Terminal Operator - Quarterly 2nd Edition 2016 by Terminal Operator

Quarterly - 2nd Edition 2016

TERMINAL operators DP World Plans Billion-Dollar Expansions P.30 mega vessels SĂ¸ren Skou appointed new CEO of Maersk Group P.60

40 Years of

Operational Excellence

container hanDling and crane technology Maintenance of automated terminals P.68 TERMINAL OPERATING SYSTEMS A world of difference P.80 customs security and surveillance Automation and risk reduction challenges in ports P.90 port and maritime education Tasneef graduates a batch of Emirati Engineers at Genoa University P.96

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editor’s note

e begin this issue of Terminal Operator by celebrating the 40th Anniversary of one of the biggest independent terminal operators in the world: Gulftainer. Since its beginnings with the Sharjah Container Terminal in 1976 the company has come a long way in the last four decades and its partnership with Port Canaveral is the latest in Gulftainer’s long line of successes. In other developments Abu Dhabi Ports completes 10 years of successful operations. And new port projects have been announced in India and South America. Meanwhile, China is dealing with a situation that it has now become quite familiar with in a number of its industries: Overcapacity. In this issue we also feature International Container Terminal Services for the first time and bring you their latest numbers for 2016 and information on new their terminal opened for business in the Democratic Republic of Congo, among other news. In the mega vessels section we discuss UK’s exit from the EU and its implications for the shipping industry in Europe and across the world. Then the latest big merger of UASC-Hapag is examined closely to find out what each is bringing to - and taking away from - the partnership. Jade shows us how giving due weightage to external factors can help terminal operators develop effective growth strategies. With the current pace of global business, data collection and analysis is more important to terminal operations than ever before. We show you how this data can be best used to create profitable business insights. In the Container Handling section experts from Kalmar describe primary considerations for the successful maintenance of automated terminals. Continuing with the theme of automation, in our Customs and Security section we show you how it can be used to reduce the risks in port and terminal operations. As the industry comes to terms with the new scenarios emerging in maritime transport, cuttingedge technologies and operational efficiency have become the touchstones for success. Going forward we hope to see rapid advances in these two areas and Terminal Operator will be there to bring you the latest advances each time. We hope you find this edition enjoyable and informative.

Sunil Thakur Editor Registered at Fujairah Free Zone PO Box 26734 Dubai, UAE Tel: +971 4 369 9063 Fax: +971 4 369 8989 www.flipflopmedia.ae printed by Printwell © Copyright 2016 FlipFlop Media All rights reserved While the publisher has made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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Quarterly — 2nd Edition 2016

DPS

GULFTAINER

DPS

GULFTAINER

Official Partners

Contents Terminal Operators

Abu dhabi ports Abu Dhabi Ports celebrates 10th anniversary

dp world

OICT

34 The preferred Gateway Port in Oman

DP World Plans Billion-Dollar Expansions

PSA

ICTSI

38 PSA Launch ‘Living Lab’ for Ports

40 India, chile announce new new ports meanwhile china faces overcapacity issues

Quarterly — 2nd Edition 2016

44 ICTSI Throughput Up 4% in q1 2016 on new acquisitions

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Official Partners

Contents mega vessels

UASC hapag lloyd

maersk

60 Soren Skou appointed new CEO of Maersk Group

62 Hapag-Lloyd UASC merger in final stages

MIXED VIEWS ON IMPACT of brexit

container handling & crane technology

konecranes

Konecranes presents a new Static Weighing System

Maintenance of automated terminals

Quarterly â&#x20AC;&#x201D; 2nd Edition 2016

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Official Partners

Contents terminal operating systems

customs, security & surveillance

90 AUTOMATION AND RISK REDUCTION Challenges in ports

port & maritime education

port tyres

100 MICHELIN X-TERMINAL T : The first multi-purpose tyre for your terminal tractors and trailers

80 A world of difference

navis WHEN DATA BECOMES INSIGHT

Quarterly â&#x20AC;&#x201D; 2nd Edition 2016

Tasneef graduates a batch of Emirati Engineers at Genoa University

102 BKT releases radial tyre range for Port equipment

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december 2016 DUBAI, UNITED ARAB EMIRATES

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exclusive Interview

40 years of successful port management As the world’s largest privately-owned port management company, Gulftainer has grown to become a reckoning force in the industry. Starting with the Sharjah Container Terminal, which was the first of its kind in the Middle East region, Gulftainer has continued to display its pioneering spirit, and most notably became the first Arab-owned company to win an US port contract in 2014.

oday, the company’s operations are managed by Flemming Dalgaard, CEO of Gulftainer, who entered the top job in early 2016, and oversees Gulftainer’s global portfolio from its Sharjah headquarters. He took over from Peter Richards, who has moved base to the United States, to manage Gulftainer USA – a move that emphasizes the port operator’s aim to expand its presence in the continent. As the company celebrates its milestone 40th year of operations, Terminal Operator caught up with the men at the helm to see what keeps Gulftainer moored to its ambitions for greatness. We start with Flemming, who brings us up to date on current operations and plans ahead and then go back in time to reflect on the journey of Gulftainer, with Richards - who for almost thirty years witnessed, first hand, the company’s history being made.

Flemming dalgaard

Canaveral USA, as well as winning the 2015 Lloyd’s List port operator of the year award. We additionally started our 40th anniversary year on a positive note, as Gulftainer’s 2015 performance showed that we had witnessed strong volume growth across our global portfolio. Most notable, our operations in the UAE in Khorfakkan Container Terminal delivered a significant 9% rise in throughput. The Port Canaveral deal has earned Gulftainer a distinct stamp of trust and credibility. How would you say the company’s outlook and plans have changed since this landmark contract was signed? Dalgaard: Trust is definitely a valuable commodity in the ports industry. Earning the trust of US authorities to

operate in Port Canaveral was a huge step forward for Gulftainer. Since signing the contract, Gulftainer has been recognized as a truly global player. We can see a fresh wave of interest in our capabilities, and consequently, a number of new projects are being presented to us. In particular infrastructure funds in the US have shown a keen interest in getting a world class operator like Gulftainer to join them in new and existing projects. Within Gulftainer, we have undoubtedly entered an important phase in our development, as we relook at our current portfolio and evaluate new opportunities that will add value to our position in the global ports industry. What is your vison for Gulftainer’s expansion over the next 5 to 10 years? Dalgaard: We are keen to expand our presence in North America, and we see immense opportunities in this region. In fact, according to the American Society of Civil Engineers, the United States needs to invest $3.6 trillion by 2020 to maintain its current infrastructure, and this includes a number of its ports. We are bringing this transformational intervention in to Port Canaveral, starting with an investment of US$100 million to revamp its infrastructure, equipment and build human capital

Gulftainer has had an incredible history of successes. As the new CEO of Gulftainer, how would you describe your tenure so far? Dalgaard: It has been an exciting journey so far, however, what has impressed me most is the quality of people in Gulftainer and how easy they have made my transition into the company. There have been several significant events since I joined, including the opening of our new container and multipurpose cargo terminal in Port

Quarterly — 2nd Edition 2016

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exclusive interview

from the local community – all of which could essentially contribute more than US$630 million to Florida’s economy, generate in excess of US$350 million in tax contributions and create over 2,000 job, once the facility is operating to capacity. The container and multipurpose cargo terminal launched last year has already attracted the attention of several leading shipping lines and we are confident that it will create substantial value for the local economy. As seen with our work in Port Canaveral, Gulftainer’s operational strategy is firmly rooted in creating value for our partners. We will continue to expand in areas that fit within this strategy and the focus will be on emerging markets as well as the US. Our primary intention is to expand in the medium sized container terminal segment, although, we will not rule out acquisitions of larger companies as well. Gulftainer’s 40-year-old heritage in port management exemplifies our efforts to seek out financially-sound prospects that meet the expectations of our shareholders, while also giving us the opportunity to offer the best possible service and productivity to our customers. How would you position Gulftainer’s standing in the global supply chain, and as a link to the critical Middle East and North Africa region? Dalgaard: We are the largest operator in the Middle East, operating more terminals than any other company, and we intend to continue to expand here both organically as well as through acquisitions. Our terminals in Saudi Arabia and the UAE particularly point to our capabilities and potential as a link for the rest of the world to the region. In Saudi Arabia, we operate the Northern Container Terminal (NCT) at Jeddah Islamic Port. Our other facilities in Jubail Commercial port and Jubail Industrial Port have been able to improve efficiencies by a large measure, while experiencing renewed business growth. As such, Jeddah is growing to become an epicenter for commercial activities in the Kingdom,

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We will continue to expand in areas that fit within this strategy and the focus will be on emerging markets as well as the US. Our primary intention is to expand in the medium sized container terminal segment, although, we will not rule out acquisitions of larger companies as well.

and the resulting growth in population has increased trade volumes. To add to this, the Saudi Vision 2030 that looks to make Saudi Arabia a logistics hub for “East-West trade” will further bolster our position in the global supply chain. In the UAE, Gulftainer is closely working with the Department of Seaports and Customs in Sharjah (SPA) to implement a number of earmarked investments in the terminals. In the Sharjah Container Terminal, we have introduced equipment including two ship-to-shore cranes, supporting RTG’s, reachstackers and empty container handlers, while improving and expanding container stacking areas. In addition, Gulftainer is working with SPA towards a planned expansion of the Khorfakkan Container Terminal, which is currently one of the most strategic transshipment ports in the Middle East. Improvements to the port will include increasing the quay length and container stacking areas, as well as increasing the ship to shore capability with new cranes of increased height and outreach – which will significantly improve its ability to accommodate the growing trend of megaships among Alliances. In terms of shipping partnerships in the region, we have always placed a great emphasis on being independent and neutral, and this has been one of our strong suits. There are of course certain shipping companies with whom Gulftainer has long term relationships in place, which have been built up since our inception 40 years ago.

What are your expectations in 2016, and how do you see Gulftainer performing during the year? Dalgaard: The shipping trade business is currently undergoing a grand evolution in its scheme and structure, and as a port operator with ambitions for global expansion, this is definitely something we are closely watching. The year 2016 has faced several blows from a macro-economic perspective, and many markets in the region and abroad are seeing the impact of this gradually seeping in to core sectors. At Gulftainer, we are taking a cautious view of the market, even as we continue to review new opportunities for growth.

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exclusive interview

Looking Back Peter Richards has been an integral part of Gulftainer for over three decades. He shares some memorable moments and milestone events he has witnessed over the years and describes how Gulftainer has gone from strength to strength to be where it is today. How do you think Gulftainer has evolved as a company and a terminal operator in the past 40 years? Richards: I joined Gulftainer, when they took over the operations of Khorfakkan Container Terminal (KCT) in 1986. Up until then Gulftainer operated the Sharjah Container Terminal (SCT) only, and the new addition to its portfolio was seen as a huge step forward - making it the only

Peter Richards

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port operator in the region with a port within the Arabian Gulf and one outside. We started out with very small volumes but through providing exceptional service to all our customers we were able to grow KCT into what it is now - the jewel in our crown, recognized as probably the most productive terminal in the world. Today, Gulftainer is ranked as one of the best terminal operators in the world, and is known globally for our operational abilities, flexibility and professionalism. We have managed to climb the league of international terminal operators whilst still keeping our feet firmly grounded on the values that have helped us grow as a company. One of our most notable strengths is that we never forget we are a service provider and strive to treat all our customers as partners. Over the last 40 years, what continues to be a constant at Gulftainer is our commitment to add value to anything we do, then, now and in the future. Can you describe some of Gulftainer’s most interesting expansion highlights over the last 40 years? Richards: When we received the green light from our shareholders to expand globally we wanted to take over the world. We were so excited we looked at everything, anywhere. However, we soon realized that we had to concentrate on the opportunities and markets where we could add the most value.

Over the years we have entered in to some notable partnerships in markets such as Saudi Arabia, Brazil and Lebanon, where negotiations were definitely challenging, but successful. The Saudi deal was most certainly a defining moment in Gulftainer’s history, and one that took us into a different league. It was long and protracted as we negotiated back and forth to review and counter review the proposal. Eventually, Gulftainer was able to win the concession, which helped us gain a huge presence in the international port industry. Another significant milestone in Gulftainer’s expansion trajectory was our acceptance into the USA, widely regarded as the one of the most difficult markets for a foreign entity, especially from the Middle East, to enter and establish itself. Our journey to winning the contract for the high profile gateway, Port Canaveral, can be seen as the sum total of our efforts over the last 40 years. Today, Gulftainer is the largest private and independent terminal operator in the world. We are the largest terminal operator in the Middle East (by number of terminals). Our independence ensures good relations with all shipping lines, and most importantly, our reputation for exceptional productivity, customer service and technical expertise puts us in good stead with existing and potential partners. l

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Terminal Operators

terminal operators

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Considerable contribution to Abu Dhabi’s GDP – AED 14 billion, and creation of over 39,500 job opportunities in 2014

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Flagship Khalifa Port was ranked third in the world and the first in the region for the highest growth rate

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Stable growth throughout ten years in all major business sectors; attained double-digit Compound Annual Growth Rate (CAGR)

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AED 880-million breakwater protects Ras Ghanada Reef, the Gulf’s largest coral reef at around 35 sq kms

Abu Dhabi Ports celebrates 10th anniversary Abu Dhabi Ports is celebrating its tenth anniversary this year. The master developer, operator and manager of ports and Khalifa Industrial Zone in the Emirate, has made a long list of achievements over the last ten years.

or the company’s management however, this milestone moment is an opportunity to define its decade-long achievements and build the stepping stones for the future. “We have a strong conviction that our celebration should be beyond marking the number of years. As we happily look at our long list of achievements, we celebrate those that substantially contributed to the development of this great nation, and to the emirate of Abu Dhabi in particular,” says Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports. As a company with an established vision and mission, Abu Dhabi Ports has a clear yardstick to define its way of ‘celebrations’. “As the maritime trade business enabler in the emirate, and with the support and guidance of our wise leadership, we have been successful in facilitating economic diversification in line with the Abu Dhabi Economic Vision” Al Shamisi says. Abu Dhabi Ports has attained double-digit growth in two major cargo sectors during the first quarter of 2016.

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Roll-on-roll-off (RoRo) traffic at Khalifa Port witnessed a 31 per cent increase with 33,687 vehicles, up from 25,709 vehicles in the same period in 2015. The trend highlights Khalifa Port’s growing status as a premier RoRo hub in the region with its yard and facilities that could cater to the growing demand. Key facilitator of economic diversification Abu Dhabi Ports’ increasing investments in maritime infrastructure have boosted the Emirate’s import and export trade business that has also reflected in the company’s year-on-year business volumes. This upsurge and increasing investments in Khalifa Industrial Zone (Kizad) spell out the company’s contribution to the economy. Alongside this visible transformation made in the maritime trade business, and industrial sectors, Abu Dhabi Ports has further evidence to substantiate its impact. A study commissioned by Abu Dhabi Ports and verified by Statistics Centre Abu Dhabi (SCAD) explains that the company contributed more than AED 14 billion to Abu Dhabi’s GDP and generated over 39,500 new

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direct and indirect job opportunities in 2014. The activities of Abu Dhabi Ports in its entirety accounted for 2.9 per cent of the Emirate’s non-oil GDP, which resulted in rise to nearly two per cent of overall employment in Abu Dhabi’s nonoil economy. This had a greater impact on the national GDP which witnessed a value added impact of AED 18.1 billion and nearly 64,000 jobs were supported. Abu Dhabi Ports’ contribution is expected to increase further with the increasing capacity of the company’s ports and operations based in Khalifa Industrial Zone. Ports lead transformation Abu Dhabi Ports’ flagship Khalifa Port, the first semiautomated container port in the region, grabbed global attention when the port was ranked third in the world and the first in the region in September 2015 for the highest growth rate. One of the most technologically advanced ports in the world, Khalifa Port, with its world-class infrastructure, earlier also set productivity record of handling 2615 moves in just under 13 hours. The container terminal also crossed the important benchmark of 200 BMPH (berth moves per hour) on the same day, proving the maximised efficiencies and increased terminal throughput and capacity. Another achievement of 12.5-minute turnaround time for trucks within the container terminal has raised Khalifa Port’s profile as an international maritime hub. “We are proud that Khalifa Port has also played its role in the UAE’s recent achievement in infrastructure development,” Al Shamisi says. The UAE was ranked the first regionally and third globally in terms of quality of seaports infrastructure, according to the Global Competitiveness Index 2014-2015. Khalifa Port’s adjacent Khalifa Industrial Zone (Kizad) also immensely contributes to the port’s success story. The integrated services

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“We are proud that Khalifa Port has also played its role in the UAE’s recent achievement in infrastructure development,” Al Shamisi says.

of Khalifa Port and Kizad offer great opportunity, and long-term competitive commercial advantages, including exceptional supply chain efficiencies to clients. With tailored leasing solutions, ready-forbusiness attitude and dedicated investor support, the integrated trade and industrial hub of Abu Dhabi connects businesses to the rest of the world. Zayed Port, the oldest commercial port and the main city port for the past four decades, caught the attention of global tourism sector for two remarkable feats – opening of the permanent cruise terminal and unprecedented increase in

cruise tourist arrivals. The state-of-the-art Abu Dhabi Cruise Terminal, opened in December 2015, is a major landmark for the cruise tourism in the Arabian Gulf. The number of cruise tourists (205,000) visiting Abu Dhabi during this season (2015-2016) represented a five-fold surge since the first cruise season in 2006-2007. Zayed Port is now establishing itself as a premier regional hub for the cruise industry, and general and bulk cargo. The two adjoining ports―Free port and New Freeport―are also extending significant services to the exploration and production sector, which is vital to the economy of the UAE and the region. Musaffah Port, the second oldest port after Zayed Port, offering cargo operations and warehousing, made a major milestone when construction of the New Musaffah Channel at the port was completed in 2011. The new channel is nearly twice as deep as the previous channel and provides unlimited air draught with two-way movement for large commercial vessels. Abu Dhabi Ports Marine Services, a subsidiary of Abu Dhabi Ports, provides a wide range of world-class marine services to all of the vessels calling at the ports. The company received the

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International Standard for Maritime Pilot Organisations (IPSO) certifications for its marine pilotage service in 2015. All the pilots with the company had already achieved IMO STCW (International Maritime Organisation Standards of Training, Certification & Watchkeeping). All these units help Abu Dhabi Ports to offer more than 100 direct connections to global ports with over 36 shipping lines calling at the ports. New vigour in trade and industrial sectors Khalifa Industrial Zone (Kizad), the integrated trade and industrial hub of Abu Dhabi, has currently attracted around 90 national and international investors, and a total of 13 million square metres of land leased that represent a total investment of more than AED55 billion. Kizad has also recently attained ISO 9001:2015 quality certification, the latest version of the world’s most popular quality management system standard. Zayed Port and Musaffah Port also bolster the trade and logistic sectors. around 820,000 square metres of warehouses at Zayed Port cater to the businesses in the city. Warehousing facilities of Musaffah Port support the industries in Musaffah industrial area. Awards and honours, and highly motivated workforce Abu Dhabi Ports has won 11 international accreditations and 26 reputed awards. Three awards of the Abu Dhabi Award for Excellence in Government Performance (ADAEP) were a prestigious accomplishment. The company bagged the award for “the Financially Distinguished Entity” and “the Distinguished Entity in Performance Improvement” in 2015, and award for “the Outstanding Strategic Transformational Project” in 2014. Highly motivated employees have made this success possible.

