and the operation has benefitted greatly from having the additional support from Telestack remotely. The engineering acumen within Northern Ireland is renowned globally and the expertise within Telestack has grown and developed significantly over its tenure. The company's equipment is involved in some of the most ground-breaking and forward thinking projects across the globe, with the company gaining serious traction in other industries such as rail, power, cement, and steel plants.

David Przednowek, CN, Canada, provides an overview of the evolution of the grain supply chain in western Canada.

here has been a lot of change in the end-to-end grain supply chain in western Canada since the first elevator was built in western Canada in the early 1880s. Before the country elevator arrived, grain was bagged, delivered to flat warehouses, and shipped by rail in boxcars. Wooden elevators dotted the country landscape in western Canada through the 20th century, with the peak number of elevators hitting approximately 6000. Over time, wood has given way to high capacity concrete and/or steel facilities loading 100+ cars in a

single placement, and the horse-drawn wagon and 3 t grain truck have been replaced with the Super B delivering 40 t of grain or more at once. It was only the early 1990s that saw the first-generation 100+ car loading facilities begin to emerge. There has been a flurry of activity in new elevator construction over the past seven years in particular, and CN is proud that customers have chosen to locate 70% of the new high throughput elevators built in western Canada since 2015 on CN lines.

Figure 1. Davidson, Saskatchewan, Canada.

AUTUMN 2021 . DRY BULK . 45

Besides brand new elevators, customers located on CN have also been investing in expanding existing facilities by increasing capacity to accommodate unit trains, as well as taking advantage of CN’s rate incentive structure to make rail operations more efficient. Well ahead of the curve, five years ago CN introduced a unique customer incentive called the Winter Ready programme to encourage investment in infrastructure that allows for more efficient rail operations, especially during winter. Before a loaded grain train can be pulled from a loading origin, the train’s braking system must be charged with air to allow for safe train operation. In extreme winter temperatures, the duration of time

required to fully charge a train with air can represent a significant loss in productivity. Today, over 90% of CN’s grain unit train loaders in western Canada have taken advantage of this win-win solution – saving up to 12 hours in cycle time in the coldest winter conditions. Last summer CN rolled out a new rate incentive structure, building on the Winter Ready programme. CN’s Ready Train Incentive encourages grain customers to invest in hook-and-haul infrastructure, saving time and creating capacity. Qualifying facilities must be able to receive and release 100+ cars on a single length of track – not multiple ladder tracks that take longer to serve going in and out. The facility must be equipped with a power switch that can be operated remotely by CN, making for safer, more efficient rail operations, and a train must be loaded in less than 15 hours. The faster a train can clear the CN main line, the more capacity is freed up to move all the other traffic running on the line – including more grain. Of all the loop track country elevators in western Canada, CN accesses two out of three, and most of those are served exclusively by CN. If overall cycle time can be reduced by even one or two days per trip, that translates into a savings of weeks over the course of the crop year, meaning more trips can be made with that set of hoppers – and that ultimately means more grain moving on CN’s network.

Hopper car fleet innovation Figure 2. G3 Terminal in Vancouver, BC, Canada.

CN’s approach to fleet composition for the movement of bulk grain has fundamentally changed over the past five years. What was once a fleet dominated by leased and owned CN-supplied hoppers is now much more diverse. It includes customer-supplied high capacity hoppers integrated into CN’s common pool; brand new CN hopper cars; and high capacity, customer-controlled private cars. It does not matter to a producer whether it is a CNsupplied hopper car or a customer-supplied hopper car being spotted for loading at a grain elevator – those hoppers are making space for more grain to be delivered – and a tonne delivered is a tonne paid for.

Steady growth in the car spotting programme in western Canada

Figure 3. Davidson, Saskatchewan, Canada.

