FEBRUARY 2018

US fabrication for Konecranes RMGs The steel structures for the and trolley, plus the spreader and The drives and controls for cranes), and multiple US ports eight new Konecranes widespan headblock. The gantry structures the GPA RMGs will be supplied for mobile harbour cranes. Im- RMGs ordered by the Georgia are not, however, included in by TMEIC, which is headquar- portantly, there is no blanket Ports Authority (GPA) for its the waiver, and Konecranes con- tered in Roanoke (VA), and is a waiver for container cranes as a Mason Mega Rail project will be firmed that these will be manu- wholly owned subsidiary of Ja- class, and a separate waiver must fabricated in the USA. factured in the US, but declined pan’s Toshiba Mitsubishi-Electric be sought for each purchase that The Mason Mega Rail project to name the fabricator at this stage. Industrial Systems Corporation. uses any federal grant, for the full received a US$44M grant from The RMGs are very large, TMEIC is also supplying drives price or part of it. the US Government’s FAST- with a span of 53.34m, and to the GPA for new and retrofit The question of whether to LANE programme. This funding 16.7m cantilevers. Capacity is STS cranes, and the RMG drives fabricate RMGs in the US will is subject to a ‘Buy America’ re- 40t, and lifting height is 11m. will have many common parts. come up every time. In the cur- quirement that stipulates a “do- WorldCargo News believes that The decision to use a US fab- rent political climate, where the Fully erect delivery of new cranes has become a familiar site in Savannah, but mestic manufacturing process” these will be the biggest contain- ricator sets an important prece- Trump administration is trying structures for the port’s eight new RMGs will be fabricated in the USA for the steel and iron products. er cranes made in the US since dent. In recent years, Buy Amer- to reduce steel imports through As discussed on page 32, the Morris Material Handling built ica waivers have been sought tariffs to strengthen the US do- will also exclude steel structures federal grant funding. In a new GPA has obtained two separate an RMG for the Port of Everett and obtained by the Palmetto mestic steel industry, Buy Amer- that can be fabricated in the US. development, Sany has reported waivers for most of the crane com- in 2008. That crane had an 85ft Railroad for its purchase of four ica waivers face much greater This does not, however, pre- its first ever order for RTGs in ponents, and some of the structur- span, and was fabricated in Ta- widespan RMGs, Port Newark scrutiny, and it can be expected vent US crane buyers importing North America. The customer is al assemblies including the bogies coma by Jesse Engineering. Container Terminal (two STS that future waiver applications cranes purchased without any Union Pacific Railroad.

TSB for Cosco automation project APMT to monetise facilities Korean software specialist TSB and 24 ASCs for the new termi- were already in place, and the APM Terminals is to sell stakes in keep control and management, ing its business to third parties. (Total Soft Bank) has won a nal, and all the electrical and au- terminal is expected to open some of its container terminals, but raise cash.” APMT has always had a policy contract to supply the TOS and tomation systems for the cranes in Q1 2019. Capacity will be but will, in all cases, maintain an He added: “Institutional funds of reviewing and cleaning up its related automation software for will be supplied by ZPMC Elec- around 2.5M TEU/year. equity interest of at least 51%, are very interested in port in- portfolio, but it is clear that this Cosco Shipping Ports’ (CSP) new tric (ZPMC EZ). The project is the first ter- and, therefore, management con- frastructure investment and the will be accelerated, with Engelst- terminal at Khalifa, Abu Dhabi. TSB will install the new- minal under a wider corporate trol of them. This is critical, given chance to team up with a pro- oft keen to conclude at least one CSP Abu Dhabi Terminal est version of its CATOS TOS agreement between CSP and that Maersk’s strategy is based on fessional terminal operator like transaction this year. LLC is being developed by CSP, and its ATC (Automated Trans- TSB, concluded in January this creating an integrated transport ourselves, and especially one that In terms of performance, the and will have a 1,200m quay fer Crane) supervisor software year, which TSB described as a and logistics business, in which is associated with a large shipping CEO made it clear to attendees with a depth of 18m alongside, for the yard cranes. CSP held a step to a “more concrete rela- all divisions – liner shipping, ter- line.” that he was not happy with the and the total area will be 70-ha. groundbreaking ceremony for tionship” between the two com- minals and forwarding – support Maersk and its associates, in- 2017 results. He indicated that Last year, ZPMC announced the new terminal in November. panies, and a “win-win partner- each other, and work together. cluding recently acquired Ham- his top priority going forward that it will supply 11 STS cranes The major quay and yard works ship”. Addressing attendees at Mae- burg Süd, will become more would be to cut APMT’s costs rsk’s Capital Markets Day, held important to APMT. The past faster than its competitors. En- in Copenhagen in February, year has, for instance, seen a near gelstoft sees more automation as Morten Engelstoft, CEO of 180-degree change of direction one way of achieving this. APMT, said: “Part of our ob- in APMT’s business strategy. Based on shareholdings in its jective for 2018 is to identify The focus is to support its par- various facilities, APMT handled at least one location where we ent liner company by helping 39.7M TEU in 2017. This was could conclude a monetisation it reduce its costs and raise its up by 6.5% on the previous year, – a high-value terminal where operating efficiency. This means with Maersk Line accounting for we could divest a minority share, less effort on marketing and sell- just over a third of its throughput. Shake up in Nhava Sheva port PSA’s new Bharat Mumbai Con- call at Nhava Sheva, whereas DP from GIT to BMCT this month. tainer Terminals (BMCT) has got World and APM Terminals put PSA said that more services off to a flying start this month. commercial pressure on lines will be announced in the com- BMCT is the fourth container to also make calls at their other ing weeks, and it is pushing to terminal at the Jawaharlal Nehru west coast terminals, in order to expand the terminal quickly. Port Trust (JNPT) in Nhava get a berthing window at Nhava Three more STS cranes are due Sheva, India, and was officially Sheva. to arrive this year, followed by opened by Prime Minister Nar- BMCT is already taking busi- another three in 2019. An option endra Modi on 18 February. ness from the incumbents. The to double the RTG order with BMCT opened with 1 km Swahili Express Service between another 18 machines was exer- of quay, six STS cranes (Doosan India and Africa, operated by cised before the first RTGs were Vina), 18 RTGs and four RMGs CMA CGM and Emirates Ship- even delivered. PSA plans to start (both Konecranes Noell). The ping Line, has moved from the on phase 2 construction soon, terminal received its first export JNPT terminal, and Hapag-Lloyd’s which, when completed, would container by road on 29 January, Indian Ocean Service switched double capacity to 4.8M TEU. www.seacom.ch which was followed by exports www.seacom.ch by barge and rail. On 2 February, CMA CGM’s 3,426 TEU CEN- IN THIS ISSUE TAURUS was the first vessel to call. ROLL TRAILERS // GOOSENECKS Hapag-Lloyd’s 10,114 TEU EX- NEWS CONTAINER INDUSTRY ROLL TRAILERS // GOOSENECKS DRAWBAR TRAILERS // CHASSIS PRESS ROME followed on 12 Feb- RAM wins patent fight 2 Good year for box leasing 29 DRAWBAR TRAILERS // CHASSIS LIFT TRAILERS // CASSETTES ruary, and exchanged 3,700 TEU. 40M+ TEU for Shanghai 6 LIFT TRAILERS // CASSETTES PSA is competing against ULCV fleet analysis 12 CARGO HANDLING JNPT’s own terminal, as well as 75% growth for UTLC 13 A snapshot of yard cranes 32 APM Terminals’ Gateway Termi- 40ft flexitanks in reefers 16 First RTGs for Paraguay 33 nals India (GTI) and DP World’s Strainstall VGM for RTGs 34 Nhava Sheva International Con- REGIONAL FOCUS Diversity for busy VDL 35 tainer Terminal (NSICT). Both APM Terminals and DP World China spreads its wings 17 Sarens order for TEC 36 operate other terminals on the CHEC mate in the game 18 Bromma seeks optimisation 37 west cost of India (at Pipavav and Lines in Latin shuffle 19 Tackling crane simulation 38 Mundra, respectively), and of- Brazilian auto boom 20 fer lines calls at both as a pack- French ports extend reach 22 ECO FOCUS age. PSA does not have another Mast lighting with LEDs 39 terminal on the west coast, but REEFER INDUSTRY Is the future all-electric? 40 this could actually work to its Lessor buying takes a dip 23 advantage. An unnamed carrier TWS adds agitators 25 HEAVY LIFT executive was quoted in India’s Active CA win for Daikin 27 Heavy lift, heavy burden 42 Hindu Business Line as saying that Carrier celebrates 50 years 28 Upwards for airfreight 43 SEACOM AG · Querstrasse 5 · CH-8212 Neuhausen Switzerland · Tel: +41 (0) 52 632 04-00 · Fax: +41 (0) 52 632 04-09 the market will welcome PSA SEACOM AG · Querstrasse 5 · CH-8212 Neuhausen Switzerland · Tel: +41 (0) 52 632 04-00 · Fax: +41 (0) 52 632 04-09 SEACOM AG Querstrasse 5 CH 8212 Neuhausen Switzerland Tel: +41 (0)52 632 04 00 Fax: +41 (0)52 632 04 09 because it offers a standalone CARGO HANDLING NEWS

