Quarterly - 3rd Edition 2016
TERMINAL operators Abu Dhabi Ports signs container terminal concession with COSCO P.24 mega vessels Hapag-LLOYD, UASC merger gets EU approval P.50 container hanDling and crane technology Kalmar - New range of empty container handlers promises better performance P.66 TERMINAL OPERATING SYSTEMS Navis Business Intelligence Platform P.72 mooring & berthing Cavotec announces generational change of leadership P.80 port lighting Illumination Technology Marches On P.84
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editor’s note
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e begin this issue of Terminal Operator with the latest developments at Abu Dhabi Ports. Despite challenging conditions Abu Dhabi Ports has seen a slew of recent partnerships and set new records in productivity. The Port Hamad in Qatar has become operational this month and a new entity called QTerminals has been created to manage operations. Read about the details inside. A number of Southeast Asian ports are preparing for capacity expansion in a big way. We bring you a report that rounds up the major developments on that front. In our Mega Vessels section, we bring you the latest on the Hapag-UASC merger and the Maersk’s takeover bid for Hamburg Sud. Jonathan Beard, Head of Transportation & Logistics at Arcadis, shares some very insightful thoughts on the impact of mega vessels and consequences thereof. Container handling company Konecranes has bagged a large order from the port of Virginia while Kalmar has introduced an innovative solution for handling of empties. Liebherr has introduced the most powerful 300-tonner mobile crane in the market. In the TOS section we bring you an interesting case study carried out by Navis with PD Ports on the applications of the Navis Business Intelligence Platform. Cavotec meanwhile is seeing a change of guard at its helm as Patrik Tigerschiöld takes over as Deputy Chairman. The industry is coming to terms with lower volumes and larger ships and many players are adapting their infrastructure and operations to meet the challenges of the new normal. As we enter the new year many of the biggest names are announcing mergers and partnerships. Terminal Operator looks forward to bringing you reports on how these play out in 2017.
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Official Partners
Contents Terminal Operators
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Abu dhabi ports Abu Dhabi Ports signs container terminal concession with COSCO
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Mwani Qatar, Milaha Join Hands to Manage Hamad Port
Masterplanning for Southeast Asian Ports
Salalah
36 Safety comes first at SOHAR Port and Freezone
38 Industrial Port coming up in the Suez
42 Salalah Volume Surges on Transshipment and General Cargo Growth
44 Challenging Times for Global Terminal Operators
Official Partners
Contents mega vessels
terminal operating systems
UASC hapag lloyd
50
72
Navis Business Intelligence Platform
76 hapag-LLOYD, uasc merger gets eu approval
52 How Network Cameras Can Help Keep Workers and the Public Safe
mooring & Berthing
54 A.P. Møller - Mærsk A/S: Maersk Line to acquire Hamburg Süd
Mega-Vessels, Mega Alliances and Port Performance
58 80 Cavotec announces generational change of leadership
ports & lighting
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Hanjin aftershocks may redefine container shipping
container handling & crane technology
konecranes
62 KONECRANES BAGS MAJOR ORDER IN US
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New range of empty container handlers promises better performance
Illumination Technology Marches On
keep threats and people safe by securing your sea and land borders
For further information on the product or sales, please visit www.smithsdetection.com or contact globalsales@smithsdetection.com
TOC MIDDLE EAST
DP World – UAE Region to host TOC Middle East TOC Middle East conference & exhibition taking place 6-7 December 2016, Le Meridien Hotel Dubai, UAE
Keynote announced Mr Mohammed Al Muallem, SVP & Managing Director, DP World – UAE Region has been announced as the Keynote for the TOC Middle East conference. Jebel Ali Port, operated by DP World – UAE Region is the largest marine terminal in the Middle East and the flagship facility of DP World’s portfolio over 65 marine terminals across six continents. Official opening ceremony H.E. Jamal Majid Bin Thaniah, NonExecutive Director & Vice Chairman, DP World will officially open the TOC Middle East exhibition – which has more than 50 port technology stakeholders exhibiting.
TOC Middle East to welcome South African delegation of VIPs Sihle Zikalala MPL, MEC for Economic Development, Tourism & Environmental Affairs, South Africa will attend the official opening ceremony and will also address the delegates in the conference. Mr Zikalala’s department is responsible for all the transport and infrastructure networks in that region. Port updates Against the backdrop of slow global trade growth, the Middle East is standing out, in part because oil exporters are benefiting from the recent modest recovery in oil prices. Key players from this dynamic region will be delivering updates to the audience at TOC Middle East in Dubai this year. DP World – UAE Region are joined by other regional port operator heavyweights including Iain Rawlinson, Group Commercial Director of Gulftainer, Christian Blauert, CEO at Yilport and Mark Geilenkirchen, CEO at SOHAR Port and Freezone. In addition to hearing from port operators, the TOC audience will also hear from major port manufacturers who will deliver technology updates and will introduce the latest equipment and software available. Iran In light of the ongoing easing of sanctions against Iran, there is an increased focus on this country at
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TOC Middle East this year. Whilst Hanjin Shipping has recently suffered from a shock collapse, some of the world’s largest container shipping lines have been stopping in Iran for the first time in nearly a decade. Iran’s state shipping carrier, the Islamic Republic of Iran Shipping Lines (IRISL) has seen its global ranking surge this year and currently ranks as the 22nd largest carrier. Dr Mohammad Saeedi, Chairman & MD, IRISL will deliver the afternoon Keynote presentation. With ambitious plans to move into the top 10 container shipping lines by 2021, Dr Saeedi will discuss the opportunities, achievements and challenges in delivering this growth. ICT in the spotlight The slowdown in word trade means there is a real need for the whole supply chain to invest into innovative solutions in information and communications. Emerging technological breakthroughs in fields such as artificial intelligence, robotics, the Internet of Things, autonomous vehicles, 3-D printing and quantum computing will bring with longterm gains in efficiency and productivity for the whole sector. Discussing how this will happen, and how quickly this can happen will be Professor Christoph Wartmann, CEO at tech giant Nexiot, Alaa Mattar, COO at Almajdouie Logistics Company and Lars Jensen of SeaIntelligence Consulting.
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TOC MIDDLE EAST
“I know it doesn’t look like much now,” Karl Gheysen, the CEO of Khorgos Gateway, stated “but we’re building a new Dubai.” afforded by the creation of the New Silk Road. TOC newcomers Khorgos Gateway are joined at TOC Middle East by Camelot Management Consultants and India’s Hauer Associates.
One Belt One Road The USD $1 trillion One Belt, One Road (OBOR) plan centres on the creation of an economic land belt that includes countries on the original Silk Road through Central Asia, West Asia, the Middle East and Europe. “I know it doesn’t look like much now,” Karl Gheysen, the CEO of Khorgos Gateway, stated “but we’re building a new Dubai.” Mr Gheysen will be speaking at the upcoming TOC Middle East and will outline the immense opportunities
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Sea-to-Air Dubai leads in the sea-to-air sector, and even with both air rates and sea rates low at the moment – this is still a critical mode of transport for many shippers. Liana Coyne of Coyne Airways joins this session and has stated she will “highlight some of the areas where and how sea and air operators can better co-operate to take advantage of this, in the nest interests of their clients.” Ms Coyne is joined on this Loadstar hosted session by Youssef A. Beydoun, Head of Cargo Planning & Compliance at Dubai Airports.
Event format maximizes networking opportunities TOC Middle East takes place in the 5 star Le Meridien Hotel & Convention Centre in Dubai. The airport location makes the event easily accessible for international attendees, and the hotel surroundings ensure optimum networking opportunities. The event is comprised of two concurrent debating forums – the Container Supply Chain Conference (CSC) and the TECH TOC Conference; supported by a trade exhibition where industry peers can meet suppliers, swap notes and debate the high level discussion points presented in the conference sessions. The Container Supply Chain (CSC) element is an executive-level discussion forum focused on international trade, container shipping, port development and logistics, bringing together shippers, shipping lines, 3PLs, port authorities, terminal operators, government and other key supply chain members. This is complemented by TECH TOC, designed to engage operational executives in the practicalities of port and terminal performance, with in-depth debates on facility design, automation, operations, equipment and technology from berth to gate. l
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Abu Dhabi Ports signs container terminal concession with COSCO Abu Dhabi Ports (ADP) has signed a container terminal concession agreement with COSCO Shipping Ports Limited - Abu Dhabi (CSPL SPV), a wholly-owned subsidiary of COSCO Shipping Ports Limited.
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he event was held in the presence of Dr. Sultan Ahmed Al Jaber, the UAE Minister of State and Chairman of Abu Dhabi Ports, Zheng Chiping, Deputy Director of the foreign investment department of the National Development and Reform Commission of PRC and Wan Min, President of China COSCO Shipping Corporation Limited.
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Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports and Zhang Wei, Vice Chairman and Managing Director of COSCO Shipping Ports Limited signed the agreement, launching a new and prosperous journey of Abu Dhabi Ports, in line with the aspirations of Abu Dhabi Vision 2030 for a more diversified economy. COSCO Shipping Ports Limited will operate a container terminal
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with a draft depth of 18 metres, with 1200 metres of quay wall and adjacent land. The first 800 metres of the quay length (and the corresponding concession area) is expected to commence operations in H1 2018 and the last 400 metres (and the corresponding expanded concession area) is expected to commence operations in 2020. Once the expansion areas are occupied, the concession area will span an area of approximately 70 hectares with three berths, which will add 2.4 million TEUs a year to the port’s existing capacity of 2.5 million. The agreement includes the option for a further 600 metres of quay length in the future to allow for anticipated volume growth. With this the nominal annual handling capacity will increase to 3.5 million TEUs when all phases are complete, creating a new overall annual capacity of up to 6 million TEUs. The global port operator giant is establishing a joint venture company to operate the new Khalifa Port Container Terminal 2, one of the world’s fastest growing container ports and a leading hub for the Middle East, Africa and South Asia (MEASA) region. As per the agreement, the joint venture company will be entitled to concession rights of Terminal 2 for a span of 35 years, with a renewable period of 5 additional years. CSPL SPV will have the controlling stake in the joint venture company. Among others who attended included Dr. Abdullah bin Mohammed Belhaif Al Nuaimi, Minister of Infrastructure Development; Staff MajorGeneral Pilot Faris Khalaf Khalfan Al Mazrouei, Chairman of Critical Infrastructure and Coastal Protection Authority, and Lin Yaduo, Charge d’affaires at the Chinese Embassy in the UAE, and other senior officials from both entities. “The signing of the concession agreement between Abu Dhabi Ports Company and COSCO Shipping Ports Limited will significantly
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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.
expand trade between China, the UAE and the broader region. It will greatly enhance the UAE and Abu Dhabi’s role as a key logistics and trading hub, between East and West and will also serve to further diversify the UAE’s dynamic and growing economy,” said Dr. Al Jaber. “Under the leadership of President His Highness Sheikh Khalifa bin Zayed Al Nahyan and President Xi Jinping of the People’s Republic of China, our two countries have enjoyed strong bilateral ties across a number of strategic sectors,” Dr Al Jaber added.
Wan Min, President of China COSCO Shipping Corporation Limited, said, “Abu Dhabi’s Khalifa Port is a strategic hub along the ‘One Belt One Road’, as it has unique geographical advantage for the development of terminal and logistics businesses. Its well-developed transportation and nearby ample supply of cargoes are conducive for Khalifa Port to become the next hub port in the Middle East region. “Khalifa Port Container Terminal 2 will be the second overseas terminal in which COSCO Shipping Ports holds the controlling interest. This investment is expected to strengthen COSCO Shipping Ports’ sustainable growth and create value for our shareholders. With the strong support from the large container shipping fleet of COSCO Shipping Group, COSCO Shipping Ports will dedicate its efforts to develop Khalifa Port Container Terminal 2 as a hub of the Upper Gulf region in the Middle East for international container shipping liners. We are confident that the project will stimulate the implementation of ‘One Belt One Road’ initiative, and will promote strategic cooperation between China and the UAE.”
