OCTOBER 2016

Automation for Morocco and Virginia Emerson reefer deals This month, there have been with up to 2 km of quay, de- tor of APM Terminals MedPort tracks and civil works” Künz said. two significant developments in signed to serve ULCVs up to Tangier. APMT confirmed to World- port automation. APM Termi- 20,000 TEU. The STS cranes will be de- Cargo News that both the STS nals has announced orders for 12 “Our goal is to use proven livered by ZPMC at the end of cranes and ASCs will have crane remote-controlled STS cranes technology to create high pro- 2017, and will feature a second control and automation systems and 32 ASCs for its new Med- ductivity for our clients on one trolley, OCR technology, and from Siemens. It also transpires Port Tangier facility, now under of the world’s most strategically “full automation”, with remote that one of the new ZPMC construction. important trade lanes on the crane operators safely located in cranes at ECT in Rotterdam was The terminal will have an Strait of Gibraltar,” stated Den- an office building near the quay. delivered with a Siemens full re- eventual capacity of 5M TEU, nis Olesen, managing direc- Also due for delivery at the mote control system. end of 2017, the 32 ASCs will be In the US, Konecranes has The Künz ASCs use rounded girders to lower weight and wind/wheel loads built by Austria-based Künz and disclosed that it has received SEATRADE ORANGE making its first call at Antwerp this month will be deployed in 16 container a “Notice of Intent to Award yard blocks – each serviced by Contracts” from the Virginia Emerson Climate Solutions has ried out with chilled banana two ASCs. Port Authority. The award covers won two new contracts in the loads from Ecuador to Germany, The project will be Künz’s the 86 ASCs reported last month reefer monitoring market, an during which energy consump- third ASC terminal (after CTA (WorldCargo News, September area where more carriers are tion and cargo condition were in Hamburg and MVII in Rot- 2016, p1), of which 60 are for the expected to make major invest- measured. The results confirmed terdam) and the first to feature its redevelopment of Norfolk Inter- ments soon. Star Cool’s higher performance,

new generation ASC, where the national Terminals (NIT), and 26 Seatrade, the world’s largest lower operating costs and CO2 main beams are designed with are for the expansion of Virginia reefer vessel operator, has outfit- emission levels.” a rounded girder. “This aerody- International Gateway (VIG). ted its first newbuild container The other contract for Emer- namic main girder design results Industry sources indicate that the vessels on order for its specialised son is with Africa Express Line in a number of advantages for the drives and automation part of the container service, with the Ref- (AEL), which is installing its operator. A lower wind attack contract will go to TMEIC. con system for power-line reefer RMM+ modems, equipped with area requires less drive power, Valued at over €200M, “this monitoring. In addition, the power-line and GPRS/UMTS/ which leads to lower energy con- will be the largest deal in the 6,000 new reefers that Seatrade GPS communications, on 3,000 sumption, and reduces dynamic history of Konecranes” the com- is leasing will be fitted with Em- containers. AEL has recently time forces on drive wheels, crane pany stated. erson’s RMM power-line remote chartered SEATRADE ORANGE, the monitoring modem. first of the Seatrade newbuilds, business plan have not been re- In an order worth over which operates using a combina- vealed, comments made by several US$55M, 4,000 of the new con- tion of RMM, RMM+ modems Maersk changes its course executives at AP Møller-Maersk tainers will be Star Cool Inte- and the Refcon 6 system. A/S suggest that in the liner grated reefers from Maersk Con- Importantly, both contracts The decision to split the energy Maersk A/S company combining of strategic changes as each looks shipping division, the company’s tainer Industry (MCI). “Looking include Emerson’s ProAct Trans- and transport businesses of the the container shipping, port oper- for revenue growth and sustain- immediate future will be driven to source the best-performing port software, which will be AP Møller-Maersk Group into ating/management and logistics able levels of profitability. more by acquisitions than order- reefer, Seatrade live-tested every delivered on an SaaS platform, two – with the new AP Møller- activities – is resulting in a series Although details of the new ing new ships. Another key part of relevant refrigeration unit option allowing Seatrade and AEL to the strategy is an increased focus before deciding on Star Cool migrate to a centralised reefer on digitalised and tailor-made Integrated,” said MCI. “Closely monitoring system (see pages customer solutions, as the group monitored shipments were car- 29-32). seeks a closer relationship with its clients and attempts to raise freight rates. Michael Pram Rasmussen, Getting up to speed chairman of the group, has said that the company was “done with Speaking at the TOC Ameri- performance automated terminals ordering new steel” and that, cas conference in Cancun this are delivering today, adding that if there was a need to grow, “it month, Anthony Otto, president a US$2B project like LBCT will should be through acquisitions, of Long Beach Container Ter- not achieve ROI operating at the so that we don’t flood the market minal (LBCT), said the new au- same pace as a manned operation. with more ships”. In his view, the tomated terminal has made good The industry needs “more skin in growth prospects for global trade progress since handling its first the game from software suppliers do not support ordering new ships. vessel in April this year, but he to push the limits of productiv- Since 2008, Maersk has oper- called on software suppliers to lift ity”, he added ated all its business units on the their game if automated terminals At a highly automated terminal ‘arm’s length’ principle, including are to achieve their full potential. like LBCT, performance is largely positioning APM Terminals as an With electric ASCs, battery controlled by software, and LBCT independent terminal operator. powered AGVs and shore power uses the Navis N4 3.0 TOS and the The decision to manage and op- at every berth, LBCT’s environ- TEAMS equipment control soft- erate the business activities of its mental performance is “light years ware (ECS) from TBA, integrated Transport and Logistics Group “in ahead of anyone else in the world” with ABB’s crane control system. a more integrated manner”, pre- and, in terms of its stevedoring LBCT wants to do significantly sents an important departure, and productivity, it is as productive as better than the 25-30 moves per reflects Maersk’s desire to fun- a manual terminal on the US west hour that manned terminals typi- www.seacom-marine.ch damentally change its transport coast, said Otto. cally achieve today – 14,000+ product offering. Like other lines, However, concerning software TEU vessels demand sustained Maersk sees the future in “digital suppliers, he said the industry productivity levels never recorded solutions” and a new product of- should not to be satisfied with the in the US, added Otto. ROLLTRAILERS // GOOSENECKS fering “based on the combined capabilities of Maersk Line, APM DRAWBAR TRAILERS // CHASSIS Terminals and Damco”. IN THIS ISSUE LIFT TRAILERS // CASSETTES Maersk, however, does not NEWS Flexitanks on the up 35 want to go into the digital world AUCOS gets rolling 2 without scale, and is keen to par- ticipate in what it expects to be a Inching forward in Manta 8 INTERMODAL period of transition and consoli- China-Netherlands by rail 17 Harness hidden potential 36 dation in the liner shipping mar- More mega ships for PIL 22 Transmontane echoes 38 ket, by using its fiscal strength to purchase companies that would CONTAINER INDUSTRY SHIPPING either improve its position in Vertical box loading 24 Maximising ship capacity 40 some of its key markets and/or Pallet-wide picks up 25 A melting pot for carriers 41 help to plug gaps where it has Dry box output crashes 26 some weaknesses. The past few PORT DEVELOPMENT months have seen the Danish gi- Americas oversupply 44 ant linked with several carriers, REEFER INDUSTRY including Hanjin Shipping Co Lines’ monitoring plans 29 Colombo’s hub port plan 45 and Hyundai Merchant Marine, Reefer builders take a hit 33 which has signed a Memorandum CARGO HANDLING of Understanding to join the 2M TANKS/FLEXITANKS Old cranes and new 47 SEACOM AG · Berbiceweg 5 · CH-8212 Neuhausen Switzerland · Tel: +41 (0) 52 632 04-00 · Fax: +41 (0) 52 632 04-09 alliance with MSC, K Line and Market gets tanked up 34 Switching tractor fuels 49 possibly even Zim. CARGO HANDLING NEWS

both productivity and safety con- new T2 tractor, one small hole has siderably. LBCT has also saved a to be drilled in the bottom plate. AUCOS gets rolling significant amount of money on At LBCT, the trailers (bomb carts) AUCOS is the automatic tractor/ and out of the cab to ‘hook up’ insurance costs, as the drivers not do not require brake lights, but trailer kingpin connection system hoses and cables. having to leave the cab lowers its the units for GCT Deltaport were developed and patented by Rü- Long Beach Container Termi- risk profile for accident claims. specified for the complete system, diger Metternich, who is MD of nal (LBCT) opted to install AU- AUCOS is also being installed at including air, power and data con- Germany’s RMM Metternich COS on the terminal tractors at GCT’s Deltaport terminal in Van- nection. Mechatronik GmbH. its new automated terminal. These couver, where it will be used with For the Americas, RMM chose AUCOS enables a fifth-wheel are manned machines which trans- new Künz widespan cranes cur- Magnum Trailer and Equipment tractor to hook up a trailer auto- fer containers between the main rently being installed, which will Inc. from Abbotsford, Canada, as matically, by connecting the trac- yard and the intermodal cranes. be operated by remote control. its strategic partner for trailers. tor’s compressed air and electrical Speaking to WorldCargo News, AUCOS can be installed on supply to the trailer through the LBCT president Anthony Otto any brand of tractor, usually with- AUCOS enables the air brakes to be kingpin assembly, eliminating the endorsed AUCOS, saying the sys- out modifications, depending on connected automatically on LBCT’s need for a tractor driver to get in tem is very fast and has improved the frame design – for Kalmar’s tractors Portek and Vahle link up in South East Asia Künz on the river Singapore-based port engineer- bile electrification systems, with Tok Soon Chong, Portek’s wide spectrum of port equipment Nedcargo International has minal, enabling us to handle more ing and operating company, Por- many applications in the con- CEO, said: “We believe that this and comprehensive after-market placed an order for a new Künz containers. We will also be mak- tek Systems & Equipment Pte tainer handling sector and gen- collaboration will deepen our port equipment engineering. rail-mounted gantry crane for its ing an important step in reducing

Ltd, part of Mitsui & Co of Japan, eral port industry. relationship and also allow us to One area where the two com- inland terminal at Alphen aan den CO2 emissions by making less use has signed an agreement with Portek is now the sole repre- expand our crane electrification panies could soon be working Rijn in the Netherlands. It will of heavy terminal equipment. In- Germany’s Paul Vahle GmbH & sentative of Vahle port technol- activities rapidly in this region.” together is converting E-RTGs replace one of two existing cranes stead, we will be handling more Co KG, aimed at leveraging their ogy products and systems for Portek is an established port to remote control. A number of when it starts operating in Sep- moves with a crane that will be knowhow and expertise to mar- South East Asia, and for other operator in medium-sized ports, leading terminal operators in Asia tember 2017. powered by green electricity.” ket Vahle products and systems in regions, agreed case by case, to with operations in several loca- are understood to be considering Nedcargo is the parent com- Thomas Zeh, sales manager South East Asia. market, install, commission and tions in Africa, Indonesia, Latvia adding positioning and data com- pany of Alpherium, and handles Benelux at Künz, added: “In the Vahle is a world leader in the provide after-sales services for and Malta. It also provides turnkey munication systems to E-RTGs, approximately 170,000 TEU per near future, we expect that in- design, engineering, manufac- mobile electrification projects in port engineering services to the before moving to remote-con- year at the terminal. The new land terminals in Benelux will turing and production of mo- the container handling industry. global port industry and offers a trolled machines. crane will have a rail span of take profit from ports congestion 60m, two 16m cantilevers, and a and container volume growth, lift height sufficient to stack high mainly due to Maasvlakte II, an- cube containers up to four-high other terminal operating with 48 (1-over-4). Künz automated stacking cranes.” The contract was signed be- Vincent Pelletier, area sales Smart + Proven = EcoMod® 2 tween Hans Künz GmbH and manager at Künz, added: “We Nedcargo International at the Lo- are delighted to deliver this new gistics & Distribution exhibition crane to Nedcargo. It features the held in Brussels last month. Bert Künz patented directional travel- van Grieken, multimodal direc- ling unit for longer rail and wheel tor at Nedcargo, said: “The new lifetime, as well as the aerody- crane is faster, more silent, strong- namic single girder for less wind er, more energy efficient, and re- resistance and lower operation quires less maintenance than the costs. After van Berkel in Veghel, existing cranes. Thanks to [its] Nedcargo is the second company higher handling speed, combined in the Netherlands that puts con- with greater reliability, we are in- fidence in Künz and its innovative creasing the capacity of the ter- crane design”. Introducing the next generation of the EcoMod® LED Floodlight Fabrisem fronting up Spain-based port and industrial conditions apply. For example, trailer specialist Fabrisem SA has over the years, trailers with special Designed and built to be maintenance free on ship-to-shore, yard and reported growing success with steel have been applied to port mobile harbor cranes. its range of port and heavy in- and inland terminal operators in dustrial trailers. In particular, the north-west Russia, where winter company noted that just 11 years temperatures can fall as low as -50 after introducing disc brakes in degC. A new customer is pulp and 2005, 99% of its trailer output is paper manufacturer Ilim Group, equipped with them. which has facilities in the Russian Milwaukee, WI USA • Phone: +1 414.973.3300 The reasons, said the company’s Baltic and Arctic regions. product manager Carlos Ruiz, Ruiz accepted that producing are outstanding performance and trailers in a eurozone country is [email protected] • www.phoenixterminalsolutions.com very low service and maintenance not easy, but said that Fabrisem, Distributed by: costs compared to traditional from the very beginning 20 years drum brakes, which still feature ago, decided there was no point widely in off-road trailer markets. trying to compete on price. In- “Changing air disc brake times stead, it focused on mechanical typically takes just a quarter of the strength, simple operation and time need to change ‘S’ cam drum lowest possible maintenance costs. brake linings, and this means cost The result is a trailer that pro- savings,” he said. vides safety for stevedores and All chassis are provided with a peace of mind for owners, with five-year warranty, “which speaks a fast return on their investment. for itself”, he added. Fabrisem “We manufacture robust, reliable can boast a number of bespoke trailers, designed and built to last,” orders where difficult operating concluded Ruiz.

Disc brakes are now fitted almost universally by Fabrisem on its trailers

2 October 2016 CARGO HANDLING NEWS C.RO Ports Terex Gottwald cranes for Ultramar Terex Port Solutions (TPS) has reported crane operator eye level of 38m. This gives Mejillones is also a returning customer, two orders for Terex Gottwald G HMK crane operators an excellent view of the as it has operated a G HMK 8410 crane contract 8410 mobile harbour cranes in the two- vessel and the work area and can (un)load since 2010, as well as having a previous rope variant from Chilean customers, post-NPX container vessels up to 19- generation HMK 280 E. The new crane scooped by both connected with Ultramar SA. One wide. Thanks to their geometry, they can also has a twin-lift spreader able to lift 2 x has just been delivered to Terminal Puer- also safely serve vessels that, for example 30t 20fts. It will also work with a RAM to Arica SA (TPA), mainly for container due to the high proportion of empty con- Revolver 4121 for tipping ores from bulk Kalmar handling. Shortly, it will be followed by tainers, lie particularly high in the water. containers shipped to the port from near- Cargotec-owned Kalmar is to deliver 34 an identical G HMK 8410 crane for Diego Bulnes Valdéz, general manager by mines into the holds of bulk ships. of its latest ‘G’ (Gloria) generation reach Compañia Portuaria Mejillones SA in at TPA, explained: “More and more ves- For service, TPS works closely with its stackers to European ro-ro terminal op- Puerto Angamos. sels with up to eight [high] containers Chilean sales partner, Comercial Fesanco erator C.RO Ports SA, part of Belgium- Both cranes offer heavy-duty lifting stacked on deck are arriving at our ter- SA. In addition, both the new cranes are based CLdN/Cobelfret shipping and capacity curves with a maximum lift- minal in Arica. With the new crane, we fitted with the Terex Gottwald Remote logistics group. The order was booked in ing capacity of 100t, an outreach of up can serve these vessels quickly and cost- Crane Access feature for use by the TPS September, and deliveries will be made to 58m and lifting speeds of 90 m/min. effectively.” The G HMK 8410 crane is service team. between December 2016 and December They are supplied with particularly high the third Gottwald crane in Arica, fol- 2017. towers, including correspondingly higher lowing deliveries in 2006 of two previous Terex Gottwald Model 8 mobile harbour The new units will replace existing boom pivot points and tower cabs, with a generation HMK 300 Es. crane in the G HMK 8410 two-rope variant equipment, and support C.RO Ports SA’s and CLdN RoRo SA’s growth plans over the next five years, which include deploying increasingly larger vessels. The machines join a fleet that already contains 19 Kalmar reach stackers. Of the 34 reach stackers, 19 will be equipped with K-Motion drive train technology and Kalmar’s SmartFleet re- mote monitoring and reporting system. As previously reported, the Kalmar K- Motion drive train incorporates the Dana Rexroth hydro-mechanical variable transmission. This allows a much smaller engine to be used, reducing fuel con- sumption and emissions by up to 40%, with less noise and higher uptimes. The product was officially launched at TOC Europe in 2015, and it is not 7+(+,*+/,*+7)25<2857(50,1$/ known how long Kalmar has exclusiv- ity from Dana Rexroth in the heavy lift truck world. Bart Van der Cruysse, general manager at Kalmar Belgium, commented: “We are pleased to support our customer’s growth 7 plans with our Gloria reach stackers. Kalmar K-Motion technology will drive further efficiencies in their operations re- sulting in substantial fuel savings and in- creased productivity. With Kalmar Smart- Fleet reporting statistics based on key performance indicators, our customer will have a clear and accurate picture of what’s really going on in their terminal.” Liftking to Mi-Jack Manitex International, Inc. has sold the Liftking line of rough terrain and mili- tary forklifts to Lanco, a division of Illi- nois-based Mi-Jack Manufacturing for US$14M. After transaction costs, the deal yielded US$13.3M in net cash proceeds, which Manitex will use to pay down its North American bank debt. Based near Toronto, Canada, Liftking has been operating since 1968, with over 8,000 machines in operation. Over the last 12 months, revenue from the Liftk- ing line for Manitex was approximately US$18M, and EBITDA was US$2M. Manitex has booked a profit on the sale of Liftking, having acquired it in 2006 for US$7.1M. David J. Langevin, chairman and CEO of Manitex, commented, “The divesti- ture of Liftking is another important step forward in our corporate programme to focus our resources on our higher margin core lifting businesses, and to reduce the company’s indebtedness, which remain our top corporate priorities this year and 48$/,7<0$'(,1*(50$1< heading into 2017. Liftking is a solid stra- tegic fit with Mi-Jack, and this transaction should be of substantial benefit to both parties. We are deeply appreciative of the efforts of the entire Liftking team and are confident that Mi-Jack will be an excel- lent owner and operator of this business.” “We are very excited to add the Lift- 'HVLJQHGIRUFRQWDLQHUKDQGOLQJWRLQFUHDVHHIILFLHQF\ king rough terrain forklift and military line to our family of companies, and look 0$),(FR0RGHăDQLQWHOOLJHQWGULYHSURJUDPPHIRU forward to building on the efforts that the previous ownership incorporated in HQYLURQPHQWIULHQGO\RSHUDWLRQDQGUHGXFHGFRVWRIRZQHUVKLS making them one of the leading rough terrain forklift and material handling 3RZHUIXODQGORQJODVWLQJ manufacturers in North America “ said VDOHV#PDILGH Mike Lanigan, an executive at Lanco. /RZHUFRVWSHUPRYH ZZZPDILGH “Liftking has a well-established net- work of dealers and customers who have been very satisfied with the reliability and quality of the Liftking products,” he added.

October 2016 3 CARGO HANDLING NEWS Mantsinen wins £6M ABP order BOXPORTER for Port of Koper der for a 95R tracked machine Konecranes has signed a deal p4). The operating system in- get better visibility and ergo- has been placed for the Port of with the Port of Koper in Slove- corporates innovations that have nomics, and thus a better overall Ipswich. In this last case, says nia for delivery next year of the been field-proven by Konecranes driving experience.” David Cooper, some very unu- first BOXPORTER RMG unit, in the remote operation of its au- Luka Koper has been a key sual criteria led to the 95R being to go into operation at the port’s tomated stacking cranes. customer for Konecranes over a chosen. intermodal rail yard. “Konecranes has again showed number of years. By the end of Tony Rooney, managing di- The BOXPORTER RMG is how we can use the latest crane this year, it will operate a fleet of rector of Cooper SH, said: “This designed as an economical RMG technology, this time to improve 20 Konecranes RTG cranes, an wasn’t a single contract for five with an advanced operating sys- the crane driving experience, STS crane and two RMGs. The machines, but rather five indi- tem that gives the crane operator while respecting our environ- port’s intermodal gateway status vidual contracts each involving an exceedingly clear view over ment and terminal characteris- for parts of Central/Eastern Eu- the provision of one crane. The every container move, and a cab- tics,” said Marko Babič, director rope has been growing, and it is five ABP sites had complete free- in position specially worked out at Luka Koper Container Termi- also touted as a cost-effective al- dom of choice in terms of their for train (un)loading operations nal. “With the BOXPORTER ternative to Rotterdam for Mu- handling solution and each port (WorldCargo News, June 2016, RMG, our crane operators will nich/Bavaria-Far East flows. A Mantsinen 200M HybriLift at work in Antwerp selected Mantsinen as its pre- ferred equipment.” Cooper SH Following one of the largest ten- The 200M is touted as the will begin delivering the cranes ders of its type, Associated Brit- world’s largest ropeless hydraulic from this month onwards. Crane upgrade for Catoosa port ish Ports (ABP) has ordered five crane, and it will be operated at Cooper SH has supplied a new The Tulsa Port of Catoosa in completely, sandblasting and re- the hoisting system. The crane ropeless hydraulic boom/stick the Port of Garston. The crane, Konecranes 32-1200 C FLT to Oklahoma has completed an painting the girder sections, and is operated by Tuloma Stevedor- cranes purpose-built by Mant- with a self-weight of 280t, will the Port of Sunderland, to go upgrade of a dual-hoist 200t installing new components in ing, Inc.. sinen for port operations. be the first 200M to be delivered with a previous generation 32- fixed gantry crane as part of a Ordered through Finland- to the UK. Up to now, the big- 1200 B it supplied several years wider redevelopment project. The crane has two trolleys mounted on a fixed frame based Mantsinen’s sole Brit- gest Mantsinen crane in the UK ago. An interesting aspect of Catoosa is a multimodal port ish Isles representative, Cooper is the 160M HybriLift supplied this deal is that, for some time that handles around 2.7 Mtpa Specialised Handling, the cranes by Cooper SH to Belfast Har- now, Impact Handling has been of freight, including intermodal will be operated at ABP’s Ip- bour earlier this year (WorldCargo Konecranes Lift Trucks’ official containers. swich, King’s Lynn, Teignmouth, News, May 2016, p11). distributor in the UK. David The crane and the dock it sits Garston and Swansea facilities. A 90M HybriLift wheeled Cooper explained that Cooper on were refurbished as part of Among the five cranes will be machine has been ordered for SH extended its arrangement a plan to attract container traf- a Mantsinen 200M HybriLift – the Port of Teignmouth, and two with Konecranes to place orders fic and breakbulk cargo carried the name for Mantsinen’s hybrid near-identical 120M HybriLifts with them until December last by barge from the Port of New drive, fitted as standard on most will be delivered to the ports of year, and this resulted in deliv- Orleans. With a lifting height of its models. Swansea and King’s Lynn. An or- eries spilling into 2016. He said of over 90ft, the crane has a there are still some new Kone- 100ft span and two separate cranes lift trucks to supply this trolleys that each has a main and year, including one order for auxiliary hoist – one with a ca- four machines. Both the new pacity of 100/50t and the other truck and the existing machine 100/40t. at Sunderland will be serviced The upgrade was completed VOLUME 23 NUMBER 10 • ISSN 1355-0551 and maintained by Cooper’s own by Whiting Services, and in- ISO-accredited engineers. cluded taking down the crane EDITORIAL: PAUL AVERY • EDITORIAL DIRECTOR E-Mail: [email protected] BENEDICT YOUNG • MANAGING EDITOR Navis/ZPMC deal RAM awarded costs E-Mail: [email protected] VINCENT CHAMPION • CONSULTING EDITOR ZPMC has announced that a to achieve the implementation RAM Spreaders’ Australian sub- its damages, and its claim against E-Mail: [email protected] “memorandum of strategic co- of Navis’s terminal operating sidiary NSL Engineering PTE AMMESA managing director JOHN FOSSEY • CONSULTING EDITOR operation” was signed in Shang- system at more terminals around Ltd has been awarded its costs Murray Bridle personally for E-Mail: [email protected] hai this month between Huang the world by matching with in the patent and unfair trading unfair trading practices, which JANE JACKSON • PRODUCTION EDITOR Qingfeng, president and deputy ZPMC’s general contract pro- practices case it brought against was unsuccessful. [email protected] secretary of the Party Commit- jects of systems,” said ZPMC. Australian Mobile Mining Bridle was awarded costs for tee of ZPMC, and Benoit de la Navis, a part of Cargotec, Equipment, Systems & Accesso- his defence against the unfair ADVERTISING: Tour, president of Navis. along with Kalmar, is undoubt- ries Pty. Ltd (AMMESA). trading allegation, to the extent SIMON PESKETT • ADVERTISEMENT DIRECTOR “For ZPMC, the coopera- edly looking at the automation As reported last month that any such costs can be iden- E-Mail: [email protected] tion with Navis will enhance pipeline and seeing that there are (WorldCargo News, September tified separately from AMME- MIKE FORDER • COMMERCIAL DIRECTOR ZPMC’s ability to provide a number of projects in China 2016, p1) NSL won a judge- SA’s costs incurred in the gen- E-Mail: [email protected] complete systems for terminals, expected to proceed. For the ment from the Australian Fed- eral proceeding. JAYANA AUSTIN • ASSISTANT ADVERTISEMENT MANAGER which provides more possibilities three automation projects cur- eral Court declaring that its After it won the initial ruling E-Mail: [email protected] for ZPMC to seek more projects, rently underway in China (in Revolver container rotating on 17 June, NSL did not pur- especially general contract pro- Xiamen, Qingdao and Yangshan), system did not infringe AMME- sue its claim for damages. The ADMINISTRATION & CIRCULATION: jects of full-automatic container ZPMC is supplying most of the SA’s patent. NSL has now been Court ruling on costs indicated GILL TILBURY • OFFICE MANAGER terminals. For Navis, the coop- cranes, whereas Navis is supply- awarded its legal costs, with the that NSL had earlier proposed E-Mail: [email protected] eration can help Navis make use ing the TOS for one of the ter- exception of any costs incurred damages in the order of NICCI VIGORITO • SALES & MARKETING COORDINATOR of ZPMC’s global customer base minals, Qingdao. in connection with quantifying A$50,000. E-Mail: [email protected]

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LATIN AMERICA AGENT: VICTOR GALLARDO, MUNDOMARITIMO LTD. Telephone: +562 2326 2593 Fax: +562 2326 4022 E-Mail: [email protected]

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4 October 2016 NEWS

PARTNERS IN PRODUCTIVITY Strength And Determination In Malaysia

The Malayan tiger symbolizes bravery and strength, two characteristics but also one of the top 5 ports in the world in terms of productivity. needed in the challenging environment the tiger inhabits. Bravery and The container throughput in the terminal has increased from 2.6 million strength combined with strong determination are also characteristics for TEUs in 2004 to 6.9 million TEUs in 2012. Westports is one of the gold one of the high achievers in the port industry – Westports Malaysia. By standard ports in container handling, which is why it is no surprise to find spurring its workforce to deliver and maintain standards that exceeds the that Bromma has delivered 195 crane spreaders to Westports during the norm, Westports is constantly striving for excellence in productivity and years. To succeed in container handling, you need the right equipment, turnaround times. Westports is not only a leading port in South East Asia, and you need the right support. You need a partner in productivity.

In Asia, and everywhere, Bromma is committed to helping our customers succeed.

May 2013 5 PORT NEWS

August 2016, total port volume was 1.56M TEU, with Tecon Ecoporto stands empty handling 39.2%, BTP 36.8% and Embraport 18.2%. The Ecoporto Santos box ter- stand idle, except for a handful of Other struggling facilities in Luiz Araujo, the CEO for Eco- minal has almost given up on monthly breakbulk calls from op- Santos are the two terminals op- porto Santos, said that all the box handling container ships for the erators such as BBC Chartering. erated by Libra Terminais, which facilities had been caught up in a foreseeable future as two new Ecoporto’s market share was have sunk to a 5% share in the “perfect storm” since 2012, with terminals in the Brazilian port of just 0.7%, for the period from case of T-35 and 0.02% for T-37, more capacity coming on the Santos continue to increase their 1 January to the end of August while the big three box termi- market (BTP and Embraport) at market share. 2016. At the end of 2015, it had nals march ahead. In 2015, total the same time that shipping lines EcoRodovias bought the ter- a 4% market share (out of 3.78M throughput in Santos was 3.78M were cutting services and service minal (then called Tecondi) for TEU overall for Santos). Back in TEU, of which Tecon Santos strings. Rs1.3B (US$416M) in 2012, 2010, Tecondi was over capacity, handled 34.7%, Brasil Terminal “The smaller shipping lines and installed three STS cranes handling 520,000 TEU for a 13% Portuaria (BTP) 31.5%, and Em- got squeezed, and so did the and six RTGs, all of which now share of the market. braport 15.9%. From January to smaller terminal operators,” he After taking over Tecondi in 2012, EcoRodovias added three STS cranes told WorldCargo News. “But we are still here for when the market LCL” cargo. “While we wait for days when it was Tecondi and picks up.” the international container busi- Termares (a sister company), to At the start of last year, Eco- ness to pick up, and smaller carri- handle around 1,200 containers porto Santos was employing just ers to leave the big alliances and per month. over 1,200 people at its down- find a niche terminal in Santos, In April of this year, Ecoporto CONTAINER WEIGHING town offices and Saboo terminal we have been busy capturing left the influential box terminal site, but that number has been more than 55% of the LCL im- association Abratec after more cut to 600 via three waves of re- port market and 80% of the ex- than 15 years of membership. A dundancies. port market in Santos.” source said this was to cut unnec- In the meantime, Ecoporto has The company is taking ad- essary costs and commitments, turned to logistics, and Araujo vantage of the EcoRodovias but it is still a member of ABTP, said that the company is today logistics networks, its warehous- which covers all port operations, the “number one in Santos for ing space and expertise from the not just containers. SAAM into Costa Rica Terminal SAAM Puertos has signed a and SPGC handled an aggre- US$48.5M agreement to acquire gate 4.9 Mt in 2015, and their a 51% stake in two concessions combined revenues came to for LNG in Puerto Caldera in Costa Rica US$46.6M. – Sociedad Portuaria de Caldera “This investment is a good (SPC) and Sociedad Portuaria reflection of the growth strategy in Pori Granelera de Caldera (SPGC). that we are implementing in the The first LNG terminal in Fin- The seller is Colombia’s Socie- region, and this is a very well land has opened in the oil and dad Portuaria Regional de Bue- managed enterprise, to which we chemicals harbour of the port of naventura SA. can add value,” stated Macario Pori on the country’s west coast. The transaction is subject to Valdés, CEO of SAAM. “In ad- The €80M project, financed by approval by Costa Rica’s regu- dition, it allows us to join forces Skangas with the support of a latory authorities. Assuming this with partners who have knowl- €23M grant by the Finnish Min- is obtained, SAAM Puertos – edge of and experience in the lo- istry for Employment and the part of the Chile-based multi- cal market.” Economy, helps to diversify the national company SAAM, which The local partners are Saret country’s energy market. provides port, towage and logis- (21%) and Logística de Granos Ships can bunker LNG using tics services – will have a stake (19%), and the other shareholder a bunker vessel at the terminal in 12 port terminals in seven is Colombian company Grupo or by ship-to-ship. Deliveries countries in the Americas. SPC Empresarial del Pacífico (9%). can also be made by truck, al- though industrial customers such Equipment at Puerto Caldera includes two Liebherr mobile harbour cranes as Huntsman Pigments and Ad- ditives, Porin Prosessivoima and Norilsk Nickel Harjavalta are supplied with vaporised gas fed through a local 12 km connect- ing pipeline. LNG storage capacity is 30,000 m3 (15,000t) with a 42m diameter, 35m high tank. The terminal area includes loading docks, process units (compres- sor and vaporisers), a flare torch, three loading docks for road tankers, a transformer building, and a heat production unit.

