Quarterly - 4th Edition 2015
In partnership with
Abu Dhabi Terminals:
Ready to go! exclusive interview
Abu Dhabi Terminals prepares for another successful year P.22
TERMINAL PLANNING DESIGN & CONSTRUCTION Optimization holds the key to meeting present challenges P.32
licensed by creative city and national media council
mega vessels Container shipping supplydemand gap widens as year closes P.62
container hanling and crane technology Terminals seek sustainability with new solutions P.74
TERMINAL OPERATING SYSTEMS Finding calm in the chaos P.88
DP World Group CEO Mohammed Sharaf retires P.46
Providing customers with green transport solutions • Proud to operate the world’s most eco-efficient ultra-large container vessel • Our 18,800 TEU container vessels deliver the industry’s lowest CO2 levels per-container • Our cutting edge E-solutions, wide geographical reach with over 240 ports spanning every continent and 185 offices worldwide ensure we meet our customer’s needs
www.uasc.net
JADE MASTER TERMINAL
DPS
GULFTAINER
Christchurch -43.492394, 172.559743
Smart software makes your job easier. Jade solves challenges faced by mixed cargo ports and carriers around the globe.
Ambitious, competitive ports from Qater to Mexico have chosen Master Terminal as their terminal operating system. A single integrated view of your entire operation lets you work faster and make better decisions day-to-day and in the future.
Our enhanced implementation methodology and user support makes the move to Master Terminal as smooth as possible.
The leading TERMINAL OPERATING SYSTEM for container and mixed cargo ports.
DPS
GULFTAINER
jadeworld.com/logistics Middle East Asia Pacific Americas Europe Africa
KHALIFA PORT CONTAINER TERMINAL TRADE MOVES WITH US
DPS
GULFTAINER
DPS
GULFTAINER Fastest growing port in the Middle East • 50+ Direct destinations, 20+ weekly services • 2.2 Million sq.ft. warehouse space inside the port • 0 Km from KIZAD, 45 km from JAFZA, 75 km from Mussafah • Ranked 5th in EMEA Port Productivity report (34 GMPH) •
www.adterminals.ae
SECURE COMMERCE.
CONNECTED.
Integrate and Optimize Cargo Screening Operations With ClearView™. L-3’s ClearView software solution brings new value-added capabilities to customs and security operations, delivering maximum efficiency, lower resource costs and support for diverse multi-vendor legacy NII systems. Operating in a secure, broad enterprise network environment, ClearView seamlessly combines image analysis, system operations and data from all scanning systems onto a single, centralized display. This collaborative detection capability yields higher throughput, greater operational efficiency and increased probability of detection. Our team is ready to do for you what we’re already delivering for customers globally. For more information, please visit L-3com.com/sds. Security & Detection Systems
L-3com.com
Publisher & CEO Liam Williams liam@flipflopmedia.ae SALES Sales Director Sam Khan skhan@flipflopmedia.ae +971 4 369 9061
editor’s note
Sales Manager Adam Walker adam@flipflopmedia.ae +971 4 369 9063
T
Editorial Editor Sunil Thakur sunil@flipflopmedia.ae +971 4 369 9063
Key players in the region came together at TOC Middle East in December to discuss the way forward for the industry. The rapid expansion of Saudi ports and the opening up of Iran were some of the key points of discussion during the lively presentations.
Staff Writer Rachel Stracey info@flipflopmedia.ae Marketing Head of Marketing Harry Norman harry@flipflopmedia.ae +971 4 369 9062 Design Head of Design Marlou Delaben design@flipflopmedia.ae circulation & Production Circulation and Distribution Manager Antonio de Marco circulationdm@flipflopmedia.ae +971 4 369 9063 Database and Circulation Manager Aaliya Khan databaseandcm@flipflopmedia.ae +971 4 369 9063 Production Manager Juan Vasquez productionmanager@flipflopmedia.ae +971 4 369 9063 Digital webmaster@flipflopmedia.ae Published by
Registered at Fujairah Free Zone PO Box 26734 Dubai, UAE Tel: +971 4 369 9063 Fax: +971 4 369 8989 www.flipflopmedia.ae printed by Printwell
he year 2015 has not turned out to be the best for the global shipping industry. Industrial slowdown coupled with oversupply of vessel capacities, have caused box rates to take a nose dive. Ports and terminals for their part, however, have been quite busy and most of them have ended the year well in the black.
In this issue of Terminal Operator we review performances and share outlooks across the industry and of individual operators. We start off with an interview with the CCO of Abu Dhabi Terminals and find out the reasons behind their continuing success. Gulftainer, for its part, has set a new speed record and we tell you how. Then we look at new port and terminal constructions in Saudi Arabia, India, China and Algeria. As mega vessels continue to push the envelope of physics, optimization and efficiency of terminal operations are turning out to be critical factors in realizing the benefits that these huge ships are intended to bring. As for the shipping lines themselves, how big is big enough? We explore these questions in our Mega Vessels section. In Terminal Operating Systems we discover the new features of Navis N4 3.1 release that offers functionalities to make full use of automation to optimize your operations while offering a better overall user experience. Jade shows us new ways of finding order within the seemingly chaotic operations of a container terminal. Stinis has completed 25 years since its first installation in the Middle East at Jebel Ali Port. We look back at its remarkable run so far and its outlook for the future in the region. Our Environment and Sustainability section has the privilege of featuring an article by Steve Challinor of Royal Haskoning DHV wherein he provides us insights on environmental due diligence in port and terminal operations. We round things off with a report on the “game changing” new tyre production facilities of BKT in India. As mentioned earlier, the past year has not been a particularly good one. But adversity, as they say, is the mother of invention. So hopefully there are valuable lessons learned from which fresh new ideas will inspire us to achieve greater heights and gain deeper insights as we navigate the waters of the New Year with a steady rudder and raised sails.
Sunil Thakur Editor
© Copyright 2015 FlipFlop Media All rights reserved While the publisher has made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
terminaloperator.com
Quarterly — 4th Edition 2015
13
As world trades moves full steam ahead, a smooth supply chain is critical. With over 38 years of managing the world’s most productive ports, Gulftainer has the expertise you need. Our constant innovation and award-winning performance are always on call to partner your global ambitions. Gulftainer operates in Khorfakkan, Sharjah in the UAE, Iraq, Brazil, Lebanon, Saudi Arabia and the USA with logistics offices in Turkey, Pakistan and throughout the region. gulftainer.com
Partnering progress
partners with growing demand
When strong infrastructure
Official Partners
Contents Terminal Planning, Design & Construction
exclusive interview
32
36
22 ABU DHABI TERMINALS PREPARES FOR ANOTHER SUCCESSFUL YEAR
Optimization holds the key to meeting present challenges
saudi ports
mega vessels
Khorfakkan Container Terminal exceeds 4,000 moves in a 12-hour shift
62
44
40 Saudi Ports and Terminals in the Spotlight
26
Adani to expand Mundra Terminal. Kandla to get new terminal operator
Container shipping supply/demand gap widens as year closes
dp world
customized security solutions to suit every environment
toc middle east
28
46 64
Jebel Ali welcomes mega ship Magleby Maersk
abu dhabi ports
54
50 Abu Dhabi Ports Sets Annual Cargo Record
56
Record Participation at TOC Middle East 2015
16
Algeria-CHINA CONSORTIUM PLAn new hub at cherchell
Quarterly — 4th Edition 2015
PSA launches JVs in India and china
58
Port Said Container & Cargo Handling Co. (PSCCHC)
Shipbuilders sailing in choppy waters
68
Hapag-Lloyd slashes fleet, eyes more mergers
terminaloperator.com
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
Official Partners
Contents container handling & crane technology
terminal operating systems
74 Terminals seek sustainability with new solutions
80
88
Silver Jubilee Celebrations: Stinis and Jebel Ali Port celebrate 25 years of cooperation and teamwork
Finding calm in the chaos
82
92
Konecranes to deliver 10 more Automated RMGs (ARMGs) to Khalifa Port, Abu Dhabi
18
Quarterly — 4th Edition 2015
Navis Furthers TOS Innovation with Launch of N4 3.1
terminaloperator.com
Bringing you Container Terminal 3 at Jebel Ali Port, Dubai • World’s largest semi-automated facility • Capacity of 4 million TEU, taking total capacity at Jebel Ali Port to 19 million TEU DP World, UAE Region P.O.Box 17000 Dubai Tel. +971 4 881 5555 marketing@dpworld.com www.dpworld.ae
• 19 automated quay cranes and 50 automated rail-mounted gantry cranes • Quay length of 1860 metres, 70 hectare storage yard and 17 metres depth
Official Partners
Contents customs, security & surveillance
96
Smiths Detection Unveils Next Generation Security System for UAE’s Critical Infrastructure Assets at Intersec 2016
environment & sustainability
100
Environmental due diligence of port and terminal transactions
108
20
Quarterly — 4th Edition 2015
terminaloperator.com
exclusive interview
Abu Dhabi Terminals
ABU DHABI TERMINALS PREPARES FOR ANOTHER SUCCESSFUL YEAR Terminal Operator held a detailed discussion with Simon Brebner, Chief Commercial Officer of Abu Dhabi Terminals, to explore the reasons behind his company’s consistently above-par performance in recent years and how it plans to continue grow and expand its operations in 2016.
What are the reasons for ADT and Khalifa Port’s recent success as one of the fastest growing ports in the world? We closed out 2015 with 1,504,293 TEUs a growth of 32% over 2014 (1,137,679 TEUs) and 26% in 2014 v 2013 wherein we were positioned as the 3rd fastest growing terminal globally; the average growth for the GCC region over the same period was 6%. There are several factors behind this success, also depending on your perspective as a port user. For example as a Shipping Line, berth productivity and overall port stay time is a main value driver, the quicker the turnaround, the more buffer they have for their next voyage sector; we are rated in the top 5 by the JOC within the MENA region on crane productivity. Shipper’s value lies in their ability to access their cargo and information in an efficient manner, access to online services i.e. container tracking/ status, online booking appointments, storage calculator, online payments etc. and we have consistently improved our service offerings in this regard. Truckers require a different metric, which is fast and safe transactions for their assets and this is again another area where we have provided much value in being one of the quickest in the region for truck turn times. We can also see the
22
improvement of our services in our annual customer satisfaction survey, where our CSI (customer service index) rating is now up at 80%, which is an excellent metric and is benchmarked favorably within other ports in the Region. In summary, it is a collective of many different services and value we provide at the highest level of safety and security and we are working hard to continue improving the customer experience for all port users going forward. With industry and population growing in the region what are your new plans to increase cooperation with industrial zones like Kizad and others in the region? The industrial zones are an important enabler to the growth of the Abu Dhabi economy and support the Government’s 2030 vision of diversifying their economy and being less reliant on the oil and gas segment; we work very closely with all stakeholders to ensure that the progress and development of our respective businesses are understood and shared. This also covers any regulatory changes and or improved service offerings for the manufacturer or logistics distributor. Our terminal is ideally located to two industrial zones and
Quarterly — 4th Edition 2015
terminaloperator.com
Abu Dhabi Terminals
with the excellent access, allowing for the ease of container movements to and from these areas. This year we will be ‘partnering’ up on road shows with KIZAD to support and raise the profile for both entities. We will also be joining and supporting the IDB (Industrial Development Bureau) on a number of their international exhibitions, thereby ensuring that Abu Dhabi is profiled to the many potential investors. We are also looking at ways of improving the efficiencies for shippers to go about their business in ICAD and the development of a dry port is one of the areas that we are investigating. With the opening up of Iran what are the effects that will be felt by “feeder” ports and terminals in the UAE? In order to assess the impact of easing of sanctions on Iran on the UAE port sector we would have to revisit the market scenario before sanctions were implemented. The current sanctions which had severe adverse impact on the Iranian economy came into effect in 2012. They were a direct result of the failure of nuclear talks from 2009 to 2012 between Iran, USA and few European countries. Before these sanctions, until 2011, Iran was one of the largest container markets in the Middle East for domestic container traffic. The estimated size of Iranian ports throughput in 2011 was around 3.5 Million TEUs. Although, Bandar Abbas was the largest port in the country handling a major chunk of the traffic (2.8 mln TEUs), there were several other ports spread across the Iran coastline - as far as Iraq’s border - which handled substantial container traffic. These ports are Imam Khomeini, Bushehr, Khoram Shahr and Chabahar. The shipping network during that time was a mix of direct and feeder services to Iran with UAE remaining as the major hub. The shipping lines had to rely on UAE ports for transshipment to Iran due to two major reasons. Firstly, the demand was spread out over the vast coastline of Iran which
terminaloperator.com
Simon George Brebner, Chief Commercial Officer, Abu Dhabi Terminals
Since coming on board in April 2015, Simon Brebner has been fully responsible for the growth of Abu Dhabi Terminals’ commercial business unit. In this role, Simon is aligned with the Abu Dhabi Economic Vision 2030 and ADT’s overall business strategy as well as placing KPCT as a competitive hub for carriers shipping to / from the upper gulf. Very well respected across the industry as a senior shipping, logistics and ports specialist, Simon exhibits expertise in commercial business strategy, customer relationships management and has vast knowledge of diverse geographical markets. He has extensive commercial experience in building long-term customer relationships, key contract negotiations with global carriers and beneficial cargo owners (BCO’s) within Europe, the Americas, Africa, Middle East and Asia. On the operational side, Simon was instrumental in launching new liner services between South America, South Africa, Asia and Europe. These efforts directly translated into satisfied customers, higher market shares and reduced operational costs - all leading to profitability.
made direct services to all of them unfeasible and unprofitable. Secondly, major ports like Bandar Abbas were
severely congested, resulting in high vessel turnaround times causing high operating costs and impact on their network schedule. Post-sanctions, container traffic in Iran was reduced to 1/3rd of its original size. Therefore, the lifting of sanctions might push up the traffic demand at these ports, in a very short period of time. We expect that in order to cope up with the demand and to maintain sanctity of their liner schedule, while remaining profitable, shipping lines will again turn towards UAE ports to transfer the pressure of Iranian demand by using them as regional hubs. So, we could see a surge in transshipment activity in the UAE during the course of the year. Also, due to its proximity to the UAE and historic trade ties, Iran had been a major trade partner of the country, therefore there could be an additional increase in both export – import traffic between Iran and the UAE. We are well positioned to handle this potential surge of Iranian cargo and with our competitive value proposition we are confident that the shipping lines will increase their support for this market. With new container terminals and expansions being built in the Upper Gulf how will they help increase container traffic for Abu Dhabi Terminals? Khalifa port has seen phenomenal growth in container traffic since the commissioning of the Khalifa Port Container Terminal operated by Abu Dhabi Terminals in 2012. We handle in excess of 1.5 mln TEUs per annum, which provides shipping lines economies of scale to use this port as a transshipment hub within the Arabian Gulf region. One of the feeder markets being served through Khalifa Port has been the Upper Gulf region, which has
Quarterly — 4th Edition 2015
23
exclusive interview
Abu Dhabi Terminals
traditionally been connected to the rest of the world via feeder services from the UAE. There are a couple of reasons to it, and one of major contributive factor is the sheer distance of these ports from the Strait of Hormuz. For example, the estimated one way sailing time for a vessel moving at 10 Knots from Khalifa port to Umm Qasr is around 2.5 days. This is the cost in terms of “loss of sailing days” to other ports on the East-West trade lane that every shipping line has to bear, in case they decide to place a mainline direct service to Upper Gulf ports. Also as these markets are quite spread out, it is difficult to profitably connect to all of them, individually, through direct services. As the average operating costs per day of even medium sized vessels now ranges from USD 10-15,000 per day, large shipping lines prefer to turn their vessels around from UAE ports. Subsequently, the Upper Gulf bound boxes are then shipped through feeder vessels from regional hubs, like the Khalifa Port. We welcome much needed expansion of the Upper Gulf ports which we believe would improve efficiency, provide better turnaround time and augur container traffic demand. However, these constraints of market economics prevailing in the shipping industry along with increase in intra-regional trade will drive demand from container traffic at the Khalifa Port in the near future.
24
Quarterly — 4th Edition 2015
“One of the feeder markets being served through Khalifa port has been the Upper Gulf region, which has traditionally been connected to the rest of the world via feeder services from the UAE.”
Tell us a little bit about the next phase of expansion of Khalifa Port Container Terminal. Our current capacity is 1.9 mln TEUs and with our utilisation edging towards 80%, we will be procuring 3 additional STS cranes supported by 10 ASC ( Automated Stacking Cranes ) for our yard operations which will increase our capacity to 2.5 mln TEUs. This equipment will be delivered later this year and phased into operation during Q4/2016 and Q1/2017. So this is the planned expansion in the immediate short term and will ensure that Abu Dhabi terminals is well positioned to support the strong growth of the Abu Dhabi economy as well as the regional markets over the next 5-10 years. Further phases of development will occur as market demand requires. When all phases of development are complete, Khalifa Port will be able to handle 15 mln TEUs and 35 mln tons of general cargo per year. l
terminaloperator.com
A GLOBAL NETWORK A LOCAL, PERSONAL APPROACH MSC is a world leader in global container shipping and a company that prides itself on offering global service with local knowledge. The company has access to an integrated network of road, rail and sea transport resources which stretches across the globe. Excellent and flexible customer service is at the heart of the company’s ethos - which means having total confidence in the quality of service you will receive. To find out more, contact your local MSC office.
msc.com
exclusive interview
L-3 Security & Detection Systems
customized security solutions to suit every environment Terminal Operator spoke to Paul Simpson, Vice President and General Manager of Cargo Solutions at L-3 Security & Detection Systems to find out more about their products and latest offerings.
CX-portal
CX-Gantry
What are the advantages of using L-3 security screening solutions? L-3 Security & Detection Systems (L-3 SDS) works closely with customers to provide configurable products and customized solutions that address each customer’s unique requirements. On every assignment, L-3 SDS works hard to understand environment, operations and throughput components to achieve the desired results. L-3 will consult on and support the management of system design, installation and service, environmental concerns and civil works. The company serves the full range of cargo environments and applications – all backed by one of the industry’s largest and most experienced global service teams. Describe some of your latest screening products? L-3 developed the ClearView™ software solution specifically for port and border cargo security applications. ClearView allows customs and security operations to leverage their existing infrastructure, increase efficiency, lower resource costs and extend the useful life of diverse multivendor legacy screening systems.