46 . DRY BULK . AUTUMN 2021

CN’s Grain Plan for the 2021 - 2022 crop year included guidance on CN’s maximum sustainable end-to-end grain supply chain capacity for bulk grain movement for both CN-supplied hoppers and private hoppers combined – 6900 hoppers per week outside of winter and 5350 hopper cars per week during winter. Positively, the size of the hopper car spotting programme that CN delivers on a weekly basis has kept up with the annual compound growth increase in the size of western Canadian grain production. The shift to private cars – in corridors where it is operationally efficient to do so – is a fundamental change in how customers can secure car supply to move grain on CN in western Canada. What was once 10 or 20 private cars per week has increased to more than

1000 cars per week at times. Additionally, a large segment of this car supply is comprised of new generation, high capacity cars.

The next generation of high efficiency hopper cars

For quite some time, a significant portion of the overall grain hopper car fleet operating in western Canada has been approaching the end of its useful life. Provincial and federal government hopper car build programmes from the 1970s into the early 1980s brought approximately 10 000 hopper cars into service for grain movement. Most of these hopper cars were low capacity, 59 ft long, 4550 ft3 cars weighing 63 000 lbs empty (tare weight). Over time, the market evolved, and the jumbo 5150 - 5250 ft3 capacity hopper car came onto the scene, with an average length of 58 ft. In spring 2018, due in part to the investment certainty bought about by changes in the Government of Canada’s maximum revenue entitlement concerning grain movement from western Canada to the Ports of Vancouver, Prince Rupert, and Thunder Bay, CN embarked on a significant hopper car fleet renewal programme, announcing the acquisition of 1000 new generation, high capacity hopper cars. CN followed up this announcement in July 2020 with the announcement of the acquisition of an additional 1500 high capacity hopper cars. Compared to the old Government of Canada hopper cars, these new high capacity hopper cars are significantly shorter in length, allowing eight to 10 more cars to be fit on the same length of track. Furthermore, at a capacity of 5431 ft3, the new hopper cars are almost 900 ft3 greater in maximum grain handling capacity compared to the Government of Canada hopper cars. Recognising that different types of grain have different densities, combined with the fact that the maximum permissible weight of a loaded hopper car varies depending on track characteristics (to a maximum of 286 000 lbs gross weight), the increase in maximum payload varies. For example, wheat density is roughly

48 lb/ft3 compared to 40 lb/ft3 for canola. The biggest incremental pick-up for the new high capacity cars is with lighter density commodities such as canola, barley, and oats. Over the past four crop years, as a result of the wide variety of fleet solutions that customers are able to utilise, average tonnage shipped per car on CN out of western Canada has increased by over 4 t, or over 4%. Moving more tonnage per car means moving more tonnage during peak hopper car demand in the autumn and winter months after harvest. That also means grain producers being able to deliver more grain into the country elevator network. Between loading more tonnage in each car and being able to spot and pull more cars on the same length of track at the origin loading facility, the incremental tonnage gain adds up fast, especially for lighter density commodities – almost 20% more wheat moved per train and almost 40% more canola where a high efficiency loop track facility is considered. In May 2021, CN announced its purchase for 1000 new generation, high capacity hoppers. This acquisition is part of a larger programme to renew a fleet of 3500 hopper railcars over the next three years. Building on CN’s ongoing grain hopper car fleet renewal programme that began in August 2018, CN’s new generation hopper car fleet will grow to 6000 hopper cars.

Closing the loop

The most efficient supply chain model for grain unit trains is hook-and-haul at both ends with one carrier in the route – and that carrier will be CN for two state-ofthe-art grain export terminals in the Port of Vancouver. Besides the significant leaps forward in grain handling and shipment efficiency being driven in the Prairies of western Canada, the grain supply chain has taken another huge step forward that will allow the efficiency of the loop track country elevator model to be fully realised. Two brand new export terminals in the Port of Vancouver – served exclusively by CN – have recently opened. The first of these facilities built by

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Figure 4. Vegreville, Alberta, Canada.