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6 October 2016 PORT NEWS

Containers handled at Panama’s main ports Panamanian container ports decline Port 2014* 2015* Change 2016* Change Balboa 2,078,305 2,094,410 0.8% 1,908,575 -8.9% Containers handled at Panama’s main coast of Central and South America. that large container ships can be ac- MIT 1,369,784 1,338,471 -2.3% 1,172,320 -12.4% ports fell by more than 13% in the first Panama is a maritime and distribu- commodated and to increase inter-port CCT 346,170 529,352 52.9% 400,131 -24.4% eight months of 2016 to nearly 4.1M tion hub for the area, and any significant competition. Cristobal 504,036 554,233 10.0% 467,076 -15.7% TEU, compared with almost 4.7M TEU change in regional trading conditions af- Lázaro Cardenas and Manzanillo PSA - PIT 157,069 156,252 -0.5% 115,196 -26.3% in the corresponding period of 2015. fects its cargo throughput immediately. in Mexico, and Cartagena and Bue- Others 12,124 14,658 20.9% 12,749 -13.0% A slowdown in transhipment activity In particular, this year has seen weakness naventura in Colombia are among Total 4,467,488 4,687,376 4.9% 4,076,047 -13.0% was the main reason for the slide, this in several core markets, including Ven- ports in the region that are handling a itself reflecting lacklustre growth rates ezuela and Ecuador, where the low price larger number of big ships and some *January-August figures only. Source: Autoridad Maritima de Panama in the economies of many countries in of oil has continued to depress trading cargo previously shipped via Panama. the Caribbean basin and along the west volumes. All of the country’s container han- (Costa Rica), Puerto Antioquia (Colom- the Corozal Container Terminal. It also appears as if the conversion of dling facilities struggled, with the big- bia) and Posorja (Ecuador), there appears A project of the Panama Canal Au- breakbulk cargo to containers is slow- gest falls registered by PSA Panama no lack of appetite to invest in new con- thority, it will be built in two phases ing in the Latin America region, and, in International Terminal (PIT) and the tainer handling facilities in Panama. with the first stage comprising 1,350m FESCO in some cases, ocean carriers are making Evergreen-controlled Colon Container In the past six weeks, for instance, of quayline and an envisaged annual more direct port calls with their ships, Terminal (CCT). APM Terminals, Terminal Link, PSA throughput of 3M TEU. Phase 2 will in- rather than using relay hubs. Partly, this Despite the slowdown and the fact International and Terminal Investment volve the construction of another 731m Rusagro deal is related to both the large-scale invest- that competition is intensifying as new Limited have all pre-qualified for the 20- of berth, and will raise the facility’s ca- FESCO Transportation Group has ments taking place in many ports, such terminals are planned/will open in Moin year concession to develop and operate pacity to 5M TEU a year. signed an agreement with Rusagro, one of Russia’s largest food producers, to ship containerised grain and other farm commodities from a dedicated area of FESCO-run Vladivostok Commercial Sea Port (VMTP). Rusagro already uses Vladivostok for exports to Asia-Pacific markets, but it has been expanding its land bank and im- proving productivity, said CEO Maksim Basov, and thus needs access to bigger facilities in the port. For its part, VMTP is keen to increase and diversify its business. Its director, Valeriy Mestulov, said the operator is prepared to offer Rusagro “the most at- tractive terms” for handling its food ex- ports via the port. Last year, Rusagro and FESCO signed a contract for handling bulk grain through VMTP, and the first shipments were made in January this year. VMTP is currently the only Rus- sian Far East port handling grain exports. Under the new agreement, the par- tiers will first determine potential han- dling volumes, and then work to towards optimising handling and processing pro- cedures to ensure a smooth and cost- effective flow of traffic. FESCO’s other assets include rail op- erator Transgarant and a 50% stake in in- termodal company Troika. It also oper- ates around 36,000 containers, 19 vessels and four ice-breakers. TICTS in the Dar spotlight According to reports in Tanzania, Presi- dent John Magufuli has ordered the Tan- zania Ports Authority (TPA) to review Tanzania Internal Container Terminal Services’ (TICTS) concession at Dar es Salaam, acting on the recommendation of Musa Assad, the controller and audi- tor general. In his audit, which was published in April, Assad stated that “the government should review the TICTS lease agree- ment, with a view to ensuring that public interests are protected therein”. President Magufuli has also asked the Ministry of Works, Transport and Communication to become involved in talks between the TPA and TICTS. All this does not have to be bad news for TICTS. Magufuli could be suggest- ing that the TPA and the operator merely need to have a different relationship, or that a new deal needs to be agreed. How- ever, TICTS, which is mainly owned by Hutchison Ports, has regularly come un- der attack from Tanzanian politicians. In the short term at least, it does add to the uncertainty over terminal operation, par- ticularly with regards to the length of the concession. The original concession was set at 10 years, but in 2005 it was controversially extended to 25 years. Assad argued: “The legal implication of the extension of the lease agreement before the first lease agreement had expired should be con- sidered and the possibility of terminating the lease agreement should be evaluated.” If the government’s concerns cen- tre on performance, then the delivery by the end of this year of two new 41t SWL/45m outreach (15-wide) quay- side gantry cranes from Terex Port So- lutions may improve efficiency. TICTS has revealed that the two cranes will cost TZS39B (US$17.4M).

October 2016 7 PORT NEWS Inching forward in Port of Manta The long and difficult concession pro- as part of a “validation” process. There financing and building an over-dimen- cess at the Port of Manta in Ecuador will then be a further negotiation pro- sioned terminal. is continuing, despite becoming even cess on technical details before a con- The Terminales Internacionales de more political, against the backdrop of a cession would be awarded, likely to be Ecuador (TIDE) facility that was to be national election next year. towards the end of this year. built by HPH had a planned capacity After two failed attempts to re- It is understood that Agunsa has been of 1.6M TEU. One of the reasons that start the concession process follow- fairly consistent in its approach through- deal fell apart was the cost, the lack of ing Hutchison Port Holding’s (HPH) out the three concession attempts. As cargo demand and uncertainty over de- withdrawal from Manta in 2009, the previously reported, it has proposed an veloping transport links to connect such government is running a third bidding investment in the region of US$175M a large terminal to the cargo base, in- process to concession the port, based on to develop multipurpose facilities, build- cluding a new highway from Manta to the private initiative presented in Janu- ing on Manta’s existing infrastructure, to Guayaquil. ary 2016 by Chilean stevedoring firm support the local market. Though the state does not have the Agunsa. However, in the previous two failed funds to finance the infrastructure to In the current market, Manta might have to give up aspirations for a large container terminal Bids for the concession closed in early concession attempts, the port authority support a large port, there continues to October, and Agunsa submitted the only has been looking for a company willing be a belief in some circles that a private tion looming, the decision to proceed time when growth in container traffic is bid, which now has to be considered by to develop a much larger facility, only to investor could be found by tapping Chi- on a more modest scale with Agunsa slowing down, it remains the only firm the government and the port authority end up finding that there is no interest in nese sources in particular. With an elec- has become a political football, but, at a proposal on the table. Indonesia moves on BOOSTING CONTAINER dwell time Indonesia’s Ministry of Transport is look- ing to further streamline pre-clearance regulations as it presses on with its plans to reduce dwell time at the country’s ports. HANDLING PRODUCTIVITY “The remaining 14 regulations are being examined. We’re aiming for the pre-clearance process to take only one day, while customs clearance and post- clearance processes will take only half a day and one day, respectively,” transport TEREX PORT SOLUTIONS – CUSTOM AND HOLISTIC SOLUTIONS TO MEET YOUR NEEDS minister Budi Karya Sumadi was quoted as saying in The Jakarta Post. Previously, the government had shifted 60 other Terex Port Solutions offers a comprehensive A For manual and automated terminals pre-clearance regulations online. Cutting dwell time to 2.5 days is a key portfolio of products and services: A Advanced software to provide realistic views aim of the government, and has strong A For loading & unloading, transport, of terminal cargo flows prior to construction political support, as it was instigated by the country’s president, Joko Widodo. stacking and handling containers A Value-preserving life cycle support to State port operator PT Pelabuhan In- donesia (Pelindo) had previously man- A For terminals of all shapes and sizes reduce downtime and cost of ownership aged to cut port dwell times from 5.7 days to 3.2 days, but the government is keen to break the 2.5-day barrier to boost competitiveness, said Budi. According to ministry data, currently it takes 1.6 days to complete the pre-clear- ance process, while the customs clearance takes half a day, and post clearance takes 1.25 days. Budi wants to streamline the procedure, “unless there are indications of dangerous Discover our holistic goods or any goods containing malicious container handling solutions payloads like explosives”, he said. www.terexportsolutions.com At this stage, the 2.5 days is applicable only at Jakarta. Other major ports such as Surabaya, Medan and Ujung Pandang have a target time of 3.5 days, the ministry said. To help them reach this, the ministry urged them to copy Jakarta and move to 24-hour operations with qualified staff. Belawan in Medan has moved fast and built a 1-ha buffer zone to accommodate import containers that have a “Letter of Approval for Expenditures” (SPPB). Boxes will be moved to the buffer zone after one day. Capacity for Manila port Harbour Centre Port Terminal, Inc. (HCPTI) has taken various steps to ex- pand its breakbulk operations in the port of Manila. The move follows rising cargo volumes and the deployment of larger ships by several of the company’s customers. To accommodate their needs, HCPTI has increased the facility’s storage area threefold to 6,000t, repaved the yard area to both speed up cargo handling opera- tions and allow better and safer access for trucks, and started to replace ageing cargo handling equipment. A conveyor belt system has, for instance, been completely refurbished. In addition, HCPTI has rehabilitated sheet piles and erected a concrete wall to protect the western extremity of the ter- minal and allow barge and transfer opera- tions to take place. Longer term, the terminal manage- Terex, the Terex Crown design and Works For You are trademarks of Terex Corporation or its subsidiaries. All other trademarks are property of their respective owners. © 201 Terex Port Solutions ment company wants to acquire more land to expand the operation further.

8 October 2016 PORT NEWS

November 2015 9 PORT/SHIPPING NEWS

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10 April 2016 PORT NEWS St Petersburg changes TraPac extending in Oakland St Petersburg-based forwarder Modul has heated warehouse of 20,386 m2, and an acquired the Shushary logistics terminal office block. Its internal railway tracks have The Port of Oakland has concluded a pay annual fixed rent (after deductions) from Eurosib, another locally based trans- a total length of 3.1 km and it has up-to- deal with TraPac to allow it to expand of US$7.2M in the first year, rising to port and logistics group. The Shushary date equipment, machinery and software. into part of the Outer Harbor Terminal US$21.3M in the 14th year of the con- industrial cluster is around 12 km from Earlier this year, another St Petersburg- (OHT) left vacant when Ports America tract. The first 10 months of the lease on the Big Port of Saint Petersburg (BPSP), based logistics group, Admiral, announced Outer Harbor Terminal filed for bank- the expansion area is rent-free to allow and Global Ports also has a facility there plans to construct new transport and lo- ruptcy in February this year, leaving construction. In addition TraPac will pay (Logistika Terminal). gistics facilities near the port by 2019. empty its two leaseholds covering berths a per-TEU fee on every box above a The newly named Modul Yuzhny ter- These would include 40,000 m2 of Class A 20-26. The port and TraPac have agreed certain threshold (estimated to be worth minal joins Modul’s existing facility near warehouses, a DC at Kronstadt, and ware- terms that will allow TraPac to expand US$4.4M over the life of the lease). BPSP, Modul Pulkovsky. Modul also op- houses at the Maryino industrial park. its footprint from 66 acres to approxi- Port obligations include US$4.6M in erates three terminals elsewhere in Rus- Admiral’s chairman Yuri Saulidi said mately 123 acres, with an initial term of bollard and fender improvements, reim- sia. CEO Aleksandr Altschuller said that the facilities are convenient for the Moby 14 years. The new lease covers some of bursing TraPac up to US$2.5M for “ma- TraPac has reached a deal to expand its ter- Modul Yuzhny will help to diversify the Dick container terminal and the new berth 24, the majority of berths 25 and jor maintenance on three port-owned minal in Oakland range of services and ensure optimal allo- port at Bronka outer harbour. Admiral is 26, and part of another area known as cranes that was deferred by a prior ten- cation of freight according to destination. planning to invest around US$58M in the berth 33. ant”, and US$0.5M on spot painting the The agreement also includes giving Modul Yuzhny is located close to the project, with an expected payback period Under the agreement, TraPac will in- upper portions of the three port-owned TraPac the right of first negotiation for Shushary and Kupchinskaya rail stations of six years. vest US$27.3M in new equipment, and cranes. the rest of berth 24 and berths 20-23. and the St Petersburg ring road. It occupies 15.6-ha, with a CY, an am- bient warehouse of 9,446 m2, a Class A Lien Chieu proposal New Generation Vietnam is considering building a new port near the currently overloaded Da Nang facility, according to Tediport, a Domestic Reefer ports and engineering consultancy firm. Three construction phases up to 2050 will ultimately give the planned Lien Flex-Box specialize in supply of new 10’, 20’ and 40’HC Reefers Chieu Port an annual capacity of 46 Mt for a total price tag of VND32.861T Worldwide Shipping Available • Full 5 Year Engine Warranty (US$ 1.4B). Funds will come from ODA loans, and public-private partnership (PPP) deals Carrier ThinLINE (Reciprocating Compressor), Carrier PrimeLINE (Scroll weighted 2:1 to private capital, said Tedi- port in its final report on the pre-feasibil- Compressor), Thermo King Magnum Plus engines available ity study for Da Nang officials. Projected investment is VND7.378T Stock available year round in China for shipping to 2022 (of which 46% will be state capi- tal, with private capital in the form of a PPP at 54%) to 2030 VND7.857T (27% state capital, 73% private capital) and the final phase to 2050 at VND17.626T (26% state capital, 74% private capital), accord- ing to Tediport. The project has two components. Component A is a state investment, in or- der to build shared infrastructure for the terminal (dredging and backlands, jetty, breakwater, roads, etc) at an estimated to- tal cost of VND10.209T (US$ 459.38M), 10’ Connectors Butchers Curtain T Bar floor Safety Door Flat Floor Internal Lighting to be funded through government sourc- es and ODA loans. Component B is aimed at the private sector, but Tediport noted that govern- ment funds are also an option. It includes 12 berths, roads, container yards, build- ings, equipment and berth dredging. The total investment for component B is VND22.652T (US$1.02B) in own capital, Standard Features at NO EXTRA COST include; Additional Features available on request; bank loans, bond loans or ODA funding. When phase one finishes in 2022, Lien • Safety door (which can be opened from • Butcher door (1/3, 2/3 door) Chieu will have capacity of 1.845 Mtpa. the inside) Phase two, ending in 2030, will raise that • Flat floor to 17.5 Mtpa, and then 46 Mtpa at full • Carrier & TK machinery with worldwide warranty build out in 2050. • Recessed Lighting • Single locking rod on right side door, for • Sliding PVC Curtain easy opening Warehouse • Dual Voltage Transformer for Eichholtz • Longer handle for extra leverage • Rubber grip on right side handle for easy opening Hamburg company Eichholtz, specialis- 40’ HCRF / 20’ RF / 10’ RF ing in handling and storage of sensitive foodstuffs such as nuts, seeds, dried fruits • Extra lubrication on door mechanisms for Available now in these locations and pulses, has opened what is touted as smoother opening one of Europe’s top-rated temperature- Antwerp, Bremerhaven, Hamburg controlled warehouses in the port, with • Neutral container markings energy-saving cooling plant. In the pro- Rotterdam and Gothenburg cess, it has doubled its local cool/cold storage capacity to 60,000 m3. The new warehouse caters for al- monds, hazel and cashew nuts, pumpkin CONTACT US NOW FOR A VERY COMPETITIVE QUOTE: seeds from China, poppy, sunflower and chia seeds, all used, among other pur- poses, for bread roll baking mixtures. (PDLOQHZ#ÁH[ER[FRP Ambient temperature is a constant 10- 12 degC, with humidity at 65%, offer- ing optimal conditions for guarantee- 7HO)D[:HEZZZÁH[ER[FRP ing quality and avoiding infestation by mould or insects. Goods are stacked on mobile racks 7KH3KRHQL[/XDUG5RDG:DQFKDL+RQJ.RQJ up to the ceiling height of 10m. Digital temperature management with precise humidity control is designed to ensure that the cooling/heating plant is espe- cially energy-efficient.

October 2016 11 PORT NEWS

quoted in the local press as saying: “In the last meeting of the PPA [Philippine Bilbao breakwater completed Davao scaled back Ports Authority] board, I told them to take a look, re-evaluate it, and, if it’s Plans for a major redevelopment of annual growth originally planned. necessary, to modernise it on the basis Davao Sasa port in the Philippines are One shipping industry source, told of the previous PHP4B plan, then let’s likely to be reduced, owing to concerns WorldCargo News: “The proposed do it.” about costs and capacity, sources have amount of this project at PHP18.9B The downgrade could embarrass the told WorldCargo News. (US$391M) might be reduced as the Philippines. Davao was to be the first It was planned to expand capacity to new government of president Duterte port modernised using a Public Private 3.1M TEU by 2040, but current think- is currently reviewing the capacity Partnership, and five consortia, a mix of ing is that the port will be handling of Davao Sasa [to see if it is] enough local and overseas companies, had been a much smaller 1.2M TEU by then, and sufficient for this project. Accord- shortlisted to run the port under a 30- WorldCargo News understands. ingly, the cost needs to be manageable year contract. Though there are still plans for a because of its direct impact in cargo- ICTSI is still following the pro- new quay, cranes and other equip- handling charges.” ject. “We continue to be interested, as ment, there are also concerns about the Government officials confirmed long as it makes economical sense. cost of development, and doubts over there were talks on the subject but de- We are just waiting for the govern- the proposed market – fruit, especially clined to provide further details. ment’s decision on the new terms bananas, for export. Cargo growth is Transport undersecretary for the of reference,” commented an ICTSI now forecast to be less than the 6% maritime sector Felipe Judan has been spokesperson. Bilbao has plenty of long-term capacity for deepsea shipping

The Port Authority of Bilbao has com- pleted the works on the Punta Sollana Breakwater extension, in the port’s industrial zone in the Outer Abra. The works have taken four years and will boost solid and liquid bulk traffic, since the length of the dock has been increased from 350m to 680m with a minimum 20m depth, while the back- land has been enlarged by 30,000 m2. Two Capesize vessels can now berth simultaneously. The EU contributed some €3.53M to the works as part of the TEN-T 2012 project, with the port authority (APB) financing the remainder of the already certified €40.11M total cost. The work was carried out by a consortium made up of Cyes Infraestructuras and Sacyr Construction. The new breakwater features a num- ber of technical and environment- friendly innovations. For example, the wave screen’s high-performance con- crete, which has a density of up to 2.65 t/m3, incorporates recycled black slag, a by-product of the electric arc fur- nace steel plants in the Bay of Biscay. This enabled the overall budget to be reduced by €1M. Bilbao’s industrial Punta Sollana/ Punta Ceballos/Punta Lucero zone is the port’s main bulk traffic generator, accounting for 18.8 Mt in 2015, mostly liquid bulk. As previously reported (WorldCargo News, July 2016, p12), APB has em- barked on the final phase of the mas- sive Outer Abra harbour expansion, to complete a project begun in 1992. Southampton splashes out

The latest straddles en route from Poland

Just as it takes delivery of nine more straddle carriers from Kalmar, with eight more to follow as part of its fleet renewal and expansion programme, DP World Southampton has announced that it will purchase two more STS cranes, for delivery in 2018, able to stack up to 24 rows across. Previous deliveries to DPW Southampton have been Megamax cranes from Liebherr. The operator re- cently took over an extra 11.2 acres of land at the north-east edge of the termi- nal, creating extra ground space to store containers, and bringing the size of the terminal to almost 100-ha.

12 October 2016 PORT NEWS APM Terminals Quetzal damages APM Terminals has agreed to ing the course of the conces- the World Bank. The concession, pay the Guatemalan state a sion. Deemed “an investment”, which was signed with Empresa US$32.7M penalty raised against this money will purportedly be Portuaria Quetzal (EPQ), is for its Terminal de Contenedores ploughed into social develop- 25 years, and covers an area of Quetzal (TCQ) subsidiary. ment projects to improve health 340,000 m2. This forms part of an agreed and education in communities However, as reported in the set of measures detailed in a near the terminal, which is lo- June 2016 edition of WorldCargo Memorandum of Understand- cated in Escuintla Department. News (p7), behind the concession Terminal de Contenedores Quetzal in Guatemala ing signed with the government, APMT acquired an 85% stake award lay allegations of corrup- which will ultimately involve the in TCQ when it bought the tion involving former Guatema- demanded a bribe of U$30M to gentine partners, and US$0.5M to step down from his post as concessionaire making payments TCB Group this year. The other lan president Otto Perez Molina enable TCB to scoop the conces- was set aside for “expenses”. managing director of Barcelo- of US$43.2M, with the balance 15% is held by the International and former vice president Roxa- sion in 2013. Of this, US$24.5M Xavier Soucheiron has “reached na-based Grup Marítim TCB. of US$10.5M being paid dur- Finance Corporation, an arm of na Baldetti, who are said to have was earmarked for local and Ar- a mutual agreement” with APMT No reasons have been disclosed. Rail boost for Krishnapatnam Krishnapatnam Port Company and/or Jawaharlal Nehru Port vice offers faster transit times than (KPCL) is hoping that the open- (JNPT), which is located on In- trucks, and also allows shippers to ing of a new on-dock rail ter- dia’s western seaboard. move more cargo that cannot be ELME in a box elme.com minal by Concor, the container Anil Yendluri, CEO of KPCL, moved on the highways because transport arm of state-owned said: “As a new generation port, of weight restrictions. Indian Railways, will boost the our objectives and efforts are Moreover, for traders do- port’s transit trade. focused on providing the best ing business with Asia and us- The new portside rail yard of- in class services to both our ex- ing JNPT as their main gateway fers additional capacity for load- porters as well as importers. With for Bangalore, a Krishnapatnam/ ing/discharging trains, cuts out Concor on board, Krishnapatnam Concor port/rail combination drayage times to the former off- will now be able to ensure a new can save more than a week on port site, and generally reduces level of smooth processing, quick transit times. transport costs for its customers. It turnaround and easy throughput Meanwhile, plans are progress- also ensures that users have access of cargo, thereby fostering trade, ing for the development of a mul- to the most secure and safe form boosting industrial growth and timodal logistics park at the port. of transport to key inland loca- aiding in the development of the KPCL has acquired over 140 acres tions such as Bangalore. region.” of land for the project and is near In particular, the new termi- Currently, Concor runs a twice to finalising a deal to add a further nal gives Krishnapatnam a com- a week rail service between the 24 acres. Construction work on petitive alternative to routings via port and the ICD at Bengaluru. the park is expected to start later Chennai, 180 km to the south According to Concor, the ser- this year or early in 2017. Malta Freeport set to expand Malta Freeport is to take over a nearest competitor in the tran- investment of €28M and bring- parcel of land currently occupied shipment business in the Western ing the STS crane fleet to 23. by the Distripark, which will in- Mediterranean, MCT Gioia Tau- New crane rails along a length of crease its theoretical annual capac- ro, handled 2.5M TEU last year. 360m are being laid to accommo- ity to 4.5M TEU by 2020. Terminal 2 will soon receive date the new cranes. 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www.mantsinen.com 14 October 2016 PORT NEWS Second box terminal for Damietta Damietta Port Authority (DPA) in Egypt this as greatly enhancing the port’s abil- This is because consolidation in the liner has entered into a Memorandum of Un- ity to accommodate the latest container shipping industry makes container hubs derstanding with China Harbour Engi- ships in service and also improving the much riskier investments these days. neering Company for the development ranking of Damietta in the eastern Med- Even for gateway cargo, competition is of a second container handling facility iterranean.” likely to be intense, as several new con- in the port. The deal, which was signed DPA will now prepare and launch an tainer terminals are either under develop- in early October, calls for construction international tender programme for the ment or planned in Egypt, including at work on the new 2,225m quay line and project, and must hope that it attracts a East Port Said, as part of the Suez Canal 700,000 m2 of yard area to be complet- large global terminal operating com- logistics corridor, at Sokhna, and in the ed in two years. The access channel and pany to invest in and manage the facil- Alexandria/El Dekheila area, which, ar- alongside berthing depths will be dredged ity. The length of any operating conces- guably, is the best suited gateway in the 17m, with DPA keen for the new termi- sion has not been officially announced Mediterranean for the Cairo corridor. nal to handle extra-regional transhipment and, while interest is likely to be keen, In 2015, Damietta handled approxi- cargo, rather than just pure gateway cargo. there is a growing feeling among analysts mately 720,000 TEU, a third of which An official statement issued by DPA that companies are less inclined to sink was transhipped. read: “Our feasibility studies confirm the huge amounts of capital into terminals market and economic effectiveness of where transhipment cargo accounts for China Harbour Engineering Company will developing a new terminal and we see the largest proportion of the cargo base. build a second terminal at Damietta Novorossiysk terminal Conference | Networking | Exhibition | Port Tour The Commercial Seaport of Novo- rossiysk (NMTP) Group, Russia’s larg- est port operator, is planning to build a multipurpose terminal at Novorossiysk Ship Repair Yard (NSRZ), in which it now has an 85% stake. Ship repair work ceased at NSRZ in 2015. Back in October 2014, NMTP signed a Letter of Intent (LoI) with Metalloin- Register as a vest, Russia’s leading iron ore producer, 6 - 7 December 2016 to construct a dedicated terminal for delegate or as a handling up to 10 Mtpa of iron ore and Le Méridien Hotel pig iron at the site. & Conference Centre Separately, earlier this year NMTP free visitor signed an LoI with Russia’s Transport Dubai, UAE Ministry to invest in new cargo handling facilities at another Black Sea port, Ta- man (Strait of Kerch). This would en- #TOCMiddleEast able it to be a concessionaire, although the ministry is also seeking other private investors for this 90 Mtpa port project, with US$1B required for the 46 Mtpa capacity phase 1 (2017-20). Taman would Network & do business with the biggest players in the region focus on dry and liquid bulk cargoes. Taken in conjunction with Metalloin- vest operating at NSRZ, a stake in Ta- man would allow NMTP to concentrate Keynote announced: Mohammed Al Muallem, SVP & MD, DP World, UAE Region on grain, general cargo and containers in Novorossiysk. Meanwhile, as reported by World- Cargo News Online on 12 October, state- owned oil giant Transneft wants to sell its 35.5% stake in NMTP, and it is ru- moured that DP World could purchase it within the scope of its agreement signed at the beginning of this year with the Russian Direct Investment Fund (World- DP World – UAE Region Islamic Republic of Iran Gulftainer Mondelez International Cargo News, January 2016, p8). Mohammed Al Muallem Shipping Lines Iain Rawlinson Anil Nair DP World certainly wants to increase SVP & MD Dr. Mohammad Saeedi Group Commercial Director Regional Quality Head its influence in the Black Sea region, Chairman & MD building on its existing base in Constant- za. It has now signed a Memorandum of Understanding with the government of Ukraine to collaborate on matters of mu- tual interest, including the development of logistics capability in the country.

Sina Port & Marine Services DP World Institute Yilport SOHAR Port & Freezone Dr. Madjid Tehrani Ahmed Abu Safia Christian Blauert Mark Geilenkirchen More for Organization Development Programme Manager CEO CEO Murmansk Advisor Russia’s Norilsk Nickel (NN), the world’s leading nickel and palladium producer, is set to open a second container berth at its Murmansk terminal in Q1 2017, practi- cally doubling its shipping capacity from the port to 1.5 Mtpa. Its existing berth in the Barents Sea port can handle vessels Vinmar Mattex Group Almajdouie Logistics Company DHL with a draught of up to 6m, including its Alessandro Menezes Vasco Amoroso Alaa Mattar Praveen Joseph own ice-class container ships. Associate Director, Director, Group Supply Chain Chief Operations Officer VP Operations NN is about to shut its nickel smelt- Transportation Sourcing er in Norilsk for good, so all converter matte will be transported from Siberia to its processing facilities on the Kola Penin- sula (Murmansk region), and it therefore needs more capacity in Murmansk. The new berth will be 310m long and able to simultaneously accommo- Headline Sponsor Conference Terminal Operator Sponsors Conferences Supporting Global Media date three vessels with a draught of up Sponsor Partner Partner to 11.2m. The US$24M project (includ- ing dredging works) began in October last year. NN completed construction of a new climate-proof warehouse for finished products in Murmansk last year. The US$2.5M facility occupies 5,000 m2 and has a capacity of 8,000t, approximately More info & to register www.tocevents-me.com the size of a shipload lot.

October 2016 15 PORT NEWS

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16 October 2016 INTERMODAL NEWS

tant European destination of Chinese cargo. Thanks to this shuttle, we are now China-Netherlands rail link also adding a fast connection by land. We The first direct rail shuttle between Chi- Kazakh/Chinese border at Dostyk and strongly believe in this concept, partly na and the Netherlands was launched the Belarus/Poland border at Brest. because a large part of Europe can ef- by the Chinese rail operator CDiRS in The Chengdu hub offers railway ficiently be reached via the excellent June, and, in a new statement, the Port connections to Chinese cities such as shortsea connections over Rotterdam.” of Rotterdam Authority (HbR) said Shanghai, Ningbo, Wuhan, Yiwu, Xia- Although rail links between Europe that the Chengdu-Tilburg-Rotterdam- men, Shenzhen, Nanning and Kunming, and Asia and vice versa only account Express is now in full operation. as well as to Vietnam and South Korea. for a small slice of the trade, they are At the moment, said the port, it is a “Cargo from China is often shipped by gaining in popularity, and more than a weekly service, but the goal of CDiRS sea, shortsea, from the Port of Rotter- dozen links are now estimated to be op- and its Dutch partner, RailPortbrabant, dam to the UK, Scandinavia and Por- erational, mainly between inland cities part of the GVT Group, is to run the ser- tugal,” said Roland Verbraak, intermodal in Germany and China. The main users vice five times a week as of late next year. director at GVT Transport and Logistics. are shippers/consignees of automotive The new service, claimed the port, “This is a great development,” said Al- components, high-value machinery/ provides a “door-to-door” service in 15 lard Castelein, CEO of HbR. “By sea, electrical goods and perishable products, days. There are two gauge breaks, at the Rotterdam is already the most impor- including pharmaceuticals. The Chengdu-Tilburg-Rotterdam-Express is now in full operation Gothenburg rail move More RoLa Eurotunnel quitting UK rail? Gothenburg’s rail freight terminal is to been decided who will be the new opera- Eurotunnel Group (GET) has received a Anglia Rail, which in turn sold it to be relocated from the city centre to the tor following the move to the port. in the Tyrol binding and irrevocable offer from Swed- GET. Currently, it operates over 1,000 Arken area, adjacent to the ro-ro terminal Apart from intermodal, the rail freight Starting in November, controversial new ish private investor fund EQT Infrastruc- trainloads a week, moving around 15% inside the port. The transfer should take terminal is used for cross-docking timber restrictions on *7.5t road trucks (“sec- ture II to acquire the whole of its sub- of UK’s rail freight. GBRf has a fleet of place no later than the beginning of 2018, and paper shipments that arrive by rail. toral driving bans”) come into force in sidiary GB Railfreight (GBRf), the third over 130 locomotives and 1,100 wagons, when the goods yard is due to be handed These operations will cease on 31 March the Austrian Tyrol, in a bid to improve largest rail freight operator in the UK. transporting goods for customers in- over to the city for redevelopment. 2017. “We have a number of cross-dock- air quality in this sensitive High Alps The offer price has not been disclosed cluding Drax, Network Rail, EDF En- Arvid Guthed, vice president port de- ing terminals for forest products in the environment. This presents Rail Cargo “by agreement between the parties”. ergy, Aggregate Industries and Tarmac, as velopment at Gothenburg Port Authority, port area,” said Guthed. “We are working Operator - Austria GmbH (RCA), part GET is a public listed company, but well as container traffic over Felixstowe said that around 70% of the rail freight intensively to expand capacity at these of state rail company ÖBB, with the communications director Anne-Laure (mainly for MSC), where it has a 20% handled relates to the port, Volvo or other terminals to ensure the same volumes can opportunity to provide more Rolling Desclèves in Paris said that, as the offer share of rail haulage. activities near the port, so the new location continue to be cross-docked.” Road (RoLa) services. has not yet been accepted, there is no However, the continued uncompeti- will prove very advantageous. On a nor- Already around half of all containers Between Wörgl and Brennersee (for requirement to disclose it. tiveness of through-tunnel rail freight mal weekday, 12 trains and 200 trucks ar- moved over Gothenburg arrive or leave Italy/Austria flows), an extra eight GET acquired GBRf in 2010 for vis-à-vis GET’s freight shuttles, Dover rive at and depart from the terminal. Apart the port by rail, the highest intermodal RoLa trains will be operated daily, £25M (at the then exchange rate of Straits ferry services and unaccompanied from domestic trains, there are also depar- rail share for any port in Europe. Guthed bringing the number of daily trains £1/€1.17). Since then, turnover has North Sea-continental rail services over tures for various destinations in Europe. is confident that this share can be in- operated Mondays through Fridays to doubled, with around £125M forecast Rotterdam and Zeebrugge, means that Guthed continued: “The intermodal creased further. “With the intermodal 38 (up 30%). In addition, four RoLa for this year, and profitability has risen. the hoped-for synergies between GET, terminal at the port will have the same terminal located in the heart of the port, trains will operate daily (Mon-Fri) all The Internal RoR for 2010 to 2016 is Europorte and GBRf never materialised. capacity as the current terminal. Reloca- new opportunities will be opened up to the way between Wörgl and Trento in just above 28%. EQT has stated that the acquisition is an tion will also mean that heavy road traffic transport from road to rail, with substan- the Southern Tyrol in Italy, taking 770 GET’s French rail freight activities, integral part of EQT Infrastructure II’s will be directed away from the city cen- tial environmental gains as a result.” accompanied trucks off the road. There managed by Europorte, are not included strategy to create a leading independent tre to the large roads leading to and from In particular, locating the facility next will also be 29 RoLa trains on Saturdays in the offer received. “Europorte France pan-European rail freight operator. the port. Generally, a higher proportion to the ro-ro terminal increases the oppor- and 21 on Sundays. will remain focused on its own devel- EQT’s other transport assets include of transport will take place by rail instead tunity for trailers to be transferred to rail In terms of annual volume, the extra opment to deliver improved customer a majority stake in Swedish rail freight of road.” for the inland leg. The existing terminal trains represent additional capacity of service, with the goal of becoming the operator Hector Rail AB, acquired two The intermodal terminal at the Port of already transfers around 70,000 trailers/ over 40,000 HGV spaces, bringing to- foremost private rail freight operator in years ago from Norway’s Höegh family. Gothenburg will be coordinated with the year, and the potential is much greater tal annual capacity through the Tyrol to France,” stated GET. Earlier this year, it acquired DCLI, one closure of the present terminal, which is inside the port, since it cuts out a short 217,000 HGV spaces – all at a lower en- GBRf was founded in 1999 by CEO of the biggest chassis providers to ship- operated by Green Cargo. It has not yet road leg. vironmental impact. John Smith, and subsequently sold to ping lines in North America.