26
Quarterly — 4th Edition 2015
“L-3 also provides multiple mobile and fixed platforms for radiation detection and identification. The CRPortal’s state-of-the-art radiation detectors provide superior classification on regularly encountered sources and detect and identify different classes of radioactive material.” The ClearView software solution is both networkable and scalable. Imagine all points of entry linked to a central command. This central command has oversight and recall capabilities. It can either assist with the decisionmaking process or serve as a pool of supplemental resources to assist in image
terminaloperator.com
L-3 Security & Detection Systems
Paul Simpson is vice president and general manager of the Cargo Solutions business at L-3 Security & Detection Systems. He has held various senior positions in management and international business development in the defense, aerospace and security sectors. Mr. Simpson received a Bachelor of Science degree from HeriotWatt University in Edinburgh, Scotland.
“Training requirements depend on the experience of our customers and their particular application of our solutions. We offer a broad range of courses for operations, maintenance and engineering personnel on-site or at multiple L-3 SDS facilities worldwide.” interpretation efforts when satellite locations are understaffed or overburdened at peak hours. ClearView ensures that all raw data collected by multiple deployed assets, regardless of the manufacturer or year, is filtered through the same industry-leading features and algorithms, as well as the same interface. This ensures that consistent, actionable information is presented to the people making critical decisions.
terminaloperator.com
CR-portal
What are the basic technologies used by L-3 cargo inspection systems? L-3 supplies a full range of non-intrusive, high-energy X-ray and radiation detection inspection solutions. These include the CX-Mobile® G3, an advanced, self-powered scanning vehicle that can be deployed rapidly at any suitable location; the CX-Portal®, a drive-through X-ray inspection solution that tackles the high throughputs at busy ports and borders; the CX-Gantry®, which combines full-coverage scanning and high penetration with high image quality; and the CX-Pallet® for the screening of consolidated cargo. L-3 also provides multiple mobile and fixed platforms for radiation detection and identification. The CR-Portal’s state-ofthe-art radiation detectors provide superior classification on regularly encountered sources and detect and identify different classes of radioactive material. They are extremely precise, with a low false alarm rate. Describe the prominent personnel training programs offered by L-3. Training requirements depend on the experience of our customers and their particular application of our solutions. We offer a broad
range of courses for operations, maintenance and engineering personnel on-site or at multiple L-3 SDS facilities worldwide. What is L-3’s approximate installed base? And what are the plans for future expansions? In the past year, L-3’s port and border solutions business has been expanding with customers in Europe, Asia, Central America and the Middle East. These customers, which include governments and port operators, have bought ClearView, the CX-Portal, the CX-Mobile G3 and the CR-Portal. With more than 50,000 systems deployed and supported around the globe, L-3 Security & Detection Systems (L-3 SDS) is a leading supplier of security screening solutions. For over 30 years, L-3 SDS has developed and manufactured cuttingedge products using advanced technologies that include networking; 3-D computed tomography; automated, conventional and high-energy X-ray; radiation detection; active millimeter wave imaging; metal detection; and energetic trace explosives detection. Applications include the screening of people, vehicles, baggage, cargo and packages for explosives, firearms, drugs, contraband and corporate assets. l
Quarterly — 4th Edition 2015
27
toc middle east
Record Participation at TOC Middle East 2015 This year’s TOC Middle East event has been heralded as a huge success.
M
ore than 500 participants attended two days of conference sessions and technical workshops, in addition to the co-located TOC Middle East, which had more than 50 exhibiting companies at Le Méridien Dubai Hotel & Conference Centre, Dubai, UAE, on 8-9 December, 2015. Opening the Plenary conference session, Mr Mohammed Al Muallem, Senior Vice President & Managing Director, UAE Region, DP World, pointed to the growing capacity in liner shipping as larger container vessels enter numerous trade lanes. This is happening against a backdrop of weak global trade. To counter this, many shipping lines are temporarily removing capacity in response to sluggish market demand, principally on Asia-Europe trades. Globally port handling growth is expected to slow to 2.2% in 2015 (from 5.3% in 2014) before a slight rebound in 2016 to 3.3%. However, Middle East ports are proving more resilient than the global average. Middle East port throughput is estimated to grow by 5.1% in 2015, with projected capacity in the region of 55 million TEU in place by 2020. Average utilization remains high at over 70%, with a number of expansions in facilities either planned or already underway. This impressive performance is being driven by high consumption growth in Middle East economies and robust industrial growth. DP World’s UAE region ports, including the flagship facility of Jebel Ali, remain ambitious, he continued. In the 12 months to September 2015, the region handled 11.9 million TEU, up 4% year-on-year. Mr Al Muallem was followed by His Excellency Musaad Al Drees, Director
28
Quarterly — 4th Edition 2015
terminaloperator.com
toc middle east
General of Saudi Ports Authority. Mr Al Drees outlined the Saudi Ports Authority vision for establishing an effective ports system in the Kingdom of Saudi Arabia that is at once competitive and capable of responding to market changes, as well as enhancing the economic growth of the Kingdom.
terminaloperator.com
The principal message he conveyed was that the Saudi Ports Authority will become the main player in connecting the national economy with the global market by providing productive, safe and environmentally sound facilities, employing nationally skilled manpower motivated to achieve high performance and financial sustainability. The Authority has developed Master Plans for several of the Kingdom’s ports, and Mr Al Drees then went to outline the basics of these plans for the ports of Jazan and Duba, Yanbu Commercial Port, Jubail Commercial Port, and King Abdul-Aziz Port Dammam. The final keynote speaker of the opening session was Mr Martijn Van de Linde, Chief Executive Officer, Abu Dhabi Terminals. Since opening in 2012, Abu Dhabi Terminals’ Khalifa Port has been growing at double digit rates and has doubled the container volumes handled over that period. Mr Van de Linde pointed out that GDP in the Gulf Cooperation Council region has grown significantly during the past decade, totalling 11.8% between 2004 and 2014.
He then outlined some factors that could have a major impact on the region’s port industry over the coming years. The ending of international sanctions against Iran is a potential game-changer for Gulf market growth, he said. The likely outcome is increasing numbers of direct connections to the Iran market. Running parallel is the development of the rail network across the GCC which could impact shipping line dynamics probably reducing the number of feeders. The rail network could be an opportunity for most ports to expand their hinterlands, but it may slightly reduce the volumes of transhipment from main hubs, he stated. Finally, the recent growth in container throughput in the Upper Gulf could lead to the creation of new direct deepsea routes to Kuwait. Following the opening Plenary conference session the accompanying TOC Middle East exhibition was officially opened by His Excellency Sultan Ahmed Bin Sulayem, Chairman of DP World, accompanied by His Excellency Musaad Al Drees. l
Quarterly — 4th Edition 2015
29
Terminal Planning, Design & Construction
Terminal Planning, Design & Construction
Optimization holds the key to meeting present challenges In recent years port congestion has got so bad in some regions that it is often likened to a “trade barrier”. The economic damage caused to the US by the recent west coast congestion has been estimated to be between $1 bln and $2 bln per day!
O
ne of the primary reasons for this port congestion is the recent growth spurt of containerships and their sizes. Containership capacity has outpaced that of world port throughput and is fast approaching capacity of 20 million TEUs. The requirement for ports to raise their productivity levels has been apparent ever since increasing container vessel sizes became the norm. According to research conducted by Drewry upsizing from a 13,000 TEU vessel to 19,000 TEU, a capacity increase of some 46%, had led to only a 20% increase in berth productivity. Currently, the best-performing container port in the world, is Yokahama, in Japan. Presently, Yokohama, is hitting an average of 180 moves per hour - equivalent to handling 4,230 TEUs in a 24-hour period. This is still a good
32
Quarterly — 4th Edition 2015
measure less than what is required to efficiently service an Ultra Large Container Vessel (ULVC) so that latter may realize the full benefits of the economies of its scale by spending the least possible time at port. In fact, the cheaper freights offered by ULCVs are offset by congestion and delays caused at port, thus negating benefits by increasing overall supply chain costs. So why isn’t port productivity able to keep up? There are number of reasons. Firstly, the newer ULVCs have not only gotten longer but also disproportionately wider. The 2009-built Gerda Maersk is 366 meters long, 43 meters wide and has a capacity of 9,000 TEUs. Compare that to the Maersk-McKinney Møller which is just 10% longer at 399 meters, but 37% wider at 59 meters and carries twice as many containers. Then they are also deeper. The Emma Maersk has a capacity of 15,500 TEUs and is just two meters
shorter and two meters narrower than the Maersk-McKinney Møller. But the latter carries 18% more cargo at 18,000+ TEUs. Therefore, the distance and time required to travel to farthest container has increased but the number of cranes that can be operated on a single vessel have not gone up proportionately. With current lengths of ULVCs the maximum cranes that can be safely and conveniently deployed on a ship is eight while most terminals deploy six. So the logical solution is to increase the speed of the cranes and subsequent moves per hour. But here too we face limitations of below-crane movements of straddle carriers and tractors whose operations are more complex and time consuming. The peak performance capacity of modern cranes is about 45 moves per hour but due to constraints of the interface between the crane and the yard a “good-average” per crane these days is about 25 mph. Many industry leaders are proposing a more holistic approach to improve efficiency of terminals. Simply getting faster stronger machines is not going to work any more. We have left behind the age of simple mechanisation and have arrived in a time where effective coordination and optimization of overall operations are now the most critical elements. And the technology of smart sensors and intelligent software is readily available today. And it’s not just the terminal operations. Even shipping lines have to
terminaloperator.com
Terminal Planning, Design & Construction
a more holistic approach to improve efficiency of terminals is required. Simply getting faster stronger machines is not going to work any more. We have left behind the age of simple mechanisation. do their bit by planning their stowage in such a way that ship to shore cranes can reach containers faster and better. Furthermore, shipping lines can choose their terminals and organize rotations in closer coordination with ports so dwell times may be reduced further. By the end of 2015 the world’s fully cellular containership fleet consisted of approximately 5,200 vessels with an aggregate capacity of 19.8 million TEUs. Another couple of million TEUs can be added to the total when container slots from general cargo ships are included in the calculation. To meet the present challenge terminals across the world will have to improve operations by deploying better hardware while at the same time modernizing and optimizing more and more of their operating systems and methodologies. l
terminaloperator.com
Quarterly — 4th Edition 2015
33
Terminal Planning, Design & Construction - gulftainer
Khorfakkan Container Terminal exceeds 4,000 moves in a 12-hour shift Gulftainer, the privately owned, independent terminal operating and logistics company, has achieved yet another milestone, as it’s Khorfakkan Container Terminal (KCT), completed 4,073 container moves in a single 12-hour shift. This achievement has defied industry belief that the 6,000 moves in a 24-hour period target for shipping lines since the inception of the mega-ship is not possible.
T
he full operation consisted of an 8,288 container or 13,005 TEUs exchange, inclusive of 10-high deck stowage, on the call of the CMA-CGM Georg Forster, one of the French Shipping Line’s 18,000 TEU capacity vessels. The terminal staff completed the operation in only 36.4 hours, resulting in Gross Moves Per Hour (GMPH) of 227.7 and Berth Moves per Hour (BMPH) of 223.4, allowing the vessel to sail ahead of its pro-forma schedule with a grand total of 15,765 TEUs on board, bound for its next port of call - Yantian, China. Daniel Wright, Gulftainer’s Terminal Manager at KCT said: “KCT is renowned for its high productivity levels, and has demonstrated its ability to handle mega-vessels. This new milestone further establishes its
36
Quarterly — 4th Edition 2015
credentials as mega-ship ready, and underlines the skills of the staff at the terminal, who are ready to complete such a large call in record time.” Commenting on the move, Nicolas Sartini, Group Senior Vice President of CMA-CGM Marseille, said: “We are always impressed how KCT is able to constantly improve its productivity. This further validates our choice to select Khorfakkan as our main hub for cargo moving to the Middle East from Europe and Asia.” Earlier this year, KCT set a new record for the handling of the largest single unloading and
terminaloperator.com
Terminal Planning, Design & Construction - gulftainer
loading of a single vessel call at its Khorfakkan Container Terminal (KCT), at 19,561 TEUs, and it recently received the ‘Shipping Port of the Year’ honour at the 2015 Supply Chain & Transport Awards (SCATA). Due to its unique location, the terminal has been one of the most important transhipment hubs for the Arabian Gulf, the Indian Sub-continent, the Gulf of Oman and the East African markets. This new impressive milestone further demonstrates the terminal’s ability to accommodate these large container volumes, as well as continuously improving on already high standards of operational efficiency and customer service that have recently won Gulftainer the prestigious ‘Port Operator Award’ at the Lloyd’s List Middle East & Indian Subcontinent Awards 2015. 1 million TEUs milestone reached at Umm Qasr Gulftainer has reached another significant milestone with a combined throughput of 1 million TEUs at its terminals in Umm Qasr Port in Iraq, since they were commissioned by the Sharjah based company in 2010. The one-millionth unit was discharged from the MSC Didem, a regular caller at the Iraq Project Terminal. Gulftainer Iraq has experienced phenomenal growth and a compound annual growth rate (CAGR) of some 100.78%, since beginning operations from a standing start in August 2010. Rob Smith, Operations Manager, Gulftainer Iraq, said: “Umm Qasr Port has always been and will remain the dominant container hub in Iraq, due to its strategic location on the Arabian Gulf. We are uniquely positioned, having terminals in both the North and South Ports in Umm Qasr, each of them with strong selling points that have helped us achieve a steady growth since we started operations in the country.” Part of a $150 million investment
terminaloperator.com
Due to its unique location, the terminal has been one of the most important transhipment hubs for the Arabian Gulf, the Indian Subcontinent, the Gulf of Oman and the East African markets. This new impressive milestone further demonstrates the terminal’s ability to accommodate these large container volumes… programme made in the country by Gulftainer, the Iraq Container Terminal (ICT) is the largest terminal within Umm Qasr port and the only facility that has its own entry and exit points, along with a customs office and relevant facilities. It is also the only terminal in the North Port to be secured by its own professionally trained guards protecting the facilities, people, cargo and equipment at all times. Gulftainer’s Iraq Project Terminal (IPT) facility opened for business in August 2010 at Umm Qasr South Port, and has rapidly grown since inception. The facility has been backed by significant investment in assets that includes Mobile Harbour
Cranes, supporting container-handling equipment and paved, secure storage areas and is the only terminal in the South Port to be secured by its own professionally trained guards protecting the facility and assets at all times. Today, IPT is already in full compliance with, and supports the requirements of Iraq’s fastdeveloping Oil and Gas and Energy sectors. Smith explained: “We have made substantial investment, and continue to do so, in order to improve the operational capacity and productivity of both our terminals in Umm Qasr, as well as at Umm Qasr Logistics Centre (UQLC), a unique facility within Iraq, providing a direct bonded connection with the North Port through a bonded road. Customs clearance can be carried out in UQLC, also known locally as the dry port, and to date the facility has handled substantial amounts of cargo destined for the region and nearby oilfields. Most recently the facility handled two of the largest pieces of cargo ever to transit Iraq being two bullet tanks of more than 200 tons and measuring some 49 metres long and 8 metres wide. UQLC was the start of their marathon journey of some 600 kilometres across Iraq.”
Quarterly — 4th Edition 2015
37
Terminal Planning, Design & Construction - gulftainer
Gulftainer’s support of SICFF 2015 reflected its strong Community Social Responsibility (CSR) initiatives which support numerous non-governmental organisations based in the Emirate.
Besides its terminals in Iraq, Gulftainer’s current portfolio covers UAE operations in Khorfakkan Port and Port Khalid in Sharjah as well as activities at Recife in Brazil, along with Jeddah and Jubail in Saudi Arabia. The company marked a significant milestone in 2014 with its expansion to the US by signing a long-term agreement to operate the container and multi-cargo terminal at Port Canaveral in Florida. The terminal was officially opened, beginning operations in June 2015. Gulftainer is also expecting its terminal in Tripoli Port, Lebanon to become operational by the end of 2015. Sharjah International Children’s Film Festival (SICFF) Closer to home as part of its CSR efforts Gulftainer has supported the Middle East’s dedicated first-of-its-kind film festival since its inception, in an effort to promote the media and arts among children and young people. The third edition of Sharjah International Children’s Film Festival (SICFF) was inaugurated by His Highness Sheikh Dr. Sultan bin Mohammed Al Qasimi and his wife, Her Highness Sheikha Jawaher Bint Mohammed Al Qasimi, who is also the patron of the festival.
38
Quarterly — 4th Edition 2015
With a focus on strengthening bonds with the local arts and youth community, Gulftainer’s support of SICFF 2015 reflected its strong Community Social Responsibility (CSR) initiatives which support numerous nongovernmental organisations based in the Emirate. Peter Richards, Managing Director of Gulftainer, said: “The Sharjah International Children’s Film Festival is dedicated to creating awareness of the arts to children in order to nurture their creativity and showcase the best in filmmaking for children. SICFF has proved to be an inspiring platform that encourages and supports all aspects of imaginative film making for and by children. We are honoured to have had the opportunity to support this educational venture that underlines Sharjah’s reputation as a cultural hub, since its inception.” The screening of 175 films, selected from 286 films submitted from nearly 50 countries, was held at the Novo Cinemas in the Sahara Centre, and at the Al Jawaher Reception and Convention Centre. In addition, outdoor screenings were organised in seven towns outside Sharjah. The festival this year attracted international and local visitors from across the UAE and covered short and animated films, features, fiction movies and documentaries that touched a wide variety of topics. Gulftainer operates the Khorfakkan Container Terminal and the Sharjah Container Terminal at Port Khalid, the first dedicated container terminal in the Arab world, on behalf of the Sharjah Port Authority. Its current portfolio also covers operations at Umm Qasr Port in Iraq, Recife in Brazil, Jeddah and Jubail in Saudi Arabia; and in the USA, where the company recently began operations at the Canaveral Cargo Terminal in Florida. Gulftainer is also expecting to commence operations in Tripoli Port in Lebanon by the end of 2015. Currently handling an annual throughput of 6.5 million TEUs, Gulftainer aims to expand its global portfolio to reach 35 terminals across five continents, in order to support our ambitious target to triple business volume worldwide in the next five years with more than 10,000 vessel calls, and triple container handling to 18 million TEUs. l
terminaloperator.com
SOLID PORT SOLUTIONS provides consultancy services to deliver your port project on time. Our team of experts will assist you in all project phases from the Initial Project Study until the Final Acceptance. Our knowledge of the latest technologies and operational processes will help you to improve the efficiency at your terminal and to be ready for the future.