Competition and Consumer Act, purposes lacked novelty, as it did and AMMESA’s patent applica- in respect of correspondence to not involve any inventive steps; tion was refused,” noted RAM. RAM in patent win potential customers and RAM, and as a result the patent was not AMMESA was also ordered LHM 420 RAM Spreaders has successfully As previously reported (World- threatening to enforce patent granted to AMMESA,” RAM to pay RAM Spreaders’ legal challenged an Australian patent Cargo News September 2016, p1 rights. said in a statement. costs. on the Rotainer rotating con- and p53), RAM Spreaders previ- RAM has now succeeded in RAM argued its case at the “We are pleased to have such ordered tainer spreader held by AMME- ously won a case in the Australian having the Australian Patent Of- National Patent Office in Can- an emphatic judgment, with the SA (Australian Mobile Mining Federal Court, where it obtained fice overturn an AMMESA’s pat- berra in March 2017 in a hear- Rotainer patent found to lack by Qube Equipment, Systems & Accesso- a declaration that its Revolv- ent application on a container ing chaired by Mr Ed Knock. novelty, and our opposition being ries Pty. Ltd). AMMESA sells its er product did not infringe tipping device. He found that a number of the successful,” said RAM Spreaders’ Rotainer design through Con- AMMESA’s patent. AMMESA “The National Patent office claims in AMMESA’s applica- Cameron Hay. “At RAM, our tainer Rotation Systems (CRS). was also found to have made found in the opposition hearing tion were not novel. “AMME- strategy is to provide the best Other products in the same mar- what amounted to “misleading brought by NSL [RAM’s parent], SA was granted a period of product and design for our cus- ket include RAM’s Revolver, or deceptive conduct in trade that an AMMESA patent appli- time to propose amendments tomers, and not trolling old IP and the Rotabox from Qube and commerce” under the Aus- cation relating to apparatus for to remedy the defects in their and trying to create confusion in Logistics (also based in Australia). tralian Consumer Law and the handling of containers for bulk application, but the date passed, the market.” Italian job for Kalmar Kalmar, part of Cargotec, is to der a Kalmar Care service agree- supply nine Stage IV TR618i ro- ment. The order was booked in Timars Port Equipment ro tractors to Onorato Armatori, Cargotec’s Q3 2017 order intake, for working its ro-pax vessels in and the agreement took effect at two terminals. Seven machines the start of 2018. - Reliable, Efficient & Safe will operate at Onorato’s Livor- Yilport operates a multipur- no Terminal Marittimo, and two pose terminal and container Two good examples of Timars smart solutions for efficient container handling. at the CPS terminal in Catania. terminal in Gävle, as well as the Do not hesitate to contact us for more information about our other products, Kalmar’s local team of service Stockholm Nord intermodal ter- engineers already supports Ono- minal, which handles Gävle con- such as Timars C-lift and Timars Gravity Centrelizer. rato with equipment mainte- tainer traffic. Service cooperation nance services at both locations. between Yilport and Kalmar goes The order was booked very re- back to 2016, when the Finn- A Liebherr LHM 420 mobile har- cently, and the machines will be ish firm became Yilport’s service bour crane fitted with a Qube Ro- delivered in Q2. partner for its terminal in Oslo, tabox container bulk tipper Matteo Savelli, who runs the Norway. TIMARS OHE-FRAME Livorno operation, said: “Kalmar Kalmar has assumed full re- Australian’s Qube Ports has opt- Latest fully automatic overheight frame for safe was the natural choice for us sponsibility for maintenance ed for a new LHM 420 Liebherr when renewing our terminal operations at the Swedish ter- mobile harbour crane. This will and efficient operation of flatracks and open tractor fleet because of the ex- minals, where Yilport operates be the eighth MHC Qube Ports top containers. Can be used with all spreaders cellent working relationship we more than 70 different types of has acquired from Liebherr. without any adjustments. New smart electrical have built up over many years of cargo handling equipment from The new crane should arrive operation system. partnership. We already operate several manufacturers. The flex- in Tasmania’s Port of Bell Bay in machines at our terminals, and ible Kalmar Care service agree- June, where it will be assembled we have been extremely satisfied ment covers STS cranes, MHCs, and commissioned by both local with the service support provid- RMGs, reach stackers, FLTs, ter- and European engineers. Other ed by their skilled local team.” minal tractors and wheel loaders, Liebherr MHCs for Qube Ports Separately, Kalmar has report- and includes fixed-price mainte- are operated in Darwin, Bun- ed the award of a full outsourc- nance coverage for both rental bury, Port Hedland, Geraldton ing contract for maintenance ac- and owned equipment, as well as and Fremantle. Qube Ports also tivities at Yilport Holding’s three 24/7 on-call coverage, invoiced recently ordered 12 wheel load- cargo terminals in Sweden, un- based on time and materials used. ers from Liebherr. TIMARS OFFSET FRAME The LHM 420 has a maxi- Fully automatic attachment A rotating console is usually specified for ro-ro tractors mum hook lift of 124m out to for efficient and safe handling 16m, and maximum reach is of 20ft containers close to the 48m. The Bell Bay crane will be fitted with a twin 20 spreader, bridge of the vessel where and Qube Ports will also use the the wires of the container crane with its Rotabox rotating spreader can be a problem. container tipper with integrated lid lifters, for tipping bulk ores and concentrates from containers into ship holds. Qube Ports is a leading inte- grated port solutions provider in Australia, with services and fa- Visit our website for more information. cilities in 28 ports, together with cargo storage, materials handling Ph: +46 346 71 59 00 • Fax: +46 346 71 59 19 • [email protected] • www.timars.se and distribution operations in all of the country’s states. Capacity into Mexico Capacity Trucks has recently de- pacity single-axle model in Ca- YOUR PARTNER IN TRAILER CONSTRUCTION livered four TJ9000 terminal trac- pacity’s TJ Series, with a gross tors to the APM Terminals facil- combined weight rating of up to ity in Lázaro Cárdenas, Mexico. 242,000 lbs (109.7t). It is Capac- The terminal features an au- ity’s workhorse in the port sec- tomated yard crane system with tor, featuring a Cummins engine ASCs, and shuttle carriers for the as standard, with a Volvo engine quay-to-stack transfer. There are now available as an option. five rail lines behind the ASC The four new tractors for blocks, meaning some internal Lázaro Cárdenas were supplied drayage is required. by Bravo Montacargas, a Capac- The TJ9000 is the higher ca- ity dealer in Mexico.

Product range: · Skeletal trailers · Cornerless trailers Delivery corrigendum · Rolltrailers An error appeared in the Sea- Deliveries for a Rotterdam- · Goosenecks com LiftMaster article on page Bilbao ro-ro service, with one · Multi-trailer train systems 2 of the January 2018 edition translifter located in Bilbao. · Industrial trailers of WorldCargo News. Grendi’s Various deliveries to South · Custom-built and special trailers adoption of a translifter/cas- Korea for carrying steel coils sette system in 2016 was not on ro-ro vessels. It is also un- the first outside the Baltic Sea/ derstood that Novatech has North Sea area since the early delivered some Flexmasters in South Korea in recent years. Houcon Cargo Systems b.v. Houcon 1990s, as we stated. Other de- Alexander Bellstraat 7, 3261 LX Oud-Beijerland liveries (by Liftec) include: Some of the above deliver- P.O. Box 1569, 3260 BB Oud-Beijerland Four LTH 90s to Sea Road in ies were previously reported The Netherlands Cargo Australia in 2009, followed by in WorldCargo News. We would Phone: +31(0)186 - 620930, Fax: +31(0)186 - 615160 two more in 2017. like to apologise for any con- E-mail: [email protected] cern that this error may have www.houcon-group.com Member of the Houcon Group Systems Two deliveries to a customer in the UAE. caused.

2 February 2018 CARGO HANDLING NEWS IRiS container destuffing robot An “Interactive Robot System for Un- power between several bays, and will monitoring system. Schulz is develop- loading Sea Containers” (IRiS) is be- be able to drive in and out of contain- ing the digital twin, to save on R&D, ing developed by Bremen University ers for destuffing, using claw arms to while FRAMOS is developing the in- Institute for Production and Logistics empty the contents onto a conveyor. dustrial image processing. This should (BIBA), in cooperation with industry Established machine-learning methods enable the system to recognise whether partners BLG Handelslogistik (BLGH), will enable the robot to classify and a container can be discharged fully au- Schulz Systemtechnik and FRAMOS. optimally handle different types of tomatically by robot, or whether special The €3.16.M budget for this three- packs. conditions mean the robot has to be year project is being supported to the BIBA is developing human-machine manually controlled from the control tune of €2.2M by the Federal Ministry interfaces to minimise training require- station. for Transport and Digital Infrastructure ments. Interaction modules will be de- The project is being coordinated by (BMVI), as part of its Program for In- veloped to facilitate intuitive control BLGH. Wolf Lampe, head of sustain- novative Port Technologies (IHATEC). of one or more robots from a remote ability and new technologies at BLG Technical support is also coming from control station, minimising the risk of Logistics, said it is hoped to have the TÜV Rheinland. expensive system standstills. first prototype ready in 2019, “to dem- The robot under development is in- BIBA is responsible for the kinemat- onstrate what reliable human-machine tended for use with existing port infra- ics and claw arm, and for designing the collaboration in the supply chain can structure. It will move under its own remote workstation and performance look like”. Robotic container (un)loader from IRiS Robot first for ZPMC ZPMC has commissioned its “first smart welding robot” at its main STS fabri- cation site on Changxing Island, near Shanghai. It will be used for small STS crane parts. The robot workstation uses 3D visual photography technology and a laser vi- sion gathering and tracking system to identify weld grooves automatically, gen- erate programs and achieve multi-layer and multi-pass welding autonomously. “Meanwhile, it can arrange welding paths for several work pieces autono- mously, and achieve automatic identify- ing, positioning and tracking, as well as full-automatic multi-layer and multi-pass continuous smart welding with one but- ton, which realises intelligent produc- tion of lifting lugs of all forms, includ- ing round, oval, and round with straight flanges,” noted ZPMC. ZPMC started its robot welding pro- ject in July 2016, and the equipment was installed and put into trial produc- tion towards the end of 2017. At the start of February, “the lifting lug heavy plate welding robot has completed weld- ing 1,520 heavy plates of lifting lugs, and achieving intelligent manufactur- ing with the robot,” ZPMC reported. “Therefore, the heavy plate welding robot has become the first smart weld- ing equipment to be formally put into operation in Changxing Branch.” Orange for Innovative Kansas-based Orange EV has deliv- ered one of its T-Series all-electric terminal tractors to Innovative Trans- portation Services (ITS) in Buffalo, New York, part of Sonwil Distribu- tion Center, Inc. The machine, which is built on a Kalmar tractor with Orange EV’s full electric drivetrain, replaced a diesel unit at ITS. “We like to operate on the lead- ing-edge with clean technologies,” said Dave Harper, president of ITS. “Sonwil was one of the first thou- sand orders for Class 8 12-litre CNG tractors, and now we’re moving into Class 8 electric. The Orange EV truck is a good fit with our mission, eliminating emissions and solving problems. And, compared to the steep learning curve with CNG, the elec- tric yard horse was easy – just plug it in.” The T-Series was tested in extreme cold last month, when temperatures in Buffalo fell to 0 degF (-17 degC). ITS said the electric machine per- formed well in the conditions, and it expects to see cost-savings over the longer term. “The Orange EV elec- tric has reduced maintenance, keeps drivers happy, and we expect to see reduced costs. To other fleets consid- ering electric, I’d say don’t be afraid to dive in – you will be rewarded,” Harper enthused.

February 2018 3 CARGO HANDLING NEWS

in particular to the advent of and sensors for monitoring the high-capacity hoist systems de- main operating parameters. EMG New brake thruster in development signed for tandem container is now making its own move. lifting. There is also a focus on “EMG is answering the require- Germany’s EMG Automation under the one manufacturer. egy for EMG. The company has for quality and their simple op- condition monitoring systems, ments and needs of the market GmbH is preparing to launch a Since then, EMG’s drive solu- produced more than two million erating principle, which requires which requires sensors to moni- with advanced development of new generation of brake thruster tions have specialised in thrust- thrusters in total, and the physical no electronics or valves. It is very tor relevant parameters, and in- the ELDRO range,” the com- actuators to the market later this ers, which supply the energy to dimensions of EMG products are common for older units to be terface solutions for connecting pany stated. “The new product year. This is likely to be the big- hold fail-safe brakes open, as a widely regarded as an industry rebuilt, a process EMG supports thrusters to customers’ brake lines called ELDROdynamic and gest change in many years to component to brake OEMs that standard. with genuine spare parts and monitoring systems and the ELDROdigital will underline what is a key component used serve a wide range of industrial Moreover, EMG claims that its a network of approved service crane PLC. our thruster-specific solution, in by virtually all the leading brake applications, including container thrusters are the “benchmark for agents. As previously reported, brake order to maintain EMG’s role as OEMs. cranes and materials handling ap- safety, sustainability and longevity What has changed in the manufacturer Pintsch Bubenzer independent dedicated thruster In 2003, EMG’s acquisition of plications. in all areas”, and they certainly market in recent years is that has responded to these demands manufacturer. ELDROdynamic Eltma Hebezeuge Oschersleben Staying as a ‘neutral’, inde- have a reputation in the market the torque requirements for by developing its own design of will be shown for the first time GmbH brought together the EL- pendent thruster manufacturer for long service life. The ELDRO hoist brakes on container cranes thruster, with higher output for at TOC Asia and TOC Europe DRO and ELHY thruster brands has been a very successful strat- and ELHY thrusters are known have increased significantly, due reaching higher brake torque, this year.”