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Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, said, “The Khalifa Port is continuously growing and expanding in every aspect - adding value for its key stakeholders and the international community. Through the new synergy, COSCO Shipping Ports Limited will bring additional volumes to the Port - adding to Abu Dhabi Terminals’ on-going business in Abu Dhabi. It will also ensure that the Khalifa Port maintains a competitive
environment in serving the shipping industry as well as local business. Along with the added capacity, the shipping giant will facilitate specialist expertise, experience, technologies, practices and knowledge transfer, increasing Abu Dhabi Ports’ competitiveness on a global scale.” The expansion of the quay wall is part of the broader developments at the Khalifa Port, which include an innovative new terminal booking, tracking and transaction system for sea and landbased users, advanced RoRo facilities, new liner calls, the development of a regional liner hub and transhipment business to South Asia, as well as the addition of approximately 14.5 million square metres now leased in the adjacent Khalifa Industrial Zone (KIZAD). Other developments and agreements continue to take Abu Dhabi Ports to the next level as a maritime trade gateway to the world’s fastest growing economies. NEW HIGHWAY The opening of the new Mohammed bin Rashid
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Road is a major milestone in enabling Khalifa Port’s expansion and growth plans. Captain Mohamed Juma Al Shamisi said in a statement that the new motorway will serve as a strategic artery linking Abu Dhabi with the rest of UAE as well as the neighbouring countries, enhancing the emirate’s leading position in regional and international trade by improving the movement of merchandise and goods across the country as well as in and out of the UAE. Al Shamisi also pointed out that Abu Dhabi Ports is pushing ahead with its efforts to improve Khalifa Port’s facilities to meet evolving customer needs, and that the opening of the new road would complement plans to upgrade infrastructure at the port to enable it to handle some of the world’s largest ships and accommodate anticipated short to medium term growth in the industry. The 62 kilometre-long road begins at the Emirates Road junction at Seih Shuaib and stretches to the Sweihan Road in Abu Dhabi, passing Al Maha Forest, Khalifa Port and KIZAD. One of the major infrastructure projects carried out by Abu Dhabi in recent years, the highway was constructed to the latest international safety standards and technical specifications Maqta Gateway launches digital vessel operations Abu Dhabi Ports has announced the launch of its digital Vessel Management System which offers customers and stakeholders complete automation of all vessel management processes and services through its Port Community System, Maqta Gateway. Through the new, demanddriven Vessel Management System, all vessels arriving at any of Abu Dhabi’s commercial ports will be able to process the needed formalities and exchange unified digital information with the Port Community. Services covered by the system include vessel registration,
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voyage declaration, vessel call requests, as well as requesting port clearance, marine services, berth shifting and more. Captain Mohamed Juma Al Shamisi commented: “Abu Dhabi Ports has reached yet another milestone in its continuous commitment to offering innovative and competitive solutions to its customers and stakeholders. We are delighted to share the news of launching the Vessel Management System with our partners today which was made possible through our Port Community System, Maqta Gateway.” “The Vessel Management System was built around the needs of local industries and will play an integral role in streamlining and facilitating the import and export activities at our commercial ports, further boosting Abu Dhabi’s position as a leading maritime trade hub in the region. This is closely connected to our support of the digital transformation mandate of Abu Dhabi’s government services as we constantly
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strive to introduce new ways that ease the process of doing business in the Emirate,” added Al Shamisi. Dr. Noura Al Dhaheri, General Manager of Maqta Gateway, added: “Maqta Gateway’s Port Community System is transforming the logistics supply chain and is enhancing the competitiveness of Abu Dhabi’s maritime and trade industry. The Vessel Management System provides community stakeholders with an efficient tool that will improve and facilitate the way they conduct their business by integrating all vessel management operations and services through the Port Community System.” “Our team has conducted extensive research and studies to improve the traditional vessel management operations through utilising best-in-class practices which were then adjusted to the local industry needs before being implemented to all of our commercial ports. We look forward to celebrating more milestones in the future.”
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Shipping agents representing vessels operating in Khalifa Port, Musaffah Port, Zayed Port and the Free Ports have concluded the vessel management training module conducted by the Maqta Gateway team in September ahead of its full implementation. 5 Million Containers’ Milestone Meanwhile, Abu Dhabi Terminals has announced that on October 28 it set a new record by handling 5 million containers representing a major achievement for Khalifa Port Container Terminal (KPCT). The record number was achieved serving the CMA CGM, a vessel belonging to ADT’s long-term customer, CMA CGM Pegasus. The new throughput milestone follows terminal operator ADT’s success in the first half of 2016, which saw Khalifa Port handle 11% more containers than the same period in 2015. Notable and consistent year-on-year growth since KPTC’s inauguration in 2012 represents its increasing role as a crucial logistics hub connecting local and regional trade to global markets. It also represents the success of ADT’s significant investments in KPCT’s infrastructure and facilities to create the Middle East’s first semiautomated and most technologically advanced container terminal.
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“This milestone represents a great achievement in KPCT’s relatively short operational period and truly demonstrates that ADT is on track to become one of the leading container terminal operators in the world. It is a testament to ADT’s vision and spirit, and the investments we have made to continually improve and expand our capabilities and resources,” “This milestone represents a great achievement in KPCT’s relatively short operational period and truly demonstrates that ADT is on track to become one of the leading container terminal operators in the world. It is a testament to ADT’s vision and spirit, and the investments we have made to continually improve and expand our capabilities and resources,” said Abu Dhabi Terminals CEO, Martijn van De Linde. “We pride ourselves on our commitment to our loyal customers and they share in our success and we will continue to strive to exceed their expectations going forward,” he added. Since its establishment in 2006, ADT has achieved regional and international industry recognition for its unwavering commitment to safety, innovation, and excellence, and its rapid growth and success have been globally lauded. SAFEEN INDUCTS 3 NEW TUGS Abu Dhabi Marine Services “Safeen”, the marine services subsidiary of Abu Dhabi Ports, supporting the operations of the network of ports and harbours across the emirate of Abu Dhabi with a range of maritime and quayside-support services. Three new state-of-the-art tugs, specialising in towing and escorting the world’s largest ships that
now regularly call at locations in Abu Dhabi, have been integrated into Safeen’s existing fleet. The 75 BP ASD Azimuth Stern Drive tugs based at Khalifa Port can support the latest generation post-panamax container vessels capable of handling some 18,000 TEUs (standard 20-foot containers). The acquisition of the tugs reflects the increasing demand in the first half of 2016, reiterating the status of Abu Dhabi’s ports as among the fastest growing in the world. With their strategic location, the ports serve as gateways to the Middle East, Africa and South Asia region that is estimated to be worth US$10 trillion by 2020. Over the years Safeen has also strengthened its reputation as one of the safest and most environmentally responsible global service operators across its range of services that include vessel assistance, navigational support, inspections and shipping maintenance at Abu Dhabi’s ports and harbours. Safeen has received the internationally prestigious ISO 14001: 2004 recognising best practices in environmental management systems, and the OHSAS 18001: 2007 issued by Lloyd’s of London certifying best-in-class occupational health and safety in the maritime, shipping and logistics sectors. l
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terminal operators - asian masterplan
Masterplanning for Southeast Asian Ports ASEAN member states have sought to achieve greater inter-island connectivity through its plans of developing a nautical highway system or proposed ring shipping route to boost economic growth and increase their cross-border maritime trade.
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or individual Southeast Asian countries, Thailand, Malaysia, Indonesia and the Philippines will need up to US$550 billion in investment between 2013 and 2020; the port sector alone will need US$119 billion investment, accounting for 22 per cent of total projected investment needs. In the near term, the Association of Southeast Asian Nationsí’ Master Plan of Connectivity (AMPC) and Indonesiaís maritime axis will be the main driver
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for port development. Key port projects that are to be executed in 2017 include the development of mega project Patimban sea port and international hub ports such as Bitung and Belawan/Kuala Tanjung. This is designated to connect the missing links between Indonesia to the Philippines and Thailand. The initiative puts transportbased infrastructure development high on the agenda, among which are seaports as a means to connect mainland Southeast Asia to archipelagic countries. By 2014, intra-Asian trade accounted for 25 percent of Asiaís total annual exports, and is one of the fastest growing trade corridors in the world. This growth has put significant pressure on the existing infrastructure, resulting in port congestion and delays, and led to a pressing need to not only build new ports but also upgrade the existing ones. In Indonesia, the government has also launched the Sea Toll Road programme which calls for the development of new and existing sea ports ñ some of which intersect with AMPCís priority port
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terminal operators - asian masterplan
projects. Limited progress by AMPC has been made in Indonesia as yet compared to the member countries in mainland Southeast Asia, which indicates plenty of opportunities for companies to participate in further port development. In Singapore, the Port of Singapore Authority is developing Phases 3 and 4 of the Pasir Panjang Terminal, with an investment of S$3.5 billion (US$2.6 billion). The terminal is scheduled to become fully operational from 2017. This expansion will increase Singaporeís annual container handling capacity to 50 million TEU. In Thailand, the Port Authority of Thailand (PAT) plans to invest THB120 billion (US$3.4bn) between now and 2020 to turn the country into a marine logistics hub. Up to THB80 billion (US$2.2bn) has been earmarked to develop the third phase of the deepsea port in Chon Buriís Laem Chabang area. The remaining THB40 billion (US$1.1bn) will be divided into THB8 billion (US$228m) a year to develop infrastructure at Bangkok Port. An information-technology system will cost
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In Thailand, the Port Authority of Thailand (PAT) plans to invest THB120 billion (US$3.4bn) between now and 2020 to turn the country into a marine logistics hub
about THB3 billion (US$85m) to serve PATís five ports and provide training for its 3,800 staff to serve business expansion over the next five years at Bangkok, Laem Chabang, Ranong, Chiang Khong and Chiang Saen. The master plan has revised the structures that will be in the area based on the demand to develop Bangkok Port as a hub for imports and exports in the region. The main need is for infrastructure such as a warehouses, distribution centres and offices for the PAT and departments such as customs. China sees a huge market in upgrading infrastructure in Southeast Asian countries. Consequently the Government is supportive of Chinese companies participating in ASEANís infrastructure development projects related to connectivity and port building. China has signed a memorandum of cooperation with Thailand to develop the Kra Canal, located in southern Thailand, as part of its Maritime Silk Road project. Myanmar too is eyeing this opportunity.
