2019

MARITIME CONTAINER TRANSPORTATION: MERTZANIDIS THE CASE OF THESSALONIKI CONTAINER MANOLIS

TERMINAL

Aristotle University of Thessaloniki | MSc Logistics and Supply Chain Management

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Table of Contents 1 Introduction ...... 5 1.1 The importance of maritime transportation ...... 5 1.2 The role of transport in the Supply Chain ...... 6 1.3 Problem Scope ...... 7 1.4 Literature Review ...... 7 1.5 Objectives ...... 11 1.6 Overall Methodology ...... 12 1.7 Types of Cargo Transported by Sea ...... 13 1.8 Maritime Transport Characteristics ...... 13 1.9 Harbor Challenges...... 14 1.10 The Maritime Container Transportation ...... 14 1.10.1 Definition ...... 15 1.10.2 History ...... 15 1.11 Container and Container Types ...... 18 2 Containerships ...... 30 2.1 Types of container ships...... 30 2.2 Design advantages ...... 31 2.3 Construction features ...... 33 2.4 Evolution and Classes ...... 37 3 Stowage/Securing/Lashing ...... 39 3.1 The BAY-ROW-TIER System ...... 39 3.2 Container Securing-Container Securing Devices ...... 41 3.3 Container Lashing Methods ...... 46 3.4 DNV Securing and Lashing Regulations ...... 51 4 Risks and Issues of Maritime Container Transportation...... 52 4.1 Transportation of hazardous containerized cargo ...... 55 5 Container terminals ...... 59 5.1 Container Mechanical Handling Machinery ...... 62 5.2 Container Handling Systems, Strategies and Arrangements ...... 65 6 Thessaloniki Port ...... 70 6.1 History ...... 72 6.2 General Information ...... 74 6.2.1 Service Offering ...... 78

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6.3 Thessaloniki Container Terminal ...... 79 6.3.1 The project of the Full Informatics System for Container Handling ...... 80 6.3.2 Port Master Plan ...... 81 6.3.3 The Expansion of the Container Terminal of Thessaloniki with Figures ...... 82 7 Competitiveness and SWOT Analysis of Thessaloniki-Durres-Burgas-Bar CT ...... 83 7.1 Competitiveness Analysis ...... 84 7.1.1 Containerized Cargo Competitiveness Analysis ...... 84 7.2 SWOT Analysis ...... 85 7.2.1 SWOT Analysis Container Terminal of Thessaloniki ...... 85 7.2.2 SWOT Analysis of the Competitive Container Terminals ...... 87 8 Tariffs and Traffic Comparison ...... 96 8.1 Tariffs Comparison ...... 96 8.1.1 Loading and discharge cost of a Full 20’ and 40’ Container ...... 97 8.1.2 Yard Handling Cost of a Full 20’ and 40’ Container ...... 98 8.1.3 Storage Cost of a Full 20’ and 40’ Container, Estimated for a Period of 31 Days per Size and per Direction...... 98 8.2 Graphical Representation and Comparison of the Container Traffic (TEU’s) per Terminal ...... 100 8.2.1 A 2019-2021 Container Traffic Forecast (TEU’S) per Terminal ...... 100 9 Conclusions and Future Research ...... 101 9.1 Future Research ...... 103 9.2 References ...... 104

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Abstract

Containerization has been a revolutionary step basically for maritime and land transport. Since the business world understood its advantages, the transport of containerized cargo through seas has been multiplied several times. The basic aim of this paper is to present the basic elements of the maritime container transport and focus to the broader central Balkan regional container terminals and their relation to the container terminal of Thessaloniki.

Initially it is described the importance of transport and its role in the supply chain, the types of cargo transported on sea, the maritime transport characteristics and the challenges that face the harbors as part of global supply chains. Secondly, it is presented the historical background of the maritime transportation of containers and is given a closer focus on the evolution of the container vessels (design advantages, construction features and classification). Later on, are described some key procedures of onboard container handling such as stowing, securing and lashing and there are presented relative risks and issues as well as it is analyzed the issue of the maritime transportation of hazardous containerized cargo. Chapter 4, is focusing on the analysis of the container terminals and their operational role (handling strategies, methods and equipments), and chapter 5 presents Thessaloniki Port and more specifically the container terminal of Thessaloniki Port. There has been analyzed its current situation and its future expansion plan as well as its route to a full informatics handling system. At this point, there is a competitiveness analysis with its basic regional competitors (Durres, Bar and Burgas) container terminals. In chapter 6, initially, it is attempted a swot analysis of the four container terminals in order to identify the strengths, the weaknesses, the opportunities and the threats for each container terminal and secondly there is a quantitative approach to the tariff and traffic comparison of each terminal in order to determine the fluctuations of the pricing for some vital container terminal operations as well as the volumes of TEU’s that each container handles. The last parts of the 6th chapter consists of: a forecast attempt regarding the traffic of TEU’s for each terminal for the following three years (2019-2020-2021) using the Excel program and of a graphical comparison of the main logistics performance indexes for the states that compete in the broader region of the southern Balkans.

Key Words: Containerization, container terminal, containership, TEU, stowage, securing, lashing, container traffic, container capacity, logistics performance indexes, Thessaloniki Container Terminal

1 Introduction

1.1 The importance of maritime transportation Today the maritime transport is maintains the main role in a global scale, and on this sector is based the international trade. Maritime transport is an effective, cheap and safe solution to transfer bulk, liquefied, gas or containerized cargo and is the main activity that protects the operational function and facilitates the development of the global economy. The development of the global economy is based on the international trade. The international trade is functioning through the sector of international transportation. Almost 90% of the

[5] global production of goods is transferred on sea due to the fact that maritime transport offers several advantages compared to the other means of transport (road-rail-air). The globalization of the economies imposes the goods to be shipped in large volumes with the least possible cost and under time limitations. Such a need has lead to the construction of ultra large vessels that are able to carry large amounts of cargo at once, fact that helps the shipping businesses to achieve economies of scale.

Container vessels size and capacity has been multiplied several times the last decades. From the first generation of container vessels (by 1970) of which the width was up to 215m. and the container capacity 2.500 TEU’s today shipyards are able to construct the sixth generation of container vessels (400m. and 21.000 TEU’s). Such vessels can carry large amounts of cargo while at the same time reduce the transportation cost as much as possible. While by 1970, 10% of a price of a product was related to a maritime transport fee, today such a percentage has been reduced to 3%. Also maritime transport is-in comparison with the other means of transport (air-truck-rail)- is the most environmentally friendly way to transport goods as it is shown on the table below;

Mode of transport CO₂ emmisions/tonne kilometer Ship 8gCO₂/tkm Rail 35gCO₂/tkm Truck 110gCO₂/tkm Train 665gCO₂/tkm

Generally the maritime transport sector-with the construction of larger, faster, safer and most efficient vessels- achieved to carry the goods even to the most isolated markets of the planet and to incorporate in such markets in the global economy. Also helped to the development of intergraded supply chains where it was needed and more specifically to occasions where the production line moved away from the consumption point. For example the fact of the constant transfer of the production outside the U.S or Europe to Asia designate the key role of the maritime transport sector for transferring raw materials and finished goods between the markets and the production points. To conclude, maritime industry is offering a cheap, safe, eco- friendly and an effective way to transfer large amounts of raw materials and finished goods (amounts that are impossible to be carried from airplanes, truck or trains) in every possible form (liquid, gas, bulk, and containerized cargo) around the globe. (Vidalis M., 2009)

1.2 The role of transport in the Supply Chain The term transport refers to the movement of products/people from a location to another. Transport is responsible for delivering the products from the initial supplier to the final consumer, through the supply chain channels. Such process is vital in every supply chain due to the fact that usually the products are produced in one location and consumed in a different location. Transport is the link for the different levels of regional and global supply chains. Transports occupy o large part of the supply chain cost. The success of a supply chain is closely related to the success of the transport process. The boost of the e-commerce

[6] increased the need for extended distribution channels, fact that affected the transportation cost. For example a door-to-door service for delivering a book purchased on-line is multiple times higher than the cost for delivering books with a truck to a book store of a city center.

Every company must identify which transport system fits better to its business in order to achieve the optimal handling and the maximum reduction of the transportation, inventory and warehousing cost.

‘’The low transportation cost lets a factory based in China to produce Barbie dolls with Japanese hair, made from Thailand’s plastic and American pigment substances as well as to distribute them to impatient girls all over the World.’’ (Vlisidou E., 2014)

Transportations are one of the most vital parts of the global economy for the following reasons:

 Make the raw materials available to the production units by transporting them from countries that there is supply to countries that there is demand. The production units use them in and the result is the produced product.  Make available to the customers around the globe products that have been produced in other different parts of the planet.  Increase the standard of living by contributing to the mass production of products with low cost. Production units are able to produce mass volumes of products due to the fact that the transportation cost has become lower than it was in the past. In that way economies around the globe are able to import products that are not able to produce and sell them in affordable prices. Transportation sector also boosts the economy by creating new jobs for people that are linked with the sector such as ship, train, airplane crews and new business for the industries (machinery production units, law/insurance companies, car industries etc) that are affected by transportations. Due to that fact the standard of living becomes better.  Also, they ease the international relations between different states and economic unions for cultural and commercial interchanges.

1.3 Problem Scope The main field that is based the current thesis is the maritime container transportation. The main subject that the thesis deals with is the maritime container transportation and the role of the container terminals in the Southern Balkan region. The thesis examines primarily the theoretical basis of the maritime container transportation market and secondly, the structural and operational capabilities of each competitive terminal which is involved in the market of such a region, and analyzes key factors that affect the competitiveness of each terminal.

1.4 Literature Review The current thesis deals with the maritime logistics and more specifically with the maritime container transport. It examines the maritime container transport and its close relation to the Container Terminals (CT). There has been already done a lot of research in the maritime container transport. The main sections that this thesis to covers initially, is the maritime container transport, secondly the container terminals infrastructure and processes that take

[7] place in these entities and finally, addresses the issue of the CT competitiveness and operational efficiency.

Initially, it is given high importance to the foundation of the maritime container market the steps that followed till the modern era and the advantages that were given to the businesses from the development of the massive container transportation through the seas. There have been analyzed also the different types of containers that are used today and their transport capabilities. In this step there have been covered the characteristics, the evolution and the capabilities of the container vessels. Also there is given attention to some technical features that have to do with the construction design of the container vessels, the stowage techniques that must be followed to avoid dangers, the different types of containerships, the transportation of hazardous containerized cargo, the-on board-container lashing, and a classification of risks and issues that might occur during the maritime container transport. This part of the literature refers to a historical initially and technical secondly, analysis of the maritime container transportation. The main findings of such an analysis deal with the advantages and the boost that the transportation of containers brought to the business world, the technical capabilities that they offer and the evolution of the container vessels-as the most important mean of transport-that connect global supply chains. The authors that cover such a research area are the following: (Cudahy B., 2006), (Kiantou A., 2009), (Panayides P., and Song D., 2012), (Vlisidou E., 2014), (Lee C., and Meng Q., 2014), (Athanasiadis I., 2014), (Zygomalas N., 2015), (Amoutzas I., 2015), (Levinson M., 2016), (Christopher M., 2016), (Mangan S. and Lalwani C., 2016).

Authors Methodology Findings Cudahy(2006) Historical evolution and The advantages Kiantou(2009) technical analysis of the that brought to Panayides and Song (2012) Maritime Container the business Vlisidou (2014) Transport and Container world the Lee and Meng (2014) Vessels. maritime Athanasiadis (2014) container Zygomalas (2015) transportation Amountzas (2015) and the evolution Levinson (2016) of large container Christopher (2016) vessels. Mangan and Lalwani (2016)

The second part of the research focuses on the Container Terminals as part of the supply chain, starting and ending point of the maritime container transportation, their operational character, infrastructure and the processes that take place in them. CT are facilities where the containers are moved between the different means of transport (sea-rail-road) and offer a group of services basically for handling, storage and forwarding the containers along the different parts of the supply chain. The containers arrive/leave the container terminal by sea, rail or truck. CT realize complex operations and handle multiple flows of containers

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(inbound or outbound) at the same time-between different means of transport- and therefore the most significant factors they have to deal with is time and cost. CT management is a critical, multidimensional process that involves optimization criteria in most of the activities that it deals with, such as: vessel turnaround time, stacking zone and equipment utilization optimization as well as optimization of the time the cargo is moved outside the area of the CT. Therefore there is a close relation between the processes that take place in the terminals, the equipment utilization and the modes of transport that are involved in container transferring. At this point researchers give their description to the entity of the CT, the processes that take part in a container terminal and the different handling systems, strategies and arrangements that the container terminals consist of. The literature review of that step, deals with the description and the definition of the CT, their operational character, the equipment that they use to carry out the container handling and the multiple processes that take part in the terminals. It is a technical analysis and presentation of the container terminals as entities. The main findings of that research specifies the role, the operational character, the equipment that is utilized to carry out its tasks and the different processes that take place in such an entity. Some researches that have been conducted in such direction are the following: (Kap Hwan K. and Gunther H., 2007), (Li et al., 2015), (Meisel F., 2009), (Gunther et al., 2005), (Zygomalas N., 2015), (Mangan S. and Lalwani C., 2016), (Sinani A., 2017), (Gargalis P. and Livadaras K., 2013), (Thanou E., 2015), (Gudelj et al., 2010).

Authors Methodology Findings Kap Hwan and Container Presentation Gunther (2007) Terminal: of the main Li et al. (2015) Description of components Meisel (2009) Processes, of a container Gunther et al.(2005) Handling terminal its Zygomalas (2015) Methods, infrastructure, Mangan and Lalwani Arrangements, its processes, (2016) Strategies and its Sinani (2017) Infrastructure. operational Gargalis and Livadaras Technical character and (2013) presentation of its Thanou (2015) the CT and its contribution Gudelj et al.(2010) components. to the maritime container transport.

The last part of the thesis consists of two sub-sections: a presentation of the CT of Thessaloniki and an analysis of its relation to the competitive container terminals of the area (Durres in Albania, Bar in Montenegro, Burgas in Bulgaria). In this section there is given much attention to qualitative and quantitative data analysis for each terminal such as throughput, equipment, infrastructure, expandability and tariff comparison. Through a SWOT analysis (Strengths-Weaknesses-Opportunities-Threats) for each terminal it is attempted to identify the special capabilities that differentiate the product offering, the

[9] disadvantages of each terminal as well as to identify potential opportunities and risks. The data was collected among each port authority publications and past scientific publications as well as from the publications of each port managing companies. The qualitative data such as the role of the draft, the expandability, the current and future infrastructure, the connection with the land modes of transport (rail-truck) etc were analyzed by the SWOT analysis. The quantitative part consists of a tariff comparison of the basic activities of a CT such as loading/unloading cost, yard handling cost and storage. The data was collected among the tariff invoice that is published in the beginning of the year and presents precisely the cost policy for each terminal regarding each service. Then the data was processed on Excel in order to be able to create pictorial representations of the price fluctuations. The last quantitative part consists of a throughput analysis for each container terminal and a forecast for the next three years. Once again, the data was collected by publications of the port authorities and processed through Excel in order to create statistical templates and forecasts for the throughput of each terminal as well as to compare them in terms of effectiveness. The main findings of the quantitative and qualitative analysis are used to extract some useful results of Thessaloniki CT role in the region. The past literature regarding the container transportation in the Southern Balkan region is the following: (Gogas et al., 2012), (Karakari D., 2012), (Kladias E., 2015), (Sgouras G., 2012), (Gargalis P. and Livadaras K., 2013), (Verani E., 2008), (Halkia E., 2016), (Gudelj et al., 2010), (Athanasiadis I., 2014), (Dragovic et al., 2016), (Thessaloniki Port Authority, 2018)

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Authors Methodology Findings Gogas et al. (2012) Thessaloniki, Durres, Identification of Karakari (2012) Burgas, Bar CT the most busy Kladias (2015) qualitative and Container Sgouras (2012) quantitative analysis of Terminal in the Gargalis and Livadaras (2013) the operations, South Balkan Verani (2008) infrastructure, Region. Halkia (2016) throughput and pricing. Identification of Gudelj et al. (2010) SWOT Analysis for the current and Athanasiadis (2014) identifying the current future capabilities Dragovic et al. (2016) and future strengths- of the examined Thessaloniki Port Authority weaknesses- container (2018) opportunities and terminals. The role threats. The analysis of each temrinal in was based on the examined qualitative and region, of their quantitative data structural and provided by operational dissertations, books and character, Port Authorities. The presentation-of quantitative data were their basic processed with Excel in operations-cost order to create pictorial analysis and a representation of the forecast of their timeline fluctuations. throughput for the next three years.