SOLID PORT SOLUTIONS THE PRACTICAL AND PROFESSIONAL APPROACH How to contact Solid Port Solutions: Address Level 14, Boulevard Plaza Tower 1 Sheikh Mohammed bin Rashid Boulevard, Downtown Dubai PO Box 334155, Dubai, UAE Email info@solidportsolutions.com Tel +971 4 368 0885 Mobile +971 50 621 4686 Fax +971 4 455 8556 Website www.solidportsolutions.com
saudi ports
Saudi Ports and Terminals in the Spotlight King Abdullah Port was front-and-center at this year’s TOC Middle East, the region’s top gathering for the shipping, ports and terminal industry. Meanwhile, Jeddah Islamic Port (JIP) is also on the way to becoming a major maritime hub on the Red Sea.
C
onscious of the need to provide top class commercial facilities, Saudi Ports Authority embarked on a privatization program, working closely with private sector investors and operators to ready the country’s port sector for today’s shipping landscape. The Saudi government has also announced plans to invest some $30bn in upgrading port and other related logistics facilities to enhance the capacity and competitiveness of the Kingdom’s ports as more and more ultra large container vessels (ULCVs) cascade onto maritime trades and container shipping lines group together in more powerful alliances.
40
Quarterly — 4th Edition 2015
Jeddah Islamic Port (JIP) is on the way to becoming a major maritime hub on the Red Sea. The aim is to capture a larger port share of the major Asia-Europe container trades as well as establish bestin-class import-export facilities for Saudi Arabia’s rapidly growing container volumes as the economy diversifies from its historical base of primary commodities towards more manufactured goods. Red Sea Gateway Terminal (RSGT), which opened in 2009, has added an additional 1.8m TEU of capacity, and regularly handles calls by ULCVs. Two other large terminals are also in Jeddah Islamic Port. Dubai’s DP World operates the South Container Terminal and while
terminaloperator.com
saudi ports
Sharjah-based Gulftainer operates the port’s largest container facility Northern Container Terminal (NCT). NCT achieved throughput of 1.9 million TEU in 2014. Spread over an area of over 1.1 million m2, NCT has seven operating berths on a quay length of 1,700m with maximum operating alongside draft of 15.2m. With 11 quay cranes, the terminal is also equipped with an advanced IT system and support infrastructure that have assisted in continuously improving its productivity levels. The terminal also follows several innovative operational techniques which include the twin lift, tandem lift and dual cycle operations, which are aimed to improve the average crane, berth and yard productivity levels. In addition to NCT, Gulftainer operates terminal in Jubail on Saudi Arabia’s east coast. JIP faces competition, however, from King Abdullah Port (KAP), 100km to the north of Jeddah. KAP is the first privately owned and funded Saudi port. Current capacity of the port is 3 million TEU. But the port masterplan projects capacity of 20 million TEU by 2025. In October 2015, the largest vessel in the world, the 19,224 TEU MSC Maya docked at KAP, making it the latest in regular ULCV calls at the port. King Abdullah Port was front-and-center at this year’s event, the region and world’s top gathering for the shipping, ports and terminal industry. The importance of King Abdullah Port was highlighted by its Managing Director Abdullah Hameedadin, who stressed that the port constitutes a new main gateway to Saudi Arabia, a new shipping center for the world and a catalyst for domestic economic growth, at the TOC ME event here. Hameedadin also said, “King Abdullah Port is a fully privately developed, financed and operated project, the fruits of a new government outlook that stresses the importance of diversifying the Saudi economy and encourages private participation in the Kingdom’s mega-projects.”
terminaloperator.com
The region’s newest port, King Abdullah Port, is the major sponsor of the conference and Hameedadin was part of the opening panel that discussed the current status of Saudi ports and the future impact that they will exert on the regional shipping industry. “This is very important conference and one that we are proud to be part of it. This is the place to meet up with regional officials and strategic partners and also global ones, as well,” commented Hameedadin. “It is a fantastic forum to share information about the state-of-the-art features and economic advantages offered by King Abdullah Port. Our success is demonstrated by the steadily increasing activity at the port. That we have handled 1.3 million TEUs in only our second year of operation is a true mark of our early success.” Hameedadin joined other regional shipping executives on a panel called “The Middle East Shipping & Ports Sector: Outlook, Market Analysis & Market Trends” that dealt with the question of how best to manage this vital and rapidly growing economic sector, taking current economic challenges into consideration.
These cranes will not only add to our current fleet of 20 but their greater height and reach will make them capable of handling the largest carriers crossing the canal today and in the near future too.
As part of its vision, Hameedadin stressed that King Abdullah Port as a new main gateway to the Kingdom, a new shipping center for the world, would prove to be a catalyst for domestic economic growth. The port’s strategic physical location on the outskirts of King Abdullah Economic City (KAEC) on the Red Sea coast, its to-be-constructed trade rail (Saudi Land-bridge) and road connections and its state-of-the-art transfer and huge warehousing facilities have attracted significant attention globally and allowed the port to make its mark regionally. King Abdullah Economic City (KAEC) has signed a contract with Mikati Contracting Est. to build a unique Logistics Park located in Phase B1 of the Industrial Valley. The SAR26.6 million facility, comprising prefabricated light-manufacturing and warehousing units, will be completed by the third quarter of 2016. The Industrial Valley Logistics Park is intended to simplify the process for new businesses setting up in the Industrial Valley. The plug and play facility allows companies to establish their operations quickly, saving time and money in setup costs and accelerating the start of commercial activities. Strategically located with direct access to King Abdullah Port, the Logistics Park comprises twelve interconnected units with a total gross plot area of more than 30,000 square meters. "The Industrial Valley at KAEC is rapidly establishing itself as the key manufacturing and logistics hub in the region," said Mr. Fahd AlRasheed, Managing Director and CEO of KAEC. “The Logistics Park adds a new dimension to the wide range of services offered by the Industrial
Quarterly — 4th Edition 2015
41
saudi ports
Valley and we are already experiencing high demand for reservations." Each of the units in the Logistics Park offers 1,026 sqm of open space that can be utilized for a wide range of light manufacturing activities or for warehousing. Internally, each unit is 8-meters in height and includes a 100 sqm mezzanine floor. The park is adjacent to King Abdullah Port and connected to the Industrial Valley's advanced infrastructure including comprehensive water and power grids, sewage, telecommunications, storm runoff and road networks. The logistics cluster is the largest component of the Industrial Valley. 31 shipping and logistics companies are already invested in the development, which has attracted more than 100 national and international companies across the logistics,FMCG, plastics, building materials, pharmaceutical and automotive sectors. "Phase 3 of the Industrial
42
Quarterly — 4th Edition 2015
King Abdullah Economic City (KAEC) has signed a contract with Mikati Contracting Est. to build a unique Logistics Park located in Phase B1 of the Industrial Valley. The SAR26.6 million facility, comprising prefabricated light-manufacturing and warehousing units, will be completed by the third quarter of 2016. Valley continues to attract key anchor tenants drawn by our strong value proposition, our excellent strategic location and our complete range of facilities and housing solutions," said Rayan Qutub, CEO of the Industrial Valley at KAEC."KAEC's geographic location gives it a strategic reach to 250 million consumers in the Arab world and East Africa, making the city the location of choice for foreign and domestic investment." In other port developments Japanese shipping company NYK has agreed to establish a RORO terminal at King Abdullah port on the Red Sea. The company has signed a joint-venture (JV) agreement with Ports Development (PDC) in relation to the above development. The JV will be the first automotive logistics base for NYK in the Middle East. Named KAP RORO Terminal, the facility is planned to commence full operations by the third quarter of 2016.
“It is expected to have the capacity to handle 600,000 units a year as a gate port, to serve the increasing demand in Middle East.” It is expected to have the capacity to handle 600,000 units a year as a gate port, to serve the increasing demand in Middle East. The project is part of NYK’s plan to expand the reach of its global operations, and provide customer-oriented service based on its operational expertise. NYK will continue its efforts to improve operational efficiency and safety management as part of its ‘More Than Shipping 2018’ medium-term management plan, the company said. Owned and developed by PDC, KAP is a private port within King Abdullah Economic City located 88km to the north of Jeddah. PDC is a JV between Saudi Arabian conglomerate Huta Marine Works and Emaar, the Economic City in Saudi Arabia. l
terminaloperator.com
iCmore
™
stop guessing and start seeing
More and more vehicles to screen, but which ones contain suspicious cargo? Our new iCmore cargo inspection software can automatically show you. iCmore automatically focusses and highlights areas of concern; removing the guess work and speeding up the whole analysis process. Reduce illicit trafficking and revenue risks from commercial fraud activities with iCmore. Finally, you can see more with iCmore. For further information on the product or sales, please visit www.smithsdetection.com or contact globalsales@smithsdetection.com iCmore is a trademark of Smiths Detection Group Ltd. iCmore is only available on our HCV cargo inspection systems http://www.smithsdetection.com /index.php/en/products-solutions/cargo-vehicle-inspection.html
Terminal Planning, Design & Construction
Adani to expand Mundra Terminal. Kandla to get new terminal operator Adani Ports & SEZ Ltd, part of the Adani group, is expanding its flagship Adani International Container Terminal (AICTPL) at Mundra port.
A
ICTPL is a 50:50 joint venture with Terminal Investment Ltd, an arm of Mediterranean Shipping Company (MSC). Adani Ports said the aim is to create a transhipment hub for West Asia, South Asia and India. The company said following the completion, AICTPL would emerge as the company’s largest container terminal with a total quay length of 1,460 m and cargo-handling capacity of 3.1 mln TEUs. “We are pleased to take our partnership with Mediterranean Shipping Company to the next level. With this expansion, Mundra will become the
44
Quarterly — 4th Edition 2015
largest container port in India with a cumulative capacity of 6.6 million TEU and will help in achieving our vision of handling 200 million metric tons of annual cargo by 2020,” Karan Adani, Chief Executive Officer of Adani Ports & SEZ Ltd, said. The terminal will be equipped with 15 super post panamax quay cranes capable of handling 18,000 TEU container vessels. It is expected to be commissioned within 15 months. On another front Adani Ports is scheduled to open another joint venture terminal – this time with CMA CGM – in Mundra this May.
terminaloperator.com
Terminal Planning, Design & Construction
Under the agreement, Adani International Container Terminal (AICT) will be extended in order to boost its capacity from 1.5 million to 3.1 million TEU. Diego Aponte, CEO and President of MSC, said: “We are pleased to partner with Adani on this terminal development and the expansion of AICT. We are confident that Mundra will become a major transshipment hub within South Asia.” A joint-statement said: “The expansion will also exclusively position Mundra as the largest container port in the country with four state-of-the-art container terminals.” Mundra Port, about 300 nautical miles from Jawaharlal Nehru Port Trust, includes portowned Adani Mundra Container Terminal and DP World-managed Mundra International Container Terminal. The private port has shown strong growth over the past few years, aided in part by diversions from JNPT caused by delays and disruptions. In fiscal 2013-14, Mundra outpaced its closest public rival Kandla to become the largest commercial port in the country, with a record throughput of 101 million tons. Port statistics compiled by JOC. com show Mundra expanded its first fiscal half total throughput by 10 per cent year-over-year to 1.48 million TEUs. Though the growth rate was much slower than the same period last fiscal year, when Mundra recorded a 29 per cent yearover-year volume gain, it was still significant in the wake of sluggish global demand.
terminaloperator.com
“The expansion will also exclusively position Mundra as the largest container port in the country with four state-of-the-art container terminals.” Kandla Port to get upgrades, new container terminal operator Mumbai-based J.M. Baxi Group is reportedly the final bidder for a public-privatepartnership contract to upgrade, operate and maintain existing container terminal infrastructure at the Port of Kandla, a major, state-owned port complex on India’s west coast. The group, through its subsidiary International Cargo Terminals and Infrastructure Pvt. Ltd., offered a revenue share of 10.44 per cent from the revamped facility as annual royalty to the landlord port. The port authority developed the containerhandling facility at berths 11 and 12 through a 30-year concession awarded to ABG Kandla Container Terminal, a joint venture between domestic infrastructure firm ABG Infralogistics and Singapore’s PSA International, in June 2006. ABG held a 51 per cent stake in the endeavor. The port trust is expected to issue an official statement on awarding of the new contract shortly. The terminal, comprising a quay length of 1,788 feet and an annual capacity of 600,000 twenty-foot-equivalent units, began operations
in 2008. But after three years of operation and a long, hard struggle to grow throughput levels, the port trust issued a termination notice to the consortium for its failure to meet annual, minimum, guaranteed volumes in line with the concession contract. As a result, the port administration took over the privately-built facility in 2013 after a legal battle with the concessionaire. Port statistics compiled by JOC.com show Kandla handled 137,000 TEUs in fiscal 2008-09; 147,000 TEUs in 2009-10; 160,000 TEUs in 2010-11; 168,000 TEUs in 2011-12 and 118,000 TEUs in 2012-13. The upgrades are expected to cost Rs. 263 crores (about $40 million), according to the Indian Ministry of Shipping. The new contract will allow Kandla to resume container-handling activity, but the private operator is likely to face an uphill task to lure container lines in the wake of fierce competition from nearby minor, modern terminals such as Mundra and Pipavav. J.M. Baxi Group also operates a container terminal at the eastern Port of Visakhapatnam via a joint venture with DP World. l
Quarterly — 4th Edition 2015
45
DP WORLD
Jebel Ali welcomes mega ship Magleby Maersk DP World has received the largest containership to call at its flagship Port of Jebel Ali, the Magleby Maersk, which is on its maiden visit to the region.
T
he management and operations team at Jebel Ali rolled out a welldrilled operation to welcome, berth and service the mammoth liner with the clockwork-like precision that has made the container port the most productive in the world. The 18,270 TEU capacity vessel was welcomed by Mohammed Al Muallem, Senior Vice President and Managing Director of DP World UAE Region and officials from the Port of Jebel Ali who were also joined by Dubai-based Maersk Line top officials, including Mark Rosenberg, Head of Procurement and Contract Management at Maersk Line. A commemorative plaque marking the occasion was presented on behalf of DP World to Captain Maagaard, Master of Magleby Maersk. Jebel Ali is one of the very few ports in the Middle East equipped to receive containerships of the size of Magleby Maersk, a Triple-E class vessel with an overall length of 399.2 metres, which is the equivalent to four football pitches. The Magleby Maersk moulded beam is 59.00 metres wide and the ship has a maximum draft of 16.50 metres. Maersk Line operates the carrier on its 2M Europe-Asia route. Mohammed Al Muallem said: “Receiving and handling the Triple-E Magleby Maersk is another milestone for DP World and the Port of Jebel Ali, which is capable of handling the world’s biggest container ships, delivering efficiency that simply can’t be achieved elsewhere. “The port is future proofed to handle developments in the industry and was inspired by the need for excellence envisioned by Sheikh
46
Quarterly — 4th Edition 2015
Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. “This event reinforces Dubai’s and the port’s role as a regional gateway for the new generation of mega liner vessels. I thank Maersk Line for their support and assure them that Jebel Ali will continue to deliver the best and safest port services in the region.” Mark Rosenberg said: “Jebel Ali is a port of priority for Maersk Line vessels visiting this region. We chose DP World’s flagship port for the maiden visit by Magleby Maersk because of the exceptional operational efficiencies offered here.” Jebel Ali is equipped with the most sophisticated ship-to-shore semi-automated cranes that are operated remotely from the port’s operations building. With the completion of the 4 million TEU Terminal 3, the port will be able to handle 10 mega ships simultaneously. DP World recently started the construction work on the brand new Container Terminal 4 which will deliver new capacity of 3.1 million TEUs in Phase 1 by 2018, taking the port’s total capacity to 22.1 million TEUs. In the first 9 months of 2015 DP World Limited handled 46.5 million TEUs across its global portfolio of container terminals during the first nine months of 2015, with gross container volumes growing by 3.2% on a like-for- like basis. On a reported basis gross volumes grew by 3.7%. Growth in the nine months was largely driven by Europe and UAE terminals. The UAE handled 11.9 million TEUs, representing growth of 4.0%.
terminaloperator.com
DP WORLD
Mohammed Sharaf Retires DP World has announced the retirement of its group Chief Executive Officer, Mohammed Sharaf, following a 23-year career with the company, including 11 years in his current post. The company said it had begun the search for a successor, and that chairman Sultan bin Sulayem would take over Mr Sharaf’s role until the right candidate had been identified. Mr Sharaf said: “I would like to thank His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Prime Minister, vice president of the UAE and ruler of Dubai, Sultan bin Sulayem, chairman of DP World and the DP World group for giving me the opportunity to be part of the success story of DP World. It has been a very exciting journey and I am confident that the team will continue taking DP World to even greater heights.” Sultan Sulayem added: “I would like to thank Mohammed for his years of dedication and service to the Group. He has been an invaluable part of the success we have achieved and I wish him well for his retirement.” A key plank in the government of Dubai’s strategy to diversify away a hydrocarbon-based economy, the transformation of DP World from a single portoperating company in Dubai to joining the select group of major international terminal operators that dominate the port industry has been one of the most compelling narratives of container shipping’s chapter in the history of globalisation, and Mr Sharaf was at the heart of that expansion. Mr Sharaf began his career working at New York’s Howland Hook terminal before joining Dubai Ports Authority in 1993. In 2003, he became managing director of its fledgling international operations and was named chief executive in 2005 after the international and domestic arms of the business were
terminaloperator.com
“Our new developments in Rotterdam (Netherlands) and Nhava Sheva (India) are now operational whilst Yarimca (Turkey) and the second phase of terminal three (T3) Jebel Ali (UAE) are due to come online in the near future. Additionally, we closed the acquisition of Fairview Terminal in Canada in August 2015. We look forward to this new capacity aiding volume growth in 2016,” Sultan Ahmed Bin Sulayem. integrated to become DP World. He subsequently managed the acquisitions of firstly CSX World Terminals in 2005, and then of the P&O Group the following year, steering the company through what was an exceptionally difficult time due to the politically sensitive nature of the purchase in the United States. Russian Investment DP World has announced that it is launching a new joint venture (JV) with state-owned Russian investment fund to upgrade ports and logistics infrastructure in Russia. DP World said in a statement that the new company is expected to invest over time a total of US$2 billion in upgrading Russian ports as well as introduce international best practices in operations to improve trade connectivity at the advantage of Russian businesses and consumers. On the sidelines of the World Economic Forum in Davos, Sultan Ahmed bin Sulayem, DP World Chairman and Kirill Dmitriev, Russian Direct Investment Fund CEO, signed a document determining the key terms and principles of the joint venture in which DP World will own an 80% shareholding with the remaining 20% held by RDIF.