Figure 5. Maymont, Saskatchewan, Canada. G3 Canada Limited on the North Shore of Vancouver is equipped with three loop tracks, with the largest capable of accommodating trains up to 8793 ft in length; trains will unload in continuous motion using the same motive power that delivered the train to the facility. The second is Fraser Grain Terminal, which is a partnership between Parrish & Heimbecker and GrainsConnect Canada. This state-of-the-art facility is served directly by CN and is able to receive up to 120 car trains on a semi-loop. It will create an additional 3.5 million t of nameplate export capacity on the west coast of Canada. Having just one rail carrier in the route is where there are additional supply chain efficiencies to be had in the model for these two new export destinations for grain – no complex hand-offs between carriers requiring extra co-ordination and planning to suit limited planning windows at extremely busy ports. This model is also ideal for private cars – the ability to keep a private, customer-controlled unit train cycling as a discrete set without breaking up the train to spot into ladders is the ultimate in efficiency.

Investing in the future

All of the players in the end-to-end grain supply chain, including CN, grain companies, and grain producers, have

48 . DRY BULK . AUTUMN 2021

been making significant capital investments to increase productivity and efficiency. CN is seeing the benefits of CN’s CAN$10 billion worth of investments in the last three years to extend rail sidings, double mainline tracks, acquire 260 new high horsepower locomotives, and acquire new high capacity grain hopper cars, as well as investing in safety and capacity-enhancing technologies. Besides close to 150 miles of double tracking projects, CN added a number of long sidings and carried out a series of major yard expansions across western Canada. CN plans to spend CAN$3 billion of new capital investments in 2021, maintaining its North American leading position among Class I railways in terms of capital investment as a percentage of annual revenues in an industry that is a leader amongst industries in this regard. The investments include many major, multi-year maintenance and capacity-enhancing projects, all aligned to market demand. There is over CAN$1.5 billion on track maintenance to support safe and efficient operations, including the replacement of rail and ties, bridge improvements, as well as other general track maintenance. CN plans to spend more than CAN$250 million on new track capacity, which includes double tracking projects along with the construction of new sidings and yard track expansion projects. And there is more than CAN$100 million on strategic projects in technology to enable the next competitive level of modern railroading operation, such as rail automation, dispatching systems, mobility, and inspection systems.

Leading the charge

CN’s innovative approaches to hopper car fleet supply and management, combined with strong operational performance and significant investment in network infrastructure and other resources, have translated into stronger grain movement and have contributed to CN recording its best ever grain shipment volume during the 2020 - 2021 crop year. CN moved over 31 million t of Canadian grain via carload in the 2020 - 2021 crop year, exceeding the previous record set in 2019 - 2020 by over 1.6 million t. CN also moved over 1.1 million t of grain direct from western Canada in containers, in addition to volumes moved via container from eastern Canada. CN also recorded 14 consecutive months of record grain movement between March 2020 and April 2021. This record grain supply chain performance also occurred at a time when overall traffic levels, from September 2021 forward, were actually higher than at the same time the year previous, with CN also notching monthly record volumes for commodities such as intermodal, lumber, propane, and fertilizer shipments. As a backbone of the economy, CN remains committed to ensuring it evolves as the grain landscape in western Canada continues to strive for greater efficiency to help move grain to market. The future is bright for the grain business in western Canada, and CN is working with its supply chain partners to be leading the charge.