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October 2016 17 INTERMODAL NEWS PSA goes inland in China Kögel multimodal steel trailer PSA International has invested du, Zhengzhou, Wuhan, Xi’an, partners, leveraging our comple- Kögel has introduced its lat- in a Sino-Foreign joint venture, Dalian, Qingdao, Ningbo and mentary strengths to make the est multimodal trailer for steel with a mandate from the Chinese Tianjin,” PSA said in a statement. collaboration a success.” shipments, designated Kögel government to develop and op- The deal is the PSA Group’s “China’s railway container sec- Cargo Coil Rail. This has a Flex- erate 18 rail container terminals. first foray into China’s intermodal tor only carries about 2% to 3% iUse body with a large adjust- PSA has taken a stake in China rail facilities, and extends its net- of the country’s seaport container ment range, so can be used for United International Rail Con- work in China beyond its 11 volumes,” noted PSA. The com- various types of steel coils and tainers Co. Limited (CUIRC), coastal container terminals in Da- pany believes that will change as split strips. Coils and split strips through the acquisition of Hong lian, Fuzhou, Guangzhou, Tian- further growth of China’s railway with a diameter from 900mm Kong-based Luck Glory Inter- jin, Dongguan, Lianyungang and container sector is supported by to 2,100mm and a maximum national Limited, which owns a Guangxi Beibuwan (Qinzhou). China’s ongoing initiatives such distributed load of 30t can be 15.33% stake in CUIRC. “The Mr Tan Chong Meng, group as the One Belt, One Road and transported in the 7,200mm long investment makes PSA the only CEO, said, “The CUIRC project Western Region Development standard coil trough. This allows global terminal operator with a is a game changer for PSA and Program, together with progres- a total rail weight of up to 45t, shareholding in CUIRC current- fits into our overall strategy for sive railway reforms. subject to special approval. The ly,” PSA pointed out. China. With our current presence Established in 2007, CUIRC is floor load-bearing capacity of “The inland railway container in major China gateway ports, part of China Railway Corpora- the coil trough covers is designed terminals are strategically located PSA is well-positioned to develop tion. Besides PSA, other joint ven- to withstand FLT axle loads of up Kögel is further extending its piggyback trailer range at regional economic centres synergies with CUIRC to grow ture partners include China Rail- to 5,460 kg. across the country to form the core integrated sea-rail intermodal way Container Transport Corp. The trailer comes with double equipment for unaccompanied Various pieces of equipment of China’s intermodal transporta- operations across the world’s sec- Ltd, NWS Holdings Limited, rail codification, as do all Kögel transport by ferry. This includes a are optionally available, includ- tion network. There are currently ond largest economy. I am confi- China International Marine Con- curtainsiders without drop sides. diagonal reinforcement between ing the Kögel Coilfix load- 10 terminals in operation – in dent that we will be able to forge tainers (Group) Ltd, and Deutsche P385 clearance for a maximum the side member and external securing system, consisting of a Kunming, Chongqing, Cheng- strategic relationships with our Bahn Mobility Logistics AG. internal height of 2,550mm and frame, a 1mm closed sliding plate, tension beam, four square pipe P400 clearance with a maximum a 10mm fifth-wheel plate, two insertable stakes with heavy-duty internal height of 2,700mm are suction valves and four pairs of hooks and receptacles for spacer available, depending on the set heavy-duty lashing rings with tubes, two spacer tubes as well Mexico considers trailer ban body height. The trailer can thus 12,000 kg of test force. One pair as three slings and lashing straps There is increasing pressure in ers). It is widely reported that the killed in a single accident involv- be shipped on many continental of the ro-ro lashing rings is po- for diagonal tensioning. The flat Mexico for the government and maximum weight limit is regular- ing a double trailer truck and a rail lines. sitioned further to the left and contact of the tension beam and regulatory agencies to do some- ly broken and enforcement is lax. bus. The average age of a truck is Kögel Cargo Coil Rail is also right, on the front section of the the stakes are designed to prevent thing about the appalling road The National Action Party has now over 18 years, and safety and available with heavy-duty ro-ro frame in the area of the king pin. damage to coils and split strips. safety record of its trucking in- identified that an average of 116 licensing standards are very low. dustry. Mexico has a maximum deaths per month so far this year There are now five separate allowable truck weight of 65t and have been caused by accidents in- legislative proposals before the permits trucks to pull double trail- volving double trailer trucks. On Mexican Congress to ban or GE to invest in Nigeria rail networks ers (carrying two 40ft contain- 30 September, 13 people were restrict the use of double trail- Boston (US)-based General grading several of its rail lines as gerian rail system, the past two ers. Proposals range from an Electric is close to signing a con- it seeks a network that can take years have seen solid progress, This accident in 2015 involving a double trailer truck killed 11 people outright ban to reduced weight cession agreement with the Ni- both freight and passenger traf- and this has been matched by ris- and length limits that would ef- gerian government that would fic off the congested highways. ing passenger and freight levels, fectively reduce the number of entail the industrial conglom- The government has already albeit from low bases. double trailer units allowed on erate investing up to US$2B in concluded massive construction Currently, a new standard the roads. Nigeria’s rail system. The move contracts, believed to be worth in gauge rail line is being built be- Banning the double trailers would involve GE buying new excess of US$5B, with Chinese tween Lagos and Kaduna, while would almost halve the capacity rolling stock, and likely taking groups, including China Civil the Lagos-Calabar line is sched- of the trucking industry over- management control of some of Engineering Construction Corp, uled to open imminently. night. The trucking sector is al- the nation’s rail lines, including to both modernise existing tracks According to GE, its potential ready lacking capacity, so this is the Port Harcourt-Maiduguri and lay new ones. concession agreement is in the a major concern to the transport Line. Following 50 years of practi- “final stages of the formal pro- and industrial sectors. Nigeria is in the midst of up- cally no investment in the Ni- curement process”.

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October 2016 19 SHIPPING NEWS

20 October 2016 INTERMODAL NEWS VertiModal stacks semi-trailers Tazara chief seeks private funds After a three-year €0.5M project The managing director of the Tan- passenger and freight business. initiatives, engaged in closer con- funded by the federal Ministry zania-Zambia Railway Authority Ching’andu said that these in- sultation with key clients, and of Economic Affairs, DFL Duis- (Tazara), Bruno Ching’andu, has vestments would enable Tazara forged strategic alliances with the port Facility Logistics GmbH called on the private sector to sup- to lift its carryings to 0.6 Mtpa, Tanzania Ports Authority (Dar es and SGKV Studiengesellschaft port its massive capital needs. The which he viewed as a break even Salaam) and several logistics com- für den KombiniertenVerkehr executive said that the railroad figure, and then to 2 Mtpa, a level panies. Traffic has been attracted (Germany’s renowned combined needed US$250M in the short that would generate good profits. from the highways, and it appears transport study group) have term, and more than US$1.2B He stressed that considerable as if several customers have com- come up with a simple way of in the long term, to modernise progress had been made, particu- mitted to moving more of their saving space in intermodal ter- its track, acquire new equipment, larly over the past six months, as freight by rail next year. minals, by stacking semi-trailers. including signalling, and the cor- Tazara had revamped its pric- Tazara carried <100,000t of car- For some time in Germany, rectly designed rolling stock to ing policy, continued to reform go in FY 2014/15, the latest period combined transport of semi- efficiently handle its changing and improve its customer service for which statistics were available. trailers (Scandinavia, Italy, Poland axes, for example) has been on the rise. Space availability in the terminals has become a serious constraint on operations as extra property for staging trailers is in short supply at inland ports and terminals, which tend to be lo- cated in built-up areas. Measured over a whole ter- VertiModal adds to handling costs, but frees up much-needed terminal space minal, the footprint required to stage each 13.6m long trailer is A road truck or terminal trac- Again measured over a whole the equivalent of nine 20ft con- tor is driven through the frame, terminal, three-high stacking is tainers. To underscore the scale of the landing legs are lowered, equivalent to 6.8 TEU of con- the problem, according to SGKV, and the trailer is unhitched. tainers. in 2005 just 150,000 trailers were The frames are 3.4m wide and So far, three prototypes have dispatched to or from Germany 4.285m high, to ensure plenty of been built using high-grade using rail/road combined trans- clearance for the driver. Loaded S 235 and S 355 construction port, but, by last year, the figure (and empty) frames are lifted and steels. Tests in Duisport are con- had increased to 832,000 units. stacked using the terminal’s reach tinuing. Duisport Board member Tests on the new “VertiModal” stackers or cranes. The frames Prof. Thomas Schlipköther said indicate that it will provide a have a tare weight of 5,400 kg the port believes VertiModal has cost-effective and flexible sys- and the allowable gross trailer great potential, and it is working tem to mitigate the problem. weight is 38,000 kg, which cor- with DFL and SGKV to optimise VertiModal consists of a simple responds to the allowable 44t all- the frame, which it wants to see 9.145m-long steel frame with up weight for the pre and post- in operation in all the port’s rail cross supports for the trailer road legs of a combined transport combi-terminals. It is not clear wheels and landing legs, and ISO move. whether the extra handling costs corner castings incorporated into The maximum stacking height have been fully evaluated at this the top rails at 20ft centres. for loaded frames is three-high. juncture. Bimodal for South Africa Boston (Mass), US-based Rail- gauge) and trailer bogie interface “RailRunner technology is a Runner NA, Inc. has reported pieces, could be manufactured lo- perfect match for the challenges that in September its South Africa cally, as Transnet Engineering has and opportunities Transnet faces unit, RailRunner SA (RRSA), pre-qualified for the engineering in South Africa,” said Charles Fos- signed a 20-year agreement with contract. kett, CEO of RailRunner. “This Transnet Ltd to deploy bimodal RRSA values the contract at will enable Transnet to offer a trailer services on the Cape Cor- US$400M in service revenues complete end-to-end transport ridor and, in future, other parts of and equipment sales by licensed solution for its customers, while Transnet’s 20,000 km rail system. third parties. The first reported reducing costs, harmful emissions RailRunner technology allows use of RailRunner technology and highway traffic.” intermodal trains to be assembled will be on the 1,400 km Western Another South African sub- directly from the container-carry- Cape-Gauteng line, targeted for sidiary of RailRunner NA, called ing RailRunner highway chassis, launch in 2018. RNS, will manage network op- using compact specialized bogies. RailRunner NA said that erations, in another example of RRSA is understood to be RRSA is forming a joint venture Transnet using private sector a joint venture of Rail Runner with Transnet to implement the companies to provide services. NA, a local shareholder group new technology, providing a door- However, the parastatal has sug- led by entrepreneur Mike Daniel to-door transport system spanning gested that it may take a stake in and a BEE led by Thabiso Buku. road and rail. It is not clear who the venture in the future. Much of the equipment, includ- will operate the trailers, or wheth- ing the crucial bogies (adapted er Transnet will make its pitch to from standard to narrower Cape forwarders or directly to shippers.

RailRunner unit in testing in the US with domestic 53ft containers/trailers

Medlink Safe launched The number of containers con- trained personnel are involved in taining hazardous goods shipped handling, allocating yard space and by barge on the Rhône-Saône planning barge loading, accord- system is very low, which seems ing to the nature of the cargoes. counterintuitive, as, statistically, The main parties concerned waterways are a safer mode than are the Harbour Master’s office road transport. at Marseille-Fos, Compagnie Na- Medlink Ports, the grouping of tionale du Rhône, Voies Naviga- Rhône-Saône port operators, has bles de France, the Port de Lyon launched a new initiative, dubbed and Lyon-Terminal. The contain- Medlink Safe. A first call is to en- er barge operators Logirhône and sure that chemicals shippers have Greenmodal are also involved. confidence in the supply chain To encourage Hazchem traffic, when they switch from all-road the Port of Lyon is offering one to road-barge transport. night’s free storage for exports. In turn, this means that the ports The aim is to boost the inland wa- must have accurate information terway share of hazardous cargo about the goods being shipped, shipments moved over Marseille- so they can ensure that specially Fos from just 4% today to 20%.

October 2016 21 SHIPPING NEWS More mega ships for PIL Neptune starts intra-Middle East link Singapore-based Pacific International of services, which largely focus on Asia’s Ro-ro carrier Neptune Lines has started Lines (PIL) has placed orders for four trades with emerging markets in Latin a new Middle East service linking ports more 11,800 TEU ships from Jiangsu America, Africa and the Middle East/ located throughout the Gulf. The opera- New Yangzijiang in China. The new con- South Asia, are all showing increasing rates tion, which is centred on Jebel Ali and tract raises PIL’s order book for this size of of containerisation. In addition, there are Khalifa (Abu Dhabi) carries mainly ve- vessel at the yard to 16 units. Deliveries of core ports in all of the regions that are hicles and some out-of-gauge project the new tonnage, which will be the larg- able to accommodate vessels of this size. cargo, and is designed to offer shippers est in the carrier’s armada, are scheduled Increasingly, PIL is working in joint and consignees an efficient feeder type to commence in 2018. services, having over the past few years service for these cargoes. The new ships will be super post- entered ship and slot sharing agreements “We are creating a sea bridge dedi- Panamax in design, featuring a length of on various routes, including to/from Asia cated to the automotive trade, servicing 314.5m and beam of 48.2m. When fully and South Africa, West Africa, east coast of the Emirati ports as well as the ports of laden, they will need channel/alongside South America and the Middle East. These Oman, Qatar, Saudi Arabia, Kuwait, Iraq Neptune Lines has started a weekly service for the Middle East automotive market berthing depths of at least 13m. They will deals make the deployment of bigger and Iran,” said Melina Travlos, Neptune’s be powered by Wärtsilä-designed 8X92 ships both more practical and economic. president and CEO. (Qatar), Khalifa Bin Salman (Bahrain) Neptune sees considerable long-term diesel engines. Currently, PIL has a fleet of about 140 A weekly schedule connects Jebel Ali, Shahid Rajaee (Iran) and Sohar (Oman), growth opportunities in Iran and Iraq, as PIL has not disclosed where the new ships totalling 362,000 TEU. Its order book Khalifa, Shuwaikh (Kuwait), Umm Qasr but with other ports included on an in- they recover from their respective politi- vessels will be deployed, but its network amounts to approximately 190,000 TEU. (Iraq), Dammam (Saudi Arabia), Hamad ducement basis. cal turmoil, reconstruct and industrialise. Oman/Iran Containers connect the world. new link... We connect you with our container locations. The governments of Iran and Oman continue to foster closer relationships with one another, and see trade as a sector with strong growth potential. Already this year, several new shipping links have been established, with the latest comprising a fast ferry service between Khasab and the Iranian ports of Qeshm Island and Shahid Bahonar (old port area of Bandar Abbas) Dirk ([email protected]) The new link, which is operated by ([email protected]) Muscat-based National Ferries Company Christiane (NFC), offers the link in just two hours LOOKING FORWARD TO MEETING YOU AT Tim ([email protected]) using high-speed catamarans, sailing four times a week. Depending on demand, a freight-only ship could be deployed on INTERMODAL 2016 IN ROTTERDAM the route in the future. Mojtaba Khosrotaj, head of Iran’s Trade Promotion Organisation, said: “Iran sees Oman as a gateway to access other region- al countries, while Oman sees our Hor- mozgan province as an entrance to Pa- kistan, Afghanistan and the Central Asian Republics. A major part of the coopera- Container trading. tion between the two countries, there- New and used containers. fore, is to lay the ground for the develop- ment of a north-south transit corridor.” From a single source The latest move follows initiatives tak- en earlier this year by the Oman Shipping Container Container New Container including service. Company and the Port of Salalah. depot repairs container rental In the case of the latter, a joint agree- ment with Iran’s state-controlled Port and Maritime Authority of Iran aims to encourage trade between Oman’s largest box port and the Iranian ports of Shahid UNITAINER Trading GmbH Hamburg / Germany // + 49 40 30 08 98 - 0 www.unitainer.de Rajaee and Chabahar. In addition, the Omani port, which is 30% owned by APM Terminals, will offer both technical advice and assistance with training pro- grammes at the two Iranian ports. Our Solutions …as Maersk Line returns Maersk Line has announced that, after a for your Success. five-year absence, it is to serve Iran again, and will fully integrate the country into its global liner shipping network. The car- rier’s decision follows the ending of most The international logistics com pany HOYER is a world - economic sanctions between the west and Iran and the return of most of Mae- wide market leader in moving liquids by road, rail rsk’s competitors, including MSC, CMA CGM and Evergreen Line, to the market. and sea. Wherever they may go, HOYER will get “With a long and proud history in Iran that dates back 60 years, we are very chemicals, foodstuffs, gas and mineral oil to their pleased to be back,” said Christian Juul- Nyholm, the carrier’s regional managing destinations safely and efficiently in tank containers, director, based in the UAE. “It means that our customers can once again fully utilise road tankers, flexi tanks and IBCs. HOYER also has our global network, large fleet of vessels, equipment and weekly departures.” numerous logistics facilities with depots, cleaning He emphasised the huge potential that Iran has as a trading nation, given its stations and workshops. More than 115 represen- 80M-plus population, its gateway role for the Central Asian Republics and its fast tative offices throughout the world ensure a reliable growing economy. Indeed, Maersk thinks the country’s GDP could grow by 5.8% and smooth transport process. and 6.7% over the next two years, respec- tively, and provide a substantial boost to global trade. Marcus Connolly, Maersk’s head of sales at the UAE Cluster, explained: “Af- ter a period of relative isolation, access to this new market will present significant growth opportunities for Maersk Line in www.hoyer-group.com a market that today represents approxi- mately 700,000 FEU but is expected to grow significantly in the coming years.”

22 October 2016 CONTAINER INDUSTRY NEWS Flooring gets a SolidStart Cool airfreight deal US-Based Louisiana-Pacific Corporation 5,460kg ISO 1496/1 and IICL 7,260kg Cargolux Airlines and va-Q-tec have of va-Q-tec Ltd, said: “The partnership (LP), the world’s largest manufacturer of Marine Container Load tests. signed a global rental agreement for the with Cargolux gives our customers what strand-based structural building materials, As an engineered product, LSL can be use of va-Q-tec’s advanced “passive con- they have been asking for: the possibil- is making progress in the container floor- produced to different durability levels by tainers” for pharmaceutical transport. ity to book flight and the va-Q-tainer ing sector with its “LP SolidStart” Lami- varying the amount of material in its con- “We are very happy to add va-Q-tec Serviced Rental in one go to over 90 nated Strand Lumber (LSL) container struction, and LP SolidStart is available in to our service offerings, especially on Cargolux destinations within a one-way flooring product. four different ‘E’ grades. our Puerto Rico cool chain flights,” said rental service. We are excited to partner LSL flooring is not the same as an OSB The material has PEFC and SFI certi- Stavros Evangelakakis, manager glob- with Cargolux and jointly grow our (oriented strand board) product. OSB fication for sustainability and traceability, al product management at Cargolux. business together.” panels are laminated from small wooden and LP uses a zinc borate fungal protection Va-Q-tec manufactures thermal con- Passive refrigeration is also being pro- pieces laid in two directions, whereas system that meets the AS/NZS standard tainers (va-Q-tainers) that use passive re- moted for shipping container logistics, LSL uses much longer strands (around to treatment level H2. The first two test frigeration and vacuum insulation panels including by Dutch company BoTemp, 240mm) laminated in one direction only. boxes have now been in service for one Load testing of LP’s SolidStart LSL flooring to maintain temperature without an ex- which has developed PCMs and systems The panels must also be installed in one year without experiencing any problems. ternal power source. The containers use for container applications. Most recently, direction only and are much stronger LP is now looking for more custom- move forward with quality and consisten- Phase Change Materials (PCMs) that Thermo King launched its own passive than an OSB design. ers to run commercial trials. As part of cy. At the moment, said Huber, products absorb and store thermal energy during refrigeration system for a reefer con- Al Huber, international sales manager that process it went through a “Voice of vary far too much, frustrating container a freezing or heating process to main- tainer. Designed in conjunction with for engineered wood products at LP, ex- Customer” (VOC) initiative, whereby it owners when different batches of what tain the required product storage tem- Unit45, the container features a eutectic plained that the company first got involved interviewed 36 industry representatives. is supposedly the same product give very perature during transport. Cargolux is charging system, instead of blown air, to with container flooring when it was ap- Going into this process, said Huber, LP different performance in the field. LP now providing the passive containers to maintain temperature without requiring proached by Scotland’s Smyth Compos- was particularly concerned about the believes it can make a vast improvement shippers directly, through a rental service. an electrical connection for up to two ites to develop an alternative to OSB for product’s visual appearance, as it looks here with an engineered product, where Dominic Hyde, managing director weeks. the core of floor panels that were finished similar to OSB. However it found that the manufacturing process is designed to with a glass-fibre reinforced composite appearance was the lowest rating concern, deliver a uniformly consistent product. top layer. The first products were tested and the biggest issue for the VOC group Furthermore, LP SolidStart will be visibly by Hamburg Süd alongside panels with was performance. LP SolidStart panels are branded, with full information that will birch and bamboo cores in dry container made in a press, which can be designed to identify the design criteria, and full infor- MCI energy consumption applications. The result, said Huber, was any size up to 64ft long. The VOC group mation for traceability of the manufacture The shipping line alliance concept “does pends on the cost of energy. “the best container floor on the plan- identified that the optimum panel length and the source materials. not reward long-term thinking” when Johannsen said more customers, et, but nobody could afford to buy it”. is 10ft, which would mean only four Sustainability is also an important con- it comes to energy consumption and though, are getting the message, and LP then went back to the drawing sheets would be needed for a 20ft box, cern. LP uses rejuvenating wood grown reefer purchasing, says Maersk Container the “large number of existing and new board and came up with LP SolidStart, an and seven for a 40ft model. Container from coppiced species, harvested as early Industry (MCI) chief commercial officer customers who have voted in favour of LSL product that can be used on its own, manufacturers identified the possibility to as 10-15 years of age from trees that grow Soren Johannsen. this principle with their wallets during without bamboo or composite veneers use bigger sheets to save material in the back without needing to be replanted. “Slot sharing agreements measure 2016 means that our market shares are for the top and bottom surfaces. Work- floor joist structure. LP’s operations are also sustainability reefers in the same way as dry contain- as strong as ever”. As noted on the front ing with Hamburg Süd, LP developed LP also believes it can help the con- managed, with waste product being used ers. For some container lines, this results page of this edition of WorldCargo News, and tested LP SolidStart to meet both the tainer flooring industry take a significant to generate energy to run its plants. in ordering the cheapest possible reefer MCI has this month announced a new equipment, even though it consumes order for 4,000 reefers from Seatrade, accessed from anywhere and configured large amounts of energy. This is based and MCI will also supply a significant to meet the client’s needs. purely on the logic that their reefers will number of reefers to Maersk Line this SpecOps tracks into Europe “The Intelceptor uses friendly and in- spend 50% of the time or more on other year as part of its procurement of 14,600 USA-based SpecOps Group is launching SpecOps Group started in the secu- tuitive software that runs on every mod- alliance partner vessels, where no credit new reefers in 2016. its Intelceptor tracking device in Europe. rity and surveillance industries, and now ern smartphone and can be customis- is given for energy-efficient reefers,” he At a time when orders for new reefers Marketed as “the smallest GPS tracking hopes to capture the attention of the able to meet the needs of every owner. said. are at a low (see page 33), MCI said its device in the world”, the Intelceptor transport market, including the contain- An unlimited number of objects can be MCI calculates that the price pre- Qingdao production lines for MCI Box measures just 4cm by 4cm. The device er sector. It is open to selling hardware tracked with it, and many users can trace mium for its energy-efficient reefer is and Star Cool machines are “now run- communicates via GSM and can delimit to container manufacturers and tracking at the same time. The tracking history US$600, which should be compared to ning on two shifts and we are ramping a geo-fenced zone, which, if breached, service providers, and selling to shippers is kept safely and can be consulted up energy savings of US$12,000 over 12 up production for the coming season in will send instant alert to a smartphone, directly, where it offers a cloud-based to one year later,” the company said in years in cost-savings from lower energy South America at our MCI San Antonio tablet or PC. customisable tracking service that can be a statement. consumption, though, of course, this de- factory in Chile.”

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October 2016 23 CONTAINER INDUSTRY Calling time on top-down thinking? tandard dry van contain- tion. However, it should always ers have long been used The CTU Packing Code expressly be ensured that the walls of the Sfor the shipment of loose rules out vertical loading of container are not overstressed by materials. With free-flowing the filling operation. It is not ac- bulk such as grain, containers containers, yet the practice ceptable to turn a CTU by 90 are commonly tilted to anything deg to an upright position for between 45 deg and 70 deg and remains widespread filling, unless the CTU is espe- loaded with a chute or funnel expert calls the “cheese grater” across the door end, and to close cially approved for this method that is gradually raised as the effect. A container is subjected the left-hand door before load- of handling.” pile height inside the container to huge forces by a 1-2t grab ing. This reduces the risk of The CTU code was drafted increases, softening and control- load of loose materials being spillage when the container is by Bill Brassington of ETS Con- ling the impact. dropped vertically from a height lowered and also protects work- sulting. “Standing a container on However, with non free-flow- of 7m. Gravity constant is 9.8m/ ers who have to open the doors its front wall and filling the con- ing loose materials such as scrap sec2, so the forces rise exponen- at the destination. tainer is forbidden by the CTU Typical scrap loading operation with a Mi-Tilt machine from A-Ward. metal, construction waste, rocks, tially if the container is a 40ft Code as it overstresses the front Mi-Tilts are in use all over the world stones and other loose materials, and the drop height is thus 13m. Ban on 90 deg wall, which is also forbidden,” containers have both doors open Good practice when load- The risks posed by overloaded he told WorldCargo News, add- overstressing the front wall and Cargo News, July 2016, p29), the and are often tipped to 90 deg to ing agri-bulks, white minerals, and badly loaded containers led ing “there are no containers that the roof, that angle cannot be spreader is fitted with lifting pins provide the maximum aperture resins etc is informed by Ship- the IMO, ILO and UN-ECE I am aware of that have been too great. Since the CTU Code that are inserted in the top cor- for the grab crane for fast load- ping Australia Ltd’s 2012 guid- to ban vertical tipping in their tested and approved for this type does not specify a value, I can- ner castings of the container at ing. This exposes containers to ance notes on shipments of bulk joint 2014 Code of Practice of filling operation. They would not provide one myself, as there the door end. As the spreader is impact damage and load forces grain in containers. The guide for Packing Cargo Units (CTU need a 1.8P strength, rather than are too many variables that need raised, the empty container is for which they are not designed, strongly recommends horizon- Code). Paragraph 5.3.5 of annex the 0.4P that standard general- to be considered. Packers would lifted at the top of the door end undermining their structural tal loading, but recognises tilt 7 states: “Depending on the in- purpose containers are tested to. need to demonstrate that the and dragged along the bottom integrity and creating a risk for loading to 45 deg and vertical ternal friction and the angle of “We tried to get a value in- forces caused during the filling corner castings at the end wall the whole supply chain. loading, provided – in the latter repose of the solid bulk cargo, cluded in the text to say how operation did not result in over- end into the vertical position. Sharp heavy objects can case – that a bulkhead is placed the CTU may be inclined, to a much it could be inclined, but stressing the walls and roof.” To fill the container, the straddle punch holes in the container, over the end wall. It is also rec- certain degree, to facilitate the had to settle for the wording Banning 90 deg tipping does carrier clearly has to move off, leading to what one container ommended to place a bulkhead loading or unloading opera- ‘may be inclined’. To prevent not necessarily make it harder so the 20ft is free-standing. to use grab cranes to load loose This could be attractive for materials, as a skilled operator of recyclers who want to load ver- a hydraulic jib crane can work tically since, as a straddle carrier, with an angle of around 70 deg, the SC-Tilter can also be used despite the smaller opening for to load and unload trucks that the grab. However, the volume/ call to collect or deliver contain- tonnage in the grab would have ers, although Brassington also to be smaller, and there would raises concerns about the loads be more of a ‘sliding’ effect on and the direction of the stresses the container floor. this lifting method places on the container. Overloading A related point is that vertical Pro-active loading makes it easier to over- Insurers want the CTU Code to load containers, because grabs be mandatory. This is unlikely to can be ‘hammered’ into the load happen, but shippers should not by the crane to compact it and be complacent about its ‘volun- create more filling space. Brass- tary’ status. ington cites data from a UK Meanwhile, it is up to con- port, showing that in 2013 only tainer owners and operators 0.01% of 20ft containers shipped to be more pro-active. Hapag- and 0.13% of 40ft containers in Lloyd is known for its safety- a sample of 110,000 containers driven approach, and a spokes- weighed >40t, but in 2014 – a man for the line told WorldCargo year when the UK exported News: “We do not support verti- a large quantity of scrap – the cal loading of containers. Most figures increased to 1.94% and of the known procedures harm 10.35%, respectively. the container and are unsafe, A quick sample of 9,000 con- representing a risk for anyone tainers taken by ETS Consulting involved in the process of load- between May and August this ing and in the following trans- year showed that 0.4% of the port chain. Therefore Hapag- containers weighed >40t and Lloyd reserves the right to carry 1.9% weighed >34t. “Going for- out a case-by-case prior approv- ward, we will have to see if the al review.” VGM or the pressure to mini- APL’s scrap metal guide states mise shipping costs is the greater its clear preference for scrap to driver,” said Brassington. be bundled, pressed or palletised and that “non unitised loose Range of tippers scrap metals is discouraged, as The most common tipping de- this results in container damage vices for loading and unloading when they are poured out of the containers are chassis trailers container. If shippers insist, they equipped with one or two lift- must agree in writing to com- ing rams and locking under- pensate APL for all costs related frames or end frames. Bespoke to the scrap metal damage”. v tipping systems include New Zealand-based A-Ward’s Mi- Loading scrap with a Vako tipping Tilt tippers for 20ft and 40ft trailer. Dutch-based Vako can provide containers (WorldCargo News, 95 deg tippers for 20fts and can also July 2010, p32 and May 2012, provide a horizontal sliding device. p68), which are sold all over Once the filled container has been lowered back to the chassis, it can be the world. Mi-Tilt can also be slid back and forth in order to prevent provided as a 20ft unloader. This axle load problems (photo: transpor- is used, for example, to tilt the tonline.nl) container 70 deg and unload loose bulk via a chute and grate into below-ground storage silos or piles. As a special option, the unloader can tip the 20ft to 90 deg. Both loaders and unloaders have a 30t SWL. Straddle jobs Australia-based Isoloader pro- vides straddle carriers, RTGs and static gantry frames that can tilt containers 50 deg for load- ing or unloading, while Ireland- based Combilift has introduced an ingenious 90 deg 20ft tipper (70 deg for unloading) based on its Combi-SC straddle carrier. As previously reported (World-