It has signed a memorandum of intent with Japan and Thailand in July 2015 to build a major port and a special economic zone, called the Dawei project, with a projected investment of US$50 billion, which if successful, will enable ships to avoid the Strait of Malacca, enabling a shorter trade route from the Middle East and Africa to China and Japan. Further development of the South-Asia ñ Southeast Asian trade route also presents opportunity. Ports in the Bay of Bengal, including Colombo, ChennaiñEnnore, KolkatañHaldi, Chittagong, Sittwe, Kyaukpyu, YangonñThilawa, and Dawei are directly connected with South AsianñSoutheast Asian trade, but many of them suffer from bottlenecks including shallow depth, antiquated facilities, inadequate road and/or rail access, and low operational efficiency. All of the containers from Yangon, Chittagong, and Kolkata are transhipped and are subject to additional costs relative to
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The oversupply of capacity in Vietnam’s ports is indicative that cohesive master plans must be conceived and executed in unison with accurate macroeconomic forecasting and cooperation of other port facilities within the region. direct calls by large container ships. In line with this, many ports around the Bay of Bengal need to develop or expand deepwater container terminals, aiming at a minimum accommodation of 6,500 TEU ships. Opportunities thus exist for major port and terminal developments with substantial supporting infrastructure requirements, priority sites being the Sonadia deepwater port in Bangladesh, the Sagar Island deepwater port in India, and Thilawa port road connections in Myanmar. In Vietnam, the Ministry of Transport is encouraging increased private investment in the countryís ports and plans to scale back its own involvement. The Vietnam Maritime Administration is opening marine infrastructure projects to private
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investors, including 19 seaports, which are together expected to require US$1.98bn in private funding. In an indication of Vietnamís commitment to rolling back government management and ownership of seaports, Minister of Transport Dinh La Thang said the Lach Huyen deepwater port, located in the north and due to be completed in 2016, will be the final port development funded by the state. Severe terminal overcapacity persists in the Cai Mep region, home to a number of deepwater terminals. Located close to Ho Chi Minh City, Cai Mep was opened in 2009 and added 4.5m TEU of capacity in less than four years. This proved to be a massive overestimation of container trade growth by both investors and the government, with current capacity utilisation at the portís seven terminals said to be as low as 30%. However, trade is expected to pick up. According Business Monitor International, 2015 container throughput at the port of Ho Chi Minh City is forecast to rise 8% to 4.99m TEU. Then at the port of Da Nang, container throughput is
expected to rise by 10%, reaching 206,320 TEU, with total real trade growth forecast to increase 6.65%. The oversupply of capacity in Vietnamís ports is indicative that cohesive master plans must be conceived and executed in unison with accurate macroeconomic forecasting and co-operation of other port facilities within the region. The wider trend of trans-Asiatic trade growth continues however, and master plans within the SEA region must continue to pay close attention and adapt to the requirements of the ever increasing demand for efficient shipping in the region. l
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ELEVATING TO NEW HEIGHTS
‘OICT, a high productivity terminal and the gateway port of Oman’
terminal operators - port hamad
Mwani Qatar, Milaha Join Hands to Manage Hamad Port HE Minister of Transport and Communications Jassim Saif Ahmed Al Sulaiti, Chairman of Qatar Ports Management Company (Mwani Qatar) and Sheikh Ali bin Jassim bin Mohammad Al-Thani, Chairman of Qatar Navigation (Milaha), witnessed the signing of an agreement between Mwani Qatar and Milaha to establish a new company, QTerminals, to manage Hamad Port.
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s per the agreement, the new company will be co-owned by Mwani Qatar; 51%, and Milaha; 49%, and will manage operations at Hamad Port as an independent company with its own board of directors, executives and staff. The deal was signed by Mwani Qatar CEO Captain Abdulla Al Khanji and Milaha President & CEO Abdulrahman Essa Al-Mannai. Commenting on the occasion, Minister Al Sulaiti said; “This strategic partnership reaps the benefits of several years of strong collaboration and ties between Mwani Qatar and Milaha, which have brought about this common plan for managing Hamad Port, one of the country’s vital megaprojects and which will serve as Qatar’s gateway to world trade.” He noted that the agreement itself was an accomplishment that further encourages the private sector to be part of strategic partnerships in developmental projects, which in economic terms
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On completion, Hamad Port will cover a site of around 20km² and will be able to handle a combined annual capacity in excess of six million containers per year through its three container terminals. would reflect positively on the nation and citizens, economically speaking. The Minister also said the Mwani Qatar-Milaha partnership represented a role model for the Qatari private sector to contribute to transportation projects, going beyond prevalent partnerships in building and construction, and ushering in a new era of real operational processes that will help enrich the private sector’s investment philosophy.
And this, he added, would contribute to localizing applied expertise and technology. The project reflects the vision of HH the Emir Sheikh Tamim bin Hamad Al-Thani on the importance of supporting the private sector in becoming a constituent element in the national economy, he explained. “We are confident the new company, established collaboratively by two of Qatar’s leading corporations, will contribute to leveraging the country’s competitiveness among world economies,” he added. The Minister also stated that Hamad Port would be contributing to increasing Qatar’s imports, exports and international maritime trade and would stimulate growth and economic diversification across the region. With that in place, he noted, Qatar would be positioned to become a regional commercial hub and would be well on the road to achieving the objectives of the Qatar National Vision 2030.
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terminal operators - port hamad
“As Singapore consolidates its container port activities in Tuas from the next decade, it is imperative for PSA to become even mor
For his part, Sheikh Al-Thani said; “Our partnership with Mwani Qatar is a continuation of our longstanding relationship, which will continue to work toward achieving Qatar’s vision of becoming a global trade and logistics hub.” “Hamad Port is one the world’s largest port development projects. It will herald a new era of uniqueness and pioneering in the area of commercial port development in Qatar and the wider region,” he added. He went on to say that Hamad Port would be contributing to supporting the country’s economic diversification program, and would play a key role in pushing forward sustainable and comprehensive development in Qatar and the region. As Hamad Port becomes fully operational, Doha Port prepares to wind down. All container ships will go to the new QAR27 billion ($7.5bln) port in Umm Al-Houl, near Mesaieed. The old port (Doha Port) near the Museum of Islamic Art will be closed to all commercial ships. It will soon start undergoing a QAR2 billion ($549mln) overhaul to redevelop it as a destination for cruise ships, Jassim Seif Ahmed al-Sulaiti, minister of transport and communications for Qatar revealed, according to a report by Gulf Times. Nevertheless, before it closes to all vessels, the Doha Port will continue accepting cruise ships until the end of March, the Ministry of Transport
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and Communications (MOTC) and the Qatar Ports Management Company (Mwani) said today. While Hamad Port soft-launched in December 2014 with its first commercial shipment, it received its first ship last July – the heavy load carrier Zhen Hua 10, which carried a cargo of 12 cranes to be used to unload goods from docked vessels. Since then, Hamad Port has been receiving cars and livestock as it steadily increases operations ahead of its full launch of phase 1 at the end of this week. Before the construction of Hamad Port, large container ship had to dock first in the UAE and transfer cargo to smaller ships to travel directly to Qatar. The immense size of the new port has relieved this as it is now able to receive large shipments directly to Qatar. The port is expected to be fully up and running in 2020, which would put it 10 years ahead of schedule. Before the construction of Hamad Port, large container ship had to dock first in the UAE and transfer cargo to smaller ships to travel directly to Qatar. The immense size of the new port has relieved this as it is now able to receive large shipments directly to Qatar. On completion, Hamad Port will cover a site of around 20km² and will be able to handle a combined annual capacity in excess of six million containers per year through its three container terminals. The new port is seen as a boon to the construction sector which sees the port’s size and facilities as a quicker and easier method to import raw materials to Qatar, vital to the completion of the country’s many ongoing infrastructure projects. l
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terminal operators - sohar
Safety comes first at SOHAR Port and Freezone OIEC hosts Oman Traffic Safety 2016 in which the HSSE Team from SOHAR Port and Freezone actively participated. Three-day event demonstrated and encouraged corporate safety culture.
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rganised by Oman Expo, in association with the Royal Oman Police, the Oman Traffic Safety 2016 aims to redouble efforts to curb the rise of serious road accidents on the Sultanateís highways. Hosted at Oman International Exhibition Centre (OIEC), from 18-20 October 2016, the three-day event aims to spread awareness about traffic rules and road safety to help prevent accidents. Suwaid Al Shamaisi, Executive Manager Corporate Affairs at SOHAR Port and Freezone, whose HSSE Team are active participants in this yearís event, said: ìSOHAR has developed many excellent safety initiatives in recent years, including our own Annual Safety Week. We design our programmes not only to improve road safety within our own Port and Freezone areas, but also to actively encourage participants to take what they have learned back outside our gates and onto Omanís public highways.î Following Royal Directives from His Majesty Sultan Qaboos in 2010, that underscored the importance of road safety, the event showcases the latest traffic safety products to policy makers and stakeholders. By improving understanding among all stakeholders on how technology and best-practice can assist in accident reduction, the event aims to encourage safety culture within companies in Oman, and raise awareness among the general public on safety-related rules of the road that will lead to a safer driving environment. Jamal T. Aziz, SOHAR Freezone CEO, spoke of his full support for traffic safety initiatives in the Sultanate: ìAs one of the Sultanateís main logistical hubs, we will do whatever it takes at SOHAR to help create more understanding about road safety, more awareness of risks, and more education on safer driving practices. Our recent courses for school bus drivers visiting the Port was a great example of what that can look like in practice, and we will continue to develop more activities like this at every possible opportunity. l
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Industrial Port coming up in the Suez Construction is set to get underway on a Russian industrial port in the Suez Canal following a deal reportedly agreed with Egypt, according to media in both countries.
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ussia’s Trade Minister Denis Manturoc has announced that Egyptian President Abdel Fattah al-Sisi had allocated Moscow an 80 hectare area in Port Said that could later be expanded to an industrial zone of some 2,000 hectares (20 sq. km). Construction is set to start next year. Moscow initially agreed with Cairo on the construction of a Russian industrial zone in Egypt in 2014. However, negotiations on a deal ground to a halt after a Russian airliner was downed over the Sinai in October 2015 in a suspected terrorist attack.
Russia has said that the new industrial zone will provide 77,000 jobs, with $4.6 billion expected to be invested in the construction of the area by 2035. Russian firms are set to design and construct the facility and will be allocated tax breaks. Cairo is currently in the midst of modernising the Suez Canal with plans to develop additional Chinese, and Italian industrial parks previously on the table. Two years ago Egypt announced the modernization of the Suez Canal, which is one of the world’s major transportation routes. Originally, it was planned to complete the work in three years, but
Two years ago Egypt announced the modernization of the Suez Canal, which is one of the world’s major transportation routes. Originally, it was planned to complete the work in three years, but later it was reduced to 12 months. terminaloperator.com
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terminal operators - suez
It took almost 20 years to build the Suez Canal which has played a key role in international trade connecting the Red Sea and the Mediterranean for many decades.
According to the German newspaper Deutsche Wirtschafts Nachrichten (DWN), over 100 ships had chosen the second route between October 2015 and December 2015, although the way is about 6,500 kilometers longer than the one which passes through the Suez Canal. later it was reduced to 12 months. The new Suez Canal will include a vast range of services, as well as several industrial parks, including Russian, Chinese and Italian. The Suez Canal is being used by fewer ships than usual as the trade route has become more expensive than the roundabout way via the Cape of Good Hope. The region may face a new wave of destabilization as Egypt has invested billions in the expansion of the channel and is now facing serious losses, a German newspaper wrote.
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It took almost 20 years to build the Suez Canal which has played a key role in international trade connecting the Red Sea and the Mediterranean for many decades. As the ships in the past century have become bigger and the trade volumes have increased, the Egyptian government has decided to expand the channel due to its importance. The Egyptian authorities have expected the traffic to grow from 50 ships a day to 97, but
low oil prices have led to a decrease in traffic. Fewer and fewer ships go through the Suez Canal, and now take the original route through the Cape of Good Hope at the southern tip of Africa instead, DWN wrote. According to the German newspaper Deutsche Wirtschafts Nachrichten (DWN), over 100 ships had chosen the second route between October 2015 and December 2015, although the way is about 6,500 kilometers longer than the one which passes through the Suez Canal. Low oil prices have affected the price of the marine diesel, which declined from $400 to $150 per ton. Taking into account the fact that drive-through costs in the Suez Canal reach about $350,000 per ship passage, the roundabout via the cape currently proves cheaper than the way through the Suez Canal. 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 - salalah
Salalah Volume Surges on Transshipment and General Cargo Growth Container traffic up by 29% and general cargo volume. increased by 10% compared with the same period in 2015.Prime location makes port an ideal transshipment hub on competitive Asia/Europe trade lane.