Separately two Gaussin “AGV New deals for Gaussin Performance full electric” AGVs Gaussin Manugistique has an- loré Group’s 20 terminals, 16 of and three fully electric lithium Inox encoders from SICK nounced two contracts with which are in Africa. titanate power packs were due to SICK has launched stainless steel high-resolution, 16-bit incre- the Bolloré Group that will see Gaussin stated that it aims to arrive in Singapore this month, versions of its fully programma- mental encoder, the AFS60 Inox Gaussin offering the Bolloré Blue have the Blue Solutions LMP shipped on a ro-ro service from ble DFS60 incremental encoders absolute single turn encoder has Solutions technology in its ATTs powerpack integrated into its ve- Antwerp to Pasir Panjang Auto- and AFM60 and AFS60 abso- a high resolution of 18 bits, while and other port/logistics vehicles. hicles by June this year, but does motive Terminal 1. The equip- lute encoders, designed for use the AFM60 Inox absolute multi- The first contract covers the not expect any sales before 2019. ment will then undergo final in aggressive outdoor, industrial turn encoder has an even higher use of the Blue Solutions LMP It noted that LMP batteries are acceptance tests by the PSA Sin- or marine environments where resolution of 30 bits. A compact (lithium metal polymer) power- ideal for hot countries, as they gapore Terminals. high resistance to corrosive at- housing makes for easy mount- pack in Gaussin’s existing line-up function normally at high tem- Gaussin also has an order for mospheric conditions is required. ing in tight spaces, and each en- of ATT, AIV and ATM manned peratures due to their solid poly- three ATT full electric vehicles The DFS60 Inox, the AFM60 coder is available with a square or and automated electric vehicles. mer electrolyte. Bolloré Group with three power packs for Rus- Inox and the AFS60 Inox pro- round flange, and solid or blind Under the second agreement, is using the technology in other sian operator SKAT, a subsidiary grammable encoders feature a hollow shaft, to match the appli- Gaussin will work with Bolloré mobile applications. of SKAT Group. The deal in- rugged stainless steel IP67-rated cation specifications. to develop a new electric trac- The new APM 75T is expect- cludes an option for nine further housing, flange and shaft for “High-resolution programma- The new products from SICK tor called the APM 75T that ed to be ready for commercial ATTs with full electric power operation in harsh conditions, ble encoders have revolutionised meets the requirements of Bol- deployment in Q1 2019. packs. such as salt and high-humidity encoder use over the past few tion, teach-in, programming atmospheres and in operating years,” said Darren Pratt, SICK’s and reprogramming of the Inox temperatures ranging from -30 UK product manager for encod- encoders are simple and intui- degC to +85 degC. “They de- ers. “Now, all of their advantages tive, either directly on the de- Intensive liver high-resolution, precision for precision and customisation vice using the SICK handheld motion-sensing performance for are available in Inox encoders, PGT-10-Pro tool or using a PC, pipe work plant and machinery such as port for use where high resistance is the free-to-download SOPAS VOLUME 25 NUMBER 2 • ISSN 1355-0551 cranes and bulk conveyors,” the needed to aggressive or corrosive configuration software, and the Sennebogen has reported that company said. environments.” PGT-08-S (SOPAS interface EDITORIAL: seven 870 mobile materials The SICK DFS60 Inox is a SICK added that configura- unit). PAUL AVERY • EDITORIAL DIRECTOR handlers are now in operation E-Mail: [email protected] for pipe handling at Mülheim BENEDICT YOUNG • MANAGING EDITOR Pipecoatings, which is one of E-Mail: [email protected] the concrete coating contractors Japanese debut for Model 4 MHC VINCENT CHAMPION • CONSULTING EDITOR for the Nord Stream 2 pipeline Konecranes has reported its first said: “MPL has been very im- will deliver the crane with an ad- E-Mail: [email protected] project, following the recent order from Japan for a Konec- pressed by the performance of its ditional overload indicator. JOHN FOSSEY • CONSULTING EDITOR delivery of two 870 E machines. ranes Gottwald Model 4 mo- Gottwald cargo handling equip- E-Mail: [email protected] The cranes are equipped with bile harbour crane. The crane, ment to date. It was logical to Konecranes Gottwald Model 4 MHCs JANE JACKSON • PRODUCTION EDITOR a 261 kW diesel engine and which was ordered via Chikuho opt for a Konecranes Gottwald [email protected] Sennebogen’s proven Green Seisakusho Co. Ltd (CS), will MHC, in order to further expand Hybrid energy recovery system. be dedicated to bulk handling their bulk handling activities.” ADVERTISING: With a maximum range of 20m, at Miike Port Logistics’ (MPL) Since 2003, Gottwald has de- SIMON PESKETT • ADVERTISEMENT DIRECTOR they can handle and stack pipes terminal in the Port of Miike. livered one Model 2 and nine E-Mail: [email protected] up to 15t in weight and 18m in The main cargoes will be coal HMK 170 E mobile harbour MIKE FORDER • COMMERCIAL DIRECTOR length. and coconut husk. It will begin cranes, the predecessor of Model E-Mail: [email protected] Each pipe can be worth up to operations at the end of 2018 2, to nine terminals around Japan. € JAYANA AUSTIN • ASSISTANT ADVERTISEMENT MANAGER 20,000, so drivers need to be MPL has been operating a The new Model 4 is in four-rope E-Mail: [email protected] fully focused. The pipes are care- smaller Gottwald MHC since configuration, and has a maxi- fully lifted from the truck using 2006, handling various cargoes, mum lift capacity of 95t under ADMINISTRATION & CIRCULATION: a hanging spreader or vacuum including bulk with a motor hook, a maximum reach of 46m, GILL TILBURY • OFFICE MANAGER traverse, inspected again, and grab. The new crane will replace and a high-performance grab E-Mail: [email protected] then finally loaded onto wagons an ageing bulk gantry crane. curve. To meet the special re- NICCI VIGORITO • SALES & MARKETING COORDINATOR for further transport. Makoto Aso, president of CS, quirements in Japan, Konecranes E-Mail: [email protected]

ITALY AGENT: EDICONSULT INTERNAZIONALE Telephone: +39 010 583684 Fax: +39 010 566578 E-Mail: [email protected]

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

JAPAN AGENT: HIDEO NAKAYAMA, NAKAYAMA MEDIA INTERNATIONAL INC. Telephone: +81 3 3479 6131 Fax: +81 3 3479 6130 E-Mail: [email protected]

KOREA AGENT: JO, YOUNG-SANG, BUSINESS COMMUNICATIONS INC. Telephone: +82 2 739 7840 Fax: +82 2 732 3662 E-Mail: [email protected]

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4 February 2018 CARGO HANDLING/PORT NEWS

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

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

November 2017 5 PORT NEWS Shanghai port achieves 40M TEU milestone Dover cuts The Port of Shanghai handled over tion as China’s premier box port. Its well ahead of second-placed Shenzhen, According to the port’s management, 40M TEU for the first time in 2017, throughput for the year climbed by a which saw a 5.1% increase (see accom- over 400,000 containers arrived/left truck queues and comfortably maintained its posi- healthy 8.4% to 40.3M TEU, which was panying table). the port by rail last year, and this was up A Knowledge Transfer Partnership Last year was a good one for ports lo- by 60% on its 2016 level. (KTP) with the University of Kent has Leading container ports in China in 2017 cated in the Yangtze River Delta region Elsewhere, Guangzhou, which is cur- helped Dover Harbour Board (DHB) to of China, with Shanghai’s neighbour, rently in fourth place and, like Shenz- cut truck queues by improving the way Port 2017 2016 Growth Ningbo-Zhoushan, posting another ro- hen, is located in the Pearl River Delta, the port forecasts likely traffic volumes Shanghai 40,252 37,133 8.4% Shenzhen 25,202 23,979 5.1% bust Performance. Its volumes were up is also gaining ground on its compa- to ensure it has enough staff on hand to Ningbo-Zhoushan 24,578 21,560 14.0% by a massive 14%. This year could easily triot. Its traffic rose by 8% last year, and process peak flows. The port can handle Guangzhou 20,367 18,858 8.0% see the port overtake Shenzhen to gain its box traffic topped 20M TEU for the more than 10,000 trucks per day, and Qingdao 18,262 18,010 1.4% second position. first time. It is now less than 5M TEU handles around £120B of UK-conti- Tianjin 14,985 14,490 3.7% A major reason for Ningbo-Zhoush- behind Shenzhen. nent trade every year, while the summer Xiamen 10,402 9,614 8.2% an’s success in 2017 was the expansion Meanwhile, whilst Xiamen record- months are extremely busy with touring Dalian 9,739 9,614 1.3% of its intermodal rail offerings. With ed a high single-digit growth rate, cars and coach traffic. Yingkou 6,275 6,086 3.1% new train services started, the port now Qingdao, Dalian and Lianyungang The project, which has achieved the Lianyungang 4,731 4,703 0.6% offers its customers multiple daily con- disappointed, as their box volumes top rating from Innovate UK, the UK’s Notes: Figures in ,000 TEU. Source: China’s Ministry of Transport and Communications nections, and a network spanning 36 grew in the 0.6% to 1.4% range (see technology strategy agency, started in and WorldCargo News data cities in 14 provinces. table). 2016, when the port appointed Dr Cliff Preston, a graduate of Kent Business School, to help it use data modelling and simulation software. By improving its use of data from various sources, such as live traffic data on the motorways and past traffic levels at similar times, it has drastically reduced the use of the Traffic Assessment Project (TAP), which sees freight traffic held out- side Dover using a series of traffic lights. The traffic simulation model is now also used to help predict the requirement of the French border authorities operat- ing in Dover, to ensure traffic through the port is kept moving, improving ef- ficiency, and mitigating the impact of HGVs on the town and its residents. The quantitative methods used in the KTP have also been applied in part of the port’s substantive Dover Western Docks Revival project, in analysing the WHERE space and plant requirements of the new reefer cargo terminal. These successes have seen the project awarded a grade of “outstanding” by the KTP Grading Panel. Only 10% of KTP SPECIAL projects achieve this grade, underlining the impact that the project has had. The KTP between the University of Kent and DHB was set up by Kent Innovation and Enterprise. DHB has now sponsored COMES AS an MSc graduate in the School of Physi- cal Sciences to work for it over the next STANDARD 12 months. New MVII Terberg tractors: Distripark p
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/FUIFSMBOET It is understood that St Petersburg’s outer harbour of Bronka, part of Fenix Tel. +31 348 45 92 11 Investments, will, towards the end of this year, take delivery of its second heavy lift-configured LHM 800 mobile har- bour crane, with a maximum load under hook of 308t, in a further boost to its project cargo capabilities. According to Miroslav Russkikh, Fe- nix’s marketing director, various infra- structure measures will help Bronka to General information: terbergspecialvehicles.com become regarded as the most capable port in the Baltic for handling heavy lift and project cargoes. A second (southern) rail yard will also be developed, with the first phase due for completion in 2020.