Bin Sulayem said, “Russia has always been an attractive origin and destination market for us with huge long term growth prospects. This joint venture allows DP World and RDIF to build on each other’s strengths in bringing economic prosperity to Russia.” “This JV will enable us to share with Russia our experience as a global port operator and trade enabler and to further enhance the already established strong relations between our countries,” he added. Dmitriev said, “DP World’s global expertise and its proven and tested ability to drive trade growth and develop efficient infrastructure, make it the ideal choice to support the long-term goals for the development of Russia. We are glad to welcome DP World in Russia and look forward to creating an effective partnership which will benefit both Russia and UAE.” Maersk SAMBA To COME TO LONDON GATEWAY. DP World London Gateway (LG) has bagged another major service with Maersk Line’s Samba (North Europe/east coast South America) operation. The service is said to begin in late March and it will be the Danish carrier’s second weekly string calling at the port. Maersk is a partner in the
Quarterly — 4th Edition 2015
47
DP WORLD
Europe/South Africa SAECS service which was LG’s launch customer. Poor weather and congestion problems at Felixstowe have caused Maersk to choose LG instead. This makes LG Maersk’s and MSC’s main UK port of call for the Far East trade. United Arab Shipping Company has also started visiting LG with its 19,000 TEU-class units. The new service means that LG will be handling eight services a week and more than a dozen individual carriers. Samba uses eight ships loading approximately 8,600 TEU. While the ramp up in cargo volumes has been slow, there are signs that momentum is building. Meanwhile, the port’s first phase development programme continues. LG is scheduled to open its third berth in August 2016 and this will raise its throughput capacity to 2.2M TEU. It will be the only port in the UK capable of accommodating three ULCVs simultaneously. UPS AT LONDON GATEWAY DP World London Gateway and UPS today announced plans to build a new 32,000 square meter package sorting and delivery facility at the logistics site in the south east of England. At close to £120 Million, the project is one of UPS’s largest infrastructure investments outside of the United States of America. HE Sultan Ahmed Bin Sulayem, Chairman of DP World, said: “We congratulate UPS on this strategic development. By using DP World London Gateway Park and Port, UPS will have a fast ‘global conveyor-belt’ directly connected to their own worldwide network.
48
As the threat of cyber security looks set to rise in future, port operators will become a likely target for attacks and automation increases the damage that such an attack could bring. UPS’s hub will also provide distribution solutions to other logistics park occupiers. This combination of world class services will be a unique offering for the UK and Europe.” The facility, is expected to be completed in the summer of 2017. It will act as a UK hub and distribution center for the local area as well as a key gateway to UPS’s global transportation network. Once completed, it will be able to process approximately 30,000 packages per hour, with room for further expansion. DP World Yarimca. DP World Yarımca, Turkey’s newest deep-sea container terminal, situated in the Körfez district of Kocaeli province has started commercial operations by welcoming it’s first vessel - the 224 meter long and 33 meter wide container ship Maersk Bulan. Once operations had completed and the vessel departed, a second vessel, the Georg Maersk arrived in the early hours of Saturday 12th of December. At 367 metres long and 43 metres wide, Georg Maersk is one of the largest ships to visit any port in Turkey and called at DP World Yarımca to load and unload its cargo. DP World Yarımca CEO Nichola Silveira said: “We are delighted to have welcomed the first two commercial vessels that have called at the newest container terminal in the DP World family.”
Quarterly — 4th Edition 2015
Looking to the future A new report says that although the outlook looks bleak for large scale port automation investments, operators can still take advantage of opportunities offered by innovative Information Communications Technology (ICT). The report by the by the Economist Intelligence Unit at DP World said that rather than keep up with the larger terminals, non-greenfield port terminals should rather delay some major investments until capital costs come down and the technology becomes more widely used. Investment also needs to be ‘smart’ so any new machine will need to be interoperable with others used across the supply chain. As the threat of cyber security looks set to rise in future, port operators will become a likely target for attacks and automation increases the damage that such an attack could bring. Therefore, port operators will need to work with private sectors and governments to share information. The report recognizes that government policy may be the driver of some innovations, especially in the sector of autonomous vehicles and drones. For ports and logistics firms, the rise of these ICT innovations will make some jobs redundant, but will also lead to new positions that will require new types of skills including applied mathematics, statistics, data analytics and more. But all will need to ensure that they work in partnership. l
terminaloperator.com
No lines. No problem. Cavotec MoorMaster™.
Cavotec MoorMaster™ is a vacuum-based automated mooring technology that eliminates the need for conventional mooring lines. Remote controlled vacuum pads recessed in, or mounted on, the quayside, moor and release vessels in seconds.
Cavotec is a global engineering group that enables industries worldwide to improve productivity, safety and sustainability. Cavotec delivers power transmission,
MoorMaster™ dramatically improves safety and operational efficiency, and enables ports to make infrastructure savings.
distribution and control technologies that form the link between fixed and mobile equipment in the Ports & Maritime,
Operated by a single person either on board ship, or on land, the technology also reduces the use of tugs thereby improving operational efficiency and reducing environmental impact. Constant system monitoring ensures that MoorMaster™ automatically holds vessels at a pre-determined distance from the quayside. The technology is used by a growing number of operators worldwide, and has performed more than 115,000 mooring operations at ferry, bulk handling, Ro-Ro, container and lock applications around the world.
cavotec.com info@cavotec.com
Airports, Mining & Tunnelling and General Industry sectors. In addition to MoorMaster™, Cavotec’s technologies for ports and terminals also include Alternative Maritime Power systems, motorised and spring driven cable reels, radio remote controls, Panzerbelt cable protection systems and crane controllers.
Inspired Engineering
abu dhabi ports
Abu Dhabi Ports Sets a new Annual Cargo Record Abu Dhabi Ports has set a new annual cargo-volume record in 2015, surpassing its previous record set in 2014.
A
bu Dhabi’s Khalifa Port was recently crowned ‘Port of the Year’ for the second consecutive year at the Maritime Standard Awards. It is currently the fastest growing port in the Middle East. Abu Dhabi Ports saw a significant increase in volumes during the year in all major sectors including container bulk cargo, as well as increased investments in Khalifa Industrial Zone. Khalifa Port Container Terminal (KPT), which is operated by Abu Dhabi Terminals – a subsidiary of Abu Dhabi Ports – handled 32% more containers. The terminal moved more than 1.5 million TEU, up from more than 1.1 million TEU in 2014. Roll-on-roll-off (RORO) traffic had a 27% upturn, with all RORO operations transferred to Khalifa Port from Zayed Port in 2015 to meet the rising demand. Better yard and terminal facilities, and services at Khalifa Port have contributed to the upsurge in volumes. At Khalifa Industrial Zone (Kizad), Abu Dhabi Ports saw a total of 21 Standard Musataha Agreements (SMAs) signed in 2015 with national and international investors, and three plot-extension SMAs with existing investors.
50
Quarterly — 4th Edition 2015
Memorandums of Understanding (MOUs) were signed with Industrial Development Bureau (IDB) of Abu Dhabi’s Department of Economic Development (DED), and SACE Group–Italian Export Credit Agency, to further attract investments into the integrated trade and industrial hub of Abu Dhabi. Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, said: “Abu Dhabi Ports’ business focus is to deliver value to customers by supporting their thriving businesses through its integrated services and offerings. We are proud to be in a position to support the economic growth being witnessed in the Emirate and intend to continuously invest in enabling the nation’s maritime trade and industrial development.” Al Shamisi concluded: “With the support of our wise leadership and dedicated efforts of our employees, stakeholders and partners; we are able to meet the changing requirements of our customers.” In other developments, Abu Dhabi Ports has completed extensive redevelopment work at Al Mirfa Port and officially opened the new Abu Dhabi Cruise Terminal at Zayed Port. This extensive redevelopment work is part of the operator’s master plan to redevelop the Khalifa Industrial Zone and help diversify the Emirati economy to better serve the community.
terminaloperator.com
abu dhabi ports
“The infrastructural upgrade, newly established facilities and improved standards of services have now positioned Al Mirfa Port to become the first port dedicated to supporting the fishing industry and community in the emirate,” said H.E. Dr Sultan Ahmed Al Jaber, Minister of State and Chairman of Abu Dhabi Ports. Work has included rock revetment to protect the port berths and the construction of a breakwater to guard the port’s basin from the strong water currents. Floating pontoons have also been created to accommodate 140 fishing boats and leisure ferries. Zayed Port’s new permanent terminal meanwhile, is a major landmark for cruise tourism in the Arabian Gulf and aims to serve as a major facilitator in boosting the cruise tourism sector in the Emirate. The terminal is projected to achieve a fivefold increase in the number of passengers and ships during the 2015 to 2016 season in comparison to the first cruise season of 2006 to 2007. Growth projections are for more than 300,000 passengers by the 2019 to 2020 season. Away from these two ports, the port operator also operates the ports of Delma, Mugharrag and Al Sila and it has an investment plan for each. Mugharrag Port will be undergoing complete redevelopment and Delma Port will be upgraded to include a ferry terminal and marina with a 160 boat capacity. Meanwhile, initial trial operations of the Port Community System, ‘Maqta Gateway’ has begun following the successful completion of Stage1 of the overall project development. Maqta Gateway, the first purpose-built Port Community System (PCS) in the Emirates, now offers shipping lines, shipping agents, customs agents, terminal operators and other government agencies a single point-of-access and real-time information across a wide range of services. Maqta Gateway, designed in line with international standards, can be accessed via
terminaloperator.com
“Our goal towards the Emirate’s economic diversification goes beyond supporting the mandate. At Abu Dhabi Ports, we strive to constantly innovate and employ new technologies to become key enablers of diversification by streamlining maritime trade in the Emirate. With our esteemed leadership’s support and under their guidance we are able to deliver on these commitments.” any online device offering its users an optimal experience through enhanced business processes and greater transparency. Abu Dhabi Ports, with the support from its partners, has been able to launch trial operations of Stage1 in record time. Employing the necessary systems and implementing an innovative model for managing and streamlining port services was driven by the declaration of 2015 as the ’Year of Innovation in the UAE‘. “Maqta Gateway will play a prominent role in facilitating the growing import and export activities, positioning Abu Dhabi as a major business hub in the region,” said Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports. “Our goal towards the Emirate’s economic diversification goes beyond supporting the mandate. At Abu Dhabi Ports, we strive to constantly innovate and employ new technologies to become key enablers of diversification by streamlining maritime trade in the Emirate. With our esteemed leadership’s support and under their guidance we are able to deliver on these commitments.” The role of Maqta Gateway falls within the company’s operational priorities in identifying and developing comprehensive solutions to enable
maritime trade and business, “Creating unique and simple experiences in the employment of modern technology is essential when introducing new ways of doing business,” concluded Al Shamisi. Initial operations through Maqta Gateway commenced earlier this month (December 16) marking the start of a new era for Abu Dhabi Ports’ customers. Shipping agents and shipping lines, operating vessels through Abu Dhabi Ports’ flagship Khalifa Port, may begin utilizing the new system as part of the initial operational stage. All vessel related activities can be made through Maqta Gateway with continuous status updates on vessel and cargo movements through the port. In addition, the shipping agents and cargo operators can also use Maqta Gateway for other key services designed to cater for container import and export operations, for example, manifest submissions, issue delivery orders as well as loading and discharge lists. Commenting about the pilot implementation Mohammed Khadem Al Hameli, Deputy Director General, General Administration of Customs said: “Abu Dhabi Customs’ main strategy is to improve the services we provide and develop compatible mechanisms along with our strategic partners and
Quarterly — 4th Edition 2015
51
abu dhabi ports
customers. The link between our operating system “Dhabi” and Abu Dhabi Ports’ Maqta Gateway will provide our customers direct and efficient services through the port community system as one single window without going back and forth between systems. We are looking forward to expanding our services through Maqta Gateway which will reflect the technological advancement being witnessed here in Abu Dhabi” Noura Al Dhaheri, Maqta Gateway General Manager at Abu Dhabi Ports, said: “Our key stakeholders and partners within the port community can now experience the positive impact of Maqta Gateway. The system is user friendly and will significantly improve operational efficiencies and create transparencies between all port users. Successful implementation of Stage1 of the overall project development was realised due to the full support and cooperation of our partners, Abu Dhabi Customs and Abu Dhabi Terminals.” Although Stage1 is specific to shipping lines and shipping agents handling container cargo, all Maqta Gateway users will benefit from the information services available such as vessel schedules, vessel and cargo tracking and other operational information that will help them plan their shipments in advance. Freight forwarders, clearing agents, and other stakeholders handling all types of cargo will be able to use the system in the subsequent stages, which will also include interaction between Maqta Gateway and other international port community systems.
52
Abu Dhabi Ports, with the support from its partners, has been able to launch trial operations of Stage1 of the maqta gateway in record time. Users can now register to receive training on the system enabling them to experience the range of services offered. Users of Maqta Gateway Stage1 can now register to receive training on the system enabling them to experience the range of services offered. Abu Dhabi Ports has recently won the ‘People Development Award’ at the International Bulk Journal (IBJ) Awards in the second consecutive year. The IBJ Awards offer global recognition to exceptional companies or organizations in the maritime bulk industry. Gary Lemke, Executive Vice President of Abu Dhabi Ports, received the award at the IBJ Awards night held at Antwerp in Belgium recently. The People Development Award recognizes Abu Dhabi Ports’ efforts to build the knowledge and skills of its employees and to provide structured and meaningful career development opportunities, which support the UAE’s objective of empowering the Emirati talent. Abdullah Humaid Al Hameli, Vice President – Emiratization of HR and Administration at
Quarterly — 4th Edition 2015
Abu Dhabi Ports, said: “This honor once again validates Abu Dhabi Ports’ track record in providing continuous development opportunities for our employees. We have always been introducing innovative training and development programs, especially for Emiratis who are responsible to lead this country forward.” Abu Dhabi Ports has a number of development programs for its staff members. Ports International Executive Road (PIER) program has been designed to ‘fast- track’ UAE national employees for top leadership positions. ‘The National Way to Ramp Up Success’ initiative targets young Emiratis, offering them positions to train for port operations jobs. The company made significant progress in promoting local talent by achieving Emiratization rate of 44% across its total workforce in 2014. As this rate is set to rise up to 47% in 2015, Abu Dhabi Ports is optimistic about achieving 55% target by 2017. l
terminaloperator.com
ELEVATING TO NEW HEIGHTS
‘OICT, a high productivity terminal and the gateway port of Oman’
Terminal Planning, Design & Construction
PSA launches JVs in India and china PSA has announced partnerships with local companies to develop terminals in Kakinada, India and Qinzhou City in China.