The company treats its employees as valuable assets, which has been reflected in high rates achieved in employee satisfaction surveys. Emiratisation is Abu Dhabi Ports’ top priority in line with the UAE’s national policy. Building on the 47 per cent Emiratisation achieved in 2015, the company plans to accomplish over 50 per cent Emiratisation in 2016. ‘Green’ Credentials For one of the core objectives of the Environmental conservation, Abu Dhabi Ports has adopted sustainable business practices in all areas of operations. It has made remarkable success in conserving the marine environment while expanding the facilities.

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An award-winning, eight-kilometre Environmental Protection Breakwater constructed at Khalifa Port is a major contribution to safeguarding the marine environment in the region. The construction of the breakwater costing AED 880 million protects Ras Ghanada Reef, the Gulf’s largest coral reef at around 35 square kilometres and one of the most valuable marine ecosystems in the world. Across Kizad, Abu Dhabi Ports has established comprehensive solid waste and wastewater recycling programmes, and installed state-of-theart monitoring equipment for conducting both water and air quality surveys. The company was among the first in the UAE to monitor PM2.5, one of the most dangerous dust particles for human health (Particle pollution, also called particulate matter or PM, is a mixture of solids and liquid droplets floating in the air). Abu Dhabi Ports also implemented standards ensuring all buildings within its domain are built with the environment in mind, encouraging green building standards, including water, energy and waste minimisation. Ten years of stable growth A young company achieving stable growth throughout ten years in all major business sectors is an extraordinary feat. The fact that three major sectors, namely container cargo, general and bulk cargo, and cruise sector, attained double-digit

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Compound Annual Growth Rate (CAGR) makes it more significant. This proves that Abu Dhabi Ports’ heavy investments in the world-class infrastructure, the latest technologies and equipment have considerably attracted more customers to the ports in the Emirate. The company’s investments in new equipment like modern cranes, and Jade’s terminal operating system ¬– Master Terminal – deployed at major ports for providing accurate cargo information before vessel arrival, have also contributed to this upswing. Abu Dhabi Ports announced its new annual cargo-volume record in 2015 on the backdrop of a slowdown in the global maritime industry. Thirty two per cent increase in container cargo volumes, 27 per cent in Roll-on-roll-off (RORO) traffic, 20 per cent in general and bulk cargo, and 16 per cent growth in cruise industry attracted the attention of global industry. Looking ahead Abu Dhabi Ports does take note of the predictions made by many analysts about a volatile shipping industry in 2016. “We are proud to state that our double-digit growth in recent years, despite many challenges in the maritime industry, gives us the confidence to look forward to continued growth this year as well,” Al Shamisi says. Maqta Gateway – the first purpose built Port Community System (PCS) in the region – developed by Abu Dhabi Ports, will be a game changer in port operations and the Emirate’s trade business. The system offers shipping lines, shipping agents, customs agents, terminal operators and other government agencies a single pointof-access and real-time information across a wide range of services. A new dynamism witnessed in the port community in the Western Region of Abu Dhabi, since the inauguration of Al Mirfa Port in December 2015, is

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“The confidence to go-ahead with expansion plans and operational investments is due to our outstanding achievements over the last ten years. With the guidance of our wise leadership, the support of our stakeholders and partners, anv d the dedicated efforts of our employees, we are sure to accomplish many more in the years to come,” Al Shamisi concludes.

expected to enhance further this year with the extensive development activities of four other ports. Mugharraq Port, Sila Port and Delma Port will be upgraded to better serve the local community. Sir Bani Yas Island’s beachfront will be developed as the Arabian Gulf’s first cruise beach stopover by third quarter of this year. “The confidence to go-ahead with expansion plans and operational investments is due to our outstanding achievements over the last ten years. With the guidance of our wise leadership, the support of our stakeholders and partners, anv d the dedicated efforts of our employees, we are sure to accomplish many more in the years to come,” Al Shamisi concludes. Meanwhile, general and bulk cargo across Abu Dhabi Ports saw a 13 per cent upturn, and stood at 3.98 million freight tonnes (FT), as compared to 3.5 million FT registered in the first quarter

of 2015. The increased volume of general and bulk cargo indicates vigorous import and export activities related to the industrial and infrastructure development projects in the Emirate. Increased business activities of companies operating across the Emirate, especially in Kizad and Musaffah industrial area, have also contributed to this growth. The first quarter results for Khalifa Port Container Terminal, which is operated by Abu Dhabi Terminals – a subsidiary of Abu Dhabi Ports, showed that it handled five per cent more containers compared with the same period in 2015. The terminal moved 316,996 TEUs (twenty foot equivalent units/containers), up from 302,151 TEUs in the first quarter of 2015. Continuing the last year’s upward trend, the container cargo volumes indicate increasing demands from the Abu Dhabi market. Khalifa Industrial Zone also witnessed increased business activities during the first quarter of 2016. Four prominent companies, including KSB Service LLC and Polysys Additive Technologies Middle East (PAT ME), commenced operations from within the industrial zone and National Food Products Company (NFPC) and Gulf Printing and Packaging Company, started construction of their facilities. Kizad has a total of more than 90 national and international investors, and 13 million square metres of land leased that represent a total investment of more than AED 55 billion. l

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DP World Plans BillionDollar Expansions DP World has announced that the company has raised US$1.2 billion in a new 7-year sukuk set to be listed on NASDAQ Dubai, the Middle East’s international financial exchange, which is set to drive the port and terminal operator’s growth strategy.

he issue received strong investor interest and was twice oversubscribed, receiving more than $2 billion in bids. The new sukuk issue followed DP World’s successful refinancing of over $1.1 billion of the existing $1.5 billion 2017 sukuk. The remaining $387 million 2017 sukuk matures next year and was at the time the largest and first 10-year sukuk done in the region. The current tender offer is the first of its kind for the region. The money raised from the new sukuk sale will fund the tender offer along with general corporate purposes.

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Sultan Ahmed bin Sulayem, Group Chairman and Chief Executive Officer, DP World said: “As a leading enabler of global trade, we have taken advantage of attractive market conditions to successfully execute the first tender offer in the region and issue a new sukuk to drive our ongoing growth strategy. “We have chosen to list our new issuance on Nasdaq Dubai, the largest sukuk market globally with over 50 listings worth $40 billion. NASDAQ Dubai gives this new listing, as well as our 2020 and 2037 bonds, global visibility at home and overseas.

“Our sukuk listing fits with the vision of Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minster and Ruler of Dubai, to position Dubai as the capital of the Islamic economy globally. “The strong demand for our new sukuk is a clear sign of support for the economic fundamentals of Dubai and the UAE, and a positive outlook on DP World’s growth trajectory and credit ratings.” For the 12 months ending December 31, 2015, DP World reported a 31% year-on-year increase in net profit to $883 million. The new sukuk was priced at a fixed coupon rate of 3.91% maturing in 2023, replacing over $1.1bn of the 2017 6.25% coupon sukuk. The new sukuk will keep the dual listing on the London Stock Exchange, reflecting the same listing arrangements as the old issuance, in line with the tender offer. The settlement of the tender, as well as the new issue, will take place on 31 May 2016. One Belt One Road Sultan Ahmed Bin Sulayem, Chairman and CEO of DP World, has urged governments of One Belt One Road (OBOR) countries to explore innovative ways of working together as trading blocs to ensure the long term success of the One Belt One Road (OBOR) initiative. After participating in a panel discussion exploring Europe-Asia infrastructure connectivity at the Astana Economic Forum in Kazakhstan last week, Bin Sulayem said trading blocs, including the Eurasian Economic Union, the Shanghai Cooperation Organization and the South Asian Association for Regional Cooperation (SAARC) need to focus on the provision of basic infrastructure and the networking of transport and logistics for nations to realise the economic benefits. Only by doing this would firm partnerships attract investors to bridge the estimated US$5 trillion infrastructure gap of OBOR countries. He suggested that less bureaucracy and cross border cooperation with more hard and soft infrastructure is needed to promote seamless trade movement to achieve the goals of the OBOR plan. This follows news that Mr Bin Sulayem had recently spoken at China’s One Belt, One Road summit in Hong Kong to discuss increasing trade potential by improving international cross-sector connectivity.

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It also expected capital expenditure this year to be between $1.2 bln and $1.4 bln with investment planned in Jebel Ali and Jebel Ali Freezone, UAE, London Gateway in the UK and Prince Rupert in Canada. Mr Bin Sulayem said the European, Central Asian and Middle Eastern states’ transportation grid, communications networks, energy resources and electricity systems are key to developing wealth and the OBOR corridor can only prosper when human resources, logistics and trade flows have been enabled by provision of integrated infrastructure. These trading blocs have the capacity to bring about change and to ensure engagement and equal partnerships with China, complementing national efforts to increase collaboration through public private partnerships (PPPs) and other models. Sultan Ahmed Bin Sulayem said: “Commentators estimate that OBOR countries need another $5 trillion

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for infrastructure development from 2016 to 2020. One way to fund it is by trading blocs finding innovative ways of working together with a focus on infrastructure provision, developing the financial markets, mitigating risks and eliminating red tape to attract investors. “At DP World, we have global experience of enabling trade. We have 77 marine and inland terminals across six continents – all with governments and other stakeholders because we are stronger together in realising new trade routes and ensuring global connectivity. “This means using multi-modal transport options by road, rail, air and sea linked to free zones, marine and inland container terminals in locations where customers want them to be and where there is demand. “All of this is then backed by soft infrastructure and digital technologies that enable trade to happen and increase efficiencies. Our flagship Jebel Ali port and Jebel Ali Free Zone (Jafza) are leading trade

enabling examples, featuring connected transport modes and reducing costs for business. “The facilities are linked through ‘smart’ technologies that deliver faster, safer and more efficient services, including the Dubai Trade electronic portal, which serves as a one-stop shop for customs, clearance and all related services.” The Organisation for Economic Cooperation and Development (OECD) recently highlighted changes in the composition of freight to 2050. Trade in developing economies will grow around 1.5 times quicker than in developed economies. Inland connections will grow strongly, with freight volumes in intra-Asian trade multiplying by nearly seven times between 2010 and 2050. Yet these projections are based on the assumption that there is no significant infrastructure bottleneck to constrain growth – something that lack of regional cooperation could foster. Hinterland connections in particular will face the largest capacity challenges. These will be strained

Quarterly — 2nd Edition 2016

terminal operators

in Asia and other parts of the world where estimated traffic growth is highest and the limited availability of surface freight infrastructure is impacting the level of trade. The need to expand capacity is particularly large for infrastructure close to ports or main consumption and production centres and this type of infrastructure will need to almost triple in Asia and Africa by 2050 to provide the performance levels seen in 2010. Ecuadorian Port Win DP World has won a 50-year concession for the development of a greenfield multi-purpose port project at Posorja, Ecuador, which is 65 kilometres from the country’s main business city of Guayaquil, with phase 1 receiving $500 million of initial investment with a total of $1 billion for the entire project. The $500 million initial investment will include the purchase of land, dredging of a new access channel, a 20-kilometre access road and a 400-metre berth equipped to handle containers and other cargo. Construction is expected to start within the next 6-9 months and take around 24 months to complete, resulting in 750,000 TEU of capacity. The project will also involve plans to develop a logistics zone to create a regional trading hub. The project will focus on containers with the capability to handle other types of cargo and will be implemented with DP World’s local partners, Consorcio Nobis and Grupo Vilaseca. Sultan Ahmed Bin Sulayem, Chairman and CEO of DP World, said: “The additional value it will bring to the economy is compelling, increasing competitiveness through the provision of modern container terminal services in central Ecuador. “Posorja will contribute to our continued growth in the developing markets of South America in the years ahead. This investment builds on our existing network in the region, with terminals in Argentina, Brazil, Peru and Suriname.

“We look forward to bringing DP World’s world class productivityenhancing, security, safety and environmental best practices in container terminal development and operation to Ecuador.” Roberto Dunn, Executive Director at Consorcio Nobis, said: “We are excited to partner with DP World and Grupo Vilaseca on this landmark project. DP World Posorja will offer Ecuadorean importers and exporters a unique deep-water alternative that will dramatically improve the competitiveness of their products in world markets and has the potential to transform the Ecuadorean economy.” Posorja Port will complement DP World’s extensive network in South America by creating a new deep-water gateway for Ecuador’s global trade with a range of benefits that include access to a 15-metre draft compared to the current 9.75 metre drafts at the existing Guayaquil ports. Sokhna Adopts New SOLAS Regulations DP World Sokhna, the local marine terminal of global trade enabler DP World, is continuing its move toward becoming a one-stop-shop for maritime transport with the early adoption of the Safety of Life at Sea (SOLAS) regulations. From July 1, 2016, all shippers have been required to verify the gross mass of containers before they are shipped and ocean carriers and terminals will not allow any cargo at sea without first having verified gross mass from the shipper. Demonstrating its dedication to implementing industry best practices DP World Sokhna has been providing Verified Gross Mass (VGM) declaration at its state-ofthe-art port facility using globallyapproved weighing equipment to service its customers that may not have access to approved weighing equipment prior to their containers arriving at DP World terminals. “As an industry leader, DP World Sokhna is firmly committed to applying international industry standards and adhering to the

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“The additional value it will bring to the economy is compelling, increasing competitiveness through the provision of modern container terminal services in central Ecuador.” Sultan Ahmed Bin Sulayem, Chairman and CEO of DP World.

regulations to ensure the safety of people as well as the cargo of all our clients,” said John Fewer, CEO of DP World Sokhna. “At DP World Sokhna, we are leaders in VGM clearance as part of our ongoing efforts to enhance safety levels, facilitate cargo handling and accelerate trade movement. Safety of Life at Sea should be a top priority for all parties involved in maritime logistics. It is a common responsibility and all stakeholders should join forces to achieve this goal,” he continued. The SOLAS Convention is generally regarded as a key international treaty concerning the safety of merchant ships. Container handling is DP World’s core business and generates more than three quarters of the company’s revenue. In 2015, DP World handled 61.7 million TEU (twenty-foot equivalent units) across its portfolio. With its committed pipeline of developments and expansions, the current gross capacity of 79.6 million TEU is expected to rise to more than 100 million TEU by 2020, in line with market demand. Container handling is DP World’s core business and generates more than three quarters of its revenue. In 2015, DP World handled 61.7 million TEU (twenty-foot equivalent units) across our portfolio. With its committed pipeline of developments and expansions, the current gross capacity of 79.6 million TEU is expected to rise to more than 100 million TEU by 2020, in line with market demand. By thinking ahead, foreseeing change and innovating we aim to create the most productive, efficient and safe trade solutions globally. l

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No lines. No problem. Cavotec MoorMaster™.

Cavotec MoorMaster™ is a vacuum-based automated mooring technology that eliminates the need for conventional mooring lines. Remote controlled vacuum pads recessed in, or mounted on, the quayside, moor and release vessels in seconds.