1.5 Objectives This thesis clarifies the current situation regarding the competition in containerized cargo transport in the region of Southern Balkans and extracts a role of Thessaloniki Container Terminal as a key player in the region. Through useful tools, such as competitiveness, swot, cost and data analysis it is proven the role of Thessaloniki Container Terminal as the Balkan Gateway for inbound and outbound containers. Initially there is a research done, on the theoretical background of maritime containerization as this is the main sector of the subject and secondly there have been done a research based on structural and operational data of the terminals that serve and compete in the region. There have been examined the competitiveness between the terminals in terms of liner connectivity, land and sea infrastructure, expandability and pricing. Such elements are very important in order to extract useful outcomes for the current and future potentials of a container terminal. The results indicate that Thessaloniki Container Terminal despite the difficulties that faces in initiating the expansion and operating better remains the top player among the examined container terminals. A role that is about to keep in the future too (based on a traffic forecast which indicates the strong position of the Container Terminal). The process to support such an opinion is the data which is collected through the port authorities of each examined port

[11] and the analysis of them in order to extract results which will support such an opinion. The most useful tool in the research is the traffic data (the number of containers that has been handled in each terminal among the years) and the analysis of them. Even though that Thessaloniki Port Authority has indicated that the container terminal of Durres is the main competitor of Thessaloniki Container Terminal the data shows the difference. The strengths- weaknesses-opportunities-threat (SWOT) analysis also supports such an opinion. The thesis indicates the importance of expandability and infrastructure for the container terminals and their attempt to survive in a market which is consecutively expanding.

1.6 Overall Methodology In this thesis it is analyzed the maritime container transport and the most important elements that it is consisting of, such as the container vessels and the container terminals. Later on it is analyzed the current and future situation of the container terminals in the South Balkan region.

The methodology that this thesis follows is initially a literature presentation of the maritime container sector, its initial steps and its evolution till the modern era. It is a summed up presentation of the literature that deals with the maritime transportation sector and presents all the theoretical background that the subject is based; the importance of the maritime container transport, the revolution that it brought to the business world, and the evolution of it till the modern era. Also there is a technical analysis of the construction features of the containership-as one of the most important elements of the maritime container transportation-and a technical presentation of some basic processes that are bound to the vessels such as stowage-securing-lashing-transportation of hazardous cargo etc. The technical data of this part of the thesis is a literature presentation-the theoretical background- of the maritime container transportation and are based on academic publications on the maritime container transport.

The part of the analysis of the CT is based once again on a literature presentation that deals with the container terminals. The container terminals are the second most important element of the maritime container transport sector and therefore need to be analyzed as well as the container vessels. In that step, there is a technical analysis of the CT as entities and a technical analysis of the processes and the machinery that they use to carry out their complex logistical processed. The data regarding the CT was collected by academic resources and reflect a literature presentation of them as the second most important element of the maritime container supply chains.

The last part consists of a mixed qualitative and quantitative analysis of the CT of the South Balkan region. The data was collected among academic resources and publications of the Port Authorities of each port. The analysis of qualitative data was critical in order to carry out the SWOT analysis and the analysis of the quantitative data was critical to carry out the cost, throughput and forecast parts of the thesis. The analysis of quantitative data is a very useful tool to produce pictorial patterns and make it easier for the reader to understand the current situation of that market in the examined region.

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Hence, there were used two methodologies for that thesis. The first one is a theoretical presentation of the academic literature regarding the maritime container transport sector and secondly there is a qualitative and quantitative approach that mostly helps to create proved results of the examined sector in the examined region.

Maritime Container Transport and Container Terminals Container Vessels •Technical Analysis of the CT infrastructure, •Presentation of the theoretical literature strategies and handling processes based on the background main literature directions

SKG-Durres-Bar-Burgas CT analysis •SWOT Analysis based on qualitative data •Competitiveness,Cost,Throughput,Forecast Analysis based on quantitative data

1.7 Types of Cargo Transported by Sea There are several categories of cargo that are transported on sea:

 Break Bulk Cargo: Break bulk cargo (bags, boxes, crates, drums, barrels) units must be loaded and stowed independently.  Containerized Cargo: Cargo that is transported in containers of which dimensions are 8 ft of width, 8.5 ft of height and 20,30 or 40 ft of length.  Palletized cargo: Cargo that is unified in pallets for easy stowage and handling.  Liquid Cargo: Cargo of liquids that is transported in tanks or drums.  Refrigerated Cargo: Cargo for sensitive alimentary products which is transferred frozen or refrigerated in refrigerated hulls or refer containers.  Heavy and Awkward Cargo: Cargo, of which size, weight and dimensions are making them difficult to move, is loaded or stowed. (Gkizakis et al., 2010)

1.8 Maritime Transport Characteristics The main characteristic of the maritime transport is the containerization of cargo. After 1970, and the boost of the container transportation there is increasing market demand and therefore, the offered transportable capacity is increasing too. Globalization, standard of

[13] living augmentation, and the consecutive increasing consumption of the developing countries are the main reasons for such a boost. Liner service vessels usually carry manufactured and industrial products. The main characteristic of the liner service is the large volumes that are transported and the large vessel capacity that is available to carry these large volumes of cargo. Therefore the relation between weight/size and transportation capacity is relatively low when at the same time the value of the transported cargo is high. (Sinani A., 2017)

1.9 Harbor Challenges Today the technological development affects all the sectors of the economy, hence the maritime sector too. Modern vessels are larger and carry modern technological systems. The more large and modern is a vessel the more difficult is to approach a non-modernized and small port. Ports and vessels technology and size should align in order to be able for the port to be approached by a modern and large vessel, load and unload her cargo etc. Therefore size and technology becomes an issue for the ports whilst the containership construction evolves.

The increasing demand for containerized cargo forces the interested parts to find new tactics in order to be able to carry the maximum possible quantity with the fastest way. Once more, the size of the harbor matters a lot because it should be able to provide safe mooring, high cargo storing capacity, fast service pace and low traffic issues.

Therefore, the harbors must align with the technological and size development of the modern ships in order to be able to provide high, fast and sharp service offering and not be isolated in a very demanding market which is the maritime sector. Expansions and new equipment supply is a vital move in that direction

The potential commercial value of the products that are transported by the service liners provoke the need for rapid and safe transport service in order to minimize the financial looses of the shipper due to the unused financial utility of the capital (Samprakos E., 2009)

1.10 The Maritime Container Transportation Container transport is one of the main parts of maritime economic sector. Most of the parts of the Earth surface is covered by sea, lakes and rivers. Since ancient years, humans tried to set sail on the sea and trade their goods and products around the world. Mass goods transportation was always an issue. Sea is the only way to carry mass volumes of products- i.e. bulk cargo like grain, raw materials and fuels- in long and short routes. Ports and container terminals have become one of the most important factors for the global supply chains and combined transportation networks. Hence, the competitiveness between the main ports is rising under the pressure for the maximum acquisition of clientele. Location, pricing and service quality are one of the main factors that affect the afore-mentioned clientele acquisition. The strategy of the directing management team of each port, affect its operational future and its future potentials. Future investments in machinery and premises,

[14] reasonable pricing, high quality of service offering and reliability towards its users ensures the correct operation and create a good reputation for the ports.

1.10.1 Definition The need to transport mass volumes of products between different regions that are separated by sea/lake or river justifies the need to develop and operate a maritime line that links those regions. Liner services connect the afore-mentioned regions. A maritime company is a commercial entity that operates with certain number of ships under certain administration and handling and offers a specific maritime offering between different times, ports and routes and prices.

Liner service transports cargo multiple times, with a fixed frequency and routes, between the ports providing in that way the potential to the importers and exporters to plan their own business and sales strategy. (Gkizakis et al., 2010)

The main types of ships for this market are the container vessels, the multipurpose vessels and the Ro-Ro (Roll on/Roll off) or Lo-Lo (Lift on/Lift off) vessels. The vessels of the service liner market can be classified in two categories:

1. Deep Sea Liner Services. Ships that sail and provide service for long merchant distances such as the ones that operate intercontinental voyages. 2. Feeder Services. Ships that operate regionally between ports of less merchant traffic.

There are several types of cargo in maritime sector but the most used is the container. Container is a metal or sometimes a mixture of aluminum and metal ‘’box’’ able to be filled and carried with cargo. Such design provides an easy way of transportation, protection of cargo, and safety of in-transit and unloading cargo. The main advantage of the container is that it can be tugged, stowed, and transported-by different means of transport- safely. (Zygomalas N., 2015) (Gargalis P.,Livadaras K., 2013)

1.10.2 History The concept of containerized cargo is quite old. The ancient Greeks used to utilize ceramic objects like amphorae to transport the goods that they were producing (i.e. oil or wine) to the city-states they use to have trading relations. Later civilizations use to utilize big wooden cases to pack and transport their valuables through sea to other destinations and trade routes. However, the mass utilization of containers is a modern era concept of which adaption began around 1960.

Nowadays, containers are massively in use for multimodal transportation through sea, land and even air. Containerized freight, though, is an American invention. Despite the fact that there were other persons, who have had the same thought, it was an American-Malcolm Purcell McLean (1913-2001) who put in practice the plan. McLean started is career as a truck driver for his sister’s and brother’s company McLean Trucking Co, at Read Springs of North Carolina. His task was to transport empty tobacco barrels with the company’s truck. Around 1952 he was planning to load the company’s trucks onto vessels and transport them from North Carolina to New York.

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Picture 1-1: Malcolm McLean

McLean previewed that if it was possible to bypass highway traffic jams, as well as, time- consuming vessel loading and unloading procedures there would be multiple advantages. His idea was simple: a containerized cargo unit seemed easier to be lifted onto the ship and transported than the unpacked cargo units. Containerized cargo was easier to handle, loading and unloading was less time-consuming and therefore the labor and the costs that were needed to carry the process out were shortened. Initially, the plan was to load the trailers of the trucks that were carrying the containers onto the ship but ‘’trailer-ships’’-as they were called-due to the trailer size and mass would not optimized the ship space available to load cargo. The main idea then was altered. Just load onto the ship the container and not the trailer chassis. The term ‘’containership’’ or ‘’box-ship’’ is used since then.

McLean’s idea to utilize containerized cargo units for shipping products provoke a revolution to the international trade by the mid of 20th century. The advantages of his idea were very important to the business world:

 Reduction of the transportation costs  Eased cargo handling process  Increased reliability  Reduced cargo theft and therefore insurance costs  Reduced transit times and therefore inventory costs

In 1956, McLean purchased two dismissed WW-2 oil tankers and altered them so they would be able to carry containers below and on their deck. Converting the vessels framework lasted several months and on April 1956 one of the refitted vessels-SS Ideal X- started its journey from Port Newark-Elizabeth Marine Terminal of New Jersey to Port of Houston, Texas loaded with 58 35ft (11m) trailer vans with their wheels removed- the container close ancestor. McLean took the airplane to Houston in order to be present when the vessel would arrive to the port.

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Picture 1-2: The SS Ideal X, a refitted WW2 tanker, the first containership

Till that time, the majority of the cargo was loaded and unloaded by hand. The dockworkers must spend almost 5 days to unload a conventional cargo ship and another 5 days to load it. Break-bulk cargo ships were spending at the ports almost the same time they were spending at the sea. Despite all the other benefits of containerization mentioned before, McLean’s main financial benefit was that the cost for loading and unloading a ship was reduced from 5.86 $/ton (for loading and unloading by hands) to 0.16 $/ton. (Cudahy B., 2006)

In the past harbors were consisting of docks and close to these docks there were the warehouses. The ships were moored to the docks for many weeks as the loading and unloading procedure was taking place. Container terminals were a totally different idea. There were consisting of two or three piers where there were cranes that were storing the containers in open areas. Initially Sea-Land was storing the containers on in-tow platforms in order to be able to accelerate the unloading procedure and make easier for the containers to be loaded fast on trucks and leave the area. Other companies were stowing the containers on stacks of three or four containers and later were dispatch them according their destination. Container handling in the hubs was facilitated by the utilization of special lifting vehicles and systems. Such changes were greatly effective due to the fact that unloading times became shorter and hubs became more effective as they were able to handle more containers in less time. (Gargalis P.,Livadaras K., 2013)

Five years after the utilization of the first containers the commerce of a group of 22 industrialized countries increased 320%, while after 20 years the afore-mentioned increase became 790%. The international trade was facilitated too by the idea of trade unions and pacts such as the European Union and the GATT (General Agreement on Tariffs and Trade) that increase the international trade for 285%. A further result (Berhofen et al., 2013)indicated that the utilization of containers was one of the major factors for the evolution of the world wide economy in the 20th century.

The advantages of the utilization of containers (Gargalis P.,Livadaras K., 2013) became revolutionary for the following reasons:

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 Consolidated the cargo in one transit unit when in the past the cargo was consisting of several different units  Consolidated cargo is handled easier due to and loading or discharge time is shorter  Transit became optimized as one container full of cargo results in space optimization and cost minimization  Theft attempts were less  Decreased damages of the cargo during loading/unloading and transportation and hence insurance costs and protected the cargo from exposures to weather  Bureaucracy procedures decreased due to the fact that cargo consolidation in one container reduced the amount of documents needed  Finally the cost is reduced along all the tiers of the supply chain

On the other hand the main disadvantages of the utilization of containers are:

 The capital cost for the premises needed to carry out trade with containers  Harbors of developing countries sometimes do not have the special equipment machinery and technology needed to handle containers  Sometimes there is not cargo to fill the containers during return voyage making returning voyage disservice  Technical and harbor limitations as the large amounts of containers that need to be handled in the containers results in potential handling problems in the terminals, delays and damages. In other words, part of the profit from the massive cargo transit is lost at the destination ports.  Long discharge times, big used capital, traffic and ports congestions  Increased in-transit costs as the container vessels are able to moor in limited number of ports, the containers are loaded to several transport units till they reach their final destination. A short delay in the voyage may result in multiple delays during the rest of the voyage when  Container terminals need massive investment in expensive capital machinery and technology

1.11 Container and Container Types The container is a big cube made of aluminum, or iron or a mixture of both which is used to carry cargo indoor. Containers facilitate packing, loading and unloading procedures. Its big advantage is the fact that the container can be transported by different means of transport, combining that way ship, truck, rail and plane transport. The cargo is sealed inside the container, fact that protects it from being stolen or damaged. Containers framework is made by steel which allows it to be stowed in container stacks.

The length of the containers differs. Most used ones are the containers of 10, 20, 30 and 40 ft. long but there are also containers of 45 and 53 ft. which are used only in the U.S due to the fact that require different railway width and for that reason is difficult to spread world widely. The height of the normal containers is 8.6 ft. and their width 8 ft. (Cudahy B., 2006)

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Container types are separated according container thickness, the type of the cargo they are designed to carry and the special service needed from them, they are different in dimensions, structure, materials and construction.

1) Dry Storage Containers

Dry Storage Containers are the most utilized shipping containers. They vary in dimensions and are standardized by ISO. They are used for dispatching dry goods and are of size 10, 20, and 40ft.

Picture 1-3: Dry storage Containers

2) Flat Rack Containers

Flat rack containers are designed to carry large and heavy objects of big dimensions which are unable to be stored inside a conventional container.

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Picture 1-4: Flat rack container

3) Open Top Containers

Open top containers are containers of which top can be removed so cargos of big height can be dispatched easily.

Picture 1-5: Open-top container

4) Tunnel Containers

Tunnel Containers are containers with doors on both ends of the container. Such containers are very helpful for loading and unloading of cargo.

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Picture 1-6: Tunnel Container

5) Open Side Storage Containers

Such containers have side doors which can be opened and provide much more space for loading and unloading cargo. They are mostly used to carry timber, metal and machinery.

Picture 1-7: Open-side storage container

6) Side Doors Containers

Such containers are equipped with double doors on the side making it easier for loading and unloading of cargo.

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Picture 1-8: Side doors container

7) Refrigerated ISO Containers

Refrigerated containers are temperature regulated containers-used to maintain a specific temperature- able to ship perishables such as foods (meat, dairy products, fruits and vegetables) as well as other products such as meds and chemical products temperature sensitive. Refrigerated containers must be connected to electricity which is provided either by the vessel or the container terminal.

Picture 1-9: Refrigerated container

8) Insulated or Thermal Containers

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Such containers are not refrigerated but they are insulated with fiberglass which allows them to protect the cargo stored inside from external temperature exposures.

Picture 1-10: Insulated container

9) Bulk Liquid Containers (Tanks)

Tank containers are used for the shipment of liquid cargo. They are made by steel and anti corrosive materials ensuring the protection of their content.

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Picture 1-11: Bulk liquid container

10) Cargo Storage Roll Containers

Such containers can be folded up and are able to transport sets of stack of materials. They are constructed by thick and strong wire mesh and rollers that allows their easy movement.

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Picture 1-12: Cargo storage roll container

11) Half height Containers

Half height containers are half the height of the conventional containers, made of steel and used to carry coal, stones etc.

Picture 1-13: Half height container

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12) Car carriers are containers able to fit cars inside them. They have also collapsible sides able to fit the cars comfortably inside reducing the risk of damage.

Picture 1-14: Car carrier container

13) Intermediate Bulk Shift Containers

Such containers are designed to carry bulk cargo to a destination where they can further packed and shipped to the final destination.

Picture 1-15: Intermediate bulk shift container

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14) Circular Containers (Drums)

Such containers are made of steel, light weight, fiber, hard plastic etc. mostly used for shipping bulk liquid materials. Their size is small.