24 October 2016 CONTAINER INDUSTRY

Development of world pallet-wide and swap body container fleets (TEU) Equipped for the Euro trades End-year Cellular Non-cellular Intermodal Total Global Fleet pallet-wide pallet-wide swap body* pallet-wide 2010 147,000 268,500 286,000 701,500 n the pallet-wide contain- 2011 153,500 279,500 286,000 719,000 31,070,000 er sector, the CMA CGM Pallet-wide containers still occupy 2012 156,000 279,000 292,500 727,500 32,740,000 IGroup recently placed orders a small niche in the intra-European 2013 154,500 278,000 298,000 730,500 34,180,000 for its shortsea service provid- 2014 158,500 286,000 302,500 747,000 36,250,000 ers OPDR and MacAndrews & freight market, but their use 2015 157,000 284,500 305,000 746,500 37,620,000 Company, while several logistics *Excluding swap tank. Major users of non-cellular pallet-wide containers include DFDS Logistics, Ferrymas- companies, including Robert appears to have picked up this year ters, MacAndrews, OPDR, Samskip, and Unifeeder. Source: Drewry Maritime Research Kukla Internationale Spedition, have also been active. perb conditions for transporting WorldCargo News, May 2016, p32 year. Principally, this has been re- into conventional cell guides. of car manufacturers and 3PLs.” Despite this, the global pool voluminous goods”, by virtue of for details). lated to the logistics company’s One trial that he did refer to of pallet-wide containers has the precise and unitary arrange- Its fleet of 45ft units, includ- strong presence in the trades R-Rak goes wide was with Italian manufacturer grown only slowly over the past ment of the euro-pallets, and ing reefers, numbers well over linking Greece and the eastern Another relevant development is Fiat, where Trans-Rak equip- six years. In the case of cellular avoiding open spaces that could 9,500 units, approximately 20% Mediterranean with northern the pallet-wide version of the R- ment is being used to load six pallet-wide containers, for in- result in cargo moving. of which are leased. Samskip has Europe. Rak vehicle racking system from Fiat 500 vehicles into a 45ft high stance, the sector’s total inven- Both companies also have 45ft 1,200 x 45ft containers on order A company statement said: UK-based Trans-Rak Interna- cube pallet-wide container. tory of more than 157,000 TEU pallet-wide containers in their in China for delivery during 2017. “40ft pallet-wide containers are tional, which, as previously not- “Of course, loading six ve- at the end of 2015 was just 6.8% fleets. These can accommodate According to Samskip, 150 the better choice compared with ed, can be used in ISO and pal- hicles into one container takes higher than it was in 2010. This another three euro-pallets (up units of the new curtain-sided 45ft pallet-wide units in the Le- let-wide containers (WorldCargo more time than loading three on compared with a 31% jump for to 33 units), and they tend to be boxes have been placed in the vant region. Here, cargoes are News, September 2016, p56). the floor,” explained Payne. “But the container fleet as a whole to used in corridors where compe- pool this year, mainly as replace- relatively compact and heavy, “Overall, market reception the financial and environmen- 37.6M TEU (see table). tition with intermodal (rail) and ments for older equipment. Prin- and this means the additional ca- has been positive,” said Wesley tal savings of halving the num- In terms of all pallet-wide sized swap body services is intense. cipally, they are used to carry pa- pacity of 45ft containers cannot Payne, the firm’s marketing and ber of containers required to be equipment, including intermodal OPDR’s move into the Ital- per reels and chemicals moved in be used without exceeding the design engineer. “In Europe, we shipped drastically outweigh this swap bodies, their share of the ian market, for instance, involves octabins and on routes involving weight limits. Their use would have built some small batches cost. Our R-Rak saves a large global fleet of containers has de- extensive use of this equipment, the UK, Ireland, Italy and Poland. mean wasted freight space and of pallet-wide R-Raks, in order amount of time for loading and clined from 2.5% in 2010 to just as does Ferrymasters’ new service Kukla has focused its recent time spent securing cargo.” for logistics service providers unloading compared with the below 2% in 2015. A slight im- to/from Romania. purchasing programme on 40ft Operationally, it gives Kuk- and OEMs to conduct trials. To alternative of actually building a provement is expected this year. But it is not only about the cellular pallet-wide boxes, with la access to many more ship- date, we have active non-disclo- wooden support structure inside Drewry Maritime Research, size of containers used. The 100 units added to the fleet this ping services, as the boxes fit sure agreements with a couple the container.” v which publishes an annual census intra-European trades are ex- on the container market, attrib- tremely diverse, with the types of uted the slow growth in pallet- cargo moved between Scandina- wide equipment to its close link via and the continent, mainland with the European transport Europe and the UK, and Ireland economy. The latter has been and Iberia often very different. lacklustre since the global finan- Beneficial cargo owners active in cial crisis of 2008/09. these various corridors require a range of equipment, and lo-lo Euro focus container ship operators have to Although most pallet-wide con- demonstrate that they can match, tainers are used in intra-Europe- in particular, the proven versatil- an trades, it is important to note ity of ro-ro trailer services. that cellular 40ft pallet-wide boxes also feature in some deep- Mixed fleet sea trades (mainly Asia/Europe). Iceland-based Samskip has been The latter are designed to offer extremely active on the equip- the same cubic capacity as trailers, ment front and continues to be and can accommodate five more one of the most innovative in the euro-pallets than conventionally market when it comes to designs. designed boxes. It puts container Over the past 12 months, the shipping companies in a much carrier has phased into operation better position to compete with more than 150 new ventilated over-the-road truckers and ro-ro 45ft units, 35 x 40ft flat racks, trailership/ferry operators. featuring integrated A-frames The new 4,000 x 40ft contain- that are specially designed for ers being phased in by OPDR carrying slabs of marble, 100 x and MacAndrews are also high 45ft collapsible flat racks and a cube, with the companies claim- new generation of highly durable ing that they “offer customers su- 45ft curtain-sided containers (see Samskip saves weight Samskip is introducing con- Rolled Blanks GmbH, a sub- tainers with lower tare weights. sidiary of Germany’s Muhr und Danny de Koning, Samskip’s Bender KG. As reported previ- technical manager, explained: ously (WorldCargo News, Octo- “We’ve been working with ber 2014, p14), Mubea has de- a steelmaker on tailor-made, veloped a rolling technique that rolled blank panels, and have uses variable roller clearances to been prototyping units where customise the profile of rolled the mid-sections of the side and blank panels, allowing strength front walls, together with part to be increased in critical areas, of the roof, feature thicker pan- while saving weight in others. els than the ends. The design Koning stressed that every saves 160 kg and will bring our kilogram saved is important. tare weight down to 4.1t and “Our experience proves that this will be even lower with even when weight savings can minor further modifications.” be quite small, for every kilo- It is believed the steelmak- gram of cargo gained there is a er involved is Mubea Tailor competitive advantage,” he said.

Using specially rolled steel panels can shave 160 kg off the weight of a 40ft container

October 2016 25 CONTAINER INDUSTRYNEWS

subsequent onset of weaker box Table 1: World dry freight container* output and capacity (TEU) demand. Dry box output in the doldrums Steel pricing is thus still show- Year Output End-year capacity** 2012 2,685,000 5,100,000 he current year has so ing some volatility, due to its sup- Dry freight container builders are 2013 2,560,000 5,150,000 far proven tough for the ply being further constrained at 2014 3,220,000 5,300,000 Tglobal box building in- facing further difficulties this year, some Chinese steel mills, whereas 2015 2,645,000 5,300,000 dustry, as both demand and fin- its ratio to the ex-works standard 2016*** 1,270,000 5,300,000 ished prices have weakened, and with production having declined to box price remains higher than at so brought additional pressure to any time in recent years. *ISO dry freight standard/special, palletwide & domestic. **Twin-shift calcu- lation. ***Output Jan-Sept only. Source: Container manufacturing industry bear on factory lines. a seven-year low and finished Crucially though, the plight Dry freight output is expected prices remaining weak of the dry freight box building to be down globally by at least a sector has been made that much the returns will only add to an sors taking a slightly greater share third for 2016 as a whole, when sunk to its lowest point in more in the price of Corten steel has worse by the underlying poor already growing idle stock, com- overall. However, this marks a compared with the recent annual than a decade. It started 2016 at been altogether more dramatic, state of container demand. This, prising both new and used dry further change on recent years, average, whilst margins have again a minimum of around US$1,350 rising from a low of US$300 as highlighted, deteriorated from freight equipment. when the leasing side had domi- been squeezed by a recent sharp and was little more than per tonne at the beginning of the second half of 2015 onwards, Despite the fact that dry nated more strongly. It initially fluctuation in the cost of mate- US$1,450 by the third quarter. the current year to more than and has since shown no sign of freight production was already lost ground in 2015, when some rials (particularly Corten steel), Few plants have been able to US$450 during May/June. It has any imminent recovery. Indeed, in decline before the end of last lessors cut back sharply on their which was not reflected by much secure a 20ft price greater than since fallen back again to below the latest forecast to come from year, the total for 2015 over- dry freight procurement, and of a change in the manufactur- US$1,500 on any production car- US$400, which is comparable to the World Trade Organisation all still amounted to a relatively many have since opted to limit ers’ delivered ex-works prices. ried out this year, which was well its position early in 2015, prior (WTO) suggests a growth of just healthy 2.65M TEU. It may have investment during the current The benchmark container below the average seen in 2015. to the initial downturn in the 1.7% for international trade in been down on the peak delivery year as well. This has come as a price for a 20ft dry container has The corresponding movement Chinese export economy and 2016, which will be at its lowest (of more than 3M TEU) made direct consequence of the latest level since the recession of 2009. in 2014, but was comparable to downturn in standard container Table 2: World dry freight container output by type (TEU) The problem has, in recent the totals for each of 2012 and demand, which has hit the box weeks, been further compound- 2013 – and so broadly fell into leasing industry with particular Type 2012 2013 2014 2015 2016* ed by the collapse of Hanjin line with the longer-term trend. severity in recent months. ISO dry freight standard** 2,485,000 2,375,000 3,020,000 2,435,000 1,150,000 Shipping, which has preoccupied The outlook for 2016 is sig- Shipping lines, facing a sea of ISO dry freight special*** 140,000 125,000 140,000 140,000 75,000 much of the leasing industry due nificantly more downbeat, with a red ink due to record low freight US domestic**** 60,000 60,000 60,000 70,000 45,000 Dry freight - total 2,685,000 2,560,000 3,220,000 2,645,000 1,270,000 to it putting together a hasty pro- much reduced 1.7M TEU being rates and overcapacity, are hold- gramme of box recovery. This is predicted for the year as a whole. ing back on purchasing this year, *Jan-Sept only. ** ISO standard/high cube. ***Open-top, flatrack, bulk, open-side, pallet-wide. ****53ft (= 2.65 TEU) likely to further cut rental invest- This is being projected from the with numerous lines still opting Source: Container manufacturing industry ment during the final quarter, as dry freight delivery total already to lease, in preference to buying. made through January-Septem- Many are also continuing to limit ber, according to the latest data their replacement of older boxes to be released by the box manu- with newbuilds, even if their fleet facturing industry. It assumes a profile is steadily ageing. slightly reduced rate of output The demand for new boxes has for the final three months of also been impacted by a renewed 2016, compared to that achieved bout of fleet consolidation, during each of the (more buoy- which is affecting both the rental ant) third and second quarters, and line-owned fleets. Two big which is viewed as the most mergers, respectively involving probable scenario. Triton Container/TAL Interna- The nine-month output fig- tional and Florens Group/Dong The future of reefer automation is coming ure comprised 1.27M TEU, and Fang International, were com- featured the usual 90% as stand- pleted during the opening half of ard boxes (1.15M TEU). The ap- 2016 – and have removed anoth- proximate 10% balance (120,000 er two established names from TEU) is made up of various ‘dry the ranks of the top leasing firms. Are you ready? freight specials’, including mari- These transactions followed time open-top/flatrack/open- on from Seaco Global’s ear- side, pallet-wide and North lier purchase of Cronos during American domestic (53ft) con- 2014-15. On the shipping side, tainers. The latter accounted for CMA CGM is in the process of just 3.5% of all dry freight TEU acquiring American President production carried out so far in Lines (APL), whilst Hapag-Lloyd 2016, leaving 6% as other (mari- is taking over United Arab Ship- time special/pallet-wide) types. ping Company (UASC). These These respective shares are largely mergers, when taken together unchanged on past years and have with the disappearance of Han- always made up a small minority jin, will also thin the lines’ top of the overall dry freight total. rank by three. The split for standard box equipment is similarly stable, with Shifting market more than half of all production The merger antics of the past carried out so far in 2016 com- year have, perhaps inevitably, re- prising 40ft high cube. A stable sulted in a more limited purchase third was of 20ft length, leaving by top-ranking names and a pro- the remaining balance of a few portionally larger share than usu- percent as either 40ft (of 8ft 6in al going to smaller firms further height) or 45ft. The world’s dry down the pecking order. freight manufacturing industry Only a handful of major ship- remains centred firmly in China, ping lines have so far committed and is served predominantly by a to any volume dry freight pur- small handful of (five) dominant chasing in 2016, with just two groups, which between them op- taking quantities greater than erate around 30 separate factories 50,000 TEU between January at over 15 port locations. and September. The biggest single delivery (of Cash-strapped around 85,000 TEU) had been Their deliveries made so far made to OOCL, with 50,000 in 2016 have divided relatively TEU going to Maersk Line. A evenly between leasing firms and further three (NYK Line, China’s transport operators (principally Zhonggu Shipping and the con- shipping companies), with les- tainer transport arm of the state-

Many shipping lines are holding back on purchasing containers due to low freight rates and overcapacity, while Hapag-Lloyd’s takeover of UASC may further reduce demand for new boxes

TRACK · MONITOR · MAINTAIN

26 October 2016 NEWSCONTAINER INDUSTRY controlled China Railway Corporation) actual demand and available capacity. had purchased around 30,000 TEU Throughout the five years to the end of each, leaving only five others from the 2015, the world’s dry freight producers top rank to individually buy more than were able to maintain a minimum dai- 10,000 TEU. ly one-shift operation (and often went These 10 companies purchased an ag- higher), although this will not be man- gregate total of 280,000 TEU during the aged in 2016. Instead, plant utilisation is nine-month period, which compared expected to fall to its lowest level since with more than 600,000 TEU delivered 2009, when the vast majority of standard to shipping companies as a whole, and, box factories were closed. thereby, accounted for less than half. The The world’s current capacity base is balance (of around 320,000 TEU) was calculated at 5.3M TEU per year, assum- to go to more than 100 smaller trans- ing maximum (double) shift working, port firms, many of which were buy- which gives an annual single-shift ca- ing containers in the hundreds (rather pability of 2.65M TEU. The 1.7M TEU than thousands) to serve their altogether being forecast for this year will amount smaller fleets. The profile for 2016 contrasts sharply Demand for new boxes is being impacted by with that of 2015, when a more substan- a renewed bout of fleet consolidation. On the tial 75% of all dry freight production shipping line side, for instance, CMA CGM carried out for shipping companies went is in the process of acquiring APL to 20 leading buyers, all of which took delivery of at least 10,000 TEU. Around a dozen acquired 50,000 TEU or more, with four (including Maersk Line, China Railway Corp, Hamburg Süd and MSC) each receiving over 100,000 TEU. Less for lessors The box leasing sector was similarly influenced, as significantly fewer firms have committed to large-scale invest- One worldclass reefer ments in 2016, compared with the pre- vious year. In 2015, over 85% of all dry freight output attributable to leasing firms went to the 10 largest names, with every one of them taking delivery of a Two supply locations minimum of 50,000 TEU. Four of their number – headed by Dong Fang Inter- national and TAL – were each to acquire over 100,000 TEU. So far in 2016, just three companies (Textainer, Beacon and Seaco) have China & Chile come close to matching these totals, as they had received around 150,000 TEU (or greater) apiece during January to September. This gave them an over- all share of around two thirds of leas- ing company production accomplished so far this year. Their combined intake amounted to around 460,000 TEU, compared with 675,000 TEU delivered to the leasing sector overall. Much of the balance (215,000 TEU) has gone to 20 other firms, both large and small, but with no other single buyer taking more than 30,000 TEU so far. Sig- nificantly, the two largest deliveries have been made, respectively, to the newly expanded Triton International Ltd and Florens Container Holdings, which have emerged from the recent mergers. Both were to acquire around 30,000 TEU as dry freight during the nine months from January to September 2016, with much of the total predictably being delivered in more recent months. Both are, ac- cordingly, expected to stay active buyers in the run up to the end of the year. An additional 20,000 TEU had earlier gone to TAL, prior to its absorption into the newly enhanced Triton entity. Managing excess This more restrained purchasing activ- ity had further resulted in a significantly lower rate of monthly output for 2016 compared with 2015 and earlier years. The delivery of almost 1.3M TEU as dry freight through January-September gives an average monthly output rate of almost 150,000 TEU, and this level has been more than sustained throughout much of the past six months. The output figure rose briefly to top 200,000 TEU during June, when there was a brief revival in demand, but was sig- nificantly lower (at 125,000 TEU/month or less) during the opening quarter. Pro- Star Cool and the MCI reefer ese worldclass products are duction dipped to almost zero in Febru- ary when the majority of factories closed box represents the lowest Total available on both sides of the for an extended maintenance break. The outlook for Q4 2016 is for pro- Cost of Ownership in reefer globe, just like your shippers. duction to stay close to 150,000 TEU containers today. per month, possibly amounting to 400,000-450,000 TEU. By compari- son, the monthly average had exceeded 250,000 TEU throughout H1 2015, and went above 300,000 TEU during the busiest periods. However, it declined sharply from August onwards, to an av- erage closer to 100,000 TEU/month, as demand weakened. The factories’ collective monthly out- put has thus been declining over the past Learn more at www.mcicontainers.com two years, which has only heightened the mismatch already existing between

October 2016 27 CONTAINER INDUSTRY

Table 3: World dry freight container* output by manufacturing group (TEU) ing 2016. Unless the situation is factories presently offers a total and non-controlling interest. to improve markedly into 2017 twin-shift capacity equivalent to This was attributed to the sharp Company 2012 2013 2014 2015 2016** CIMC Group 1,225,000 1,145,000 1,440,000 1,200,000 500,000 (and there is little evidence as yet 2.4M TEU per year, which has fall in the average selling price Singamas Holdings 555,000 500,000 610,000 470,000 320,000 to say that it will), the dry freight been reduced slightly from its applicable to standard box equip- CXIC Group 330,000 405,000 525,000 365,000 165,000 industry may yet be forced to level of previous years. ment, with the 20ft index report- Dong Fang International 180,000 240,000 310,000 295,000 140,000 contemplate further factory-line However, the company’s ag- ed at just US$1,415 H1 2016. It MCI-Dongguan 225,000 145,000 155,000 160,000 50,000 (or even whole plant) closures. gregate production amounted to compared with US$1,880 for H1 Pan Ocean Container - - 50,000 50,000 50,000 The current optimum re- approximately 500,000 TEU for 2015. Other Chinese 65,000 50,000 55,000 30,000 15,000 quires a sustained daily working January-September 2016, which Singamas similarly observed Rest of the world 105,000 75,000 75,000 75,000 30,000 of between 1.0 and 1.5 shifts, as compared with 1.2M TEU deliv- that the global economy had ex- Total 2,685,000 2,560,000 3,220,000 2,645,000 1,270,000 anything above that level tends ered during the whole of 2015. perienced a sustained slowdown *ISO standard/special, palletwide and domestic. **Jan-Sept only. Source: Container manufacturing industry to put pressure on factory lines. CIMC factories have thus ac- during 2016, thereby continu- However, running at less than counted for a slightly reduced ing a trend that was already be- to just 65% of this total, or equiv- output rate should be running dustry-wide one-shift operation, one shift reduces efficiency and 40% of world dry freight output coming acute late in 2015, and alent to nearer a ‘two thirds-shift’ at well above 200,000 TEU in although this figure has been ap- brings the plant operation closer accomplished so far in 2016, as directly affecting world trade rate. In monthly terms, the global order to ensure a minimum in- proached only once so far dur- to breakeven. This has become against nearer 45% of the 2015 growth and new box demand. increasingly critical in recent total. Much of the recent price erosion months, as new box prices have However, the company con- was attributable to the increased also remained low and have not tinues to contribute around 45% competitive pressures affecting generally kept pace with rises in of the world’s capacity total, the standard container manufac- the cost of steel and other ma- which implies a slightly poorer turing sector. terials, even if plant running ex- utilisation for its factories in penses (associated with wages, 2016, when compared to the Specialising capital and energy) are more industry average. In contrast to In response, the group is looking stable. Profit margins have, con- the one-shift operation averaged to further rationalise its capacity sequently, been impacted more across its plant network during base and focus to an even greater severely during 2016 than at any 2015, CIMC has barely been able extent on more specialised man- time since 2009 and some dry to manage a daily rate equivalent ufacturing. To this end, Singamas freight factories are thought to to one-half of a shift throughout has been increasing its production be barely operating in the black. the current year. of 53ft domestic containers, with CIMC’s most recent financial demand in 2016 at least expected CIMC still investing data covers H1 2016, when it to match that of last year. A size- Despite this far from encourag- reported an even more meagre able order has also recently been ing outlook, some new factory sale of just 238,300 TEU as dry worked on for China Railway capacity is still being brought on freight standard (although the Corp involving the construc- stream, albeit increasingly in the figure does exclude all specials). tion of various types of stand- form of ‘replacement’ facilities This production was down by ard and specialised container. that are to supersede some exist- two thirds on its level for H1 Most remaining dry freight ing factories. One such venture, 2015, which helped account for manufacturing is carried out by planned by the world’s top box the 40% decline in revenues suf- three other large-scale firms, all builder, China International Ma- fered by CIMC’s box building based within China. The larg- rine Containers Group (CIMC), business as a whole (including est is CXIC, whose production is located at Fenggang, close to reefer and specials) during H1 amounted to 165,000 TEU for the city of Dongguan, phase one 2016. Turnover dropped to ap- January-September 2016 period. of which is due to commence proximately US$750M for the This compared with 365,000 production from early in 2017. period, and yielded a net loss of TEU constructed in 2015, and Its eventual annual capac- more than US$20M. The shift a record 525,000 TEU during ity could be as high as 750,000 into deficit gives a clear indica- 2014, also indicating a sharp TEU. Another new CIMC tion of the way new box pricing decline for 2016. Its global pro- plant is being built within the has not been able to keep pace duction presently makes up 13% Ningbo Yinzhou Economic with the rising cost of materials. of the world total, although the Development Zone, and will It has been further compromised company’s capacity, at around also open in two phases, ulti- by a steady depreciation in the 850,000 TEU per year, accounts mately offering a capacity in value of the Chinese currency for a slightly greater 15%. The excess of 400,000 TEU per year. (RMB), against its US dollar ex- group operates a total of six dry CIMC admits that the going change. freight plants, which predomi- has been tough for the open- nantly produce standard equip- ing half of 2016, with the group Singamas on the up ment. “actively shrinking its capacity CIMC’s established rival is Dong Fang International Con- by combining production bases, Singamas Holdings, which runs tainer operates three standard in order to improve plant utili- a network of eight dry freight box plants, providing a combined sation and profit margin”. The plants. These offer a combined multi-shift capacity of around action was taken in the face of multi-shift capacity equivalent 400,000 TEU per year. These “weaker container demand and to roughly 1M TEU, some of produced 140,000 TEU from low capacity utilisation” caused, which is also being rationalised January to September 2016, con- in turn, by the continued slow- in the face of poorer demand and tributing a little over 10% of the down in Chinese exports and weaker pricing. global total. In 2015, the company the poorer outlook for the world Nevertheless, production from delivered almost 300,000 TEU, economy. Its established network Singamas has tended to hold thereby predicting a similar 40% of around a dozen dry freight up relatively well in 2016, with drop in output for 2016, which around 320,000 TEU delivered is in line with that being expe- during the January-September rienced by most competitors. period. The total compared with Dong Fang’s longstanding af- 470,000 TEU built during 2015 filiation with China Shipping overall, with the group suffering Group has now been ended, fol- less of a decline in production lowing the transfer of the group’s compared with CIMC. It has al- shipping arm (China Ship- ready contributed a significantly ping Container Lines) to Cosco enhanced 25% of world produc- Container Lines Group, and the tion in 2016, compared with less takeover of Florens by the Dong than 20% last year. Fang principal. This is greater than its share Maersk Container Industry of global plant capacity, which is (MCI) continues to operate a close to 20% of dry freight ca- single dry freight factory, MCI- pacity, indicating that Singamas Dongguan, which had construct- has been achieving a better-than- ed 50,000 TEU during the open- average rate of plant utilisation ing nine months of 2016. It, too, in recent months than its larger has lost ground and, to a large ex- competitor. Even so, the compa- tent, has been reliant on business ny’s average daily production rate from its Maersk Line affiliate. still falls short of the single-shift Nevertheless, MCI-Donggu- optimum. an attained another production The group, in its interim re- record in 2015, when it built view, reported a total output of 160,000 TEU and achieved a 224,000 TEU (including dry global share of 6%. It offers a freight, reefer and tank) for the capacity equivalent to 200,000 opening half of 2016, together TEU/year. Reliable Permanent Power with an even higher sales volume There remains only one other of 236,400 TEU. These totals volume factory in China, that Visit us at the Intermodal show Rotterdam at stand CT6 or E50 were down by more than 30% on operated by Pan Ocean Contain- the same period in 2015, although er Services (POCS), which had GENMARK B.V. the company’s revenue stream already constructed 50,000 TEU experienced an even greater fall, through January-September amounting to over 40%. It gen- 2016. It is thus on course to be WWW.GENMARK.NL erated almost US$400M during the only company in 2016 that is [email protected] first half 2016 and suffered a net likely to surpass its manufactur- loss of US$33M before taxation ing total of 2015. v

28 October 2016 REEFER INDUSTRY Charting a course in reefer monitoring ack in October 2013, WorldCargo Lines are taking different paths on the News confirmed and reported Bthat Maersk was testing a wire- journey to data-driven decision making in less system to roll out on a global scale. Ever since then, the rest of the industry reefer container management has been watching and waiting, but, so far, no other carrier has committed to remote a fleet of eight reefer ships and one con- business case for the Emerson system was reefer monitoring on a similar scale. CMA tainer ship, the SEATRADE ORANGE. firmly based on ROI by lowering exist- CGM and then MSC both invested in AEL’s focus in implementing reefer ing costs. the French start-up Traxens, but neither monitoring was to lower operating costs As it does not have its own vessels, AEL has been willing to confirm the extent through performing tasks like monitor- looks to charter ships with the Refcon to which they are planning to roll out ing, temperatures, gas atmosphere, critical system installed, and can then monitor the system across their container fleets. fault alarms and performing pre-trip in- its containers through the vessel’s com- spections remotely, as well as gaining the munication system. However, the GSM Marching on visibility to improve asset management in Maersk, for its part, is pushing ahead with key areas like reefer utilisation, reducing AEL is fitting Emerson RMM+ modems to its remote container monitoring (RCM) M&R costs and claims control. The AEL its reefer fleet project. The carrier has not disclosed any numbers, but sources suggest it has invest- ed somewhere in the region of US$40M- 50M in this project. The RCM system is now installed across virtually its entire fleet of over 270,000 reefers, and Maersk has been working on changing internal processes to leverage the data it generates. Speaking at the Cool Logistics con- ference in Bremen last month, Shereen Zarkani, Maersk Line’s head of reefer management, said “reefer visibility” only makes sense if applied to the entire fleet. “Since we launched RCM in 2015, we matured our internal processes and gained operational experience in han- dling the data. We have now entered the next stage, and will be ready to offer this enhanced data visibility to our customers in the coming year,” said Zarkani, adding that key milestones before the launch in 2017 include a customer facing IT-plat- form, as well as customer pilots. One of the key questions is how Mae- rsk will monitor its boxes on alliance partner vessels, which do not have the Ericsson system for vessel-to-shore com- munication that Maersk uses. Respond- ing to WorldCargo News, Maersk said its boxes are still monitored throughout the journey. “The only difference is it won’t be in real time – in such cases, standard manual monitoring will continue as usual and the data will be shared as the vessel approaches shore, so we are able to pro- vide reefer history data, and customers will know expected cargo status also for non-Maersk vessels, once they approach shore,” the company said. It is currently reviewing “technological options” to ex- tend coverage to non-Maersk vessels at sea. Maersk declined to provide details on future value-added services, but stressed that “visibility will be provided to jointly improve cargo quality and improve the ability to react. There could be different models of presenting and packaging the data. We will further review – jointly with In making history, we’ve created the future. our customers – how RCM data can help eliminate unnecessary costs in the supply chain, and the value this brings”.

A different approach TM This month, WorldCargo News has learned Introducing NaturaLINE – The world’s first • Power consumption comparable that two smaller carriers are taking a dif- to Carrier’s best-selling unit ferent path to reefer monitoring. As re- natural refrigerant container technology. ported on page 1, Seatrade, the world’s largest reefer vessel operator, will outfit its • Excellent efficiency for part-load first newbuild container vessels with the The first and only technology of its kind, the NaturaLINE reefer unit perishable cargo Emerson Refcon system for power-line incorporates CO2 in place of conventional synthetic refrigerants to deliver reefer monitoring, and install 6,000 Em- sustainability and efficiency equal to our best-selling unit. • Nonflammable and nontoxic at erson RMM power-line modems on its (leased) reefer containers. low concentration Africa Express Line (AEL) has also opt- This natural refrigerant-based solution is the most environmentally ed for Emerson for its new reefer moni- sustainable alternative for refrigerated marine transport. It’s the future of • No CO refrigerant tax toring system. AEL is installing Emerson’s container refrigeration – brought to you by the Natural Leaders at Carrier. 2 RMM+ modems (which can send data over both a power-line connection using www.carrier.com/naturaline • No intermediate refrigerant step the ISO 10368 standard and wirelessly using GSM) on its fleet of 3,000 reefer • Familiar controls and containers. Both Seatrade and AEL will use Emerson’s ProAct Transport software maintenance to manage the data that the modems gen- erate. • Global support from Carrier AEL has been considering a remote monitoring system for some time, and container manager Mathew Shed ex- plained that Emerson provided a package of hardware, cellular services and software ©2015 Carrier Corporation. A part of UTC Climate, that best meets its needs. Controls & Security, a business unit of United AEL is part of the Compagnie Fruit- Technologies Corporation. Stock symbol UTX. iere Group, a vertically integrated com- pany that produces, transports and dis- tributes its own fresh fruit and vegetables from West Africa to Europe. AEL operates

October 2016 29 CONTAINER INDUSTRY 21-23 MARCH 2017 Shanghai World Expo Exhibition & Convention Center

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30 www.intermodal-asia.com October 2016 REEFER INDUSTRY functionality on RMM+ provides the history over the cellular network through and develop processes to manage its reef- will also be able to make better decisions that Maersk’s route is not the only one to necessary reporting flexibility, should any the RMM+ modem. Mathew Shed add- ers using that data. about which containers and vessels cur- data-driven reefer management. Speaking vessel not have Refcon installed. AEL ed that AEL is able to achieve this level He stressed that this is a joint effort – rently have the lowest operating costs. to WorldCargo News, Brian Robertson, VP did consider a satellite-based system that of “micro-management” because it has while AEL uses ProAct Transport on a business development, Transportation So- could allow it to monitor containers in- 3,000 reefers. SaaS basis, it also has its own IT resources Blazing a trail lutions at Emerson, said a lot of carriers dependently of vessel communications, AEL has opted to single-source hard- working on the project to integrate re- While the scale is different, AEL, like are looking for a migration path to get but Mathew Shed had concerns about ware, cellular services and the ProAct mote monitoring into business applica- Maersk, is at the forefront of the in- them from the site level monitoring (i.e. both the technology and the cost of send- software. Mathew Shed stressed that “eve- tions and processes. These are focused dustry in implementing centralised re- on the vessel) that they do today, to an ing cellular data. ryone will be different here”, but for AEL initially on identifying and defining op- mote monitoring. Commenting on the “enterprise” level system. When vessels are on the water, and the single-source approach enabled it to erational issues, before working on how decision-making process, Mathew Shed Two important points that often get reefers are connected to Refcon through get up and running with remote moni- to bring in operational data to improve remarked that it was difficult to pick a lost in the debate over the merits of GSM a power-line connection, AEL generally toring relatively quickly. outcomes. supplier when technology keeps evolv- and satellite communications, he stressed, requires an update every 12 hours from Perhaps a bigger challenge than the As the project moves forward and roll- ing, and products are expected to have a are interoperability and the investments the vessel-based communications sys- hardware side of a system is developing a out is completed across the entire con- shorter lifecycle than the 12-year average carriers have made in existing systems. tem, as well as notification of any special plan to change business processes to make tainer fleet, AEL expects to see benefits for a reefer container. Lines, he added, These are particularly important in an in- events or alarms. Alarms typically lead to use of the data. This is much more com- in improved asset management, as well need to focus on the business case for dustry where alliances and vessel sharing direct communication between AEL and plicated and, regardless of the supplier, as lower operating costs. AEL’s relatively smart reefers, rather than trying to insu- are commonplace. the vessel crew concerning what course emphasised Mathew Shed, it really starts short sailing times enable it to generate late themselves from what will inevitably While the big three alliances might be of action to take. When the vessel is close with a blank sheet of paper. By having annualised full reefer loads eight times a be a changing technology landscape. able to address these directly with their enough to the shore to pick up a GSM open dialogue with Emerson, AEL was year, and Mathew Shed wants to lever- For Emerson Climate Technologies, partners, the main alliances do not actu- connection, each reefer sends its full data able to identify the most important data age data to improve even further. AEL the Seatrade and AEL projects highlight ally operate in most of the north/south RTE at the terminal For container terminals, remote reefer monitoring presents a diffi- cult question: should a terminal in- vest in its own monitoring system if its customers are going to monitor You can choose their own containers remotely? New Jersey-based Refrigerated Transport Electronics (RTE) specialises in re- big data sources. mote reefer monitoring, and sales manager Walter Vinson said there is certainly no slowdown in the market Or refrigeration sources. for terminal-based systems. RTE has just had a record year, and has taken on additional staff, mostly Or simply choose the in software development, as its cus- tomers look to integrate its monitor- ing systems with their own applica- tions, including the TOS. Recent single source. installations for RTE include MIT in Panama, the River Trade Terminal in Hong Kong, and Rotterdam World Gateway in the Netherlands. Walter Vinson said RTE’s terminal customers are well aware of carriers’ steps with remote reefer monitoring, but none of these systems completely removes the terminal operator’s need manage reefers in the terminal. There will always be a large percentage of reefers that are not managed remote- ly (including leased containers that are not supplied with a modem). RTE’s business growth is being driven by terminal operators looking to automate a manual aspect of their current operation, for both cost and safety reasons. For many terminals, added Walter Vinson, a reefer moni- toring system has gone from some- thing that was a “bit of a luxury” two years ago to a necessity. In some locations, such as MIT Panama, the installation coincides with the introduction of automated stacking cranes, which place great- er operating restrictions around the reefer zone. A terminal-owned monitoring system means there is less interruption to the cranes due to personnel needing to enter the reefer area to check reefers. Until now, you’ve been on your own trying to put together the mismatched RTE is also moving ahead with its pieces of big data and refrigeration. But today, Emerson has created the power monitoring system for meter- ™ ing electricity consumption. This was single source for you — ProAct Transport. Combining our deep refrigeration something RTE and ESL unveiled at technology experience with our innovative hardware and software expertise, TOC Americas in 2015, using meters Emerson ProAct Transport delivers fleet intelligence across the entire that are integrated with ESL’s plugs and RTE’s GRASP software. Walter cold chain and down into every container. So you have unprecedented levels Vinson said RTE is now working of visibility, automation and control for the smarter decisions that truly on its first two pilot installations at optimize your entire operations. See how we’re putting it all together for you undisclosed terminals. The terminals involved are looking for more visibil- at Intermodal Booth #C16 or at EmersonClimate.com/ProActTransport. ity into connection periods and the power draw of containers immedi- ately after they arrive, which can help identify hot boxes.