Cavotec is a global engineering group that enables industries worldwide to improve productivity, safety and sustainability. Cavotec delivers power transmission,

MoorMaster™ dramatically improves safety and operational efficiency, and enables ports to make infrastructure savings.

distribution and control technologies that form the link between fixed and mobile equipment in the Ports & Maritime,

Operated by a single person either on board ship, or on land, the technology also reduces the use of tugs thereby improving operational efficiency and reducing environmental impact. Constant system monitoring ensures that MoorMaster™ automatically holds vessels at a pre-determined distance from the quayside. The technology is used by a growing number of operators worldwide, and has performed more than 115,000 mooring operations at ferry, bulk handling, Ro-Ro, container and lock applications around the world.

cavotec.com info@cavotec.com

Airports, Mining & Tunnelling and General Industry sectors. In addition to MoorMaster™, Cavotec’s technologies for ports and terminals also include Alternative Maritime Power systems, motorised and spring driven cable reels, radio remote controls, Panzerbelt cable protection systems and crane controllers.

Inspired Engineering

terminal operators

The preferred Gateway Port in Oman Oman International Container Terminal has been going from strength to strength in recent years. It has seen double digit growth during this period thanks to up-to-date standards, state-of-the-art equipment, automation technology and new expansion projects going hand in hand.

OICT’s readiness Verified Gross Mass (VGM) On November 21, 2014, the IMO’s Maritime Safety Committee officially adopted the new Safety of Life at Sea (SOLAS) requirement that as a condition for vessel loading, the weight of a packed export container be declared by the shipper, the verification will be either of the two permissible methods. The SOLAS container weight verification requirement has entered into force on July 1, 2016. OICT is ready for SOLAS implementation by using calibrated and certified equipment. The VGM data will be linked to OICT’s automated stowage planning system and this message will be transferred globally under the standard of the Electronic Data Interchange (EDI) format to the stakeholders. Opening Terminal C His Excellency Dr Ahmed Mohammed Salem Al-Futaisi, Minister of Transport and Communications and His Excellency Sultan bin Salim Al Habsi, Chairman of the Board of SOHAR Port and Freezone, Secretary General of the Supreme Council for Planning, marked the official completion of Terminal C at Oman International Container Terminal (OICT) in SOHAR Port in June. The visit included the opening of the new Operations Control Centre (OCC), and the inauguration of a state-of-the-art Remote Control Crane Centre. The new facility allows the remote operation of recently installed quayside cranes that have sufficient reach to load and unload 20,000 TEU ships. Andy Tsoi, Managing Director of the Middle East and Africa division of Hutchison Port Holdings (HPH): “OICT Terminal C is equipped with state-of-the-art technology, capable of handling 1.5 million TEU, with this year a double digit growth compared from this year to 2015. The move of the Muscat container operation to Sohar Port, project logistics and port development as the key sectors in Oman, the constructions of the Oman Logistics center and the express way connecting Sohar and Muscat are all

Quarterly — 2nd Edition 2016

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Quarterly â&#x20AC;&#x201D; 2nd Edition 2016

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OICT is moving into a new era of automation in Sohar, in line with continued growth in container throughput that has more than doubled in just eighteen months. In addition to faster turnaround facilitated through automated loading and unloading systems, OICT has been boasts an online truck appointment system. operator to increase productivity while reducing physical stress and improving the working environment, so operators don’t have to go out to the quay cranes to operate from the quay side. They can now sit in a very comfortable environment inside an office to serve the vessels”. driving the continued growth of the Sohar port. OICT is becoming our defector regional center of excellence for HPH.” Investment HPH invested $184 million in OICT by 2014 and will invest another $120 million by 2019. Biggest vessel As a taste of things to come, during the opening event OICT saw the first visit of a 13,000 TEU vessel to SOHAR Port, the MV MSC Altair at 366 metres the largest container vessel ever to visit the Omani logistics hub. This is a huge milestone for OICT. Remote control cranes Oman International Container Terminal took delivery of four new super post-Panamax quay cranes in March this year. The cranes which will be deployed at Terminal C in the port of Sohar, bringing its fleet of quay cranes to 11. Out of these, 7 are super post-Panamax. These are the first remote control cranes in Oman and allow operators to work from the safety and comfort of an office environment while increasing productivity levels. Andy Tsoi: “Launched in May, our system enables the front line

Systems OICT is moving into a new era of automation in Sohar, in line with continued growth in container throughput that has more than doubled in just eighteen months. In addition to faster turnaround facilitated through automated loading and unloading systems, OICT has been boasts an online truck appointment system. The new communications software schedules container truck arrival times at the terminal through direct contact with the truck operators and drivers, reducing waiting times and minimizing environmental impact by avoiding unnecessary fuel wastage. In addition to the new quayside cranes, OICT has invested heavily in new rubber-tyred gantry cranes (RTGCs) to further increase efficiency in the stack yards. The web portal has been launched as well. This is a system developed for customers to enquire and interact with OICT via three tools: through web, kiosk and mobile app. The web portal will provide the necessary tools to customers and reporting functions to ensure that doing business with OICT is fast and simple. Web portal is also developed to streamline and cut down existing

Quarterly — 2nd Edition 2016

processes between customers and OICT which in turn will reduce errors from both parties. The Gate Automation System is under development and will be launched in the third quarter of this year. It is a system that is able to convert photo images to text. The system is also able to digitalized printed text. This will enable the data to be electronically stored, searched, edited which could be displayed online and also used for system processes. Through the gate process automation, truck and driver identity can be captured at the gate lanes and creation of gate movement without human intervention. It is an automated solution intergraded with the terminal infrastructure and Truck appointment system. l

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DEFINE POSSIBLE. Take control of your KPIs and find your window of opportunity. With capabilities for manual, semi-automated and automated terminals, Navis N4 allows you to get the data you need to optimize your entire operation and make it run faster and smarter. Learn how Navis N4 and the Navis Business Intelligence Portal can help you at http://navis.com/makeintelligentdecisions.

terminal operators

PSA Launch ‘Living Lab’ for Ports PSA Corporation Limited (PSA), together with the support of the Economic Development Board (EDB) and the Maritime and Port Authority of Singapore (MPA), has inaugurated the ‘PSA Living Lab’, which is a living laboratory in Singapore for the port and logistics industry, with more than $73.5 million committed to the initiative over the next three years.

omprising two operational berths at Pasir Panjang Terminal, the PSA Living Lab will enable start-ups and technology solution providers to collaborate with PSA to develop ideas and test-bed integrated systems in an unparalleled live port environment at PSA Singapore Terminals – one of the world’s busiest hubs for container movement. PSA added that the PSA Living Lab is part of its ongoing programme to develop innovative and cutting-edge technology solutions for its existing terminal operations in Singapore as well as for the future Tuas Terminal. Another key project is the automated guided vehicle system, which will ramp up operations with a fleet of 30 vehicles in 2017. One key project is the Automated Guided Vehicle (AGV) system, which will ramp up operations to a fleet of 30 vehicles in 2017. Operationally-ready solutions have the potential to be deployed at terminals of the PSA group worldwide. The PSA Living Lab will also complement the recently-launched PSA ‘unboXed Incubator’ programme, which seeks innovative solutions from start-ups to revolutionise

Quarterly — 2nd Edition 2016

PTI recently launched its Terminal Automation & Training conference, which brought together industry experts to discuss the future of container terminal automation.

container terminal operations, streamline global supply chain logistics, and enhance the efficiency of international trade with better visibility and security. PTI recently launched its Terminal Automation & Training conference, which brought together industry experts to discuss the future of container terminal automation.

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“As Singapore consolidates its container port activities in Tuas from the next decade, it is imperative for PSA to become even more efficient, innovative and productive to be future-ready and contribute to the country’s status as a global hub port,” said Mr Ong

Yeoh Keat Chuan, Managing Director of the Singapore Economic Development Board, said: “We are happy to support PSA Corporation in their effort to explore next generation solutions that will secure the future Tuas Port’s competitiveness and Singapore’s position as a global logistics hub. “This opportunity to co-develop and test-bed port solutions at the world’s leading port will encourage other leading companies to partner PSA and look to Singapore as a location for value creation.”

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Andrew Tan, CEO of the Maritime and Port Authority of Singapore, said: “We believe that the success of Maritime Singapore hinges upon our ability to leverage on good people together with cutting-edge technology to enhance our competitiveness.” “A strong hub port will help strengthen our efforts to develop Singapore into a leading International Maritime Centre, and PSA must stay ahead of the game to remain relevant.” Mr Ong Kim Pong, Regional CEO of Southeast Asia at PSA International, said: “As Singapore consolidates its container port activities in Tuas from the next decade, it is imperative for PSA to become even more efficient, innovative and productive to be future-ready and contribute to the country’s status as a global hub port.” PSA Corporation, a fully-owned subsidiary of PSA International, operates the world’s largest container transhipment hub in Singapore, linking shippers to an excellent network of major shipping lines with connections to 600 ports globally. Shippers have access to daily sailings to every major port in the world at this mega hub. Its excellence in port operations has consistently been recognised by the shipping community. In 2016, it was voted the “Best Container Terminal (Asia)” at the Asian Freight, Logistics and Supply Chain Awards. PSA Singapore Terminals handled 30.62 million TEUs of containers in 2015. l

Quarterly — 2nd Edition 2016

NEW PROJECTS

Quarterly â&#x20AC;&#x201D; 2nd Edition 2016

new ports

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NEW PROJECTS

new ports

India, chile announce new ports meanwhile china faces overcapacity issues The government of India has decided to set up a major port at Enayam near Colachel in Tamil Nadu. A new deepwater port is also to come up at San Antonio, Chile. Malaysia’s Port of Tanjung Pelepas (PTP) plans to increase its handling capacity to 13.2 mln TEUs annually.

The Indian Government is setting up a special purpose vehicle (SPV) for development of a port at Enayam in the state of Tamil Nadu with initial equity investment from the three Major Ports in Tamil Nadu - V.O. Chidambaranar Port Trust, Chennai Port Trust, and Kamarajar Port Limited. The SPV will develop the port infrastructure including dredging and reclamation, construction of breakwater, ensuring connectivity links, a government statement said. At present, there are only a few ports in India that have sufficient draft and can match global cargo handling efficiencies. Currently, all of India’s trans-shipment traffic gets handled in Colombo, Singapore and other international ports. Indian port industry loses out up to Rs 1,500 crore in revenues each year. “Establishing this Major port at Enayam will not only act as a major gateway container port for Indian cargo that is presently trans-shipped outside the country, but also become a trans-shipment hub for the global East-West trade route,” said a government official.

than RM8.6bn ($2.1bn) under a plan to increase the port’s capacity. The expansion plan was unveiled by Mohamed Khaled bin Nordin, chief minister of the Malaysian state of Johor, during his working visit to PTP. He said: “PTP’s latest expansion plan reflects the highest level of confidence by the port operator to position itself as the preferred port of choice in the region. Currently, PTP has 14 berths over 5 kilometres of quay length. As a major regional transhipment hub, however, continuous capacity expansion is critical to ensure PTP is able to handle future growth. The immediate plan is to embark on a comprehensive upgrading and refurbishment of the port’s quay cranes and rubber-tyred gantries as well as replacement of PTP’s existing equipment to increase the handling capacity from 10.5m teu to 13.2m teu annually. This will be followed with the development of Phase 3, which is expected to take place in 2018, and will add a further six 3 kilometre berths to enable PTP to further increase its handling capacity to 22.2m teu before 2030.

Tanjung Pelepas plans to increase capacity. Malaysia’s biggest single port operator, Port of Tanjung Pelepas (PTP), is ready to invest more

New Chilean hub port Chile’s Foreign Minister used his Twitter account to confirm that construction will now go

“Establishing this Major port at Enayam will not only act as a major gateway container port for Indian cargo that is presently trans-shipped outside the country, but also become a trans-shipment hub for the global EastWest trade route,” said a government official terminaloperator.com

Quarterly — 2nd Edition 2016

NEW PROJECTS

new ports

Against this backdrop, the government is driving forward the installation of a mega-port, a Large Scale Port in San Antonio, which will exponentially boost cargo handling capacity.

ahead of a new deep water port at San Antonio, in Valparaíso’s southern zone. The announcement coincided with the opening of the new locks of the Panama Canal. “With the expansion of the Canal, it is anticipated that a considerable increase in our port activity [will take place]. “Against this backdrop, the government is driving forward the installation of a mega-port, the Large Scale Port in San Antonio, which will exponentially boost cargo handling capacity,” he said. The new port will triple capacity of the existing ports at both Valparaíso and San Antonio, which between them handle 2.2 million containers annually. The Minister also noted that the new port would include a series of supporting services, with a hub established in respect of the overall cool chain, which would help drive Chile’s agro-industrial exports.

Jorge Glas. The government of Ecuador has calculated that foreign investment in its ports will have reached $2.1 bln by the end of the current year, according to vice president Jorge Glas. This will be divided between three deep water ports: Posorja, in Guayas; Puerto Bolívar, in El Oro; and Manta, in Manabí. The announcement was made by Mr Glas during the inauguration of the new locks of the Panama Canal. According to Walter Solís, Ecuador’s Minister of Transport and Public Works, maritime traffic to the West Coast of South America could double and Ecuador needs to ensure that it is not left behind. While DP World is investing $1.2bn in Posorja, Yilport is investing $750m in upgrading Puerto Bolívar. Only the Manta project has stalled, he noted, due mainly to recent earthquake damage, although a Chilean company is prepared to invest $167 mln.

Ecuador showcases port potential Foreign investment Ecuador’s ports will reach $2.1 bln by the end of 2016, says VP

CHINESE OVERCAPICITY woes While the rest of the world is busy upgrading capacities, China is dealing with a different problem. Experts say that overcapacity in China’s ports will be

Quarterly — 2nd Edition 2016

more severe than that in steel and cement in the near future, according to reports in Xinhua news. Subsequently, Wang Shouyang, director of the Center for Forecasting Science at Chinese Academy of Sciences, has told central and local governments to pay attention to the consequences of redundant port construction. In a press briefing releasing the Center’s annual forecast on the world’s top 20 container ports, Global Top20 Ports, Mr Shouyang revealed that negative growth is expected in Hong Kong, Kaohsiung and Dalian. Growth rate of container throughout, however, is in decline, added the report. This is partly due to overcapacity, which Mr Shouyang said China’s port industry must deal with in the 2016-2020 period. In an interview with Xinhua, Dalian Maritime University’s professor Kuan Haibo said 2016 could be a turning point for China’s ports as they slump from profits to losses. “Too many city governments counted on new ports to boost local GDP data. That’s a bad idea.” Mr Haibo also urged local policymakers to keep their hands off ports and let the market do its job. l

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CMA CGM

a leading worldwide shipping group

CMA CGM, founded and led by Jacques R. SaadĂŠ is today a leading worldwide shipping group. With Its 445 vessels, CMA CGM serves 400 commercial ports out of 521 in the world. CMA CGM Group employs nearly 20,000 people worldwide, through a network of 650 agencies in more than 160 countries. The Group is, also, partner with numerous logistics and port projects all around the world. For more information, please visit www.cma-cgm.com

www.cma-cgm.com

terminal operators

International Container Terminal Services, Inc.

ICTSI Throughput Up 4% in q1 2016 on new acquisitions International Container Terminal Services, Inc. (ICTSI) handled consolidated volume of 2,053,639 TEUs for the quarter ended March 31, 2016, four per cent more than the 1,982,773 TEUs handled in the same period in 2015. The company has reported unaudited consolidated financial results for the quarter ended March 31, 2016 posting revenue from port operations of $266.5 million, a decrease of 10 per cent from the $296.1 million reported for the same period last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $121.9 million, four per cent lower than the $127.5 million generated in the first quarter of 2015; and net income attributable to equity holders of $42.2 million, down 22 per cent compared to the $54.0 million earned in the same period last year. The decline in earnings was mainly driven by lower storage & ancillary revenues, unfavorable container volume mix, lower capitalized borrowing cost, higher depreciation and amortization expenses and start-up costs of new terminals and projects. Diluted earnings per share for the period declined 40 per cent to $0.014 from $0.023 in 2015.

he increase in volume was mainly due to the acquisition of new shipping line customers and services at the Company’s terminals in Guayaquil, Ecuador, Manzanillo, Mexico, and Karachi, Pakistan; continuing ramp-up at ICTSI Iraq; and improvement in trade activities at the Company’s terminals in Jakarta, Indonesia and most Philippine ports.

Quarterly — 2nd Edition 2016

Matadi to open for business in mid-2016 International Container Terminal Services Inc.’s new terminal, located at Matadi on the Congo River, Democratic Republic of the Congo, is on schedule to open for business in August 2016. The new terminal will deliver purpose-designed container handling capacity coupled with modern general cargo handling and storage facilities.

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International Container Terminal Services, Inc.