K
akinada Container Terminal (KCT) is joint venture between akinada Infrastructure Holdings Pvt Ltd (KIHPL), PSA Chennai Investments Pte Ltd and Bothra Shipping Services Pvt Ltd all of whom have equal shares of KCT, which is situated in the Kakinada Deep Water Port (KDWP). Mike Formoso, managing director of PSA India, said: “KCT will serve the agricultural, seafood and commodity trade and cater to the growing demand for containerisation of such products in the Kakinada region.” He added: “We wish to thank the Government of Andhra Pradesh and the trade community for the opportunity to partner and work alongside them to develop this important agricultural and seafood port in India.” KCT is well connected to the key cities in the region by the national highways and railway lines. It will assist with East India’s agricultural,
54
Quarterly — 4th Edition 2015
seafood and commodity hinterland which exports rice, sugar, shrimps and paper products. The initial annual handling capacity will be 200,000 teus of containers and KCT will have a quay length of 300m equipped with mobile harbour cranes and reach stackers. “KDWP has emerged as the most user-friendly, clean and green port with efficient and mechanised cargo handling systems. With the start of the container operation, it is now the most integrated port in India,” said Mr K V Rao, chairman and managing director of Kakinada Seaports Limited. The ceremony for the joint venture was graced by the officials from customs, Government of Andhra Pradesh, railways key shipping lines and key traders in the region. In China PSA International is joining forces with Beibu Gulf Port Group (BPG) and Pacific International Lines (PIL) to operate a new
terminaloperator.com
Terminal Planning, Design & Construction
“KDWP has emerged as the most userfriendly, clean and green port with efficient and mechanised cargo handling systems. With the start of the container operation, it is now the most integrated port in India.” container terminal in Qinzhou City, marking its first venture in the South-Western China region. The joint venture will operate and manage a total quay length of 1,533m, a designed capacity of three million teu per annum, and develop the BEIBU GULF-PSA International Container Terminal Co., Ltd (BPCT) into a world-class facility to service the mega container vessels plying the world’s maritime trade routes today. It will also be equipped with Super-Post Panamax quay cranes (of 23-row outreach) and provide a water-depth of 15.1m. “Guangxi-Beibu Gulf’s strategic location, established transport infrastructure and extensive hinterland offer tremendous potential for our terminal to support the remarkable growth in China’s South-Western region,” said Tan Chong Meng, Group CEO, PSA. Accessible to Southeast Asia by land and sea, the region has been earmarked by the Chinese government as a key area for coastal development and collaboration with ASEAN countries. The terminal will support the container trade growth in the region and serve the vast hinterlands of Guangxi, Sichuan, Chongqing and Hunan. It will also connect the region to key shipping routes linking China to ASEAN countries, East Africa
terminaloperator.com
& the Mediterranean, and forms an important gateway connecting the Silk Road Economic Belt and the 21st-Century Maritime Silk Road. This investment also marks the first strategic partnership of PSA with BPG and PIL in China. “Tapping on the mutual expertise of all parties, the collaboration between PSA, BPG and PIL will help to spur economic growth in the region,” added Zhou Xiao Xi, chairman, BPG. Operations are expected to being in Q4 2015. Meanwhile, at Scheldt in Belgium, MSC PSA European Terminal (MPET) has welcomed the arrival of 5 new Mega Quay Cranes built by ZPMC in China. At over 130 meters in height, these ship-to-shore gantry cranes can reach across 25 rows of containers, making them fully capable of handling the world’s largest containerships deployed by our shipping line customers. These new dual hoist cranes are capable of handling two 40’ containers or four 20’ containers simultaneously, a feature which is ideally dovetailed with MPET’s straddle carrier operations. MPET has also placed another order of four identical quay cranes from ZPMC, which are due to arrive towards the end of 2016. These new cranes will serve to reinforce MPET’s position as a major European gateway and global transshipment hub. When fully operational, MPET will feature a total of 41 quay cranes across 10 berths,
with a quay length of 3,550 metres and total handling capacity of 9 million TEUs annually. Employment is expected to grow in line with the volume increase. Total investment for the expansion of the Left Bank MPET facilities will be around 400 million euros. “The arrival of the new cranes is indicative of MPET’s cutting edge in terminal operations and management, and underlines the fast progress we are making in the development of our new terminal on the left bank. When completed and fully operational, it will be the single largest container terminal in Europe. With this new facility we can continue to not only serve our customers well, but also maintain our commitment to handling increased volumes with fast vessel turnarounds.” said Dirk Oellibrandt, General Manager, MPET MSC PSA European Terminal (MPET) is the largest container terminal in the Port of Antwerp, handling more than 12,000 containers a day. Originally located on the right bank of the river Scheldt, MPET is in the process of moving its operations to the left bank as part of a plan to meet the increasing needs of its customers. When completed, MPET – which is a joint venture between PSA and TIL Group - will become the largest container terminal in Europe. l
Quarterly — 4th Edition 2015
55
Terminal Planning, Design & Construction
Algeria-CHINA CONSORTIUM PLAn new hub at cherchell The project is planned to complete within seven years, and gradually put into service within four years with China’s Shanghai Ports Group ensuring its management.
56
Quarterly — 4th Edition 2015
A
lgeria and China have inked a 3.3-billion-U.Sdollar deal to build and exploit the new center transshipment port of Cherchell, according to reports by China’s Xinhua News Agency. The agreement was signed between Algeria’s Transport Ministry, China Harbour Engineering Company (CHEC) and China State Construction Engineering Corporation (CSCEC) in Algeria. Under the deal, the two sides will create a consortium company to build the port, some 60 km west of the capital Algiers. Creation of the company is expected to finalize later in March
terminaloperator.com
Terminal Planning, Design & Construction
“The Algerian government selected Chinese companies to build this project regarding the traditional friendship between the two nations and strong bilateral relationship in political, economic and cultural fields.”
Algerian government has wanted to build this mega Central Harbor for many years, and it has positioned it as a transit port at the Mediterranean area that will provide service to North Africa and Europe 2016, with the approval from the Council of State Shareholdings and the signature of its shareholding pact. The port will have 23 docks capable of processing 6.5 million 20-foot containers and 26 million tons of goods per year. According to forecasts by Algeria’s Transport Ministry, port traffic in the country’s central region is expected to hit 35 million tons or two million 20-foot containers per year by 2050. The project is planned to complete within seven years, and gradually put into service within four years with China’s Shanghai Ports Group ensuring its management. Bringing in Shanghai Port Group “would help driving international shipment traffic coming from the Southeast Asia and other continents to pass from this Center Port, under transshipment process to continue sea transport to elsewhere, or use the Algerian highway and railway networks to carry shipments to Africa,” said Algerian Transport Minister Boudjemaa Talai.
terminaloperator.com
Wen Jingfei, CHEC representative at the signing ceremony, told Xinhua that this project is important not only for Algeria but for the whole Mediterranean region and Africa. He said the Algerian government has wanted to build this mega Central Harbor for many years, and it has positioned it as a transit port at the Mediterranean area that will provide service to North Africa and Europe. Algeria’s landlocked neighbors such as Mali also need a port like this, he added. Zhou Sheng, the CSCEC representative said the agreement will be a milestone in the history of Algeria, a country that is facing a rare difficult period due to the slumping. “The Algerian government selected Chinese companies to build this project regarding the traditional friendship between the two nations and strong bilateral relationship in political, economic and cultural fields,” he said. l
Quarterly — 4th Edition 2015
57
Terminal Planning, Design & Construction - port said
Port Said Container & Cargo Handling Co. (PSCCHC) Port Said Container Terminal (PSCT) is the first container terminal established in Egypt’s Port Said west port. It is operated by the state owned Port Said Container & Cargo Handling Co. (PSCCHC) - one of the leading companies operating in the field of container & cargo handling since 1984.
58
Quarterly — 4th Edition 2015
Following the latest technology in container handling industry, the company executed some development projects which can be summarized in the following: • Completion of dredging alongside the main container quay with 950m length increasing the depth to 16m and the draft to 14.6m and strengthening the quay wall as well. Accordingly the terminal started receiving giant container vessels with higher drafts and handling volume grew by 21.2% last year. • Replacing all bollards alongside the terminal main quay & increasing their tensile strength up to 100 tons. • Adding a new area of about 172000m2 as an extension to the existing yards and 6 new RTG yard cranes arrived on 28/10/2015 especially for the new yard which is expected to be fully constructed and prepared by the end of 2015 giving the following advantages to the container terminal:• Increasing the terminal yards area to 572000m2. • Increasing the terminal annual capacity to 1500000 TEUs. • Increasing the terminal storage capacity to 44000 TEUs. • Creating work opportunities and increasing the national income. • Supporting the terminal equipment fleet by 2 65-ton STS quay cranes with 58m outreach capable of handling 22 rows, 10 trailers and 10 tractors to be supplied fully erected by Mid-2016. It is worth mentioning that all above developments were executed through full support of Adm. Mohamed Ebrahim Youssef, Chairman of the Holding Co. for Maritime & Land Transport who holds the responsibility of providing PSCCHCo. the opportunity for more investments especially in East Port Said port in case of establishing a new container terminal (CT2) as we have the experience and capabilities. l
terminaloperator.com
mega vessels
mega vessels
Container shipping supply/demand gap widens as year closes The world’s container carriers are increasingly ordering mega-ships capable of handling more than 14,000 20-footequivalent container units. The Asia-Europe trade routes are seeing even larger vessels being commissioned.
A
ccording to London-based consulting firm Drewry, a total of 97 ships capable of carrying between 18,000 and 20,000 TEUs are scheduled for delivery by mid-2019. Of these, 36 joined the global fleet in 2015, 12 will join in 2016, 22 in 2017, 22 in 2018 and five in 2019. All these are likely to be deployed in the troubled Asia-Europe trade. This gung ho attitude of ocean carriers towards the ordering of new ultra-large tonnage is not exactly helping with the current market conditions within the container industry and the collapse of the charter market. In the last weeks of 2015, daily hire rates for containerships of over 4,000 TEU plunged to record lows. According to Alphaliner’s data, charter rates for an 8,800 TEU ship plummeted from $31,000 per day in the first half of the year to $8,000 in the second half as demand almost totally dried up. The influence of the ‘big three’ container lines, Maersk, MSC and CMA CGM, on the charter market is substantial: Between them they accounted for 36% of the chartering activity in 2015, according to Alphaliner’s records. As their new mega-container vessels have been delivered for Asia-Europe deployment, the trio have cascaded incumbent ships into smaller trades and off-hired, or not extended, smaller boxships, thus exacerbating the difficulties for the weakening charter market.
62
Quarterly — 4th Edition 2015
By the end of 2018, nine of the 20 largest ocean carriers will be members of the “exclusive club” that operates ships of 18,000 TEU capacities or more. And this, at a time when the industry is facing an increasingly serious overcapacity issue, which is set to hit 10 per cent in 2016, a level not seen since the global financial crisis in 2009. Yet it’s barely four years since Maersk Line, long the industry pacesetter, unveiled an order for 10 18,270-TEU Triple E vessels that “will be the biggest ships you will see for some time,” thenCEO Eivind Kolding stated at the time. The math of the mega-ship has changed significantly since Maersk raised the bar. Shipyards are asking considerably less than the $190 million the Danish line paid for each of its initial 10 Triple Es. And Maersk’s statement that the new vessels would allow the carrier to keep pace with container demand that is set to grow “by 5 to 8 per cent every year” belongs to another era. In August, Maersk downsized its forecast to 2 to 4 per cent, down from 3 to 5 per cent announced earlier this year. “Weaker data on exports and manufacturing in China and its economic transition increase uncertainty for container shipping,” Fitch Ratings wrote in a recent note. “The supply/demand imbalance will be exacerbated by container shipping companies continuing to order mega-vessels.”
terminaloperator.com
mega vessels
It is likely that at some stage 24,000 TEU ships will be sailing the world oceans; it is not unimaginable that this will already be the case in 2020
Then there is the price of oil. Maersk’s statement that the Triple Es’ fuel consumption would be 50 per cent below the industry average was made in a year when the price of North Sea Brent, the global benchmark crude, was about $110 a barrel. It held steady for the next four years, trading at $115 through the first half of 2014 before the sudden and unexpected slump down to the thirties today. This has drastically altered the economics of the mega-ship. Maersk, however, has bet its future on the mega-ship, signing a $1.8 billion order for 11 19,630-TEU units in June 2015 that will join the 20 Triple Es on its Asia-Europe route between April 2017 and May 2018. The Danish carrier is also spending some of its $15 billion investment program on smaller vessels, ordering seven 3,600TEU ice-class ships and nine 14,000-TEU units last year. But are mega-ships nearing their size limit? Yes, according to Hapag-Lloyd CEO Rolf Habben Jansen, who believes the incremental benefits of greater fuel efficiency and lower slot costs over smaller units aren’t that big. “We are starting to reach the limits of what makes economic sense,” he said in a keynote address to the Container Trade Europe Conference. There is a certain optimum size of vessel “and we believe we are very close to it.” According to Jansen, fears of a surging mega-ship-driven oversupply were being fueled by shipyards and carriers promoting the nominal capacity of their vessels, which is much bigger than their actual capacity. Hapag-Lloyd hasn’t been caught up in the mega-ship rush — its largest vessel is under 14,000 TEUs — but it’s about to join the club. The carrier is looking at a limited number of 18,000- to 20,000-TEU vessels, “but we don’t think that going bigger than that makes much sense,” Habben Jansen said. The German carrier is expected to use some of the $500 million proceeds from its imminent initial public offering as a down payment on the vessels.
terminaloperator.com
The rush to order ever-larger ships, meanwhile, is slowing because they can’t operate in many trades, including routes to Africa, South America and, at least for now, the U.S. West Coast, the Hapag-Lloyd CEO noted. Although mega-ships dominate the spending and strategy of the world’s largest carriers, operators and owners of smaller vessels are struggling with their own problems. For example, Seago, Maersk’s intra-European feeder unit, which deploys 50 ships of 500 to 4,500 TEUs, has taken a $40 million hit from the lowsulfur emission regulations on north European waters that took effect at the beginning of the year. And an almost total lack of inspections means a minimal benefit to on the environment, Andrea Avani, Seago’s key account manager, said at the Hamburg conference. Meanwhile, the industry is, as ever, divided over what’s next as overcapacity hits levels not seen since 2009 at the peak of the Great Recession. But Habben Jansen is optimistic as he prepares to join the mega-ship club. He insists container shipping over time “is fundamentally an attractive growth industry,” with annual growth of 3 to 5 per cent being “a pretty safe bet.” “There are not many other industries that grow faster than gross domestic product.” The seemingly never-ending quest by ocean carriers to operate bigger ships was a significant spur for orders for 60 18,000-22,000 TEU behemoths in 2015, according to Alphaliner. Carriers were apparently undeterred by weakening market conditions last year and
continued their big-ship strategies with ultra-large container vessels representing 24% of the total cellular orderbook. In order to obtain the holy grail of lowest unit cost, equating to the cheapest rate offers in the market, carriers must achieve high load factors, thus exerting further downward pressure on freight rates as the call goes out to sales teams: “Fill the ship at all costs.” Meanwhile, according to Alphaliner’s latest data, the world’s cellular containership fleet had by the end of 2015 reached a total slot capacity of 19.94m TEUs, representing an 8.5% growth over the previous year. A record 214 new containerships entered the market last year, adding 1.72 mln TEUs to the fleet. However, according to data from shipbroker Braemar ACM, there were just 93 vessels, or 213,000 TEU demolished last year, as scrapping prices declined as a result of the global steel glut. And in the absence of demand, for many owners and operators there appears no option but to lay-up their own or long-term-chartered ships, continuing the trend of 2015 which saw the idle containership fleet swell five-fold to 1.36m TEU – 6.8% of the global fleet. Alphaliner does not see ‘early light at the end of the tunnel’ for the container liner industry, and notes that in February’s post-Chinese New Year holiday period there are several blanked sailings planned, which it said would lead to several large ships being idled. “A significant reduction of the idle fleet is thus not expected until April,” it said. l
Quarterly — 4th Edition 2015
63
mega vessels
Shipbuilders sailing in choppy waters While East Asian shipbuilders recorded one of their worst performances last year because of failures in the offshore plant business, they also suffered a dearth of new orders, darkening the outlook for years to come, according to industry sources.
C
larksons, a British agency analyzing the shipping and shipbuilding industry, has reported Korean shipyards have received orders totaling 10.15 million CGT (compensated gross tonnage) in 2015, 100,000 fewer than the 10.25 million recorded by their Chinese competitors. Japan came third with 9.14 million. Korea has however reduced the gap with China, which has topped the order-receiving list since 2012. In the second half of 2015, however, the difference was shocking: Korean berths managed to win 3.43 million CGT in the Jan.-June period, less than half of China’s 6.92 million and even lagged Japan’s 4.24 million. “In the first six months of 2015, Korea’s order receipts almost doubled those of China but the table completely turned around in the latter half-year,” said a shipbuilding industry executive. “The three largest domestic shipyards, discouraged by massive losses, seemed to be less than eager to win new orders.” Also, Chinese companies began to gain ground in the high valueadded shipbuilding market, such as very large crude and container carriers (VLCCs), which had been all but monopolized by Korean shipyards. Japan also increased its share in the VLCC market from 16.5 per cent in 2013 to 27.1 per cent in 2015.
64
Quarterly — 4th Edition 2015
The total business losses of Daewoo Shipbuilding & Marine Engineering, Hyundai Heavy Industries and Samsung Heavy Industries for 2015 are estimated at more than eight trillion won. Specifically, the amount is estimated at approximately five trillion won for Daewoo and about 1.5 trillion won for each of Samsung and Hyundai. Such a large loss is unprecedented for the three shipbuilders. Daewoo recorded 4.5317 trillion won in losses during the first three quarters of 2015. The amount snowballed due to offshore plant business losses attributable to drillship contract cancellation and the like, losses incurred at its overseas subsidiaries including Daewoo Mangalia Heavy Industries, etc. Hundreds of billions of won were added to the losses in the fourth quarter. Hyundai is expected to repeat a loss of more than one trillion won for the second consecutive year. From January to September 2015, its business losses totaled 1.26 trillion won with the company remaining in the red for eight quarters in a row. The losses are estimated to have reached 200 billion won in the fourth quarter. The three-quarter losses were 1.53 trillion won for Samsung. Still, this company is expected to be in the black in the following quarter. The CEOs of the three companies recently declared that they would yield profits this year. However, business environments are far from
terminaloperator.com
mega vessels
favourable for them. The global economic downturn and the slowdown of the Chinese economy is exacerbating the structural stagnation of the shipbuilding industry and losses attributable to delayed offshore plant delivery are likely to continue this year. “Korean shipbuilders, who have handed over their marketleading status to their Chinese rivals, received a double punch from the industry slump,” said the executive. “It will be difficult for them to get out of the crisis easily, as new orders are unlikely to increase this year, too.” Not all is bleak though: South Korean shipyards’ earnings should improve in 2016 as most offshore projects in their orderbooks are delivered, according to Hana Daetoo Securities Co. That will allow them to focus on container ships and oil tankers, higher-margin businesses where they have more experience. South Korean shipyards already have reflected many of their losses on their balance sheets, and have become more selective about orders. The pain they felt in 2015 is just spreading to the rest of Asia, however. “For overseas shipyards, 2016 is going to be more challenging because the impact from weak oil prices is just now starting to hit them,” said Park Moo Hyun, an analyst at Hana Daetoo in Seoul. Smaller shipbuilders, such as Hanjin Heavy Industries, STX and SPP, are barely staying afloat with financial support from the government or state-run banks. Shipyards in China will continue to lag behind their foreign rivals as cumbersome financing conditions and prolonged excess capacity continue to crimp industry profits and push smaller shipyards out, experts said. Zhoushan Intermediate People’s Court announced that it had accepted an application from Zhejiang Shipping Group Co to liquidate its subsidiary Wuzhou
terminaloperator.com
Quarterly — 4th Edition 2015
65
mega vessels
Shipbuilding and Maintenance Co, making it the first State-owned shipyard to go bankrupt since 2005. Zhejiang Shipping said that the shipyard’s bankruptcy was due to its massive debt burden of 911 million yuan ($140 million), including payment in arrears to workers, parts suppliers and taxation authorities. Wuzhou Shipyard suspended operations after it delivered a 2,500 twenty-foot equivalent units container ship to Shanghai Zhonggu Xinliang Shipping Co in July. It also has one 2,500 TEU container ship, two barges and one tugboat which remain undelivered. “Even though the total asset value of the Wuzhou shipyard is not significant, its status as a State-owned shipyard has increased concerns that more Chinese shipyards from both the private and State-owned sectors will face either bankruptcy or passive merger in 2016,” said Dong Liwan, a shipping industry professor at Shanghai Maritime University. Dong said the main products of the Wuzhou shipyard were all low value-added ships including small bulk vessels and container ships, both of which were hit hard by price fluctuations in 2015, with their prices cut by as much as 50 percent. As the Wuzhou shipyard’s main assets are State-owned land-use rights, office buildings, and shipbuilding and maintenance facilities, valued at around 534 million yuan, the court will appoint a receiver for the shipyard and convene a creditor’s meeting soon. More than 30 major large-scale shipyards went bankrupt over the past two years, according to the China Association of the National Shipbuilding Industry, including Jiangsu-based Nantong Mingde Group Co and Jiangsu Daoda Marine Heavy Industry Co and Zhejiang Zhenghe Shipbuilding Co, all of which were capable of manufacturing high valueadded ships such as chemical tankers and vehicle carriers. Guo Dacheng, president of the Beijing-based association, said the government will continue to cut its
66
Quarterly — 4th Edition 2015
“Korean shipbuilders, who have handed over their marketleading status to their Chinese rivals, received a double punch from the industry slump.”
vast shipyard network to get industrial growth back on a healthy track this year. Excessive size hampers the industry’s earning ability amid low
vessel prices, irrational expansion and speculation in the shipbuilding sector. China’s policy banks, such as China Development Bank and the Export-Import Bank of China, have become more cautious in approving refund guarantees — particularly to small and medium-sized shipyards. Guo warned that unqualified shipyards should not even consider producing offshore engineering products such as oil rigs and offshore pipe-laying vessels for foreign customers. “Small and medium-sized shipyards without orders or with a few orders will gradually withdraw from the market over the next five years,” Guo said. Chinese shipyards received orders for new vessels with a collective capacity of 23.58 mln dead weight tons between January and November in 2015, accounting for 28.7 per cent of the global market share. South Korea’s shipbuilding industry, a powerful rival of China’s, held 38.8 percent of the global market share during the same period. China has 1,600 shipbuilding-related enterprises, including 800 large shipyards, employing 1.4 million people, with an annual industrial output value of 800 billion yuan, according to the National Development and Reform Commission. l
terminaloperator.com
mega vessels - Hapag lloyd
Hapag-Lloyd slashes fleet, eyes more mergers Hapag-Lloyd, Germany’s largest shipping line, has revealed it has cut its fleet by 23 ships by laying them up or returning chartered vessels in recent months as it fights horrendous market conditions especially on the AsiaEurope and Asia to South America tradelanes.