Terminals continue to invest in their own monitoring systems

October 2016 31 REEFER INDUSTRY reefer trades. Here, there is a far importance of software, and Em- As has been noted before in CIMC “is going to be in the low and monitoring data with other and Eisenberg explained that the greater variety of vessel sharing erson’s ability to deliver its ProAct WorldCargo News, Emerson has tens of thousands of units in the applications in a way that adds Carrier Transicold product is one arrangements, and lines need to application as a service. Reefer raised the issue of extending the next couple of years, and I think value. Carriers’ first priority is to “that we built specifically for Car- consider how they will manage supply chains are very complex, standards-based approach embod- it’s going to grow from there”. use data to understand what is rier”, complete with its logo. “It’s when their reefers are on a ves- and it is not always possible to ied in ISO 10368 to cover other Many tracking and monitor- going on in their own operation. hosted in a different centre [and] sel that does not have the com- physically manage the assets at methods of communicating with ing companies line up at CIMC’s Traxens, on the other hand, “lives is in no way tied to the Orbcomm munications infrastructure to sup- every point in the supply chain. a reefer container, but this has re- door, looking to partner with the and dies by the value it can give product,” he added. port their particular monitoring Sometimes, what is required is ac- ceived a lukewarm response from world’s largest container manu- to the data”, and, as such, has been For its part, Maersk Container system. tually a balance of “right time and other players in the market. In the facturer, but Orbcomm’s strategy specifically set up to deliver data Industry (MCI) is taking a hard- As AEL’s case shows, the wide real time” data, said Robertson. longer term, however, it may be is wider. CIMC is 22.75% owned services. ware-agnostic approach to reefer use of Refcon on vessels, and its Mathew Shed agreed, adding in everyone’s best interest to have by the Cosco Group, and Eisen- This includes addressing how monitoring, and its Star Cool ma- ability to communicate with any that remote monitoring can push some standards for “connecting” berg noted that CIMC “have got the data collection and transmis- chinery (including the Star Care reefer through the power-line out so much data that it is easy to reefer and dry containers. a customer there”, and the inside sion process will be affected by CA version) feeds a wide range of ISO 10368 standard, or via GSM, for people to become blinded Asked to comment on the is- line on the Chinese market. “They the changing landscape in the data to any “standard monitoring continues to deliver value, and and miss key events. Much of the sue of a standard, Maersk Line [CIMC] have gotten further in telecoms sector. Traxens, he add- system”. Clarifying to WorldCargo lines and vessel owners want to work AEL and Emerson are do- said: “In the past years, we have terms of getting Orbcomm’s li- ed, has the backing of two major News, MCI said a “standard” sys- leverage the investment they have ing now is about developing pro- pioneered this area and gained the cense in China than anyone has shipping lines that understand the tem is one that has the necessary made in vessel-based systems for cesses so the right person gets the needed experience in generat- ever gone before,” he said. CIMC challenges of trying to set up and infrastructure (Modem, GSM, the life of those assets. right data at the right time, auto- ing, processing and handling these will be Orbcomm’s partner on maintain a system themselves, and power-line, WLAN) available for Robertson also emphasised the matically. vast amounts of data. While it is all deployments inside China. he is confident Traxens will win different brands of reefer ma- early days and any international As the supplier of the reefer further business. chines. standard is still very far away, we communication system to Mae- To get the most value out of acknowledge the relevance of a rsk, Orbcomm currently leads Finding partners any system, however, two-way Pay as you monitor future global standard for con- the market in terms of number of For reefer equipment manu- communication is required, and IDENTEC Solutions, a sup- per-use” model where they pay nected containers.” systems deployed, but that could facturers and container leasing this means the monitoring system plier of terminal-based moni- only for the actual time each soon change, depending on how companies, the remote monitor- must have access to the reefer sup- toring, has floated the idea of device is monitoring a reefer More to come and to what extent CMA CGM ing landscape is a tricky one to plier’s data protocols. This makes terminals paying for its CTAS container, and not on a stand- Nobody wants to say much or and MSC (and perhaps others) navigate. Reefer manufacturers, it possible to react to the data re- reefer monitoring system on ard weekly or monthly basis. give names at the moment, but roll out the Traxens system. The in particular, can see advantages ceived from the reefer machine by per-use basis. Speaking at this He gave the example of a ter- it is fairly clear that there are a two lines have invested in Trax- in selling units that can receive changing the set point and other month’s TOC Americas con- minal with 1,000 reefer plugs, number of other carriers in the ens, which is targeting both reefer software updates and conduct parameters remotely, initiating de- ference in Cancun, Stephan and said an arrangement could process of making a decision on and dry box monitoring, and they diagnostics remotely, but, as one frosts and updating software. Star Piworus, VP global sales, ports be worked out where the ter- reefer monitoring. Marc Eisen- have representation on its board. equipment OEM explained to Cool even allows this to be done and terminals, said many ter- minal guarantees a minimum berg, CEO of Orbcomm, recently Speaking with WorldCargo WorldCargo News, it is a delicate without the reefer being connect- minals recognise the benefit of usage of 10% over 3-5 years, referred to eight different projects News, Tim Baker, marketing di- balance to offer a system and not ed to power. remote reefer monitoring, but and the daily rate to monitor a his firm is working on that are in rector at Traxens, said the com- get between the customer and its Reefer OEMs are being ap- are reluctant to invest at a time reefer container could be as low either pilot stage, coming towards pany has a different market model choice of monitoring system. proached by multiple companies when the carrier and alliance as US$1. the end of competitive bidding than Orbcomm, one which ena- According to Orbcomm, Car- to get access to their protocols, landscape is changing so rapidly This, Piworus continued, or in final contract negotiations. bles lines to implement a reefer rier Transicold is now piloting its but, as far as is known, suppli- around them. would lower the capital and “There are hundreds of thousands monitoring system for a much system with key customers, with ers are mostly (or only) working Terminals are also wary of investment risk considerably, of units that we are bidding on lower cost. Without providing a view to offering it as an option with those that have an actual the time and resources it takes require no upfront investment that we think that we are likely all the details, Baker said Traxens on new Carrier machinery. Be- agreement with a reefer owner. to implement a remote moni- from the terminal, and pay- to win. I can’t say that we are go- is offering lines and container ing able to offer pre-integrated MCI explained: “The owner of toring system, and are con- ments would come from the ing to win every one, but I think owners a monitoring system “at a telematics, said Eisenberg, “gives the container also owns the data cerned that whatever tech- positive cash flow generated by that we are likely to win some,” he lower price than they can ever do them [Carrier] an advantage in stored inside the container, if no nology they implement today providing actual reefer moni- predicted confidently. it themselves”, in return for the this business”, and Orbcomm, special agreements have been might quickly be superseded or toring services. IDENTEC Analysts following Orbcomm “right to sell and use the data”. through its acquisition of WAM made. It should, therefore, be the become obsolete. would know when the devices have been watching to see if Shipping lines, he continued, Technology, has the ability to owner’s decision to mount a mo- Piworus said traditional rent- were connected and monitor- one of these is a large deal with are very interested in data servic- write directly to Carrier reefer dem, and to define who should al and leasing models are inflex- ing a container, so the system Orbcomm’s partner in China, es, but they operate legacy systems controllers. have access to the retrieved data. ible, and IDENTEC is willing would be very transparent, and container manufacturing giant that are only capable of sending The reefer OEMs business The same goes for controlling the to talk to terminals about a “pay invoicing very simple. CIMC. Eisenberg clarified that he out data, and are not in a position is separate to Orbcomm’s sales machine via an on-site operator thinks Orbcomm’s business with to integrate container tracking channel to container owners, or remotely via a modem.” v

32 October 2016 REEFER INDUSTRY

Table 1: Reefer container production and capacity Reefer container builders take a hit Year Output (units) Output (TEU) End-year capacity* 2012 120,000 230,000 280,000 2013 108,000 205,000 340,000 eefer container manu- Impacted by weak demand, reefer Maersk may have so far com- 2014 122,500 225,000 340,000 facturers are experi- mitted to a smaller purchase of 2015 140,000 275,000 350,000 Rencing a very difficult output has plummeted by 50% in reefer equipment in 2016, but 2016** 49,000 95,000 375,000 year in 2016. The total delivery it still heads up the shipping figure over the period January line sector by a sizeable mar- *Maximum annual twin-shift capacity (TEU). **January-September only. 2016, while prices continue to be Source: Container manufacturing industry to September (according to the gin. It alone accounted for over latest data to be released by the depressed and there is fierce 50% of all shipping company box manufacturing industry) competition between suppliers deliveries made from January purchases over the first nine period this year. Seaco and Tex- amounted to just 95,000 TEU. to September. Other significant months of 2015 were almost tainer have led purchasing from This was less than half its level buyers include the more region- four times as high as the same the leasing sector, each receiving during the corresponding pe- wards volume manufacture, and the financial state of most major ally focused Matson Transport period in 2016, and the sector around 20,000 TEU. Other im- riod of 2015. so has yet to attain its installed shipping lines. Shipping compa- and Eimskip Group (of Iceland), went on to purchase 135,000 portant buyers amongst leasing Even given the probability maximum, the potential extra nies have accounted for only a which contributed another 10%. TEU over the full year 2015. firms were Beacon, SeaCube and of a stronger uptake for the fi- capacity already exists. In 2017, quarter of all reefer output so far This contrasts with 2015, CAI International, plus TAL/Tri- nal ‘peak season’ quarter, reefer Singamas plans to bring one fur- in 2016, with the dominant bal- when lines buying reefers in Lessor scale-back ton and Florens/Dong Fang. The box production is not expected ther site on stream at Qingdao, ance instead being met by leas- large quantities included CMA The leasing sector has scaled back leasing sector purchased a total of to go much above 150,000 TEU although its capacity rating has ing firms. By contrast, the split CGM, Hamburg Süd, Hapag- even further, with purchasing in 140,000 TEU of reefer boxes last for the current year overall. The still to be made known. was nearer 50:50 for 2015. Lloyd, UASC, K Line, OOCL the first nine month of 2015 run- year, but the final figure for 2016 annual figure reached 275,000 Some lines have since and Evergreen. Shipping line ning 60% higher than the same will be much lower. v TEU in 2015, and has not been Idle capacity switched their balance back below 200,000 TEU since the The recent global produc- to leasing during 2016, whilst Table 2: Reefer container production by manufacturing group (TEU) market upheavals of 2009-10. tion rate has thus fallen short the majority are continuing to The total for 2016 has, to date, of single-shift working, which hold off from replacing older Company 2013 2014 2015 2016* End-year capacity** 45,000 190,000 comprised around 3,000 x 20ft effectively idles production ca- stock in order to conserve funds. CIMC Group 130,000 134,000 180,000 MCI Group 45,000 45,000 60,000 36,000 125,000 and 45,000 x 40ft high cube, pacity. CIMC factories, based This practice has already aged Singamas Group 30,000 46,000 35,000 14,000 60,000 plus a few hundred ‘specials’. It in Qingdao/Taicang, had built the line-owned reefer fleet Total 205,000 225,000 275,000 95,000 375,000 compared with 5,000 x 20ft and around 45,000 TEU in the nine in recent years, to the point 95,000 x 40ft high cube built months from January-Septem- where it has a significantly older *January-September only. **Maximum annual twin-shift capacity (TEU). during the same nine-month ber 2016, with half of that to- profile than leased equipment. Source: Container manufacturing industry period in 2015. tal constructed since July. Over 60% came from the larger Qing- Erratic output dao site, leaving 40% for Taicang. Throughout 2015, the monthly By comparison, the company’s production rate held relatively two factories had already sup- steady, at between 20,000 and plied 125,000 TEU throughout 25,000 TEU for the majority the same nine-month period in of the year, apart from a brief 2015, and then went on to reach surge in January (when more 180,000 TEU for the year as a than 30,000 TEU was produced) whole. and drop in the weaker months The Singamas plant in Qi- of June/July (to nearer 15,000 dong produced 14,000 TEU TEU/month). from January to September In 2016, the monthly output 2016, compared with 25,000 has been more erratic, as well as TEU for the same period in the lower, with the highest rate (ex- preceding year. Its total output ceeding 15,000 TEU/month) surpassed 30,000 TEU in 2015, achieved during the most recent with a balance of 5,000 TEU (third) quarter. Output was hard delivered earlier in that year by pushed to match 10,000 TEU/ the older Shanghai Reeferco month earlier in the year, and plant, which was subsequently fell well short of this figure in closed. February/March and June. It MCI factories managed a declined to practically nothing total exceeding 35,000 TEU, in May. much of which was still pro- Reefer pricing has remained duced at Qingdao. That factory depressed, even if material (and had already supplied more than factory running) costs have 40,000 TEU during the corre- tended to hold steady over the sponding nine months of 2015, past year. Prices have been held and topped almost 60,000 TEU down by raw materials costs for the year overall. However, (the average price per tonne for it was then being heavily sup- stainless steel has been below ported by affiliate Maersk Line, US$2,000 for the high grades which took delivery of more this year) and an increase in pro- than 25,000 x 40ft high cubes duction capacity, following the during 2015 – and so account- start-up of Maersk Container ed for big share of the factory’s Industry’s (MCI) new factory overall output. in San Antonio, Chile. This has further heightened competi- Trial production tion between the three main Maersk also received some trial box building groups – CIMC, production from MCI’s new fac- Singamas and MCI – and at a tory in Chile later in 2015. How- time when demand was gener- ever, MCI-Qingdao had to rely ally falling. on some significant third-party The headline price being paid business earlier in 2016, due to for a delivered 40ft high cube Maersk Line initially slowing its reefer (of average specification, reefer procurement, in order to and including machinery) has absorb the substantial deliveries held close to US$15,000, with received in 2015. the box manufacturing cost in Maersk Line’s intake from the US$8,000-8,500 range, de- MCI-Qingdao had amounted pending on build quality. Reefer to a little more than 5,000 x 40ft machine prices are similarly de- high cubes for the opening nine pressed, due to the intense com- months of 2016, which made petitive pressures that already up just a third of the factory’s exist within this manufacturing entire output. Nevertheless, sector. Maersk Line intends to purchase The world’s reefer box build- a significantly larger number ing industry currently operates before the year-end, with a to- an annual capacity of 375,000 tal of 14,800 units ordered by TEU, based on maximum twin- the end of September. Their shift operation. A stable 190,000 production will be split between TEU/year is being provided by MCI-Qingdao and MCI-San CIMC’s two factories, each of Antonio, and could also come which is relatively new. Singa- from other suppliers. All will mas offers a single plant – also a feature built-in Remote Con- recent start-up – rated to 60,000 tainer Management (RCM) TEU per year. MCI’s main site technology, and will fuel fleet in Qingdao operates at 85,000 expansion, as well as replacing TEU/year, while its San An- older equipment. tonio plant can supply 40,000 Reefer demand has proven TEU/year. Although the latter generally weaker in 2016, due to plant is still being geared up to- a slowdown in trade growth and

October 2016 33 TANK CONTAINERS

Global tank container development by year 2013 2014 2015 2016 Market gets tanked up Operators 116 176 194 205 Owned 140,460 161,300 194,160 211,055 he International Tank Leased 88,000 103,250 111,540 118,025 Container Organisation The latest ITCO survey shows Total 228,460 265,550 305,700 329,080 T(ITCO) recently pub- growth in the global tank container lished its 4th Annual Tank Con- Leasing firms 27 34 33 36 tainer Fleet Survey. Based on de- fleet, but fewer new units were Idle 15,000 17,650 23,400 20,175 tailed research of tank container Leased to operators 88,000 103,250 111,540 118,025 operators, leasing companies and built last year Leased to shippers/others 47,400 55,600 60,060 63,550 Total 150,400 176,500 195,000 201,750 other owners, the survey pro- vides what ITCO describes as 305,700 in 2015) is numerically top 10 lessors account for 85% Shippers and others “a qualified estimate” that there dominated by the top 10 global (172,000 units) of the total lease Owned 47,400 55,600 60,060 47,400 were some 458,200 tank contain- tank container operators. These fleet, with the top three compa- Leased 47,400 55,600 60,060 63,550 ers in operation worldwide as of represent some 54% (178,000 nies accounting for 58% of the Total 94,800 111,200 120,120 110,950 January 2016. This headline fig- tanks) of the total fleet. total. These comprised EXSIF ure represents an increase of 7.2% The top 10 operators were (22%), Seaco Global (21%), Eu- Estimated manufacture 39,700 42,620 48,200 43,780 compared with the 427,560 units Stolt Tank Containers (11%), rotainer (15%), Trifleet (6%), TAL Estimated disposals* - -1,000 -5,000 -2,000 recorded for January 2015. Hoyer Group (10%), Bulkhaul (5%), NRS (4%), Raffles (3%), IEL Grand total 338,260 385,200 427,560 458,200 Growth** - 13.9% 11% 7% According to the survey, a total (6%), Den Hartogh Logistics (3%), TWS (3%) and Multistar of 43,780 tank containers were (6%), Newport (5%), Bertschi (3%), with the remaining 15% di- Notes: Data as of January in respectives years. Various assumptions/estimates made in accordance with the manufactured in 2015 (January Group (5%), China Rail Logis- vided among smaller leasing firms. survey methodology (available via www.itco.org). *Not easily verified. **Growth for the year compared with 2016 data), down from 48,200 in tics (5%), VTG Tanktainer (2%), ITCO’s global fleet total does preceding survey. Source: ITCO 2016 Tank Container Fleet Survey 2014. Interflow (2%) and Suttons (2%), not include leasing company The accompanying table shows with the remaining 46% divided tanks, except idle units, as the rest repositioned to a demand area of 10% has been maintained. since respondents tend not to re- the estimated global number of among other operators. of the lease fleet is counted in the or remaining as newly manufac- The shipper fleet shown in the veal details of their fleets. tanks by industry sector (some figures for operators and shippers/ tured stock. Typically, says ITCO, table – also referred to as produc- Tank containers are typically estimates and assumptions are Lease fleet others in the table. this represents 10% of the leased ers or consignors – comprises depreciated over a residual life made). The survey gives details of A total of 36 leasing companies, Tanks might be idle because fleet. In the current economic tanks operated by chemical or of 20 years, but often remain in 205 operators of tank containers with a fleet size of 201,750 units they are in the process of prepa- environment the average idle food/beverage companies. These service for a longer period. The worldwide for 2016. The operator (up from 195,000 in the previous ration, such as maintenance and number might be higher, but for units are mostly special tanks service life of the tank might be figure of 329,080 units (up from year) are listed in the survey. The testing, or in the process of being reporting consistency, at estimate manufactured or modified to extended by refurbishment. Dis- meet a specific need, and include posals result from repair costs ex- tanks designed to transport lique- ceeding the economic value of fied and refrigerated gases. the tank and/or the age profile The “other” tank users include required by some users. Prevail- the many units operated by enti- ing low materials prices, exchange ties such as military, shipping and rates and interest rates have low- barge lines, rail, oil and mining ered the cost of new tanks. This industries, Chinese domestic and reflects on the decision whether a companies that use tanks for stor- heavily damaged unit is economic age or special transport operations to repair or remanufacture. such as bitumen. Some of the Some disposals are purchased by tanks disposed from operator and others and modified for contin- lessor fleets might be modified ued use outside of the mainstream and utilised within this category. sector, and so may be accounted ITCO says its methodology for in the survey’s “others” category. calculating the number of ship- per/others fleet has been adjusted Gassing up to align with the estimated static One area highlighted by this year’s growth of the owned part of the survey for the first time is the gas fleet. tank fleet, but ITCO says this sec- Growth in the tank container tor is difficult to estimate as few industry is reflected by the num- respondents detail their fleet by ber of new units built. The survey type. Nevertheless, assumptions gives details of 18 tank container were made on the basis of the manufacturers, which produced responses received. The total fleet Your tank container experts the 43,780 new tank containers in is estimated at 37,000 units. Espe- 2015 (shown in the 2016 column, cially high growth is taking place as survey data relates to January). in cryogenic tanks for refriger- Compared to 2014, when 48,200 ated liquefied gases. According to TWS has more than 25 years of experience in renting out standard and special new tank containers were manu- ITCO, seven manufacturers spe- tank containers for liquid products to the chemical and food industries. TWS also factured, this represents a decrease cialise in gas tanks, and these alone provides various sizes of spill troughs. Customers rely on the outstanding quality of 9.2%. manufactured 1,740 units dur- Manufacturing is concen- ing 2015. Furthermore, Chinese of its fleet and value its flexibility in terms of volume and technical features. trated in China, with the only manufacturers include a quantity For more information: E-mail: [email protected] and web: www.tws-gmbh.de other large volume manufacturer of gas tanks in their total number, (Welfit Oddy) based in South and, together with other manu- Africa. A total of 18 manufactur- facturers not listed, cryogenics ers are listed in the survey, but manufacture probably amounts to the top five represent 90% of about 2,500 units, says ITCO. global manufacturing – CIMC Another area detailed for the (46%) Welfit Oddy (14%), Singa- first time in this year’s survey is mas (13%), Nantong Tank NTT the swap tank fleet. Swap tanks are YOUR PARTNER IN TRAILER CONSTRUCTION (12%) and CXIC (5%). The ma- mainly (99%) used by tank opera- jority of manufacturing is of the tors in Europe to benefit from the Product range: industry standard tank range but, economics of the rail tariff and the · Skeletal trailers nevertheless, there is a very active generally higher permitted maxi- · Cornerless trailers and growing specialised tank sec- mum gross mass. ITCO says that · Rolltrailers tor, says ITCO. China and other areas are also po- · Goosenecks The accompanying table also tential growth markets, although · Multi-trailer train systems summarises the ITCO surveys 40ft configurations might prove · Industrial trailers completed since 2013. The esti- to be better suited. The associa- · Custom-built and special trailers mated 2016 growth, compared tion believes there is likely to be with the 2015 survey, is around continued growth in this sector. 7.2%. Shipper-owned fleets are “The tank container industry not considered to be growing, due continues to grow, both in terms to the trend to outsource logistics of the volume of cargo trans- to operators. The 2014 and 2015 ported and the number of tank shipper/others owned fleet has containers in the global fleet,” said been adjusted by ITCO, to reflect Heike Clausen, ITCO president. a static position, but the leased “This growth reflects the accepted part of the fleet shows a percent- recognition of the tank container age increase. as a safe, reliable, economic and Pending more precise data, a sustainable means of transport. nominal figure of 2,000 has been “Continuing investment in included in the survey for dispos- the industry reflects considerable als – a figure that ITCO says is confidence in the long-term op- likely to increase in future years, portunities, with international Houcon Cargo Systems b.v. Houcon reflecting the economics of the operators expanding their deepsea Alexander Bellstraat 7, 3261 LX Oud-Beijerland P.O. Box 1569, 3260 BB Oud-Beijerland comparative reduced price of new services, while niche regional op- The Netherlands Cargo manufacture versus the increased erators are opening up and devel- Phone: +31(0)186 - 620930, Fax: +31(0)186 - 615160 cost to repair older tanks. oping new, regional markets.” E-mail: [email protected] ITCO states that figures for dis- The complete survey, includ- www.houcon-group.com Member of the Houcon Group Systems posals are not easily verified, and ing the methodology used, can be there is difficulty estimating them, downloaded from www.itco.org. v

34 October 2016 FLEXITANKS

Chizhevskiy is confident the market for flexitanks will continue to grow, and Getting to grips with flexitanks he notes that a steady stream of tank con- tainer operators from the Benelux region he industry continues to see are now contacting the company. “If you flexitank systems increasing their Not everyone is convinced by them, but give a call to a tank container company Tmarket share, at the expense of the use of flexitanks continues to grow that really thinks about the future, they tank containers, IBCs and other meth- will have a person dedicated to flexi- ods of liquid transport. At the same time, kiy said one of the best is the CIS region, has money tied up for several months, just tanks,” he added. there are concerns around the quality of and Ukraine in particular, where BeFlexi in the shipping process, before they are As the market continues to develop, flexitank products themselves and their is seeing market growth of over 200%. finally paid. the concept of reusable flexitanks has potential to damage the sides of dry Not all of the growth is coming at the Today, an increasing number of ship- been suggested, which is actually an old freight containers. expense of tank containers – some of pers prefer to ship 200t of product per idea coming round again, as the very first These are certainly not new issues, the cargo is actually switching from bulk week on 30-day payment terms, instead flexitanks were reusable. Though it is an and the Container Owners Association tanker shipping. The economics of bulk of using large bulk shipments. Container interesting idea, said Chizhevskiy, he does (COA) formed its Flexitank Division vessels, said Chizhevskiy, are difficult for availability is an issue, but there has also not really see a need in the market for a back in 2010 to tackle these matters. One shippers with less than 3,000t shipments. been some progress establishing two-way reusable product, from the shipper’s per- of the results was the COA Flexitank Cargo has to be accumulated and stored, trade links, using the same containers to spective. It could, however, have the ben- Code of Practice, which sets out recom- and bulk vessels are not as well sched- import products like palm oil, and then efit of saving taxes and import duties.v mended procedures for selecting contain- uled or as reliable as container services. exporting lubricants or sunflower oil ers and operating flexitank systems. The end result is that the cargo owner from Russia, for example. SGS personnel installing a BeFlexi flexitank ISO for BeFlexi Flexitank specialist BeFlexi has embraced the COA Code of Practice and has put in place a system to ensure its products can be operated in accordance with its requirements. On 30 August, BeFlexi an- nounced it had completed an “interme- diary audit” on compliance with COA Code of Practice as a flexitank operator. “The certificate issued by NQA, the ac- credited global ISO certification body, confirms that BeFlexi management systems applicable to flexitank, dry liner operations, logistical and financial services comply with the COA Code of Practice for single-use flexitank systems and meets the BS ISO 9001:2008 Standard,” the company stated. Speaking with WorldCargo News, Be- Flexi business development director Yan Chizhevskiy said the company took this initiative in part because it recognised that most of the problems with flexi- tanks are due to operational issues, not manufacturing defects in the products themselves. COA statistics, he added, show that the percentage of shipments that have a leakage problem is just 0.02%, and 98% of those are caused by installa- tion problems, and not the flexitank itself. Though these numbers are low, Be- Flexi was encountering potential cus- tomers who had a bad experience previ- ously and were reluctant to try the system again, even if their past experience was a long time ago. Taking the initiative, BeFlexi signed an agreement with SGS Inspection Services for it to provide flexi- tank installation services for its products globally. BeFlexi trained several SGS per- sonnel directly in all aspects of the COA Code, and SGS then trained its own wid- er network, which has 1,800 locations worldwide. Chizhevskiy emphasised that this was not a simple process. SGS, he said, are “true engineers” and have a lot of expe- rience in working with, inspecting and classifying cargo. He added that it took a lot of time, money and effort to imple- ment a standard set of procedures globally. BeFlexi ultimately hopes its move will raise the bar for the flexitank industry, and shippers will choose to do business with companies that can match their product with installation services that meet the COA standard. Leaks and bulges BeFlexi believes that COA compliance will give the market more confidence in its product. When installed through the SGS network, said Chizhevskiy, BeFlexi has “basically zero leakage statistics”. Ad- dressing the other major concern about flexitanks – that they cause bulging of the container walls – is, however, a more problematic issue. Chizhevskiy acknowledged that the container inspection process is not per- fect, and “sometimes not even a visual inspection can 100% guarantee that there will be no bulging”. When it happens, the correct procedure is to tranship the cargo into another flexitank and container, a process, he adds, that does not take much time if personnel are trained. Rejecting containers also requires an element of commercial discipline, as the issue of who pays to return a rejected container has to be addressed. At the moment, the market for flexi- tanks is difficult, reflecting the downturn in shipping and trade in general. There are, however, some bright spots, and Chizhevs-