Picture 1-16: Circular Container

15) Special Purpose Containers

Such containers are customized and specialized to carry special and sensitive cargo such as weapons and explosive materials. Safety and protection of the carried cargo is the top priority for these containers.

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Picture 1-17: Special purpose container

16) Swap Bodies Containers

Such containers are used mainly in Europe, designed with a strong bottom and a convertible top.

Picture 1-18: Swap bodies containers

17) Live Stock Containers

Live stock containers are designed to carry animals. They are designed with openings in the sides which lets the animals breath and the air passing through them.

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Picture 1-19: Live stock container

18) Platform Containers

Platform containers are used to carry large and heavy objects such as large vehicles that do not fit in other types of containers.

Picture 1-20: Platform containers

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(Lee C., Meng Q., 2014)

2 Containerships

2.1 Types of container ships Container Vessels can be classified in the three following types (Cudahy B., 2006):

 Fully Cellular Container-ships: Container ships specially designed to carry containers. Cell guides are used to stow the containers in order and according their dimension. Cell guides are located on the deck or below the deck, in the hulls of the ship.

Picture 2-1: The profile of a fully cellular containership

 Cellular ships with Ro-Ro capability: Ships able to carry wheeled cargo and containers too. For that reason they are equipped with roll on-roll off machinery (for the wheeled cargo) and lift on-lift off machinery (for the

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containers).

Picture 2-2: The profile of a cellular containership with Ro-Ro capability

 Multi-purpose Container Ships: Mixed type of ships which can carry containers, conventional or break bulk cargo during the first leg of their voyage and other types of cargo for example wheeled cargo during the second leg of their voyage.

Picture 2-3: The profile of a multi-purpose containership

2.2 Design advantages The ships that can transfer containerized cargo units, known as containerships-in order to secure the safe loading or unloading of the containers- must first secure the stability of the ship, the endurance its hulls and of their cowling, of the deck and of

[31] the ship in total.

Picture 2-4: The Containership

The containerized cargo that is transferred by the containerships is protected in the containers and therefore there is no problem if the weather is rainy during the loading or unloading procedure. In case of rainy weather the bulk carriers-which in most cases are used to transfer grain, coal and ore-must shut their hulls in order to protect the cargo. In order to achieve that several types of different metallic covering such as ‘’McGregor’’ type covering that ensure the rapid hull shutting. On the other hand, container vessels do not face any difficulties when the weather is rainy because the cargo is protected in containers and can continue the loading or unloading procedure even if the weather is rainy. The container vessel’s caissons (watertight chambers) of 30MT capacity each are handled by the port cranes. It would not be easy and useful for a container vessel to have metallic covering doors in order to shut its hulls like the most bulk carriers do.

Caissons have greater weight endurance compared to the other type of metallic sealing that are vulnerable to damages with greater repairing and spare part expenditures, and ensure the easy handling/stowage/loading and unloading of the containers and these are the main reasons for which caissons are proffered.

Container vessels are designed to load or unload at the same time and the afore- mentioned process is facilitated at the maximum level. Also the container vessels do not sail with extended trim because that affects the stowage on the deck. For these kind of ships the basic acceleration rates that affect the containers are always smaller, because they use to sail with small trim, on a scale of 0.10-0.15m.With these rates of trim rate and not greater than 0.6m is secured the stability that is necessary

[32] for a safe trip due to the fact that the deck is loaded with containers. (Zygomalas N., 2015)

The stowage of the containers should be easy and safe because these type of vessels approach multiple ports during their trip (i.e 20 per month). Also the securing and the jibing of the containers should be done fast or jibing should not be done at all. Every vessel has its own different type of safety system according to its construction and design. Regarding container vessels the safety system is totally standardized. Securing the containers, especially in the hulls, is different from the one that is used from the common cargo ships, from the cargo ships of multiple usages and from the conventional bulkers which do not have cell guides in their uncalled hulls. The tasks that are required to jibe and secure the stowage of containers on the deck is much more easier and safer for the containerships than it is for the different cargo type ships. There have been predicted specialized software solutions for safer loading/unloading for the containerships (in the first generation of container vessels there was not any software solutions in order to measure the dynamic cargo that affect the jibing of the containers on the framework of the ship). (Tsouvalas D., 2015)

2.3 Construction features The development of container vessels has been carried out really rapidly and the size of the ships has been increased really fast too, due to the demanding transportation and logistical services. This has led to greater number of containers to be placed on the deck. This inevitable feature provoked problems such as the visibility from the bridge of the ship. In order to facilitate the visibility from the deck and the securing of the containers less containers are stored on the middle and fore side ‘’BAYS’’ of the ship.

The shipping registration authorities and shipbuilders try to improve the stowage and the loading of the containers and face some technical issues, such as the deck and the hull covering endurance, the securing of the containers which is a critical issue of the container vessels etc.

Building facilitations that are achieved year after year, ease the design and development of even larger ships.

The new construction issues that emerged with large container vessels refer to the engines, the thrust systems, the metallic flection reactions, the size of the port cranes-bigger ships bigger cranes need to be used-and the features of the docking infrastructure. The docking infrastructure refers to:

 The length of the dock platform  The allowed ship draft  The cargo handling equipment

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On the one hand in order to face such issues there is need for extended investment of capital in order to achieve extensive reduction of the transportation cost but on the other hand a positive result is uncertain. The design and the construction features of the vessels differ from other cargo ships.

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(a)

(b)

Picture 2-5: The different construction characteristics between the different types of vessels1

1 On the picture it is shown the different construction characteristics between a containership (a) and a bulk carrier (b).It is clear that the shape of the lower part of the prow is different. Bulk carriers and tankers shape is almost the same. The different shape of the containerships is meant to provide better velocity and reduction of the container rolling during heavy weather.

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The celled hulls are separated in 2 and 2 and every couple is separated from the corresponding bow and stern couple with watertight fences. On the deck the containers are stowed according groups of stacks in rows of 1 or 2 containers of 20 ft TEU along the longwise and till 22 containers along the crosswise. In that way for instance, at a container vessel of 6600 TEU more than 100 containers of 40 ft. are stowed and secured safely on each hull, while at the same time the inspection and location of each container are insured. The shape of the bow, the stern and the hull are designed and constructed in such way in order to minimize-along with the advanced firefighting wall systems-the width of the walls. In other words a small angle of the wall, between 22°-30° is ensured in order to facilitate the container transportation on the deck. Such limits are touching the limits that the shipping registration authorities have defined. Containerships, have relatively high topsides and relatively extended width.

Picture 2-6: Celled Hulls

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For the new large container vessels there is a continuous research from the shipping registration authorities in order to minimize the range of the walls in the framework of the ship while improving the shape of the bow and stern, constructing better passive and active anti-roll ballast tanks, fin stabilizers and bilge keels. There is given high attention to the improvement of the containership securing standards and to the mechanical systems that support this process. (Zygomalas N., 2015)

Picture 2-7: OCCL Hong Kong, the largest containership in the world (2019) with 21.413 TEU’s capacity

OCCL Hong Kong is the largest containership (Germanisher Lloyd) that has ever been constructed, overpasses the limitation of 20000 TEU. The vessel was constructed at Samsung Heavy Industries, Geoje Shipyards and has been delivered since May 2017.

2.4 Evolution and Classes Container vessels are differentiated according their generation (Zygomalas N., 2015), term that describes the period of construction, the design elements and their container capacity in TEU’s2.

 First generation: The 1st generation-Early Containerships-(1956-1970) of container vessels was consisting of altered bulk carrier or tankers of which capacity was approximately 1.000 TEUs.  Second generation: The 2nd generation (1970-1980) container vessels were fully cellular containerships that could carry 1.000-2.500 TEUs.  Third generation (Panamax): The 3rd generation (1980-1985) containerships size became larger and they were able to carry 3.000- 3.400 TEUs-the Panamax Class- and 3.400-4.500 TEUs-the Panamax Max Class.

2 TEU is the standard unit, referring to 20-foot equivalent units or 20-foot-long cargo container. The size of containers, range from 20 feet long to more than 50 feet long. The international measure is the smallest box, the 20-footer or 20-foot-equivalent unit (TEU). Two twenty-foot containers (TEUs) equal one FEU. Container vessel capacity and port throughput capacity are frequently referred to in TEUs.

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 Fourth generation (Post Panamax): 4th generation containerships (Post Panamax ǀ and Post Panamax ǁ) were able to carry 4.000-6.000 TEUs (Post Panamax ǀ) and 6.000-8.500 TEUs (Post Panamax ǁ).  Fifth generation (New Panamax): The 5th generation of container vessels is the New Panamax Class of which construction initiated in 2014 and they are available to carry till 12.500 TEUs.  Sixth generation (Tripple E): The 6th generation consists of Very Large Container Ships (VLCS) that are able to carry 11.000-15.000 TEUs-this class year of construction is 2006-and Ultra Large Container Ships (ULCS) that are able to carry 18.000-21.000 TEUs of which construction initiated in 2013.

Picture 2-8: Containership Evolution and Classes

The big containerships of the fifth and sixth generation do not have cranes for loading and unloading containers (gearless), because-due to their size-they approach to hub ports that handle large numbers of containers, which hubs are supplied with

[38] multiple cranes. These terminals are commercial hubs from where the containers are transferred to different regional ports with container vessels of 1500-2500 TEU or less off 30-500 TEU (feeder ships). (Zygomalas N., 2015)

3 Stowage/Securing/Lashing The stowage of the container ships-like the stowage of the general cargo of the general cargo vessels- involves the securing and the fastening procedure. The securing of the containers is carried out according the fastening guidelines of the ship. The instructions of the typical stowage/securing plans for the containers are mentioned in the ‘’Cargo/Container Securing Manual’’ and indicate the principals that must be followed. The correct fastening of every stack is being measured by using specialized stowage/fastening software programs despite the fact that, at the same time, the flexibility of the container and the ship itself is not taken in account. However, the stowage supervisor must be extensively experienced, in order to decide where the best position to place a container, is. (Zygomalas N., 2015)

3.1 The BAY-ROW-TIER System Containers mutually stored on stacks are being handled in delimited spaces (Bays) along the whole crosswise of the ship. The stacks of every delimited space are forming cohesive numbered groups starting from the bow of the ship. These stacks are formed by containers are placed in rows of one or two containers in every row with their biggest part on the longwise part of the ship. Every longwise row of every container stack is placed above another longwise row in different layers and tiers.

According such container setting up and by using the co-ordination system ‘’BAY-ROW-TIER’’ a certain position of a certain container can be located easily as well as the loading and unloading procedure-starting always from the top of the stacks- is facilitated. On every stowage plan of the containerships (Bay Plans) every Bay is depicted always with the stern view, which means the view from the stern. The co-ordinates of three dimensions of the containers ‘’BAY-ROW-TIER’’ are mentioned in all cargo documents. More specifically:

a) The co-ordinate ‘’BAY’’ locates the position that occupies the container along the longwise part of the ship. According the numbered plan of the specific ‘’BAY’’ and above of it, the co-ordinates ‘’ROW’’ and ‘’TIER’’ are clearly locate the position of each container. The numbering of the co-ordination ‘’BAY’’ is carried out along the longwise side of the ship from bow to stern as the vessel is observed when standing on the dock and in a manner that only the ‘’BAY’’ co-

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ordinate can locate the position of the container, and the type of the container.

Picture 3-1: The BAY-ROW-TIER co-ordinates system

b) The co-ordinate ‘’ROW’’ defines the position of the container along the crosswise part of the ship. More specifically it defines a specific stack of a specific bay. The numbering is being done on the left and right side of the longwise axis, as the stacks are observed from the stern point of view and in a manner that the stack of a container is located only by using the number of the ‘’ROW’’ i.e. 01,02 or 10 etc., and without the need to mention if the container is located left or right along the axis. c) The co-ordinate ‘’TIER’’ defines the vertical position (vertical layer) of the container, in a specific stack.

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Picture 3-2: The BAY-ROW-TIER system based on 20’ and 40’ ft. Long containers

The numbering along the elevated rows is carried out from the hull of the ship and upwards in a manner that only the number ‘’TIER’’ to define the elevated position of the container in a specific stack, in the hull or above the deck of the ship. (ICHCA International, 2014)

3.2 Container Securing-Container Securing Devices Container securing devices consist of the permanent equipment of the vessel (such as lashing plates or dovetail foundations) and the portable fastening equipment (such as fastening bars, twist locks etc.). The main purpose is to secure the containers on the stack. Every container vessel must be equipped with the necessary number of cargo securing equipment, according the design features and the needs of the ship. Every cargo securing device must be-at least- in operational condition and certified accordingly. Below there are pictures of the securing and lashing equipment (Murdoch E., 2012):

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Picture 3-3: Fixed fittings (attached to ship)

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Picture 3-4: Loose fittings in common use

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Loose Fittings in Less Common Use

Picture 3-5: Loose fittings in less common use

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The most frequent container securing systems are two:

The first one consists of the combination of use of twist locks with the lashing bars and the other one is based on the common utilization of stacking cones, bridge pieces and lashing bars.

The first method that is based on the linkage in-between the containers by using intermediate twist locks has dominated, but in reality it is safe for a stack of containers no higher than a three containers stack.

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Semi-automatic Twist Locks- SATL’s are most used. They are placed under the container before it is loaded at the top of another container of a stack. Fully Automatic Twist Locks- FAT, are not so reliable and are used less frequently. (Murdoch E., 2012)

3.3 Container Lashing Methods

In the celled hulls the containers do not need extended fastening because they are sliding inside the cell guides. Some vessels-in order to carry differently sized containers- receive frameworks, which lock on serrated bulkheads, and are being secured with locking pins. The stowage of the hulls of the ship is totally solid and blocks potential sliding of containers as there is not enough space. At the same time keeps the ship in upright position during the duration of the voyage.

Picture 3-6: Permanent cell guides

In some ships the afore-mentioned cell guides can be forwarded automatically on the deck- by using hydraulic systems- under the condition that the hulls are fully loaded and the hatch cover is shut.

On the deck, though, fastening and securing is essential due to the factors of jibing and sea. Single stacks on the sides of the ship must be avoided.

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Picture 3-7: Collapsed container stacks

In every lashing method that refers to the deck-where there are not celled guides- the gimbals and supporting corners of the first container of the stack are secured in the permanent container slots that exist on the hull coverings. The typical lashing is done with metal lashing bars that fasten the deck screw eyes with the gimbals and supporting corners of the container. The containers are fastened with each other with intermediate spinning keys. During the fastening procedure, the ship must be in upright position, if not, and then its position must be adjusted through ballasting.

Extra fastening is needed for the sided stacks that are affected by the wind. In that way the creation of forces on the walls of the containers that could damage them and the stack is prevented. When there are height differentiations of the stacks-like steps-then these steps

[47] need to be considered as external stacks that are exposed to wind.

Picture 3-8: Container lashing pattern

The main 4 lashing methods are (Zygomalas N., 2015):

1. Individual securing of the containers in a stack the time. The stacks are not fastened together. Fastening is vertical and only the external side stacks are crossed. The securing is carried out in every stack with crossed fastening metal bars from the lower gimbals and supporting corners of the second and third tier, or with parallel metal bars-with or without equalizing device-from the lower gimbals and supporting corners of the second and the upper gimbals and supporting corners of the first tier. By using such method every stack remains

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independent and in that way loading/unloading procedure is facilitated.

Picture 3-9: Individual lashing of the container stacks

2. Parallel lashing according to which, fastening is carried out diagonally with containers of different stacks. Such method is used in large container vessels.

Picture 3-10: Parallel lashing

3. Block stowage securing and stabilization, according to which the stacks in every bay are linked together across the ship. Stacks are connected by using diagonal fastenings and between the layers are used bridge fittings and clamp fittings

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which link the adjacent stacks of containers.

Picture 3-11: Block stowage securing and stabilization

4. Securing by using permanent cell guides upright on the deck across the whole stowage. This method is used by small container vessels which have not hatches in some of their hulls or in the total of their hulls (hatch-less, hatch-coverless or open-top container ships) (sx 9.5st) and they carry huge water pumps to pump the waters from their hulls.

Picture 3-12: Permanent cell guides

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Such methods secure fair well the containers that are loaded on the deck, reduce the danger of personnel injuries, but the possibility of failures during the voyage or during the loading/unloading procedure still exists with differently sized containers.

Designing and measuring the fastening of a specialized system for every stack should consider not only the endurance of the fastening equipment but the endurance limits of the containers themselves. The ‘’Cargo/Container Securing Manual’’ contains the limits of the different parameters as:

 the dimensions of the containers  the maximum limit of the mass of every stack  stack mass sequences  wind affection to stacks  Potential stack height etc

If there will be chosen different distribution of the factors that are presented in the manual, the following principles should be followed:

1. Maximum stack weight must not be exceeded. 2. Heavier masses can be transferred from top to bottom while the opposite is not allowed. 3. There must be a relative connection between the reduction of the weight at the lower part of the stack with the upper part of the stack.