Matadi is the chief sea port of the Democratic Republic of the Congo and the capital of the KongoCentral province. It is situated on the left bank of the Congo River 148 km (92 miles) from the mouth and 8 km (5 miles) below the last navigable point before rapids make the river impassable. The port serves an extensive hinterland including the capital city of Kinshasa, the largest city in Central Africa. The ICTSI DR Congo Terminal will initially commence operations in August 2016, with one berth. Full delivery of Phase One, incorporating a second berth and total quay line of 350m will be by November 2016. Container handling capacity will be 175,000TEU/yr with a nine hectare terminal area incorporating a yard area of six hectares. Depth alongside the quay will be 12m at all times, offering the ability to serve Panamax, Handymax and Wafmax vessels. As part of the overall development plan, ICTSI is also actively investigating the impact and opportunities for dredging the river in steps from 7.3 mtrs to 9.1 mtrs, 11 mtrs and eventually possibly even 12 mtrs. With the material to be dredged mainly sand there is considered to be real scope to achieve this and the delivery of wide economic benefits. Handling operations along the 350-mtr quay will be via heavy duty mobile cranes with reach stackers in the yard area for container handling. The Terminal Operating System will be Navis N4, incorporating value-added functions such as integrated billing, etc. Construction activity to date at the terminal site, which is located south west of Pont Marechal (before the bridge) and the existing public port, has seen the completion of the access road, commencement of piling for the quay and the start of works on the yard area and terminal building and gates. “We are very pleased to be progressing this USD 100m investment on schedule in Matadi, says Hans-Ole Madsen, ICTSI

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“We remain committed to working with all our partners – the Port of Melbourne, local community, our contractors, and now our lenders – to deliver to Melbourne a world-class and industry leading container terminal.” Anders Dommestrup, CEO, VICT.

Senior Vice President for Europe, Middle East and Africa regions. “The works are going well,” he underlined, “and we are very confident that we will be able to meet current and future cargo handling requirements for the Democratic Republic of the Congo in both the container and general cargo handling sectors.”

Based on demand, ICTSI also has the option to immediately implement a Phase Two development providing an additional 350m of quay line and supporting yard area. “We are ready to undertake this” emphasized Madsen, “as it is just a matter of timing in line with demand. We are very confident that we can build on the new efficiencies that Phase One

Quarterly — 2nd Edition 2016

terminal operators

International Container Terminal Services, Inc.

The funding has come from seven leading global financial institutions, namely: Citibank N.A., KFW IPEX-Bank, Standard Chartered Bank as Mandated Lead Arrangers and Bookrunners, Bank of China Limited, DBS Bank Ltd., Investec Bank PLC as Mandated Lead Arrangers, and Cathay United Bank as Lead Arranger. will deliver including reduced vessel waiting time and reduced transit times for goods from point of origin to destination.” The ICTSI DR Congo Terminal is a joint venture company between, ICTSI, The Ledya Group and SCTP SA. ICTSI operates 29 terminals in 20 countries and is recognized to be a leading developer, manager and operator of gateway container terminals of different sizes and serving extended hinterlands including cross border. BID FOR GREEK PORT “ICTSI has been pre-qualified and is participating in the bid in Thessaloniki,” a company representative has said. According to media reports Greece has invited investors to submit binding bids

Quarterly — 2nd Edition 2016

by September for a 67% stake in the Thessaloniki port. The Enrique K. Razon-led port operator, along with Denmark’s container terminal operator APM Terminals, and Dubai-based P&O Steam Navigation Company (DP World), were previously mentioned as being “strongly interested” in the Greek port. The port’s privatization is one of the conditions under Greece’s third international bailout agreed upon last July. Privatization has been part of Greek bailouts since 2010, but have only raised a small portion of the initial target of €50 billion ($56 billion). $300 mln VICT Fund secured Victoria International Container Terminal (VICT) has signed a syndicated loan facility worth US$300 million in order to bolster funds to develop the Webb Dock East at the Port of Melbourne, Australia.

The funding has come from seven leading global financial institutions, namely: Citibank N.A., KFW IPEX-Bank, Standard Chartered Bank as Mandated Lead Arrangers and Bookrunners, Bank of China Limited, DBS Bank Ltd., Investec Bank PLC as Mandated Lead Arrangers, and Cathay United Bank as Lead Arranger. The facility provides significant financial flexibility with long-dated tenors of 7, 10, and 16 years. Finnvera, the Finland based export credit agency, also participated in the transaction by providing a guarantee for a portion of the facility. Christian R. Gonzalez, VICT Chairman and ICTSI Group’s Senior Vice President and Regional Head - Asia Pacific & MICT, extended his congratulations to the lenders for sharing in the common vision of providing the Melbourne container market with a truly leading edge service that will benefit all port users and stakeholders.

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International Container Terminal Services, Inc.

terminal operators

ICTSI Corporate Finance Director Manuel V. Pascua said: “Thanks to the collaborative effort put in together with our lending partners, we achieved a final debt structure that positions VICT for both short and long term financial strength.”

Anders Dommestrup, VICT Chief Executive Officer, said: “VICT is extremely pleased to have signed this project finance facility with internationally renowned banks as this is a testament to the viability of VICT. “We remain committed to working with all our partners – the Port of Melbourne, local community, our contractors, and now our lenders – to

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deliver to Melbourne a world-class and industry leading container terminal. “The VICT deal has pushed the project finance envelope in Australia on a number of aspects, and this has made the process quite challenging. ICTSI Corporate Finance Director Manuel V. Pascua said: “Thanks to the collaborative effort put in together with our lending partners, we achieved a

final debt structure that positions VICT for both short and long term financial strength.” The alliance of Linklaters and Allens acted as the legal advisor Citicorp with Capital Philippines, Inc. as the financial advisor to VICT. Construction of the terminal commenced in late 2014, and will be completed in two phases. Phase One will be ready for commercial operations in Q4, 2016 and Phase Two will be available in 2017. With this deal, ICTSI continues its streak of successful funding transactions. In addition to deals done at the corporate level every year since 2010, ICTSI secured a major project finance facility last October, 2015 when Contecon Manzanillo S.A. de C.V. signed a US$260 million loan for its port development and operations in the Port of Manzanillo, Mexico. The confidence of the banks in both VICT and ICTSI that this transaction demonstrates is a confirmation of both the robustness of the VICT business plan as well as the strong track record of ICTSI in effectively implementing container terminal projects. VICT is scheduled to be complete in Q4, 2016. l

Quarterly — 2nd Edition 2016

terminal operators

Paperless Container transfers to become easier APM Terminals, ECT and RWG have made an agreement with the Dutch Tax and Customers Administration to end the requirement of physical customs documents in order to transfer containers from one Maasvlakte terminal to the other.

his ‘paperless transfer’ system aims to considerably reduces the administrative workload, particularly for shipping lines., and simplify the exchange of containers between terminals. Allard Castelein, CEO of the Port of Rotterdam Authority, said: “Paperless transfers simplify the transport of containers from one terminal to the other and improve Rotterdam’s competitive position.” “The next step will be the construction of the Container Exchange Route, which allows for the transport of containers between terminals via a closed system. According to our planning, this project will be rounded off within two years. The agreements presently entered into regarding paperless transfers will also apply to the Container Exchange Route.” Rotterdam’s Maasvlakte has five deep-sea container terminals, containers that arrive at the one terminal regularly need to be shipped on via a different terminal. This concerns many tens of thousands of containers every year, and with this total set to increase in years ahead, the participating terminals formed a solution. European customs legislation recently started offering the option of transferring containers from one terminal to the other – under specific conditions – without further paperwork. The Association of Rotterdam Shipbrokers and Agents (VRC), the participating container terminals of ECT, APMT and RWG, the Dutch Tax and Customs Administration and the Port of Rotterdam Authority have made agreements that are intended to take advantage of this new legislation and facilitate paperless transfers at the Maasvlakte area. As of 1 July 2016, all five deep-sea terminals will be ready to implement the system. In addition, the concept may in time be rolled out to other container terminals in the port of Rotterdam.

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Rob Bagchus, chairman of the Rotterdam Terminal Operators’ Association (VRTO), concluded: “The paperless transfer of containers between the different Maasvlakte terminals is important for Rotterdam’s position as a port. That is why the terminals have worked to realise this system as quickly as possible.” READY FOR SOLAS Meanwhile, the APM Terminals Global Terminal Network is working closely with supply chain partners across the portfolio to ensure seamless implementation of SOLAS weight certification requirements for export containers. With three days of terminal operations completed under the new Safety of Life at Sea Convention (SOLAS) Verified Gross Mass (VGM) Regulations, export cargo loading has proceeded without incident at the facilities within the APM Terminals Global Terminal Network. In 2014, the International Maritime organization (IMO), the agency of the United Nations responsible for regulating international seaborne trade, approved amendments to the SOLAS Convention which as of July 1st, 2016 requires verification and documentation of export containers before they can be loaded onto vessels. The purpose of the VGM regulations is to assure safety of the vessel, as well as dockworkers and other cargo handlers by preventing overweight or otherwise misrepresented containers from jeopardizing shipments or container movements. All of APM Terminals’ gate operations are operating normally, with vessel schedule integrity remaining unaffected by the new VGM compliance. In more than 70 locations around the globe, APM Terminals provides a range of services including VGM Data Management, VGM Verification and VGM Generation. Stock levels of containers are being monitored to ensure efficient operations can be maintained for containers previously accepted at facilities and currently awaiting VGM documentation. “APM Terminals is committed to assisting our customers to comply with the new SOLAS VGM regulation with as little impact to the supply chain as possible” stated APM Terminals VP of Operations Jack Craig, adding “I would like to say thank you to all our supply chain partners whom we have

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had an extensive dialogue with over the last months to ensure that our VGM Data Management services are as seamless as possible.” While the majority of VGM data is being transmitted through EDI, there are still some areas where manual processing process is required during this early implementation phase. VGM Generation services at 46 locations across the APM Terminals portfolio have been phased in since mid-June, with thousands of containers already weighed for export loading. “We encourage shippers to consider our VGM Generation services, as they offer an additional option to shippers and minimal disruption to trade flow,” said APM Terminals Head of Inland and End User Services, John Trenchard. AUTOMATING PROCESSES IS KEY Speaking on a panel devoted to “Robotics & Automation in Container Terminals” at the TOC Europe’s 40th annual industry gathering devoted to port and terminal technology and operations, APM Terminals Head of Terminal Design and Automation, Alex Duca outlined the concept of container terminal design by module and the importance of integrated automation and information sharing across every aspect of terminal cargo handling to make operations safer and better. “The biggest business opportunity is in retrofitting existing terminals with the automation of key processes to enhance our current operational performance,” said Mr. Duca, adding: “This is where you can evaluate some of the specific modules within a container terminal to see which processes can be improved through automation.” With larger vessels entering into service, as well as the organic growth of global trade, pressure on terminal operations to avoid congestion during peak cargo-handling periods of high activity has become an increasingly important aspect of future operations planning. “What we want is a more integrated container terminal encompassing control systems and equipment functions, instead of today’s fragmented activity container terminal; we need to make better use of equipment sensors and systems that combine with logistical information provided by terminal systems if we are to achieve automation’s true potential,” said Mr. Duca.

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Container volume handled by the world’s ports is projected to reach approximately 720 million TEUs this year, roughly double the global container volume of just 13 years ago. Physical constraints on the number of cranes which can work any particular vessel, even one as large as 20,000 TEU capacity, and the need to transport containers out of the terminal without congestion or increased safety risks to the terminal workforce are driving the next phase of terminal design, development and operations in which data sharing at each aspect of cargo handling will enable new demands for container handling and productivity to be met. “Terminals need to keep pace with volume growth and vessel growth, and the clear solution is integrated automation of terminal operations processes,” stated Mr. Duca. SAFETY AND TECHNOLOGY APM Terminals Bahrain, operators of Khalifa bin Salman Port (KBSP), has recently made significant advances in Safety performance and information technology systems, including the successful completion of a Load Collision Prevention System (LCPS) pilot project scheduled to be implemented throughout the APM Terminals Global Terminal Network. “Our HSSE, Terminal Asset Management and IT teams have all been working closely together on the recent Safety initiatives that APM Terminals is implementing globally,” stated APM Terminals Bahrain Managing Director, Mark Hardiman. APM Terminals Bahrain was selected as the first terminal to introduce and live-test the LCPS, (Load Collision Prevention System) following two years of research, engineering and initial testing by APM Terminals to reduce the risk of accidents due to collisions in the container yard between container handling equipment and stacked containers.

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“Terminals need to keep pace with volume growth and vessel growth, and the clear solution is integrated automation of terminal operations processes,” Alex Duca, Head of Terminal Design and Automation, APM Terminals. Technical innovations and procedural changes were put into place on KBSP’s RubberTire Gantry Cranes (RTGs) and Reach Stackers (RS). The investments made in collision avoidance and distance detection systems included installation of state-of-the-art cameras on all of the RTGs to remove blind spots faced by the operators and enhanced night vision features. The success of the program, known as “Project Stack”, has led to plans to introduce the new equipment and procedures at other APM Terminals facilities next year, as the improved safety features are rolled out globally. Equally important, APM Terminals Bahrain’s Equipment Maintenance and Repair (EMR) department is implementing a Total Productive Maintenance program, designed to maximize equipment reliability and performance. Operators and maintenance teams were trained in new skill sets to reach the goal of reducing equipment breakdowns by 90% in three years. KBSP is now in the final phase of TPM Club of India Certification. APM Terminals Bahrain’s IT department has also completed the successful implementation of a Differential Global Positioning System on terminal RTG’s. The system ensures that container positions are updated automatically, eliminating the

possibility of human error and creating a safer working environment. Reduced handling times will yield higher productivity. Other significant advances include the establishment of internet access points at the terminal storage buildings, enabling enhanced data coverage and analytics. Working closely with the existing Terminal Operating System (TOS), covering gate transactions and the container yard, the IT department is upgrading the system to include Verified Gross Mass (VGM) capability to help customers comply with the recent IMO amendment to SOLAS (Safety of Life at Sea) requirements. A new General Cargo Terminal Operation System with VGM functionality, will reduce paperwork and make it easier for customers to see cargo activities through a more customerfriendly interface. Terminal customers will gain access to better reports, tracking and monitoring. The system also enables APM Terminals Bahrain to achieve more sophisticated statistical analysis essential to financial and commercial goals and resource deployment. “Our goal is to ensure we have safe operations. These initiatives create a safe place to work for our employees, contractors and the external truck drivers visiting the terminal,” added Mr. Hardiman. l

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Since 2005, OffPeak has taken more than 35 million truck trips out of daytime Southern California traffic and diverted them to less congested nights and weekends.

LA and Long Beach cut truck turnaround times In the second quarter of 2016, trucks were able to pick up and deliver containers at the Ports of Los Angeles and Long Beach more quickly than in any other quarter over the last two years, according to monthly data reported by marine terminals and compiled by PierPass Inc.

n both May and June, turn times fell below 40 minutes during the Peak shift and below 45 minutes during the OffPeak shift for the first time since the second quarter of 2014. Turn time measures how long it takes a truck to drop off or pick up a container at a marine terminal. The average turn times for the full quarter were 40.8 minutes (Peak) and 43.0 minutes (OffPeak), down from 55.3 minutes (Peak) and 58.4 minutes (OffPeak) during the fourth quarter of 2014. In order to increase cargo velocity, terminals have invested hundreds of millions of dollars in new automation technology and other infrastructure. They have also implemented new procedures to address challenges presented by the arrival of much larger new ships, the spread of vesselsharing agreements and the transition of chassis ownership from shipping lines to leasing companies. Terminals have also increased their coordination with trucking companies to extend the use of free-flow or peel-off procedures for rapid delivery of large groups of containers. More of the terminals have also moved to adopt appointment systems, to better spread cargo movement over the hours of operation and coordinate which areas of the yard are being worked to enable more efficient use of container-moving equipment. As of July 2016, seven of the 13 terminals are using appointment systems, with more expected to come online by the end of the year.

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“Through investment, innovation and collaboration with other port stakeholders, the terminals have repeatedly demonstrated their ability to overcome operational challenges,” said PierPass President John Cushing. “This ability, combined with the capacity, flexibility and geographic advantages of Los Angeles and Long Beach, has maintained our position as the premier port complex in North America.” “We are encouraged by the recent turn time results and appreciate the work that has been done to attain these gains,æ said Port of Los Angeles Executive Director Gene Seroka. “We look forward to partnering with stakeholders to obtain further reductions and additional supply chain efficiencies.” During the second quarter of 2016, more than 850,000 containers were

picked up or delivered on weeknights or Saturdays during the OffPeak shifts established by PierPass. Without OffPeak, those truck trips would take place during weekday daytime traffic, greatly increasing congestion on the roads and highways of nearby communities. PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion on local streets and highways around the Los Angeles and Long Beach ports. Using a congestion pricing model, PierPass charges a Traffic Mitigation Fee on weekday daytime cargo moves to incentivize cargo owners to use the OffPeak shifts. The TMF also helps pay for the labor and other costs of operating the OffPeak shifts. Since 2005, OffPeak has taken more than 35 million truck trips out of daytime Southern California traffic and diverted them to less congested nights and weekends. PierPass is a not-for-profit company created by marine terminal operators at the Port of Los Angeles and Port of Long Beach to address multi-terminal issues such as congestion, air quality and security. PierPass launched the OffPeak program in 2005 to reduce cargorelated congestion on local streets and highways around the ports by establishing regular night and Saturday work shifts. Since 2005, OffPeak has taken more than 35 million truck trips out of daytime Southern California traffic and diverted them to less congested nights and weekends. About half of all port truck trips now take place during the OffPeak shifts. l

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Hapag-Lloyd UASC merger in final stages The merger between Hapag-Lloyd and United Arab Shipping Company is before competition authorities for clearance and, if given the green light, is expected to complete by the end of this year.

hile the largest vessels in Hapag-Lloyd’s fleet are its 13,200 TEU Hamburg Express class, the merger will bring in UASC’s six 18,800 TEU vessels, and 11 15,000 TEU vessels. The average ship size will increase to 6,600 TEU, with an average age of 6.6 years. UASC meanwhile stands to benefit from Hapag-Lloyd’s experience and access of transatlantic and transpacific market. Michael Behrendt, chairman of Haag-Lloyd, added: “Hapag-Lloyd and UASC now take the next step to further consolidate and shape the liner shipping industry. The new transaction is strengthening not only our market position, but also our service portfolio. “The merger will create annual net synergies of at least $400m and save a significant amount of capital expenditure for the company.” The agreement was signed by Hapag-Lloyd shareholders CSAV, Hamburg municipality HGV and Kuehne Maritime, and UASC shareholders Qatar Holding and Public Investment Fund of Saudi Arabia. The two UASC shareholders will have a 14 per cent and 10 per cent stake, respectively, in HapagLloyd, less than the 28 per cent the two had originally been lined up to acquire. In addition, in a shareholders support agreement that accompanied the BCA, they have agreed to “backstop a cash capital increase in the amount of $400 mln planned by way of a rights issue within six months after the closing of the transaction”.