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ontainer throughput at the Port of Salalah, part of the APM Terminals Global Terminal Network, reached 1.584 million TEU in the first half of 2016, representing a 29% increase over volume handled during the same period the year prior. The completion of a new deep-water General Cargo and Liquid Bulk Terminal in December 2015 has enabled significant growth, with the facility handling approximately one million metric tons monthly. Some of the container volume growth is the result of Salalah’s proximity to the open sea, and its ability to accommodate the largest of the Ultra-Large Container Ships (ULCS) entering into the Asia/ Europe trade lanes. Approximately 90% of Salalah’s container traffic is transshipment cargo movement. “The largest vessels regularly calling Salalah are about 16,000 TEU capacity vessels which are normally deployed in the Asia/Europe trade lane,
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for which port calls are decided based upon the sustained ability to handle ULCS performance levels” noted Port of Salalah CEO, David Gledhill. At present, the largest vessel calling Salalah is the MSC Zoe, which is also biggest container ship currently in service worldwide, with a stated capacity of 19,224 TEUs. “We are seeing a trend of deployment of these large vessels on major trade lanes and we expect to see more of these calls in the near future”, said Mr. Gledhill. Approximately 30 container liner services call Salalah on a monthly basis, linking the Arabian Sea facility to all major ports in Europe, the Mediterranean, the US East Coast, East Africa, the Indian Sub-continent, the Red Sea and Arabian Gulf. “With the shipping industry witnessing significant changes in terms of structure and alliances, we have seen enhanced connectivity to East Africa, Somalia and North Oman in 2016. We are actively engaged in discussions with the shipping lines who want to leverage the location
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terminal operators - salalah
of Salalah to increase penetration into regional markets like Yemen, countries around the Red Sea and Iran,” said Mr. Gledhill. The general cargo facility is currently handling 200,000 Metric Tons (MT) of limestone and approximately 550,000 MT of Gypsum monthly, among other cargoes. The new berths are used for discharging grain, loading bagged cement, berthing of the multi-national navies engaged in anti-piracy operation, and for cruise vessels. Salalah, on the Arabian Sea, is one of the largest container ports in the Middle East Region with a 2015 volume of 2.56 million TEUs. The facility also handled 7.9 million tons of bulk cargo in 2015. “We act as the container relay hub for East Africa, the Red Sea, Arabian Gulf and the Indian Sub-continent. Bulk cargo, Limestone and Gypsum are predominantly destined for the Indian Sub-continent. Cement is exported to the Red Sea and East Africa, Wheat is imported from Australia and liquid exports are predominantly to Europe and Asia,” added Mr. Gledhill. INFRASTRUCTURE UPGRADE An initiative by Oman’s Tanfeedh, a national programme for enhancing economic diversification, looks to carry out significant upgrade of Salalah Port’s infrastructure, said a report. The initiative is aimed at boosting the hub’s container capacity and facilitating the flow of bulk commodities and liquids through the port, added the Oman Daily Observer report. Tanfeedh’s proposal moots the expansion of Salalah Port’s Container Terminal through investments in new berths designed to ultimately lift the port’s container handling capacity from the present 5 million TEU (twenty-feet equivalent units) to 7.5 million TEU, entailing a 50 per cent increase.
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“We act as the container relay hub for East Africa, the Red Sea, Arabian Gulf and the Indian Sub-continent. Bulk cargo, Limestone and Gypsum are predominantly destined for the Indian Subcontinent. Cement is exported to the Red Sea and East Africa, Wheat is imported from Australia and liquid exports are predominantly to Europe and Asia,” says Mr. Gledhill
The goal is to “consolidate Salalah’s position as one of the most important transshipment ports in the region”, according to Tanfeedh. The proposal is part of a raft of initiatives presented by Tanfeedh to help leverage the sultanate’s multimodal transportation infrastructure to fuel the growth of logisticsbased economic activities in the country, it said.
The Logistics Strategy 2040 (SOLS) rolled out by the Omani government last year aims to position the sultanate as a logistics hub with the potential to attract additional investment of around RO4.2 billion ($10.9 billion) by 2020, as well as enhance the contribution of logistics activities to the national gross domestic product. l
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Challenging Times for Global Terminal Operators Global container terminal operators are changing gear – and strategies – as the nature of their market environment changes markedly due to slowing growth, bigger ships and larger liner alliances, according to the latest container insight report from Drewry Maritime Research. 44
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rewry’s latest ‘Global Container Terminal Operators Annual Review’ report shows that container terminal operators are rapidly changing their strategies in the face of a ‘perfect storm’ creating pressure on profit margins and rates of return due to a significant softening of demand growth. Bigger ships are also creating higher opex and capex costs. Then there are increased business risks from larger liner alliances while loss-making carriers are pressuring for lower terminal handling charges. In 2016, 24 companies qualify as global/international terminal operators in the Drewry analyses. The nature of the list is already changing due to major M&A activity. In particular Cosco and China Shipping have merged, CMA CGM has acquired APL and APM Terminals has bought Grup TCB – all moves that at least in part can be seen as terminal operators mirroring the coming together of shipping lines in alliances. These global/international terminal operators are sub-divided into three categories: Stevedores: Companies that have container terminal operations as their core business and invest in container terminals for expansion and geographical diversification. Note that the term ‘stevedore’ is used here in a generic sense (that is, as an overall operator of a terminal and not just a labour supplier or crane operator).
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terminal operators
Having a shipping line as a shareholder can be seen as a way of trying to tie in alliance volumes, although the choice of terminal by an alliance is never down to a single carrier’s wishes. Carriers: Companies with container shipping as their core business, but have a network of terminals to serve this liner shipping activity. Hybrids: Companies that have container shipping as their main activity, but have a separate business unit for terminals. One clear strategic trend is the slowing of activity in greenfield terminal projects by the global/international terminal operators. The total number of active projects has fallen by almost half to 39 compared with 64 back in 2006 (a period of intense and peak demand growth in the industry). As significantly, the number of projects being developed by the carrier category of terminal operator has fallen to near zero, as
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carriers have re-trenched and become more and more cash-strapped. Carriers with terminal portfolios are clearly shying away from greenfield investments but are very active in terms of M&A and joint ventures. Some have been selling assets to raise cash but others, notably China Shipping and Cosco, have been buying terminal stakes. Another potentially significant trend is “stevedore” terminal operators making joint venture deals with shipping lines. The establishment of the three mega liner alliances in 2017 will increase business risk for terminals run by operators not affiliated with carriers, especially those focused on transhipment, and terminal operators are seeking to mitigate this.
Having a shipping line as a shareholder can be seen as a way of trying to tie in alliance volumes, although the choice of terminal by an alliance is never down to a single carrier’s wishes. The hope must be that the shipping lines in question have sufficient influence in their alliance to ensure that the joint venture terminal is the one the alliance uses. In the case of Singapore, PSA has done deals with the two leading members of the Ocean Alliance and this presents a clear challenge to Port Klang, where the existing O3 Alliance carries out much of its hubbing in the region. However, Hutchison faces a challenge to its market share from the two new terminals in Maasvlakte II and so doing a deal with Cosco at Euromax has clear logic, especially now that “Cosco” means “Cosco-China Shipping” – two players for the price of one. However, one of the two new terminals, DP World’s Rotterdam World Gateway, has as a shareholder CMA CGM (now including APL’s stake in the same terminal), and also a member of the Ocean Alliance. The Drewry View: Global/international terminal operators have understandably taken their foot off the pedal when it comes to greenfield projects, carriers especially so. In its place, the key players are looking for growth, risk mitigation and opportunities through M&A activity. This is leading to more joint ventures, co-shareholdings, and more complex inter-linking of terminal ownership. l
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First Bonded & Re-Export Zone within Jeddah Islamic Port TUSDEER is Saudi Arabia’s first Bonded & Re-Export zone in Jeddah Islamic Port (JIP) since 1999 under a build, operate, transfer (BOT) agreement with the Saudi Ports Authority, Tusdeer today sprawls approximately 1 million sq metres dotted with warehouses and yards that handle every kind of logistics activity.
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e were given the task of introducing the concept of a BRZ to the regulatory authorities, while laying out its benefits to the Saudi economy. In the 16 years of Tusdeer’s existence, it has already proved to be a valuable partner and logistics solutions provider to some of the Kingdom’s industry leaders such as Abdul Latif Jameel.” “We provide world class facilities of Warehouses & Open yard space that are rented out to companies which would like to save on demurrage and detention costs. Cargo can be held for up to three years in the warehouses without attracting demurrage.” Tusdeer’s strategic location in a port that handles 70% of the national traffic and is the largest port in the region, allows it to act as the distribution hub of its clients’ choice to any point in the Middle East and European Union, as well as African markets. Operational service excellences Operations Service Efficiency Opening Covered yards of 13K Sqm specialized for LCL Customs inspections services which
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Overcome operational Bottlenecks (Containers, Break-Bulk, Vehicles). Providing services for part, or all of Clients’ Supply Chain Management functions • Warehouse Management oo Inventory Management • Handling Services oo Trucking, Transportation in port & Cross-Docking • Providing Storage solutions
increase Operations Efficiency Optimization. Re-Engineering accurate Operations Processes, Policies and Procedures according to workload (Up/Down) due to economic demand. Minimizing damaged cargos to reach 0% during handling. Employ high caliber & experienced staff till Midnight to cope with beak hours in port. Scaled & Customized WHM Services for Specific Clients. Create a Supporting unit for clients who require clearance services. Increase safety by monitoring specialized WHs to store DG cargos.
Continuous quality enhancement of operational services Operation Systems Technology • DMS (Documentation Management System) oo Ability to create Storage requests / Delivery orders / gate passes & integrate it with customs system. oo Decrease time of exciting services by sending Operation services directly to vendor system. oo Decrease processing time by
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batch-upload of containers & vehicles data to save clients from any delay. oo Ability to update information & reflect them in customs system to decrease time of releasing cargos. CTS (Container Tracking System) oo Ability to track containers operations’ services (Importing, stripping, empty return) from matter of transparency with clients / consignees. oo Managing & verifying containers sealing numbers to match seal in bill of lading with actual through enrolling data in CTS as reference. oo Handling all kind of container’s transactions to be traced very well and provide accurate storage report for invoicing matters without any human interactions. VTS (Vehicle Tracking System) oo Ability to track vehicles operations’ services from matter of transparency with clients / consignees, with applying fixed machines of RFID (Radio Frequency Identification Technology) to Vehicle’s Chassis numbers.
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Providing clients accurate reports by (Chassis, client’s name, yard location, Status “import, export, delivery, transit, and/or shifting). oo Generating accurate storage reports which show (Date, Location, Vehicle number).