3.4 DNV Securing and Lashing Regulations DNV (Det Norske Veritas) one of the biggest recognized ship registration entities, states some regulations regarding securing procedure and means to secure the cargo:

1. Guidelines regarding the proper handling of the container lashing equipment.  The portable lashing equipment must be on board and must be maintained according the ‘’Cargo/Container Securing Manual’’ regulations.  Twist locks lock on the right or left side. It is highly recommended that only one type of twist lock should be used on the ship (clockwise or anti clockwise locking). In case there is more than one, then it should be marked in order to identify them easily.  Twist locks must be placed on the correct side in order to be easy-visually- checked.  Twist locks that are used, must be placed in such a way in order to be accessible.  Twist locks are placed in the lifting holes of the container and lock the containers together as a unique mass.  Lashing tensioners or other devices, used to adjust tension, must be placed is such way that the space between the containers and the crosswise/transverse fences is minimized. That will reduce the available room for possible container shifting.  Damaged containers should not be accepted for loading.  Containerized cargo must be packed and secured. The guidelines for the cargo packing inside the container stand as well, for the stowage of the container on the ship.

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2. Container securing guidelines regarding the locking and unlocking process:  The persons that work in closely to cargo must wear helmet and special protection shoes.  Container Locking and Unlocking must be carried out when the ship is docked or in a safely anchored.  Containers must not be released from aloft.  Working on container stacks should be avoided. In case it is not possible to, then a special protection system should be used. The access of the container on the top for locking, unlocking or collecting of the lashing equipment must be carried out in a protective lashing covering.  Falling danger exists only when the personnel works closer than 0.9m from the edge of a working surface that is not protected and 0.3m or more from a horizontal general surface. Weather condition could affect the visibility and movements of the personnel on the containers.  Protection system must be inspected before the personnel use it.  Every protection system must be placed in such way that minimizes falling off possibilities.  Protection system utilization details and guidelines must be provided on board by the constructor of the cargo lashing equipment.

4 Risks and Issues of Maritime Container Transportation Particular problems that might occur during container transportation, are actually errors, which provoke damages of the stowage even stack collapse and cargo damages. Such incidents are caused by:

a) The violation of the ‘’height’’ regulation or/and weight regulation of the stack in total. Such violations can expose the stack in fatigue that damages the edges of the containers, the base of the stack and the final subversion of the stack. The Containership Safety Manual is not enough to predict all the occasions, includes only a short amount of examples regarding the container distribution across the ship, based on their weight. A short amount of container stacks combination is provided too. Special software solutions, though, provide extra multiple combinations. b) The allocation of heavier containers at the upper part of the stack in comparison with the ones at the lower part. Prerequisite for a correct stowage of the containers is the awareness of the real weight of the containers of the stack. In some occasions, though, the container weight is not stated correctly, fact that puts in danger the cargo and the ship too. The weight of every container should be less than the determined gross weight limitation, in order not to damage the ship and put the life of crew in danger. In the past, due to the fact that some ports and some freighters have been found to violate the loading regulations, the transporter and the ship owner can realize sudden container weight inspections before the loading process. The transporter and the ship-owner can refuse to load suspicious containers, which must be reported. Delinquency is unforgivable in such situations. c) The delinquency of estimating the wind power that affects the external side of the stacks.

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d) The loosen lashing that allows the stack to lean, the lashing equipment to crush or to tangle. Such failures affect the lashing system totally and destabilize the forces that affect it, in a way that safety limits can be exceeded. e) The utilization of mistaken type of twist locks on a ship i.e. Right-hand locking instead of Left-hand locking mechanisms. Therefore, instructions that are given to the persons responsible for the stowage-regarding the position of the lashing equipment- must be certain and detailed. The crew must inspect thoroughly the lashing that has been carried out-before sailing too- something that often is not done due to the fact of time limitations. f) The false operation of the automatic locking system and the bad condition of the portable and permanent lashing equipment that unfasten that stack due to yawing of the ship. g) The bad weather conditions that facilitates the shifting of heavy cargo inside the containers that damages the cargo itself as well as the container framework and walls. Such damages can lead to stack collapse. Despite the fact that the transporter is unable to do anything, the crew must be alerted. h) The concentration of steam in the container that can harm the cargo. i) The false stowage where open-typed containers are not allocated in the upper rows and the over height cargo does not allow more containers to be loaded above them. Also problems are provoked, when such containers are allocated on the higher rows and possibly obstruct the bridge visibility or when the containers of 20’ are allocated above 40’, 40 above 45’ etc. j) Violation of the limitations above/beneath the deck or violation of the correct utilization of the celled guides of the hull or of the deck. k) To incorrect allocation of refrigerated containers. Refrigerated containers must be stowed where there is access to electricity supply and there is enough space for the crew to inspect and repair potential damages. Containers that contain animals should be place in a way that ensures the airing. l) Interaction between the neighboring containers. Containers with dangerous cargo must be separated correctly from other containers that do not carry dangerous cargo. Sometimes the containers that contain dangerous cargo are not registered correctly; the dangerous cargo is not packed correctly or is not secured properly. m) Differentiations from the Container Loading Plan. n) Check offs from the Customs or from the ship-owner. (Zygomalas N., 2015)

A special issue, also, is the durability of the containers. Visual inspection of the condition and durability of the containers before and during the loading procedure-despite the fact that is not an easy task-is essential. That is because if a container of the stack-with reduced durability or overloaded-collapses, then the rest of the stack will collapse too. The transporter or the ship-owner has the right to inspect the internal part of the container in collaboration the loader, if there are doubts regarding the condition of the container framework.

According to one of the most known ship registration entities the DNV (Det Norske Veritas), during the voyage there are several incidents that might happen if the regulations of the Cargo/Securing Manual are not followed. For example:

 The exceedance of the maximum allowed weight of the stack might lead to:

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o Hatch coverings overload. o Stowage and lashing equipment overload. o Damage or loss of containers in the sea.  When the twist locks are not locked properly the ship might face: o Stowage and lashing equipment overload. o Damage or loss of containers in the sea.  When the lashing is not attached at the correct spots then: o Twist locks will be stressed. o Damage or loss of containers in the sea.  When the distribution of the weight on the container stack has not been done according the Container Securing Manual then there will be: o Stowage and lashing equipment overload. o Damage or loss of containers in the sea.  When the value of the maximum metacentric height (GMo)3 on the stowage planning exceeds the one that is mentioned in the Container Securing Manual then the vessel might meet: o Greater transversal accelerations. o Stowage of lashing equipment overload. o Vessel framework stressing. o Damage of containers.

At the special issues category some extra issues need to be taken into account.

a) The phenomenon of Parametric Rolling: Parametric Rolling is more often on Very Large Container Vessels (VLCVs) and on Triple-E container vessels. It is a result of the shape of the ship, which under the goal of resistance minimization has large bow flare and wide beam. When the heaving against the bow or the stern or from whatever point close to that spots is big, and the bow sinks due to the pitch, then there is co-ordination of heaving and the inclinations reach the limit of 30 degrees. The results of this phenomenon are bow and stern framework stressing, extreme container and lashing equipment stressing or damage or even worst container loss. Also, the main propulsion engines of the ship might be affected. If the phenomenon of the parametric rolling is not faced rapidly then there is risk of ship capsizing too.

3 Ship inclination is provoked by two reasons; a) waves or b) cargo shifting. Different inclinations are examined separately along the transverse axis of the ship (stern to bow) and along the longwise axis of the ship (which cross the ship right in the middle from side to side). Metacenter is the intersection point where the theoretical vertical axis of a ship and the buoyancy force meet. Metacentric height GMo is the distance between the metacenter (Mo) and the center of gravity of the ship (G).

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Picture 4-1:Collapsed container stacks

b) Ship flip over: During navigation, when the container vessels approach the ports, in water canals, in the straits and during docking several issues may occur. These issues are provoked by the bad visibility from the ship’s bridge, especially when the stowage is wrong, and to the extended surface of cargo that is exposed to the force of the air. This surface is measured by using special tables that can evaluate the limit of the surface that can be exposed to air according the vessels speed in order to avoid inclination that could lead even to flip over of the vessel by a weak air blowing. c) Difficulties during the stay at the dock: Large container vessels (Mother Ships) face some difficulties during their stay at the dock and whilst the force of the air is more than 7 Bf. A docked Very Large Container Vessel moored with more than 9 cartridges from the bow and more than 9 from the stern need the assistance of a bow thruster and of one or two tug boats in order to remain moored safely. This does not happen often with loaded Very Large Crude Oil Carriers (VLCCs) and very large Bulk Carriers (VLBCs). The issue of VLCVs is provoked not only due to the large surface that is exposed to the force of the air, (which is considered as the main purpose), but also, because the winches and the bitts of VLCVs are located only at the forecastle and poop of the ship, when on the deck there are not any tools like these at all, in comparison with VLCCs and VLBCs that have them on the deck too. Another reason is because container terminals, in order to facilitate the movement of the cranes, the bollards are located close to the wall of the dock.

4.1 Transportation of hazardous containerized cargo As hazardous cargo is considered the cargo that is transported by merchant carriers- destined for peaceful utilization- through the sea and forms a severe environmental risk. Military cargo (weaponry, fuel, chemicals for military use) destined for immediate military use is not considered as hazardous cargo. (Alexopoulos A., Fournarakis N., 2013)

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A vessel is allowed to load dangerous cargo according to the Certificate of Compliance of Dangerous Goods that must possess. Once the vessel possesses this certificate the dangerous cargo must be isolated, handled and secured only according IMDG Code. Additionally, the MSC/Circ. 675, the circular of the IMO Maritime Safety Commission must be read. The circular refers to recommendations regarding the safe transportation of dangerous cargo, and the related activities that take place at the alongshore zones. For the securing of dangerous cargo only highly specialized equipment must be used.

Hazardous cargo is classified in 9 classes according the International Maritime Dangerous Goods Code (IMDG) of the International Maritime Organization. The topic of the maritime transportation of hazardous cargo is very important for the Greek region because of the relation between three factors:

I. The need for transportation in a sea environment that is considered as semi- surrounded, and transportations must be carried out often in extremely proximate areas. II. The existence of ports in urban areas or right next to urban areas. III. The large volume of hazardous goods that are transported through sea, in comparison to other means of transportation.

According to IMDG the 9 classes include the following materials (Alexopoulos A., Fournarakis N., 2013):

 Class 1 Explosives. Explosives are called the materials that under certain circumstances can provoke an explosion.  Class 2 Gas. Gas class includes the substances that are compressed in a liquefied form, those that have been liquefied in environmental temperature with pressure, and those that have been dissolved under pressure in a dissolver and have been absorbed in a porous material.  Class 3 Flammable liquids. Flammable liquids are the liquefied substances or liquid mixtures that include dissolved or scattered solids i.e. coloring materials, glossy paintings or varnish which expel flammable gases below the temperature of 610°C (1410°F), when the inspection is carried out in a shut tank. They are classified in three categories according their flashing point: . Low flashing point . Medium flashing point . High flashing point  Class 4 Flammable solids. Flammable solids are the materials that can easily caught /provoke a fire if they are get in proximity to a fire epicenter or a high heat. They are classified in 3 groups: . Easily flammable materials affected by external source of heat. . Immediate flammable materials. . Materials that expel flammable gases if they get wet.  Class 5 Oxidative substances. This class includes substances that can easily release oxygen and provoke combustion or/and increase the intensity of

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fire, caused by other materials. Oxidative substances are classified in a couple of groups: . Those that involve inorganic chemical substances. . Those that involve organic peroxides.  Class 6 Poisonous, toxic and contaminating materials. Such materials are classified in a couple of groups: . Material that can cause death or severe damage of the human health if they are swallowed breathed or got in touch with the skin. . Materials that include pathogenic microorganisms.  Class 7 Radio-active materials. Such materials emit radioactivity and their level of radio-active radiation is greater than 0,002 micro-curie/ml. Radio- active materials are classified in three categories: . Category 1 (White). . Category 2 (Yellow). . Category 3 (Red).  Class 8 Corrosive materials. Includes solid or liquid substances that under conditions can provoke low or great damage to living tissues.  Class 9 Various hazardous materials. This category includes hazardous substances that for several reasons cannot be grouped in the afore- mentioned classes.

However, the issues of the classification of hazardous goods are several because of the potential multimodal or single transportation that might be needed and involves the transportation through air-land-sea or only one of them. As a result we have the combination of the following at the same time:

 The ADR Accord (Accord of Dangerous Route) for transportation that take place on land (truck and rail).  The IATA Accord (International Air Transport Association) for air transportation.  The IMDG Code of IMO for cargo transported on the sea.

As a result the cargo is being handled differently regarding its classification and categorization, its limitations, safety allowances and its special handling requirements. Therefore the cargo that is destined to be received on rail or on truck is difficult to be received in the dockland and vice versa. That special issue has forced the European Commission to constantly issue modifications on its initial Hazardous Cargo Guideline, in order to avoid misinterpretations and mistaken implementation by the state members.

Greek legislation provides its own definitions and categories according law 329/1983 regarding classification (Alexopoulos A., Fournarakis N., 2013), packing and signaling of the hazardous chemical materials and which includes the following hazardous materials:

1. Oxidants 2. Flammables 3. Toxic 4. Harmful materials 5. Corrosive materials

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6. Irritating materials i. Environmental dangerous materials ii. Cancerous iii. Teratogenic iv. Mutant materials

Law 1650/1986 for the protection of the environment, on the article 2 defines that:’’ Hazardous materials are considered the corrosive, irritating, toxic, explosive, flammable cancerous, radioactive and mutant materials that accelerate the combustion , alter the natural state of the water, of the soil and air, and are harmful to the living beings and the environment’’.

Hazardous cargo can be classified in three categories which represent the 99.9% of the total sum of maritime transportations of hazardous cargo:

1. Liquified hazardous bulk cargos 2. Dry bulk cargos 3. Packed hazardous cargos. (Alexopoulos A., Fournarakis N., 2013)

The transportation of hazardous cargo in containers must align with the instructions of the International Maritime Dangerous Goods Code (IMDG), the International Maritime Solid Bulk Cargo Code (IMSBC) and the modification of the International Convection for the Safety of Life at Sea (SOLAS 74’).

If the hazardous cargo (substances, materials or objects) is packed, then the packing must align to the instructions of the IMDG Code and then they must be located and secured in containers. The containers must align with the safety standards that- under normal transportation circumstances – to avoid cargo leakage or loss which might put in danger the crew or the vessel.

The issue with the transportation of hazardous containerized cargo is the separation. The separation and isolation of the hazardous cargo is difficult because the captain or the loading supervisor does not have the ability to see the cargo that is locked in the containers. The containers are locked and sealed before they arrive in the destination port that will be loaded on the vessels and are not un-sealed till they arrive at their final recipient. Therefore, the separation of the containers will be done according the Code and the Stowage Plan, the containers that carry hazardous cargo will be mentioned there, but still it is not sure that the separation of the container classes to non-hazardous and hazardous has been done correctly. The separation is based to the cargo escort documentation which is a non-fully reliable source. Hence, there is a real risk of a mistakenly categorized cargo that has been done either by accident or on purpose, which fact might lead to incorrect container separation.

It is obvious that the risk of an accident with container vessels will be permanent. Such a risk involves the possibility of human casualties, financial risks, cargo loss, or even vessel loss. Therefore, in order to avoid that negative outcomes the incorrect stowage, or the allocation of non-compatible hazardous cargo in the containers must be avoided. On large container vessels and large container terminals, cargo management is based on specialized software.

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In-between the software capabilities are also involved the categorization of the containers i.e. hazardous or non-hazardous cargo. With such capabilities the personnel who supervises the container loading on the vessels has some additional tools which facilitate the task. The software:

a. Identifies the containers with hazardous cargo according the IMDG Code. b. Inspects the related planning activities and warns in real time in case the stowage of hazardous cargo regulations is violated. c. Allows the loading supervisor to:  ignore or align with the warnings  inspect the capabilities and limitation of the stowage  totally inspect the vessel and be aware of the errors that have been occurred  receive a real time schematic representation of the vessel hulls or deck, with display of the position of hazardous cargo containers and possible solutions on stowing errors.