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Hapag-Lloyd Chief Executive Rolf Habben : “This strategic merger makes a lot of sense for both carriers – as we are able to combine UASC’s emerging global presence and young and highly efficient fleet with Hapag-Lloyd’s broad, diversified market coverage and strong customer base. Furthermore, it will give the new Hapag-Lloyd access to ultra large container vessels.” The merged entity will be headquartered in Hamburg, and will have a fleet of 237 container vessels with a combined capacity of 1.6 mln TEU. Based on current business, it would transport around 10 mln TEU a year with annual revenues of $12 bln. Although Hapag-Lloyd is a founding member of THE Alliance, which will take shape in April, it will continue to operate as part of the G6, while UASC remains part of the O3 Alliance until then.

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Hapag-Lloyd Chief Executive Rolf Habben said: “This strategic merger makes a lot of sense for both carriers – as we are able to combine UASC’s emerging global presence and young and highly efficient fleet with Hapag-Lloyd’s broad, diversified market coverage and strong customer base. Furthermore, it will give the new HapagLloyd access to ultra large container vessels.” Michael Behrendt, Chairman of Haag-Lloyd, added: “Hapag-Lloyd

and UASC now take the next step to further consolidate and shape the liner shipping industry. The new transaction is strengthening not only our market position, but also our service portfolio. “The merger will create annual net synergies of at least $400 mln and save a significant amount of capital expenditure for the company.” However, Hapag-Lloyd has also warned investors that its 2016 full-year financial

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“The revised expectation of the executive board is a clearly decreasing EBITDA and a clearly decreasing EBIT compared with the previous year,” said the line, attributing the performance primarily to weak freight rates. In the second quarter, Hapag-Lloyd’s average freight rate was $1,019 per teu, $245 per teu down on the $1,264 per teu in the same period of 2015.

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performance was likely to be worse than last year, when it posted a $126m profit, mostly on the back of a strong first half. “The revised expectation of the executive board is a clearly decreasing EBITDA and a clearly decreasing EBIT compared with the previous year,” said the line, blaming the performance primarily on weak freight rates. In the second quarter, HapagLloyd’s average freight rate was $1,019 per TEU, $245 per teu down on the $1,264 per TEU in the same period of 2015. It added: “The recovery at the beginning of July does not seem sufficient and sustainable enough. Additionally, bunker prices have increased throughout the second quarter of 2016. “After the potential business combination with United Arab Shipping Company, transactionrelated one-off costs will also impact the results in 2016 The container transport sector has seen a wave of mergers and acquisitions, particularly in Asia, as companies try to keep a greater share of a shrunken market. The industry is suffering its worst moment since its early years in the 1950s and 1960s, due to a combination of weak consumer demand and overcapacity. Hapag-Lloyd merged with the Chilean company Compañía Sudamericana de Vapores (CSAV) in 2014, which helped to generate profits last year. The Hamburgbased company initially said negotiations with UASC would give its shareholders 72% of the combined business. Through the merger with UASC, Hapag-Lloyd would have access to larger ships in the important trade route from Asia to Europe. UASC, meanwhile, would benefit from greater access to transatlantic and transpacific routes, where Hapag-Lloyd is strong. l

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Søren Skou appointed new CEO of Maersk Group Since 2008 the Maersk Group has successfully gone through a phase of operational optimisation in each of its businesses to the point of top quartile performance in most units.

n order to leverage this position the Board of Directors have initiated a process to further develop the strategic options for the Maersk Group. To lead this phase the Board of Directors has appointed Søren Skou as new Chief Executive Officer of A.P. Møller - Mærsk A/S, replacing Nils S. Andersen, who has left the Maersk Group. The changes were effective from July 1, 2016. The Board of Directors acknowledged Nils S. Andersen’s dedicated and persistent contribution to A.P. Møller - Mærsk A/S since 2005, first as Member of the Board of Directors and subsequently as Chief Executive Officer since December 2007, where he has been a driving force in building a focused and lean global conglomerate of five core businesses within shipping, logistics and energy. “On Behalf of the Board of Directors I thank Nils S. Andersen for considerable results in fronting the Group’s international growth, strengthening the customer focus and competitiveness of the businesses, as well as simplifying governance and increasing transparency and communication with our stakeholders,” says Chairman of the Board of Directors, Michael Pram Rasmussen. ”I am proud of the results we as a team have achieved in the Maersk Group during my leadership and after 8 years as CEO of the Group and 15 years as CEO altogether, I find it is the right time for both me and A.P. Møller - Mærsk to make a change. Søren has all the qualities it takes to take the Group through to the next strategic step and I wish him and

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“Søren has strong business acumen and thorough knowledge of the Group’s various businesses and has successfully restructured the businesses he has led. The Board of Directors knows Søren as a respected and knowledgeable leader with the ability to adapt quickly to market changes in close collaboration with the Board of Directors, the executive management and his employees.” Michael Pram Rasmussen.

the whole management team all the best of luck,” said Nils S. Andersen and and continued: “I’ve been incredibly happy and proud to work for A.P. Møller – Mærsk and it has especially been a privilege and a daily joy to work with so many very competent colleagues around the world. On a personal level I am at a point in my life where I look forward to having a bit more time with my family after many years of constant work and I look forward to entering a new phase in my life.” Søren Skou has been employed with A.P. Møller - Mærsk since 1983 and member of the Executive Board of A.P. Møller - Mærsk since 2006. In 2012 he was appointed CEO of Maersk Line. Søren Skou will remain in this position in addition to his position as CEO for the Maersk Group. “Søren has strong business acumen and thorough knowledge of the Group’s various businesses and has successfully restructured the businesses

he has led. The Board of Directors knows Søren as a respected and knowledgeable leader with the ability to adapt quickly to market changes in close collaboration with the Board of Directors, the executive management and his employees,” said Michael Pram Rasmussen. The Board of Directors has tasked the new management to investigate the strategic and structural options to further increase agility and synergies. The Board of Directors will communicate on the progress before end of 3rd quarter 2016. “I am excited about the opportunity to lead A.P. Møller – Mærsk into the next phase of our strategic development. The fast-paced changes of this world demand that we can adapt quickly, easily and at a minimal cost while retaining the focus on each Business Unit. Our future set-up must effectively respond to these challenges” says Søren Skou, CEO of Maersk Line. l

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MIXED VIEWS ON IMPACT of brexit The U.K.’s vote to leave the European Union is expected to have “little direct impact” on the container shipping industry, according to Alphaliner. While others believe there will be negative effects.

K ports’ share of global container traffic shrank to 1.2 per cent in 2013 from 3 per cent in 2000, though they staged a small recovery in 2015 with throughput of 9.7 million twenty-foot-equivalent units, the industry analyst Alphaliner said. The country’s share of European container volume also declined over the same period, dropping to 8.9 per cent in 2015 from 13.9 per cent in 2000. The UK’s decline as a container shipping hub started long before the Brexit vote, with British flagged vessels accounting for 3.7 per cent of global capacity and UK-controlled ships making up just 2.2 per cent of the world fleet measured in TEUs. The steep slide of the pound sterling against key currencies following the vote is expected to reduce UK imports in the short term, especially from Asia, which will intensify pressure on the “fragile” recovery on the Asia-Europe container trade. Container volumes

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from Asia to North Europe grew by 2.7 per cent in the first four months of the year, according to Container Trade Statistics, with the UK accounting for less than 15 per cent of the market. The risk of an economic downturn in Europe likely will have a bigger impact on container shipping “and a corresponding fall in global container trade volumes could only worsen the current supply-demand gap further,” according to Alphaliner. Container supply will grow by 3.6 per cent this year, outpacing global demand growth of only 1.3 per cent, the analyst forecasts. Meanwhile in a contrasting view, awardwinning port economist Theo Notteboom believes that Britain’s exit from the European Union - will have a very visible impact on EU port throughput statistics. Currently, UK ports handle about 14 per cent of the total EU port throughput, while the country’s share in total EU population and EU GDP amounts to 12.8 per cent and 17.6 per cent respectively. Mr Notteboom said that UK ports are particularly important in the Ro-Ro business as a result of the many cross-channel ferries, services

to Ireland and within the UK, and Ro-Ro lines to the rest of Europe. The UK’s share in liquid bulk cargo, meanwhile, amounts to 15.6 per cent. Additionally, just over 9 per cent of total EU container throughput passes via UK ports, he said. Xeneta also believes that the UK’s decision to leave the European Union will impact negatively on all parties involved in the container shipping segment – from shippers, to freight forwarders and the container carriers themselves. The firm, which crowd sources freight rates on over 60,000 port-to-port pairings worldwide, believes that the only thing that is certain right now is uncertainty. “The last thing the container segment needs is further unpredictability and disruption,” comments Xeneta CEO Patrik Berglund. “Rates for shipping 40-foot containers have effectively collapsed over the past two years - with the short term average for Shanghai to Rotterdam now standing at 60% below its Summer 2014 level. This has been driven by chronic over-capacity and cut throat competition. Now we have Brexit to contend with.” Berglund says that anything impeding free trade raises costs, but not to the benefit of any of the parties involved in the container supply chain: “For the last 40-plus years the UK has been part of a mega trading block capable of negotiating the most favourable trade treaties – and therefore import duties – with other

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“Supply chains in today’s globalised trading arena are complex and interconnected, yet fine tuned to run efficiently, taking the path of least resistance wherever possible. Container shipping is an integral part of this, with all parties relying on smooth operation and predictable deliveries. The Brexit decision is like throwing a spanner in the works of this welloiled machine.” Patrik Berglund blocks and nations. Now, all of a sudden, it’s going to have to sign new treaties with everyone, without the bargaining power of the EU in its corner, and that will undoubtedly lead to higher duties, and therefore costs for shippers.” In terms of supply chain management, the decision looks certain to cause further headaches, as Berglund explains: “Optimal supply chain management relies on a quick and efficient international logistics network, and it goes without saying that guarded border crossings impede that process. The flow of containers will face a new bottleneck, increasing complexity

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and potentially forcing shippers to consider alternatives – such as more local sourcing (meaning less shipping), or re-positioning facilities in territories more conducive to easier trading. “Supply chains in today’s globalised trading arena are complex and inter-connected, yet fine tuned to run efficiently, taking the path of least resistance wherever possible. Container shipping is an integral part of this, with all parties relying on smooth operation and predictable deliveries. The Brexit decision is like throwing a spanner in the works of this well-oiled machine.” Berglund says it’s impossible to predict how the decision will impact on freight rates in the immediate future, citing the fact that the segment was unpredictable enough before this political bombshell exploded. His current advice to all parties in the container chain is simple – “stay informed.” He says: “A complex web of sometime subtle factors impact upon freight rates keeping them

in a constant state of flux. Brexit is anything but subtle and the fallout will be widespread. “All decision makers need to be aware of the latest developments in costs to empower making the best choices, and getting the right prices, for their cargoes. Big data resources like the Xeneta software platform - which boasts an unrivalled database of over 12 million contracted ocean freight rates, crowd sourced from more than 600 major international businesses – are the best way of getting a real-time image of what is happening right now, and reacting accordingly. “When the only certainty is uncertainty,” he concludes, “you need to be sure you’re getting the information you need, when you need it.” l

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APICORP and Bahri to launch $1.5 billion shipping fund Unique investment opportunity seeking to acquire 15 VLCCs.

he Arab Petroleum Investments Corporation (APICORP) and The National Shipping Company of Saudi Arabia (Bahri) announced the launch of a landmark shipping fund. An agreement to establish the APICORP Bahri Oil Shipping Fund (ABOSF) between APICORP and Bahri was formally signed at a ceremony held in July in Riyadh, in the presence of His Excellency

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Khalid Al-Falih, Minister of Energy, Industry and Mineral Resources for the Kingdom of Saudi Arabia and Chairman of Saudi Aramco. The ceremony was attended by Dr. Aabed Bin Abdulla Al Saadoun, Chairman of APICORP, Abdulrahman Mohammed Al Mofadhi, Chairman of Bahri, Dr. Raed Al Rayes, Deputy CEO & General Manager of APICORP, Ibrahim Al Omar, CEO of Bahri and Naser Al-Abdulkareem President of Bahri Oil Transportation. Other senior officials and advisers from both organizations were also present. The Fund’s target is to acquire approximately 15 Very Large Crude Carriers (VLCCs) over three phases with total investments of up to $1.5 billion composed of debt and equity. APICORP will be the main investor and fund manager, whilst Bahri will be the exclusive commercial and technical manager. APICORP will invest 85% in the Fund with Bahri investing the remaining 15%. The Fund will be a closed-end fund with a 10 years life period, and will deliver returns derived from the commercial employment of the VLCCs. Dr. Aabed Bin Abdulla Al Saadoun, Chairman of APICORP said: “We are delighted to be launching this fund in

partnership with an esteemed organization like Bahri, a leader in the shipping industry. APICORP continues to support the transformation of the energy industry and seek to raise the profile, both locally and internationally, of the sector through such investments.” Abdulrahman Mohammed Al Mofadhi, Chairman of Bahri said, “Bahri is committed to upholding its leadership position in the Kingdom of Saudi Arabia and the establishment of this fund in partnership with an extremely wellentrenched financial institution such as APICORP, is another step in that direction. This fund will not only reduce Saudi Arabia’s dependence on external crude carriers but also its earnings will be reinvested in the local economy. As with any other initiative, our growth strategy for this investment, firmly falls in line with Saudi Arabia’s plans for future development as laid out in the Kingdom’s Vision 2030.” This agreement is in line with Saudi Arabia’s long term economic diversification plan, support economic growth and creating employment opportunities. The project is a step in the right direction to enhance maritime sector awareness and augment growth of this industry in the

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About APICORP

“The launch of this fund is a further example of APICORP’s unrivalled ability to provide innovative financing solutions that meet the demands of the energy sector. A mechanism such as this not only helps the energy industry to meet the logistical challenges presented by the current dynamics, but also has the potential to deliver attractive returns.” Dr. Raed Al Rayes, Deputy CEO & General Manager of APICORP country. APICORP and Bahri have developed a unique structure that assists Bahri in increasing its VLCC fleet. This will also make Bahri the biggest VLCCs operator in the international VLCC market segment. Dr. Raed Al Rayes, Deputy CEO & General Manager of APICORP commented: “The launch of this fund is a further example of APICORP’s unrivalled ability to provide innovative financing solutions that meet the demands of the energy sector. A mechanism such as this not only helps the energy industry to meet the logistical challenges presented by the current dynamics, but also has the potential to deliver attractive returns.” Ibrahim Al Omar, CEO of Bahri said: “At Bahri we remain steadfast in our efforts to contribute to our national vision and goals, and are committed to playing an integral role in further developing and transforming the maritime industry in the Kingdom to strengthen its position as a leading regional logistics hub, thereby creating more employment opportunities for Saudis while continuing to play our part in the

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economic development of Saudi Arabia. With a current fleet of 36 VLCC’s and 10 new build orders scheduled for delivery in 2017-18, the 15 crude carriers proposed for acquisition under this fund will propel Bahri into becoming the largest operator of VLCC’s in the world.” Dr. Al Rayes continued: “This fund is APICORP’s second shipping fund. The first shipping fund, APICORP Petroleum Shipping Fund (APSF), was launched as a five year closed-end fund in February 2013 and till today yields attractive returns by leveraging growth opportunities in the petroleum products tanker charter market. The Fund we are launching today will capture a unique opportunity thrown open by the recent changes in the maritime oil logistics market of the region.” Dr. Al Rayes concluded: “On behalf of APICORP, I would like to thank the Ministry of Energy, Industry and Mineral Resources and His Excellency Khalid Al-Falih for their support, without which this Fund would not have been possible.” l

The Arab Petroleum Investments Corporation (APICORP) is a multilateral development bank established to foster the development of the Arab world’s oil and gas industries. The organization was created under the terms of an agreement signed by the 10 Member States of the Organization of Arab Petroleum Exporting Countries (OAPEC) in September 1974. APICORP’s vision is to transform the Arab energy industry into a powerful force for the region’s economic progress. Driven by this vision, APICORP seeks to make equity investments and provide project loans, trade finance, advisory and research to the energy industry. APICORP is one of the five organizations established by OAPEC to promote cooperation and economic integration in the Arab hydrocarbon and petrochemical industry. Since its founding, APICORP has made significant contributions to the evolution of the region’s energy industry. It has made equity investments in 22 oil and gas joint venture projects worth over $13 billion and participated in direct and syndicated energy finance transactions worth over US$126 billion. APICORP‘s aggregate commitments in these transactions, including both in equity and debt, are valued in excess of US$11 billion. Apart from this, it has provided advisory and treasury services related to financing and project development; and published highly regarded macro-economic research. These areas continue to define APICORP in today’s marketplace. APICORP is independent in its functioning and carries out its operations on a commercial basis. The Corporation’s headquarters are located in Dammam, in the Eastern Province of Saudi Arabia. APICORP also operates a Banking Branch in Manama, Bahrain. More information can be found at: www.apicorp-arabia.com

About Bahri

The National Shipping Company of Saudi Arabia - Bahri was established in 1978 and is one of the largest providers of maritime services in the Middle East. The company and its subsidiaries purchase, charter and operate vessels for the transportation of crude oil, chemicals, dry bulk and general cargo. For this purpose, Bahri owns and operates a fleet of double hull very large crude carriers, chemical carriers, dry bulk carriers and multipurpose state of the art Ro-Ro vessels. The company owns 36 VLCCs, 4 MRs, 1 Aframax, 26 IMOII chemical tankers, 5 product tankers, 6 multipurpose vessels and 5 DryBulk Carriers. For more information about Bahri, please visit www.bahri.sa

Quarterly — 2nd Edition 2016

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Container Handling & Crane Technology

Maintenance of automated terminals

BY ARTO KESKINEN, Director Service Contracts, Kalmar ILKKA ANNALA, VP Project Delivery, Kalmar PETER MIEDEMA, VP Professional Services EMEA, Navis

When converting a manual container terminal to automation, the first thing that comes to mind is installing automated equipment and building the infrastructure needed to run it. However, to ensure the terminal is running optimally, the services of an automated terminal also need proper attention. This focus must begin in the migration planning phase, continue through the deployment and start-up phases, and extend into maintenance planning and optimisation over the lifetime of the terminal.