Fernando Luengo, Symaga, ASM South East Asia, explains how to improve the sustainability of silos, from producing and consuming renewable energy on-site, to storing renewable fuel feedstocks.

ast year, Symaga installed a photovoltaic solar energy generation plant to power its factory in Villarta de San Juan, Spain, taking one more step in the company's commitment to sustainability and respect for the environment which was consolidated in 2018, with the Environmental Management System ISO 14001. Within the ‘Symaga Continuous Improvement for Manufacturing Plan’, the company launched a global vision for sustainability. Among the key goals of the plan, the reduction of both energy and natural resources used in production, as well as waste management improvements, took centre stage. The objectives of reducing energy consumption and waste are aligned with the corporate social responsibility plan on environmental protection and

pollution prevention, since they contribute to the energy transition and the decarbonisation of the activity, which ultimately reduces global warming of the planet. Two parallel projects were launched to ensure that the Symaga factory had a more sustainable production. The first project was the optimisation of the resources and waste management to attain the UNE-EN ISO 14001 certification for the company’s environmental management system. A series of measures were implemented to reduce the negative environmental impact and the risks associated with accidental situations, which also boosted productivity. One of the measures implemented was the acquisition of gas aspiration machines with filtering in the welding process – which brings a reduction in gases for welders

AUTUMN 2021 . DRY BULK . 49

and, of course, a reduction in gases to the atmosphere. Also, the wood that comes with Symaga’s MMPP began to be reused and instead of making it waste, the company began reselling it to its suppliers for treatment according to the NIMF-15 standard that allows reuse. Another initiative was to hire a specialised recycling manager who removes the waste from the company’s facilities. Since 2018, its suppliers have been required to comply with 14001 or have an environmental policy implemented in their companies. The implementation of these measures allowed Symaga to obtain the 14001 certification, rewarding the effort that the production and quality departments had made for months.

Using renewable energies

The second sustainability project was a photovoltaic solar plant to power Symaga’s factory. The roof of one of the company’s latest buildings hosts a system of solar panels that generate green energy. As a result of this, 25% of the total energy consumed by Symaga Group in 2020 came from direct renewable sources, and in the second phase that will begin in 2021 the company will look at a figure of 50%, with an ultimate goal to achieve 100%. In this regard, Symaga’s experience is very positive. While the launching of these projects required remarkable planning and implementation efforts, it has turned into an investment with returns. With the Environmental

Figure 1. United Feed, Yanbu, Saudi Arabia.

Management System 14001, the company has increased competitiveness, due to the reutilisation of materials and the reduction of gases for its employees, boosting worker’s well-being and productivity. From the new photovoltaic solar power plant, in terms of maximisation of resources, the roof not only protects from rain but also generates energy. Photovoltaic energy reduces production costs, achieving a more competitive product. Essentially, it is all green: there is a direct positive economic impact and this is also beneficial for the environment, since CO2 emissions are reduced. Another benefit is from a social perspective, because a sustainable company that is committed to the environment and its workers projects a positive image to its target audiences. Industry in general, and silo manufacturing in particular, should do its utmost to produce using renewable energies in order to preserve the environment and increase competitiveness. With Symaga, bringing electricity consumption down at a time when electricity prices were on the continuous rise (reaching record highs in Spain), has a direct impact on the results. As solar panels are more accessible and the technology matures, the installation of solar panels is economically viable, thus it soon pays for itself. For energy-intensive industries, self-production, consumption, and independence bring about growth in competitiveness by reducing energy costs. Depending on the consumption profile of each company, up to 60 - 70% can be saved. Spain, blessed with the highest solar radiation rates in Europe, presents a profitable opportunity for self-consumption photovoltaic panels. Self-consumption, by eliminating energy production with fossil fuels, contributes directly to reducing CO2 emissions, slowing down climate change, and making this world a more sustainable place for future generations, achieving social and economic benefits, and complying with the corporate environmental social responsibility policy. Industrial self-consumption is a natural path towards distributed generation, where each one will be able to consume energy instead of demanding it from the electricity grid. Self-consumption with photovoltaic solar energy consists of the installation of a generating plant to make the most of solar energy without the need to store energy in batteries or store excess energy. Therefore, all the power produced by the self-consumption solar kit ends up being used; nothing is injected into the grid. The environmental management of resources and waste also achieves economic and environmental-social benefits, because it is produced more efficiently, minimising costs, and reducing waste to a minimum.