6 February 2018 PORT NEWS Jasper terminal delayed further The much-debated Jasper Ocean Termi- JOT looks even further away, and the Beaufort delegations, citizens, stakehold- nal (JOT) received another setback this news has not been well received in Jasper ers or other bodies”. month, when both the Georgia Ports County, where politicians and civic lead- Erickson is adamant that Jasper Coun- Authority (GPA) and the South Caro- ers had been led to believe JOT would ty was “told by Governor Harley to ex- lina Ports Authority (SCPA) announced be needed by 2025. In a letter to state pect and plan for 2025”, but the SCPA significant increases in the maximum representative Shannon Erickson, SCPA claimed this was never an agreed date. container capacity at their existing ter- president and CEO Jim Newsome said Erickson has accused the SCPA of play- minals. that, with the new terminal in Charles- ing games and misleading the county JOT is a planned new box terminal ton plus some reconfiguration of others, and the state over its true intentions, first on the South Carolina side of the Savan- JOT would not, in fact, be needed until delaying JOT on the basis of a slow- nah River. It was subject to years of legal 2035 or later. down in growth at Charleston, and then wrangling between Jasper County, South Erickson wrote an open letter to presenting the Leatherman terminal as Carolina and Georgia over who had the Newsome, saying she was “shocked and vital to meet a sudden increase in busi- rights to develop the facility, before the dismayed how your organisation has ness that JOT could not be developed in three parties reached an agreement that taken action and a stance that unilater- time to serve. “They have deceived and it would be developed by a new bi-state ally affects thousands of people, without strung us along, and now are making ex- With 5M TEU of capacity in Charleston and 10M TEU in Savannah, Jasper Ocean ports authority. so much as a meeting with the Jasper or cuses,” she claimed. Terminal will not be needed until after 2035 The project is being managed by the Jasper Ocean Terminal Joint Project Of- fice, which continues to work on plans and permits. Both the GPA and the SCPA, however, have long maintained that the terminal will only be built when capacity at their existing facilities is ex- hausted. This month, Griff Lynch, GPA execu- tive director, outlined a plan that would double container handling capacity at Savannah’s Garden City terminal to 10M TEU within 10 years. This would be achieved with 42 STS cranes and 200 yard cranes (GPA uses RTGs), plus significant expansion of the intermodal yard. GPA handled over 4M TEU in 2017. Meanwhile, in South Carolina, the SCPA has restated that its total expected capacity after the new Hugh K. Leather- man terminal is completed will increase from 4.2M TEU to 5M TEU by 2032.

Basra in Konecranes@Konecranes Live from Port of Virginia - 2nd batch of ARMG progress cranes delivered for biggest automated ICTSI has opened a new ro-ro facility at container handling project in American history Berth 21 at its Basra Gateway Terminal 1PSUPG7JSHJOJB"3.(DSBOFT&DPFGmDJFOU1PSU (BGT) in the Port of Umm Qasr, Iraq, as part of its Phase 2 expansion at the terminal. Quay and yard areas have been configured for handling oil and gas pro- ject cargoes. As previously reported, Phase 2, set to be completed in stages by Q3 2019, will deliver 400m of new quay with a draught of 14m alongside, a new 30-ha yard area, and a 15-ha secure parking area. On completion, ICTSI will have in- vested in excess of US$250M in BGT, and its lo-lo capacity will have increased to 1M TEU/year. This will include an- other nine RTGs and three more STS cranes to handle ships up to 9,000 TEU. The latest round of development in- cludes the acquisition of a cutter suc- tion dredger, with the dual objective of ensuring strict adherence to the con- struction schedule and maintaining the draught alongside the terminal’s new Photo courtesy of Mirko Novak, and existing berths. “We are listening to Konecranes Delivery Engineer, our customers, and are proactively meet- Port of Virginia ARMG deliveries ing their needs,” said Phillip Marsham, BGT executive officer. “The second phase expansion will al- low us to respond immediately, to scale needs, and deliver added flexibility to the whole container handling operation, LIKE CLOCKWORK with diverse benefits flowing to our cus- tomers.” Loading of the second batch of 6 Automated RMG (ARMG) cranes bound for Once Phase 2 of BGT is completed, ICTSI’s the Port of Virginia, USA, began at a European port at 7:00 on 20.2 and was investment in the Port of Umm Qasr will have exceeded US$250M, and lo-lo capacity finished on 22.2 at 17:00. Meanwhile, the first 6 ARMG cranes are being will be 1M TEU/year erected and commissioned in Virginia, on schedule despite some rough weather. The first finished cranes have been driven at full speed. It’s all going like clockwork, and the Port of Virginia is very pleased. The crane manufacturing, delivery, erection and commissioning will go ahead, full-steam, until all 86 cranes are delivered.

Find out more about Konecranes automated container cranes at konecranes.com

February 2018 7 PORT NEWS

More for Wilhelmshaven CHEC blacklisted in Bangladesh Germany’s only natural deepwater 7,000 different types of parts will be port, JadeWeserPort (JWP) in Wil- shipped, for Audi and VW cars and VW China Harbor Engineering Company nance Ministry to bar the company from cludes a “marine drive”. Should any ir- helmshaven, is slowly gaining new vans. The expected load is 250 con- (CHEC), whose main business is build- future opportunities. regularities be discovered, then further customers and more volume, with Eu- tainers per week, or 12,000 40fts per ing transport infrastructure, including In a statement, Abul Maal Abdul action could be taken. rogate just reporting that its Container year. The containers are destined for ports, is no longer allowed to bid for con- Muhith, Bangladesh’s minister of fi- As Siddique handed the money to the Terminal Wilhelmshaven concession 25 locations in 15 countries, including tracts in Bangladesh. The government’s nance, said: “We had to drop the Dhaka- Treasury, who in turn returned it to the handled around 550,000 TEU in 2017, China, Mexico, the USA and India. decision has been taken on the back of Sylhet Highway contract because the Chinese Embassy, he will not face pros- up by 15.1% on 2016. The packing centre will occupy alleged payments (bribes) made to the party came up, in the very beginning, ecution. It seems that payments of up to Recently, Nordfrost opened a sec- 40,000 m2 on a total area of 100,000 country’s former secretary of state for with an offer of a bribe. The govern- US$5M could have been involved. ond new cold store at the adjacent lo- m2. The contractor has not yet been communications, Muhammad Siddique. ment has decided to fund the four-lane CHEC has established itself as one of gistics park, and now German car giant appointed, but work will commence CHEC had secured a contract to ex- expansion work on its own.” the largest civil engineering and con- Volkswagen AG has announced that its later this year. Thomas Zernechel, pand and improve the 226 km Dhaka- It is understood that CHEC’s other struction companies in the world, with Volkswagen Konzernlogistik GmbH director of VK, said: “The Wilhelms- Sylhet Highway, and this agreement has projects in Bangladesh are being inves- maritime and port project a key sector & Co KG affiliate (VK) will build a haven location is of strategic impor- now been terminated. Although there is tigated. These include the more than for it (see p17-18). new packing centre there. Automobile tance for Volkswagen. From there, we little evidence to suggest that the bribes US$500M contract to develop the Port parts will be packed and shipped from can ship parts on the largest vessels facilitated this deal, they have been of Payra and the construction of a 160 as early as the summer of 2019. Up to worldwide.” deemed by the administration as inap- km, four-lane highway between Cox’s propriate, hence the decision by the Fi- Bazar and Sitakunda, which also in- Swedish BRI project off China Communications Construction Group (CCCC) has pulled out of a pro- ject to develop a container port in Brof- jorden, in the Lysekil Municipality in western Sweden, around 100 km north of Gothenburg. The port today com- prises five product jetties and one crude oil jetty, all operated by the Preemraff Refinery. Our ASCs now The container terminal was pro- posed within the scope of China’s ‘Belt and Road’ initiative (BRI). CCCC had teamed up with Hong Kong’s Sunbase come with wings. International Holdings for the devel- opment. However, the scheme was op- posed by the local community, and 3,000 residents in this sparsely populated area signed a petition against it, with Introducing the new Kalmar RMG. concerns raised about the environmen- tal impact and a potential security risk concerning the Chinese military. The Swedish defence minister, Peter Hultqvist, indirectly supported this line, arguing that the national government should have influence over foreign in- vestments and acquisitions that may af- fect national security. China has urged European countries to consider Chinese investments more positively. However, studies by US and European bodies indicate that non- Chinese firms are not getting fair access at Chinese-financed BRI infrastructure projects, whereas awards for BRI pro- jects financed by western and non-Chi- nese Asian banks are more even-handed. Furthermore, Sweden does not need another container terminal, and is a de- veloped country, so BRI is hardly appro- priate. Last year, a CCCC proposal for a new container terminal and logistics park in Hamburg’s Steinwerder area was roundly rejected by the port community, which embarrassed the port authority, as it had awarded the scheme a prize. Savona for Alstom French train maker Alstom has selected the Port of Savona in northwest Italy to ship out train sets for Algeria. The com- pany is supplying 17 six-car sets (includ- ing the powered end) to Algerian Rail- ways (SNTF), under a contract placed % in July 2015. The shipping contracts run 50 from January through to August this year. The Coradia dual-mode (diesel, 25 kV electric) trains travel under their discount own power from the Alstom plant at Reichshoffen in the Alsace region of France to Savona, where they arrive at on labour costs. Savona Terminal Auto, now part of the Grimaldi Group. There, they are split into two 55m- Kalmar’s new range of RMGs, benefit from the cumulative long sections. The sections are then experience of Nelcon, a pioneer in RMG cranes and Kalmar, loaded by a bimodal shunt loco into the with nearly 50 years of delivering innovative rail mounted ship, using a particular loading method systems globally. Our RMG cranes are built on a platform devised by Savona Port Authority 10 that can be tailored to meet your exact specifications. years ago when the port was used to ship They are ideal for high density stacking in terminals or in out trains from Stadler in Switzerland. The procedure involves the installation intermodal applications and are reliable and highly efficient. of special plates that facilitate a perfectly Kalmar, making your every move count. aligned rail connection between the kalmarglobal.com dock and the ship’s ramp onto tracks laid in the hold. The trains are being shipped to the Port of Algiers by Algerian shipping line CNAN Med, using the chartered stern- access ro-ro vessel MARFRET NIOLON.