October 2016 35 INTERMODAL

Volume of cargo that potentially can be shifted from truck to inland waterways Antwerp/Rotterdam - Middle Danube 70,840,054 Harnessing hidden potential Antwerp/Rotterdam - Czech Republic* 31,599,014 Koblenz/Rotterdam - Moselle 27,053,125 here is little doubt that European Antwerp/Rotterdam - Poland 12,318,482 waterways are not fulfilling their A raft of EU/national government Rhone - Saone Bassin 16,049,483 Tpotential and that considerably measures and private sector initiatives Antwerp/Rotterdam - Basel** 14,645,963 more freight could be moved by inland Antwerp/Rotterdam - Neckar 13,102,238 vessels and barges on rivers, such as the aims to address the underutilisation of North-West France - Ruhr Area 25,883,996 Danube, Elbe, Seine and Rhone-Soane. Ruhr Area - Bremen 6,213,355 Even the Rhine can be used to move Europe’s inland waterways Antwerp - Rotterdam - Northern Netherlands 5,506,347 Middle Danube - Lower Danube 2,844,048 substantially more cargo than its current Ruhr Area - Northern Netherlands 2,722,914 tonnage of approximately 330 Mtpa, in- achieve traffic growth on the waterway governed, efficient, safe, integrated into Ruhr Area - Hamburg 2,086,098 cluding over 15.4 Mt (over 3M TEU) of and provide the framework for cargo to the intermodal chain, with quality jobs Po River 2,052,215 containerised cargo. In all, the Rhine is shift from other transport modes. The occupied by a skilled workforce, and ad- Seine River Bassin 1,671,564 believed to account for about 60% of all five-year plan puts in place a number hering to high environmental standards”. Notes: All statistics in tonnes. *Including Saale stretch to Halle, 6,705,086t. **Excluding cargo (550 Mt) moved by inland water- of ecological, social and economic pro- Research demonstrates that there is transit from other regions through Antwerp and Rotterdam; including this transit, the way in the European Union. For contain- grammes that it believes will support the huge potential for Europe’s inland wa- total potential would be 67,587,370t. Source: Panteia; Platina 2; D 1.6; 2015, quoted in er traffic, the river is even more dominant. sustainable development of the water- terways and ports. In an analysis of truck EU report D 1.9 “Inland waterway market transfer roadmap” 6 April 2016 The Danube is hugely underutilised, way. However, given the difficult trading journeys of more than 150 km between with only about 38 Mt of cargo trans- conditions that currently persist and the regions connected by inland waterways River navigation is never easy, though, vices. Knopf stressed the significance ported on the artery in 2015. In H2 2015, poor state of the EU economy, Vision or within 100 km of an inland waterway with rising and falling water levels often of the group’s ownership of barges (12 traffic volumes declined as a consequence 2018 is not ignoring the fiscal challenges network, over 261 Mt of cargo could po- causing considerable disruption. units in the 204 to 336 TEU size range), of generally low water levels, which involved. tentially be containerised and moved by The past few months have seen several train connections and trimodal termi- meant vessels/barges could not be fully At the European Commission level, a inland river vessel and/or barge (see ta- new services started, quite often in joint nals, which include CSA Andernach and loaded on various stretches of the river. new action plan has been launched for ble). It could be worth over 26M TEU a ventures, as individual transport compa- ETK Kehl. the region’s inland waterways. Branded year of additional traffic to the network. nies have looked at: “We have built sites at strategic points, Five-year plan “Naiades II - Towards quality inland wa- Huge schemes are afoot including Extending the number of ports served. in order to support customers directly A key part of the Central Commis- terway transport”, its aim is to “create the more than €1B plan to build a canal Deploying bigger barges. and to keep land routes as short as possi- sion for the Navigation of the Rhine’s the proper framework and conditions for linking the Seine with the Scheldt – due Reducing their impact on the envi- ble,” he said. “We also offer seamless and (CCNR) Vision 2018 strategy is to inland waterways transport to be well- to be completed in 2019/20. ronment. single-source administration and proce- Offering their customers greater choice. dures, which keeps everything simple for On 1 July, H&S Container Line, the customer.” Danser Containerline and Ultra-Brag Contargo, which is one of the largest Duisburg looks to smooth traffic flows started a new operation linking Antwerp companies engaged in the river Rhine In 2015, the port of Duisburg handled gistics facilities. The first warehouse, tions in Europe and Asia, the port of- and Rotterdam with upper Rhine ports, barge and freight logistics sectors, with about 129 Mt of cargo, including a re- which features about 23,000 m2 of fers NGK an ideal starting position to including Basel, Weil, Ottmarsheim, cargo volumes in excess of 2.3M TEU a cord 3.6M TEU. The latter was up al- space, will be leased to automotive supply vehicle manufacturers and the Neubreisach, Strasbourg and Kehl. Ad- year, continues to expand its operations. most 6% on the previous year, although parts supplier NGK Spark Plug Eu- after-sales market all over Europe.” ditionally, the group offers a faster rail Its network includes 25 terminals capa- total tonnage declined by 1.5%. rope, and the second, smaller 10,500 Staake also believes in innovative link between Kehl and Strasbourg and ble of handling containers at locations The port now has eight terminals that m2 unit is unassigned at the moment. ideas and the use of new technologies. the Benelux ports of Rotterdam, Ant- throughout Belgium, the Netherlands, are able to handle containers, and a mul- “We are pleased to have attracted For the past 18 months, the port and werp and Zeebrugge. Germany, France, Switzerland and the titude of freight processing and logistics another strong company from the au- Siemens have been collaborating on “Our primary aim is to achieve a bet- Czech Republic. centres that companies are keen to use, tomotive industry,” said Erich Staake, the use of intelligent traffic manage- ter concentration of volumes of traf- given the port’s extensive road (direct chairman of the Board of Duisburger ment systems as a means of preventing fic on the Upper Rhine and optimise Rail enhancements links on the A40 and A59 motorways), Hafen AG. “Our full service approach, congestion and providing truckers with calls at the seaports,” explained Thomas The focus this year has been on enhanc- rail and inland waterway connections. in combination with transport net- the quickest and easiest routes into/out Knopf, CEO of partner Ultra-Brag. “It ing its rail activities, its services to/from Recently, the Goodman Group, works that are perfectly coordinated of the port. allows all three of us to improve our ser- upper Rhine ports and on the French which is one of the world’s larg- for the flow of goods, has, once again, “Our strategic cooperation with vices and to achieve greater levels of ef- river system. est owners, developers and managers demonstrated how attractive Duis- Siemens provides us with an oppor- ficiency.” A new company called Contargo Rail of industrial real estate, announced burg’s logistics hub is. With 400 trains tunity to eliminate future bottlenecks Basel-based Ultra-Brag is a fully verti- Services (CRS) has been set up, with its plans to spend €28M on two new lo- per week to over 80 direct destina- and create new capacities,” said Staake. cally integrated company, when it comes headquarters in Mannheim. to its Rhine waterway and logistics ser- Andreas Mager, who co-manages

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36 October 2016 INTERMODAL

CRS with Michael Lückenbach, a veter- 400,000 TEU a year (see p38-39). operator to offer transhipment activities. multi-national Danube river systems. In grading their berths and dredging along- an of Europe’s rail freight industry who At the Belgian port of Liège, which is Nicolas Limbioul, general manager all cases, considerable sums of money are side depths so that larger vessels can be used to work for the Deutsche Bahn located on the river Meuse, the focus is of LCT, explained that the catalyst for being committed to improving naviga- handled. Plans are also afoot to substan- group, explained: “We want to make the on adding new equipment as a means of its growth had been the port’s strategic tion, improving wharves and cargo han- tially raise their container traffic and to as- new company an efficient operator in handling its rising cargo volumes more location between southern Belgium, dling facilities, and transforming some of sist in the development of the inland river multimodal combined road/rail trans- efficiently. This year has seen Terex Port northern France, western Germany and the larger ports into fully fledged logis- network for all types of cargo. In particu- port, and to expand the range of services Solutions deliver a diesel-electric Got- the North Sea ports of Rotterdam, Ant- tics and trimodal transport centres. lar, opportunities exist in using barges to we offer to/from third party terminals.” twald Model 2 MHC and a Terex Stack- werp and Zeebrugge, and its range of move containerised cargo to/from Ger- Since September, the Dutch group ace empty handling unit to Liège Con- trimodal facilities. Polish artery man cities such as Berlin and Brandenburg. has been scheduling three additional rail tainer Terminal (LCT). While the MHC “In the past year, our volumes have Elsewhere too, projects are underway, “The Szczecin-Świnoujście port services a week between Rotterdam and has a maximum lifting capacity of 80t, increased to 40,000 TEU, and, since we and the decision of the Szczecin and complex is the only one in Poland to the upper Rhine ports of Basel and Weil the empty container handling machine are anticipating as many as 70,000 TEU Świnoujście Seaports Authority (SSSA) have access to an inland waterway net- am Rhein. can reach one container over six. on the waterway and 45,000 TEU by to join the European Federation of In- work, and, as this is regarded by the “This expansion makes us more flex- Both pieces of equipment offer rail for 2016, we decided to order new land Ports (EFIP), suggests that Poland’s European Union as the most environ- ible, and enables us to meet the needs LCT additional operating flexibility. handling equipment,” he said. “This new river Oder could become a more im- ment-friendly form of transport, this is of our customers even more effectively,” The MHC’s higher lifting capacity and investment will put us in a good position portant freight artery. The two ports are an undeniable asset for us,” explained said Holger Bochow, managing director longer outreach, compared with the to meet our long-term challenges.” among the largest in the Baltic region, Dariusz Słaboszewski, CEO of SSSA. of Contargo AG Basel. “We now run six facility’s existing gantry crane, for in- Outside of the Rhine waterway, op- handling mainly dry bulk, general cargo, “We hope that as a member of EFIP we times a week by rail to Rotterdam and stance, allows containers to be switched portunities are opening up, especially such as forest products and steel, ro-ro can better promote the huge potential of three to Antwerp.” between adjacently moored barges/in- on the Seine and Rhone Soane rivers and agri-commodities. the shipping capacity of the Oder River The company has also expanded con- land waterway vessels, thus enabling the in France, the Elbe in Germany and the Both ports are investing heavily in up- which is going to be improved as well.” v tainer handling capacities at several ports, including Frankfurt Osthafen. Several grain silos have been demolished, and an additional 6,000 m2 of storage space has been created for containers. In general, port authorities, steve- dores and terminal managers active on the Rhine have strong investment pro- grammes in place, as they seek to: Modernise their facilities. Raise productivity levels. Ensure they have the right equipment and capacity in place for the market’s changing cargo mixes and customers’ requirements. Meet increasingly tougher environmen- tal regulations being imposed by the EU. Enhance their connectivity with other transport modes. Offer enhanced logistics and freight processing services. At the German port of Duisburg, the largest container handling complex on the Rhine with a throughput of close to 3.5M TEU a year, considerable efforts are being made to streamline traffic flows to/from the port (see box story, p36) The huge Gateway Nord Basel tri- modal port project, in which the part- ners have just submitted their funding application, is also about improving connectivity, particularly for cargo moving north/south via the Rhine waterway and Mediterranean ports. At full build-out, the facility will be capable of processing approximately Contargo goes for third tier Earlier this year, Contargo increased the carrying capacity of its river Es- caut (northern France)/Antwerp/ Rotterdam service by loading three tiers of containers on its barge CEN- TURION. Regularly, Contargo now moves 84 TEU on the service, which calls at the Escaut Valenciennes Ter- minal at Bruay-sur-l’Escaut and the ports of Antwerp and Rotterdam. This compares with 72 TEU previ- ously when the barge was stowed with two tiers of boxes. “Whenever loading conditions and navigation conditions permit, we will use the third tier to increase our transport capacity,” explained Gilbert Bredel, managing director of Con- targo North France. “Theoretically, our barges could load up to 117 TEU per trip, or 50% more again than with the two tiers of boxes, but there is in- sufficient clearance under the lowest bridges on the river.” In addition to carrying more boxes on each voyage, the company has increased the frequency of its sail- ings with Antwerp, Rotterdam and Dunkirk, connected six, five and two times a week, respectively. The past 12 months have seen strong growth in the Escaut river trade, as an increasing number of im- porters and exporters have opted to use barge services for their shipments. Contargo’s moves not only help it ac- commodate this additional traffic, but also allow it to utilise its assets more effectively.

October 2016 37 INTERMODAL Transmontane echoes get louder uring last month’s mitted a funding application for World Port Days event Contship Italia is aiming to attract DB3 to the Swiss Federal Min- Din Rotterdam, the Port more Switzerland-Asia traffic flows istry of Transport. The problem of Rotterdam (HbR), the Port is that the federal government of Switzerland (SRH) and Ba- to the port of La Spezia and the Swiss inland shipping, sel Logistics Cluster Region intermodal and logistics sector (LRB) renewed and updated There are nine Upper Rhine levels. The new MoU goes one are sharply divided, with some their Memorandum of Under- ports. From north to south they stage further, in that it focuses preferring to see a new terminal standing (MoU), committing are Ludwighafen (D), Man- on the expansion of trimodal built just a few km downstream to increasing inland waterway nheim (D), Karlsruhe (D), Stras- infrastructure along what it de- in Weil-am-Rhein, in Germany container traffic. Associated with bourg (F), Kehl (D), Colmar/ scribes as Europe’s most impor- (WorldCargo News, August 2014, this, the MoU looks to promote Neuf-Brisach (F) and finally the tant goods traffic corridor – the p14, March 2015, p16 and July LNG and GTL (gas-to-liquids) southernmost cluster of Mul- Rotterdam-Basel-Genoa corri- 2015, p13). as a fuel for inland waterway house/Ottmarsheim (F), Weil- dor – so it now has transalpine Coming on top of GBT, the vessels and as a commodity am-Rhein (D) and Basel (CH). ambitions. cost of DB3 is a major constraint The 342 TEU dual-fuel EIGER-NORDWAND motor/push barge combination along the Rhine axis. Ben Maelissa also notes a They see the opening of for the federation. GBN’s road/ (photo: Danser Group) LNG is indeed set to become growing use of tailor-made IT the new Gotthard Base Tunnel rail infrastructure costs (subject much more important as fuel for to integrate inland container (GBT), slated for this Decem- to a previous funding applica- troduced a five days/week rail containers are imported via Italy inland waterway vessels, as it is a shipping in the entire logistical ber, as a major opportunity to tion) are estimated at CHF73M shuttle between Antwerp and rather than Rotterdam or Ant- “darling of both Rotterdam and chain and thus provide seam- channel Italian o/d cargo on the (€66.7M). The amount of the Strasbourg/Kehl. Including its werp. The volume of Swiss o/d Basel and is backed by the EU”, less linkages. A new Rotterdam Rhine axis, and recognise that DB3 funding application is not existing Rotterdam rail shut- traffic moving over Italian ports according to Ben Maelissa, man- port community registration more trimodal infrastructure is clear, but DB3 is required to tle and four weekly barge calls, is still relatively small, but it has aging director of Dutch-based system for container barges is essential if modal shift targets are have a 55m-wide entrance and Danser is serving the Strasbourg/ been growing. Rhine axis multimodal logis- being tested with SRH Basel, to be met. SRH’s planned new a 330m-long quay, allowing two Kehl area 13 times a week. GBT, which will cater for tics services specialist operator Mulhouse and Weil. Experience trimodal Gateway Basel Nord push barge combinations to Its motor/push barge com- 750m-long trains with P400 Danser Group. gained by HbR in registering (GBN), which on build-out berth at the same time. binations serving the Upper gauge, together with the Ceneri Danser Containerline’s EIGER- container traffic electronically is would have an installed capac- The Container Terminal Weil Rhine are equipped with reef- Base Tunnel (expected to open NORDWAND is claimed to be the used as input for the inland wa- ity of 390,000 TEU/year, is thus (CTW) project is backed by er plugs. This was originally to in December 2019) and ongo- world’s first retrofitted LNG- terways registration system. seen as vital. Danser and Swiss terminal op- meet the requirements of the ing rail infrastructure improve- driven container vessel. The HbR, SRH and LRB have The GBN “is a key project erators, and transport companies Swiss pharmaceuticals industry, ments in Italy (WorldCargo News, dual-fuel motor and push barge been cooperating closely for along the Rotterdam-Basel- Swissterminal and Ultra-Brag. but the system has been extend- April 2016, p18), therefore pre- combination is deployed in the 3-4 years, and have regular con- Genoa corridor”, remarked Their official line is that CTW ed to cater for cargoes that need sent Italian ports with an oppor- Rotterdam-Upper Rhine trade. tact at managerial and technical Emile Hoogsteden, HbR’s di- is not really a competitor to only intermittent cooling or less tunity, as well as a challenge. rector containers, breakbulk and GBN, but is complementary, cooling according to ambient Drewry recently reported that Capacity at La Spezia is due to be increased to 2M TEU/year by 2020 logistics, who signed the MoU, as demand in the Basel region conditions. Koper in Slovenia is a good al- along with SRH’s Hans-Peter is set to increase. In addition, ternative to Rotterdam for Mu- Hadorn and LRB’s Martin Dät- Swissterminal will have to give Southerly aspect nich/Bavaria-Asia flows. Can wyler. Hoogsteden added: “We up its operations in Basel (West- While Rotterdam wants to pull Italian ports step up to the plate depend on high-capacity termi- quai terminal) by 2029 at the more Swiss and Italian traf- for Swiss-Asian traffic? Contship nal infrastructure and highly ef- latest. GBN’s backers say that fic north, Italian ports naturally Italia (CI) is one port operator ficient cargo handling, particu- Basel’s existing capacity will be see things differently. Ports in that thinks it can. It has published larly in light of the anticipated fully utilised by 2019, and with- northern Italy are around half the results of an analysis it carried increase in container traffic.” out GBN traffic will be forced Rotterdam’s distance to Swit- out in May, comparing the port- back onto the road. zerland. Taking into account to-rail ramp cost of a 40ft dry van Crucial phase Danser accounts for around the shorter sea distance, Swiss to Basel from La Spezia with the GBN requires construction of 1M TEU/year of container traf- supermarket chain Migros es- Rotterdam-Basel cost. La Spezia, a third dock basin (DB3), and fic between Rotterdam/Ant- timates that the overall supply it claims, is 10% cheaper – Rot- the project has reached a crucial werp and Upper Rhine ports, chain saving for India-origin terdam 1.0, La Spezia 0.9. On top phase, as, in August, SRH sub- by barge and rail. It has just in- traffic is around 4,000 km if the of this, the average voyage time

38 October 2016 INTERMODAL from Shanghai to La Spezia is 28 present conditions. Once the around 18% of Rotterdam 1.0, HbR figures show that the several ULCV calls and is now rail (34%), and road 2% (11%). days, whereas for Rotterdam it is GBT is opened and, subject to which means that the THC are Rotterdam-Switzerland con- equipped to handle *18,000 The accompanying table shows 32 days. demand, longer trains are in- 3.6% lower in La Spezia, at least tainer market totalled 156,668 TEU vessels. With expansion fi- the detailed breakdown. This is a The CI analysis contains troduced, CI’s southern gate- as regards rail dispatch. TEU in 2014 (2013: 122,851 nally now possible at the Rava- natural waterways market, and it common elements for Rotter- way product “will become even In addition, Rotterdam entails TEU), of which 95,126 TEU no terminal, annual capacity will would appear that time is not of dam and La Spezia. The biggest more competitive,” says Testi. EU ‘T’ costs – the legal fee re- (79,897 TEU) southbound and be increased from 1.2M TEU to the essence as, depending on the element is rail haulage – calcu- quired to enable goods to travel 61,542 TEU (42,954 TEU) 2M TEU by 2020. number of wayports, the sailing lated to be 65% of La Spezia Double-edged in transit from the first EU port northbound. This is all-Switzer- The difficulty, however, be- time between Rotterdam and 0.9 and around 76% of Rotter- However, the GBT is a double- of entry to a different EU coun- land traffic, but is mostly moved comes more apparent when one Basel is 4-5 days downstream and dam 1.0. Both figures include edged sword. Will more Italy try (for this purpose, Switzer- over SRH installations. All-road takes into account the Rotter- 5-6 days upstream. LSCT can the cost of train formation and o/d shipping traffic drain north land is counted as an EU mem- had just a 2% market share in dam-Switzerland modal split compete with just one mode, but marshalling costs (in CI’s case to the Rhine sea ports, or will ber). However, the cost does not 2014, down dramatically from – 53% barge (2013: 56%), 45% Rotterdam competes with two. v at Milan-Melzo). Rotterdam Swiss and South German o/d apply in the case of LSCT, says 11% in 2013. sources say the average rail cost shipping traffic drain south to Testi, because CI is certified to Rotterdam-Switzerland - market size and modal split in TEU for Rotterdam-Basel is around the Ligurian/Tuscan seaboard? produce the T form “in house” Water works €400/20ft southbound and Let’s also consider that Swiss- via Hannibal, CI/Eurogate’s in- Clearly there is a sizeable market 2014 2013 2014 % €300/20ft northbound, both based rail intermodal operator termodal rail arm. This is esti- for CI to go for, and, as LSCT Northbound varying according to container Hupac, which has a power- mated to save between €20 and is a busy import/export port, Barge 28,177 23,301 45% weight. Transit time is Day A-B ful presence in Italy, is a major €50 on an EU-wide basis, so the attracting more discretionary Rail 31,993 17,833 52% each way. stakeholder in GBN, both di- Rotterdam T cost is somewhere intermodal cargo is essentially Road 1,372 1,820 3% 61,542 42,954 Daniele Testi, CI’s VP, market- rectly and through SBB Cargo. in between. very plausible. The rail share of Subtotal 100% ing, says that 10% of all imports (The other stakeholder is lead- On the other hand, there is a inland distribution over LSCT Southbound are moved out of La Spezia ing Rhine barge operator Con- “merchant haulage fee” in the has risen to 35%, and CI’s Rail Barge 54,747 45,184 58% Container Terminal (LSCT) by targo). La Spezia cost that is not in the Hub Milano (Melzo) is already Rail 38,399 23,591 40% road and rail within 24 hours Reverting to the Rotter- Rotterdam cost. Testi says that linked with Basel with six Road 1,980 11,122 2% of being discharged; if only rail dam/La Spezia comparables, the the experience of LSCT sug- weekly train pairs, although the Subtotal 95,126 79,897 100% dispatch is considered, the fig- ISPS fees are assumed by CI to gests that the charge is supposed split between Italo-Swiss loads ure is 14%. In general, he adds, be about the same for both sea to cover an element of cost that and international shipping loads Both directions 50% of imports are processed ports. Inspection fees are higher is not recovered from carrier is not known. Barge 82,924 68,486 53% 70,392 41,424 through LSCT and dispatched in La Spezia, but are still only haulage THCs. It is not possible LSCT is the most intensive- Rail 45% Road 3,352 12,942 2% within three days of unloading 4-5% of La Spezia 0.9. Inter- to generalise, but the inclusion ly utilised container terminal Grand total 156,668 122,851 100% from the vessel. estingly, the THC are given as reflects the position when the in Europe, in terms of TEU/ The rail costs are based on around 16% of La Spezia 0.9 and analysis was made in May. m2 of space. It already handles Source: Port of Rotterdam Authority Another Alpine base tunnel under way As previously reported, a new shift from rail to road. The high-capacity rail link between French rail network includes Lyon and Torino requiring the 3,000 km of branch lines linked construction of a flat 57 km to the national network and base tunnel under Mont Cenis dedicated to use by companies (Monte Cenisio) was approved with private sidings (ITE). This by the governments of France trackage amounts to 10% of and Italy in February last year. the national network by length The agreement has now been and accounts for 20% of all rail Custom-made ratified into law in Italy, and freight shipments. track work is under way on both However, these so-called for your demands sides of the tunnel. “capillary” lines are under con- The cross-border tunnel costs stant threat of closure due to are estimated at €8.6B – about their marginal economic case, the same as the Gotthard Base which has contributed strong- tunnel, which is also 57 km-long. ly to the debts of SNCF and, The costs are to be co-financed furthermore, by reason of this, by France (34%), Italy (26%) and many are in a poor state of re- the EU (40%). To date, around pair. However, closing the lines €1B has been spent on recon- will force companies to close naissance and sample bores. their ITE, costing SNCF sub- Brexit has thrown up a cloud stantial freight volume and forc- of uncertainty over the EU’s ing more traffic onto the roads. future finances, while neither In December 2014, Paris em- France nor Italy have firmed barked on a safeguard plan, as up budgets for their share of the part of the overall mission to ‘re- costs. The basis exists in both launch’ rail freight. As a first step, countries’ motorway tolls, but new committees were formed increasing them to shift traffic to to investigate the lines on a re- rail is politically risky – France gional basis, charged with work- has already had to abandon an ing out their future on the basis automated Ecotax scheme based of their specific freight profiles. on truck mileage. There are also In addition, under a new law environmental objections as the on “territorial organisation”, sample rocks have been found to stakeholders have the possibility contain asbestos and even urani- to manage the lines directly and um deposits. even take over their ownership. At the same time, there is a Their revenue threshold is lower groundswell of support for the than it is for SNCF, due to low- project, as one might expect, er train driver (non-cheminot from infrastructure and con- rates) and other costs. struction firms, utilities, steel To stimulate the plan, Paris is makers, etc, as well as trade un- injecting €30M; due to multipli- ions, and the huge employment er effects, this investment pack- opportunities will generate ma- age is worth around €100M. The jor tax revenues. In addition, on first tangible results can now be both sides of the border, TELT, seen, as around 600 km of track- the bilateral project manage- age has been modernised for ment company, is trying to get around €53M. Langh Cargo Solutions’ methods / products are protected by patents. SMEs involved in the project, in For example, the Bec order to spread the wealth. d’Ambes-Bassens line in the In July, TELT stated that pre- Bordeaux region has been liminary tunnel works will com- brought up to scratch for around Transportation units for mence in H2 2017, with the €20M, and, since July, has been main works starting in 2018. In used regularly by 10 or more in- coils, sheets, bulk and liquids all, there will be 160 km of tun- dustrial companies that collec- nel excavations – 2 x 57.5 km tively move more than 300,000 for the twin tubes and 2 km for tpa by rail. the safety crosslink tunnels at set The line is now managed by Langh Cargo Solutions | Alaskartano | FI-21500 Pikis | Finland intervals. The new link will ca- the Port of Bordeaux (GPM de +358 2 477 9400 | cargo.solutions@langh.fi ter for 750m-long freight trains Bordeaux), so, in effect, the new with P400 gauge – just like the arrangements are an important GBT – and TGV passenger extension of the previous meas- services. It has the potential to ures that devolved responsibility www.langhcargosolutions.fi transform Italo-French traffic. for rail infrastructure inside port See you at France is already taking small- property from SNCF to the er steps to prevent more modal ports themselves. Intermodal Europe 2016 @LanghFi

October 2016 39 SHIPPING

on stream, as depicted in the ac- companying graph. Maximising carrying capacity MacGregor believes the rea- ccording to Janne sons for the growing gap can be Suominen, cargo sys- MacGregor has introduced two roughly divided into two catego- Atem development man- initiatives to help close the gap ries: mechanical waste and us- ager at MacGregor, some of ability waste. the investments that lines are between a box ship’s nominal making in bigger ships are be- Mechanical waste ing wasted, due to underper- capacity and the actual number of MacGregor explained that me- formance of the cargo systems containers that can be loaded chanical waste “means that the on those very same vessels. At cargo system design and hard- a time when lines are looking loading rates is, in fact, growing. still surprised that the issue is not ware does not meet the current to lower their average slot cost, MacGregor expressed this widely appreciated or debated, requirements set by the cargoes the gap between nominal vessel view at the Navis World confer- especially as the problem is get- and routes. The system may not capacity and actual achievable ence in 2015, but the company is ting worse as larger vessels come have the flexibility required to carry the variety of container weights and sizes typical for the route”. In other words, lines are MacGregor believes that better loading capacities can be achieved, in part by still using global averages for im- converting a ship’s internal lashing to an external lashing arrangement portant aspects like maximum weight of deck containers, which as new maximum stack weights Fundamentally, however, ex- are, in many cases, based on according to the latest rules) ternal lashing does not require weather extremes in the North and/or hardware changes, such any more skill or manpower to Atlantic – even if the vessels will as switching from internal to ex- operate versus traditional (i.e. in- never be deployed there. ternal lashing. A key point is that ternal) lashing. The equipment, MacGregor is increasingly all the cargo systems must not number of pieces and their op- being involved at an early stage only be technically compatible, eration is very similar. in the shipbuilding process, in they should work together in an Of more concern for terminal developing a “cargo and route- optimal way. This includes the operators is the trend to try and specific analysis” for new vessels, lashing software, and MacGregor close the gap between nominal which includes the design and emphasises that having software and actual vessel capacity by stack- selection of hatch covers, lashing and hardware from one single ing containers higher on deck. bridges, loose and fixed container supplier can deliver a signifi- This is not just an issue for new fittings for decks and holds, con- cantly better performance than vessels and 11-high deck stows tainer stanchions and Lashmate disparate systems. (or 10-high with high cube con- calculation software to optimise MacGregor stresses that Cargo tainers), as lines are today looking the cargo system. Boost uses data, rather than gen- to go higher on much smaller For existing ships, MacGregor eral assumptions about specific vessels, particularly after stack offers a service called Cargo routes and cargo. This includes weights have been reconsidered. Boost, where it “rethinks” the actual cargo data from BAPLIE This seems to be a point of cargo system for a specific route files and other operational data. conflict between lines and termi- and cargoes. This involves recon- The analysis presents different nals, in some cases. One terminal sidering areas including cargo options for the customer to assess manager, speaking anonymously securing manuals, calculations and review, and can be refined by to WorldCargo News, said his ter- based on route-specific rules, additional vessel data over time. minal is handling one particular stack weight limits, lashing ar- service where vessels are now rangements, mixed stowage op- Usability waste presenting with one tier more portunities, and adaptations to The second category currently on deck than previously. To get lashing bridges. reducing actual vessel capacity is over the top tier, a person must Improvements can involve re- what MacGregor calls “usability manually override a system on calculating rules and limits (such waste”. This, the company ex- the crane that limits the hoist plains, “has its origins in the use height of the spreader to pro- The gap between nominal vessel ca- of outdated cargo system prac- tect the trolley. While this can be pacity and actual loading capacity is tices or other obsolete processes done, it is time consuming, slows increasing as vessels get bigger (source: in the value chain, typically relat- the crane cycle time dramatically MacGregor) ing to a lack of collaboration and and, on occasion, has resulted in transparency or unusable, historic the terminal missing contracted or inaccessible data”. productivity guarantees. Through its Productivity Care When this happens, he stressed, programme, MacGregor address- the terminal cannot deliver the es usability waste by examining performance that is built into the the whole planning process, in- carrier’s own planning process. cluding loading and unloading The consequences, such as late and the “overall utilisation of the sailing or rolled containers, are cargo system”. This initiative ties ultimately not in the carrier or in with the XVELA service that the shipper’s best interest. What is being managed by Navis, an- is particularly frustrating is that other Cargotec company, which some of the need to hoist con- is developing a cloud-based plat- tainers over the high stacks could form for vessel planning, with be eliminated at the vessel plan- the ultimate goal of improving ning stage, he considers. efficiency through collaborative Paukku said MacGregor’s Pro- planning using a single data set. ductivity Care programme can consider terminal limitations Impact on ports when it knows a vessel’s planned Many of the factors identified by route. There does not appear, MacGregor have an impact on however, to be a lot of collabo- ports and port planning processes. ration in this area. Paukku said Henri Paukku, operation support that while MacGregor has a “fair manager in MacGregor’s Cargo understanding” of air draught Handling division, said some limitations, terminals are actually of the mechanical changes that reluctant to give this information Cargo Boost might recommend, out directly, and calculations have such as switching from an inter- to be made from observing ves- nal to an external lashing system, sel call data. He added that crane require that terminals familiarise height issues are quite fluid at the themselves with the new lash- moment, with crane raising pro- ing system and the specific in- jects currently underway in many structions on board the vessel. terminals. v Cargo Boost case study A recent MacGregor Cargo vessels were slightly modified Boost project on board three by installing lashing bridge vessels has delivered an addi- extensions (known as mouse tional payload capacity of 300 ears), behind the accommoda- high cube FEU (670 TEU) per tion block, in areas where there vessel and improved operation- were no visibility restrictions. al flexibility. Capacity was recalculated us- This was achieved by con- ing route-specific rules, and verting the internal lashings MacGregor’s Lashmate lashing to an external lashing arrange- calculation software was used ment, which delivered a much to maximise the vessels’ cargo better loading profile. The system utilisation capacity.