S
peaking with journalists in Hamburg for the first time since November’s muted IPO, Rolf Habben Jansen, the Dutch CEO of the line, said Hapag-Lloyd had cut its operating fleet from 198 ships to 175 since autumn. Its fleet capacity has shrunk from around 1m TEUs to 945,000 TEUs. Current freight prices do not even cover operating costs, Habben Jansen said, adding: “It does not make sense to offer capacity, if it only makes losses.” Only transatlantic and transpacific routes are offering any solace at the moment, Habben Jansen added. The 49-year-old also discussed the ongoing consolidation within the liner trades, noting how CMA CGM had bought NOL and Cosco and China Shipping were merging. “This will change our industry,” Habben Jansen said, referring to likely shake ups in global container alliances. The consolidation also means Hapag-Lloyd, which merged with Chile’s CSAV last year, will slip from fourth to sixth in the global liner rankings. Habben Jansen did not rule out seeking further acquisitions to bolster the Hamburg line’s position. “It would be helpful for us to be even bigger. We are open to opportunities,” he said. The merger with CSAV has brought savings of $300m last year, Habben Jansen said, a figure he expects to rise to $400m this year. This year a sales growth of 3% is expected.
68
Quarterly — 4th Edition 2015
In other developments HapagLloyd has announced the introduction of new ships and reefers in the Black Sea Mediterranean Express (BMX) service. The new short sea service offers customers a weekly connection between ports in Egypt, Israel, Turkey and major Black Sea ports with competitive transit times. It will furthermore guarantee the connectivity of the Black Sea
ports with Hapag-Lloyd’s comprehensive global liner service network – especially to and from North America, Latin America, Far East, Oceania and North Europe. Three ships with a nominal capacity of 1,700 TEU each and a high number of reefers plugs will be deployed in the BMX service. The first voyage will commence from Damietta on February 16. l
terminaloperator.com
mega vessels - Hapag lloyd
“It would be helpful for us to be even bigger. We are open to opportunities,” he said. The merger with CSAV has brought savings of $300m last year, added Habben Jansen, a figure he expects to rise to $400m this year. This year a sales growth of 3% is expected.
terminaloperator.com
Quarterly — 4th Edition 2015
69
Supported by
Container Handling & Crane Technology
Container Handling & Crane Technology - kalmar
Terminals seek sustainability with new solutions Automation and innovative drive technologies enable container terminals to decrease their environmental footprint while simultaneously improving productivity.
Kalmar demonstrated a new dual-fuel diesel and LNG (liquefied natural gas) powered reachstacker to the public at the Port of Livorno, Italy, on 16 January 2014. The visionary prototype machine was created in partnership with Kalmar’s customer Global Service, the leader of the pilot and one of the most important players in the equipment rental business in Italy. The prototype reachstacker is expected to deliver significant results in terms of environmentally friendly operation. The machine is based on the adaptation of a Kalmar reachstacker to a motorisation for reducing the environmental impact and the energy consumption.
I
n today's highly competitive container handling business, terminal operators across the globe are looking to increase terminal capacity and lower costs, while also improving the sustainability of their operations and preparing for automation. Sustainability is often thought of primarily in terms of the environmental impact of business operations. However, it is a much wider question that also extends into the realms of economy and society. Put simply, sustainable development is about meeting our needs without preventing future generations from meeting theirs.
74
Quarterly — 4th Edition 2015
Raising the standards Today's terminal operators need to meet new environmental regulations as well as increasingly exacting emissions limits set by authorities in port area lease agreements. Each successive generation of emission standards is driving the adoption fieldproven green technologies. The reduction of emissions from container handling equipment has progressed rapidly in recent years. Successfully adopted solutions already include Tier 4 Final compatible engines,
hybrid technology, electric drive, start/stop functionality and the conversion of braking and spreader-lowering energy into electric power. Liquefied natural gas (LNG) holds promise as a viable source of alternative energy in the future. From the perspective of saving raw materials, crane refurbishment and recycling are already important business areas for equipment manufacturers. Electrification of Rubber-Tyred Gantry cranes (RTGs) can cut CO2 emissions and crane fuel consumption by up to 100%
terminaloperator.com
Container Handling & Crane Technology - kalmar
while significantly reducing noise levels in the port and its surrounding areas. Automation increases sustainability Automation is widely accepted as the way towards improved productivity, safety, efficiency and competitiveness at today's container ports and terminals. The benefits of automation are equally accessible to existing (brownfield) sites and newly built greenfield installations. In addition to boosting terminal performance, automation can also help improve the sustainability of operations in several ways. Optimised container flows reduce energy consumption and emissions. Automated equipment leads to a safer working environment, significantly lowering accident rates and reducing insurance costs. Moreover, automated equipment is always driven optimally and maintenance operations can be planned pre-emptively.
Automated operation also extends equipment lifetimes, thus preserving resources and contributing to sustainability. The benefits of terminal and process automation largely result from small incremental gains adding to massive savings or performance increases when multiplied by countless container moves over the course of a year. Likewise, these incremental gains have a huge impact on terminal sustainability. Every unnecessary container or equipment move that is avoided thanks to optimization is a 100% energy saving. More power, less fuel Mobile equipment for container handling has developed rapidly over the last decade. In 2013, Kalmar introduced the world’s first real hybrid shuttle and hybrid straddle carriers, which enabled a dramatic decrease in fuel consumption and CO2 emissions compared to traditional
diesel-electric machines. The technology of the hybrid shuttle and straddle carriers is the market standard today. Hydrostatic and electric drive is widely used in other mobile equipment including forklift trucks. In the summer of 2015, Kalmar unveiled Kalmar K-Motion, a new drive train system for the Kalmar Gloria reachstacker. The system increases uptime, ergonomics and safety, while significantly reducing fuel consumption and running costs. This is made possible by combining a high-performance hydromechanical variable transmission – a first in reachstackers – with smart programming to optimize power usage. This cuts fuel consumption and exhaust emissions up to 40% without compromising drive and lift power. "In the Kalmar K-Motion system, engine power takeup is optimized to only use the power that is needed at certain moments," says Stefan Johansson, Director, Sales and Marketing,
Kalmar, announced in December 2015 that it will introduce the industry first fast charging solution for electric powered shuttle and straddle carriers. The Kalmar FastCharge™ solution is locally emission free and can be applied to both automated and manual operation.
terminaloperator.com
Quarterly — 4th Edition 2015
75
Container Handling & Crane Technology - kalmar
Kalmar Reachstackers and Empty Container Handlers. "For example, lifting a container while the reachstacker is stationary will need a very different power configuration compared to driving and lifting at the same time." Proven technology The Kalmar K-Motion system utilizes a Hydromechanical Variable Transmission (HVT) that allows drive characteristics to be adjusted over the entire speed range, while providing optimal handling and the highest possible throughput with maximum fuel savings. HVT transmission technology has been a standard for years in heavy-duty agricultural tractors, but has not been previously seen in container handling equipment. HVT includes both hydrostatic and mechanically coupled drive paths, switching seamlessly between them as a function of travel speed. At low speeds, the system uses a fully hydrostatic drive range. This enables several advantages such as smoothly switching to reverse with no additional clutch, fast acceleration and braking, as well as sensitive, precise positioning. With increasing speeds, a larger portion of
76
Quarterly — 4th Edition 2015
engine power is transmitted through the parallel mechanical drive path. This allows acceleration with no interruption in tractive force. At maximum travel speed, all power transmission takes place through the mechanical branch of the transmission, providing the highest efficiency. Furthermore, power losses resulting from traditional torque converters are eliminated. The identical advantages apply for driving in reverse. Lower noise levels The Kalmar K-Motion platform uses latestgeneration diesel engines that comply with EU stage 4 and EPA Tier 4 Final emission regulations and offer the lowest fuel consumption. Field reports from tests carried out in Scandinavia during 2013–2015 consistently reported fuel consumption and exhaust emission reductions of up to 40%. In addition to increasing the sustainability of operations, this also translates to dramatic cost savings for terminal operators. The first equipment that was launched with the K-Motion technology is the Kalmar Gloria DRG450 reachstacker with 6.0–6.5m wheelbases, for container, intermodal and industrial handling.
In addition to improved handling and fuel savings, Kalmar K-Motion considerably reduces noise levels, increasing the comfort of drivers as well as people in the surroundings. This is a key consideration especially for terminals located in densely populated urban areas. With smart power management, maximum engine speed is limited to 1,700 rpm. By comparison, reachstackers with normal transmission rev up to 2,000–2,100 rpm when lifting and manoeuvring. This equals an approximately 4-6 dB(A) lower noise level for the driver and surroundings. The benefits of the Kalmar K-Motion system also include improved occupational safety. Thanks to effortless control of the reachstacker and lower noise, operators can focus on the task ahead and react quickly, thus avoiding accidents, damaged cargo and driver fatigue. Looking ahead Sustainability is increasingly becoming a must for companies of all
terminaloperator.com
Drive-In L
the new standard
for RTG Electrification
E-RTGTM with Plug-In Solution
E-RTGTM with Drive-In P Solution
We add the “E” to your RTG Electrification of Rubber Tyred Gantries Converting a conventional RTG into an electrical one (E-RTGTM) means to shut down the diesel generator and to power the RTG with electrical power only.This conversion is now possible with the complete RTG electric power solutions developed by Conductix-Wampfler: Plug-In Solution, Drive-In P & L Solution and Motorized Cable Reel Solution. We move your business! www.conductix.com
E-RTGTM with Motorized Cable Reel Solution
Container Handling & Crane Technology - kalmar
Saigon Newport Company (SNP), Vietnam’s largest container terminal operator, relies on Kalmar Zero Emission rubber-tyred gantry cranes (RTGs) to provide the capacity and environmental performance it needs. The Kalmar E-One² Zero Emission RTG features a 100-percent electric power system that produces no emissions or engine noise and completely eliminates the need for hydraulic oil. Its simplified design means it requires significantly less maintenance than a diesel-powered RTG.
sizes. However, for forward-looking businesses, increasing sustainability is not an obstacle but an opportunity. Recycling, conserving raw materials, using renewable energy and ensuring the use of environmentally safe materials and processes are all key aspects of maintaining sustainable operations in the long term. In the coming years, smart solutions such Kalmar K-Motion are likely to become the
78
Quarterly — 4th Edition 2015
norm in terminal mobile equipment. Additional productivity and sustainability gains can be realized by other advanced features in equipment and terminal automation. These include automatic Start-and-Stop functionality, programmable drive speed limitations, and fleet monitoring that keeps track of the equipment fleet and makes it easier to discover usage patterns that can improve efficiency even more.
Looking further ahead, future developments in port technology may include the increased adoption of solar energy, as well as novel ways to harness wind and wave energy. Irrespective of specific solutions, one thing is for certain: Terminals across the globe will need to increase their capacity, find potential for incremental productivity gains and cost savings through automation, and simultaneously improve the sustainability footprint of their everyday operations. l
terminaloperator.com
Container Handling & Crane Technology - stinis
Silver Jubilee Celebrations: Stinis and Jebel Ali Port celebrate 25 years of cooperation and teamwork In 1991 Jebel Ali Port was the first port located outside the Netherlands to take a Stinis Ship to Shore spreader in operation. A game changer for the Dutch spreader manufacturer. Now, 25 years later, it is payback time! What does Stinis do to support the challenging ambitions of the region?
T
he United Arab Emirates take a special place in the hearts of Stinis employees. It was Jebel Ali Port which showed trust in the in Holland-located spreader manufacturer in 1991. The decision to partner with Stinis came after acquiring a second hand Ship to Shore crane from the Netherlands that was equipped with a 10-year-old Stinis spreader. The 10 year old apparently did a good job. It was the start of a long term relationship between Stinis and terminals in the Middle East. Ever since, Stinis has supplied over 200 Ship to Shore spreaders and over 30 Long Twin® Straddle Carrier Spreaders to the region, and is in the midst of producing another 60+ for Jebel Ali Terminals 1, 2 and 4 and Khalifa Port Container Terminal. This year Stinis will celebrate 25 years of cooperation with the world’s most productive terminals. What is Stinis doing to support higher productivity and safer and efficient operations in the region? Kees Stinis, owner of Stinis and closely involved with all deliveries to the Middle East explains: “As a family-owned and run company, our company’s primary concern is continuity, not annual turnover or other related KPI’s. To ensure continuity we must deliver what we think benefits terminal
80
Quarterly — 4th Edition 2015
operators in the region over a period of 10 to 20 years. That requires good listening, working with the operator and technical maintenance staff, and spending time in the cabin next to the crane driver. Here we learn what is needed to succeed.”
“our company’s primary concern is continuity, not annual turnover or other related KPI’s. To ensure continuity we must deliver what we think benefits terminal operators in the region over a period of 10 to 20 years.”
Ruud Westgeest, After Sales Service Manager at Stinis Holland, adds how Stinis has increased its presence in the region by entering in a partnership with Michelle Engineering in Ajman. “From here we ensure quick delivery of spare parts and on site support by engineers who are trained in our factory in the Netherlands. Upon request, we are able to send our specialists to provide customised on-site training. These training courses often combine class room sessions with training on the equipment in the maintenance workshops. Here we share our knowhow and experiences, and
Stinis Ship to Shore spreaders in operation in Jebel Ali Terminal in Dubai
terminaloperator.com
Container Handling & Crane Technology - stinis
This concept allows moving 4x20’ or 2x40’ (or any other combination) from the ship to the shore (and visa versa) in one move. The Stinis ® Split-Headblock contributes to faster loading and unloading operations needed to support the ever increasing ship sizes.
Long Twin® Straddle Carrier Spreaders in operation at Abu Dhabi Terminal
discuss ways to reduce down time to a minimum. We are very grateful for being appreciated with the Excellent Performers Award earlier this year,” Ruud continues. “We achieved maximum scores on ‘Price Competitiveness Compared to Other Vendors’ and ‘Product Quality’. Today we are highly motivated to improve on those areas where we have not yet reached the maximum score.” Earlier in 2015, Stinis completed the delivery of 29 ship-to-shore spreaders to Jebel Ali Terminal 1. These Long-Twin® spreaders (all replacements) come with a number of new product features to further support safe and efficient operations. The spreaders are equipped with a Display in the main E-box for quick problem solving without having to plug in a portable computer. Communication between the spreader and the crane has been upgraded to STICAN, a high performance open CAN communication developed by Stinis. Stinis is also closely following developments in Khalifa Port Container Terminal and is grateful to provide its services to this highly productive and
terminaloperator.com
Stinis Split-Headblock® in operation in Evergreen Container Terminal in Kaohsiung
rapidly growing terminal. Since the start up of its operations, Stinis has supplied over 30 Long-Twin® straddle carrier spreaders, 13 Long-Twin® ship-to-shore spreaders and several Overheight Frames. The Stinis Overheight Frame can be used with all spreader brands and is connected to the container spreader without any human intervention. This way Stinis is able to support KPCT minimizing the amount of machine-people interfaces and keeping a safe working environment. Another way in which Stinis hopes to support the region’s ambitions for higher productivity and shorter turnaround times is the Stinis Split-Headblock®. This concept allows moving 4x20’ or 2x40’ (or any other combination) from the ship to
Stinis Split-Headblock® in operation in DP World Antwerp in Belgium
the shore (and visa versa) in one move. The Stinis Split-Headblock® contributes to faster loading and unloading operations needed to support the ever increasing ship sizes. Due to the flexibility of the arms of the Split-Headblock® containers with various heights and in unequal positions can be lifted simultaneously. It is the same flexible structure that reacts in an elastic way (during lifting) in the event that one out of two (or four) containers is stuck in the cell of the ship. This feature decreases the probability of a crash and a breakdown of operations. All this is related to the design philosophy of the Stinis SplitHeadblock® which makes it different from other solutions. The basic design takes into account the most exceptional circumstances to make sure that these won’t go at the expense of the increased productivity that this product brings. The Stinis Split-Headblock® is now in operation in terminals in The Netherlands, Belgium and Taiwan and will soon be in Panama. “We are closely monitoring the situation, providing intensive on site support, keeping our eyes and ears open,” says Kees Stinis. He concludes: “We have thought this product through for now almost 20 years. We truly believe that this innovation can help the largest hubs of this world handle the next generation of vessels, and we are there to support its successful implementation. Not only today, but over the course of the next 20 to 50 years - and longer.” l
Quarterly — 4th Edition 2015
81
Container Handling & Crane Technology - kONEcranes
Konecranes to deliver 10 more Automated RMGs (ARMGs) to Khalifa Port, Abu Dhabi Konecranes will deliver 10 more ARMGs to Khalifa Port in Abu Dhabi. Deliveries will take place at the beginning of 2017. This follows upon the successful delivery of an automated container yard system including 42 ARMG cranes. The port started commercial operations on 1 September 2012.