8 February 2018 PORT NEWS

January 2018 9 PORT NEWS

10 January 2018 SHIPPING NEWS Vinalines plans IPO Far East/Middle East service launched Singapore-based AAL and Seoul- stress that expansion was already ings between Asia and the west. customers through an expanded headquartered Hyundai Mer- on the cards. “Our intention is to These same customers can now collaboration. This will be thor- chant Marine (HMM) have start- expand the service to six vessels, take advantage of our exciting oughly reviewed, as and when.” ed a fortnightly Far East/Middle with an additional A-Class ves- new cooperation with AAL.” The past few years have seen East multipurpose liner service. sel entering service by 2019,” he He did not rule out further deals, considerable collaboration take It uses four 30,100 dwt 640-class explained. “As more global pro- saying: “Should there be mean- place in the multipurpose ship- ships, operated by HMM, and a jects become active in 2018, and ingful opportunities to generate ping industry, with more set to single 31,000 dwt A-class vessel, multipurpose cargo volumes rise further value for our respective come (see p42-43). contributed by AAL. The service – as has been widely forecasted offers regular calls at ports in Chi- – we aim to be in pole position An AAL vessel loading cargo in South Korea na, South Korea, Japan, Indonesia, to competitively service this de- Singapore and UAE, Saudi Arabia, mand, whatever the cargo and Bahrain and Oman. wherever the destination.” Vinalines will change its management structure following its initial IPO, and “By pooling our resources with In addition to the new service, is keen to establish ventures with international shipping lines HMM, we can each offer more HMM has agreed a global coop- comprehensive service portfolios eration agreement with AAL that Vietnam National Shipping Lines these would be needed to further with improved frequency, capac- will see HMM able to load cargo (Vinalines) has submitted an eq- expand the group’s access to the ity, coverage, and economies of on its various tramp and semi-lin- uitisation plan to the government, capital markets, improve its busi- scale for our customers,” ex- er services. These cover the Amer- and will launch an initial public ness efficiency, and allow it to push plained Namir Khanbabi, char- icas, Europe, the Middle East and offering (IPO) for 35% of the ahead with its new strategic plan. tering and operations director of Asia, and use a wide range of mul- company in mid-2018. Shares in One of its main objectives for AAL. He stressed that, apart from tipurpose ships, many of which the joint-stock company will be 2018 is to become more interna- working together with tonnage, have heavy lift capabilities. available to both domestic and tional, with Vinalines keen to set pricing and bookings would be Commenting on the arrange- foreign investors. It is expected up ventures with international independent, with each carrier ment, Seung-il Park, general to have a capitalisation of about shipping lines, logistics companies maintaining separate commercial manager of HMM, said: “We’ve VND13.9T (US$630M). and cargo owners, including min- teams and documentation, and established a leading position with Commenting on the IPO, ing companies. aggressively selling their brand Korea’s dynamic energy and in- Nguyen Canh Tinh acting general In 2017, Vinalines posted rev- names. frastructure industries, operating director of Vinalines, said: “From enues of about VND16T, with Khanbabi was, though, keen to regular multipurpose cargo sail- being on the verge of bankruptcy its two largest business divisions five years ago, with negative eq- – maritime transport services and uity of over VND5T, Vinalines has port/terminal activities – generat- transformed itself, and is now eli- ing VND7.1T and VND4.4T, re- gible for an IPO, with total assets spectively. A profit of VND515B of over VND18T.” was posted, according to Tinh. He explained that changes The company is the largest do- would be made to the company’s mestically owned maritime trans- organisational structure and man- port company in Vietnam, with its agement team once the initial IPO diverse fleet of ships carrying 60% had been completed, stressing that of the nation’s trade. HMM’s independent approach on speed Seoul-based Hyundai Merchant gapore, Colombo, Rotterdam, Marine (HMM) is breaking Hamburg, Southampton, Singa- ranks, and will launch an inde- pore, Hong Kong, and return to pendent and “back to normal Busan. speed” service in the Asia/Eu- In particular, the carrier not- rope/Asia trade in April. Cur- ed the highly competitive tran- rently, HMM buys space from sit times that would be offered the 2M alliance (Maersk/MSC), on the new service, including which operates six strings a Busan-Rotterdam (30 days), week in the trade. Busan-Hamburg (32 days) and HMM’s Asia-North Europe Shanghai-Rotterdam (28 days). Express (AEX) service will use In part, the new operation has small Panamax size vessels of been started to accommodate 4,600 TEU capacity on the loop, HMM’s rising traffic levels. Ac- with 10 units being assigned to cording to the carrier, its liftings the schedule. It will encompass increased by 30% in 2017 to 4M calls at Busan, Shanghai, Ning- TEU, with the Asia/Europe/ bo, Kaohsiung, Shenzhen, Sin- Asia trade a major contributor. Car-carrying firms face more fines WE ARE YOUR FLEXIBLE PARTNER WE ARE YOUR FLEXIBLE PARTNER The world’s leading car carry- in bars, restaurants or other social ing companies have been fined gatherings, and were in contact €395M by the European Com- over the telephone on a regular mission (EC) for anticompetitive basis. “In particular, they coordi- operating and pricing practices. nated prices, allocated customers, According to the EC, CSAV, K and exchanged commercially sen- Line, Mitsui OSK Lines, NYK sitive information about elements Line and WWL-Eukor ran a car- of the price, such as charges and tel in Europe’s car-carrying trades, surcharges added to prices to off- extending from October 2006 to set currency or oil prices fluctua- September 2012. It covered cars, tions”, the EC statement read. trucks, and large vehicles, such as “The carriers agreed to main- construction equipment, tractors tain the status quo in the market, and other farm machinery. and to respect each other’s tradi- “We will not tolerate anticom- tional business on certain routes petitive behaviour affecting Euro- or with certain customers, by pean consumers and industries,” quoting artificially high prices, or stressed Margrethe Vestager, the not quoting at all, in tenders is- EC commissioner in charge of sued by vehicle manufacturers.’’ competition policy. “By raising As each carrier owned-up to component prices or transport the illicit practices, the EC dis- costs for cars, the cartels ultimate- counted NYK’s and WWL-Eu- ROLL TRAILER / TERMINAL TRAILER ly hurt European consumers, and kor’s fines by 30% (to €141.8M adversely impacted the competi- and €207.3M, respectively), NOVATECH IS MORE THAN STANDARD tiveness of the European automo- CSAV’s by 35% (to €7M), and K € Feel free to call us +45 9816 5009 tive sector, which employs around Line’s by 60% (to 39.1M). » Contact us and we will suggest the suitable equipment for you. or visit us at www.novatech.dk 12M people in the EU.” As it was Mitsui OSK Lines The EC’s investigation revealed that revealed the existence of the that the sales managers of the five cartel, it avoided a fine that would carriers met at each other’s offices, have amounted to €203M.

February 2018 11 SHIPPING NEWS ULCVs from a different angle

Recent analysis by DynaLiners has Table 1: ULCV fleet and ships on order by carrier revealed some interesting trends Carriers Existing On order Total Ø TEU Total TEU concerning the world’s fleet of CMA CGM 74 19 93 13,700 1,270,000 ultra large container vessels (UL- CoscoSL 67 29 96 14,900 1,427,000 CVs), the generic name for box Evergreen 20 11 31 16,200 501,000 ships of 10,000+ TEU. DynaLin- Hapag-Lloyd 45 - 45 13,700 618,000 ers, part of Netherlands-based Hyundai 17 2 19 11,800 224,000 consultancy firm Dynamar, has IRISL - 4 4 14,500 58,000 tracked all ULCVs, both those Maersk Line 86 11 97 14,800 1,434,000 in operation and on order, and MSC 90 20 110 15,400 1,689,000 has also checked the distribution ONE 29 13 42 13,800 580,000 of the ships over individual op- PIL 3 9 12 11,900 143,000 erators, by number, size and type. Yang Ming 16 5 21 13,900 292,000 As of 1 January 2018, 451 UL- ZIM 4 - 4 10,300 41,000 CVs were in operation, while NOO - 6 6 13,700 82,000 another 129 were on order for Grand Total 451 129 580 14,400 8,361,000 delivery into 2020. MSC had de- Notes: Data correct at 1 Jan 2018. NOO = Non-operating owners. ployed the largest number (90), Source: Dynamar/DynaLiners and also has the largest ULCVs on order (11 x 23,350 TEU). Of the biggest ULCV opera- the pipeline, and is considering Maersk Line, which was the tors, CMA CGM currently de- 20 more, while Taiwanese com- first carrier to develop and de- ploys 74 such ships, including 20 patriot Yang Ming has 21. Six ploy an ULCV with its 15,500 originating from APL. Its order units are being built for the ac- TEU EMMA MAERSK (initially rat- book comprises 9 x 22,850 TEU count of non-operating owners. ed at 11,000 TEU in 2006), came leviathans, which are expected By February 2018, another 10 second with 86 existing vessels, of to become the first ever LNG- or so ULCVs were expected to which 13 were inherited from its powered ULCVs. have been delivered and added to recent Hamburg Süd acquisition. Thanks to its takeover of the existing fleet, with the total Maersk has 11 units on order, in- UASC (22 ULCVs), Hapag- number remaining unchanged. cluding six of 20,600 TEU each. Lloyd is leading the next tier, On a final note, DynaLiners Cosco Shipping Line cur- with 45 ships (none on order), pointed out that all ULCVs larg- rently uses 67 ULCVs, which followed by Japan’s ONE (the er than 18,000 TEU (Megamax will be joined by another 29 over combined K Line, MOL and ships) invariably operate in the the next two years. A total of 22 NYK). high-density North Europe-Far existing units and 27 under con- Referred to by DynaLiners as a East trade. The average capacity struction came from China Ship- “staunch loner”, Evergreen Line of all ships of all sizes currently ping Line, incorporated in 2016. has 31 ULCVs operating and in operating here is 15,000 TEU.

Table 2: Distribution per carrier of the various types of ULCV Carriers SNP NP NPP 18+ 22+ Existing On order Total Ø TEU Total TEU CMA CGM 28 28 25 3 9 74 19 93 13,700 1,270,000 COMBi-SC Cosco SL 9 39 20 28 - 67 29 96 14,900 1,427,000 Evergreen - - 20 11 - 20 11 31 16,200 501,000 Hapag-Lloyd - 28 11 6 - 45 - 45 13,700 618,000 Hyundai MM 1 18 - - - 17 2 19 11,800 224,000 Straddle Carrier IRISL - 4 - - - - 4 4 14,500 58,000 Maersk Line 13 36 17 31 - 86 11 97 14,800 1,434,000 MSC 4 43 32 20 11 90 20 110 15,400 1,689,000 ONE - 11 25 6 - 29 13 42 13,800 580,000 PIL - 12 - - - 3 9 12 11,900 143,000 Yang Ming 1 - 20 - - 16 5 21 13,900 292,000 ZIM 3 1 - - - 4 - 4 10,300 41,000 NOO 2 - 4 - - - 6 6 13,700 82,000 Grand Total 61 220 174 105 20 451 129 580 14,400 8,361,000 Notes: Data correct at 1 Jan 2018. NOO = Non-operating owners. Five types of ULCVs: SNP = Sub New Panamax (17-18 boxes wide across deck - BWAD), NP = Neo Panamax (19 BWAD - can use Panama Canal), NPP = New post-Panamax (20-21-BWAD - cannot use Panama Canal), 18+ = 18,000 TEU+ (23-BWAD), 22+ = 22,000 TEU+ (= 24 BWAD). Source: Dynamar/DynaLiners Seamless Italian calls dropped Last October, CMA CGM intro- and Port Vendres, France’s most VGM data duced a new ro-ro service linking southerly port, very close to the the ports of Tangiers and Casa- Spanish border, in spring this year. for Dutch blanca with Marseilles and Genoa. Due to poor uptake from the Portbase, which runs a Port The new Morocco Express market, the line has drastically Community System in the Neth- service comprised a fixed-day cut back on services. All that has erlands, has teamed up with weekly service linking Casablan- survived is a weekly run between Germany-based Portrix Logistic ca, Tangiers and Marseilles, and a Marseilles and Casablanca us- Software to offer Portrix’s VGM fixed-day weekly service calling ing the 5,400 dwt ro-ro freighter solution to the Dutch shipping at Tangiers, Marseilles and Genoa. AKNOUL, with both Tangiers and community. The Portrix VGM The first service entailed three Genoa dropped. application captures all relevant departures a week from Mo- In a second development, data automatically and securely, rocco, and the second involved CMA CGM has dropped Italy sharing it electronically with car- two weekly sailings from Europe. from its EURAF 4 West Africa- riers, thus ensuring legal obliga- Transit time in each direction was Mediterranean lo-lo service, op- tions are fulfilled, and containers around 36 hours, and each sailing erated in conjunction with Span- Reduce your operating costs, increase are not left standing on the docks. could cater for up to 180 trailers. ish carrier Marguisa (which has Henning Voss, co-founder and The services offer an alternative one ship in the service, and calls it CEO of Hamburg-headquartered to long-haul trucking through EGEX). EURAF 4 has been up- storage capacity and improve safety Portrix, said: “Portbase connects Spain and CMA CGM estimated graded from eight to nine 3,000