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CIY / WHMS (Customs inspection yard & Warehouse management system) oo Protecting Warehouses with smart CCTV. oo Applying RFID with all LCL pallets to track shipments. oo Generating reports which show (date, quantity, weight, DO#, storage period &
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transactions “delivery, inspection, location before / after inspection, loading). Online Shipments Tracking through TUSDEER website (www. TUSDEER.com) oo Covering all bonded zone with WIFI for matter of increasing efficiency of real time updates in database. Central Archiving System. oo Create Unit for providing a reliable traceability system, acting as a one-stop reference for historical information about all Tusdeer Operations. oo Develop a full archiving process which will help clients to get any official document they may need. Disaster Recovery oo Develop full solution of faulttolerance for not delaying processing of clients request in case of any out of control. oo Security level access to ensure no any abusing of clients requests & information. CMS (Complaint management system) oo Develop full online solution with SLA to handle all clients’ requests & complaints which increase customer satisfaction from matter of providing them services. o Integrate all TUSDEER systems to ensure efficiency, accuracy & reliability of service provided to clients even due to economic demands. l
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mega vessels
hapag-LLOYD, uasc merger gets eu approval The European Commission has given its approval to German shipping major Hapag-Lloyd’s proposed acquisition of Dubai-based shipping company United Arab Shipping Company (UASC).
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he clearance is conditional on the withdrawal of UASC from a consortium on the trade routes between Northern Europe and North America, where the merged entity “would have faced insufficient competitive constraint,” the European Commission said. “European companies rely on container liner shipping services for their transatlantic shipments. It’s very important that the markets remain open. The commitments offered by
“European companies rely on container liner shipping services for their transatlantic shipments. It’s very important that the markets remain open. The commitments offered by Hapag-Lloyd ensure that the takeover will not lead to price increases on the routes between Northern Europe and North America,” Commissioner Margrethe Vestager, in charge of competition policy Hapag-Lloyd ensure that the takeover will not lead to price increases on the routes between Northern Europe and North America,” Commissioner Margrethe Vestager, in charge of competition policy, said. With a combined capacity of 1,478,236 TEUs, the merger will make the new entity the fifth-largest ocean carrier, well ahead of Evergreen, at 991,470 TEUs, and marginally behind China Cosco Shipping, which has a capacity of 1,572,335 TEUs. The Commission examined the effects of the merger on competition in the market for container liner shipping on thirteen trade routes connecting Europe with the Americas, the Middle East, the Indian Subcontinent, the Far East, Australia, New Zealand and West Africa, as well as Northern Europe with the Mediterranean, and found that the merger, as initially notified, would have created links on the Northern Europe – North America trade routes between the consortia and alliances in which Hapag-Lloyd is a member and the NEU1 (ex-Pendulum) consortium, in which UASC is a member. In order to address the Commission’s competition concerns, Hapag-Lloyd said that it would terminate the participation of UASC in the NEU1 consortium, which would entirely remove the additional link between Hapag-Lloyd’s and UASC’s consortia, that the transaction would have created on the Northern Europe – North America trade routes. Although UASC will continue to operate as part of the NEU1 consortium during the notice period to guarantee an orderly exit, a monitoring trustee will ensure that no anticompetitive information is shared between the NEU1 consortium and the merged entity during that notice period. The EC also concluded that the acquisition by Hapag-Lloyd of UASC
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presented “no competition concerns” on other shipping trades, nor had an impact on container terminals, inland transport, freight forwarding or harbour towage – “in particular because several other service providers are active in these markets”. The deal will see UASC’s shareholders – the Dubai-headquartered firm is 51% opened by Qatar Holdings and 49% by the Public Investment Fund of Saudi Araba – take 14.4% and 10.1% ownership of Hapag-Lloyd (see chart below). Hapag-Lloyd added that the company has “approvals of three more authorities pending now. For instance China, Japan, South Korea also approved already besides some others.” Earlier, Hapag-Lloyd chief executive Rolf Habben Jansen said the German carrier wanted to close the merger deal before the end of the year and then “move ahead very swiftly”, with a six-month target for the integration of the UASC business. He explained that to be competitive, Hapag-Lloyd would have needed “significant investment” in ULCVs, but with UASC’s fleet of six 18,000teu and eleven 15,000-teu ships, there was now no need. Fleet expenditures had “basically been pulled forward”, he said. He estimated that synergy savings from merging the container lines would be $435m a year from 2019. The majority will come from network optimisation and reduced overheads, including the consolidation of corporate and regional headquarters, the rationalisation of country organisations and overhead reductions such as operations, marketing and audit. At the end of September, HapagLloyd had 9,397 shore-based and seafaring employees. At the time of its takeover of CSAV’s container business, the combined head count was over 11,000. l
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A.P. Møller - Mærsk A/S: Maersk Line to acquire Hamburg Süd Maersk Line to acquire Hamburg Süd
Maersk Line and the Oetker Group have reached an agreement for Maersk Line to acquire Hamburg Süd, the German container shipping line. The acquisition is subject to final agreement and regulatory approvals.
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amburg Süd is the world’s seventh largest container shipping line and a leader in the North - South trades. The company operates 130 container vessels with a container capacity of 625,000 TEU (twenty-foot equivalent). It has 5,960 employees in more than 250 offices across the world and market its services through the Hamburg Süd, CCNI (based in Chile) and Aliança (based in Brazil) brands. In 2015, Hamburg Süd had a turnover of USD 6,726 million of which USD 6,261 million stems from its container line activities. “Today is a new milestone in Maersk Line’s history. I am very pleased that we have reached an agreement with the Oetker Group to acquire Hamburg Süd. Hamburg Süd is a very well-run and highly respected company with strong brands, dedicated employees and loyal customers. Hamburg
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Süd complements Maersk Line and together we can offer our customers the best of two worlds, first of all in the North South trades,” says Søren Skou, CEO of Maersk Line and the Maersk Group. “We are proud to join the global market leader Maersk Line. While gaining access to a superior network and systems we will continue the Hamburg Süd brand and business model offering personalized solutions to our shippers and consignees. By joining forces both Maersk and Hamburg Süd will strengthen their product portfolio and cost position to the benefit of their customers,” says Dr. Ottmar Gast, Chairman of the Executive Board of the Hamburg Süd Group. “Giving up our engagement in shipping after an 80 yearlong ownership in Hamburg Süd was not an easy decision for my family. We are very confident, though, to have chosen the
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best of all possible partners. Maersk will preserve and grow Hamburg Süd and what the brand and the whole organization and a highly dedicated workforce stand for: reliable and high quality logistical services to our customers,” says Dr. August Oetker, Chairman of the Advisory Board of Dr. August Oetker KG, the management holding company of the Oetker Group. On 22 September 2016, Maersk Line announced that it would grow market share organically and through acquisitions. “The acquisition of Hamburg Süd is in line with our growth strategy and will increase the volumes of both Maersk Line and APM Terminals,” says Søren Skou. Hamburg Süd and Aliança will continue as separate brands and continue to serve customers through their local offices. “Hamburg Süd and Aliança have competitive and attractive customer value propositions, which we want to preserve and protect. We wish to maintain the personal touch and
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“Our combined network will provide exciting opportunities to develop new products and exploit operational synergies. Hamburg Süd and Maersk Line customers will benefit from more choice and better products,” engagement they offer their customers. In short, Hamburg Süd and Aliança customers will also be Hamburg Süd and Aliança customers in the future,” says Søren Skou. In the combined network, Hamburg Süd and Maersk Line’s customers will have access to the dedicated end-to-end services provided by Hamburg Süd in the North - South trades as well as the flexibility and reach provided in Maersk Line’s global network. Furthermore, the combined network will enable Maersk Line to develop new products with more direct port calls and shorter transit times. “Our combined network will provide exciting opportunities to develop new products and exploit operational synergies. Hamburg Süd and Maersk Line customers will benefit from more choice and better products,” concludes Søren Skou. The acquisition is subject to a satisfactory due diligence, final agreement and subject to
regulatory approval in amongst others China, Korea, Australia, Brazil, the United States and the EU. Maersk Line will work closely with the authorities. Maersk Line expects the regulatory process to last until the end of 2017. Until then, Hamburg Süd and Maersk Line will continue business as usual. With the acquisition, Maersk Line will have container capacity of around 3.8 million TEU (3.1 million TEU) and an 18.6% (15.7%) global capacity share. The combined fleet will consist of 741 container vessels with an average age of 8.7 years (9.2 years). The agreement with Hamburg Süd has no financial impact in 2016. Maersk Line expects to communicate further details following the approval of the sales and purchase agreement expected early in the second quarter of 2017. Maersk Line expects to close the transaction end 2017. l
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MegaVessels, Mega Alliances and Port Performance by Dr Jonathan Beard, Head of Transportation & Logistics, Arcadis
Over recent years, the often uneasy relationship between lines and container terminal operators has been further strained by the introduction of ever larger ships. One side complains that the economies of scale promised by these ships are being lost because of terminal operators not making the necessary investments to deliver these benefits; the other side complains that the investment case is simply not there. In the midst of this, the aviation sector and the introduction of the A380 ‘super-jumbo’ has been cited as an enlightening comparison and example of what might be achieved.
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hipping lines are ordering seemingly ever larger vessels with the intention of reducing unit costs through economies of scale (and newer more efficient engines). As usual, Maersk has been the industry leader, its EEE class vessel at TEU 18,000 pushed the envelope further. With an almost herd like mentality, other lines followed suit and the EEE was rapidly overhauled by new vessels of TEU 19,000. Maersk has itself now trailed the idea of 20,000 TEU vessels having only 24 months earlier indicated that TEU 18,000 really was the upper limit. From a terminal operator perspective the goal posts appear to keep moving. Only a few years ago, there was a need to invest in quay cranes, a piece of equipment that should have an asset life of 20-25 years, which could reach 21 boxes across. Barely a third into their asset life, they are becoming redundant for the largest vessels, which now require cranes with an outreach of 23 across. Will this change again in 4-5 years? In addition, there are a range of other investments required to accommodate the largest vessels, especially at major gateway ports that must be able to evacuate large, lumpy volumes of boxes as efficiently as possible.
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Delivering excellent quayside productivity is a noteworthy achievement, but counts for little if the road network immediately outside the terminal gate has inadequate capacity - a gateway port is only as good as its weakest link. Having the right infrastructure is a pre-requisite to accommodating these behemoths, but on its own, does not guarantee success. Terminal operators must also deliver the necessary productivity and service KPIs. With the introduction of the EEE, Maersk threw down the gauntlet of 6,000 moves per 24 hours during a port call. However, very few ports are close to delivering this Key Performance Indicator (KPI).