K
halifa Port is owned by Abu Dhabi Ports and the container terminal is operated by Abu Dhabi Terminals (ADT). Abu Dhabi Ports is satisfied with the commercial progress of the port as the infrastructure is ready for the next phase of construction of the automated container yard. Abdulkareem Al Masabi, VP Operations, Abu Dhabi Ports, commented: “This is a very large, complex, multi-phase infrastructure project with high commercial and efficiency demands. Konecranes has proved to be an excellent partner, supplying the initial ARMG system and TOS (Terminal Operating System),” he said.
82
Quarterly — 4th Edition 2015
“They will deliver the next batch of ARMGs along with progress in the construction of the automated container yard. Konecranes is working with us closely to fine-tune the operational processes as needed. I expect more of the same from Konecranes with this upcoming delivery,” Al Masabi concluded. Jussi Sarpio, General Manager, RMG/ARMG Cranes, Konecranes said: “Our goal is to build the world’s best automated container handling system, to be the foundation of the Abu Dhabi Ports’ commercial success for many years to come.” The 10 ARMGs on order are identical to the 42 ARMGs already delivered. They have a lifting capacity of 40 tons, stacking one-over-
terminaloperator.com
Terminal Design Alternative Terminal Studies Business Process Modeling Business Case Comparison Terminal Systems and Solutions SPS InnoQon provides consultancy services to help you designing the terminal in the most optimum way. We are able to make comparison of available solutions and new terminal concepts; showing you the initial investment cost, operational cost and the Total Cost of Ownership over a period of time. This will help you making the right decision for improving the efficiency and lower the cost for your terminal.
SPS InnoQon……………..Connecting people and solutions
How to contact SPS InnoQon: Elmar Hendriks Managing Director SPS InnoQon
Level 14, Boulevard Plaza Tower 1 Sheikh Mohammed Bin Rashid Boulevard Downtown Dubai PO Box 334036 Dubai, United Arab Emirates M: +31 6 546 978 01 T: + 971 4 278 0995 Email: info@spsinnoqon.com Skype: elmar.hendriks Website: www.spsinnoqon.com
Container Handling & Crane Technology - kONEcranes
The C series lift truck includes a completely new driver’s cabin with first-inclass features to enhance safety, comfort and productivity. The C series also boasts increased reach stacker lifting performance, an enhanced TRUCONNECT® remote monitoring system and improved engine performance.
five containers high and nine wide. They are equipped with automation controls and Konecranes’ Active Load Control (ALC) system. ALC combines advanced sway control and horizontal fine positioning, providing very efficient container handling in the ARMG yard during both automatic and remote operation. The Konecranes ARMGs are interfaced with the port’s Terminal Operating System (TOS), delivered by Konecranes in the first phase of the container terminal construction. Generation C lift trucks unveiled in Asia The new C-series spans the entire Konecranes product range of lift trucks (i.e. 10-65 ton fork lift trucks, container lift trucks and the full range of reach stackers). The range was first introduced to Europe and North America at CeMAT Hannover 2014, and since then has enjoyed enthusiastic uptake in excess of several 100 units. The Generation C lift trucks are already hard and reliably at work in the European and North American fleets.
84
Quarterly — 4th Edition 2015
The C series lift truck includes a completely new driver’s cabin with first-in-class features to enhance safety, comfort and productivity. The C series also boasts increased reach stacker lifting performance, an enhanced TRUCONNECT® remote monitoring system and improved engine performance. The C series is equipped with common platform diesel engines that meet emission legislation levels EU Stage II / EPA Tier 2, EU Stage IIIA / EPA Tier 3, or EU Stage IV / EPA Tier 4f. These new engines are in general several decibels more silent and can save up to 6% in fuel consumption over previous ones. Most engines can be supplied with a start/stop function to further reduce fuel consumption, typically between 5 - 15%, and to extend the factual engine service life. The new driver’s cabin offers operators class-leading spaciousness and superior
visibility made possible by an even more ergonomic layout with integrated seat-mounted controls. The industry’s first 7” touch screen color display provides full truck monitoring including eco-drive, fuel management and driver login. The touch screen monitor also supports an optional integrated rear-view camera and tire pressure monitoring. The efficient HVAC (heating, ventilation and air conditioning) system offers a 50% overall capacity improvement. Patrik Lundbäck, Regional Sales & Service Director of the APAC Region, says “The Generation C lift truck is a collection of refinements and bold new technologies that improve our lift trucks in ways that make them safer, cleaner, quicker and more cost effective. We are very happy to be the first region outside of Europe and North America to launch the Generation C.” l
terminaloperator.com
Trendsetter in container handling
The Stinis Split-Headblock速 is a highly flexible system that replaces the conventional headblock. It can be connected to a single or to two separate spreaders handling various combinations of 20', 40' and 45' containers simultaneously. Switching from single to dual spreader operation (and vice versa) takes approximately 2.5 minutes and is achieved without the intervention of ground staff. With the Stinis Split-Headblock速 you will increase the flexibility and productivity of your operations. Call us.
Stinis Split-Headblock 速
Stinis Holland B.V. The Netherlands t +31 180 514 655 f +31 180 516 190 e sales@stinis.com w www.stinis.com
Stinis Singapore Pte Ltd Singapore t +65 6862 4855 f +65 6862 4655 e sales@stinis.com.sg w www.stinis.com
Supported by
terminal operating systemS
TERMINAL OPERATING SYSTEMS
Finding calm in the chaos How purchasing a terminal operating system poses less risk, provides a faster ROI, and ensures a more streamlined operation than investing in tangible capital assets such as cranes and machinery.
P
orts can be chaotic places with clients demanding better, faster services; and it’s only going to get worse. As globalization proliferates, greater volumes of cargo are being shipped internationally. To handle this, megaships are being introduced. This has a cascading effect; bigger vessels are visiting smaller terminals as a result of these mega-ships taking over the highest volume routes. Larger, wealthier ports are introducing automation to help manage their operations. But how are small and medium sized terminals supposed to cope with this pressure to deliver more with less? They often don’t have the financial resources of their larger counterparts to be able to automate, and are confronted by a number of challenges.
Challenges of a small/medium port:
88
Quarterly — 4th Edition 2015
“Efficiency is the only form of defense for a service business. To do more with less resources in a record time is always the goal for survival in a global economy.” GENARO MENDEZ, CICE, MEXICO
It can all become overwhelming. So how can today’s ports alleviate this stress and gain an advantage over the competition? The answer: Efficiency. There are many ways a port can improve its efficiency As ports around the world prepare for the onslaught of larger ships, the temptation is to dredge harbors and invest in super-post-Panamax cranes that can expedite loading and unloading operations. But is this the best way for your port to increase its efficiency? Do you have the processes and systems in place to be able to handle a dramatic increase in cargo quantities? Are you simply following the pack by making high capital infrastructural investments? How do you best spend what budget you do have? A way to help you realize efficiency gains across your entire operations is to invest in the right Terminal Operating System (TOS). From the ship to the gate and everywhere in between, including yard, rail and road, in-machine, and back office, a TOS touches all areas of your operations and is a logical investment to make before you dredge or purchase heavy equipment. By investing in the right TOS you are working smarter. Without a substantial capital outlay you can keep the assets you currently have, use software to make them work harder, and extract more value. Doing this will help you realize your return on investment faster, allowing you to streamline your operations and remove any friction points. This will ensure that when you do make the decision to purchase machinery you are able to hit the ground running and be even more aggressive in the market.
terminaloperator.com
terminal operating systemS
then be leveraged to maximize the return on future heavy infrastructure projects, further reducing risk and increasing value.
Risk and reward Investing in a TOS as your first step on the automation ladder can significantly reduce the level of risk traditionally associated with heavy infrastructure purchases such as new cranes. It’s all about how you manage this level of risk, the speed at which you can realize returns, and the value that those returns provide. With a lower level of upfront expenditure and less time for implementation, the addition of a TOS provides a fast return on your investment, allowing you to manage your risk profile more effectively as you build towards increasing productivity and efficiency throughout your operation. The benefits of a well-used TOS can
Investing in a TOS as your first step on the automation ladder can significantly reduce the level of risk traditionally associated with heavy infrastructure purchases such as new cranes.
CHAOS
CALM
The chaos of a multi-lane entry point
The calm from streamlined processes and systems
Trucks arriving randomly
At the gate Streamlining your gate operation can result in a positive flow-on effect throughout your operation. Move from chaos to calm by pre-booking vehicle visits, pre-notification of cargo through online web portals, and using mobile devices for faster checking at the gate. In the yard Bring calm to your yard by using your TOS to auto-plan yard areas and set up and manage designated sub-terminals. You can
Pre-booked cargo Incorrect paper work
Manual cargo & driver checks
Streamlined queues – booked slots
Real-time cargo and driver clearance
Cargo retrieved and ready for placement on truck
Emissions (from trucks idling) Long wait times
(waiting for cargo to be located and delivered to truck)
terminaloperator.com
Core areas you can put under the microscope in the search for calm… There are a number of areas across your terminal where introducing even the smallest of changes can have a significant impact on the running of your business. So where do you start? Try to focus on the core areas of your operation and look for ways to reduce downtime and increase performance. Three areas that provide multiple opportunities for change are: • At the gate – particularly online vehicle booking and pre-notifications • In the yard – encompassing management of machines • General business operations – including visibility of performance
Mobile application - worker checking a truck with a mobile device
Quarterly — 4th Edition 2015
89
TERMINAL OPERATING SYSTEMS
90
Quarterly — 4th Edition 2015
terminaloperator.com
terminal operating systemS
CHAOS
CALM
The chaos of a busy yard
The calm from streamlined processes and systems
Trucks waiting for their cargo
Auto yard planning – hazmat segregation Top-pick searching stacks for containers
Reefer monitoring
Moving containers to get the one you need
• Sub-terminals – designated areas for project cargo etc Orderly machine moves, real-time queuing (RTQs) on in-cab devices (RMG module)
On dock rail
Cargo stored in random laydown areas
also manage the movements of yard machines more effectively by using in-cab mobile devices to queue jobs and ready cargo for pick-up and delivery. Business operations Use data from your TOS to avoid the chaos of a fragmented organization. Identify and manage cargo transactions to ensure you avoid revenue leakage and use reporting to provide increased visibility of any bottlenecks across your operation. Finding the calm The sheer scale of operations on a port combined with the multitude of players involved can often bring about bedlam.
Mobile devices for monitoring reefers
Cargo retrieved and ready for placement on truck
With so many moving parts on a port, you need to analyze your whole operation and identify where you can seek out efficiency gains. Some gains will be small, others more significant. Importantly, it is the accumulation of all these small and larger gains that will ensure a faster return on your investment than if you sink finances into costly infrastructure such as cranes and machinery. A TOS is how you bring calm to all of this, and take some control. With control comes profit and a greater ability to secure your future. If you’ve got a TOS, it doesn’t mean you’re not going to invest in capital assets. You are. You’ll just be calmly going about your business; you won’t be running on the spot. l
CHAOS
CALM
The chaos of a hectic operation
The calm of a well run business operation
Has the customer been charged for all the services provided?
The status of the operation is not quickly and easily accessible i.e no reporting
Reduced revenue leakage (by capturing all transactions in the systems)
Enhanced reporting information and accuracy – visibility, whole operational view
Increased visibility of operational bottlenecks can identify where the root cause is Lack of room, real estate at a premium Unaware why certain parts of the organization are causing problems
terminaloperator.com
Small increases in efficiency = greater efficiency across the entire operation
Enhanced use of physical operational footprint
• •
Increasing productivity and attractiveness doesn’t always require large capital investment (cranes, berths, etc.) There are opportunities for short/medium term gains (ROI) Put your organization under the microscope and look for areas where efficiencies can be made
About Master Terminal from Jade Software Master Terminal is a terminal operating system (TOS) which solves the complex problem of managing containers and mixed cargo. Ports use our software to gain a single view of their operations, enabling them to make smarter decisions faster, maximize operational efficiency and improve their competitiveness. Built for the agile port, Master Terminal is a stable and comprehensive solution that forms the core of your port’s information systems. It is flexible enough to handle multiple cargo types and can be modified to reflect your port’s specific challenges. Master Terminal is backed by a dedicated team of industry experts. Our proven implementation methodology, second to none in the industry, gets you up and running quickly, minimizing disruption to your business. For the growing, ambitious port, Master Terminal helps you compete hard for a shipper’s business, no matter who you are up against. jadeworld.com/logistics
Quarterly — 4th Edition 2015
91
TERMINAL OPERATING SYSTEMS
Navis Furthers TOS Innovation with Launch of N4 3.1 New Version Supports Industry Move to Automation; Delivers Enhanced Capabilities for Rail Operations, System Performance & N4 Migrations at Terminals Globally
A
s a growing number of container terminals globally evaluate and adopt automation to address complex industry challenges, it is essential that terminal operating systems (TOS)—often the heart of the terminal—evolve in order support new operational requirements. In response to this market need, Navis, a part of Cargotec Corporation, and provider of operational technologies and services that unlock greater performance and efficiency for the world’s leading terminal operators, announces that N4 release 3.1 is generally available. N4 release 3.1 demonstrates Navis’ continued commitment to continuously improve the TOS’ usability, enhancing operational efficiency for its customers, delivering a platform that is extensible and flexible enough to meet terminal needs now and in the future. N4 3.1 is the first major release of N4 since 2.6 was unveiled in April 2014. “As operational challenges mount for the global container shipping community, the industry as a whole is actively seeking out solutions—in the form of innovative technology, equipment and best practices—that can help improve performance at the terminal and keep up with the increasingly complex challenges that our industry faces. At the same time, we are focused on improving the service delivery for our customers,” said Andy Barrons, SVP and CMO of Navis. “For nearly three decades, Navis has, and continues to be, the trusted partner for terminals globally. N4 3.1 represents a culmination of unmatched technology excellence and industry-leading experience from Navis that provides terminals of all shapes and sizes with the tools needed to succeed in the new world of shipping.” New features and enhancements in N4 3.1 include: Automation: Functionality in N4 3.1 extends optimization for terminals using automated
92
Quarterly — 4th Edition 2015
equipment. Support for Automated Shuttle Carriers (ASH) as horizontal transport in conjunction with Automated Stacking Crane (ASC) as yard cranes will be delivered in phases. Release 3.1 delivers phase 1 of this functionality with full support planned to be available in release 3.2. N4 3.1 has been integrated and tested with the Kalmar TLS Equipment Control System (ECS). Navis has also enhanced its open and flexible automation framework to support single or dual Cantilever Automated Rail Mounted Gantry Cranes (C-ARMG). Up to 3 C-ARMGs can be positioned in a yard block. For yard cranes N4 3.1 introduces a vendor-agnostic database interface that is intended to be used for integration with ECS in semi-automated terminals. The Crane Automation System (CAS) API for N4 has been available since N4 2.5 as a generic and vendor- agnostic API for communication between N4 and CAS and OCR systems. It
is extensible and adaptable to the different implementations and particularities of thirdparty vendors. Advanced Rail Operations: This shift towards developing more sophisticated on-dock rail operations has magnified the added focus on decoupling the delivery of containers to and from the rail transfer points, as well as making the use of the RGCs as efficient as possible. Thus, N4 3.1 includes functionality and optimization for Rail Gantry Crane (RGC) schedulers, moves, interactions and automation. An integral RGC scheduling component has been developed within N4 3.1 that will utilize existing rail planning capabilities along with existing ASC, AGV and, Terminal Tractor schedulers. Most critical is to ensure the smooth flow of containers to and from the rail via existing Prime Route for Terminal Tractors (PR- TT) logic and timely delivery of planned moves in a logical order from the ASC stacks via the ASC Manager.
terminaloperator.com
terminal operating systemS
Architectural and System Performance Improvements. N4 3.1 has been performance tested for transshipment operations at 12 million TEU. Additionally, Navis continues work in this release to streamline chassis and bundling handling, improve chassis visibility and offer the ability to manage multiple containers on a chassis. Bundled flat racks are now managed as separate units in 3.1. As part of this release, the Unit model in N4 has undergone extensive retrofitting to enable terminals to manage operations where two or more containers may be placed on a line chassis or cassette. The ability to twin carry containers on a cassette improves the productivity of the TTs moving containers between the yard stacks, the quay, and the rail ramp. The changes apply to cassettes and uniquely identified chassis, typically line chassis, when used for decoupled terminal tractor operations. When you land a container on a cassette/chassis, N4 does not retire the cassette/chassis unit and it remains available to receive additional containers. All events related to the cassette/chassis are recorded against the cassette/chassis unit. This refactor also affects how accessories and bundles are represented in N4. Bundling flat racks or attaching accessories do not any more retire the Units (as it did in prior versions of N4). Instead these flat racks and accessories continue to exist as individual units. A new field called UnitCombo has been introduced to track the role a Unit currently plays. Finally, Navis has implemented new ActiveMQ MBeans that can help system administrators and Navis Support to analyze slow ESB performance. The new MBeans provide views on message processing rates for the Java Messaging Service (JMS) messaging queues and can help trouble shoot and get to the root cause of some of the performance issues caused by problems in messaging between the various components.
in the transition. In particular, N4 3.1 delivers advanced support for RTG twin lift, straddle carrier dispatching and the crane team app for manned operations. It also includes an enhanced narrowband solution for equipment control dispatch, improving the tools and methodology for Express to N4 data migration and developing a third party host interface to maintain existing TOS functionality.