the players in the Dutch logistics they would save 64,000t of CO2E/ TEU vessels, and more African market, enabling everyone in the year. It was also planned to intro- ports have been added, at the ex- with the COMBi-SC, perfect for handling logistics chain to share and access duce a service between Tangiers pense of Genoa and Livorno. relevant information. By integrat- ing our application into Portbase’s containers and oversized loads. Notification Verified Gross Mass service, they have a simple means On deck with Hyundai of exchanging it, instantly con- Hyundai Merchant Marine US ports within one day after necting forwarders to every car- (HMM) had transported over discharging begins. rier they wish to partner with.” 10,000 TEU on its US Premium The service comes at a 10- Portrix, which was established Service by the end of January 20% premium, “but customers +353 47 80500 in 2001, can count five of the 2018. will get guaranteed faster and world’s top 10 forwarders as cus- Premium Service is the busi- reliable service through HMM’s tomers for its established Global ness class on HMM’s PS1, PS2 excellent on-time service & IT Price Management (GPM) soft- and PN2 services from Asia to technology”, noted HMM. ware. Other recent developments the US West Coast. It is claimed HMM plans to increase an- combilift.com include the launch of a demur- to offer “reliable cargo load- nual container volume on its US rage and detention (D&D) ap- ing space”, even in peak season, Premium Service from 20,000 plication, and the Tender Assistant and vessel loading positions to TEU currently to 50,000 TEU GPM extension. achieve container availability at in the near future.

12 February 2018 INTERMODAL NEWS Barge link 75% growth for UTLC Container operator United Transport volume to 1M TEU. This month, it trialled and Logistics Company (UTLC) carried signed Memoranda of Strategic Coop- During February, a barge loaded with 12 175,000 TEU on 2,012 trains in its Asia- eration with JSC United Transport and containers successfully sailed between Europe-Asia services operating between Logistics Company, Kaliningrad Railway the port of Chennai and the port of Pu- Kazakhstan, Russia and Byelorussia last (a branch of JSC Russian Railway), JSC ducherry, a distance of 70 nautical miles. year, an increase of 75%. Kaliningrad Sea Trading Port LLC, and The service is being trialled as an al- “The amount of regular routes in the Baltic Stevedoring Company, to cre- ternative to road transport, and follows the UTLC services in 2017 reached 48, ate a new corridor on the Eurasian tran- the dredging of the river mouth near the while at the beginning of 2016 there sit route through Kaliningrad. fishing harbour of Thengaithittu. It also were 19,” UTLC stated. “The company “Execution of the Memoranda of meets the Indian Government’s objec- sent 15 container trains daily.” This fig- Cooperation between JSC, UTLC and tives of taking traffic off the roads, and ure includes 115 XL-train services us- Kaliningrad Railway starts a new direc- using sea services more effectively. The ing up to 100 wagons. A better corridor tion of cargo transportation by UTLC”, port of Chennai suffers from congestion, through the cross border stations of the said Aleksey Grom, president of UTLC. with highways to/from the port’s hinter- Kaliningrad Region played a significant “Port, sea and railway are getting united land heavily used. part in the increase. to create new products aimed at the de- Puducherry is well positioned to han- UTLC is pushing to increase its rail velopment of transit in general.” UTLC carried 175,000 TEU on its Asia-Europe-Asia rail services last year dle cargo for various cities within the state of Tamil Nadu, and its roads are being improved to ensure this happens more efficiently. Currently, the port has the capacity to handle approximately 300,000 tpa of cargo, but this can be ex- panded to 1 Mtpa. Puducherry had been closed for more than 12 years as a result of siltation at the The world’s largest river mouth. It is hoped that this move will give it a new lease of life. Chennai is India’s largest port in the Bay of Bengal. In its 2017 fiscal year, which ended on 31 March 2017, the reachstacker port handled 1.49M TEU. Port of Riesa hemmed in Almost 43,000 TEU were handled in 2017 in the German Elbe River port of Riesa, located in Saxony, an increase of 13% on 2016. The container business is booming, but Heiko Loroff, who runs SBO Sächsische Binnenhäfen Ober- elbe GmbH (Saxony Upper Elbe inland ports), said that the port is now at the limit, and is already having to shift con- tainers by truck from the Nordkai to the Südkai, and this is very costly. A new terminal with a capacity of 34,000 TEU was planned some time ago, and should have been operational already. However, only the access road Lift capacity: and a large hall for container repairs have been completed. The state of Sax- ony, which owns the SBO and its ports in Dresden, Torgau, Dessau, and in the 152 tons Czech cities of Lovosice and Děčín, had a total investment budget of €35M in 2017, of which €22M was awarded for the new Riesa terminal. It will have two cranes and six railway tracks. However, objections from environ- mental groups have hindered the process, and the planning documentation was found to be insufficient and had to be N.C. Nielsen in Danmarke presents the world’s largest reachstacker reworked. Loroff said the revised applica- tion should go in by the end of February, The machine has been customised for the wind turbine industry and other industries and is capable of mobile lifts of so that work could commence this year. It should take no more than 12 nacelles, towers and wings used for the vast wind turbines. months to complete, unless there are fur- ther delays. Riesa will then get two new N.C. Nielsen is also the supplier of other special heavy-duty equipment, e.g. a 100 tons reachstacker, a 85 tons telescopic block train services from Transfracht and Emons Rail to the North Sea ports, in forklift truck for wind turbine towers, the compact NCN 6500 with up to 6.5 tons traction and gantry cranes from Combilift addition to the five existing connections. that can be controlled remotely to turn goods maneuverable. SE Asia MoU Johor Port Berhad (JPB), a wholly owned subsidiary of the MMC Group, has signed an MoU with PT Pelabuhan Indonesia I (Pelindo I), which operates ports in the Sumatera and Aceh prov- inces of Indonesia. The initial objective of the MoU is to improve connectivity between the two port groups, by establishing facilities and systems to support regular ro-ro services. It is hoped to have the first string up and 6,5 tons towing truck 85 tons telescopic forklift truck Scheuerle/Nicolas SPMT trailers Combilift gantry cranes running by the end of 2018, and World- Cargo News understands it will link Tan- jung Beruas in Malaysia with the port of Dumai in Indonesia. The ships will load mainly trucks, with some cars. Accord- ing to companies close to the situation, the new service will cost an estimated Contact us today MYR10M (US$26M) to set up. The MoU is also designed to foster closer collaboration between the two port groups in areas such as operations, +45 99 83 83 83 www.nc-nielsen.dk z Denmark training, logistics services and port de- velopment.

February 2018 13 INTERMODAL/CONTAINER INDUSTRY NEWS

14 February 2018 INTERMODAL NEWS SGR extension deal… Spectra CY for Colombo Rail costs The governments of Tanzania and up Rwanda to its project, so Kigali may Within the scope of their Spectra Lo- Pacific and Indian subcontinent, said Canada’s Port of Sydney in Nova Scotia Rwanda have signed an agreement on be reluctant to help finance two railways gistics partnership, GAC Logistics Sri that the country’s demand for third-par- has released a report by Hatch Consult- the extension of Tanzania’s new standard to East African ports at the same time. Lanka and Hemas Transportation have ty logistics services has been bolstered by ing on the cost of providing a reliable in- gauge railway (SGR) to the Rwandan However, having two railways and ports opened a new 30,000 m2 CY with a ca- global trade growth, and Sri Lanka’s ris- termodal connection from the planned capital, Kigali. The project should mean (Dar es Salaam and Mombasa) to choose pacity of 6,000 TEU at their joint inte- ing importance as a sourcing base for in- Novaporte terminal to the CN rail net- that Dar es Salaam will strengthen its po- from may be enticing for Rwanda’s grated logistics facility in the Muthura- ternational buyers in South Asia. “With work in Truro. sition as the port of choice for Rwandan President Paul Kagame in the long run, jawela Industrial Zone in Wattala. the Spectra Logistics facility and the Around 40% of the 229-mile line cargo. Financing options will be con- as it would almost certainly drive down Built on 15 acres of land within the gamut of freight and logistics services linking Sydney to Truro is currently not sidered over the next few weeks, with a transport costs for Rwandan traders. logistics city designated in the govern- that we provide, we are well-placed to in service. view to a tender being launched by the The Tanzanian Government is keen to ment’s Western Region Megapolis Mas- meet this growing demand,” he said. Earlier, the cost of restoring the line middle of this year. oversee the construction of a spur line to terplan Project, the Spectra Logistics Niranjan Nallaratnam, CEO of Spec- had been estimated at around C$30M, As with the similar project in neigh- Rwanda’s southern neighbour, Burundi, facility is strategically located between tra Logistics, said: “Once the DC is com- but Hatch concluded it would cost bouring Kenya, the new line is com- while another section will run from Port of Colombo and Bandaranaike In- pleted, Spectra Logistics will become C$42.6M just to bring the line up to monly known in Tanzania as the SGR. Isaka to the second biggest city in Tan- ternational Airport, away from residen- one of Sri Lanka’s biggest integrated Class I standard, while the cost of up- The current main railways of both coun- zania, Mwanza, on the southern shore of tial areas. It is said to be fully equipped logistics providers, offering end-to-end grading it to support Class III condi- tries are narrow gauge. It is being com- Lake Victoria, where new cargo services for container repairs and other depot logistics services to support a scalable tions, which would allow double-stack missioned by the Tanzanian Govern- are expected to connect Kenya, Tanzania work. and cost-effective supply chain for our trains to run at 40 mph, is estimated at ment in five phases, with the final phase and Uganda. Lars Bergström, GAC group VP, Asia customers.” C$103M. being the 407 km section from Isaka in Tanzania to Kigali. It is expected to cost between US$800M and US$1B to build. The two governments hope that con- struction work will begin before the end of this year. Tanzania’s President John Magufuli said: “We want the construc- tion of the railway line to start immedi- ately because the feasibility studies and all other preparations are complete.” DFKF>G According to figures from the East African Community (EAC), it costs an average of US$4,990 to transport a 20ft container between Rwanda and the Port @kËj8cc8YflkGXjj`fe# of Dar es Salaam, compared with an av- erage of US$2,504 to move a container to the nearest international port in sub- Saharan Africa. It is hoped that the new railway will cut this figure by at least Gi\Z`j`feG\i]\Zk`fe US$1,500. Nairobi hopes to extend the Kenyan SGR into Uganda, Rwanda, and possi- Official bly other countries in landlocked cen- tral Africa. Although the first section of Partner Kenya’s SGR is already up and running, Tanzania has beaten Nairobi in signing ...Kenya ICD rule change The Kenyan Government has taken its support for the new Mombasa-Nairobi railway to another level, and announced that all cargo passing through the newly expanded Embakasi inland container de- pot (ICD) must be moved by rail, rather than road. Cargo traffic on the line is believed to have been lower than an- ticipated since regular services began at the start of January, despite the fact that promotional tariffs are on offer until 5 April. In addition, in early February, the Kenya Ports Authority (KPA) reduced handling charges for 20ft containers at Embakasi from KES10,506 (US$103) to KES8,160 (US$80), in an attempt to boost business. The Kenya International Freight and Warehousing Association (Kifwa) has appealed to the KPA to change its policy on ICD use. In an open letter, secretary Jf`j=C< $9F general Ahmed Shimbwa stated that Kifwa was “shocked that all un-nomi-  nated containers consigned to import- ers up country have to be railed to ICD Embakasi by SGR for final clearance”. He continued: “Whilst our association is fully supportive of SGR becoming a success, we must point out that any business given to SGR should be on a voluntary basis – that is, ‘willing buyer, willing seller’, and not by force.” The or- ganisation has threatened legal action to stop the practice. Catherine Mturi-Wairi, managing director of the KPA, countered: “We, together with Kenya Railways, have en- gaged and continue to engage all indus- try players to ensure that the SGR is a success in terms of economies of scale and cost-reduction in the transport and logistics sector.” Kifwa has also complained that the cost of storing containers is higher at the NEW CONTAINERS ICD than at the Port of Mombasa. Kifwa chairman William Ojonyo said that ANY TYPE • ANY VOLUME • ANY LOCATION agents wanted to have 30 days of free storage at Embakasi, up from just four days at present. It has also been claimed in Kenya that the KPA is deciding whether www.flex-box.com nw@flex-box.com some containers should be processed at Mombasa or Embakasi, based on its own priorities, rather than those of customers.