5 Container terminals Container terminals are basic element of the supply chains. They are the part of the port where the containers are loaded or discharged from the vessels, the trains and trucks. For the correct operation of a container terminal it must:

 be approachable by sea, have piers and cranes for loading and discharge, anchoring space where the ships can wait till be served  Have container handling space which means areas to store empty and filled containers container handling tall when they must opened/or filled indoor  Have extra assistant spaces as: trailer parking spaces, machinery parking spaces, equipment maintenance garage, vehicle parking, internal road and railway network  Also it must be connected to land means of transport and posses container handling machinery  Finally, they must have departments for handling the internal traffic, Customs and extra spaces if needed

Container terminals can be described as a system of material flows with two working stations-the pier-the ground part next to the vessels berthing position where loading and discharge of containers takes place and the spaces in the overland zones where the containers are loaded/ unloaded onto/from the trucks/trains. Containers are stowed in stacks according to their destination. Below are described the main container terminal zones. On the scheme there is displayed the infrastructure of a container terminal. (Gargalis P.,Livadaras K., 2013)

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Picture 5-1: Container terminal floor plan

Before developing a container terminal it is important to estimate the volume of the cargo and hence the number of the containers that the container terminal will handle. The size of the terminal and the type of the machinery that it needs is estimated according to the future handling forecasts. Despite that fact, the size of a berthing position, the ground space needed, the type of the machinery and the stacking system depend on the inherent capabilities of the chosen site, too. (Gargalis P.,Livadaras K., 2013)

Berthing position

One of the most important parts of the container terminals are the characteristics of the berthing positions where the ships moor for loading and discharge of their cargo. The length and the depth of the berthing positions define the size of the ships that can be served. The width of the pier must be enough to accept the installation of large cranes which will used to load/ unload the containers as well as enough to store the loading and unloading containers. Small container vessels can moor to the same water depth and pier width as the conventional vessels that carry general cargo. Small container vessels can be served from a berthing position of a general cargo conventional ship under the condition that there is enough ground space to stow the containers and there is the equipment to handle such cargo. On the other

[60] hand, for large container vessels the depth of the sea at the pier must be deeper and the machinery and equipment used to handle the cargo must be of high specialization. Also, the port must be connected by other means of transport to its hinterland. (Kap Hwan K., Gunther H., 2007)

Stacking Zone

One of the main parts of a container terminal is the available stacking zone where the containers are stacked. The stacking zone contains numbered stacking sectors which are connected to small roads and corridors where trucks and container handling machinery passes. Hence, every ground stacking position in the stacking zone is defined according the sector, the row, the stack and the height. Usually sectors close to the berthing positions are used for exports and sectors close to the mainland front are used for imports.

The exact layout of the sectors depends on the type of the stacking machinery in the stacking zone and from the container transport machinery between the stacking zone and the other zones. Some of the sectors are used for special handling containers such as refrigerated containers or flat rack containers which contain cargo of big height or hazardous cargo containers. Usually, a different area is used for stacking empty containers.

It is important to mention that the choice of the operational and handling methods depend on the land availability in the container terminals. Some of the most important factors that limit the expandability of the container terminals are:

 Ground conditions (e.g ground is improper for constructions)  Land pricing in the harbor areas  Environmental limitations by ecological organizations

Before, estimating the terminal spatial needs, it must be considered that the maximum potential stacking height is difficult to be achieved. In practice the height of a container stack is lower than the potential own because there is the need to facilitate the moving of containers, to separate the containers according their destination, their weight, the size, the intermediary direction and the liner. In that way, it is difficult to make optimal use of the stacking zone. Therefore, the utilization grade of the stacking zone must include the afore-mentioned operational factors along with the empty containers long term storage and the seasonal demand fluctuations of the market. (Kap Hwan K., Gunther H., 2007)

Container Freight Station (CFS)

In some terminals, there are container freight stations where the containers are unsealed, their containing is unpacked and is ready to be delivered or the outbound

[61] cargo arrives, is being packed and is allocated into a container. There are occasions where a whole container is destined to one recipient and occasions where the containers contains consolidated cargo which involves several different shipments for the same or different recipients.

Reception/Delivery Zone

The reception/delivery zone is the part of the terminal where the vehicles are allowed to access in order to pick up or deliver a container. There are two types of reception/delivery zones based on the type of the machinery handling equipment that is used in the terminal:

1. The reception/delivery zone that is totally separated and demarcated. In such an area (interchange area) the containers are delivered or received- from the vehicles that carry them- by the handling machinery. 2. The reception/delivery zone that is formed by several corridors along the side of each stacking block. The vehicles are allowed to access and pick up or deliver their containers in parking positions along the stacks. The handling machinery then, performs the loading or discharge.

Inspection Areas

The container terminals include different zones for inspecting the containers. For example, there is a special sheltered zone for the inspection of the containers by the custom authorities.

Train Station

Container terminals might have train stations where trains arrive with containers to deliver or to pick up. (Kap Hwan K., Gunther H., 2007)

5.1 Container Mechanical Handling Machinery The container handling machinery is a key element to rate the capabilities of a container terminal and maintains a key role to the terminal operational plan. Hence, it is vital to analyze the more usual container handling machinery.

Quay Cranes

The basic equipment that is needed at vessel berthing position is the Quay Crane. The quay cranes are positioned and move on rails at the pier next to the berthing position in order to be in close proximity to the vessels. They are positioned and move on rail lines and abstaining 15m. The basic types of quay cranes are based on the type of the vessel they are built to serve. Must be mentioned that, the Panamax scale, is used to describe the class that the container vessels belong to and its constructional features. It is based on the dimensions of the Panama Canal: (a)the

[62] length of the lock chambers, (b)the depth of the water in the canal and (c) by the height of the Bridge of Americas. The types of quay cranes are differentiated by the length of the fly (the part of the crane that lifts the containers).Hence:

 Small Panamax with fly length less than 36m  Standard Panamax with fly length 36-44m  Post Panamax with fly length 44-48m  Super Post Panamax with fly length more than 48m

There are also quay cranes with single or double trolley. The quay cranes with a single trolley operate manually. Double trolley quay cranes operate with two trolleys. The manual one is used to transfer containers from the ship to a platform and the second one which is automated is used to transfer the container from the platform to the shore. Most modern quay cranes are capable of moving two containers of 20ft at the same time. The most usual quay crane is the one with the single trolley. (Meisel F., 2009)

Picture 5-2: Quay cranes Yard Cranes

Apart from quay cranes there are cranes that stack the containers at the terminal yard. They are called yard cranes. There are three different types of yard cranes.

1. Rail Mounted Gantry Crane,(RMG) operate on rail corridors, do not have any special maneuverability due to that fact but they are very efficient because

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they operate with electricity.

Picture 5-3:Rail mounted gantry crane

2. Rubber Tire Gantries,(RTG) which is more flexible than the RMG due to its maneuverability but more consuming due to the fact that they use diesel to operate and not electricity

Picture 5-4: Rubber tire gantries

Recently, the needs for further automation of the operations of container terminals lead to the development of Automated Stacking Cranes. (Meisel F., 2009)

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Horizontal Transfer Machinery

Horizontal transfer machinery transfers the inbound containers from the quay to the stacking position and the outbound containers from the stacking position to the quay. They are classified as active and passive.

Passive machinery is not able to lift the containers without the assistance of tug trucks or multi tug trucks. The most technologically advanced type of passive machinery is the Automated Guided Vehicles (AGV).

Active machinery is capable of carrying and lifting containers too. This category includes the Straddle Carriers, (SC) and the forklifts. Straddle carriers are the most important machinery for horizontal transfers and often are used to stack containers at the stacking zone. They are capable to transfer of 20 and 40ft containers and some of the can store two 20ft containers at the same time. Usually they are manual and capable to create a stack of 2-3 containers height.

Picture 5-5: Straddle carrier

5.2 Container Handling Systems, Strategies and Arrangements The main container handling systems that have been adopted by the modern harbors are (Gargalis P.,Livadaras K., 2013):

1. The Chassis System

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According the chassis system, the container is placed by the quay crane on a trailer that is known as ‘’over-the-road-chassis’’ and is transferred from the pier to the stacking zone where it is stored till its overland transit or till it goes to the Container Freight Station. The opposite process is followed during the loading of the vessel. The terminals that use such a system deliver or receive the containers on chassis. Chassis also are used during the storing process as well as for the handling of the containers in the terminal. In that way the, the container is moved always by wheeled trailers fact that facilitates greatly its movements in the terminal and its horizontal transferring.

Picture 5-6: The chassis system 2. Straddle Carriers System

According that system, straddle carriers move the containers between the quay and the yard. Also, are capable of stowing and taking away the containers in the yard and the transfer the inbound and outbound containers from the reception/delivery positions. The containers are stacked in the yard on stacks of 2-3 containers. The height of the stacks depends on the stacking machinery technology. The yard consists of sectors which include rows and tiers. Hence, every ground position has its own co-ordinates defined by sector-row-tier and height. The stacks are separated by a gap of 1m in order to facilitate the movement of the Straddle Carriers. The containers are placed to the quay by the SC without waiting the movement of the quay crane. Such a system is suitable for terminals with narrow space limitations because its spatial requirements are 1/3 of the spatial requirements of the Chassis

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System.

Picture 5-7: The straddle carrier system 3. Yard Gantry Crane System

Yard Gantry Crane System has two types according the type of the gantry crane:

 The Rubber Tire Yard Gantry Crane System (RTG)  The Rail Mounted Yard Crane System (RMG)

The Yard Gantry Crane System is almost obligatory for terminals with high traffic and spatial limitations due to the fact that ensures the high storing density. Despite the fact that such a system has a high establishing cost, provides high efficiency and is more adaptable for utilization in combination with other systems.

Picture 5-8: The yard gantry crane system

4. The Front-End Top Pick Loader System (FTPL)

According the Front-End Top Pick Loader System the picking up and transfer of containers are carried out in the same way as the Yard Gantry Cranes System. The drivers head directly from the gate to the stacking zone where the FTPL stack the containers. Such machinery due to their maneuverability and their fast movement can carry out simultaneously transferring and picking of containers. Such a system can be combined with the other systems too.

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Picture 5-9: A front-end pick loader Handling at the Stacking Zone

The container movement in the terminal consists of a variety of interrelated activities which involve the transferring of the containers to/from the ship, the handling of the containers on the pier, the storage systems, the handling of the cargo to/from the gate etc. Such group of activities refers to the terminal system which consists of many sub-systems. The effectiveness of the terminal depends on the effectiveness of the sub-systems in total. Hence, it is important to examine the operation and the structure of every sub-system as well as the relations between them. The Yard is very important part of the system, because it is the place that all the containers pass, destined to the vessels or the overland means of transport. Therefore, the effectiveness of the arrangements of the stacking zones in the Yard affects significantly the productivity of the terminals. The terminal activities are categorized in two groups:

 Arrangements of the outbound containers stacking zone  Arrangements of the inbound containers stacking zones

The terminal stacking system is a very significant link of the supply chain. Ineffective and inappropriate arrangement of the stacking zone can change the Yard to a barrier where the movement of containers between the inland and the quays is blocked. (Kap Hwan K., Gunther H., 2007)

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Outbound Containers Stacking Zone Arrangements

The activities related to the stacking zone of the outbound containers are:

 The reception of the outbound containers and the stacking plan arrangement.  The stacking of the containers according the vessel, the destination port, the weight etc.  The planning of the loading process of the outbound containers, e.g. the way the containers will move from the stack to the quay to be loaded onto the vessel.

In order to achieve container storing efficiency, practically, there have been developed two strategies.

1. The Pre-marshalling Strategy according to which, the outbound containers are picked up and stacked in a zone of temporary storage without taking into account many elements. E.g. they might be stacked according the mooring direction of the ship or according the vessel that is going to be loaded. The liners send an outbound container list, which includes the containers that will be loaded onto the ship and the director of the terminal based on that list locates the containers in the temporary storage zone. Secondly, follows the creation of a stacking plan of the outbound containers that will be forwarded to the pre-marshalling zone. Pre-marshalling zone, usually, is located in the quay close to the vessel berthing position. 12 hours before the arrival of the ship, outbound containers are transferred from the temporary storage zone to the pre-marshalling zone where they are ready to be loaded. The advantage of the pre-marshalling strategy is that simplifies the stacking plan. The outbound containers that are about to be loaded onto the ship are stacked in one stacking zone only. In such a case the stack might be tall in order to save space. The disadvantage of the strategy is that there carried out, lot of container arrangements before the arrival of the ship. The transfer of the containers from the temporary storage area to the pre-marshalling area close to the vessel berthing position is an extra task for the terminal. 2. Sort and Store Strategy according to which after the reception of the outbound containers they are stacked according their features like the dimensions, the weight, the berthing position of the ship etc. Time after time the stacked containers are moved or transferred in order to rearrange the stowage and achieve minimization of the delays. The basic advantage of the sort and store strategy is that container transfers are less due to the fact that the outbound containers are placed at the optimal area and they can be transferred to the berth for loading without

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extra movements. Extra handling tasks increase the operational cost and sometimes decrease the quality of the terminal offering. The main disadvantage of such strategy is that the containers are stack according multiple features fact that imposes the conduct of complex stacking plans. E.g. the outbound container zones for a loading ship can be 60, if it is assumed that the ship has 10 destination ports, 2 types of containers of 20’ and 40’ and 3 weight classes while for the pre-marshalling strategy the needed zones are just two.

Inbound Container Stacking Zone Arrangement During the discharge of containers, many containers are unloaded from the ship and are stacked at the stacking zone. Inbound containers are not transferred to the zones directly due to the customs inspections etc. Hence, the inbound containers are stacked temporarily at the inbound containers stacking area before they will be delivered. Most of the times the inbound containers are stacked together according their voyage without taking into account their next voyage. (Kap Hwan K., Gunther H., 2007)

6 Thessaloniki Port

The port of Thessaloniki since its foundation (315/316 B.C) and for over 2300 years forms the most major port of Northern Greece and one of the most major ports of South-East Europe. Its market consists of a population of 20 million as the port is located in close proximity to the Balkan countries. Below is depicted the potential mainland that can be served by Thessaloniki port:

Picture 6-1: Thessaloniki port potential hinterland

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The port of Thessaloniki is located in the west part of city in the internal part of Thermaikos Gulf, maintains a key role in the economic activity of the region and considered as an exit point for the countries that have proximity to it. It is also considered as the key point for the exports and imports of raw materials, consumable products, and industrial equipment for the surrounding countries and it is the second largest port of Greece. Recently the effort focuses to upgrade the port of Thessaloniki to a strong economic factor for Greece and for Eastern Mediterranean. The port is located in a advantageous position, at the crossing points of overland transportation networks of:

 East-West through Egnatia Road  North-South through the National Highway of Greece (Patras-Athens-Thessaloniki- Eyzoni-Idomeni)  European Highways 4 and 10

Picture 6-2:The Pan European Corridors Network (Balkan Region)

Additionally the port is in close proximity (16km) to the International Airport of Thessaloniki and to the Thessaloniki Railway Station (1km).It is also categorized as one of the 5 Greek ports that belong to TEN-T Core Network Corridor. Due to the temperate climate of the region, the protection against the weather conditions that the harbor offers to the approaching ships, the existence of a breakwater of 1000 meters that protect the port from the southern winds, the almost total absence of tide (max level 0.7 m ) and the safe harbor premises cargo loading and unloading and passenger movement is carried out-continuously- throughout the year.

Part of the port is the Free Control Zone of type 1 which operates under the guidelines of the European Communal Customs Code since 1995 with fencing, customs control of the cargo at the entry-exit points as well as face end vehicle control that entry and exit the

[71] port).All the docks of the port are in dispose of double railways connected to the national and international railway network. (Thessaloniki Port Authority S.A, 2018)

6.1 History The port has passed multiple faces since its foundation till now and during the different historical stages.

During the era of the Hellenistic Period (316-168 B.C) the city and the port of Thessaloniki was founded from the Macedonian King Kassandros – Great General of Philipos B the Macedon of Alexander the Great. The city is named after Kassandros wife Thessaloniki who was also half blooded sister to Alexander the Great. During the Roman Times (168-330 A.D) the port of Thessaloniki located to the east side of the Roman Empire was featured as a large maritime centre. Egnatia Odos which was constructed from 146 B.C to 120 B.C was the road network that was connecting Dyrrachium of today’s Albania to Byzantium province of the Roman Empire and was passing through Thessaloniki. The northern and southern junctions of Egnatia Odos provided to the city easy accessibility to a large mainland. Its strategic location and connections of the port and the city made it one of the most important ports of the Roman Empire and a very important trading node.

The port of Thessaloniki was given more importance during the Byzantine Period (330 A.D- 1430 A.D) . A new dock was constructed by Great Constantinos the Byzantine Emperor. The shape of the dock was square, located outside the city walls at the west part of the gulf. The dock was also protected against the southern winds with a breakwater, there was a large chain protecting its entrance and was oriented towards east. The new port premises due to the road connections of Thessaloniki which was the second most populated and important city after the centre of the empire-Constantinople- was the main port of the region. During the Byzantine Era that lasted more than one thousand years the port was operating the imports/exports and transit trade of the broader region.

During the first three decades of the Ottoman Era (1430 A.D-1912 A.D) the city initially abandoned. The city and the port found their old pace after the settlement of Greek, Turkish and Spanish-judies populations from 1470 and later on. The port was connected with regular trading lines with the majority of the big trading ports of the Mediterranean and was capable of covering the needs of its extended mainland, ultimately becoming one of the main ports of the East. In 1870 the sea wall of the city was demolished, the beach dock of the city was constructed in 1876 while in 1871 the first railway that was connecting Thessaloniki with Skopje was constructed and which railroad was connected in 1888 with Belgrade. It was then when Thessaloniki was initially bounded to the European railway network. In 1893 Thessaloniki was connected by rail to Florina and Monastiri and in 1895 to Alexandroupoli and Constantinople.