This represents a new way of thinking for container terminals, and is often overlooked in the planning phase.

anual container handling equipment will work even if the machines are not in perfect condition, because human operators can work around the deficiencies of each piece of equipment or deal with exceptions in operational processes. By contrast, automated equipment needs always to be operating at its optimal level in order to ensure that it does not become a constraint on the performance of the terminal. In a manual terminal, replacing or repairing an individual component or machine typically has a minor impact on the performance of the terminal as a whole. In an automated terminal, the situation is very different. In the worst-case scenario, the breakdown of a single piece of equipment can lead to shutting down part of the terminal for 15 to 30 minutes to remove the machine from the yard.

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In automated terminals, the workload of the maintenance team changes markedly, as aspects of human error are eliminated. Dealing with typical manned equipment events such as collisions and accidents, or having to react to ad hoc repairs on equipment is reduced dramatically, bringing cost savings in the long term. Automated equipment can also provide continuous updates on its status, and can send alerts when any faults are detected. On the other hand, a consistently implemented inspection and preventive maintenance programme becomes an absolute necessity. Converting to automation requires a major change in practices and attitudes not only for the terminalâ&#x20AC;&#x2122;s maintenance team, but also for operations and IT. In a manual terminal, these are traditionally separate organisations. With automation, IT becomes a critical function that needs to integrate seamlessly with operations and maintenance.

Maintenance of automated equipment Automated equipment is monitored 24/7 by equipment control systems. Performance data is captured in one system, and the data enables trends to be followed and predictive maintenance to be scheduled. Decisions are based on data gathered from the machines. Sensitive automated equipment requires a targeted, routine preventive maintenance program to ensure proper operation and provide maximum in-service lifespan. As a result of a routine preventive maintenance program, the need for unscheduled corrective maintenance decreases, since machine failures can often be spotted beforehand due to 24/7 tracking of the machines. Additionally, the number of ad hoc repairs is reduced. In an automated terminal, there are fewer repairs due to collisions, incorrectly handled equipment or human error. EYES ON THE GROUND The standard maintenance intervals are the same for both automated and manned equipment. However, for automated terminals pre-planned

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short-term maintenance checks become increasingly important since there are no drivers to report on the condition of the machines. Automated container handling equipment incorporates a large number of optical and other sensors. These need to be checked manually at regular intervals. Furthermore, simple visual inspections of the equipment and correct reporting for future use become essential. In automated terminals, monitoring is no longer a ’nice to have’ option, but a crucial necessity. Without advanced monitoring tools and remote diagnostics, there is no way to know what is going on with the fleet. Furthermore, not every maintenance condition will be reported by automatic diagnostics. Trained operators are still needed to analyse fleet performance and proactively help identify any potential maintenance issues before they occur, which is an expert role beyond the scope of the traditional maintenance technician. In an automated terminal, maintenance staff needs to be familiar with various IT systems, a fact that must be addressed in training. In automated terminals, the system collects and measures key equipment performance and availability metrics that have been typically collated manually for decades. These statistics are of great relevance for terminals looking to understand and then optimise their fleet performance and usage. Knowledgeable automation providers can be of great assistance when optimising equipment maintenance. This helps terminals reap the most significant benefit of automated terminals, namely constant and predictable throughput around the clock, every day of the year. TERMINAL LAYOUT CONSIDERATIONS: HORIZONTAL TRANSPORTATION EQUIPMENT In automated terminals, maintenance needs to be taken into account at every level, including the physical design and layout of the site. The most

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obvious requirement is that areas in which people need to interface with the automated equipment must be carefully defined and strictly separated from automated areas. This has several implications for the maintenance of the equipment. Automated straddle carriers / shuttle carriers and Automated Guided Vehicles (AGVs) can be driven outside the automated environment for maintenance. For these types of equipment, separate ”airlock” areas must be built at the perimeter of the automated area for short-term maintenance and refuelling. To ensure maximum equipment uptime, these check-up areas should be located closer to the container area than the actual maintenance depots or workshops to which the machines can be driven for more extensive service or repairs. This factor needs to be designed into the automated terminal layout from the beginning. In automated terminals, good maintenance planning and predictive service typically ensure extremely high fleet reliability. However, the unlikely event of machine stoppage must also be taken into account. A typical strategy for handling serious exceptions is to segment the automated container yard into several zones that can be isolated from each other with e.g. light curtains or other safety solutions. In the event

of a machine breakdown, these zones can be sequentially closed off from automatic operation and then reactivated as the machine is removed from the yard. This enables the rest of the terminal to continue uninterrupted operations. An alternate method is to define a software-based safe zone around the faulty machine, so that other automated equipment moves around it. At the end of the shift, operation in the yard is then temporarily halted for the removal of the machine. TERMINAL LAYOUT CONSIDERATIONS: ASCs. Unlike rubber tyre-based container handling equipment, automatic stacking cranes (ASCs) cannot be moved outside the container block. This means that for maintenance, the ASC needs to be driven to the maintenance position at the landside or waterside to isolate it from the automated environment. ASCs generally operate in pairs, so when servicing one of the cranes on the block, the complete block can be served by the other ASC.

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Complex automated systems have a direct impact on the terminalâ&#x20AC;&#x2122;s operational efficiency, so the importance of a strong software maintenance and support program increases The stack layout should include sufficiently large maintenance zones in the exchange areas at both ends of the block. The maintenance zones must be large enough that the crane at that end of the block can be taken out of operation for servicing while still allowing the other crane to continue serving the entire block on both the landside and waterside. When this requirement is overlooked, it could mean that the entire landside or waterside operation needs to be stopped when the ASC is serviced. A typical layout for a maintenance area is 4 TEU long, so the ASC that requires maintenance can be placed at the end of the block. With a four-lane layout, two of the lanes will remain

open so the horizontal transportation can still feed the ASC crane that is in operation. The maintenance planner needs to consider several factors when deciding the most efficient way to service the blocks. The basic principle of an ASC stack is to keep containers moving 24/7 without interruption. This is not possible unless the cranes are serviced at the required intervals, but with careful layout design the block can still bekept operating at half capacity during crane service. Additionally, access corridors must be designed into the layout so that maintenance staff can safely enter the service areas without having to pass through the automated zone. Automation infrastructure maintenance Safety is a key consideration at any automated facility, and safety systems as well as access control solutions must also be maintained consistently throughout the terminal. In addition to the actual automated container handling equipment, an automated terminal has a significant amount of other infrastructure that needs maintenance, from sensoring, safety curtains, gates and fencing to wireless networks, LAN, servers and cooling systems. This requires a new skillset for infrastructure maintenance, as staff will need to be competent in maintaining many highly specialized subsystems including PLCs, sensors and lasers. Calibration In an automated terminal, sensoring replaces the human senses as the principal method of monitoring equipment performance and container

movements. The precision of automated equipment depends on the precision of its sensoring and measurement systems, as the human eye and manual judgment are not used to compensate for out-of-tolerance systems. To ensure optimum performance, sensors and measuring systems must be calibrated at regular intervals. Specialist tools and expertise will be required for the calibration of systems such as lasers on automated truck handling and spreader positioning, wheel alignment tools, and turntables. Infrastructure maintenance ASC terminals also require regular measurement and maintenance of the crane rails. Terminals are often built on landfill areas, which can cause changes in rail geometry as the surface of the yard settles over the years. Regular rail inspections are part of the preventive maintenance program, as crane rails that are out of tolerance will affect the movement accuracy of the entire crane. This is different from manual terminals, in which such slight discrepancies are easily overcome or even go unnoticed by crane operators. Software maintenance and support Complex automated systems have a direct impact on the terminalâ&#x20AC;&#x2122;s operational efficiency, so the importance of a strong software maintenance and support program increases. Like equipment, software needs 24/7/365 support to ensure availability and performance of the system. A typical way to handle software maintenance and support is to sign a long-term Maintenance and Support (M&S) contract with the software supplier. SOFTWARE MAINTENANCE. With the M&S contract, the customer receives full access to a customer portal where they can open, update and monitor technical support issues, access a knowledge base of articles, participate in a user forum (where they can make recommendations for new product features) and

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download patches, tools and drivers as well as get hot fixes and maintenance releases for the software. Product upgrades that include new and extended features and functionality for the software modules they have purchased are also available. SOFTWARE SUPPORT 24/7 support is a necessity for software in automated terminals. A small problem in the system can close the whole terminal for hours if the right support is not available 24/7. The primary responsibility of software support is to diagnose, isolate and resolve reported technical errors and questions that are related to software products and provide quality solutions as promptly and accurately as possible. The online customer support portal is a centralised source for support, offering efficient case reporting and tracking options. TYPES OF CASES The support process focuses on cases, which are issues or items of concern brought up by key users. Cases include the following basic types: • Errors • Enhancements

Critical cases are divided into four categories, depending on their impact:

• •

Questions Other (e.g. additional license requests, documentation/training requests etc.)

At the highest level, there are two basic kinds of cases: critical and non-critical cases. Critical cases are errors in software that prevent the terminal from performing mission critical functions. Critical cases need an immediate response and resolution from the supplier, and will be dealt with as extremely high priority. In some cases, a short-term resolution to a critical case may be provided in terms of a workable manual or system workaround. A system workaround is often considered a shortterm resolution to critical cases, because the first order of business is to get the system up and running as quickly as possible. Prioritising is needed to ensure the right allocation of efforts from the user and service provider points of view. Start-up phase The most demanding phase in automation deployment is the ramp- up to production. Terminals typically require support in handling the full range of start-up activities. Operators often experience a sense of urgency in getting the system running, even if all the in-house competence is not yet in place. This is when the risks of unplanned downtime are at their maximum. Before starting up commercial operation, at least following should be in place: Automated system operations, Maintenance processes,

Competencies, Inventory strategy, Testing and IT administration. In the critical start-up phase, a trusted service provider can step in to support the terminal in getting the right processes and resources ready. Tasks range from defining maintenance concepts, transferring master task lists to the maintenance programme, creating job plans and defining basic principles in the Computerised Maintenance Management System (CMMS), to setting up processes for third-party warranties, damage management, and procurement. Workshop facilities need to be set up, Health, Safety and Environmental plans must be implemented for maintenance activities, and job descriptions need to be defined. Furthermore, new job competences need to be established through skill mapping within the organisation and/or recruiting new resources for maintenance activities. In the start-up phase, expertise within the organisation typically needs to be brought up to speed with training and external support. Automated terminals call for a new calibre of technical knowledge, as all levels in the organisation, including the traditional technical roles, will require some understanding of the entire automation system. This is a factor that is easily overlooked in terminal automation deployments. In the start-up phase, external experts can serve as ”co-pilots”, supporting terminals through an education and knowledge transfer period while the operators develop their skills and build up experience. Maintenance operations also

Priority 1: Critical impact. •

Production system totally inoperable or crashes frequently

•

Critical impact on business operations o No workaround.

Priority 2: Serious impact. •

o Production system

•

is operational but frequent malfunction in essential system component

•

o Only short term

•

workaround exists.

Priority 3: Significant Impact. •

o Production system

•

is operational but occasionally mishandles transactions or data

•

o Workaround exists

•

but is inconvenient.

Priority 4: Low Impact. •

Production system is operational but not functioning in accordance with documentation

•

Redundant output, misspelled text or other cosmetic defect

•

Reasonable workaround exists.

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Understanding the optimisation curve During the start-up phase, terminals need to have realistic expectations regarding the evolution of maintenance requirements over time. A common assumption with automated equipment is that failure rates will start at zero from equipment deployment and then gradually increase over the lifespan of the machine. In reality, failure rates always follow a ”bathtub” curve:

Productivity is the result of optimal cooperation between equipment, systems and people, and all three areas require constant focus need to be up and running from the beginning. The start-up is the ideal time to establish the routines that ensure optimum performance in the long run. Failure rates begin at some nonzero level on start-up, decrease as the system is optimised, and then gradually rise again as the equipment nears the end of its planned lifetime. This phenomenon is also seen in manual terminals, but it is particularly relevant to automated terminals due to the significantly larger number of complex systems that need to be interfaced and integrated. Automation system performance depends on many factors beyond the reliability of the actual equipment, including the IT infrastructure, software applications, server capacity, wireless connectivity and other variables. Any of these can cause technical issues that need to be smoothed out as the entire system is optimised. Similarly, terminals need to accept that meeting specific key performance indicators such as Mean Moves Between Failure (MMBF) is a gradual process. It will take some time for

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MMBF to reach its target level, as the automation system is optimised and fine-tuned. However, once the target level is reached, MMBF and other similar metrics can be expected to remain steady and even gradually improve over the lifetime of the automation solution. Operating an automated terminal system The experience gathered through optimisation services in support of the terminal’s TOS (Terminal Operating System) and Equipment Control System (ECS) can provide additional insight into how terminal operators need to review performance, analyse data, and fine-tune the use of the systems that support the automated equipment in order to optimise cycle times and maintain operational performance. When implementing TOS and ECS for an automatic terminal, there are some special factors that need to be considered. For example, experience has shown that a comprehensive professional testing strategy is essential when seeking to continuously improve the performance of systems, equipment and people at the terminal. EXCEPTION HANDLING Another key factor is the importance of exception handling. Terminals cannot just focus

on the ’happy day scenario’ of the container flows, but need to ensure that they can handle the situations when something does not work as expected. In an automated terminal, there are no manual workarounds, so this needs to be the focal point of services, testing and training. The highest productivity in an automated container terminal is achieved if exception handling has been efficiently arranged with the correct skillsets. Paradoxically, as terminal automation develops in sophistication, the need for operator intervention decreases, but the average complexity of the exceptions that cannot be handled automatically increases. This means that operators need to be better trained and have a more complete understanding of the automation system as a whole. Emulation-based exception handling training can help operators practice a wide range of scenarios, and helps ensure that operators can handle the demanding task of managing an automated container terminal. TESTING Automated testing is also gaining ground in terminal software, especially in connection with version upgrades and new features. With automated regression testing, terminals can have thousands of different test cases ready when the new software release is delivered, and can test these scenarios with the latest software over and over again. Sophisticated automated testing saves resources and enables releases to be thoroughly tested prior to deploying them in the production environment. OPTIMISATION AND CONTINUOUS IMPROVEMENT Terminals must also accept that when deploying automation and new software, productivity cannot be maximised at the start. Instead, it must be improved incrementally by fine-tuning the system setup, operational parameters and settings, and prioritising key actions over less important tasks. Productivity is the result of optimal cooperation between equipment, systems and people, and all three areas require constant focus. Optimisation Services will enable improvement of cycle times and optimisation of terminal performance through information provided by TOS, TLS and PLC software. l

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Konecranes presents a new Static Weighing System Konecranes Lift Trucks has announced an all-new container weighing system at the TOC Europe exhibition in Germany. With SOLAS weighing regulations being implemented into the container industry, Konecranes weighing system with a container gross mass accuracy of 1 per cent offers weighing solutions.

ars Fredin, Senior Vice-President and Head of Konecranes business unit Lift Trucks, says, “We find it extremely important to develop our products with future needs in mind and to always be on our toes. We are thrilled to demonstrate the solution we’ve developed to our customers for the first time at such a premier event as TOC Europe.” The company launched its Static Weighing System, which is a much-needed response to the start of the

systematic container gross mass verification from July 1, 2016. The IMO SOLAS Chapter VI amendment, requiring a container to have a verified gross mass (VGM) before it can be loaded onto a vessel, will affect shippers, carriers and of course terminal operators. The Konecranes Static Weighing System is a system that can be retrofitted to existing machines, and allows the reach stacker to measure the weight of the lifted container with 1 per cent full-scale accuracy in less than 5 seconds. Konecranes fully embedded weighing solutions enable seamless interchange of data with the customer’s TOS/ TMS or ERP system through a secure, cloud-based service. Data captured includes the container’s verified gross mass, the container ID, the date and timestamp as well as the person accountable for the weight verification. The Static Weighing System in combination with Konecranes TRUCONNECT® remote services gives the customer access to features such as VGM reports and notifications, in addition to the regular TRUCONNECT services. TRUCONNECT is a remote monitoring system designed to assist customers in making fact-based decisions about their lift trucks, leading to higher productivity and uptime, more costeffective lift truck usage and a longer life cycle. BOXPORTER RMG Also at TOC Europe, Konecranes introduced a new Rail Mounted Gantry crane (RMG): BOXPORTER. This new crane offers the clearest view in intermodal container handling with its “smarter cabin”, which gives the operator superb visibility and comfort. It also gives the operator an extended view to truck and train loading and unloading and

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container stacking thanks to video and control information displayed on the cabin monitor. The new BOXPORTER RMG is the result of customer feedback and systematic study of field use conditions. BOXPORTER is built on a modular design approach that provides the efficiency benefits of standardization while giving the customer great scope for tailoring with optional features. The goal is a fast delivery time, high container handling productivity, excellent reliability, low maintenance and long service life. There is also an evolution path to remote operation and full automation.