February 2018 15 CONTAINER INDUSTRY NEWS

ers. “Bulk liquid is the last fron- tier of containerisation – some- 40ft flexitanks in reefers thing ISO tanks were never really able to deliver – and we can only CMA CGM, which claims to be Liqua is headquartered in Tur- capacity ranging from 12,000 to be happy if, now, shipping lines the second largest reefer carrier key, and had earlier developed 24,000 litres,” CMA CGM stat- are willing to look into the reefer in the world, has expanded its the “R-Flex 20” 20ft reefer flexi- ed. “Available on reefer contain- market,” said Bruno Silva, man- service offering to include liquid tanks for transporting liquids in ers of 40ft, REEFLEX is installed aging director of BeFlexi. cargo in a flexitank system. Its reefer containers. It has also de- in just three minutes. Thanks to Silva noted that there are two temperature-controlled system veloped an “R-Flex 40ft” version its external pumping system and main reasons why some lines is called REEFLEX, and was de- of the flexitanks, exclusively for adapted design, the bag is filled currently only accept flexitanks veloped in partnership with Te- CMA CGM. and emptied in 35 minutes. in 20ft dry containers. One is conja, a German expert in juices, “REEFLEX allows for the REEFLEX represents an ideal al- safety, as retention systems have and Liqua, an expert in packag- transportation of liquids (juices, ternative to breakbulk, and it will only been tested in 20ft contain- ing solutions for the transport of milk, compotes, syrup and all allow exporters and importers to ers, and the other is that the risks liquids. kind of oils) in a single bag with a carry their goods by containers, of damage associated with flexi- tanks have a higher cost with 40ft CMA CGM is now carrying liquids in reefers using 40ft flexitanks reefers. “Since a number of play- ers – including BeFlexi but also thus improving the conditions of containers, and in particular the a number of manufacturers, op- DLL Fleet Solutions transportation and delivery.” damage they can cause to con- erators and shipping lines, under Using flexitanks inside a reefer tainers as the side walls are bulged the COA umbrella – have been container enables the cargo to be out by the pressure from liquid working and pushing hard for maintained to a precise tempera- cargo. Some carriers do not al- higher standards and better safety, +DQGOLQJHƬFLHQW ture of between -35 degC and low flexitanks in 40ft containers. the number of incidents with +20 degC. CMA CGM also not- Liqua claims to have overcome flexitanks has been reduced dras- ed that the flexitanks are recycla- these concerns with a design that tically,” noted Siva. “So it’s great ƩQDQFLDOVROXWLRQV ble, meet “the highest level of hy- retains the liner bag, so it does news that so many people have gienic and safety constraints”, and not touch the sides of the con- been working hard on making can be filled and emptied without tainers, or require a bulkhead to reefer flexitanks available. This is for the Ports industry a person needing to be present. be fitted at the doors. the second announcement of a There is an ongoing debate CMA CGM’s move is very shipping line, after Maersk Line about the use of flexitanks in encouraging for flexitank suppli- launched the LiquiCool.”

'//LVDJOREDOnjQDQFLDOVROXWLRQVSDUWQHU Bertschi doubles in Singapore ZRUNLQJLQPRUHWKDQFRXQWULHVDQG Chemical logistics specialist and of Antwerp, and the area is being the business processes. “Digit- VSHFLDOL]HVLQWKH3RUWV+DQGOLQJVHFWRU tank container operator Bertschi reconstructed to create a logistics ised transparency in the logistics :HFROODERUDWHZLWKǍHHWFRPSDQLHV has doubled the capacity for the hub for chemical products. The chains will enable us to further storage of dangerous goods at its first phase, currently underway, improve our service quality for WRHQDEOHEXVLQHVVHVWRREWDLQDQGXVH hub in Singapore to 50,000 pallet will cater for imports, handling our customers, and to optimise WKHHTXLSPHQWWKH\QHHGWRFRQWULEXWH positions. A tank container clean- and storage of plastics from over- our internal processes,” said PHDQLQJIXOO\WRWKHZRUOG7RXVOHDVLQJLV ing station will be added to the seas. This should be ready shortly. CEO Hans-Jörg Bertschi, who range of services this year, which Helped by an acquisition in is stepping aside from this role in PRUHWKDQMXVWOHQGLQJPRQH\,WšVDERXW already includes drum filling, mid-2017 of an undisclosed August this year, with Jan Arnet WKLQNLQJWRJHWKHUWRnjQGRULJLQDOLQWHJUDWHG storage and distribution of liquid party in Belgium, turnover grew as his appointed successor. The njQDQFLDOVROXWLRQVWRVXSSRUWWKHHQWLUH chemicals throughout South East by 20% last year to CHF900M company currently employs 40 Asia. (€777M). “We have acquired a software developers, and will be DVVHWOLIHF\FOHRI\RXUHTXLSPHQWǍHHW Bertschi will also expand its logistics services provider spe- recruiting more this year. container fleet by more than cialising in freight forwarding Mr Bertschi, who is also presi- See what counts. 2,000 units. Currently, the Swiss- and freight management for the dent of Hupac, added that his based company has a fleet of chemical industry with its head company coped with the seven- 32,000 tank and silo containers, office in Antwerp, and the focus week Rhine rail corridor disrup- 1,100 trucks, and a stake in 30 is on global maritime shipments,” tion (Rastatt) remarkably well. container terminals and depots. stated Bertschi. Around 25% of Bertschi’s Eu- Last year, Bertschi acquired a A strong emphasis in 2018 will ropean turnover is generated on Contact large industrial site in the port be placed on the digitalisation of this corridor. Benjamin Bennett E EHQMDPLQEHQQHWW#GOOJURXSFRP M +447919111544 ZZZGOOJURXSFRPJEHQJE VROXWLRQVǍHHWVROXWLRQV Tracking on the Silk Road Latvia’s SIGIS Eurasien-Logistik launched an internet-based ser- containers tracked has expanded has extended its container track- vice called RailWagon Location from an average or 50,000 to ing service to cover China, Iran that collects position data for 120,000 over the last 10 years, and more parts of Central Eu- all wagons and containers from and the customer base has grown rope. around 8,000 railway stations to include users in China and The company recently across the CIS countries, Geor- further afield. gia, the Baltic States, Finland and China was added this year, Mongolia. Location data is inte- and position data for the entire Fax or e-mail this form to: grated with scheduling data and Chinese railway network is now other information from railroads available in the system. “Thus, Available from WorldCargo News +44 1372 370111 to provide a more complete pic- cargo routes from Bandar Abbas [email protected] ture on delays and any disrup- to Poti and to the Baltic ports can tions to service. “Upstream and be monitored continuously by “Container Terminal downstream routes” by land and our tracking system,” the com- Name...... sea can be tracked and displayed, pany declared. “For the first time, Planning - A Theoretical in combination with railway it is possible for our customers to ...... transport routes. have direct access to up-to-date Approach” Title...... The number of wagons and electronic tracking data.”

A major study by Dr Itsuro Watanabe ...... (Container System Technology) Company ...... WorkSafe BC warning This comprehensive 245 page study is an in-depth analysis of capacity constraints, productivity, selectivity ...... and flexibility of different container handling systems in terminals of different types and sizes: common-users on repurposed boxes or dedicated; hub centre (transshipment and/or relay) or import/export vocation; gateway or feeder port; ...... intermodal rail or truck distribution inland; with or without CFS, etc. Profusely illustrated with charts, Canadian workplace safety au- tors found that the container Address...... thority WorkSafe BC has issued was being used to house a col- figures and explanatory tables. Effects of different call patterns of containerships and dwell day regimes. a warning on the risks associ- lection of gas-powered tools. Predictive power provided through development of queuing theories. Hundreds of detailed equations...... ated with using shipping con- When the fuel vapour was Price: £165 or US$245 or 245 including postage and packing...... tainers for workplace or resi- exposed to extreme heat, the dential storage. container exploded,” WorkSafe I enclose my cheque or bank draft for £...... US$...... This must be drawn on a UK bank...... The warning comes after BC noted. In a more recent Please invoice my company - we will mail study on receipt of payment. several instances where com- incident a propane barbecue ...... bustible substances in contain- stored in a container caused an Please debit my American Express Visa Mastercard (please indicate card and currency used) ers vaporised and subsequently explosion that blew one of its Company business ...... Expiry date ignited. 113 kg doors a distance of 40m, ...... “In a 2011 incident, a volun- into a public park. Signature...... Date...... teer fire-fighter was struck and WorkSafe BC has produced Fax...... killed by a door that blew off a video on the risks, which WCN Publishing: The Coach House, 24 Bridge Street, Leatherhead, Surrey KT22 8BX, UK. a shipping container while he can be found online by search- Please make payments to: WCN Publishing WCN PUBLISHING VAT No: 644 2190 53 Tel...... was fighting a fire in the next ing “YouTube/The Hazards of building. Afterwards, investiga- Shipping Containers”.