Staying focused on sustainability

Figure 2. Østfoldkorn, Sarpsborg, Norway.

50 . DRY BULK . AUTUMN 2021

Symaga’s continuous investment plan has improved the production and commercialisation of the company’s silos, achieving exponential and continuous growth over time. State-of-the-art production has always been pursued for Symaga’s factory, with excellence in manufacturing quality being one of the main added values of the company’s silo. The main objective has been factory automation and total

traceability control. With the implementation of the waste management 14001 standard and the photovoltaic plant, the concept of sustainability is added to achieve a clean production that minimises emissions, reduces risks to human and environmental health, and simultaneously increases competitiveness. The contribution to sustainability extends to the storage solutions that Symaga provides. Agriculture and its value chain have a direct impact on the environment, climate, and food safety, and improper storage makes the problem much worse – after-crop grain losses and contamination of food are common where the grains are stored with traditional methods. A modern silo installation comes as a steady solution to help mitigate these risks and maximise value for yields. A silo helps reduce the losses that occur during storage, keeping the grain quality and properties for longer. Additionally, it is a first barrier against the damage caused by bad weather or pests, maintaining the grain in proper conditions and preventing the spoilage due to mycotoxins. On top of that, silos have also emerged as a key solution to boost the development of new, cleaner energy alternatives. Over the last decade, silos have proven to be a reliable storage solution for organic materials such as biomass, which are then transformed into fuel for energy generation. The transition of fossil fuels towards cleaner alternatives has been boosted by the use of biofuels, minimising the carbon footprint as these capture carbon during its development. Key among Symaga’s record, the company notes partners such as Abengoa (A Coruña,

Figure 3. Photovoltaic solar energy generation plant at Symaga facilities, Villarta de San Juan, Spain. Spain), Agroetanol (Noorkoping, Sweden), Prumyslovy (Trmice, Czech Republic), Sunoservices, and LLC Frist Ukraininan (Ukraine), which herald the boon for these new alternatives. Symaga Group maintains its philosophy of continuous improvement. The reduction of energy costs and environmental management improvement increase the efficiency and competitiveness of the company and its silos, and reinforce the commitment to reducing the environmental footprint. Symaga encourages the entire industry in general, along with the manufacturers of silos, to preserve the environment, as a commitment to society and nature.

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Bernard Serote (South Africa) and Bheki Nkomo (Kenya), Qnum, discuss how bulk stock surveyor assumptions can be responsible for compounding inventory shrinkage problems.

ulk stock producers conduct periodic stock surveys, in order to reconcile physical stock balances with the financial records, as a control measure that aims to ensure the accurate reporting of stock. As part of this process, independent stock surveyors are enlisted to evaluate the stock levels and provide figures which are then compared to the balance on the financial records. The frequent result is a surveyed level of stock which is less than the one on the financial records. This prompts the financial officer to write-off the additional stock reflected on the records. Annually these write-off losses contribute significantly to reducing an entity’s profitability. Physical stock survey methods employed to verify stock levels in dry bulk operations range from the archaic dipping and counting methods to the more advanced scanners and drone systems. Over the years, the methods have increased in accuracy in terms of accounting for the volume or number of units present in an operation. The challenge is that these surveys are undertaken periodically, limiting the real-time visibility, and the conversion from the volume or count measurement to a tonnage equivalent results in significant errors due to varying bulk densities of material. The bulk density factor – which is used to convert to tonnage – varies greatly, depending on how the material is contained and the level of moisture present. This leads to dry bulk plant operations experiencing recurring reconciliation frustrations.

What if the independent survey methods are wrong?

If the independent survey methods are wrong, companies could be unnecessarily incurring write-off losses due to incorrect survey method assumptions. Qnum Analytics recently assisted a soda ash producer in assessing the scientific soundness and assumption validity of the methods being applied by an appointed independent stock surveyor. The surveyor assessment methodology and key findings are highlighted next.