The Modern Era of the port begins the last decade of the 19th century with the expansion of the dock towards the sea and the construction of a part of the today’s 1st Dock. In 1904 the pact for the construction and handling of new project for the port of Thessaloniki is signed between the Ottoman Empire and France. The new-founded firm Anonym Ottoman Company for the Construction and Exploitation of Thessaloniki Port becomes the project

[72] manager under the right to exploit the project till 1944. During a short period of time, projects like:

 the construction of the first dock  the linking dock between the 1st and 2nd Dock  the construction of the east part of the 2nd Dock  the construction of part of the today’s breakwater  the railroad connection  the water supply, sewer and gas network  the construction of warehouses along the 1st Dock  the purchasing of cranes to load and unload the cargo were finalized.

Till 1912 the Customs building is constructed. An architectural project designed by the architect Alexandre Vallaury and constructed by Eli Modiano. On the 26th of October of 1912 Thessaloniki is liberated by the Greek Army. After the termination of the Balkan Wars in 1913 and the determination of the borders of the Balkan States the coverage of the port of Thessaloniki that in the past was really extended became really shorter covering only the Greek mainland from now on (80 km North).

Picture 6-3:Thessaloniki Customs Building (1912)

For the continuation of the role of the port, which is servicing the Balkan region totally, the Greek Government founded in 1914 the Free Zone of the Port. The surface that was covering was the largest of the port surface and was separated by the rest of the port with fencing. In this space all the cargo traffic, including the warehousing, loading and unloading cargo were handled without customs supervision, import tariffs and other taxes. The cargo was only charged with loading/unloading rights.

For serving the Yugoslavic in-transit commerce through Thessaloniki port the Yugoslavic Free Zone was founded in 1923. Its foundation was the result of the close relations between

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Greece and Yugoslavia. This zone was covering a fenced surface of 94000 m² in the 2nd dock. The Yugoslavic Free Trading Zone was repealed in 1975 and after the termination of the extensions that were given in 1995, the Yugoslavic cargo was moving through the Free Zone of the port without any special restrictions.

During the Second World War Thessaloniki is occupied by the German Army (1941-1944). Due to the fact that the port was one of the main target of the English and American Air force and the fact that during the German retreat the remaining premises of the port were blew up the port lost large part of its operating premises.

After the end of the World War 2 and till now the port is being expanded to west. Initially by reconstructing and repairing the damaged premises and later on by constructing new docks, warehouses, road and railway networks and purchasing modern machinery. In 1946 is the year that the 3rd Dock was constructed, in 1962 the 4th Dock and in 1966 the 5th Dock. 1972 was the year that the 6th Dock started to being built and the construction was finished by 1989. 1989 was also the year the Thessaloniki Container Terminal begun its operation in part of the 6th Dock.

During the decade of 1990-deepening, mud removing and embankment filling of the 6th Dock base-projects are finalized, increasing that way the warehousing capacity and upgrading environmentally the area. Also by then, is constructed the shortcut road connection of the dock with the national road network. (Thessaloniki Port Authority S.A, 2018)

6.2 General Information Geographical Data

 Latitude: 40° 38’ N  Longitude: 22° 56’ E  Time Zone: GMT +2h  Admiralty Chart: 2070  Admiralty Pilot: 48  UNCTAD Locode: GR SKG

Road distance of Thessaloniki and other cities of interest (km)

 Belgrade, (Serbia):609  Bucharest,(Romania):608  Skopje,(Fyrom):219  Sofia,(Bulgaria):280  Tirana,(Albania):328

Distance of Thessaloniki Port and other ports of interest (Nm)

 Algeciras, Spain:1693  Alexandria, Egypt:678  Alexandroupoli, Greece: 200  Burgas, Bulgaria: 443

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 Civitavecchia, Italy: 996  Constantinople, Turkey: 333  Constanta, Romania: 529  Damietta, Egypt: 736  Genova, Italy: 1179  Haifa, Israel: 785  Heraklion, Greece: 347  Izmir, Turkey: 254  Limassol, Cyprus: 653  Piraeus, Greece: 252  Varna, Bulgaria: 482  Venice, Italy: 1057  Volos, Greece: 140

(Thessaloniki Port Authority S.A, 2018)

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Port Map

Pier Quay Length Sea Year of Crane Number Tonnage of quay Depth Construct wall (m) (m) ion 1st 1 325 8 1904 2 90 8 1904 3 200 8 1904 4,5,6,7,8 400 8 1904 2nd 9 230 8.6 1904 10 320 10.1 1982 CERETTI TANFANI 5 3t CERETTI TANFANI 4 6t GANZ 2 10t 11 240 9.7 1939 COWANS SHELDON 8 6t 3rd 12 240 9.2 1946 COWANS SHELDON 12 6t 13 135 10.1 1946 14 230 9.7 1946 CERETTI TANFANI 19 6t CERETTI TANFANI 18 6t 15 175 10.4 1950 CERETTI TANFANI 7 3t COWANS SHELDON 9 6t CERETTI TANFANI 17 3t STOTHERT & PITT 21 3t 4th 16 320 10.1 1962 CERETTI TANFANI 22 3t CERETTI TANFANI 25 3t 17 190 11.1 2015 ARDELT KRANICH 26B 100t ARDELT KRANICH 27B 100t 18 220 9.9 1962 CERETTI TANFANI 29 6t CERETTI TANFANI 28 6t 19 175 8.9 1962 5th 20 350 9.7 1963-66 GANZ 31 25t GANZ 32 25t GANZ 34 27t 21 185 12 1963-66 GANZ 33 27t 22 370 9.5 1963-66 GANZ 35 10t GANZ 36 10t GANZ 37 10t GANZ 38 25t 23 184 8.9 1963-66 CERETTI TANFANI 11 6t CERETTI TANFANI 24 6t CERETTI TANFANI 3 3t 6th 24 635 12 1972-89 GANZ 39 32t GANZ 40 32t ROKAS 41 40t ROKAS 42 40t ROKAS 43 40t ROKAS 44 40t 26 550 12 1972-89 Γ/Φ 4 50t Γ/Φ 3 50t Γ/Φ 2 45t Γ/Φ 1 40t 27 100 10 1972-89

Picture 6-4:Thessaloniki Port infrastructure

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Picture 6-5:Thessaloniki Port map

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6.2.1 Service Offering The port is accessible from sea through a wide and deep sea channel. It covers a surface of 1,5 million of m² and its width is 3,5 km. The establishment consist of 6 docks of total width 6,2 km, 12m depth, open and covered warehousing space of 600,000 m² surface, compatible with all types of cargo and passenger liners. Also, it contains premises for fuel handling and is close to the international Trans Adriatic Pipeline (TAP) for the transportation of gas

Cargo: Loading, unloading, handling and warehousing for all types of cargo-containers, bulk, general cargo-to and from vessels, trucks, and trains.

Vessels: Anchoring, docking, water, electricity supply and telecommunications supply, vessels waste handling.

Passengers: The modern passenger terminal provides several services to the passengers of cruise ships and regional passenger lines.

The port zone contains the following authorities:

 Port Authority  Customs  Chemical Laboratory  Branch Office and task force of the Greek Railway Organization  Fire Brigade Station  Navigation Service (VHF Channel 12 with 16-24 km cover range)  Tugboat companies (VHF Channel 8)  Lashing/Unlashing Companies (Thessaloniki Port Authority S.A, 2018)

Conventional Cargo

The general cargo handling space is located at a special place of the Land Zone of Thessaloniki port, of surface, approximately 1.000.000 m², quays of 4.000 meters length and depth of 12 meters. Big part of the space that the conventional cargo is kept belongs to the Free Zone. (Thessaloniki Port Authority S.A, 2018)

From the dock of the conventional cargo the following types of cargo are transported:

 General Cargo (Steel, marble, palletized cargo, tobacco, fruits)  Solid Bulk Cargo (Minerals, metals, coal, solid fuels, corn, feed, fertilizers, cement, scrap)  Liquid Bulk Cargo with pipes (Caustic soda, asphalt, chemicals, mineral oils, wines)  Wheeled vehicles (Ro-Ro system)

The machinery for handling the general cargo consists of:

 34 electrical cranes, which are moving on rails, of lifting capability 40 tn  2 Gottwald wheeled cranes (harbor cranes) of lifting capability 100 tn  2 automotive cranes of lifting capacity 120 and 150 tn  Multiple other cargo handling machinery ( loaders, forklifts, platforms)

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For storing the conventional cargo there are:

 Sheltered warehouses of 85.000 m² surface (of which, 21.500m² plus one refrigerated warehouse of 4.000 m² are located in the Free Zone)  Open sheds of 12.000 m²  Outdoor warehousing spaces of 500.000 m²  Grain silo of 20.000 tn. capacity

The conventional cargo sector is operating on a daily basis Monday to Friday with 2 shifts, on Saturday with on shift under fixed prices and capability to work over the schedule, which fact increases the price of the services.

The most important companies that use the conventional cargo sector of Thessaloniki Port are: Feni Company (mostly for nickel metals and solid fuels), Sidenor (mostly for metal and steel products), TITAN (products of cement), Skopje Steel Company (metal and steel products) and Larko (for nickel metals). The general cargo sector and the transport of the in- transit cargo is assisted and supported by the Free Port Zone (type 1). (Thessaloniki Port Authority S.A, 2018)

6.3 Thessaloniki Container Terminal Inbound or outbound containers are being handled in a special place of the port placed at the western part of the 6th dock (quay 26). Thessaloniki Container Terminal is able to dock vessels of 12m draft. Its length is 570m and its width 340m. It is part of the Free Zone of the port with surface is 254.000 m² and warehousing capacity of 5.000 TEUs on ground positions. The terminal has been designed and constructed according to modern technological standards and is equipped with modern container handling machinery. In the terminal there is also a technical support group and additional supportive premises. For loading and unloading the containers to and from the ships there are used 4 container cranes two of which are of post-panamax class.

The container terminal is connected with a double railroad to the national Greek railway network. For loading and unloading containers from and to the trains, a transtrainer crane is used of 50tn lifting capability. The terminal also contains 380 plugs of 380V for refrigerated containers. For moving, storing, stowing of the containers in the terminal several container handling machinery units are used:

 Straddle carriers  Tractors  Front lifts  Trailers  Forklifts

The terminal uses a full informatics system of container handling which upgrade its service offering and its competitiveness. Additionally, the terminal is capable of:

 serving the vessels all through the day,365 days per year in Flat Rates

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 achieving high level of productivity and vessel service  achieving rapid service for vessels and cargo due to the existence of a Customs Task Force which facilitates the procedure

Thessaloniki Container Terminal serves most of the large maritime logistics companies such as: MSC, Maersk, Evergreen, COSCO, CMA, CGM, ARKAS, ZIM, Hapag Lloyd, etc.

6.3.1 The project of the Full Informatics System for Container Handling The project of the Full Informatics System of Container Handling and the Electronic Communication of the involved parts aim to optimize the current service offering and develop better technological solutions which will align with the current modern standards and increase the terminal competitiveness. At this point should be mentioned that manual systems are no longer used since 1/12/2005. The project makes available to the customers a variety of services-which upgrade the function and the infrastructures of the terminal-such as:

 Installation and utilization of advanced telecommunication systems  Secured of automated and safe control of the movements toward and from the terminal from sea and land  Spatial and temporal optimization of the container delivery and receiving  Real time geographic supervision of the container position according to GIS (Geographic Information Systems)  Automated completion of the relevant activities  Dispose of alternative communication solutions  Electronic document interchange  Online container position/condition tracking in the terminal

For optimizing the service offering to the lorry drivers there are two gates operating. The lorry driver must check if the container number and size that are displayed on the clearance are the same with the container number and size that exit or entry the terminal. If there is mistake on that step then the driver must correct it before enters the terminal. At the gate of the terminal the driver must scan the barcode of the clearance and press ok. Then the driver will receive a ticket (one ticket/truck) with the position that the lorry must be parked in order to receive or deliver the container. When exiting the terminal the driver must show the entrance ticket. In some cases of high traffic the entrance ticket indicates to the driver to exit the terminal rapidly. (Thessaloniki Port Authority S.A, 2018)

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6.3.2 Port Master Plan The aim of the plan of the port master plan is double:

1. Dealing with the current and future needs of the port-as a main port of the South- East Europe-in order to upgrade its performance and competitiveness-(service speed, safety, and price of the offering)- in relation with the other competitive ports. 2. The correct planning for the future upgrade and expansion of the port in relation to the technical and financial resources that are needed to construct or upgrade its infrastructure, buy or upgrade its mechanical equipment and the cargo handling systems.

The main aim for conducting such a plan is to optimize the function and the space of the port in order to achieve the maximum serving capacity and functionality. The vital point of the plan is to design precisely the exact position and size of the current and the future premises till 2040.

The strategy of the plan is to upgrade-sustainably-the harbor functions by: increasing the current capacity, increasing the quality of the current service offering, upgrading it to a smart port and exploiting its location advantages. The wanted result of such activities is to make the harbor a strategic player for handling the maximum cargo that is possible in the system of maritime and combined logistics network of Eastern Mediterranean and South-East Europe. The strategic aims are:

 Strengthening of the competitive position of Thessaloniki port regarding the handling of containers in order to upgrade its container terminal into one of the most important nodes of intermodal transportation for the transit and domestic containers in the broader region Southern-East Europe and the Balkans. In order to achieve that the plan is to expand the 6th Dock and deepen the bottom of the seafront of the container terminal up to 16m in order to be able to serve larger ships (New Panamax) of the mainliners.  Strengthening of its competitive position in the broader region of South- East Europe as a main player of conventional transit and domestic cargo. For that purpose, it is planned to expand the east part of the 6th Dock and deepen its frontline up to 16m in order to be able to be approach by larger bulk vessels of which capacity extends 100.000 tonnes.  Increasing the number of the cruise ships that approach the port as an intermediary stop and make the port a starting point for the cruise lines.  Attracting more Ro-Ro transition from the Turkish ports of the Aegean Sea destined to the central Europe and the Balkans.  Exploiting and redeveloping of the spaces and of the current premises of the harbor in order to be able to carry out modern port, business and social activities which bring the port closer to the society.  Expanding the passenger lines to more destinations.

(Thessaloniki Port Authority S.A, 2018)

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6.3.3 The Expansion of the Container Terminal of Thessaloniki with Figures According to the representative of the consortium that bought the 67% of the stocks of Thessaloniki Port (Theofanis S., 2017), it will be tried to finish the expansion of the terminal in 4 years which means by the end of 2023. The container terminal bound strategy promises that:

 the current quay will be expanded by 440 m and will be deepened to reach the depth of 16,5m (from 12m today), fact that will allow the terminal to accommodate New Panamax container vessels with capacity from 9.500 TEU’s to 14.500 TEU’s  there will be purchased state-of-the-art handling equipment  Thessaloniki will be integrated in the supply chain logistics and will be providing intermodal solutions to and from the Balkan countries  there will be replacement of the existing land side equipment and rehabilitation . Dense stacking system (RTG based) . Reorganization of the on dock rail yard . New gate equipment and processing . New Terminal Operation System (TOS) . 2 new STS Gantry Cranes  there will be purchased 4 new Gantry Cranes for the expanded container terminal

More specifically, the current capacity is approximately 450.000 TEU’s, the quay length is 570m and the draft is 12m. On the quay there are 4 gantry cranes. The future capacity after the expansion will be 1.3 million of TEU’s, the quay length will be approximately 1000m and the draft 16.5m. After the expansion on the quay there will be 8 gantry cranes.

Picture 6-6: Thessaloniki Port expansion plan

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Current and Future Hinterland

The current hinterland of service of Thessaloniki Port consists of a market of approximately 20 million people and the future hinterland-after the expansion- will double it reaching the level of 45 million people as shown below:

Picture 6-7: Thessaloniki Port Current and Future Hinterland

7 Competitiveness and SWOT Analysis of Thessaloniki-Durres- Burgas-Bar CT In this chapter is tried to be analyzed the market factors that play the most significant role in the offering of the examined container terminals. Today every business is operating under constant competition threats as the economies are going global. The markets have extended their borders and cover multiple nations and regions. The Southern Balkan market that this thesis examines includes Greece, South Bulgaria, Albania, Montenegro, Kosovo, Bosnia Herzegovina and Serbia. According to Thessaloniki Port Authority (Thessaloniki Port Authority, 2018) the competitive terminals of the region are Burgas in Bulgaria, Durres in Albania and Bar in Montenegro. The chosen CT are the closest to the core of the Southern Balkan market therefore their geographical location is the most significant factor that is taken into account as the mentioned ports encircle that market. The competitiveness and SWOT analysis do not take into account the CT of Istanbul and the CT of Piraeus due to the fact that they are considered large CT and not regional as the group of the examined ones. Regarding Greece, the CT of Piraeus is not considered as a competitor because it serves the hinterland of Athens while Thessaloniki CT serves the region of Northern Greece and the

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Southern Balkans. Also Thessaloniki container terminal is characterized as a transit4 CT, while Piraeus CT maintains mostly a transshipment5 role.