Konecranes remote operating station technology from Automated Stacking Crane systems. Top productivity An intermodal RMG needs to be very productive and BOXPORTER meets that requirement with its Active Load Control (ALC)

system. ALC is an integrated sway prevention and fine positioning system that allows the operator to move the spreader, not the crane, when carrying out most loading and unloading tasks. The BOXPORTER RMG comes with TRUCONNECT®. l

The clearest view in intermodal The intermodal container handling environment has special requirements for lifting equipment. A core requirement is excellent visibility. The greater the crane operator’s ability to see clearly from the cabin, the greater his ability to perform his work safely and productively. BOXPORTER offers the clearest view in intermodal, thanks to its “smarter cabin” offering clear sightlines and its cabin monitor that extends the operator’s view to the handling action with an advanced user interface derived from

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TERMINAL OPERATING SYSTEMS

A world of difference How exploring the external environment helps terminal operators develop their growth strategies.

erminal operators live in a complex and dynamic world. A world that is forever transforming. A world of difference. For those with an ambition to grow, focusing solely on their own business performance isn’t enough. More so in the logistics sector than many others, examining your external environment is critical to growing successfully. So how is a port business best placed to combat change in their external environment? By predicting it. Although the future can never be predicted perfectly, by examining their environments carefully a business can anticipate and, potentially, influence environmental change. This article focuses on the logistics industry and looks at examples of macroenvironmental factors that terminal operators could consider when determining their strategic direction. Situational analysis Analysis is the foundation of any strategic management plan. Data must be collected

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and analyzed to identify issues and key trends. A situational analysis involves a thorough examination of internal and external factors affecting a business. Layers of the business environment By performing a situational analysis, a terminal operator can determine the factors that influence the terminal operator’s ability to deliver value to stakeholders, and drive the development of their competitive advantages and strategic direction.

The Macro Environment (External Environment)

The macro environment consists of external elements that exist outside of a business’s control that can significantly impact its performance and its ability to compete in the marketplace. For businesses in the logistics industry, their exposure to macro-environmental elements is often magnified due to their global footprint. A commonly used framework to determine how a business might be affected by future issues is the PESTEL analysis. This involves examining the political, economic, social, technological, environmental (green), and legal environments. PESTEL analysis By categorizing environmental (in the broadest sense of the word) influences into six main factors, PESTEL provides a comprehensive list of influences on the possible success or failure of particular strategies. The PESTEL factors exert considerable direct and indirect pressures on both domestic and international business activities. Most macro-environmental issues can be divided into separate categories; however, some external issues fall into multiple categories, for example the 9/11 terrorist attacks and the recent British exit from the European Union, which will be felt for decades to come. Issues that arise in one aspect of the environment are usually reflected in other areas as well. The list below illustrates just a few of the potential aspects to consider for each of the PESTEL factors. Terminal operators will be familiar with the factors most relevant in the context of their terminal. Political factors Political factors reflect the stability of the political environment and the attitudes of political parties. Issues that must be considered include trade regulations, tax guidelines, employment laws, resource management and planning, and land use zoning. Examples:

New governments: Newly elected

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“Terminal operators that put a microscope on their macro environment can cope with change and gain a competitive advantage.” exporters flourish. A nation’s currency is often directly related to the amount of trade a terminal in the country handles. Social factors Social, or socio-cultural, factors reflect the culture of the society that a business operates within. They may include demographics, age distribution, population growth rates, level of education, distribution of wealth and social classes, living conditions and lifestyle. Examples:

officials can have a dramatic effect on the political landscape. This in turn could have a significant impact on the logistics industry. For example, if Donald Trump is elected as US President, his plans to build a wall between the US and Mexico will affect local and global trade. Trade agreements: New agreements like the Trans-Pacific Partnership (TPP), a free trade agreement which looks to liberalize trade and investment between 12 Pacific-rim countries, will influence where the countries involved will import from, and export to. Terrorism: Terrorism and war typically result in priorities changing throughout the maritime industry with security taking precedence. Security requirements and wartime priorities compel the world’s governments to more closely monitor and inspect all vessels and cargo entering their nation’s ports. The resulting delays and consequential financial impacts are felt all along the supply chain.

carrying over 19,000 TEUs. Shipping lines are forming alliances to ensure full vessels. Megaships are causing cargo peaks in terminals and putting a strain on hinterland transport. The strength of local currency: For exporters, when the local currency is strong, demand weakens but importers find themselves in an upswing. Conversely, when the local currency is weak, importers suffer and

Loss of jobs due to automated machinery: The introduction of automated machinery such as container-stacking robotic straddles means that job losses are likely to occur. More efficient and technically advanced than current processes, automated features including the use of lasers for guidance will reduce the need for straddle drivers. Growth rate: As the economies of the BRIC countries (Brazil, Russia, India and China)

Economic factors Economic factors reflect the role the wider economy can play in a business’s success. Issues to consider include economic growth rates, the cost of raw materials, exchange rates, inflation and interest rates, economic stability, and levels of employment and unemployment. Examples:

Megaships: Continually searching for economies of scale, the world’s largest container carriers are increasingly introducing mega-ships capable of

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advance, so to do opportunities for businesses to export to these markets. With fast-growing middle-class sectors keen to spend on overseas branded products, many exporters are turning their attention to these burgeoning nations. Technological factors Technological factors reflect how technology can impact the introduction of a product or service into a marketplace. Factors include technological advancements, lifecycle of technologies, the role of the Internet, and research funding and development by governments and businesses. Examples:

Software: Many terminals worldwide are still using antiquated systems to track cargo and handle terminal operations manually or with basic tools like spreadsheets. A Terminal Operating System (TOS) is a software solution that allows a terminal operator to track cargo in real time, and ensures costs are captured, minimizing revenue leakage. Automated machinery: As the size of container ships and throughput increases, terminal operators are beginning to introduce robotic cargo-handling capabilities. Unloading and loading thousands of containers requires coordination that many deem best left to machines. Integration across supply chains: The integration of data and processes across organizations in the logistics supply chain is increasing. Terminal operators need to consider what implications this will have on processes and technology. Environmental factors Environmental factors reflect the laws and attitudes towards the surroundings in which a business operates. Factors include attitudes towards “green” solutions, management of waste, renewable energy utilization, climate change, and recycling. Examples:

Pollution: Pressure may be exerted by governments, states or

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PESTEL factors are often referred to as the ‘drivers of change’. They are the catalysts driving the way your business must adapt. Ignoring or failing to identify drivers of change can have a severely negative impact on your business.

environmentalists to ensure terminal operators address factors such as water pollution, air pollution, aesthetics, noise, and transfer of foreign marine species. Expansion: Terminals are often seen as eyesores, so terminal operators must ensure that any future terminal expansion plans fit in with their environmental settings and their potential impact on aesthetics/visual resources is approved by local councils and the public. Availability of natural resources: A country’s access to natural resources, and the abundance of such resources plays a major role in global trade. Legal factors Legal factors reflect the laws and regulations that must be abided by and any impending legislation that may affect the industry. Examples:

Anti-competitive practices: Shipping mergers are resulting in dwindling supplier numbers, which many argue are eroding once competitive markets. Organizations such as the U.N. trade and economic think-tank UNCTAD believe the behavior is

anti-competitive. Individual governments may look to introduce anti-competitive laws to combat this. Workplace safety: Safety and security concerns are forcing terminals to impose regulations and provide facilities that may have no commercial return on investment. Industry regulations: Industry-wide laws such as the container weight verification rule introduced by the Safety of Life at Sea Convention (SOLAS) present both hurdles and opportunities to terminal operators. Applying your analysis For terminal operators it is important to examine how these factors are changing and the implications that they will have. Many of these factors are linked. For example, a technological factor (a new software system) might have an effect on an environmental factor (reducing pollution). Analyzing these factors and their interrelationships has the potential to create lengthy and complicated lists. It is therefore essential to narrow down the possibilities in order to identify the key drivers for change.

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Identifying key drivers for change helps managers to focus on the PESTEL factors that are most important and which must be addressed as the highest priority.

Key drivers for change The data gathered by conducting a PESTEL analysis allows a terminal operator to identify the key drivers for change. From the list created, the key drivers for change are the factors that are most likely to have a high impact on the success or failure of the terminal’s strategy. Key drivers will differ depending on the industry. For instance, key drivers for a retailer may include social factors such as an aging population, and economic factors such as employment levels. Whereas shipping companies, however, may be more concerned with legislative changes such as the new SOLAS Verified Gross Mass (VGM) rule, and political factors such as new governments who may introduce funding and policy changes. Building scenarios By creating a selection of scenarios, a terminal operator can predict plausible future macro-environmental conditions that they may face. Scenarios are best developed by taking two of the key drivers for change that have a high potential impact, and a high degree of uncertainty, and plotting them against each other. The factors should be sufficiently different so as to allow for significantly divergent outcomes.

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As an example, a terminal operator may see the following two macro-environmental factors as their key drivers of change: 1.

Availability of dockside land – How readily available is dockside land for purchase and terminal expansion? Political stability – How stable is the political environment in which a terminal operates?

Expansion: A stable political landscape and the ability to increase the size of operations lends itself to an expansion strategy. Technology focus: With a stable political environment and a lack of available land for expansion, a potential strategy for terminal operators is to make current operations more efficient and effective with an investment in technology like a Terminal Operating System (TOS) or automated machinery. International selective: With potential land for growth but political instability, one option is to employ a cautious expansion strategy that factors in what affect an international trade embargo with selected countries would have.

National/inland focus: With a lack of available land for terminal expansion and an unstable political environment, a potential strategy for a terminal operator might be to focus on regional or domestic trade by strengthening inland operations with intermodal hubs. The scenarios developed should not be given probabilities, but should be used by management to be aware of the future conditions they may face and the potential impacts that these conditions could have. Contingency plans should be developed for each of the scenarios. Empowering management Examining the macro environment can provide crucial insights for terminal operators with growth ambitions. By doing so, a terminal operator can more effectively develop strategies that pay attention to opportunities and threats that may arise in the future. A comprehensive situational analysis including determining PESTEL factors, selecting the key drivers of change, and building scenarios can lead to better planning and decision making. Combined with intuition and judgement, management will be empowered to make more effective decisions. By predicting change and having contingencies in place, a terminal operator improves their chance of long term survival. In the end it could make a world of difference. l

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WHEN DATA BECOMES INSIGHT In the past century, very few innovations aside from the Internet have transformed corporate operations quite like Business Intelligence (BI) has. While concepts associated with BI first appeared in literature during the mid 1800s, it wasn’t until 1958 when IBM researcher Hans Peter Luhn published a paper titled, “A Business Intelligence System,” that the concept gained greater awareness as a viable vehicle to support intelligent decision-making.

n 1989, Gartner futurist Howard Dresner introduced BI as an umbrella term to describe concepts and methods to improve business decision-making by using fact-based support systems. It wasn’t until the late 1990s that the term became widely-used. Today, we are witnessing a surge in market demand, for both intelligent BI and analytics solutions. Skilled personnel, such as data scientists, are being used to help organizations extract value and actionable insights from the data itself. Gartner Research2 has forecasted that the BI and analytics market would reach $16.9 billion in 2016, an increase of more than 5 per cent from the prior year alone. Furthermore, on the professional skills-side, data science has been noted in everything from Harvard Business Review to Glassdoor as one of the hottest and fastest-growing jobs on the market today. Recent research by McKinsey Global Institute5 validates this trend, projecting, “By 2018, the U.S. alone may face a 50 to 60 per cent gap between the supply and requisite of demand of deep analytical talent.” Most businesses today move at the speed of light, and as part of that, access to timely and accurate data is critical. The ability to automate not only the collection of, but also, the analysis of the massive amounts of information processed on a daily basis, has provided organizations with the ability to make business decisions based on near or

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actual real-time facts, rather than antiquated processes or unreliable intuition and gut instincts. The pay-off is having real results. According to additional research from McKinsey, “Spending on analytics to gain competitive intelligence on future market conditions, to target customers more successfully, and to optimize operations and supply chains generated operating-profit increases in the 6 percent range.” Further, companies that adopt big data analytics early can significantly increase the

speed at which improved operating profits can be realized. Companies like AT&T and American Express have made big bets on the promise of Big Data. For example, AT&T has opened a Big Data Center of Excellence in Plano, Texas to improve internal and external operations. American Express on the other hand, is using Big Data in the areas of service excellence, billings and risk management. A company spokesperson told The Wall Street Journal that, “Big data analytics have helped us significantly reduce the lag time to

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ELEVATING TO NEW HEIGHTS

‘OICT, a high productivity terminal and the gateway port of Oman’

TERMINAL OPERATING SYSTEMS

“What do we do with all that data? This is the next big thing for the next coming months and years. At Maersk Line, they have had success developing technical strategies alongside MMT regarding how to minimize operational expenses, and this is also thanks to data. You learn more about how the equipment functions on board the ships, and how to simply optimize the way in which you work with the equipment and lessen operational costs […] This is just a scratch on the surface compared to what possibilities big data will give us.” Paolo Tonon, Head of Maersk Maritime Technology (MMT) insight and discovery, allowing us to more rapidly enhance customer experience.” With documented use cases for BI, big data and data analytics among mainstream corporations, the question now becomes: Is it time for ocean shipping and/or the broader global supply chain to consider these types of solutions for their own operations? The answer is yes. SUPPLY CHAIN CHALLENGES CALL FOR OPERATIONAL INSIGHTS In an industry where valuable, unstructured data is in surplus yet remains largely untapped, the potential benefits that near-real-time or even realtime insights can provide is tremendous. And while the industry has modernized its view and use of software and other technology solutions over time, attitudes towards BI and data analytics in particular have been slower to take off. Speaking at the recent Maritime CIO Forum in Oslo, Norway, Martin Kits van Heyningen, CEO of KVH Industries, Inc., discussed the immaturity of BI usage in the space, saying, “The maritime industry has spent the past 20 years trying to limit the amount of data going on and off vessels, while the rest of the world has

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been doing the exact opposite in adopting big data.”8 At the heart of the matter, Big Data and analytics enable companies to understand their businesses better, and at the same time, gain greater transparency into the partners they work with and the customers they serve. What’s more, supply chain challenges ahead both on a macro, global-level and a micro, more

MACRO GLOBAL CHALLENGES • • •

• • • •

Overcapacity & decreases in freight rates Slow economic growth Carrier alliances & increasingly complex network of trading partners – everyone is trying to raise the bar on efficiency & productivity Preparation for mega vessels Data quality Increasing number of maritime regulations (i.e. SOLAS Weight Verification Mandate) Political turmoil