Aim

To determine the material mass of dense soda ash stored in three silos and compare the readings with the independent stock surveyor outputs. The analysis further sought to establish the inherent error margins in the silo dip stock survey method at a 95% confidence level.

Background theory

The bulk density of dense soda ash used was 1.10 kg/m3. Volume of the cylinder used is given as v=r×2×h (where r is the radius and h is the height of the cylinder based on the dips).

Experimental method

The apparatus for the experiment consisted of a field tape to measure five dip ports (circles) and four hatches (squares), as depicted in Figure 1.

AUTUMN 2021 . DRY BULK . 53

Procedure

10 independent tape measure throws into each port were conducted and captured per port – 90 independent throws per silo. The height (m) at which the field tape measure hit the material in the silo was captured per throw in the silo port template. ‘Independent throw’ means the tape measure was thrown and pulled out consecutively to ensure zero correlation between the throws. This process was repeated for all three silos.

Results

The results for the experiment were as follows: Mass for Silo 1: 3411.11 ±152.4 (t). Mass for Silo 2: 7688.58 ±129.77 (t). Mass for Silo 3: 1518.67 ±308.83 (t). As a result, from this experiment it can be concluded at a 95% level of certainty that the mass of the dense soda ash in Silo 1 was 3411.11 t, Silo 2 was 7688.58 t, and Silo 3 was

1518.67 t. A results comparison between the statistical sampling method’s results and the surveyors’ results can be found in Table 1.

Findings

The surveyor made mathematically incorrect extrapolations in an attempt to predict/guess the material by the side of the silos. The extrapolations added two data points per silo. The surveyor subtracted 0.2 m on the hatch dips in an attempt to match the hatch height to the dip ports. The extrapolated values by the surveyor were never reported in previous silo level reports, which prevented a timely detection of the issue. Silo 3 has a higher variance and error margin because the silo was almost empty and the design of the silo affects consistency.

Impact

Due to the fact the readings conducted by the auditor per silo were 11 instead of nine, the data manipulation skewed the mean mass of the material in the silo more to one side and elevated variance. This data manipulation raised questions regarding data integrity and reporting.

Highlights

Despite the surveyor’s data manipulation, it was established that the readings still fell within the 95% confidence interval. This further illustrated that the dipping method has an inherent margin of error which businesses must be aware of and proactively address, or find alternative measurement methods. The surveyor agreed to stop making the extrapolations that were costing the business heavily. The business had historically written-off up to 1500 t worth of stock in a single quarter due to this type of data manipulation by the stock surveyor who had been conducting the surveys for 12 years.

Figure 1. Cross section of the silo ports. Table 1. Stock survey method comparison results Surveyor

Qnum experiment

Variance

3436 t

3411.11 t

24.89 t

7631 t

7688.58 t

57.58 t

1251 t

1518.67 t

267.67 t

Figure 2. OI Solution flow.

54 . DRY BULK . AUTUMN 2021

Through the use of its OI Solution, Qnum Analytics can assist dry bulk producers to proactively manage these types of issues that elevate inventory shrinkage losses.

Transforming the management of bulk inventory

The dry bulk industry has traditionally been hesitant in adopting advances in technology and the traditional practices have at times exposed significant financial losses over the years. In recent times, however, corporations have started embarking on large scale operational transformations which have introduced some complexities, making it difficult to accurately match stock on the floor with financial records. Key concerns that emerge include: How accurately does the stock survey method account for the stock on the floor? What is the impact of stock survey technology that is incorrectly calibrated? Does the stock survey method get the same reading whether stock is wet or dry?