7.1 Competitiveness Analysis The competitiveness analysis that follows examines 5 significant factors that play a very important role on the market position that a CT occupies. Such factors are the geographical service of the examined region (road and rail connectivity and conditions of the network), the dock working labor cost (cost of the stevedoring activities), the CT productivity (throughput) and Capabilities (infrastructure) and the mainland transportation cost (the cost to forward the cargo in the hinterland). Among the examined CT the afore-mentioned factors are evaluated in a scale from 1 to 5 (1 Low competitiveness, 5 High competitiveness) and in the end is calculated their average score.

7.1.1 Containerized Cargo Competitiveness Analysis

The port of Thessaloniki along with the ports of Adriatic and Black Sea compete in the container transit market of South-East Europe. Container Geographical Dockworking Container Container Mainland Total Terminal Service Of Labour Cost Terminal Terminal Transportation Score the Balkan Productivity Capabilities Cost Corridor Thessaloniki 5 3 5 4 3 4,25

Adria-Bar 3 4 2 3 4 3,2

Burgas 5 5 3 3 5 4,2

Durres 5 3 4 2 4 3,6

1 Low 3 Medium 5 High Competitiveness Competitiveness Competitiveness

(Ocean Shipping Consultants, 2015,Deloitte Analysis)

4 A transit role of a CT means that the containers are passing through the port and move along its close markets. 5 A transshipment role of a CT means that the containers are discharged from the vessels and stored temporarily in the Yard of the CT in order to be loaded on other vessels that will carry them in other destination ports

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7.2 SWOT Analysis The SWOT Analysis is a strategic marketing planning tool which is used to analyze the internal and the external environment of a business entity when the entity must take a business decision regarding its aims and how is it going to achieve them. SWOT Analysis is a tool to examine the Strengths, the Weaknesses, the Opportunities and the Threats of a business entity, of an organization or of a region in relation to its internal and external environment. The SWOT matrix can include both qualitative and quantitative data. (Berhofen et al., 2013).

Below follows a mixed qualitative and quantitative SWOT Analysis of the examined CT. It contains elements such as CT infrastructure, capabilities, rail and road connectivity, liner connectivity, expandability, ISO, proximity to the market etc. The SWOT Analysis that has been done is a very useful tool to identify the strong and weak points of each port, their current and future opportunities and the risks that they face.

7.2.1 SWOT Analysis Container Terminal of Thessaloniki

Strengths

 In the terminal there are assistant premises, a technical assistance group and a Customs group that ensures the rapid serving of vessels and cargo  380 positions able to supply electricity to refrigerated containers  The terminal is fully computerized, fact that increases its offering quality and its competitiveness (Thessaloniki Port Authority S.A, 2018)  The terminal is able to serve on 24/7 basis all the yearlong under flat rates, it is highly productive in loading and discharge of containers, and vessel serving  Most of the big Liners use the Container Terminal (MSC, Maersk, Evergreen, COSCO, CMA, CGM, ARKAS, ZIM, Hapag Lloyd etc) (Thessaloniki Port Authority, 2018)  Port of Thessaloniki is categorized as Ecoport, for trying to protect the environment and posses ISO degree for bulk and containerized cargo handling  The port location is strategic, close to national and international railway and road networks, a crossway from West to East through Egnatia Road with the Greek National Road Network from Patras to Idomeni or Evzoni-network that continues to the North as TEN-T Core Network Corridor Orient-East Med and European Corridor 10 - able to serve its extended hinterland of population 15.000.000 habitants. (Athanasiadis I., 2014)  The port can be approached easily though its natural sea channel which does not need deepening  Due to the temperate climate, the breakwater of 1km length, the low tide (0.7m) and the safe harbor premises loading and unloading cargo procedure lasts all year long  The port is categorized as port of international interest and belongs to the Central Network of European Transport Corridors (Thessaloniki Port Authority S.A, 2018)  Close proximity to the markets of Kosovo, Skopje and South Bulgaria  The port is expandable to west (Theofanis S., 2017)

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 The container terminal is capable to moor vessels of 4.500 TEUs capacity and is under upgrade to perform better and offer better services

(Thessaloniki Port Authority S.A, 2018)

Weaknesses

 Container terminal of Thessaloniki is not a large terminal and cannot accommodate large vessels-even after the upgrade of the quay from 550m to 1000m will still unable to serve ultra large vessels  Short number of cranes-4-two of which are post panamax which means that only a big vessel or two smaller ones can be moored and be loaded or discharged at the same time. Hence, dwell time (the time a ship is waiting for her turn to be served is increased)is sometimes long (Theofanis S., 2017)  There is not a logistical center close to or inside the terminal  There is not car terminal for the transport of cars and therefore the offering is not differentiated  There is not any inland terminal (depot) in the hinterland of the port e.g in Skopje

Opportunities

 Expansion of the current infrastructure, modernization of the technological equipment and the machinery, expansion of the capacity  Differentiation of the offering by building a car terminal and attract Ro-Ro vessels from the Turkish ports of the Aegean. Till now Thessaloniki Port is not involved in that market (Thessaloniki Port Authority S.A, 2018)  Deepening of the bottom of the harbor so it will be able to moor bigger vessels  Building of logistics center inside the pier 6, fact that will create additional value to the offering  Usual rail routes towards the Balkan hinterland will be a significant opportunity  Usual staff training will increase the productivity and efficiency (Thessaloniki Port Authority, 2018)

Threats

 The competition with Durres which competes the most, Thessaloniki Port, will be determined in a level of internal and external infrastructure  Bar Port provides cheaper offering in comparison to Thessaloniki Port, fact that makes it very approachable to the liners  After the expansion Thessaloniki Container Terminal must find an operational plan that ensures profitability, productivity and efficiency  After the purchase of new equipment the staff will need to be trained on it, fact that requires time and money (Athanasiadis I., 2014)  It is not sure that the new capacity after the expansion of the terminal will be used- despite the reassuring of the shipping companies  Possible future recessions will affect the terminal (Athanasiadis I., 2014)  Environmental problems may arise due to the mooring of large vessels

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(Thessaloniki Port Authority S.A, 2018)

7.2.2 SWOT Analysis of the Competitive Container Terminals

7.2.2.1 SWOT Analysis for the Container Terminal of Durres Strengths

 Durres is a strategic node of the 8th Corridor of the Pan European Corridors Network which starts from Bari in Italy and continues through Brindisi in Italy Durres and Tirana in Albania, Skopje in F.Y.R.O.M, Sofia, Burgas and Varna in Bulgaria (Durres Container Terminal, 2018)  Durres is in close proximity to the Mediterranean hubs and to neighboring landlocked countries such as Kosovo and F.Y.R.O.M. Also there is strong socio- religious connection between the populations of Albania-Kosovo-F.Y.R.O.M  The Port of Durres has a perfect geographical location in the middle of an artificial basin that is formed between two moles with a west-north-westerly oriented entrance (Durres Container Terminal, 2018)  Durres Container Terminal (DCT) is serving most of the big liners such as MSC, ZIM, CMA-CGM, MEDAZOV, Hapag-Lloyd, Maersk and Cosco  DCT has the key role of the containerized cargo gateway, as it handles 80% of all Albanian seaborne trade  The terminal’s linear configuration and a 265m quay provide an essential service for feeder vessels up to 1.700 TEUs (Durres Container Terminal, 2018)

Weaknesses

 In order to handle 150.000 TEUs the terminal needs space of 63.000 m², which means that the terminal-that handled 134.000 TEUs in 2018- reaches its limits and future increase of container traffic will create congestion and delays (Metalia et al., 2015)  The short depth of the entrance channel of the port(8.2m) and the short depth at the quaysides (8.6m) do not allow the berthing of ships with draft over 8m  The ground characteristics of the port do not allow the stacks of containers to be more than 3 (for full containers) and 4 (for empty containers) (Metalia et al., 2015)  The rail spam does not allow the installation of a gantry crane  The terminal has not further available area for expansion and the operator asks for contracting extra space from other sectors of the port  The terminal operations are not automated (Durres Container Terminal, 2018)  There is not a plan to expand the container terminal, neither a plan to build additional storage areas near the port. Hence, if not further steps will be taken to improve the storage capacity the terminal will not be able to handle future increased incoming cargo  The terminal lacks rail connection with the main railway network fact that increase the dwell time of the containerships. Also, the poor conditions of the Albanian Railway Network and its weak connections with the railway network beyond the borders affects the performance and the productivity of the terminal

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 There is not a Free Trading Zone (Metalia et al., 2015)

Opportunities

 In order to face the spatial limitations of the terminal, the operator should increase the mobility of the inbound/outbound containers. It is proven (Metalia et al., 2015) that a reduction of the dwell times of containers (exports-6 days, imports 7-days, 13 in total) from 13 to 10 reduces the spatial needs for storing from 45.838 m² to 35.260 m². Fact which indicates that the facilitation of the container mobility increases the available storage space and reduces the dwell times (Metalia et al., 2015)  In order to achieve such a result there must be upgrades and improvements first in the port infrastructure and terminal performance, and secondly in the way the containers move from/to the terminal. Regarding the first one the terminal operator must improve the navigational capabilities of the terminal by deepening the approaching channels and quaysides (improvements that will attract bigger cargo ships), invest in modern handling machinery and construct distant container yards or logistic parks which will increase the storage capacity. Regarding the second one, the operator must upgrade the container mobility capabilities, which practically means that the today’s used mode-chassis and tractors- is not efficient, is costly, slower and causes a lot of road traffic congestion, pollution, road damage, noises etc. Taking into account that facts it is considered (Metalia et al., 2015) that the direct connection of the terminal to the Albanian National Railway Network and the upgrade of the road network are vital moves in order to cut down dwell times and increase the container mobility from/to the terminal (Durres Container Terminal, 2018)  Another answer to the increasing traffic of containerized cargo would be a construction of a container terminal in Durres hinterland e.g close to the borders of Skopje or Kosovo. Markets that are basically customers of Durres port due to their proximity, road and rail connections, and socio-religious criteria (Thessaloniki Port Authority S.A, 2018)

Threats

 The basic threats of Durres Container Terminal are the spatial/handling limitations, the incapability for expansion and the poor conditions of the Rail and Road Albanian Network that set limits in the performance and efficiency of the terminal and increase dwell times, costs and damages (Metalia et al., 2015)  The increasing container traffic that the port needs to handle have brought up storage and handling limitations that according to predictions of (Metalia et al., 2015)the port will not be able to handle in the future. The volume of containers that is beyond the current container storage capabilities is 150.000 TEUs, which will require a surface of 63.000 m² (extra storage area of 3.000 m² beyond the current available area of 60.000 m²-space that is not available). Must mention that the number of containers that the terminal handled in 2018 was 134.500 TEUs-a figure that is really close to the space limit of 150.000 TEUs. Therefore, the operator must

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react fast because the traffic indicates that the limit of 150.000 TEUs is close (Durres Container Terminal, 2018)  Without resolving the issue of the extra land that the container needs- the improvements on infrastructure (deepening of the approaching channel and quaysides, the purchase of modern handling machinery and the upgrade of the rail and road connections) will not have any positive impact on the service offering of consecutively increasing market demand. (Durres Container Terminal, 2018) (Metalia et al., 2015)

7.2.2.2 SWOT Analysis for Burgas West

Strengths

 Burgas is the final point of the railway line Sofia-Plovdiv-Burgas. It is part of the Trans-European Transport Corridor 8 and of the TRACECA( Transport Corridor Europe-Caucasus-Asia) that connects Central and Eastern Europe-Middle Asia and the Far East  The port is in close proximity to Serbia, FYROM, Greece and Turkey and can be accessed easily by the sea-all year round with no nautical restrictions. It has a strategic location close to the Bosporus Canal  In 2013 BMF Port Burgas has been awarded and since then operating under the flowing standards and codes: o ISO 9001:2018 for ‘’Quality Management Systems Requirements’’ o ISO 14001:2004 ‘’Environmental Management Systems Requirements’’ o OHSAS 18001 ‘’Occupational Health and Safety Management System Requirements’’ o ISPS Code ‘’International Ship and Port Facility Security Code’’ which indicates to governments, ship companies, port-facility and ship personnel to detect possible threats and take preventative measures against security incidents against ships or port facilities used in international trade (BMF Port Burgas, 2017)  In June 2015 a Terminal Operating System (TOS) Navis 4-which unlocks greater performance and efficiency for the world’s largest terminal operators- was implemented successfully on Burgas Port fact that increased its productivity from 11 to 18 moves per hour/crane and from 22 to 36 moves per hour/vessel. Navis 4 Platform is a global technology solution for managing the movement of cargo through terminals. Combines industry best practices with innovative technology that maximizes performance and reduces risks. Navis 4 integrates terminal operations and provides a holistic approach to terminal operational optimization and visibility, velocity and measurable business results to its customers  Burgas Port Terminals (West-East 2) have been categorized as multipurpose terminals that can handle and storage different types of cargo such as general, bulk, liquid cargo and containers  Burgas Container Terminal is operating a special method for staffing and stripping bulk cargo in 20’ containers, a unique method for the Bulgarian market. Such a method of handling bulk cargo reduces the cost but also provides a higher quality of service retains the integrity and the product quality and maximizes the average

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weight of each stuffing. A 20’container is positioned and stuffed in an average time of 15 minutes, then is ready for expedition (BMF Port Burgas, 2017)

Picture 7-1: Staffing and stripping of bulk cargo in 20’ft. containers

 The terminal area is linked to the national railway and road network  Burgas Container Terminal serves some of the largest liners such as Maersk, MSC, Arkas, Hapag Lloyd, Yang Ming, NYK, CMA-CGM, Hamburg Sud  The facilities of Burgas West offer a variety of services provided by the modern container terminals such as loading and discharge of sea vessels road and rail vehicles, lashing-unlashing of cargo, towage, sorting and fumigation of rail cars, opening and closing of hatches, separation, palletizing-depalletizing, stuffing and stripping of containers, sweeping, washing, covering, application of antifreeze agents, carriage and forwarding services related to issuance and execution of documents  Burgas Port has skilled and highly qualified staff of stevedores, machine operators, tallymen etc (BMF Port Burgas, 2017)

Weaknesses  The main weakness of Burgas Port consists of two parts Burgas West and Burgas East terminals; both terminals are multipurpose terminals that handle various kinds of cargo. Therefore, there is not a pier area specialized and dedicated completely to container handling. Container handling is carried out at berth 22-23 and share the same area with berths 21,21a, 24 and 25 for general and bulk cargo

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Picture 7-2: Burgas West and Burgas East-2 port zones

 Another important weakness is the fact that the port is located in close proximity to the urban are of Burgas fact that sets limitations to the inland expansion of the port facilities  Also the rail and road network outside the port area are insufficiently developed (BMF Port Burgas, 2017)

Opportunities

 Burgas Port must dedicate a special open area only for container handling. There is a Master plan for expanding the port facilities and enables it to handle larger amounts of cargo. Till the construction is done- berths 31-32-33-of which draft is 14.3-14.6m (which means that big Panamax vessels could be moored)- could be used. The problem is that Burgas East 2 terminal is dedicated to handling of general and bulk cargo. The company that handles the port has identified that potential opportunity and plans to construct a 90.000m² specialized uncovered yard for handling and storage of containers with capacity of 250.000 TEUs/annum in the back areas of berth 31-32-33. Taking advantage of the draft of berths 31-32-33 and the open area that surrounds them could be vital due to the fact that in that way Burgas could attract larger ships with larger capacity  The strongly competitive environment in the Black Sea region regarding the container handling compared to the ports in Bulgaria requires an adequate and hi- tech reaction for the provision of all prerequisites necessary to reach the level of services even higher to those offered at the competitive ports of Constantz, Varna and Odessa. (Berhofen et al., 2013)  The creation of a specialized container terminal, the modernization of the handling equipment and the improvement of the work operations are of highest priority for BMF Port Burgas and play a key role for the successful operation, provision of high quality port services and improvement of the competitive ability of the port

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 New storage areas, additional railways and road surface and purchasing of high tech equipment will contribute to the increase of the competitive advantages of the container terminal in terms of cargo handling capacity, handling times and lay days reduction and logistical costs (BMF Port Burgas, 2017)  The Master Plan for the development of the port of Burgas includes the construction of 4 terminals. More specifically: o Terminal 1 will be dedicated to handling of liquid, bulk and general cargo o Terminal 2 for handling of bulk cargo o Terminal 3 will be a Ro-Ro terminal o Terminal 4 will be dedicated to container handling only  The construction of Terminal 4 will allow the port to absorb the increasing container traffic in the region and due to that fact there has been given high priority to the completion of the task (BMF Port Burgas, 2017)

Picture 7-3: Burgas Port expansion plan

Threats

The main threats of Burgas Container Terminal are:

 The fact that there are delays in the expansion plan of the port-and hence of the container terminal- which will result in limited handling capacities in the future as the container traffic in the broader region of the Black Sea is increasing  The current lack of a wider zone to handle containers and the multipurpose role of the Burgas Docks prevent the Port to provide a highly-specialized and differentiated offering (BMF Port Burgas, 2017)