40 October 2016 SHIPPING A melting pot for carriers ince the global financial crisis of 2008/9 and with generally weak The intra-European general cargo sector Sperformances in the eurozone is hugely complex, where ocean carriers economies, intra-European general cargo volumes have increased relatively with very different business strategies and slowly, particularly within the northern European sector of the market. ship types vie for market share For the region as a whole, which in- of Seatruck, deployment of the more stead of a lift,” he said. “For drivers, cludes the faster-growing Mediterrane- powerful vessel offers the compa- the single berth cabins and comfort- an basin, cargo volumes have risen from ny many operational benefits, and able lounge area will be appreciated.” Eimskip has forged a strategic alliance with Greenland-based Royal Arctic Line about 6M TEU in 2011 to 6.8M TEU its customers a range of service im- Eagles is convinced that the larger ves- in 2015, a five-year rise of just over 13%. provements, including faster transit sel will attract more cargo, and that the is more efficient for the operators and accompanied basis, but the market is Last year, the market was extremely slug- times and better schedule reliability. timing of the move is important, given makes better use of their HGV drivers, shifting significantly.” gish and, while the first seven months of “The ship also gives us greater trail- the changes that he sees taking place in which continue to be in short supply,” Seatruck, which earlier this year started 2016 have posted some sort of recovery, er free height and faster turnaround the Irish Sea freight market. he explained. “Historically, HGV freight a new service between Bristol and Dub- the 2.7% increase in volumes is extreme- times in port, as the ship benefits from “We specialise in the shipment of to Ireland has predominantly moved lin, appears to be taking the right deci- ly modest (see table, p43). a ramp interface to the lower hold in- unaccompanied freight trailers, which through Scotland or Wales on a driver sions, with Eagles referring to its cargo Following the cargo The Irish Sea trades have performed better, with recent data published by the Irish Maritime Development Of- fice (IMDO) showing robust quarter- on-quarter performances for both lo-lo container and ro-ro cargo ships for more than four years. IMDO’s Q2 2016 figures revealed Our triple M approach that, while ro-ro cargo to/from Eire grew by 7%, containerised traffic rose by 4% to 178,183 TEU. By also taking into account the trades linking Northern Ireland, IMDO’s data revealed that ro-ro traffic was up 8% in the second quarter of 2016, and lo-lo traffic by 2%. Both lo-lo containership and ro-ro operators have responded to the improv- ing market conditions by adding capac- ity. One of the latest carriers to do this has been Heysham-based Seatruck Fer- ries, which has replaced the smaller and slower vessel CLIPPER RANGER with CLIP- PER POINT (105 trailers). It adds 25,000 trailer spaces a year to the carrier’s oper- ation between England’s northwest port of Heysham and Dublin. According to Alistair Eagles, CEO Brexit fears Most traders involved in the intra- European freight markets believe it is too early to make a call on what the impact of the UK’s departure from the European Union will be on trad- ing volumes. However, the majority of service providers and cargo own- Mobilisations across 8000 nm, ers contacted by WorldCargo News see some fall-off in cargo volumes, the scale of which will be determined Modifications of span of 12 m, by the deal negotiated with the other members of the EU after the UK trig- gers Article 50 of the Lisbon Treaty. Modernisations of drive & PLC, An earlier statement issued by Mae- rsk Line summed up most executives’ feelings. It read: “Maersk has business and 8 months later, 2 QCs stand fully operational in the UK to attend to, regardless of the outcome of the referendum. Hav- at our Béjaïa Mediterranean Terminal, Algeria ing said that, we would consider it a loss to both Europe and the UK, should the UK decide to leave the EU, as it would reduce the size of the internal market and, over time, make trading more complicated. This would be a disadvantage to EU and UK growth opportunities and ambitions.” Eva Rademaker-de Leeuw, Sam- skip’s manager for marketing and communications, referred to the considerable uncertainty about the whole Brexit affair. “While we ex- pect that the transport industry will be affected by the UK’s decision to leave the EU, we are still unsure to what degree this will be,” she said. “Right after the referendum, we did Since 1988, our engineering team has been working with the world’s ports of call to match their everyday notice that some of our UK business partners put contract discussions on needs with our customised solutions. Our full spectrum of port equipment competencies include the hold, awaiting further actions from UK Government. For instance, we Mobilisation, Modification and Modernisation of cranes - also known as our triple M approach. Come speak are very strong in transporting build- to us about how we can work with you in maximising throughput and accelerating growth! ing materials from the Continent into the UK using our flatrack equipment, specifically designed for this industry, and it remains to be seen whether the UK will continue to source these materials abroad, or whether they will be sourced locally.” www.portek.com But she confirmed that, since the referendum and up to the end of A Mitsui & Co., Ltd. Subsidiary September, Samskip’s trade with the UK “remained strong”.

October 2016 41 SHIPPING

volumes this year as growing at nificant growth opportuni- carrier to expand its operations ers, they tend to be more flex- three times the rate of the market. ties in the future. This appears and offer a wider range of what ible and are definitely cheaper. Multimodal ro-ro In addition to the relatively to have strengthened since the it refers to as value-added logis- Above all, it is reliability that is To dovetail with its new and embourg’s CFL Multimodal. sluggish growth in the market, UK voted on 23 June to leave tics services. One of its goals is to the most important factor, and larger vessels acquisition pro- A spokesperson for CLdN there have been notable opera- the EU. Brexit, it seems, could improve its services to Europe’s lo-lo services have improved and gramme, coupled with the commented: “This new rail link tional challenges too. The impo- result in southern British ports car manufacturing industry. can offer highly effective just- enhancement and expansion is a very positive development sition of the Sulphur Emissions having less of a pull when it Moreover, recent weeks have in-time solutions in the shortsea of terminal facilities, CLdN for the port of Zeebrugge, Control Area (SECA) in the comes to future cargo flows seen CLdN start a new inter- sector. Furthermore, the use of RoRo is set to offer new in- adding another strong hinter- Baltic, North Sea and English and the UK’s reduced reliance modal service via its hub in Zee- 45ft pallet-wide containers has termodal services, starting with land connection to its existing Channel sectors on 1 January on Europe as a trading partner. brugge to Lyon (see box story meant similar payloads can be a Zeebrugge-Lyon connection. service network, allowing the 2015 means carriers have to use below), and significantly upgrade moved as in trailers (see page 25). In its first phase, as part of a port’s customers and operators bunkers with only 0.1% sulphur Investment decisions its operation between northern Samskip thinks containers will larger and ambitious intermod- to move their units in a fast and content. This has raised their This potential structural change Europe and Iberia. A third ro- also increase their share of the al strategy, CLdN RoRo will efficient way. In parallel, CLdN voyage costs considerably. and the fact that competition ro vessel has been added to its market, because they are truly launch a direct rail service from is also actively exploring fur- The migrant crisis of the past with lo-lo container operators is Iberian network, and this has multimodal and can be better in- its terminal on Brittanniadok ther opportunities, in order to two years has also had a signifi- more intense in the North Sea allowed the carrier to also call tegrated into more environmen- in Zeebrugge to Port Edouard extend its intermodal services cant impact on costs and ser- than in the English Channel is at the northern Spanish port of tally friendly intermodal service Herriot in Lyon. in the near future. vice levels, with the reliability of affecting several ro-ro carriers’ Santander. It means that CLdN offerings, which fit more neatly The initiative reflects the “Both the terminals in Zee- many through-transport opera- investment decisions. In addition, is now offering two sailings a with the EU’s transport policies. market’s demand for environ- brugge and Lyon have modern tions severely affected, as some there is a general requirement for week between Rotterdam and Eva Rademaker-de Leeuw, mental, cost-efficient and reli- rail infrastructure, operated emergency border checks have carriers to replace ageing fleets Santander, and three sailings a manager of marketing and com- able hinterland services, says by dedicated and experienced been introduced. This year, for with more cost-effective ships, week to/from Leixões, up from munications at Samskip, ex- CLdN, and, at the same time, staff. In addition, IT systems instance, saw Austria impose ad- purpose-built for operating in two sailings a week previously. plained: “We have noticed that CLdN enhances its own efforts will be enhanced to offer our ditional security checks along its the SECA areas. CLdN is one of the biggest ro- in recent years, more and more to help customers reduce their customers an integrated ‘one- eastern border. The clear trend is to order ro operators in the trade, moving clients are seriously consider- road miles, with the benefit of stop-shop’ booking [combining Any further escalation of the bigger tonnage, and the first to in excess of 1M trailers and 1M ing converting their freight from higher load limits (up to 44t ferry and rail] from/to any of migrant crisis that could lead to commit has been Luxembourg- vehicles a year. trailers to containers, and we ex- all-up for the road leg of inter- our terminals.” the abolition of the EU’s Schen- based CLdN RoRo SA, part Meanwhile, Copenhagen- pect container and multimodal modal trunk haul) and attrac- Southbound departures will gen Agreement or the imposition of Cobelfret. The group has or- based DFDS has ordered two shortsea transport services to be- tive lead times. be on Tuesday, Thursday and of controls on free-border move- dered two ships with 8,000 lane ro-ro vessels of 6,700 lane metres come increasingly important. Initially, CLdN will provide Saturday mornings, and north- ments would be catastrophic for metres from Hyundai Heavy (450 trailers) capacity, with op- “We see a major driver of this a 630m long (100 TEU) train bound departures on Wednes- the freight industry and intra- Industries in South Korea, and tions for four more, from Chi- conversion being the European on a three pairs/week basis day and Friday mornings and European trade in general. two ships of a slightly smaller nese shipyard CSC Jinling. The Commission’s white paper Road- between Zeebrugge and Lyon, Saturday afternoons. Transit To date, it has been users of ro- 5,400 lane metres from the Ul- ships, which will feature scrub- map to a Single, European Transport and vice versa. Trailing weight time is 22 hours in each direc- ro vessels and rail services through janik Shipyard in Croatia. The bers for removing sulphur from Area, published in 2011. It shows capability is 1,800t, and the ser- tion. The service is expected to the Channel Tunnel that have latter deal includes four units of emissions and modern ballast that the EU wants to create a vices will cater for trailers, swap start at the end of October. been worst affected by this issue a similar design. The first of the water treatment systems, repre- single European Transport Area bodies, swap tanks and 20ft- Zeebrugge is a key hub for and, to some degree, by traffic carrier’s new vessels will be de- sent an investment of approxi- and dramatically reduce Europe’s 45ft containers including tank CLdN, with links to Leixões, congestion, too, particularly dur- livered towards the end of 2017. mately DKR1B (US$146M) on dependence on oil. The key goal containers. It is not clear at this Santander, Dublin, Killinghol- ing holiday periods. The resultant CLdN’s terminal arm, which the part of the Danish company. is to have established a 30% shift juncture if slots are available to me Humber, Purfleet London, long queues in both France and includes ownership of the port of medium distance passenger the UK have caused widespread of Killingholme in the UK, will Trailers to containers and freight journeys from road to other logistic service providers. Esbjerg, Hirtshals and Gothen- € The rail service partner is Lux- burg. disruption and led to some car- invest in excess of 100M in in- The problems encountered in the rail and waterborne transport by riers diverting cargo to ships de- frastructure and equipment to ac- English Channel have also result- 2030, further increasing to 50% CLdN is to offer a rail link between Zeebrugge and Lyon (pictured) ployed on other corridors. Ports commodate the new series of ships. ed in some cargo owners switch- by 2050.” in Humberside, such as Imming- CLdN describes its new vessels ing their business from trailers However, it is not all plain sail- ham and Killingholme, and fur- as “game changers”, given their to containers, although Europe- ing for shortsea container special- ther north appear to have benefit- highly innovative and flexible wide this is a trend that has been ists. They often face stiff competi- ed the most from these decisions. deck designs, which allow a full taking place for several years. tion from their mainline/deepsea Interestingly, there are ro-ro range of trailers, containers, high While container services are (MLOs) counterparts, which operators that believe long- and heavy cargoes, cars, vans and slower than ro-ro operations, load cargo on an opportunistic er northern routes will prove trucks to be loaded. In particu- especially those where driv- and selective basis between Eu- more popular and provide sig- lar, the new ships will enable the ers accompany the freight trail- ropean ports, as a way of boosting

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42 October 2016 SHIPPING their load factors. Their actions are par- The seven ships, which will be pow- companies increasing their share of the Intra-European container trades (2011-16) ticularly noticeable on the longer-dis- ered by marine gas oil, will be delivered project cargo market.” Year Volumes (TEU) Change Price index Change tance corridors, such as those between between April and November, and will Elsewhere, the intra-European trading 2011 5,959,700 - 77.6 - Scandinavia and Iberia, the Continent replace tonnage half their size or less, specialist Containerships is also mod- 2012 6,010,300 0.8% 84.3 8.6% and Italy and/or the UK to Turkey. giving Seago significantly improved op- ernising and expanding its fleet. Despite 2013 6,263,900 4.2% 82 -2.7% It is also important to distinguish be- erating economies of scale. some significant fiscal challenges in the 2014 6,734,400 7.5% 79.1 -3.5% tween those ocean carriers whose main past couple of years, and a decision to 2015 6,764,200 0.4% 71 -10.2% business is intra-regional cargo and those Eyeing breakbulk change the shipyard contracted to build that rely on feeder boxes from MLOs. Seago believes that containerships will its pioneering dual-fuel LNG-propelled Jan-Aug 2015 4,504,600 - 70.9 - The relationships have become increas- continue to increase their share of the tonnage, the recently publicly listed Jan-Aug 2016 4,627,000 2.7% 66.6 -6.1% ingly blurred in recent years, as tradi- intra-European trades, especially at the company expects to take delivery of the Source: Container Trades Statistics tional common-user feeder companies, expense of breakbulk services and par- first four units in a series of six ships in such as Unifeeder and Team Lines, now ticularly in the Scandinavia/Baltic Sea 2018. intense competition has meant that rates with the rate of decline posted last year carry cargo from both camps. Only X- region. “Our general advantage is that Each vessel will be able to load 1,400 in the intra-European trades are among the steepest of all (see table above). Press Container Line is wholly commit- we provide stable and reliable services on TEU, but could accommodate a full the most competitive in the world, and The situation emphasises the need for ted to common-user feeder operations fixed schedules, and this gives us a lower complement of 639 x 45ft containers if they have been falling in most years since carriers to be vigilant on their costs but, and carries no local cargo. cost base in general,” said a spokesperson required. The new ships will be owned 2011. According to Container Trade Sta- at the same time, proactive and innova- By contrast, the Iceland-domiciled for Seago. “We do not believe that the by GNS Shipping/Nordic Hamburg, tistics’ pricing index, which is calculated tive when it comes to investing in assets carriers Samskip and Eimskip, which conversion from traditional breakbulk and Arkon Shipping will be the com- on the basis of average rates recorded in and services. The European trades will compete aggressively with each other, carriers to container shipping lines has mercial manager and charter broker. the trade in 2008, a continuous slide in remain a melting pot, full of challenges are focused on European imports and stopped, and we see, for example, liner The varied operating strategies and freight rates has taken place since 2012, for the foreseeable future. v exports, reefer cargoes and the provision of value-added logistics services. Their networks have been progressively ex- panded through a mix of organic growth and mergers/acquisitions, and this year has been no different. While Samskip has strengthened its operations in Norway by acquiring Euro Container Line and the reefer ship and cold chain logistics specialist Silver Sea (previously Silver Green), Eimskip has forged a strategic alliance with Green- land-based Royal Arctic Line and an- nounced the purchase of a 90% interest in Rotterdam-based Extraco Interna- tionale Expeditie. The latter deal will boost Eimskip’s share of the reefer logis- tics market in the Netherlands. Extraco provides transport services to importers of chilled and frozen products in the Netherlands, and also offers im- port services, including handling, ware- housing, customs brokerage, and distri- bution for bulk, chilled and frozen goods in the region. Seago and Maersk Seago Line is something of a hybrid, as the Copenhagen-headquartered op- erator was established in 2011 with the specific objective of running Mae- rsk Line’s intra-European services and its affiliates’ feeder links in the region. While Seago still moves the bulk of Maersk’s European relay vol- umes, it has to compete for this cargo. In starting new services, Seago has to carefully evaluate the benefits that will accrue to each sector of its business, as conflicts of interest can arise and/or customers’ demands can easily be com- promised, given the different operating www.italgru.com disciplines of running feeder and local cargo services. The provision of dedicated (or at least streamlined) shuttle loops is the most straightforward way of dealing with these challenges. This approach was per- fectly illustrated by the launch of the Algeciras, Dublin and Liverpool service earlier this year. First, the use of the Spanish port as a relay hub, rather than Rotterdam, has improved Maersk’s transit times for Irish imports from/exports to Asia. Second, by using Algeciras as a hub, it has meant Sea- go providing its Irish customers trading with North Africa and the Mediterrane- an basin, in particular, with much quick- er transits and more reliable connections. Brian Godsafe, managing director of Maersk Line UK & Ireland, said: “This development represents a major change for our Irish customers, who will now re- ceive a faster and direct call service to bet- ter meet their import and export needs.” Robert Clegg, general manager for UK & Ireland at Seago, was equally en- thusiastic about the new operation and the opportunities it would give the car- rier. “This service means we are well placed to serve customers looking for new opportunities through a Mediterra- nean connection, thanks to our compet- itive transit times and convenient berth- ing windows. We are also able to offer our customers in Liverpool’s hinterland ITALGRU S.r.l access to south European and north Af- Strada Statale Briantea rican markets.” Our production includes a wide range of mobile Seago is actively investing in its net- 4 – 24030 AMBIVERE (BG) - ITALY work, and a series of 3,600 TEU ships harbour cranes with a lifting capacity from Tel. +39 035 4932411 - Fax. +39 035 4932409 ordered by sister company Maersk Line 25 t to 160 t. email: [email protected] in 2015 from the Cosco Shipyard Co in Zhoushan, China, are scheduled to enter the carrier’s North Sea and Bal- tic Sea regional operations next year.

October 2016 43 PORT DEVELOPMENT Oversupply in the Americas here was not a lot of Port capacity is too far ahead of good news for the port Tsector at the TOC Amer- economic growth and landside icas conference in Cancun this month. The conference kicked infrastructure in several Latin and off with Mario Cordero, chair- man of the US Federal Maritime South American countries Commission, talking up the po- as the automotive industry, the security situation also weighs tential of intra-American trade as engine of Mexico’s economic heavily on shippers. being transformational for coun- growth, continues to expand, but Other speakers mentioned a tries, and creating opportunities most of the business is ro-ro traf- shortage of truck capacity across Charles Baker of TC Mariel SA, TOC Americas delegates heard that several new Latin and South American for ports such as Mobile, Ala- fic. On the container side, Veraldo the industry, and alluded to the speaking at TOC Americas port facilities, such as TecPlata in Buenos Aires, were “idle” bama, to become new hubs for urged Mexico to diversify its mar- situation being potentially about north/south trades. kets, grow its reefer exports and to get worse if double trailers are coming on stream when that fig- gena (SPRC) also said Latin and month, there were a few days However, speakers from the position itself as a “regional hub”. banned in Mexico (see “Mexico ure has fallen to 1% or lower. South America have too many that saw four vessel transits, but Latin American ports sector in To achieve this, Mexico needs considers trailer ban”, p18). Ju- He was particularly critical of “idle” terminals currently. He on most days it has been two or particular, were far more pessi- better road and rail links to ex- lian Palacio, director general at terminals built to compete in al- singled out facilities at La Unión three transits,” he said. mistic, and the consistent theme isting production areas, many trade association Latinports, said ready well-established port areas, (Colombia), Ponce (Puerto “There is still a lot of room,” he to emerge was slowing growth of which are not located near logistics costs in Latin America and singled Tuxpan (Mexico), Rico), TecPlata in Buenos Aires continued, adding that this means versus growing capacity. Mario the coast. Keynote speaker Pe- range between 16% and 25% of Barranquilla (Colombia), Posorja (Argentina), Barranquilla (Co- it is unlikely the ACP would in- Veraldo, Maersk Line’s MD for dro Bermúdez, director general GDP, compared to the 9% aver- (Ecuador) and new terminals in lombia), and Tuxpan (Mexico) crease transit fees in the short term. Mexico and Middle Americas, of merchant marine at Mexico’s age for OECD countries. Santos (Brazil) and Buenos Aires as among those not handling any The larger locks have, indeed, said container traffic across Mex- Secretariat of Communications (Argentina) as developments that container business. led to Panama winning back ico’s ports grew by just 1.4% in and Transport, said the govern- Too many terminals will end up cannibalising an es- Ponce, for example, opened considerable volumes from Suez H1 2016, and the forecast for the ment is working to build better Palacio criticised the increasing tablished market and creating its Port of the Americas in 2014, – but this increase in volume is full year is 2%, just as new termi- corridors between its ports and number of “white elephant” ports “favela” terminals in the process. primarily as a transhipment facil- being carried on fewer ships. nals in Tuxpan and Lázaro Card- the industrial areas that generate in Latin America. Many, he added, Giovanni Benedetti, com- ity, but, with just two STS cranes Hernan Salazar, MSC’s west coast enas are coming on stream. 70% of its GDP, but this is not were planned when throughput mercial director at Sociedad and all the restrictions of operat- South America planning man- This clearly surprised some, going to happen overnight. The growth was over 10%, but are Portuaria Regional de Carta- ing under the Jones Act, the facil- ager, told delegates that, prior ity was not able to compete for to the expansion, there were 16 transhipment business. weekly service strings through La Unión in Colombia is an- the Panama Canal, which has other case of a terminal that does subsequently been reduced to 13. not suit the needs of the market. MSC itself has reduced the Its 340m container berth and number of its vessels transiting 35-ha yard were built at a cost of the waterway from 18 per week US$200M, and opened in 2010. to nine, while the average size of The project was financed by the vessels transiting has increased Japanese Bank for International to 6,400 TEU. “And that will Cooperation and the govern- continue to increase,” he said. ment, and was intended to be a “There has been a 13% increase hub port for Central America. in capacity altogether on services With a depth alongside of 15m, through Panama – there is a lot the infrastructure was built to han- of room for more.” dle a 6,500 TEU vessel, but the ter- Albert Pang, CEO Oman International Container Terminal minal has no STS cranes and just Shuffling the pack four RTGs, and its access channel With regard to changes in ser- We’re anchoring our position has suffered from a lack of main- vices and port calls in response to tenance dredging. Two attempts, the canal expansion, Dietrich said before the terminal opened, to there have been remarkably few as the gateway to the Gulf. find an operator through a con- so far. “There’s some reshuffling cession failed, and a third in of service patterns possibly still to 2015 also produced no result. take place, but the main Asia-US Benedetti said ports are “fol- East Coast, South America West lowing the carriers’ mistakes with Coast-Europe and Asia-South capacity” and have created an America East Coast services will oversupplied market. He warned likely remain as they are. against overly ambitious projects, “There is a theoretical op- and said the idea of “build it and portunity for vessel upsizing on they will come” is “gone forev- the route from Asia to northern er”. Furthermore, the market has Brazil, but that is unlikely while yet to really see much in the way the ports of northern Brazil are of terminal consolidation driven not able to handle ships of that by larger vessels making fewer size – so it won’t happen anytime port calls, as many had predicted. soon,” he said. Instead, added Benedetti, “every- With the new alliances not one is down 10%”. scheduled to start until 2017, the In today’s market, lines are transhipment picture is still very looking for infrastructure to sup- unclear. Charles Baker, direc- port bigger ships, and Benedetti tor general from TC Mariel SA said ports really need a partner to in Cuba noted that some lines justify the investment. Picking the are still calling at four different right one, however, is difficult in a Caribbean transhipment hubs. constantly changing alliance land- Decisions about where to ration- scape, and investors must be pre- alise services will not be made pared to wait longer for a return until the new alliances are ready, on their capital. Terminals also and the transhipment market is need to diversify their business “hamstrung” in the meantime, and look further into the logistics he added. Baker believes Mariel chain to find new ways of adding is well positioned to offer carri- value. At the moment, the termi- ers the opportunity to consoli- nal business is such that “there are date some existing services, but no winners, but some are losing Cuba needs to see key regulatory more than others” he concluded. changes from the US (includ- TOC Americas delegates ing addressing the 180-day rule) heard that the expanded Pan- before it can begin handling US ama Canal is not yet seeing the cargo, and relations between the number of vessels it planned for, two countries “have not come as and has not yet altered tranship- fast as was hoped”. ment patterns to any measurable Hurricane Matthew could extent, though it has been open also be a factor in changing some for less than six months. The ca- transhipment services. It tore With a newly expanded container nal authority (ACP) has created through the Caribbean early this terminal, investments of $25 billion slots for a total of 12 transits per month and extensively damaged and seamless sea-road-air access to day for container vessels, but less one of the main hubs, Hutch- the region’s largest markets, it’s no than a third of that is being used inson’s Freeport Bahamas facil- wonder so many companies choose at present, according to Matthias ity. Two cranes were blown over to start their journey in SOHAR, Dietrich, Hamburg Süd’s SVP while others suffered extensive one of the world’s fastest growing for the Caribbean and Latin water damage to electric systems Port and Freezone developments. America West Coast region. after they lost machinery and “Bookings for the neo-Pan- electrical house roofs. In late Oc- amax [up to 14,000 TEU] vessels tober the terminal was still closed have been slow to come – last and without power. v

44 October 2016 PORT DEVELOPMENT Port of Colombo’s hub plan or a long time, Sri Lanka has eyed Sri Lanka’s Colombo looks set to emerge Singapore’s success as a maritime Fhub. Consequently, Sri Lanka’s as the transhipment centre for South plan for the port of Colombo recog- nises the need to match cargo handling Asia, as the country’s government gets facilities with the services and regula- tory environment needed to support the behind plans to make the Indian Ocean business of shipping, as well as the actual island a major trading hub handling of cargo. With this in mind, Sri Lanka’s plan for draught, capacity and low productivity mindset that keeps strict government of- Last month, the 19,224 TEU MSC MAYA became the largest container ship to call at the port Colombo is to create a regional business at Indian ports. fice hours and days. of Colombo platform in the form of an offshore city Maersk Line’s Mukhi drew attention In another CIM conference session, within the city of Colombo. to these issues. Colombo is a 24-hour Dr Jonathan Beard, head of transporta- India’s problems, there were also some are some worries that its role as a tran- “We are providing the logistics hub port with “fairly good productivity”, tion and logistics at Arcadis, spelled out comments that not all of this potential shipment centre won’t last forever. “This with a financial hub for the Indian he said, unlike other facilities in the re- that the “failure to develop Mumbai in a will be fulfilled, due to a changing mar- is something that causes some concern,” Ocean, filling in the vacuum between gion, sometimes major ones, which are timely fashion [had] helped Colombo”. ket. Colombo knows that the demand said Mukhi. Singapore and Dubai,” Ranil Wickra- hobbled by an old-school bureaucratic While Colombo has benefitted from for direct services is growing, and there Also expressed were worries about the masinghe, prime minister of Sri Lanka, told delegates at the second annual Colombo International Maritime (CIM) Conference last month. Serious intentions In an important indicator of how seri- ous the government is about transform- ing Colombo into a true hub port, both the prime minister and the finance min- ister, Ravi Karunanayake, attended the conference, and both stressed the inten- tion to separate the new Port City from Sri Lanka’s existing legal and regulatory environment. The finance minister said that the new Colombo International Finance Centre, which the government is planning to build downtown, will not be Sri Lankan in how it operates. Wick- ramasinghe added: “It is going to be a financial city, with its own separate ju- risdiction. English laws will be applied.” The new Finance Centre will sup- port a very ambitious plan, presented by the Sri Lanka Ports Authority (SLPA), to transform Colombo into one of the largest hub ports in the world. Currently, capacity at Colombo stands at 7.1M TEU, and its throughput last year was 5.2M TEU. The long-term goal is to grow throughout to 35M TEU by 2040, although officials admit- ted that this is “conceptual”. Capacity will be added in phases, and the SLPA’s plan at this stage is to increase capacity to 11.1M TEU in 2020, 14.3M in 2023 and 17.3M in 2026. The first stage of development in- cludes the new East Container Terminal, on which bidding for the BOT conces- sion closed late last month. A consorti- um comprising APM Terminals, Maersk Line, John Keells Group and Container Corporation of India (Concor) is report- ed to have made a bid for the concession. Eyeing transhipment Colombo has its eyes on growing tran- shipment volume, and serving a wider range of markets, including Africa. There are a number of factors in its favour, in- cluding the fact that it is a natural deep- water port, it is able to handle ULCVs, and it has a good geographical location. In mid-September, the 19,224 TEU- capacity MSC MAYA berthed in Colombo without incident, “exactly because of this deep water”, said Zeeshan Mukhi, Maersk Line’s country manager for Sri Lanka. The ULCV called at the CICT- managed Colombo South Terminal, setting a new record for the size of a vessel calling at the port. Also helping Colombo, some 50% of global trade passes within hours of the Island, and there are 33 calls from direct westbound mainline services, as well as 29 eastbound services. A key part of this is trade from neighbour- When the right part matters. ing India, whose container traffic to Sri Lanka grew by 11% during the first six When something needs to be replaced you want the spare part IUM Q U months of this year, four times more M A E L R I than global growth. that meets your exact needs – immediately. Kalmar genuine parts P T Y “That’s phenomenal growth,” Mukhi deliver the performance and safety standards you expect. With told CIM conference delegates, to just the touch of a button you can order from over 50,000 different G E N S comparative silence. In fact, the growth U T fixed priced items, 24/7. In most cases we will dispatch your order I N R figures presented at the conference of- E PA ten seemed to come as a surprise to the on the same day so that you can minimise downtime and maximise audience, suggesting that Sri Lanka’s productivity. All because we know that your every move counts. strong performance has flown under www.kalmarglobal.com the radar for a lot of people. Indian cargo Colombo already taps the Indian mar- ket, and the SLPA plans grow this business significantly, aided by limited

October 2016 45 PORT DEVELOPMENT

low growth of Sri Lankan ex- rations for Karachi’s new South kan government is working to India’s ports and their transport ports and its future differentiation Asia Pakistan Terminal. address.“We are also talking with infrastructure holistically, rather strategy. At the moment, how- Indians and the Japanese about than as individual projects in ever, these issues seem far off, as Potential players how to develop this as a major isolation. Linking infrastructure India, even under its new more The CIM conference also cov- port,” said prime minister Wick- improves connectivity across all vigorously pro-business govern- ered the potential of two other ramasinghe. of India, something that will be ment, might take some consider- major port areas in Sri Lanka By contrast, Hambantota, lo- aided by plans for six mega-ports able time to get where Colombo that have long been talked about, cated on the island’s southern in India’s coastal states. is now. Trincomalee and Hambantota, coast, is a better known develop- Sagar Mala spans ports, their Still further behind are other both of which are staking claims ment, but it has been fraught with rail and road connections, coastal countries in the region, such as to different market segments. difficulties. The prime minister shipping and inland waterways, Bangladesh and Pakistan, which Trincomalee, situated on Sri has previously referred to it, light and connections between trans- are too far away from major Lanka’s northeast coast, has sig- heartedly, as “the biggest swim- port infrastructure and India’s shipping routes to be natural nificant natural advantages. One ming pool in the world”, because industry, making it “a very nice Volume at Colombo’s CICT grew by 33% to 902,000 TEU in the first six transhipment centres – although of the largest natural harbours there was so little traffic and be- package,” according to Vinita months of 2016 Pakistan has transhipment aspi- in the world, with a water area cause of a dispute with Chinese Venkatesh, director of Krishna- covering 400 acres, it also boasts entities over its development. patnam Port Container Terminal. very deep water, with a draught Moving forward, the port now of 20m at the inner anchorage has its first private-sector invest- Confidence and 30m at the outer anchorage. ment by LAUGFS Gas PLC, an India has seen initiatives like Geographically, Trincomalee LPG import, storage and re-ex- this in the past, but the level of www.lase.de faces a large and well-populated port firm that is developing a ter- government support this time, semi-circle covering India’s east minal at Hambantota. “Through together with what Venkatesh coast, Bangladesh, Myanmar, Ma- this terminal, we will be expect- referred to at the CIM confer- laysia and Indonesia – which to- ing US$1.3B in exporting en- ence as “a robust administrative gether have a population of 1.9B ergy,” said W. K. H. Wegapitiya, network” to monitor and ex- LASE - making life safer! people, pointed out Mahesh Ku- chairman of LAUGFS Gas. “Sri amine implementation, give her rukulasuriya, managing director Lanka will become a leading confidence in the initiative. Advanced Driver Assistance Systems of GAC Group Sri Lanka. “[That energy re-exporter and energy “Things are actually mov- is] literally 25% of the world’s hub in Asia.” Of the 45,000 ships ing forward,” she said, referring, population,” he said. passing south of Sri Lanka, some by way of an example, to the 25% are linked to trading in hy- ongoing reform of coastal ship- Prime hinterland drocarbons. ping rules and procedures (even The hinterland behind Trinco- Wegapitiya stressed that Ham- though that process is itself not a malee, which suffers from high bantota is an all-weather port, totally smooth one). unemployment, is considered a meaning it is not impacted by “At least it’s a beginning prime site for low-cost labour disruptive monsoons, and has a where the government is recog- activities in special economic draught of 19m. This allows it to nising the need to lift some of zones. However, none of these take VLGCs (very large gas car- the cabotage restrictions,” said is set up currently, and the more riers), but also means it can take Venkatesh. However, the current immediate focus is bulk tranship- ULCVs, he added. More im- issue is for the government to be ment. “Already there are a lot of portantly still, it has brand new more practical, as its most recent ...we are the eyes of your crane! enquiries about this,” Kurukulas- berthing facilities, as well as free suggestion, to give a preferred uriya told the CIM conference. port status. “This is a strategic ad- status to ports with a 50% tran- Another short-term market he vantage,” said Wegapitiya. shipment threshold, was founded LaseLCPS-3D-2D - Load Collision Prevention System 3D-2D flagged up was locally produced The prime minister is keen on an unrealistic time scale, she phosphates, while for the longer- to see facilities at Hambantota, explained. • Collision prevention between load and stack term, he suggested the port does including an airport, developed “We are still in the process of • Applicable for RMGs and RTGs have a role as a gateway for south- on a private-public partnership representing to the government ern India and as an oil and gas hub. (PPP) basis, and other potential [that] it’s a wonderful initiative, • Avoids collisions with adjacent stacks in gantry direction Le Méridien, Dubai Trincomalee has been held investors include the automotive but is not very practical,” she said. • Driver assistance Stand - B27 back up to now by a lack of industry. At a press conference Come & visit us! capital, something the Sri Lan- this month, Sri Lanka’s interna- TAMP reform • Gentle container handling through soft landings tional trade minister Sujeewa Se- The other “positive develop- • Less spreader wear and noise reduction Sri Lankan prime minister Ranil nasinghe said talks are underway ment” that Venkatesh noted Wickramasinghe, speaking at last with Chrysler, BMW and Mer- concerned the Tariff Authority • Both 2D and 3D profile scan in gantry/trolley drive direction month’s Colombo International cedes Benz over using Hamban- for Major Ports (TAMP), which • Reduction of container damage claims Maritime Conference tota as a transhipment hub. has been reformed to put gov- ernment ports on a level play- Indian growth ing field with smaller, but more LASE is one of the leading companies Dynamic 3D surveillance cube 3D view - Application software for laser-based sensor systems in the Whilst the Colombo Interna- competitive, “minor ports”, as field of industrial applications. tional Maritime Conference was they are known (see WorldCargo We offer innovative and productive about the emergence of Sri Lanka News, August 2016, p9). solutions for the port industry by combining as a hub, India, the source of a lot “The government has now state-of-the-art laser technology and of its transhipment cargoes, still realised that, perhaps, there is no sophisticated software applications. We are specialised in measurement systems casts a long shadow over its plans. need to control the tariffs of the for fully automated handling and collision Given the scale of its econo- major ports,” she said, describing prevention of containers, cranes, AGVs my and the changes that India’s the situation as “better”. straddle carriers or trucks. current government is push- One enduring problem www.lase.de ing – which aim to raise growth though is Indian customs proce- from the current 7.5% to over dures. The basic issue – the same 10% – the transport industry as is found in other parts of the is watching India with a mix world – is that the value of con- of excitement and trepidation. signments is assessed differently Growth is always welcome, but it in different ports. This creates could overwhelm India’s existing problems, not just of goods be- transport network if not matched ing unnecessarily moved to go with reforms. through more favourable ports, Indian government reforms but issues of cross-country cargo are led by plans to change the tax movements. system and reform infrastructure. A rule limiting storage to one Progress is being made, in par- month was also raised, but the ticular with India’s parliament chief concern was the power voting to adopt a GST (goods that Indian customs has to allow and services tax). This is being or block shipments – something hailed as one of the biggest re- Venkatesh was clear needs to be forms since Indian independence, addressed. “There is a great op- effectively creating a national tax portunity for us in India to be system that, once implemented, a trading hub. This is an oppor- will be significantly beneficial to tunity that, again, we are losing the movement of goods. completely… because of Indian Michael Pinto, a former Indian customs,” she said. shipping secretary, cited one very Not lost on the CIM confer- revealing statistic to CIM con- ence was the fact that India’s Sa- ference delegates – that Indian gar Mala and its reforms could trucks spend 16% of their time be a massive disruptor for Sri waiting in toll queues. “That’s Lanka, especially in its role as a a huge waste of time,” he said. transhipment port for India. In Once GST is in place, moving this respect, Sri Lanka clearly has goods is expected to become more to gain if it can be included much easier. “I expect there will in India’s planning. Arguing that be a huge increase in traffic,” his country has a complementary Pinto added. role to India, Sri Lanka’s prime The other key reform con- minister went as far as to suggest cerns infrastructure, under the that it could join the Sagar Mala India government’s so-called project. “We can be a port for Sagar Mala project, which treats India,” he said hopefully. v