MICRO TERMINAL CHALLENGES • • • •

Budget cuts and/or underinvestment in port and terminal infrastructure Freight congestion Skills shortage Labor disputes Operational goals (i.e. automation; increase productivity; reduce vessel turn time) The use of home-grown or outdated terminal systems

regionalized-level (see lists below) - cannot be overcome by existing technology, equipment, people and processes alone. A deeper, more analytical layer of information and insights will be critical for creating long-term, sustainable change in the industry. THE POWER OF ANALYTICS Perhaps the biggest barrier for BI in the general supply chain and in particular the container terminal environment is not a lack of data itself, but the inability for terminal personnel to access, analyze and apply the data in meaningful ways. The use and collection of data in container terminals today is widely-known to be manual, slow, labor-intensive and error-prone. For the most part, operators have lacked the tools, resources, and in many cases, the mindset required to improve operational performance. And of those that are beginning to test the waters with BI-like concepts, most of the work is being done in Microsoft Excel spreadsheets versus within a dedicated solution designed exclusively for Big Data and analytics—and it’s happening in some of the most modern and technically advanced terminals in operation today. Yet as margins continue to shrink as carriers continue to call for improved productivity and reduced vessel turn times, a growing number of terminals are warming up to the idea that technology-backed data insights can inform, and in some cases, predict events that impact short and long-term operations. This includes everything from improving operational visibility across the

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terminal operating systemS

global supply chain to understanding when and where terminal delays occurred, what caused them, and how both operations and customers were impacted over time. Furthermore, terminals will inevitably be challenged to keep pace with others members of the supply chain community that are more mature on the BI spectrum. Carriers in particular are among this forwardthinking group. In a recent interview with ShippingWatch9 , Paolo Tonon, head of Maersk Maritime Technology (MMT), not only made bold statements about the future impact of Big Data on the industry, but also discussed the carrier giant’s own data strategy, including how it’s leveraging the 30 terabytes of data it downloads from its vessel fleet each month to improve operations [insert call-out quote/graphic below]. Mitsui O.S.K. Lines (MOL) has also been vocal in its commitment to Big Data, announcing in February 2016 10

that it would launch a trial data transmission and accumulation program in an effort to promote innovation throughout the global maritime sector. Lastly, as the industry in general calls for greater collaboration and information-sharing—particularly between terminal operators and ocean carriers to achieve higher levels of productivity—the ability to capture, analyze and transmit information quickly and accurately becomes critical. THE VALUE OF KPIs IN CONTAINER TERMINAL OPERATIONS Key performance indicators (KPIs) are standard measures in virtually every industry, providing visibility and insight into how well (or not) companies are meeting important business goals. In container terminals in particular, their use is both critical and constantly-evolving based on changing industry factors. In the past, common KPIs focused on overall terminal TEU throughput and vessel turn time. Today, with

advanced technologies and automated processes, a lot more data is available that can measure key performance indicators at all levels of the terminal’s operation. The operational peaks and valleys brought on by the arrival of larger ships enhance pressures to cut costs and improve productivity. In order to maintain a competitive advantage, timely access to data and their application against key performance indicators is critical. Having the right tool to provide comprehensive and agile analytics can deliver valuable insights that unlock the value of TOS data to help improve decision-making, ultimately increasing productivity and reducing costs as added benefits. Analytical KPIs can be used to provide insights into operations that can: •

• •

•

View aggregated data at a glance and gauge the overall health of the terminal which identifies challenges in the operation to improve and expedite decision making. Drill into waterside related KPIs and metrics to reduce vessel turn time. Increase visibility into yard operations by blocks and CHE productivity by work area to expedite the movement of containers in the yard, reduce rehandles and associated costs. Measure truck turnaround time and identify impact on terminal productivity by drilling into container level details. This helps to speed up container processing time, reducing costs and increasing productivity.

YOUR FUTURE. INFORMED. As a result, data-driven insights have the power to help the collective ocean shipping industry overcome its biggest challenges, and at the same time, capitalize on the vast market opportunities ahead. Imagine a world where operational efficiency at the container terminals is improved so that even the mega vessels can be serviced seamlessly; historical data can predict future events; operations and machine data integrate to maximize the machine lifecycle (reducing maintenance and replacement costs); and operations are visually managed through areal-time dashboards and interactive kiosks. These are just a few of the many possibilities that innovative BI tools can provide. l

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Quarterly — 2nd Edition 2016

Customs, Security & Surveillance

customs, security & surveillance

AUTOMATION AND RISK REDUCTION Challenges in ports With its comprehensive industry knowledge, SICK has become the number one partner for sensor solutions in port processes. Innovative, fast development and implementation of comprehensive customertailored solutions is where SICKâ&#x20AC;&#x2122;s strength resides.

Automation and risk reduction at ports A high level of requirement for terminal automation and risk reduction across the board are driving port operators worldwide. Requirements are in connection with the identification, detection, measurement, protection and collision prevention of goods, cranes, booms, containers and essential port equipment. PROTECTION Avoiding collisions involving containers, cranes, and other objects is the highest priority when it comes to port logistics. Specific demands are placed on sensors in order to guarantee the level of outdoor safety and security required in ports.

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POSITION DETECTION Sensors assist in correctly positioning and detecting freight and other objects. They determine data and transmit it to the relevant controller to ensure that every item of cargo reaches its destination in one piece. MEASUREMENT Sensors and sensor systems measure the dimensions, contours, speeds and distances involved in freight positioning thereby optimizing transport routes and icreasing handling safety for operators. DETECTION Sensors provide assistance for controlling and maneuvering cranes and other vehicles. They detect containers and bulk materials that

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customs, security & surveillance

are to be picked up by transportation equipent and can determine whether there are objects in the vicinity of moving vehicles. Applications in Focus FOCUS 1: QUAY AREA It is essential that collision avoidance and efficiency are provided on quay cranes, as larger vessels are launched and avoiding damage is of paramamouunt importance – especially since the number of automated ship-to-shore cranes continues to increase. SICK’s sensors determine the contour and position to enable them to operate economically and without any damage being caused. 1. Collision avoidance on ship-to-shore crane booms and between adjacent cranes, using laser scanners connected to a programmable safety controller. 2. Distinction of different container lengths,

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4. 5.

using laser scanners in the spreaders that can distinguish between a 40-foot container and two 20-foot containers by detecting the gap in between. Collision avoidance on the path of a ship-toshore crane, using laser scanners with 270° angle and warning fields. Collision avoidance on the path of a ship-toshore crane, using radar technology. Shipment profile determination to help position the spreader as it moves over the cargo hold. Adjustment of the spreader for containers of different sizes, using a rotary encoder system. Access protection at lashing platforms, using multiple light beam safety devices.

FOCUS 2: YARD AREA Different vehicles are used to handle containers depending on the volume of freight.

For example, manned forklift trucks are sufficient for smaller volumes, while manned gantry cranes and then unmanned automated stacking cranes are required as container volume increase. The level of automation and requirements for protection increase as the number of handled containers increases. 1. Collision avoidance on RTG – rubber tired gantry cranes, using laser scanners connected to a programmable safety controller. 2. Yard area profile determination, with laser scanners scanning the container stack below the gantry crane, then creating a contour profile of the container stack to avoid collisions when using the spreader to pick up or set down containers. 3. Collision avoidance on RMG – rail mounted gantry cranes, using long range distance sensors. 4. Access control at ACS – automated stacking cranes, using laser scanners with RFID and GPS expansions.

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customs, security & surveillance

6. 7.

Prevention of tractor trailers being lifted by gantry cranes, using laser scanners to monitor the area around the truck’s front and rear wheels at about 30cm above the ground level when containers are being unloaded. Position determination of trolleys, using linear encoders operating magnetically. Electrified RTG crane lane assistance, using optical distance sensors.

For more information please contact: SICK FZE, Phone: +971 4 88-65878, Email: info@sick.ae

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FOCUS 3: GROUND TRANSPORTATION Straddle carriers, automated guided vehicles, terminal tractors and heavy trucks are used to transport containers between many different areas in the container yard. While some of these moves are automated others are not, and benefit from sensors that assist in operator performance and productivity. 1. Driver assistance on a reach stacker, using laser scanners or a 3D camera system connected to a display monitor inside the operator’s cabin. 2. Protection of AGV – automated guided vehicles, using laser scanners to slow down and stop to avoid collisions. 3. Length measurement on the boom of a reach stacker, using wire draw encoders. FOCUS 4: INTERMODAL AREA Containers are transported at intermodal terminals and container yards ready for shipment with their onward transportation generally taking place on inland routes via river, rail or truck. SICK’s sensors assist in highly automated processes involved in loading the containers. 1. Determination of the spreader height position, using long range distance sensors. 2. Access protection, using electromechanical safety locks. 3. Collision avoidance, using laser scanners connected to a programmable safety controller. 4. Position determination of trolleys, using linear encoders.

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SECURE COMMERCE.

CONNECTED.

Integrate and Optimize Cargo Screening Operations With ClearView™. L-3’s ClearView software solution brings new value-added capabilities to customs and security operations, delivering maximum efﬁciency, lower resource costs and support for diverse multi-vendor legacy NII systems. Operating in a secure, broad enterprise network environment, ClearView seamlessly combines image analysis, system operations and data from all scanning systems onto a single, centralized display. This collaborative detection capability yields higher throughput, greater operational efﬁciency and increased probability of detection. Our team is ready to do for you what we’re already delivering for customers globally. For more information, please visit L-3com.com/sds. Security & Detection Systems

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port & Maritime Education

Tasneef graduates a batch of Emirati Engineers at Genoa University As a part of its strategy to build a generation of UAE leaders, Emirates Classification Society “Tasneef” aims to support and empower a group of Engineer students who demonstrate exceptional capabilities in Maritime Economy-Related Services and Technology

o empower the UAE’s youth by providing them with advanced skills in the marine and maritime sciences, Tasneef graduated 10 engineers after completion of an advanced training course in the engineering field from Genoa University. The university, one of the biggest in Italy, was established in 1481 and has main majors such as Naval, Electrical, Electronic and Telecommunications Engineering. This accomplishment, fully organized by Tasneef, represents an important step towards the framework

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of its vision that aims to transfer advanced knowledge and technology in the maritime field to the young national calibers. Eng. Rashed Al Hebsi, CEO of Tasneef said “The UAE leadership is fully aware that continued prosperity and development in the UAE is based on the ability to build sustainable economic elements that are capable to provide the same level of development and affluence for next generations in the post-oil era.” He also added that the maritime economy has the potential to play a leading role in realizing a sustainable economy, especially as the UAE annual expenditure on marine and shipping services exceeds AED272 billion. “Consequently, building the capacities of young citizens in this area will ensure our leadership of the global maritime arena, as it will also serve as the foundation for building an integrated internal economic cycle that utilizes the scalable spending allocated by the UAE to maritime services in building internationally transferable national economic capabilities.” Al Hebsi pointed out "Aiming to transform the UAE from a consumer of maritime services to an exporter, we can already see the fruitful results of this vision. Ships, yachts, and major offshore platforms manufactured in the UAE are being exported to the most advanced countries of the world, including the United States, Germany, and others.” He also explained that UAE factories and dry-docks have gained several key prestigious international awards and entered the scientific research and development filed. The UAE has issued several new standards, some of which are world’s first, such as the UAE Yacht Code, the current developed Standards for Floating Seahorse Villas, and the Sahara Notation for building and operating ships in warm water, which saves more than 15% of the cost in vessel construction and operation, compared to the standards developed for ships operating in cold water, and enhances security and safety specifications for crews and passengers. Tasneef has launched "Tasneef Academy" which aims to build experience and scientific knowledge, and transfer technology to the UAE and the Arab World. The academy works in partnership with several global and regional academic

bodies, including the Italian Classification Society “RINA”; the Jordan Academy for Maritime Studies; and the Arab Academy for Science, Technology and Maritime Transport in Egypt. This comes in line with Tasneef Academy’s comprehensive plan to become an integrated hub for preparing and training experienced staff in naval shipping, classification, quality, and business assurance continuity in the region. Tasneef also participated in the 12th Mare Forum conference in Italy, which highlighted

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port & Maritime Education

The academy works in partnership with several global and regional academic bodies, including the Italian Classification Society â&#x20AC;&#x153;RINAâ&#x20AC;?; the Jordan Academy for Maritime Studies; and the Arab Academy for Science, Technology and Maritime Transport in Egypt. terminaloperator.com

Italy's role in the global marine and maritime arena in terms of manufacturing and trade. This explains the priority of this summit for the UAE maritime sector and Tasneef in particular. Their participation was focused on promoting the UAE vision to fill the gap in the maritime economy for a central hub located with maintenance, manufacturing, research, and development capabilities, as well as a complete range of logistics and commercial shipping services. This international hub would also need to be in proximity to the new emerging markets in Asia

and Africa, which will represent the majority of the earth's population and consumers of goods and commercial services in the coming decades. Taking its infrastructure, its legal environment that attracts international investments, as well as safety and security compared to many other regions in the world, the UAE serves as an ideal destination for companies that are looking for solutions for major problems and challenges faced by the maritime economy globally, amid the considerably slowing economies of many world countries. l

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port tyres

MICHELIN X-TERMINAL T: The first multipurpose tyre for your terminal tractors and trailers The MICHELIN X-Terminal Tractor (XTT) is Michelinâ&#x20AC;&#x2122;s dedicated tyre offer for terminal tractors and trailers used in ports. Ever since it was launched in 2006, this multi-purpose pattern has demonstrated undisputed advantages versus competing offers.

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ost of the terminal tractors in the region are mounted on standard truck tyres that are not adapted to terminal usage, neither for tractors nor for trailers. As a consequence of their low robustness, the truck tyresâ&#x20AC;&#x2122; life time is very limited. Their tread life is at best half of that of the MICHELIN XTT, resulting in a cost per hour that is much higher. In addition, truck tyres have a significantly lower productivity because they wear out and get damaged much faster and easier, leading to a higher and costly machine downtime. This in its turn leads to a higher consumption of tyres, requiring a bigger tyre stock, adding to overhead costs. When it comes to terminal trailers, often solid tyres are used in the region, which are not adapted either to a port environment. The weight of these terminal trailers cause frequent rim cracks and increased fuel consumption in the solid tyres, due to a higher rolling resistance. Moreover, as these tyres are suitable for trailers only and not for tractors, a specific tyre stock is needed, increasing required storage space and logistic challenges. As a multi-purpose tyre, the MICHELIN X-Terminal Tractor offers a single solution for all axles on tractors and trailers, increasing both port tractor and trailer productivity significantly. Not only does it overcome storage space and logistic challenges, it also reduces downtime, increases tyre life and has an outstanding damage resistance, thanks to a thick tread band, reinforced sidewalls and Michelin radial technology. The MICHELIN XTT tyre is also particularly high performing for the safety it provides, due to its tubeless technology and its excellent handling. Last but not least, the MICHELIN XTT is an environmental friendly tyre as its lower rolling resistance results in higher fuel efficiency. Its excellent reparability and tyre life also cause less waste and raw material consumption. The MICHELIN X-Terminal Tractor comes in 2 dimensions (310/80 R22.5 and 280/75 R22.5) and is easily fitted on the common drop center rims (8.25 and 9.00 inch). l

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port tyres

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port tyres

BKT releases radial tyre range for Port equipment Port tyres from the new line have been comprehensively tested in-house and succesfully deployed with various port operators since last year.

alkrishna Industries Ltd. (BKT) has released a new range of radial tyres for various applications related to port segment.

• • •

Forklift – Pattern LM81 Reach Stacker – Pattern PM90 Straddle Carrier – Pattern PM93

These new patterns were tested in-house successfully last year. These patterns are currently fitted with port operators across the world and have been running successfully since then. In addition to the specific USPs offered by these patterns they offer lower fuel consumption. These tyres are also Anti-static compliant due to which they are capable of dissipating static charge from the vehicle l

Forklift – LM81 The LM81 pattern is being developed for a wide range of heavy forklifts. This pattern has an aggressive design which offers excellent traction. The unique tread compound offers long wear life. The radial casing absorbs surface irregularities to provide riding comfort. It also has a strong all steel casing and reinforced sidewall which provide maximum stability and handling in lift mode. The LM81 pattern is also Anti-static compliant.

Reach Stacker – PM90 The new pattern PM90 has been specially designed for reach stacker application. It offers a strong casing along with extra deep tread for excellent wear life. It has a wider center rib and reinforced sidewall for exceptional operation stability in lift mode. The pattern has an optimum foot print for even load distribution and high contact patch. It also has a unique tread compound which offers free rolling and higher service life. All steel casing and high tensile steel belts provide excellent resistance to snags & punctures. The PM90 pattern is also Antistatic compliant.

Straddle Carrier – PM93 The new pattern PM93 has been specially designed for straddle carriers. This pattern offers superior durability and exceptional long wear life. In addition, it offers excellent stability and riding comfort which increases operator confidence and reduces fatigue. It comes with strong all steel casing for high durability and its unique tread pattern offers low rolling resistance. PM 93 tire is Antistatic complaint.

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LM81

All Steel radial tire with multilayer steel belts Low rolling resistance Superior stability Increased puncture resistance Exceptional cut and chip resistance

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When strong infrastructure

partners with growing demand

As world trades moves full steam ahead, a smooth supply chain is critical. With 40 years of managing the worldâ&#x20AC;&#x2122;s most productive ports, Gulftainer has the expertise you need. Our constant innovation and awardwinning performance are always on call to partner your global ambitions. Gulftainer operates in Khorfakkan and Sharjah in the UAE, Iraq, Brazil, Lebanon, Saudi Arabia and the USA. gulftainer.com

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