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7.2.2.3 SWOT Analysis Port of Adria-Bar (Montenegro) Strengths

 Port of Adria is strategically located on the western border of Bar in Montenegro in the entrance of Adriatic Sea. Port of Adria owns a significant advantage against the rest north ports of-Balkan-Adriatic coast; it shortens the transit times and creates saving in the costs of maritime transport  Bar is a multipurpose port with dedicated terminals for container ships, general cargo, Ro-Ro and cruise ships  The whole area of the port is completely comprehended by the Free Zone regulations, making it exempt from customs duties, taxes and other charges. The advantages of the Free Zone of Bar are ensuring the success of the business activities organized there. More specifically, the Free Zone advantages are listed below (Port of Adria, 2018): . All the economic activities can be carried out in the Free Zone (except those ones that putting in risk or threat the environment, people’s health, the material goods and the soil safety) . All foreign investors are equal and secured in terms of investment rights, acquisition of ownership of the port facilities and the activities organized in them . The utilization of the ground/facilities of the port is enabled on the basis of long term leasing as per fixed conditions . Customs, customs duties, and value added tax are not paid for the goods imported into the Zone, regardless of the type of imported goods and their purpose in the Zone . Goods imported in the Zone can stay there indefinitely . Also the goods can temporally taken out of the Zone to the rest of the country or taken into the Zone from the rest of the country in order to be processed, installed, tasted, surveyed, repaired, commercially presented etc . The goods dispatched to Montenegro hinterland in order to be further traded or processed are subject to payment of customs, custom duties and VAT since the moment they leave the Zone, while the customs and custom duties are paid only for foreign components in the goods . The Zone users do not pay profit tax for legal entities . Investing in capital in the Zone area, transfer of profit and roles are free  Bar is a principal port and a vital node for trade serving Serbia and neighbor countries  The port is integrated into the Bar-Belgrade railway and road traffic network  A new highway project with connections to key corridors is now being constructed and will pave the way for growing volumes in the next few years (Delovic D., 2017)

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 Meanwhile, a continuous program of investment in machinery, IT, safety, security and training ensures that the customers of the port receive high quality of service  The port operator purchased recently a new mobile crane and a new container crane and since then the container terminal can serve two container ships simultaneously (Delovic D., 2017)  The port operates under the standards of ISO 9001:2015 ‘’Quality Management System’’, ISO 14001:2015 ‘’Environmental Management System’’, OHSAS 18001:2007 ‘’Occupational Health and Safety Management System’’  The total container terminal area is 80.000 m² with possible expandability of 50.000 m²  The terminal is connected to the railway tracks 2163/2164 and the road network on the east (Delovic D., 2017) (Port of Adria, 2018)

Weaknesses

 Montenegro is not member of the EU and hence, is not operating under the market regulations of free trade with other European States  The terminal is operating significantly below its designed capacity due to the small market of Montenegro and the trade competitiveness of the other regional ports of Balkans and Adriatic  The absence of a high-quality road network of Montenegro and of direct rail connection with Skopje is a disadvantage for the terminal and its competitiveness (Delovic D., 2017)

Opportunities

 The new branch office which Bar operator opened in Belgrade in Serbia in 2017 has achieved to attract new partners, raised the profit of the port and encourages the routing of cargo through Bar  The 165km highway that is under construction, and which will connect Bar Port in Adriatic Sea to landlocked Serbia (Belgrade) is a key opportunity to upgrade significantly the deficient road network of Montenegro and bring it closer to the markets of the Balkan hinterland. The new motorway will be part of the Pan European Road Network XI that will be connecting Bar-Belgrade-Bucharest to Italy

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Bari port (through the sea corridor Bari-Bar)

Picture 7-4: The Bar-Belgrade Highway

 The construction of a direct rail connection of Bar to Skopje would be ideal in order to attract more clientele from Albania and FYROM markets and bring it closer to the South-Western Balkan hinterland (Delovic D., 2017)  Bar tariffs are low and therefore attractive to the liners  Montenegro legislation facilitates rapidly the foundation of new enterprises (Delovic D., 2017)

Threats

 The completion of the construction of the Bar-Beograd highway delays due to the fact that Montenegro government faces major fiscal issues in its attempt to finance the big project. Hence, the latest the project will be ready, the more competitiveness Bar will face from the other Adriatic ports  The neighbor Adriatic ports of Trieste-Rijeka-Split-Dubrovnik and Durres are the main competitors of Bar Port and the reason that the container terminal of bar is achieving container traffic numbers far lower from its capacity. There is, therefore significant level of competitiveness in the broader region, which means that there is a market isolation risk (Delovic D., 2017) (Port of Adria, 2018)

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8 Tariffs and Traffic Comparison

8.1 Tariffs Comparison The examined container terminals offer their services in different prices. In the beginning of a new year every terminal publishes an invoice with the offering prices in which analyzes the different services that are offered and provides certain regulations and prices for each service. The invoices cover all the activities that take part in each terminal and set clearly specified regulations for the price level. The invoice specifies the price of the following activities:

Inbound/Outbound container handling per size, stevedoring, container handling at the yard, lashing/unlashing of containers, storage, transshipment containers stevedoring and storage, reefer container handling, container inspection and customs tariff, loading and discharge of truck/rail to vessel and vice versa, Container Freight Station activities, handling of hazardous and waste cargo, mechanical machinery charge, hatch coverings opening and shutting, berthing position charge, tugging charge, demurrage and strike price tariff and many more. Below there is a tariff comparison of the four examined terminals in 3 basic activities:

1. Loading and discharge of full 20’ and 40’ containers 2. Yard handling cost for full 20’ and 40’ containers 3. Storage Cost for full 20’ and 40’ containers (estimated for 31 days) under escalated charging

The data was collected by the tariff invoices that were published for each terminal in January of 2019 and was processed in Excel in order to create the graphs which are needed for the comparison.

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8.1.1 Loading and discharge cost of a Full 20’ and 40’ Container 20'cnt LOADING (€) DISCHARGE (€) SKG 70,6 88,2 BAR 55 75 DURRES 76 77,75 BURGAS 56,7 56,7 100 90 80 70 60 50 LOADING (€) 40 DISCHARGE (€) 30 20 10 0 SKG BAR DURRES BURGAS

40'cnt LOADING (€) DISCHARGE (€) SKG 98,8 123,5 BAR 55 75 DURRES 104,64 113,4 BURGAS 67,41 67,41

140

120

100

80 LOADING (€) 60 DISCHARGE (€) 40

20

0 SKG BAR DURRES BURGAS

As the graphs show Thessaloniki CT and Durres CT prices are almost at the same level. Durres CT offers the higher price for loading a 20’ or 40’ container and Thessaloniki CT offers the higher price for discharging a 20’ or a 40’ container. The prices of Durres CT are quite high compared Bar and Burgas (which follows same pricing policy for both cases of loading

[97] and discharging). Bar and Burgas prices are the most competitive ones regarding loading and discharging.

8.1.2 Yard Handling Cost of a Full 20’ and 40’ Container Yard Handling Cost per Cnt (€) 20' 40' SKG 28,7 39,7 BAR 30 30 DURRES 19,62 19,62 BURGAS 28,89 33,17

45 40 35 30 25 Yard Handling Cost per Cnt (€) 20' 20 Yard Handling Cost per 15 Cnt (€) 40' 10 5 0 SKG BAR DURRES BURGAS

Regarding yard handling cost, the survey indicates that Bar port is the most expensive one for the yard handling of a full 20’ container and Thessaloniki for the yard handling of a 40’ container. Bar offers a same level pricing for both cases, policy that is followed from Durres too. Durres in that case is the cheapest one. Burgas prices are in close proximity to Bar prices.

8.1.3 Storage Cost of a Full 20’ and 40’ Container, Estimated for a Period of 31 Days per Size and per Direction Storage Cost for One Month (€) 20'cnt Import Export SKG 157,5 119 BAR 100 62 DURRES 130 130 BURGAS 114 114

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180 160 140 120 100 Storage Cost for One Month (€) Import 80 Storage Cost for One 60 Month (€) Export 40 20 0 SKG BAR DURRES BURGAS

The storage cost for a period of 31 days for a full 20’ container is the cost that the shipper has to pay when the container remain stored for 31 days in the container terminal. In that case the cost is calculated separately for inbound and outbound containers. Thessaloniki is the most expensive for storing inbound 20’ containers and is followed by Durres. Despite the fact that Burgas offers lower price the most competitive price is offered by Bar CT.

Regarding the outbound 20’containers Durres is the most expensive one, followed by Thessaloniki and Burgas. In that case too Bar offers the most competitive price.

Storage Cost for One Month (€) 40'cnt Import Export SKG 315 245 BAR 152 124 DURRES 261,88 261,88 BURGAS 228 228

350

300

250

200 Storage Cost for One Month (€) Import 150 Storage Cost for One 100 Month (€) Export

50

0 SKG BAR DURRES BURGAS

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The storage cost for a full inbound 40’ container for 31 days is the most expensive in Thessaloniki CT and less expensive in Durres and Burgas (which both follow the same pricing policy) but again Bar offers the most competitive price in that case too. The same trend is followed for the outbound 40’ containers too. Once again Bar is the most competitive regarding storage cost.

8.2 Graphical Representation and Comparison of the Container Traffic (TEU’s) per Terminal Below is the table of the container traffic per examined container terminal (in TEU’s). The data indicates the strong position of Thessaloniki Container Terminal in the region and supports its role as the Balkan Gateway as the figures indicate that the three other competitive terminals have a lot of traffic volume to cover in order to be able to compete Thessaloniki Container Terminal. The data was collected by each Port Authority and processed through Excel in order to create pictorial representation of the fluctuations.

Container Traffic (TEU's) SKG BAR DURRES BURGAS 2013 322310 33029 109055 46009 2014 349990 39186 100000 48380 2015 351741 39050 105000 62766 2016 344316 41000 120000 61143 2017 401947 50059 118270 65593 2018 424500 50000 134526 72357 450000 400000 350000 Container Traffic 300000 (TEU's) SKG 250000 Container Traffic (TEU's) BAR 200000 Container Traffic 150000 (TEU's) DURRES 100000 Container Traffic 50000 (TEU's) BURGAS 0 2013 2014 2015 2016 2017 2018

8.2.1 A 2019-2021 Container Traffic Forecast (TEU’S) per Terminal Based on the container traffic data for each terminal during the period 2013-2018, it will be attempted to estimate the container traffic for each of the examined terminals during the short period of 2019-2020-2021. The shortest the time horizon is the more close to a correct result will be the forecast. Therefore it is chosen the above period. The forecast function of Excel calculates a future value by using existing values. The forecasted value is a y-value for a known x-value. The known values are known x-values and y-values. The forecasted value is

[100] predicted using linear regression. It is a useful function to forecast sales, revenues, inventory levels, consumer trends etc.

The syntax of the function is FORECAST(x,Known_y’s,Known_x’s) where x is the data point for which we want to forecast a value, Known_y’s is the dependent array or the range of data and the Known_x’s the independent array or the range of data. The equation for FORECAST is: a+bx,

Where: a =y ̅- b x ̅ and b=∑(x- x)(y̅ - y ̅)/( x- x)²̅ and where x and y are the sample means of AVERAGE(Known_x’s) and AVERAGE(Known_y’s) (Oikonomidis et al., 2011)

Using the ‘’Forecast’’ function of excel-the following forecasts were extracted:

2019-2021 Container Traffic Forecast (TEU's) SKG BAR DURRES BURGAS 2019 431740 53996 134192 77550 2020 450580 57408 139852 82743 2021 469420 60820 145458 87936 500000 450000 400000 350000 300000 250000 2019 200000 150000 2020 100000 2021 50000 0 SKG BAR DURRES BURGAS

2019-2021 Container Traffic Forecast (TEU's)

The forecasts of the future container traffic (2019-2021) indicate that Thessaloniki Container Terminal, despite the relatively high-priced service offering , maintains the most important role of the bussiest container terminal among the examined competitive terminals, role that seems to be kept in the short future too. It is assumed, though, that the political, economic and management conditions remain steady.

9 Conclusions and Future Research The main outlines of this thesis are that Thessaloniki Container Terminal despite its relatively high pricing for container handling holds fairly the role of the Balkan Gateway regarding the cargo handling volumes. Its main zone competitors-Durres, Bar and Burgas- need to upgrade their offering and to think of alternative ways to improve their handling volumes but they are quite far away from handling the volumes of containers that Thessaloniki Container Terminal handles. As the container volumes transported through sea become larger-in their

[101] attempt to overpass their competitors the container terminals need to combat spatial, draft, capacity, rail and road connectivity limitations. The regional container terminals such the ones mentioned above compete for the servicing of the Southern Balkan region and till now the regional container terminal of Thessaloniki seems to be the winner of the competition. Also, it is assumed that currently Greece is the main player in the Balkans as the container volumes that are handled in the container terminals of Greece are multiple times more from the volumes that are handled by the container terminals of the competitive Balkan states.

Another important outline is to determine the importance of space availability, financial liquidity and geographical capabilities of each container terminal in their future expansion plans. Operational and space optimization increase the mobility of larger volumes of containers and affect the dwell times and costs in a positive way but only for short period of time. In order to secure the survival of the container terminals in the consecutively increasing market of maritime container transport, the terminals must find ways to react fast in limited capacity capabilities, draft limitations, operational duration, cost fluctuations and hinterland connectivity issues. The attraction of big liners such as Maersk, OCCL, Hapag Lloyd etc is another issue for the container terminals. The tariff policy of each container terminal affects the market-as the liners like low prices-but it should be combined with modern handling equipment, technologically advanced software for container handling and deep drafts in order to attract the largest possible containerships. The main purpose it to achieve the lowest container handling cost and the lowest handling times in order to occupy a good choice for a big liner.

The tariffs comparison indicates that despite the relatively high pricing of Thessaloniki CT it remains the first choice for the market of Southern Balkans. Bar could be characterized as the most competitive one regarding pricing, but that fact is a result that Bar port operates in really lower volumes than its designed capacity and hence, tries to attract more liners by providing lower prices. Durres port handling cost is relatively higher compared to Burgas and Bar due to the fact that the CT is reaching its operating capacity and the handling costs are increasing. Burgas on the other hand prefers to offer mainly a fixed pricing level for most of the examined handling activities and plans to expand its operations significantly after its expansion. It becomes clear the role of the road and rail infrastructure too for the setting of the pricing levels. Thessaloniki CT remains the first choice for the examined market despite its high pricing. That is a result of the fact that the road and rail connectivity is in better quality than the other CT. The forecasts indicate that at least till 2021 the CT of Thessaloniki will be in the first choice too.

The SWOT Analysis for Thessaloniki CT and its competitive terminals aligns with the specifications of that have been set from the Port Authority Master Plan. The SWOT Analysis indicates the need for the container terminal to poses modern handling machinery, need that was partially satisfied in March of 2019 with the purchasing of 12 modern straddle carriers after the full incorporation of the 67% of the management of the port to the consortium of GmbhH-Terminal Link SAS-Belterra Investments. The new modern equipment is about to double the handling and storing capabilities in the Yard and accelerate the service times fact that means a significant reduction of dwell times and delays. Also the SWOT analysis indicated the need for a logistics center in the proximate region of the port as

[102] well as upgrade of its infrastructure and its intermodal connectivity. The Master Plan for Thessaloniki Port indicates the need to initiate as soon as possible the expansion of the 6th pier and find space for the construction of a logistics center that will be bound to the CT. In its main plans also it is mentioned the need to attract more Ro-Ro traffic from the ports of Turkey. Therefore the Master Plan covers the needs that have been indicated in the SWOT Analysis. Needs for upgrading the current infrastructure, modernize the equipment and provide new services.

9.1 Future Research The paper indicated the role of the containerships in the transportation of containerized cargo through sea as well as the role of the container terminal of Thessaloniki in the broader Balkan region. It covered sectors like design features, onboard operations, chartering, container terminal operations as well as geographical limitations. It specified the strengths, weaknesses, opportunities and threats of the container terminal of Thessaloniki in relation to the competitive ones and examined the key operating processes in order to support the role of Thessaloniki as the Balkan Gateway. There are plenty of research opportunities that could be done on the topic such as the optimization of the handling operations in order to reduce the dwell times-a vitally important issue for every container terminal-, methods to minimize the container losses and methods to reduce the handling costs in order to attract big liners. Expandability potentials, modernization of the handling equipment and software solutions for container handling are some additional research fields. Maritime law issues are another interesting sector to investigate. Upon all the afore-mentioned research fields the optimization of the handling procedures of Thessaloniki container terminal and reduction of the dwell times after its expansion would be a really fruitful research. Modern simulation software like Arena could be used in order to simulate the terminal operations before and after the purchase of more handling machinery and indicate in that way the fluctuations of the dwell times.

Some other useful future researches that could be conducted refer to the expandability issues of Durres CT and the reasons for which a modern CT as the one of Bar is operating under its designed capacity. Such surveys can indicate ways to answer to difficult operating issues such as the spatial limitations and the unused capacity. Issues, that create a severe risk for the survival of the examined regional container terminals.

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