Improved Migration from SPARCS to N4 As more and more customers migrate from legacy SPARCS to N4, N4 3.1 includes key features that aid
User experience As a result of direct collaboration with customers, N4 3.1 also offers a new web-based, “touch-aware” Crane Team user interface. The
terminaloperator.com
UI, intended for hatch clerks, crane drivers, foremen or quay side operators, is designed to improve user visibility and interaction, operational performance and equipment utilization. N4 3.1 has added three features to the Crane Team UI (CTUI) that improve the usability for conventional, semi-automated, and fully automated terminals: • • • •
Color Containers by Category Hide a configurable number of digits in container IDs Highlight the next container in the sequence Add context menus to graphic variforms.
Quarterly — 4th Edition 2015
93
Supported by
Customs, Security & Surveillance
customs, security & surveillance
Smiths Detection Unveils Next Generation Security System for UAE’s Critical Infrastructure Assets at Intersec 2016 HI-SCAN 6040C X-Ray Scanner designed for detecting current and future threats to key establishments
D
ubai, United Arab Emirates, 18 January 2016: As part of its commitment to next generation security systems that further strengthen UAE’s homeland security infrastructure, Smiths Detection today unveiled the HS6040C, at Intersec 2016. The new advanced X-ray system has been designed specifically to screen hand-carried items at the entrance of critical infrastructure assets like government buildings, hotels, exhibition centers and sporting facilities. Paul Baker, Regional Managing Director Middle East of Smiths Detection, said: “Security incidents in public spaces around the world demonstrate how vulnerable our
96
Quarterly — 4th Edition 2015
society can be. Our new HI-SCAN 6040C X-ray inspection system is tailored to the security needs of areas where large numbers of people come and go every day. The upgraded electronics and software ensure that it is prepared for both current and future security requirements for critical infrastructure assets in the UAE and wider Middle East”. The HI-SCAN 6040C meets all requirements for the screening of bags, packages and other objects for prohibited or dangerous items in buildings. These include government offices, embassies, palaces, banks, hotels, office buildings, as well as customs checkpoints, power plants and other utilities. With its attractive design and small footprint, the HI-SCAN 6040C fits easily into any entrance area. Its electronics and software can be easily upgraded to meet future security requirements and scan for new or specific threats efficiently.
Paul Baker
terminaloperator.com
customs, security & surveillance
“At Smiths Detection, we have supported the development of UAE’s security infrastructure over the past three decades and our commitment to support the country’s homeland security infrastructure is resolute”
terminaloperator.com
“At Smiths Detection, we have supported the development of UAE’s security infrastructure over the past three decades and our commitment to support the country’s homeland security infrastructure is resolute”, added Paul Baker. The high quality of the X-ray images makes detection of potential threats simple and minimises errors. Intelligent image display functions support the operator by distinguishing between organic and inorganic materials on the screen. This is particularly important for the rapid detection of explosives, weapons, drugs, food or money.
Functions to check operational status during startup and use, give regular information on the overall condition of the unit and make it easy to operate. Diagnostic systems provide operators and technicians with specific information for troubleshooting and help reduce downtime. HI-SCAN 6040C can be included in a complete security checkpoint by adding other detection technologies from Smiths Detection such as people-screening systems or trace detectors for explosives or narcotics. l
Quarterly — 4th Edition 2015
97
Environment & Sustainability
Environment & Sustainability
Environmental due diligence of port and terminal transactions by Steve Challinor, Royal Haskoning DHV
This article describes two of the principal issues covered by environmental due diligence assessments for port and terminal transactions, such as acquisition and concession agreements. It is derived from the author’s presentation at TOC Middle East, held in Dubai, in December 2015.
E
nvironmental due diligence is becoming an increasingly important part of the overall valuations and risk assessments underpinning successful transactions for port and terminal assets (i.e. property, infrastructure, equipment). It is becoming increasingly relevant in times of expanding environmental legislation, regulation, responsibility and awareness. It is also becoming increasingly required to satisfy corporate requirements (e.g. environmental
100
Quarterly — 4th Edition 2015
management systems, corporate social responsibility) and lender requirements (e.g. International Finance Corporation’s Performances Standards, Equator Principles). Environmental due diligence drivers Environmental due diligence is driven by need for both parties to identify and understand the business and legal risks relating to environmental requirements, and to consider these risks and liabilities as part of
the transaction process. For example, in terms of business risks, environmental permitting and compliance requirements can be material valuation considerations for integrating and operating existing assets, and for planning, investing and operating new assets. Business risks can manifest as investment and operational delays, investment and management costs, site remediation and restoration costs, and corporate reputational costs. In terms of legal risks, environmental liabilities (e.g. permit non-
terminaloperator.com
Environment & Sustainability
anticipated expenditures and contingencies to factor into transaction value negotiations, and advice to legal counsel in support of protection mechanisms (e.g. warranties, identifications).
compliance, pollution) can be material liability considerations for planning and managing existing and new assets. Legal risks can manifest as stop-orders, fines and imprisonment for noncompliance with permit conditions, and for contamination and pollution events, including events prior to a transaction. Environmental due diligence process The actual form of environmental due diligence process will depend on the transaction type (e.g. acquisition, concession) and the environmental risk associated with the port and terminal assets (including fixed assets such as port infrastructure and non-fixed assets such as equipment and vehicles). The essential components of environmental due diligence involve pre-transaction identification of risks, and a subsequent cost assessment of material risks and liabilities to inform transaction negotiations and protection mechanisms.
terminaloperator.com
Focus areas for the environmental due diligence process are: • Environmental site assessments for contamination. • Environmental audits for permitting and compliance. Following the review, a cost assessment can be made of material risks and liabilities. This assessment includes the identification of material risks and a quantification of the
For some sites, particularly undeveloped greenfield sites, a phase 1 assessment may be adequate to confirm that risks are low and acceptable, and the buyer / concessionaire is sufficiently protected against contamination.
Site contamination Site contamination is a principal matter for environmental due diligence because a buyer / concessionaire acquiring contaminated assets through a transaction has little opportunity for defence against liabilities (e.g. ‘innocent landowner’ defence) if the party did not appropriately investigate the risks prior to the transaction. Contamination can be a major issue, particularly at brownfield sites and operating ports and terminals, but should not be ignored at greenfield sites. Environmental due diligence of contamination issues involves a phased assessment process. It starts with a ‘phase 1’ environmental site assessment, which typically includes researching the historical and current use of the assets through various information sources such as documents, maps, plans, photographs, aerial / satellite images, media, directories, records and reference materials. To a certain extent, the phase 1 assessment information may be provided by the seller / grantor via a physical or virtual data room. However, it is good practice for the buyer / concessionaire to collate information beyond that provided by the seller / grantor. The phase 1 assessment also includes researching neighbouring properties and facilities for historical and current activities that may be influencing the transaction assets (e.g. potentially contaminating activities). The phase 1 assessment may include other activities such as site reconnaissance to identify the presence of recognised environmental conditions (e.g. polluting materials, hazardous substances) and to investigate permit compliance (e.g. environmental management records), and interviews with persons familiar with the assets and their operations (e.g. owners and personnel of the assets and neighbouring assets, subject to confidentiality requirements). The phase 1 assessment ends with a report of its findings on recognised environmental conditions and potential contamination. For some sites, particularly undeveloped greenfield sites, a phase 1 assessment may be adequate to confirm that risks are low and acceptable, and the buyer / concessionaire is sufficiently protected against contamination. For other sites, particularly brownfield sites and operating ports and terminals, a phase 2 environmental site assessment may be required to investigate recognised environmental conditions to an adequate level of due diligence. A phase 2
Quarterly — 4th Edition 2015
101
Environment & Sustainability
assessment typically includes some degree of intrusive site investigation of environmental media. The scope of the site investigation is informed by the findings of the phase 1 assessment. For ports and terminals, a site investigation may include collecting samples and undertaking laboratory analyses on a range of environmental media (e.g. soil, groundwater, marine sediment), site wastes (e.g. abandoned infrastructure and cargo) and building materials (e.g. asbestos). The phase 2 assessment ends with a report of its findings on the presence and interpreted extent of contamination. The findings of a phase 2 assessment may be inconclusive because they may identify the presence of contamination, but may not define its full extent at the site and the influence on / of neighbouring sites. At this point the contamination risk may be considered a sufficiently high material risk or liability that it influences the course of the transaction through value negotiation and legal protection. Permitting and compliance Permits and conditions can be required for a range of regulated port and terminal activities including, for example, infrastructure development (e.g. construction works and/or equipment installation), operational activities (e.g. hazardous cargo storage, storm water discharges, waste disposal, pollution control, public nuisance) and maintenance activities (e.g. maintenance dredging). Permits (or licences) are granted by legally empowered bodies such as national government ministries, regional and local government authorities, and other parties such as port authorities – and are legally enforced. They can be granted subject to one or more conditions that the port and terminal operator must comply with. Permits are granted under the provisions of supporting legislation, so they are legally binding and can require
102
Quarterly — 4th Edition 2015
Permits (or licences) are granted by legally empowered bodies such as national government ministries, regional and local government authorities, and other parties such as port authorities – and are legally enforced.
the permitted parties to demonstrate regulatory compliance through prescribed monitoring and reporting. Noncompliance can be a legal offence that can result in port and terminal operations being stopped until non-compliance issues are rectified, and lead to offending parties being subject to liabilities including fines and/or imprisonment. In addition to environmental site assessments, environmental due diligence requires an audit of the environmental permitting and compliance requirements associated with existing port and terminal operations and, potentially, future investments. For operating ports and terminals, audits focus on whether the correct environmental permits are in place and being complied with. Auditing can be a time consuming task because there can be many relevant regulatory requirements for environmental protection and management. Essential auditing tasks can include: • Auditing whether all relevant permits are in place and, if so, whether they are transferable via the
terminaloperator.com
Environment & Sustainability
The costs of environmental due diligence depend on the effort and scope of work, but are more than likely to be significantly lower than the costs of material risks and liabilities that may be missed prior to transaction negotiation and acquisition / concession agreement completion. l
•
•
•
•
transaction and, if so, whether they will lapse (and need re-applying for) at some point after the transaction. Auditing whether all relevant permit conditions are clearly prescribed (rather than ambiguous) and, if so, acceptable. Auditing whether all relevant permit conditions are being met and, if so, what level of commitment is involved for monitoring and reporting (including financial commitment). Auditing historical and/or outstanding non-compliances and associated liabilities (e.g. fines), and track-records of relationships with regulators (e.g. reputation relating to monitoring, reporting and compliance) and the public (e.g. complaints relating to nuisance). Auditing environmental management systems and procedures, including non-conformances and corrective actions, and contingency planning and implementation (e.g. for pollution prevention and control).
The audit process ends with a report of its findings including an assessment of the environmental permitting and compliance issues that potentially pose a material risk; that is, a significantly high risk or liability based on an assigned monetary trigger level (e.g. a value set in relation to the transaction value) that
terminaloperator.com
Notes about the author
needs to be factored into the transaction through value negotiation or legal protection. Benefits of environmental due diligence Environmental due diligence benefits the buyer / concessionaire by informing acquisition / concession value negotiations, and by informing legal provisions to incorporate into the acquisition / concession agreements to cover costs and liabilities.
Steve Challinor is a technical director for Coastal & Marine Environment at Royal HaskoningDHV. He trained in the UK as an environmental scientist at the University of Leeds and Imperial College, London and has since spent 20+ years working in environmental consultancy. Steve specialises in the environmental assessment and management of port, terminal and coastal infrastructure development, including dredging and land reclamation, and has worked on projects across the world. He manages a number of Royal HaskoningDHV’s principal accounts and lead services such as Environmental Impact Assessment (EIA), Environmental Management Plans (EMPs) and Environmental Due Diligence (EDD), and has particular interests in the environmental enhancement of port and terminal development, artificial reefs, and the dredging of contaminated sediments. Steve is a current member of the Institution of Civil Engineer’s (ICE) Maritime Expert Panel and the British Standards Institute’s (BSI) Panel for the update to Maritime Structures BS 6349-5: Code of Practice for Dredging and Land Reclamation. He is a former member of the Central Dredging Association’s (CEDA) British Section Committee and Working Group on Monitoring Procedures, and the International Navigation Association’s (PIANC) Working Group 10 on Environmental Risk Assessment of Dredging and Disposal Operations and Working Group 136 on Sustainable Maritime Navigation. In addition, Steve has been the main author for four Construction Industry Research and Information Association (CIRIA) publications on dredging, beach management and artificial reefs, and he is a former part-time university lecturer teaching environmental management to civil and coastal engineering students.
Quarterly — 4th Edition 2015
103
port tyres
port tyres
“The Game Changer” Inauguration in grand style of the modern Bhuj plant, a vital piece on BKT’s chessboard BKT’s most recently opened a $500 million Bhuj manufacturing facility which is testament to the company’s commitment to produce best-in-class products from state-of-the-art facilities.
1
26 hectares of barren desert with a handful of withered and windswept shrubs. No water, no electricity. – That’s how the area looked like. Here, within a few years BKT has created a real showpiece out of nothing. A self-contained production plant representing the state of the art industrial equipment and infrastructure along with facilities for employees.
The site is located in Bhuj in the State of Gujarat, India at a distance of about hundred km from the Pakistani border and 60 km from the Port of Mundra on the Arabian Sea. After the start of construction works in January 2011, an eight-km-long pipeline for drinking water as well as thirteen kilometers of electricity lines were laid. The first tyre rolled off the production lines in March
Spread over an area of 120 hectares, the new plant has the capacity to produce over 120,000 tons a year of premium tyres for a wide range of applications. 2012, even if the entire project will be completed by the end of 2016. The BKT Bhuj plant was inaugurated at the beginning of December 2015 in the presence of numerous guests from all over the world. Specific
108
Quarterly — 4th Edition 2015
terminaloperator.com
port tyres
The Bhuj testing track, the one and only in India, has been projected for testing tyre performance and driving comfort on different surfaces from uniform road conditions to rough terrain. events took place involving on different occasions customers, distributors and partners. During the opening ceremonies, guests had the opportunity to give an admiring glance to the production units provided with modern compound mixers, complex equipment for the production of steel rings and new vulcanizing presses even for large tyre sizes. The tyres currently produced in Bhuj include 22 sizes of the Maglift solid tyre and various measures of Liftmax LM 81 tyre, both for forklifts, in addition to Portmax PM 93 in size 280/75 R 22.5 for straddle carriers, and the giant Earthmax SR 45 Plus tyre for dumpers. The Bhuj testing track, the one and only in India, has been projected for testing tyre performance and driving comfort on different surfaces from uniform road conditions to rough terrain. Many Indian producers have already applied for using the BKT track for their tests. Close to this facility, the new R&D Center is being built for research on new polymers and tread compounds. On the other side of the complex, a thermoelectric power plant covers the needs for water vapor and electricity throughout the entire site. Enormous water collection tanks provide water reserves even in droughts. “The primary resource for the growth and success of any business is its staff,� Mr. Arvind Poddar, Chairman
terminaloperator.com
Quarterly — 4th Edition 2015
109
port tyres
“From an initial production of 10 MT per day, we are currently producing 600 MT per day, which will eventually reach 800 MT per day by 2017. From 200 SKUs, we currently offer a complete product portfolio consisting of over 2,400 SKUs.” and Managing Director of BKT, states. Over 6 hectares of the Bhuj site – fully in line with this philosophy - a small town for the employees was built including modern flats for 406 families, a mall, a green area, a recreation center, a medical center, and a fire station. The fire brigade takes action even in case of emergencies outside the Bhuj plant. In addition, there are 90 rooms for university students who take part in an industryuniversity cooperation project. Like all BKT plants, Bhuj has obtained the ISO 9001: 2000 Quality Certificate. As far as production parameters, quality control and environmental regulatory requirements are concerned, BKT adheres to the strictest international standards. “The Bhuj production site is a milestone in BKT’s growth,” Ms. Lucia Salmaso, Managing Director of BKT Europe, says, “not only for its high levels of technical and quality standards, but also because it is the BKT plant that is situated at the closest distance to a port - a decisive factor to speed up delivery time. Likewise, this is a great benefit for companies that have chosen BKT tyres as original equipment”. Alluding to the game of chess, Mr. Arvind Poddar illustrated BKT’s philosophy in his inauguration speech as follows: “There is a unique trait that distinguishes a true champion from a mere player: the versatility to adapt his/ her strategy to the challenges entailed in each game. One move after the other, BKT has created and reached its objectives. Thanks to the new Bhuj production plant, the company is now ready to change the game acting as the “game changer” on the global chessboard.
110
Quarterly — 4th Edition 2015
“From an initial production of 10 MT per day, we are currently producing 600 MT per day, which will eventually reach 800 MT per day by 2017. From 200 SKUs, we currently offer a complete product portfolio consisting of over 2,400 SKUs. From 100 molds a year, we currently make over 300 molds to ensure final product quality and design, along with a very short time to market,” he added. Spread over an area of 120 hectares, the new plant has the capacity to produce over 120,000 tons a year of premium off highway tyre products for all market segments such
as agricultural, construction and RTGs, reachstackers and trailers. Today, BKT products are sold in over 130 countries worldwide through its network of channel partners. In addition to cutting-edge production technologies, the Bhuj plant also encloses large warehouse areas equipped with advanced facilities. The site enjoys a geographically strategic position near major communication roads and commercial ports in order to deliver products in the shortest possible time. l
terminaloperator.com
Be part of the next big transformation But you set the pace With the Kalmar AutoRTG technology you can start the transformation of your existing RTG fleet today, knowing that we have the knowledge and experience in both equipment and process automation to take you through the automation process at your pace. Automating your RTG fleet will give you a safer workplace with higher productivity and better work flow predictability.