It requires 250 moves per berth hour over three shifts for 24 hours. An 18,000-TEU ship would require 8 cranes, each working at 31-32 moves per hour, generating berth productivity of 250 moves per hour (MPH) to reach this KPI. However, whilst ship capacity and specifically ship beam has grown dramatically, vessel length has not. An 18,000-TEU vessel is only 25 per cent longer than a 7,500-TEU vessel yet has 140 per cent more capacity. Hence, cranes have to reach further, increasing the travelling distances per box by around 40% and thus impairing crane MPH. Moreover, without a concomitant increase in ship length, it is difficult to deploy more cranes, since the crane legs
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mega vessels
There are some crane designs on the drawing board to service mega vessels but the return on investment is far from clear. It’s all well and good deploying a slew of high spec cranes for a mega vessel call, but if those assets remain underutilized for the remainder of the week, terminal operators’ financial performance will head south.
dictate a minimum spacing of one bay between cranes. There are some crane designs on the drawing board to alleviate this constraint, but the return on investment is far from clear. It’s all well and good deploying a slew of high spec cranes for a mega vessel call, but if those assets remain underutilized for the remainder of the week, terminal operators’ financial performance will head south. Moreover, the holy grail of 6,000 moves over 24 hours, also pre-supposes there is enough cargo for such a call. This is key piece of the economies of scale jigsaw – and to date, it’s missing. Nowhere is this more evident, than in the rash of new mega alliances. Carriers have had to pool their cargo as they simply
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do not have enough boxes on their own account to fill up the mega vessels they keep ordering. This has been a key factor driving the formation of the Ocean Three, 2M and other mega-alliances. For major terminal operators, the lack of cargo also generates problems. Mega vessels that do not deliver high box exchanges per call, are detrimental to terminal productivity (and profitability). Figure 1.1 illustrates this challenge for vessels longer than 300m calling at 5 (undisclosed) terminals in China and SE Asia. Whilst the average length of vessels in this category has increased, the average number of moves per call actually flat-lined or even declined 2006-2011. The good news is that as the market recovered from the collapse in trade induced by the global financial crisis, and volumes picked up, so have the moves per call. It is hoped that this upward trend continues. If the carriers are now delivering larger volumes of cargo per call, the onus is on the terminal operators to deliver the necessary performance needed to turn these larger vessels around quickly. Information from the Journal of Commerce’s productivity database indicates improvements between 2012 and 2013 across most vessel sizes in terms of moves per ship hour at berth. However, during the latter half of 2014 our data from select terminals indicates that the megavessels and mega-alliances were struggling to obtain the necessary increases in berth productivity. Whilst the mega-alliances offer the promise of greater cargo volumes, they also bring more complexity to
Figure 1.1
Economies of Scale Require High Moves per Call
Moves per Call for Vessels LOA 300m+
Notes: Data is a weighted average of 5 terminals in China and SE Asia Source: ICF; Arcadis Figure 1.2
Inter-terminal Transfers (ITTs) Become More Complex with Mega Alliances
Notes: Data is a weighted average of 5 terminals in China and SE Asia Source: ICF; Arcadis
terminal operations. For example, interterminal transfers (ITTs) are becoming more complicated and hence posing additional operational challenges especially at those ports where there are several terminal operators and / or fragmented facilities (Figure 1.2). Facilitating ITTs efficiently is becoming increasingly difficult for a number of ports, notably Korea’s Busan (even with a very pro-active Port Authority) and especially land-constrained Hong Kong (with several operators and no port authority). Some industry stakeholders, most notably Mearsk’s CEO Søren Skou, have looked longingly at the aviation sector where the A380 introduction was accommodated by upgrades at major airports to ensure that the larger aircraft could be processed efficiently. However, the comparison serves more to highlight how the airlines, aircraft manufacturers and airports work more cooperatively than the liners, port authorities
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mega vessels
There is not enough space in this article to highlight the many differences between the aviation and maritime industries, save to say that there are several practices that the liner industry could adopt to its commercial benefit, not least proper yield management tools for sales’ staff – now finally being introduced by the more advanced lines.
and terminal operators; not least the strenuous efforts by Airbus to fit within a specific size envelope and hence minimize the plane’s impact. The plane’s design was only finalized after it was clear that the key airports could handle it without prohibitive investment or redesigns. This is in stark contrast to the maritime sector. Tellingly, the A380 was not superseded a few years’ later by yet another bigger aircraft demanding yet more changes in ground handling equipment, operations and airport infrastructure. Not least, as it has been a generally unsuccessful aircraft, garnering only Emirates as a large volume customer. Perhaps a salutary message for the maritime industry.
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There is not space in this article to highlight the many differences between the aviation and maritime industries, save to say that there are several practices that the liner industry could adopt to its commercial benefit, not least proper yield management tools for sales’ staff – now finally being introduced by the more advanced lines. Meanwhile, terminal operators continue to deliver healthy EBITDA margins, in stark contrast to their customers - Figure 1.3. Might the introduction of megavessels and mega-alliances deliver greater bargaining power to the carries and shift the financial balance in their favour? On past evidence this seems unlikely and the stability of the liner sector looks far from assured. The shale oil ‘buffer’ should help dampen any large rises in bunker price, nonetheless the fortunes of the industry will, as ever, be driven by supply and demand, and a failure of the market - both in terms of ship yards and shipping lines - to clear, thus giving little incentive to those players trying to inculcate commercial discipline. In the meantime, mega vessels and mega alliances look an unlikely workaround to save the industry. l
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mega vessels
Hanjin aftershocks may redefine container shipping Xeneta’s global community of shippers is reeling from the impact of the demise of Hanjin Shipping, the world’s seventh largest containership operator. Xeneta crowd-sources shipping rate data from more than 600 major international businesses, many of whom have now been hit by stranded inventory, rising prices and – in a shock development for a sector struggling with structural overcapacity – claims of under-capacity from the remaining liners.
O
slo-based Xeneta is a global benchmarking and market intelligence platform for containerized ocean freight. Its community of shippers provide it with up-to-date information across over 17 million contracted rates, covering more than 60,000 port-to-port pairings. This gives it, and its customers looking to negotiate the best rates, an unrivalled realtime snapshot of the market. That snapshot isn’t pleasant viewing for shippers right now. “The Hanjin saga has the potential to redefine the container shipping landscape,” comments Xeneta CEO Patrik Berglund. “For an industry that has struggled with collapsing rates, severe overcapacity (8.1% at the beginning of 2016) and devastated profit margins – with even Maersk down 90% year on year for
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Q2 - this marks an opportunity to finally regain the upper hand at the negotiating table. “Hanjin’s failure resulted in an immediate capacity reduction of up to 8% in transpacific and Asian-European routes and this gives competitors an obvious fillip. We’ve seen 2M (MSC and Maersk) moving to launch a new transpacific service, while the feedback we’ve received from our community details rising rates, stretched capacity, claims of broken contracts – when agreed at low prices – and a need to go to the spot market, where quotes of between one and three months are not being contracted. “In many ways the market has been turned on its head. Now it’s the liners flexing their muscles again. The question is, how long will this last?”
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mega vessels
Berglund says that for many of the firm’s community it’s the stranded inventory that’s the number one priority, with an estimated USD 14.5 billion of goods marooned on vessels worldwide, belonging to some 8,300 different companies. Many of Xeneta’s customers have “hundreds of containers” stranded at sea. That’s the immediate concern, but, as he explains, the long-term is also causing consternation: “Short term rates were already rising on the main Far East Asian to North European port route, the world’s most important trade channel, since hitting lows in March. Then the market average price for a 40’ container stood at USD 552, in late August it
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Berglund says that for many of the firm’s community it’s the stranded inventory that’s the number one priority, with an estimated USD 14.5 billion of goods marooned on vessels worldwide, belonging to some 8,300 different companies. Many of Xeneta’s customers have “hundreds of containers” stranded at sea. climbed to USD 1172 and now its USD 1834. Transpacific routes have climbed from USD 839 in March to USD 1887 now. “As the year comes to an end the tendering/ bidding season starts for many European shippers. This will be a wake up call for the large-volume shippers who have maybe become accustomed to basking in long-term contracts at low rates. In a changed market the carriers won’t be as accommodating. Last term’s prices will suddenly be a distant memory.” The container segment has been stuck on a rollercoaster for years, Xeneta argues, and this latest corkscrew will do little to ease the sense of fluctuating rates and jolts in supply and demand. “Stability is sorely lacking,” concludes
Berglund, “and Hanjin could be the tip of the iceberg, as lenders tire of propping up players that have been limping along in this difficult market for too long. For the time being the carriers will enjoy exploiting the change of fortunes and their overcapacity gives them the means to step in and fill Hanjin’s hole. But this isn’t the long-term fix the industry needs. “In this uncertain environment prices will continue fluctuating. That means shippers, freight forwarders and carriers need the latest data, from advanced software platforms like ours, to stay on top of developments and get the right price for their cargoes. “There’s much more to come in this dynamic segment. I’d advise everyone to stay tuned.” l
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Container Handling & Crane Technology
Container Handling & Crane Technology
KONECRANES BAGS MAJOR ORDER IN US The agreement between Konecranes and the VPA covers two projects. The first is redevelopment of container handling operations at Norfolk International Terminals, which will receive 60 ASCs, and the second is the expansion at Virginia International Gateway which will receive the remaining 26.
J
ust a week after announcing delivery of its 1000th rubber tyred gantry crane, Finnish based port handling equipment manufacturer Konecranes has finalised a $217 million deal with the Virginia Port Authority (VPA) to build and deliver 86 Automated Stacking Cranes (ASCs) that will be at the centre of the port’s expansion projects at its freight container facilities, Virginia International Gateway (VIG) and Norfolk International Terminals (NIT). Virginia Governor Terry McAuliffe commented: “We secured the financing for these projects this summer, the planning and preliminary
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site-work has started and now we have an agreement in place with one of the world’s leading manufacturers of specialised cranes to supply the hardware to move containers safely and efficiently across our two primary container terminals. “Once the construction is done and these cranes are in place and operational, our port will have the capacity to process an additional 1 million containers annually, have the channel depth to handle the biggest ships in the Atlantic trade and double-stack rail service offered by Norfolk Southern and CSX to some of the nation’s most important markets.” The agreement between Konecranes and the VPA covers two projects. The first is redevelopment of container handling operations at Norfolk International Terminals, which will receive 60 ASCs, and the second is the expansion at Virginia International Gateway which will receive the remaining 26. Delivery begins in 2018 and will continue in phases until 2020. According to Konecranes, with the value of the contracts
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Container Handling & Crane Technology
“Konecranes supplied the Port of Virginia’s current automated stacking crane system in 2007. The concept we developed with the Port of Virginia at the time, the ‘Virginia Concept’, has established itself as the benchmark around the world. Since 2007, every new automated stacking crane container terminal has used the Virginia Concept to a greater or lesser degree.”
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exceeding €200 million this contract is the largest deal ever won by the Hyvinkää headquartered builder, in its history. While Konecranes will be providing the cranes, the company will be partnering with Roanoke, Virginia-based TMEIC, which will provide the automation technology that drives the unit. Konecranes and TMEIC have had a long partnership that dates back to the construction of VIG and implementation of Automated Stacking Cranes there. Mika Mahlberg, Senior Vice President, Head of BU Port Cranes, Konecranes, commented: “Konecranes supplied the Port of Virginia’s current automated stacking crane system in 2007. The concept we developed with the Port of Virginia at the time, the ‘Virginia Concept’, has established itself as the benchmark around the world. Since 2007, every new automated stacking crane container terminal has used the Virginia Concept to a greater or lesser degree.” Both projects involve the establishment of new automated container handling
operations. Konecranes will supply the Automated Stacking Cranes (ASCs) based on Automated Rail Mounted Gantry cranes (ARMGs). The 60 ASCs to NIT will stack containers 1-over-5, 9 containers wide. The 26 to VIG will stack containers 1-over-5, 8 containers wide. Globally, Konecranes has delivered 174 ASCs of the same type in 11 projects. By 2020, the port hopes to have expanded the container handling capacity at VIG by 600,000 units and the capacity at NIT by 400,000 units; the combined cost of the projects being $670 million. l
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Container Handling & Crane Technology
New range of empty container handlers promises better performance Kalmar, part of Cargotec, has launched a new range of empty container handlers at Container Depot Munich. Promoted with the phrase “Expect more� the range promises not only to meet customer expectations, but to even exceed them.