Can the client verify the readings produced by the stock survey technology? With surveys that are performed periodically, how can an accurate real-time stock level reading be obtained? The team at Qnum Analytics has been working to create an innovative way of achieving continuous reconciliation by tracking stock balances at a transaction level. The unique method ensures that the control environment aligns with all audit protocols and ensures real-time visibility, which empowers stock planning for improved customer service and operational efficiency. Qnum Analytics is a cross-functional team of data scientists and industrial engineers that are committed to bringing control and simplicity to the management of bulk stock. The company was incorporated on 22 February 2018, while its founders had been working on the product since April 2016, with the aim of bringing about a fundamental breakthrough in the manner in which stock is managed in the manufacturing and distribution sectors. The team identified an opportunity to develop a solution that would bridge the integration gap between financial records and the stock measurement techniques by tracking stock transactions in terms of mass and the audit equivalents. That was the pivot to becoming a data-science powered SaaS provider, providing major cost savings for bulk stock producers.

Validation of business value in a dry bulk chemical distribution plant

The case study was conducted on the largest distributor of natural sodium products in Southern Africa with a 65% market share. Their distribution capacity for soda ash is in excess of 320 000 tpy. The soda ash producer was incurring millions of dollars’ worth of inexplicable losses due to inventory write-offs quarterly, despite significant investments in supply chain inventory management systems. In response to the COVID-19 pandemic, the soda ash producer sought to explore opportunities to stop the bleeding and drive the sustainability of the business. Stock management practices had historically been a point of contention at the end of every quarter as inventory write-off losses were incurred when the independent physical stock surveys were conducted. The soda ash producer had invested significant time and resources in attempts to resolve the stock challenges. These efforts included investments in various scanner survey systems from different providers, however these only yielded yet more frustration with the delivery of inconsistent physical stock measurements or the periodical malfunctioning of the devices.

Approach

In a further attempt to rectify the situation, the soda ash producer enlisted the assistance of Qnum Analytics, the providers of a smart inventory reconciliation software (OI

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Solution) to assist in isolating the root cause of variances and provide the means to control write-off losses moving forward. The approach that was devised was a two-month trial (1 August - 30 September 2020) of the OI Solution, in order to unpack the source of discrepancies. At the end of the quarter, the OI Solution and the current inventory accounting systems – enterprise resource planning (ERP) and adjusted movement schedule – were then compared to the independent stock surveyor results to get a comparative analysis of the ease of reconciliation and magnitude of discrepancies reported.

Key findings

The trial run was conducted and the following stock challenges were identified as the root causes of the stock reconciliation frustrations: An inability to track internal material movements in ERP created a blind spot in terms of the audit trail. Stock measurement assumptions applied by the independent surveyor exposed the producer to the risk of undervaluation of stock because the ERP system did not carry a bag count balance that could be compared consistently with the stock count, in order to avoid conversion errors (bag to tonnage). Limited reconciliation of discrepancies between invoice weight and actual weight stock receipts at the distribution plant resulted in an inflated stock value on the financial records.

Limited reconciliation between dispatched weight and client received weight (invoice value) resulted in a higher stock value on the financial records which was misaligned to the actual values. Internal material handling mechanisms (conveyors, mobile conveyors, hoppers, silos, etc.) produce a significant amount of spillage which may not have been accurately accounted for on the financial records and overlooked by the independent survey. Compared to the adjusted movement schedule and ERP software, the OI Solution saved the soda ash producer ±85% in unnecessary stock write-off losses. The OI Solution produced a smaller variance comparatively and this is primarily due to its capacity to isolate the causes of variance. The OI Solution allows for the collection of data at its source, in order to promote enhanced visibility and control.

Conclusion

Inventory accounting problems arise when physical stock differs from that which is stated in ERP systems. The system then gets the sharp end of the sword in the blame game for such discrepancies, when it is usually human error that has caused the problem. Every transaction that occurs regarding material movements must be recorded in the system to keep it accurate. Someone should be responsible for each activity within the system to ensure its reliability and accuracy. In the case study outlined in this article, that someone was Qnum’s OI Solution.

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