46 October 2016 CARGO HANDLING Mixing the old and the new t has long been the case that some of the world’s STS crane population Industry consolidation and the increasing Iconsists of underutilised cranes at size and stack heights on ULCVs mean ports that have seen a market change, or a competitor, take business away. In other more STS cranes are being placed on the cases, cranes have been built for overly ambitious port projects that have failed second-hand market to attract business. Eventually, a lot of these cranes find outreach and are located at Jurong Port. east coast terminals upgrade to bigger their way to the secondary market, but Jurong recently launched a new Combi units to handle the new neo-Panamax relocating cranes has always been a Terminal to cater for mixed container class of ships that are starting to transit tricky business. Even if an exact ‘fit’ in and breakbulk vessels, clearly a change of the expanded Panama Canal. terms of rail gauge, power supply and course from when it was trying to pro- Georgia Ports Authority has been wheel load requirements can be found, vide an alternative option to PSA’s main selling off some of its smaller cranes, and the move itself can be very expensive. container terminals. three were recently moved to Puerto Today, however, it seems there are so There are also a number of cranes many used cranes on the market that the moving around in the Americas as US HAPPY SKY delivering two cranes to Vigo chances of finding a suitable unit are a lot higher than in the past. And it is not just older Panamax cranes on a 50ft rail gauge that are being offered. Singapore- based Rodson currently has over 50 STS cranes listed for sale, including four six- year old ZPMC units with a 65m out- reach, another of the same vintage with a 62.5m outreach, and one eight-year old crane with a 60m outreach and 37m lift height. Other cranes listed with Rodson include a 2002 Kocks post-Panamax Boxer crane, which is believed to be one of the units at the Tan Cang Cai Mep International Terminal (TCIT) in Ho Chi Minh, Vietnam. Also available are nine cranes built in 2001-2002 by Pan United Shipyard in Singapore using a design licensed from what was then Ansaldo of Italy. These have an 18-row SAP for ZPMC ZPMC has taken a major step for- FindFind out out aboutabout SMARTSMART ward in its mission to build a new future based on ‘Industry 4.0’ by atat TOC TOC Middle Americas, East, Booth Stand A40B24C12 signing a contract with SAP to im- plement its SAP MDG (Master Data Governance) system, and appointing Deloitte to manage the implementa- tion. ZPMC is aiming to build a master data management system, as part of a wider ERP (Enterprise Resource Planning) project. This internal pro- ject will establish coding specifica- tions and data management proce- dures to enable ZPMC to better manage materials, components, per- sonnel and other resources in a more integrated manner, the company said. This could be particularly help- ful to ZPMC crane owners. One • • • • of the difficulties of ZPMC’s rapid • • • • growth has been its reliance on paper documentation of crane components • and specifications, in particular, and • • • • this has created difficulties matching • • new spare parts to cranes as they age. • • ZPMC wants to address this, as well • as implementing new PLM (Product Lifecycle Management) and MES • (Manufacturing Execution System) • processes to improve its operations. • Projects like this are difficult to im- • plement, and ZPMC management at the highest level has urged the whole • company to get behind the initia- • tive. Huang Qingfeng, president and deputy secretary of the Party Com- mittee of ZPMC has set out three key requirements for the project to succeed: All business units need to take a united approach and place high im- portance on the project, while giving it unconditional support. Unit and department heads are to be person- ally involved and make the initiative a “top leadership project”. All business units need to accord the project a high priority and meet implementation deadlines. The project team, including exter- nal consultants, must be supported and resourced appropriately. The project is expected to have major implications, not just for ZP- MC’s internal operations, but on how it selects components, purchasing procedures and generally doing busi- ness with ZPMC for the wide range of companies that supply it.

October 2016 47 CARGO HANDLING

by ZPMC Crane Services, the and voyage planning across the Group, has bought the cranes to port of La Spezia and is due to US-based wholly owned ZPMC Bay of Biscay were meticulously improve the service it offers to arrive this month and become subsidiary. prepared by engineers of BigLift feeder vessel operators. Much operational in November. It and Altius. The former Nelcon faster than its existing cranes, the is not known how it will be Rotterdam to Vigo fabricated its cranes in Rotter- Nelcon units can handle 74t on shipped, but STS cranes sold in In Spain, BigLift Shipping’s dam, and its output for leading the ropes, and come with twin the past to northern Spain by heavy lift ship HAPPY SKY has customer ECT was never de- 20 spreaders, while the exist- Italian operators were shipped completed the delivery of two signed to be transported by sea. ing cranes have an SWL of 40t, fully erect by tug and pontoon post-Panamax STS container A total of 80t of steel bracings so cannot be used for twin 20 (Augustea/AMT). cranes to Vigo. Until last year, the and lashings were fitted to enable operations. Hence Termavi can Nelcon container cranes worked them to withstand the pitching reasonably expect to virtually Going plus size for many years at ECT Home and rolling accelerations. double its productivity when The first of two gigantic new Por- Terminal in Rotterdam. They The two Huisman mast cranes handling 20fts. tainers, dubbed “Malaccamax” by were sold by ECT to Altius SA, aboard HAPPY SKY, due to their Its oldest crane will be retired Paceco España, is due to be put part of Spain’s Davila Group, and 900t (each) capacity and high lift once the new arrivals are fully into service by APM Terminals will be operated at the Termavi height, are well-suited to cope operational – which is expected Valencia (formerly Grup TCB’s container terminal in Vigo. with the STS cranes’ high cen- to take a month – and the termi- TCV operation) this month, Two idle container cranes at the port of Hambantota in Sri Lanka - as far ECT closed Home Terminal tre of gravity, while the vessel’s nal will thus have a complement following a series of trials. Both as is known, the cranes are not being used and the terminal is now handling in the Waalhaven last year, and stability enables loading and dis- of five STS gantry cranes. The cranes will be deployed at the ro-ro traffic much of the equipment park charge operations to be achieved cranes were inspected by Terma- terminal’s Levante Quay, with has been sold off. These par- without the need for stability vi’s engineers prior to shipment the second slated for delivery in Rico. That move was undertaken ZPMC cranes, and this created ticular cranes have a total boom pontoons. from Rotterdam. February 2017. by US-based Industrial Crane the opportunity to sell and relo- length of 86m and a rail span In order to spread the forces on This facility is one of many and Service (ICS), which cut, cate the two older cranes to Saint of 15.25m. Shipping them fully the vessel’s deck, load spreaders Galician gateway that are installing a new crane rail lowered, moved and reassembled John, New Brunswick, Canada, erect aboard HAPPY SKY with the were positioned on the weather Vigo’s neighbour, the Port of to support much larger cranes. the cranes in San Juan, for Tote where DP World will take up a booms braced in their lowered deck. After lifting the first con- Marín, is also getting a used In this case, a new landside rail Maritime. Before that, two older concession after Logistec’s lease position resulted in a port side tainer crane on board, it was crane to compete for the lo- has been installed, as the rail span Kocks units were relocated to expires on 1 December. It is not overhang of 40m and a starboard skidded over pre-installed rails to cal Galician traffic. Pérez Tor- is double that of the terminal’s Tampa, Florida. known what will happen to the side overhang of 18m. Each its stowage position aft. The ves- res Marítima, which operates existing 15m-span rail. The Por- More recently, South Caro- two cranes currently at the ter- crane weighs around 800t, and sel’s cranes then positioned the the container terminal, has an- tainer’s twin girder boom has an lina Ports Authority has sold two minal, which are owned by Lo- the height to the top of the A- second container crane directly nounced it is to acquire its first outreach of 66m, which enables cranes to DP World. Charleston gistec. The crane relocation work frame is more than 60m. in its stowage position. post-Panamax gantry crane, in it to work a deck stow up to 25 is soon to take delivery of new for DP World will be undertaken The load planning, bracings Termavi, also part of the Davila response “to the growing size of rows across, while the lift height container vessels now found on is 51m, so they are capable of routes in Europe”. working *18,000 TEU vessels. In April, Marín persuaded SWL is 65t in twin 20 mode. The Maersk Line to move from Ter- cranes are fitted with Siemens mavi, resulting in much exist- Sinamics AC controls, a Merford ing container traffic moving to cabin and LED lighting. Marín, where costs are currently In classic Paceco España mode, lower. Container traffic at Marín the cranes were fabricated in has risen by 46%, with 2,000 ad- northern Spain and shipped in ditional containers moved in July pieces to Valencia. Assembly of cost down compared to the same month in the cranes is taking place away 2015. from the quayside, so a corridor The crane, which will join has to be cleared through the ter- two existing units at Marín, is minal to the berthing area where being shipped from the Italian the crane will be mounted. v within reach Corrigenda - Crane count updated

New cranes from Hanjin Heavy Industries being unloaded in Incheon

WorldCargo News has become Hanjin Heavy Industries in aware of an error in our 2016 South Korea falls into the lat- July STS container crane mar- ter category, and it transpires ket survey and an omission that Hanjin last month deliv- from the equivalent survey in ered two cranes to the Port of 2015. Incheon in South Korea, an For 2016, due to a simple order that should have been re- back-counting error, we un- corded in the WorldCargo News derstated the number of STS 2015 market survey. cranes due for delivery, at the The cranes were built for time of the survey, in calendar Incheon’s Sun Kwang Newport year 2017. Container Terminal (SNCT), The correct figure was which is instantly recognisable around the 240 mark, includ- due to the distinctive pink col- E4.1 e-chain® for reachstackers – For maximum unsupported lengths with supreme motion plastics® for stability ing: ZPMC, 177; Mitsui E&S, our it paints its equipment. The Easy moving energy and data and reduce downtimes with E4.1. Light-weight, corrosion-resistant and 26; and Liebherr, 18. The bal- new cranes are SNCT’s sixth requires little maintenance. Available as a single e-chain® or preassembled system. igus.eu/reachstacker ance for 2017 is from JFE En- and seventh units, and are de- gineering, Kocks Krane, Kone- scribed by the port authority cranes, Paceco España, Sany and as “mid to large” sized cranes, Visit us: OSEA 2016, Singapore – Booth BL6–01 Terex Port Solutions. with a 51m outreach for an 18- The corrected figure means row stow. that ZPMC’s share of 2017 With a double box girder bookings was around 74%, and boom, the cranes weigh 985t plastics for longer life® not 84% as stated in July. and were delivered by barge. While WorldCargo News Unloading was completed in igus® GmbH Tel. +49 2203 9649 0 makes every effort to contact two days. As far as is known, Spicher Str. 1a Fax +49 2203 9649 222 all crane manufacturers, there these are the first cranes Han- 51147 Cologne [email protected] are regularly some that do not jin Heavy Industries has built respond, or rejoin the market since it delivered several units after a long period of absence. to Gwangyang in 2004.

48 October 2016 CARGO HANDLING Discussions move off stage he upcoming EU Stage V emis- sions limits will, for the first Will the rigours of Euromot Stage V Ttime, require diesel-powered emission limits encourage a switch from NRMM in Europe to be fitted with DPFs – soot traps – because of the par- diesel to alternative fuels? ticle number count requirement simi- lar to Euro VI. Certainly, this is a major The obvious alternative is natural gas. Europe. Furthermore, the port industry change for the port industry, as a lead- In the USA, Kalmar Ottawa, Capac- is known for its conservatism. ing part of the off-road sector – up to ity Trucks, TICO and Autocar all offer now, only one OEM, Hyster, has fit- natural gas tractors as standard options, Good results ted DPFs, and this was on its previous alongside their main diesel line-ups. After the EU-backed Greencranes trial generation (Stage IIIB/Tier 4 Interim) Low LNG prices (shale gas) are one in Valencia two years ago comparing a heavy FLTs and reach stackers. point, but, in addition, the customer Terberg tractor equipped with a Euro Numerically and in terms of duty base is much more diverse than it is in V LNG truck engine and a Stage IV cycles, terminal tractors will be par- Europe, with trailer spotters for shipper tractor, Noatum Valencia confirmed ticularly affected by Stage V and the and 3PL DCs accounting for a much that the LNG tractor performed as re- problems with which (some Euro IV larger part of overall demand than in liably and with the same performance The new Stage IV ro-ro tractor from MOL Cy NV and all Euro V and later) road truck op- erators are all too familiar. If ambient temperatures are very low and/or the run lengths are fairly short, with stop/ start queuing and waiting at container handover interfaces, the exhaust tem- peratures may not be high enough for automatic passive regeneration of the SPECIAL VEHICLES DPF to take place. Compensation Active regeneration is supposed to com- pensate for this, but it adds to fuel con- sumption and, even then, may not com- plete if run times are too short or ‘cold’, so the engines will need to be kept run- ning after the shift has finished. In any event, DPFs need to be taken away every five years for professional cleaning, so ready replacements need to be available. Port operators will have to live with the WHERE extra costs and hassle as long as they op- erate diesel plant. Although there has been widespread flouting of the law in the trucking industry due to lack of enforcement SPECIAL (much harder to get away with since annual tests were tightened), it is hard to envision many port operators dis- mantling after-treatment systems and wiping fault codes from the ECU. COMES AS Their equipment is captive to a de- fined location and it is easy for regula- tors to inspect it physically and monitor local air quality. It would also be impos- sible to ‘keep a secret’ among the work- STANDARD shop and driver workforce. Stage V comes into effect in 2019 so, in practice, OEMs have got just over two years left to get their equipment ready, and they are working hard on Terberg tractors: this, having in some cases just finished converting all their products to Stage p Yard tractors I V. p RoRo tractors A different path Stage V is a logical next step, given p Road/rail tractors prevailing poor air quality and, if one considers the huge shift in RTGs to p Swap body carriers fully electric power, it seems incongru- ous that internal transport vehicles are still polluters. Meanwhile, however, the question is whether the complexities of Key qualities: Stage V will stimulate new interest in alternative, cleaner fuels. p Robust, reliable, easy to maintain Electric terminal tractors are avail- Enhanced driver comfort able in Europe from Terberg and MOL p Cy. These originally had Balqon drive- p Fuel-effi cient lines, but they are now thoroughly Eu- ropeanised machines, and both compa- p Fully customisable nies have niche customers, but, for the general market, the problem is that they p Worldwide service and support are up to three times more expensive than the latest diesel plant. Serving worldwide markets Change at from Benschop, the Netherlands the top Tel. +31 348 45 92 11 At the end of this year, George Ter- berg, who has been with Nether- lands-based Terberg Benschop BV for 39 years, will retire as the com- pany’s CEO and move to the hold- ing company, Terberg Group in IJs- selstein. Rob van Hove, who was General information: terbergspecialvehicles.com formerly CEO of Kuiken Groep in Emmeloord and before that with Kalmar, worldwide after-sales, has been appointed as his successor. They will jointly lead Terberg Benschop until the end of the year. (For more information see worldcargonews.com - people archive under ‘T’).

October 2016 49 CARGO HANDLING

as the diesel tractor in 1,000h have been delivered to Tunisian of testing carried out over two port operator STAM under the TICO on expansion path months, with significant reduc- latest three-year rolling contract. US-based terminal/yard tractor the US and Canada, where the tions in emissions and noise lev- In addition, 23 T230s with Stage specialist TICO Manufactur- use of specialist subcontractors els. IV engines have been delivered ing has announced a significant requires considerable supply Frank Oerlemans, Terberg’s to Hanjin in Busan. Korea is not expansion to its dealer network chain logistics involving trailer export manager, says that the at Stage IV level, but Hanjin/ as it targets key markets in the handling. Mexico, he added, is LNG tractor can cope with the Korean Air want to promote a Americas. Five new dealer where the US was 15-20 years high GCWs and high torque ‘green’ approach to investments, groups and multiple authorised ago, with many trailers mar- demands in a port environment, explains Cherradi. The sale was locations have been added: shalled by road trucks initially, as long as the driveline is prop- completed before the Hanjin erly selected and the gear ratios Shipping bankruptcy. Thermo King of Central before switching to specialist California in Fresno, CA, with terminal tractors as volumes are right. Terberg has experience Terberg says that production branch locations in Turlock, grew. TICO already has ma- with a number of machines in of its DT low entry cab tractor, CA and Bakersfield, CA. chines in Mexico (includ- this respect, using different LNG aimed at DCs/trailer depots, is engines, such as Volvo and Mer- now in full swing, with recent Outsource Fleet Services in ing in the port sector), but, as Bedford Park, IL. Madisa has over 60 locations cedes. sales in Italy, as well as the UK. A Terberg DT223 low entry cab tractor at work in Italy On the ports side, recent Terberg NITCO Northland Indus- countrywide, the opportunity trial Truck Co in Wilmington, for TICO “is huge”, stressed Turkish case deliveries include, through Ter- MA, with branch locations in Queen. Frank Oerlemans also draws at- transport 20ft open top contain- Vandenberghe says that MOL berg DTS UK, 33 YT222s and Shrewsbury, MA; Middleboro, In California, working with tention to AsyaPort in Turkey, ers with a hooklift system. has had many orders in Europe matching 70t Seacom trailers. MA; Lewiston, ME; Concord, Thermo King is another good which operates a fleet of 40 As yet, Terberg has not car- and for export outside the EU. NH and Wallingford, CT. fit. Thermo King’s engineers Terberg LNG YT222 terminal ried out any development work The company’s new ro-ro trac- Transnet deal tractors. The fuel consumption on LNG as fuel for a 4x4 ro-ro tor with a Stage IV engine and In September, 14 Terberg ter- Kenworth of South Florida are already calling on container in Fort Lauderdale, FL, with parks to service equipment, and there is actually lower than it tractor, which requires more reworked chassis and cabin “has minal tractors were delivered branch locations in Riviera often this is where leasing and was at Valencia, measured on a power and torque. Again, much been a big success”, he notes. to Durban Container Terminal Beach and Fort Pierce. short-term rental opportunities per-machine basis. depends on the selection of the “In order to meet the demand Pier 1, as part of Transnet Kwa- He points out that there is an driveline. Of note, the LNG 4x2 for terminal tractors, we are ex- zulu-Natal’s R385M investment Madisa Caterpillar will serve are found. the whole of Mexico from nu- All the new dealers will offer LNG fuel station near the Asya- tractor trialled by Noatum Va- tending our factory, and a new in new cargo handling equip- merous locations. a full range of servicing, financ- Port terminal, whereas Valencia lencia was fitted with a 250 hp assembly hall will be ready be- ment at the facility. TICO’s dealer sales manager, ing and rental options. This is filled up from a tank trailer stand- engine, whereas Terberg’s diesel fore the end of this year.” The new machines, ordered ing in the yard for the duration 4x2 tractors normally have a Recent deliveries by Mafi through Terberg Middle East, Doug Queen, told WorldCargo particularly important around € News that the new dealers are the Chicago area, where the of the tests, so transmission losses 180 hp engine, although there include 33 T230s with a Stage cost R23.4M ( 1.47M) and they all in areas where TICO did Class I railroads prefer to con- could have been a factor. In any was practically no difference in IIIb Cummins engine and Alli- will replace 14 Mafi MT 25 YT not have representation previ- tract yard tractor services on event, a fleet of 40 units gives a the torque. The YT222s at Asya- son gearbox to DCT Gdansk for machines that date from 2009, ously, and will open up new a short-term basis. Contrac- much more accurate result com- Port are fitted with 228 hp (170 its Terminal 2 extension. These when Mafi secured a Transnet opportunities. Mexico, in par- tors tendering for this business pared to one machine in test kW) Mercedes engines. Similar have a GCW of 90t, and DCT order for a total of 59 trac- ticular, is a high growth market might get just a month’s notice conditions. decisions could be made for ro- specified a fixed fifth wheel. So tors for various South African as its automotive industry is ex- before they start a contract, so Onboard storage should not ro, although operators might far more than 35 R332 ro-ro ports (WorldCargo News, March panding and maturing fast. having a fleet that can be ac- be a problem, continues Frank be concerned about using gas- tractors with Stage IIIa engines 2009, p1). Both the old and new Queen said auto production cessed very quickly is a signifi- Oerlemans. A 300-litre LNG powered tractors in the confines in Mexico is replicating that of cant advantage. tank offers a similar range to a of a ro-ro ship. 200-litre diesel tank, and can Terberg makes the point that be accommodated with a slight LNG has been in use for many A TICO Pro-Spotter in action at an IKEA distribution centre Capacity to offer increase in wheelbase, from years, and it sees no lack of clar- 3,300mm to 3,500mm. With ity in the rules or regulations CNG, however, an 800-litre tank governing its use, or anything Volvo Penta is needed for the same range, else that conflicts with its con- and this is not practical for ter- stant drive for product excel- US-based terminal tractor “We were looking to give minal tractors, although Terberg lence. So, while it is now work- manufacturer Capacity Trucks our customers a choice in pow- has done it twice with special- ing on Stage V, the LNG tractor has entered into an agreement er sources,” explained Andy purpose 5,500mm wheelbase is there if customers want it. with Volvo Penta to offer the Cooper, director of engineer- tractors used to pick up and EPA Tier 4 Final engine across ing for Capacity Trucks. “After Not so sure the Capacity line-up. Capacity, evaluating several players in Both MOL and Mafi are more part of REV, is currently testing the industry, we selected Volvo sceptical about LNG. As yet, Volvo Penta’s TAD570-572VE Penta as the engine that will MOL has not built any natu- (5-litre, in-line 4-cylinder) en- provide our customers with www.tratos.eu ral gas tractors and the com- gines in both the 173 hp and the best ROI. The Volvo name pany does not see much scope 214 hp ratings. is well-known in the industry, for it, says sales manager Marc Capacity expects to offer the and their engines have a repu- Vandenberghe. Mafi’s managing engines as an option across its tation for quality and reliability director Gino Cherradi says that full line of Sabre yard/terminal that meet our own rigorous Let’s take there are some countries, such tractors starting in early 2017. standards.” as Spain and perhaps France, Capacity launched its latest- Darren Tasker, vice presi- where LNG is a possibility. “In generation Sabre design last dent of industrial sales for Volvo another Spain everyone is used to LNG year (WorldCargo News, Febru- Penta of the Americas, said: and there is a gas pump in most ary 2015, p1). “This agreement with Capacity filling stations,” he said. Gas The first Sabre truck with Trucks is an important valida- turn companies such as Fenosa have the 173 hp (129 kW) engine tion of our solutions. We will invested heavily in the network. made its debut at the Capac- work closely with the Capac- Prices are attractive, too, so al- ity dealer meeting in June and ity team to give the initial two lowing for the 2:3 range ratio, it will be deployed at several units thorough testing before Our cables have been LNG works out around 35-50% different warehouse/DCs for we roll out the Volvo Penta- continually working cheaper than diesel, which is ob- evaluation, while the Sabre powered models in 2017.” viously attractive. with the 214 hp (160 kW) en- Cooper continued: “We were for many years with However, continues Cherradi, gine will be customer-tested at impressed with the outstanding high speed applications generally opex is not the main the ports of Long Beach and support from the Volvo Penta issue with LNG. He says Mafi Los Angeles. team. They alleviated any engi- all around the world. has prepared LNG/CNG plat- The Volvo Penta offering neering challenges as the team forms based on what customers will be exclusive to Capacity in was highly knowledgeable and were telling it they wanted, but, the North American yard trac- accessible and made the process Virginia (USA) when push comes to shove, the tor field for one year. Capacity as seamless as possible. We also Throughput: 1.745.228 teu problem is the cost of the infra- will continue to offer the T4F like the torque performance Speed 300 m/m structure and storage. Cummins engine in 164 hp of these engines, which pro- Tratos cables have been working or 200 hp variants, as well as a vide high torque even at low th In this sense, he believes, since 9 March 2010 AsyaPort is the exception that CNG engine or an LNG op- RPMs and give excellent fuel proves the rule. The driving tion. efficiency.” force at AsyaPort was essentially Rotterdam (Holland) political, and the task of MSC/ Capacity has announced it will offer a four-cylinder Volvo Penta engine as Throughput: 9.743.290 teu Soyuer Group was to make it an option on its Sabre range Speed 270 m/m the “greenest port in Turkey”. Tratos cables have been working The 14,000 m2 Karbonsan/Cry- since 3rd March 2008 ostar plant next to the port actu- ally opened before the container terminal, providing ‘ready-made’ infrastructure. Port operators themselves are not going to make these invest- ments, although there could, over time, be some spin-off from TratosFlex ESDB LNG bunker stations as ships in- creasingly have to switch from 1966 - THE FUTURE COMING FROM THE PAST - 2016 HFO. Tratos Cavi S.p.A - via Stadio, 2 - 52036 - Pieve Santo Stefano - Italy - t. +39 0575 794 329 - e-mail: [email protected] Market not bad On the general business side, the market has been fairly active.

50 October 2016 CARGO HANDLING

be transferred from CVS in Roveleto the takeover of Terex MHPS by Kone- di Cadeo, just up the road from TPS’s cranes, the plant could be exposed and Italian plant in Lentigione. TPS im- terminal tractors could provide a new Vesconite mediately introduced the brand name lifeline, as they are new not only to TPS Transace, to go with its Stackace ECH but also to Konecranes. for axles mast trucks (also built in Lentigione) TPS has been quick to offer ma- and Liftace reach stackers. chines with Tier 4 Final and Stage IV The Port of Singapore Authority If TPS is on schedule, the first of its engines for the US and EU markets, re- (PSA), which operates a number of new Transace tractors should be leaving spectively. Tier 3/Stage IIIa products are its tractor/trailer sets as double trail- Lentigione this month. “The transfer of also available. The Transace 4x2 YF 230 er rigs to provide 4 x 20ft/2 x 40ft all required documents and the required is available with a fixed fifth wheel cou- capacity, uses Vesconite bushings on inventories from CVS Ferrari is com- pling, as well as an elevating fifth wheel, its Ottawa terminal tractor axles. pletely on schedule,” said Cristiano Gi- and engine outputs are up to 172 kW. The loads that the tractors are acomello, site manager in Lentigione, in The 4x4 Transace RL 270 machine hauling and the forces that their ax- June. “Here in Lentigione, we also have with elevating fifth wheel is aimed at les are exposed to are considerable, excellent general conditions to establish ro-ro and heavy industrial operations. comments Vesco Plastics Singapore manufacturing of the new product line.” Engine output is up to 194 kW and director Emily Heng, who acts as After TPS consolidated all its Eu- maximum GCW is up to 150t. v the distributor of Vesconite Singa- ropean reach stacker production in pore. France, Lentigione was left with heavy PSA has been a repeat customer The Terex Port Solutions Transace YL 230 mast trucks and FLTs. Looking ahead to tractor is also available with a fixed fifth wheel for tractor axle bushings since 1998, when the Vesconite axle bushings replaced bronze bushings. The lat- ter, says Vesconite Singapore, were found to be inferior to hard-wear- ing and lubrication-free Vesconite polymer bushings. Heng believes that the market for Vesconite terminal tractor axle bushings could be considerable, given the number of machines em- ployed globally. tractors (known locally as haulers) have RH drive. Features of the new Terberg ma- chines include lumbar-supported seats for enhanced driver comfort, and vari- ous environmental measures. For exam- ple, the climate control automatically switches off when the door is opened, and the engine cuts out if the opera- tor leaves the seat for more than five minutes. They are equipped with Mer- cedes OM906LA Stage IIIa engines, while the Mafi machines have Stage IIIa Cummins engines. TPT Kwazulu- Natal plans to commission 30 more haulers and 18 RTGs for Durban Pier 1 over the period 2017-19. T2 on the go Kalmar is enjoying some success with the Europeanised version of its new T2 terminal tractor. This was launched in the UK last year following the success- ful roll-out of the Kalmar Ottawa T2 in the US in 2014. For the first time, Kalmar set up a dedicated tractor team in Tampere to support its affiliates and dealers in EMEA. SABRESHIELD™ ACCESS360™ TESTING AND 30% FASTER In June, Kalmar reported an order WARRANTY SERVICEABILITY VALIDATION BOOM for 14 T2s from Abu Dhabi Terminals (ADT) for delivery this month to Khal- ifa Port Container Terminal. Just now, Capacity Trucks is Incorporating Including our cab Reduces coupling it has reported an order from Gulftain- the Ārst and only multiple chassis door, subjected to and lift times and er Lebanon SAL for six T2s and one manufacturer to features designed to 96,000 opening and enables faster DCF80-45E7 ECH, for operation in Tripoli, Lebanon. One machine is be- oýer a ffullull Ŏ0-year iincreasencrease speespeedd anandd closingclosing cyclescycles ddrive-awaysrive-aways ing supplied shortly, and the rest will be structuralural frframeame ease ofof serviceservice delivered during the Q1 2017. warrantyarranty An order for two T2s along with five DCG160-12 FLTs has come in from HeavyMovement SL based in Barcelo- na. This company provides outsourced operations services such as warehouse management and handling of iron and steel products to the metal industry, and already has a fleet of over 30 Kalmar heavy FLTs, 20 terminal tractors and three reach stackers. Its T2 deliveries are slated for December this year. The T2s are specified with a GCW of 95t, and will be the first T2s to be deployed in the Iberian Peninsula. The new FLTs have a 180-deg rotating seat for improved visibility and safety on site, and are equipped with Kalmar SmartFleet remote monitoring and re- porting. Kalmar emphasises that the T2s for ADT, HeavyMovement and Gulftainer are all coming from its assembly plant in Poland. The ADT and Gulftainer ma- chines have Stage IIIA Cummins en- gines, while HeavyMovement’s will be fitted with Stage IV Cummins engines. The drivelines in all cases are as per cus- tomer specifications. FIND YOUR EDGE Market entrant In a surprise move, earlier this year Ter- ex Port Solutions (TPS) rounded off its product portfolio with the acquisition of the CVS Ferrari terminal/ro-ro trac- tor product line-up, with production to

October 2016 51 NEWS

52 October 2016