O
ver the last 30 years, Kalmar has delivered nearly 10,000 empty container handlers, with thousands of them still in operation today. 90% of Kalmar customers say they would purchase a Kalmar empty container handler again, primarily for their superior durability and reliability and the excellent local support and service network. The new DCG80-100 range was developed following research to discover what customers most wanted from container handlers. The three most important factors were better performance, greater reliability with less downtime, and lower running costs. The DCG80-100 empty container handlers
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have been designed to offer all this, as well as an unprecedented amount of choice on features. The range offers single and double stacker models in 8, 9, or 10 tonne capacities. Drive lines, lifting heights, spreaders, and performance levels can all be specified according to need, as can a host of safety features and options, including reverse warning, fire suppression, alco lock, tyre pressure monitoring, additional lighting, and more. Driver comfort is prioritised with the state-of-the-art EGO cabin, offering advanced ergonomics, improved visibility, and the option of either a high or low position on the chassis. The range offers the highest lifting and lowering rates available on the market, with dramatically
reduced running costs per move. Servicing intervals have also been increased, with easier access to the machine for maintenance. The new range also comes with SmartFleet, a powerful equipment monitoring and optimisation tool that makes it easy to
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Container Handling & Crane Technology
analyse performance data, helping to improve both efficiency and productivity. Alf-Gunnar Karlgren, Sales & Marketing Director at Kalmar, says: ĂŹOur new range of empty container handlers offers more than ever before, giving customers much more for their money. They are the most reliable and
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robust range of empty container handlers on the market, with higher uptime and lower total running costs than competing machines. This, combined with the high re-sale value of all Kalmar empty container handlers, means that the DCG80-100 range offers the best lifetime value currently available. l
Alf-Gunnar Karlgren, Sales & Marketing Director at Kalmar, says: Our new range of empty container handlers offers more than ever before, giving customers much more for their money. Quarterly — 3rd Edition 2016
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Container Handling & Crane Technology
Liebherr presents LTM 13006.2 Mobile Crane Liebherr presents its 300 tonne mobile crane LTM 1300-6.1 at Bauma China 2016. It is the most powerful 300-tonner available on the mobile crane market. The six-axle crane features a 78 m telescopic boom. On the one hand it is designed as a simple folding jib crane whilst on the other it is the smallest luffing jib crane on the market providing crane operators with a low cost entry point into the luffing jib crane class. The innovative Liebherr single engine drive is used in the LTM 1300-6.2.
Outstanding load capacity and a long boom system: Its particular high load capacity with its telescopic boom extended means that the LTM 1300-6.2 is ideal for erecting tower cranes. In addition to its 78 m telescopic boom a whole range of lattice jib systems is available which can equip the new crane for a wide range of applications. The 12.5 m – 21 m double folding jib can be extended by two additional 7 m sections to a total of 35 m. The folding jib can be erected at an angle of 0°, 20° or 40° or as an option can be adjusted hydraulically between 0° and 40° whilst fully loaded. The 5.5 m foot section of the folding jib can be used as a heavyweight erection jib and provides a considerable load capacity of 58 t. Can be readied for use quickly with user-friendly setup functions: Liebherr has designed the new 6-axle mobile crane on the one hand as a classic folding jib crane so that it can be used with the same speed and flexibility as a 5-axle model by crane operators. On the other hand, the LTM 1300-6.2 is the only 300-tonner on the market and is therefore the smallest crane on the market with a luffing lattice jib.
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For crane companies that want to extent their range of offerings with a luffing jib crane, the new 6-axle model from Liebherr is ideal for taking a first step into the luffing jib class. The luffing lattice jib can be erected in steps of 3.5 m up to a height of 70 m. The 14 m – 42 m fixed jib also has modules of 3.5 m which helps to improve its load capacity. All the setup functions such as ballasting and lattice jib erection are designed to be particularly user-friendly. The fixed jib can also be erected on its own, in other words without an auxiliary crane. Innovative single-engine concept: A completely new concept for the superstructure drive unit has been used on the LTM 1300-6.2. Instead of the twin-engine concept normally used on cranes in this class, the 300-tonner is powered by a single engine with a mechanical shaft. Gear shafts are routed from the distributor gear in the substructure via two mitre gears through the centre of the slewing ring to the pump distributor gear in the superstructure. A mechanical shaft ensures a particularly high efficiency level and low engine speeds in the chassis engine provide sufficient power for crane work. This ensures the economy of the new concept in terms of fuel consumption. The simplified engine concept puts Liebherr in an ideal position for modifying its diesel engines to meet the statutory emissions regulations.
Other benefits over the use of a separate superstructure engine include a reduction in the amount of maintenance work and a reduction in weight. The omitted weight can be used for load-bearing components, thus increasing the crane’s load capacity. Time-tested, powerful drive train: An eight-cylinder Liebherr diesel engine which develops 450 kW / 612 bhp at 1900 rpm and torque of 2,856 Nm at 1500 rpm provides the LTM 1300-6.2 with all the power it needs. The power is transferred to the crane axles via the 12-speed ZF-TC-Tronic gearbox. A torque converter has been installed for starting and accurate manoeuvring. The intarder, a zero wear hydrodynamic brake integrated in the gearbox acts as a retarder. In addition, a Telma eddy current brake is available as an option. Like almost all LTM mobile crane models, the LTM 1300-6.2 is fitted with pneumatic disc brakes which Liebherr was the first manufacturer to introduce for mobile cranes some years ago. Compared to drum brakes, not only do disc brakes provide better braking performance but are also more economical since the brake pads can be replaced more quickly and easily and they also offer a longer service life. The four rear axles on the six-axle chassis of the new 300-tonner have active electrohydraulic steering depending on the vehicle speed. This increases the manoeuvrability of the vehicle and drastically reduces tyre wear. At crab steering speed all six axles are steered which means that there is no need to raise any axles.
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Container Handling & Crane Technology
Convenient Liebherr controller: The LTM 1300-6.2 features the Liebherr LICCON2 crane controller which has now become established in a number of Liebherr mobile cranes. An addon program has been developed for the new crane drive concept with just one engine and a mechanical shaft to allow the machine to be run with low fuel consumption. This enables the complete pump drive to be automatically disconnected when the engine is idling and then reconnected by the intelligent controller in a matter of seconds when it is required. A mobile,
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multifunctional control and display unit, the “BTT” Bluetooth terminal – is provided for setup functions. Using this the crane can be jacked easily and safely. The crane driver also has the option of attaching and removing the hook block on the crane bumper with visual contact by controlling the hoist winch and the luffing cylinder of the telescopic boom remotely via the Bluetooth connection. The BTT is also used for other setup functions such as ballast assembly and for mounting the folding jib and the second hoist winch on the new LTM 1300-6.2. l
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terminal operating systemS
TERMINAL OPERATING SYSTEMS
Navis Business Intelligence Platform PD Ports Powers Productivity & Predictive Advantage with Navis BI Portal
Customer Profile • PD Ports owns and operates Teesport, the second largest container port in the UK • PD Ports has the single largest warehousing facility at the Port of Felixstowe of some 500,000 square feet, situated just 250 meters from the dock gates • More than £1 billion has been invested at Teesport in the last decade Challenges • Lacked critical data and insights for a holistic view of business and operations • Missing key KPIs to analyze operations to boost efficiency and overall ROI • Needed the ability to measure and analyze performance to fine-tune terminal operations Solution Navis Business Intelligence Platform
Results at a Glance • Established clear and measurable KPIs equipping decision makers with data and insights to take actions that lead to continued improvement • Gained the ability to measure initiatives implemented over the past 18 months – which have proven vital to terminal decision-making • Demonstrated success following a terminal gate pilot project by measuring average vessel productivity increases from 18.8 GMPH to 22.3 GMPH • Increased gate move productivity 34 percent, from 21.3 GMPH to 28.6 GMPH.
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terminaloperator.com
terminal operating systemS
“As we charted our course for future growth, we needed a clearer view into our business and operations. Our new BI tool has served as a real gamechanger in that regard,” says Westmoreland. better, more informed decisions about the company’s future.
The Industry Demands Intelligence to St ay Competitive PD Ports is one organization that makes a point to embrace change. They accept the reality that terminals that want to grow and remain competitive need to adopt new technology and practices to meet evolving industry challenges. As part of this process, PD Ports has implemented the Navis Business Intelligence Portal, with the goal of leveraging data and analytics to gain a holistic view of their terminal’s operations in
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order to measure performance and identify areas for improvement. PD Ports has made data analytics and BI a priority within their terminal, equipping key decision-makers with the knowledge to understand not only where they are, but where they will need to be to take advantage of the changing industry landscape. Their new BI capabilities provide insight into their operations and KPIs, getting the right information to the right people at the right time to make
Gaining Terminal Visibility through Business Intelligence “As we charted our course for future growth, we needed a clearer view into our business and operations. Our new BI tool has served as a real game-changer in that regard,” says Westmoreland. “We now have much more visibility into our operations, and by utilizing the resulting information, we are able to much more effectively manage change and conduct active decision-making.” PD Ports compiled a team of application, IT and operations staff to analyze their BI data, which in turn were able to identify and establish new KPIs. Westmoreland attributes the success of the BI program to the wide range of terminal staff that are given the opportunity to observe and utilize the information. PD Ports found that a diversity of opinion regarding data analytics allowed for a higher level of discourse on terminal action. It also ensured that all interests were represented in any decisions made based on the information, and that the resulting terminal processes were owned by specific decision-makers. PD Ports also partnered with Navis to set up a two-week workshop with the operations, IT and applications teams to train them
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on using their new business intelligence data. Together, they used their data to break down their terminal into its core components to gauge how their functions could best be improved, as well as determine the effectiveness of high level management. Turning Data into Action Following the establishment of KPIs for terminal functions, PD Ports sought to turn their findings into action. By clearly defining the KPI of each terminal operation, PD Ports can look at their processes from a tactical perspective and decide on actions to improve efficiency and predict ROI based on those actions. Navis’ BI solution is helping PD Ports track some of its main KPIs including: Key KPI’s: Vessel Productivity (GMPH), Truck Turnaround Times, Cost (hours), CHE Utilization
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With the help of Navis’ BI tool, PD Ports gained the ability to measure initiatives they implemented over the past 18 months – which have proven vital to terminal decision-making. For example, in 2015, average vessel productivity was at 18.8 GMPH with a crane density of 1.35. On the back of a successful pilot ‘Gate project’ in 2015, which improved truck processing at their gates, further initiatives were undertaken to improve vessel performance in 2016. Thanks to the insights provided through BI, PD Ports was able to measure that these initiatives resulted in average productivity in 2016 moving from 18.8 GMPH to 22.3 GMPH, a performance increase of 18.6 percent. In addition, the comparison in productivity between June 2015 and
Quarterly — 3rd Edition 2016
June 2016, of 21.3 GMPH and 28.6 GMPH respectively, shows an increase in productivity performance of 34 percent. By embracing new technology and new data and analytics capabilities, PD Ports has shown growth in years when the industry as a whole has shown decline. Westmoreland feels that the key has been embracing data for greater visibility into PD Ports’ own operations as well as the overall industry. He expects to see other supply chain players get on board and the trend towards actionable intelligence from BI to continue. “When I look at what the future will hold for our industry, I foresee an ever-increasing demand for end-to-end supply chain visibility,” predicts Westmoreland. “Suppliers are already beginning to ask for the ability to track and trace their cargo from the cradle to the grave, across the whole supply chain. This demand will naturally lead terminals to implement and develop business intelligence practices within their organizations, so they can see a holistic view of their operations, and accurately assess their processes as they fit into the industry as a whole.”l
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W I N D S O R B A L L R O O M , GR O S V E N O R H O U S E , D U B A I
TERMINAL OPERATING SYSTEMS
E
Health, Safety and the Environment in Critical Infrastructure Facilities:
How Network Cameras Can Help Keep Workers and the Public Safe
By Andrea Sorri, Director Business Development, Government, City Surveillance and Critical Infrastructure, Axis Communications
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very critical infrastructure facility has a duty to protect the health and safety of workers and the public, as well as to protect the environment. Typically, there are strict processes and policies in place to ensure employees work in a safe way, use the right tools and equipment, and adhere to set procedures in case of an emergency – for example during a plant evacuation. But, beyond the main focus of keeping people and the environment safe and complying with legal requirements and industry standards, health, safety and environment (HSE) considerations are also increasingly evolving, with plant operators seeking – and gaining – a better understanding of the actual risks and effects of production processes within their plant, and how best to mitigate those risks. While HSE processes are often still managed manually – for example, by ticking boxes on a checklist once certain procedures have been completed, some operators are now starting to turn to network video technology to help them automatically monitor process adherence, evaluate risks in real-time, and improve health and safety practices. Network video cameras may already be in place to protect a plant against unauthorized access, sabotage and theft. The same technology can also be used to ensure the safety of the workers within the facility. For example, with the help of network cameras that are integrated with the access control system, operators can have an overview of how many workers are present in each area of the facility, at any given time. In case of an emergency, this information can be crucial to ensure the safe evacuation of every person within the plant and its surrounding area. Integrated with access control and using advanced image processing techniques for license plate or facial recognition, the network cameras can identify, inspect and track vehicles, drivers and passengers from the moment they pass through the gates, and ensure that safety procedures are followed and no worker or visitor enters a zone that they are not authorized to or that is not safe to access.
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terminal operating systemS
Due to their superior image quality, connectivity, scalability, and scope for adding video analytics applications, network video cameras are increasingly replacing analog CCTV cameras to secure critical infrastructure facilities.
Similarly, the same cameras can be used to make sure employees are working in a secure and clean environment and in a safe manner at all times. With add-on video analytics applications such as cross-line detection, the cameras can, for instance, automatically alert individuals if they are getting too close to a dangerous zone or to the machinery. Are employees wearing the right safety gear? Thermal network cameras can track whether safety helmets, high-visibility vests or safety glasses are worn, while at the same time protecting the employees’ privacy as they don’t record facial features. And finally, to detect dangerous and hazardous situations, network cameras can be used to check for any leakages, smoke, or gas flares, and raise automatic alarms so operators can act quickly and minimize any risk of injuries, or damage to the plant or the environment. While safety procedures help minimize the number of incidents, emergencies do occur. In case of an incident such as a fire, a fast response is crucial. Intelligent network cameras installed throughout the facility enable operators to identify the type, scope and severity of the incident so that proper action can be taken. They can assist the safe and rapid evacuation of the plant by detecting smoke and how it develops, tracking the flow of evacuation through the building, and tracking and supporting the rescue team as they enter the facility. Advanced camera technologies that enhance image quality help provide a clear picture of the situation, even in situations where visibility is poor due to smoke, dust or darkness.
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While it’s easy to see how network cameras can aid an operator to safely run a plant in day-to-day operation, identify hazards and mitigate risks, and to deal with emergencies, long-term reviews and improvement of HSE practices are also an area worth considering. The key to continuously evaluating risks, and improving equipment, processes and services for maximum safety is to know exactly how workers and visitors move inside a plant. Who is doing what, when and where? Network cameras let the operator not only follow a situation in real-time, but also collect statistical data over a period of time to gain a better understanding of what happens
inside the facility day to day – helping the security and the safety manager to adjust and update safety and environment policies and procedures as and when needed, and serving as a training tool when instructing employees on safe practices. Due to their superior image quality, connectivity, scalability, and scope for adding video analytics applications, network video cameras are increasingly replacing analog CCTV cameras to secure critical infrastructure facilities. With the added benefit of being able to support HSE processes, the transition to network video becomes an even more obvious choice. l
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mooring & berthing
mooring & Berthing
Ottonel Popesco
Patrik Tigerschiold
Stefan Windegren
Cavotec announces generational change of leadership Chairman Stefan Widegren and CEO Ottonel Popesco to hand over leadership of Cavotec SA during 2017. Patrik Tigerschiöld has been appointed as Deputy Chairman. The new strategic plan envelopes wide ranging strategic and organisational changes, marking a new phase for Cavotec and providing a roadmap up to 2021.
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o ensure continued growth and to safeguard Cavotec’s future as leader in its markets, Chairman Stefan Widegren — with full involvement of the CEO Ottonel Popesco and the Board — has started the process to pave the way for the final steps of a generational change in Cavotec. As a dynamic and growing company Cavotec has been in continuous development since its founding in the early 1970’s. Hallmark of the Company’s success is the continuity and
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stability provided by management, focussing on transparency and hands-on leadership, combined with a strong spirit of entrepreneurship. With the aim to bring the company to the next level, the Board of Directors recognises the need to bring in new resources and is fully committed to a smooth and seamless handover ensuring continuity of leadership. This selection and appointment process will be done in an open and transparent manner, closely involving both the current Chairman and CEO, leveraging their deep knowledge and expertise built over the years running Cavotec SA.
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mooring & Berthing
“Personally, I am committed to continue in my position as Chairman as long as necessary to ensure a smooth transition”, says Stefan Widegren, Chairman of Cavotec SA. “Having said that, my goal would be to vacate the Chairman position by no later than the OGM in 2018 and I welcome the Board’s decision to appoint Patrik Tigerschiöld as Deputy Chairman of Cavotec”
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“Personally, I am committed to continue in my position as Chairman as long as necessary to ensure a smooth transition”, says Stefan Widegren, Chairman of Cavotec SA. “Having said that, my goal would be to vacate the Chairman position by no later than the OGM in 2018 and I welcome the Board’s decision to appoint Patrik Tigerschiöld as Deputy Chairman of Cavotec”. “My mission is to ensure continuity of the business until the handover is fully completed” says Ottonel Popesco, CEO of Cavotec SA since 2007. “Thereafter I will continue to work
as a Board member on strategic board assignments and high level promotion of Cavotec’s environmentally friendly solutions to airports, port authorities and other key stakeholders”. Since early 2016 the Cavotec management team has been preparing, in close cooperation with the Board of Directors, a new five-year Strategic Plan. This plan is set to be launched in January 2017 and defines a new organisational structure and a roadmap for the Company up to 2021. Created around Cavotec’s vision of being the world-leading expert in engineering and supply of system solutions to connect, electrify and automate ships, planes and mobile equipment, the 2017— 2021 Strategic Plan will ensure a more direct and focussed approach to major markets while allowing a more efficient use of the Company’s resources and know-how. “Cavotec’s mission is to be a trusted partner thanks to our global operational and innovation excellence delivering value creation with advanced efficient and sustainable systems for Ports, Airports & Industry” says Ottonel Popesco, CEO of Cavotec SA. “This strategic plan will provide our customer with a more complete and competitive offer and aims to double our sales and substantially increase our profitability over the next 5 years”. The Strategic Plan 2017—2021 is planned to be launched in January 2017 and will see the current Cavotec structure organised around two distinct Business Units —Ports & Maritime and Airports & Industry. This will also be the new financial reporting structure for 2017 onwards, with the current Mining & Tunnelling operations being integrated into the new Airports & Industry Business Unit. l
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port LIGHTING
port lighting
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port lighting
Illumination Technology Marches On Five years ago, crane illumination was an afterthought for the world’s ports and terminals. Lighting technology development had been stagnant for years while terminals operated under the dull, orange glow of high pressure sodium lamps or the harshness of metal halide lamps. Advancements in Light Emitting Diode (LED) technology have reset the illumination landscape and forced terminal operators to reevaluate standards and specifications. Since Phoenix Lighting introduced its first high-powered LED floodlights in 2011, container handling equipment illumination has presented terminal operators an opportunity to adopt modern technology and reap the safety, operational and environmental benefits with an attractive payback.
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ndustry Follows Overall Lighting Trends. The United States Department of Energy estimates that 62% of lighting will be generated by LED technology by 2020 and nearly 85% by 2030. Equipment illumination follows this trend in ports and terminals as confidence in LED technology continues to grow. Terminal operators have found an attractive payback on selecting LED illumination for new container handling equipment. It is estimated that over 75% of yard cranes built in 2016 are illuminated by LED technology. According to crane suppliers, LED illumination has become standard on
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automated yard cranes, as it can be turned on/ off instantly, allowing a terminal to minimize energy consumption and light pollution in an automated yard. Large automation projects in Rotterdam, Singapore, Jebel Ali and the United States have all chosen LED floodlights to illuminate automated yard cranes. The same trend can be seen with RTGs as crane suppliers are consistently asked for LED illumination. Georgia Ports Authority is a leader in environmental sustainability and recently received the 1000th RTG manufactured by Konecranes. In partnership with Phoenix Lighting, Konecranes supplied this 1000th RTG with a complete LED illumination package
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port lighting
including the EcoMod Series LED floodlight and the Cube-Light access way light. The industry has adopted LED illumination for STS cranes more slowly, as mounting heights reach over 60m above the wharf and more than 75m to the bottom of a vessel. Even with those challenges, more than 30% of the STS cranes built in 2016 are estimated to be illuminated by LED technology. In 2015, DP World chose Phoenix’ EcoMod LED floodlight to illuminate new STS cranes for the Jebel Ali Terminal, where floodlight mounting heights reached more than 60m above the wharf. The EcoMod 450 LED floodlight made it possible to meet stringent illumination specifications through the use of customized optical lenses and high-powered LED modules. Overall lighting energy consumption per crane fell while product lifetime increased by up to 500% compared to traditional ceramic metal halide floodlights. Amongst lighting suppliers, product development continues to advance quickly. LED chip suppliers such as CREE and Philips continue to develop brighter, more efficient LED chips. This presents LED lighting manufacturers with the opportunity to reduce the size and weight of the fixtures while also increasing the light output. Perhaps the most rewarding aspect for terminal operators is the downward trend in prices of LED products. It is also worth noting that terminal operators should ask questions. Some lighting suppliers promise long lifetimes and maintenance-free products for five, ten or even more years, but many are new entrants to the port market and have not had installations in place to prove theoretical performance. Longevity and Experience Phoenix Lighting has always been an industry leader in high-vibration, marine lighting products and
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installed its first LED floodlight on the STS cranes at APL Terminal in the Port of Los Angeles in January of 2012. Phoenix is a clear example of the evolving technology and pricing trends. When Phoenix introduced the EcoMod® Series LED floodlight in 2013, it brought a new level of technology to the terminal industry with light quality, efficiency and durability never before available to ports and terminals. Phoenix’ original EcoMod illuminates over 500 cranes working in ports and intermodal terminals on six continents. While the EcoMod Series has proven the capability of LED illumination for terminal operators worldwide, Phoenix continued to pioneer the LED revolution and recently unveiled the next generation of the EcoMod that has impacted so many terminals around the world - the EcoMod 2 Series. The benefits of the EcoMod 2 move beyond increased efficiency. Customer feedback guided Phoenix’ engineering process for the EcoMod 2 Series. It was designed for all the same high-vibration, corrosive terminal applications as the original EcoMod but with a considerable reduction in size and weight. The compact design makes the EcoMod 2 attractive to those ports and terminals interested in replacing old, unavailable traditional floodlights on existing equipment. Terminals increasingly find an attractive payback period for large scale lighting retrofits. Both the MSC Terminal in Valencia, Spain and the APMT Pier 400 Terminal in Los Angeles, California recently included LED upgrades as part of crane raise projects. Whether installed on an existing crane or specified for new equipment, the EcoMod 2 was designed to deliver years of illumination without the costs of maintenance and repair parts.
Lighting manufacturers are beginning to obsolete traditional lights that were installed on container handling equipment for the last 20 years, which will encourage terminals to investigate and ultimately select LED options for replacement units. It won’t likely take long for these operators to reap the benefits and wonder why they didn’t make the switch sooner! l
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