16 February 2018 CHINA FOCUS

Qingdao Port International Co (QPIC). East Gate special economic zone. QPIC, through its wholly owned sub- In 2017, an estimated US$25B was China’s ports spread their wings sidiary Qingdao Port International De- invested by China-based entities in port velopment Co., is involved in an existing infrastructure projects, and CMP and he expansion of Chinese port reefer terminal and the development of CSP are involved in several of the larg- entities in the global market is, Ambitious port authorities and terminal a new container terminal in the North- est schemes. It is estimated that China- Tin large part, being driven by the operators are aggressively expanding ern Italian port of Vado. This stems from backed port operators, including Hong central government’s ‘Blue Economic its acquisition in late 2016 of 9.9% of the Kong-headquartered Hutchison Port Passages’ (BEPs) and ‘One Belt, One their presence in overseas markets equity in the project from APM Termi- Holdings, now have a presence in more Road’ (OBOR) initiatives. nals (APMT) CSP has a 40% stake. than 45 countries around the world. In Effectively, the programmes are de- China Merchants Ports (CMP), Cosco handled 18.4M TEU, equivalent to 18% Europe, analysts estimate that China- signed to protect the country’s all-im- Shipping Ports (CSP) and Shanghai In- of its total throughput, and CSP 18.8M Inland focus based companies, control between 10% portant import and export supply chains, ternational Port Group (SIPG) already TEU, which represented just over 21% of In the case of Jiangsu Lianyungang, and 15% of the continent’s container while providing transport and infrastruc- own/operate sizeable international as- its total volumes. which lies at the eastern end of the Chi- handling capacity. ture platforms that will support future sets, and plan to acquire more. In volume Spurred on by the successes of CMP na rail bridge network, the focus to date Globally, over 65% of the largest con- trade growth, investment and new busi- terms, these companies are among the and CSP, several smaller port authori- has been inland, as it sees the growth in tainer ports have some form of Chinese ness opportunities. largest global terminal operators (GTOs), ties/operating companies are putting rail traffic between Asia and Europe as investment in them, and this proportion Essentially, three BEPs are being devel- with CMP and CSP handling 102.9M international expansion programmes in being key to its future. In 2017, it con- continues to increase. It means that, when oped: TEU and 87.9M TEU, respectively. place. These include the port author- cluded a deal with Kazakhstan’s national it comes to global container throughput, China-Indian Ocean/Africa/Mediter- Outside of the three ‘Chinas’ (main- ity of Ningbo-Zhoushan, Jiangsu Lian- railway company, and purchased 24.5% China has a say in almost 500M TEU. ranean basin. It includes the China-Pa- land, Hong Kong and Taiwan), CMP yungang Port Co, and the stock-listed of a dry port located in the Khorgos- Meanwhile, the merger of China Ship- kistan Economic Corridor (CPEC), the Bangladesh-China-India-Myanmar Eco- nomic Corridor, and the various OBOR China east-west rail and sea routes. China-Australia/South Pacific Islands. This is a critical corridor when it comes to China’s sourcing of raw materials, par- ticularly of iron ore, coal and livestock. China-Russia/Northern Europe via the Arctic Ocean. This corridor is con- sidered to have huge potential, given that significant savings can be achieved on cargo transit times. In addition, all-year round navigation is becoming more real- istic due to the receding ice cap. On all of these corridors, investments in marine and dry ports/terminals are critical, and for obvious reasons. Ports and transport nodes are catalysts for the development of a wide range of different activities in the logistics, marine services, construction and equipment supply sec- tors. These are all industries where Chi- nese interests already play a large role, and where expansion is possible. Strategic thinking Ports are also highly strategic assets. They can offer China closer control of specif- ic trade lanes and energy supply chains, while the cargo handled and documen- tation processed provide valuable intelli- gence on local economic issues, country and company logistics networks. They can also be used to enhance the country’s own security. Take the port of Gwadar in Pakistan, where state-controlled China Overseas Port Holding Co. is the principal inves- tor, and owns the lease until 2059. While the company’s primary objective is to develop and operate a large maritime gateway to support CPEC, Gwadar al- lows crude oil to be transported from the Middle East into Western China without having to transit the heavily congested and potentially politically sensitive Strait of Malacca. Already, China’s state-owned enterprises are estimated to have invested over US$60B in CPEC. As centres of trade, port investments invariably strengthen relations between countries. This is clearly seen in deals concluded by Chinese port companies in the development of Khalifa 2 (Abu Dhabi) and the investment in Paranaguá (Brazil) recently. Moreover, the Khalifa 2 deal led to the government of Abu Dhabi signing a 50-year lease agreement with the state- owned Jiangsu Provincial Overseas Co- operation and Investment Company for the development of a new free trade zone in the vicinity of the port. It will entail an investment of approximately US$300M. The past three years have seen Chi- nese companies both undertake and plan huge investments in ports, terminals, lo- gistics centres and rail depots across Asia, the Middle East, the Horn of Africa and Europe. But large projects have also been concluded in Central and West Africa and Latin America, clearly pointing to the Chinese Government’s overall ambition of becoming a world maritime and trad- ing power. Ramping up Moreover, the pace of developments looks as if it will pick up. China’s Presi- dent Xi Jinping, for instance, has a mas- sive 10-year US$1.6T budget in place for infrastructure developments in Asia, the Middle East and Africa. Only last year, the government gave the Cosco Group US$26B to invest in OBOR projects.

February 2018 17 CHINA FOCUS ping Lines and Cosco means that US$10B, respectively. The coun- strategic investments in various the country is home to the world’s tries control important sea corri- other European ports, including fourth largest liner shipping com- dors between Asia and the Indian Rotterdam (Euromax), Antwerp CHEC mate in development game pany. According to Singapore- sub-Continent and Indian Ocean (Antwerp Gateway), Zeebrugge Beijing-based CHEC is a large commemorate their delivery, side, and the strengthening of based research group Alphaliner, and Asia and the Red Sea/Europe, (former APMT facility), Valencia, civil engineering company that Zhang Yiming, China’s ambas- seven of the port’s general cargo China Cosco Shipping Corp and are seen by China’s govern- and various other ports in Spain specialises in the construction of sador in Namibia, said: “Walvis wharves. (CCSC) controls over 340 vessels ment as strategic in its OBOR through its acquisition of JP Mor- ports, railways, bridges and high- Bay is set to become the most In addition, the group is with a total slot capacity of 1.86M programme. gan’s share (51%) in Noatum. ways. Along with several other brilliant pearl on the Atlantic working in the ports of Lo- TEU, has about 440,000 TEU (25 In Djibouti, CMP has invested Elsewhere, the group is in- China-domiciled groups, it has Coast of southwest Africa. This bito (Angola), Abidjan (Cote vessels) on order, and an expand- in container, LNG and livestock volved in the second phase of East established an enormous global event is a benchmark project for d’Ivoire), Beira (Mozambique), ing network of services. handling facilities, together with Port Said (Egypt), Khalifa 2, and, presence. The company is a sub- China-Namibia relations, and it Bagamoyo (Tanzania) and Kribi Then there are China’s large a large logistics park. An overseas jointly with CMP, Ambarli-Istan- sidiary of China Communica- symbolises the great attention of (Cameroon) on a range of re- engineering/construction com- naval basin has also been devel- bul (Kumport). tions Construction Company. our leaders to our relations and newal, expansion and dredging panies and banks/fiscal entities. oped with the capacity to accom- One of CSP’s latest and most In Africa, almost every new the brotherhood between our projects. Many of these groups, includ- modate 10,000 personnel. important deals was its acquisition port project has some form people.” Outside Africa, some of the ing China Harbour Engineering In Sri Lanka, CMP owns 85% of the outstanding 76% of shares of backing from China, with Elsewhere in Africa, CHEC is most important projects that Company (CHEC), are support- of both Colombo’s newest box it did not own in APM Terminals’ construction normally under- actively involved in: CHEC is involved in include the ing the maritime sector through terminal (Colombo International Zeebrugge facility in November taken by CHEC, cargo handling El Hamdania Port, which is lo- development of a new port city building/project management Container Terminal) and the port 2017. CSP bought its first tranche equipment mainly supplied by cated near the city of Cherchell, in Colombo, which is worth an contracts and highly competitive of Hambantota, which is located of shares in the terminal in 2014. ZPMC, and finance largely co- Algeria. The US$3.3B project estimated US$1.4B, the recon- financing arrangements. on the southern coast of the is- “There are many reasons why ordinated by a China-headquar- involves building 23 wharves, struction and dredging of the Incredibly, CHEC is involved in land. CMP’s investment there will we have selected Zeebrugge as tered bank/fiscal entity. and developing a port capable of approach channel and internal transport-related projects in more include a logistics and trade cen- our first gateway port in north- Take Walvis Bay, Namibia, as handling at least 25 Mtpa of car- waterways at the Port of Yuzhny than 100 countries, and many of tre, and the port will also handle west Europe,” explained Zhang an example. A new container go. Initial operations are sched- (Ukraine), and the dredging, them have a port/maritime ter- vehicles. The container terminal, Wei, vice chairman and manag- port is under construction, along uled for 2021. CHEC is working excavation and construction of minal interest to them. In Africa, which will be capable of handling ing director of CSP. “With its with the development of new alongside China State Construc- new waterfront properties in virtually every development has more than 2M TEU a year when prime location and water depth, oil storage facilities (75,000 m3). tion Engineering Co, and will Yanbu (Saudi Arabia). the CHEC name stamped on it fully built, will have two deepsea it provides ideal conditions for CHEC is leading the US$660M also have a 49% equity stake in In the Caribbean/Central (see box story). and two feeder ship berths. mega vessels. We plan not only project. the port operating company. America, CHEC is involved in But CMP’s growth strategy is to develop CSP Zeebrugge into Due to be completed in 2019, Bakassi Port in Cross River a number of important highway CMP spending not based entirely on container a maritime crossroads, but also an the new two-berth (1,200m) State, northeast Nigeria, is a projects. These include Jamaica’s Recently, CMP spent almost terminals, with the group re- ultra-logistics platform to serve container handling facility will planned gateway for city of four-lane Southern Coast High- US$925M on acquiring 90% of cently confirming expenditure of continental Europe and the UK. be capable of accommodating Calabar, with transhipment op- way improvement programme, Brazil-based TCP Participações US$478M to buy a 50% stake in With this plan, we will work close- 8,000 TEU-class ships and have portunities. The US$760M+ and a 107 km stretch of the from shareholders, including the port of Newcastle, Australia. ly with the Port of Zeebrugge an initial annualised throughput development is expected to be Puerto Limón/San José highway Fundo de Investimento em Par- The port has 21 cargo berths, is on the Maritime Logistic Zone. of at least 750,000 TEU. This is completed in 2021/22. in Costa Rica. The latter is valued ticipações, Soifer, Pattac and Tuc one of the largest coal ports in “Furthermore, we are delighted double Walvis Bay’s current ca- Beitbridge-Harare-Chirun- at over US$500M, and it includes Par, and committed more than the world, and exports a signifi- to have CMA CGM as our part- pacity. Four STS cranes manu- du Highway in Zimba- the rebuilding of 32 bridges. US$1B in funds for the develop- cant amount of this commodity ner. With the cooperation of CMA factured by ZPMC were recent- bwe. The 900 km project is Currently, WorldCargo News ment of the port of Hambantota to China. CGM, we are confident that we ly delivered to the site, and are worth an estimated US$2.7B. believes that CHEC is active in in Sri Lanka. CSP’s strategy has been differ- not only can deliver high quality in the process of being installed Dar es Salaam. This US$154M over 100 countries on projects It owns 49% of Terminal Link ent. Its focus has been on ports services, but also capture the eco- and tested. project involves development of estimated to be worth in excess with CMA CGM, and its focus located in mature economies in nomic opportunities emerging At an official ceremony to a ro-ro terminal, dredging along- of US$30B. has been on emerging markets, the developed world, and those around the Port of Zeebrugge.” as its executives view countries that perform regional cargo roles. in Africa, South Asia and Latin This largely stems from its roots Neat fit hinterland logistics and a compre- OBOR, and the needs of emerg- APMT, PSA International, DP America as offering the strongest in the Cosco shipping empire, and Joachim Coens, managing di- hensive intermodal network,” he ing economies to modernise their World and even smaller GTOs, growth prospects. an investment strategy driven by a rector of the port of Zeebrugge, said. CSP’s and CCSC’s active role transport infrastructure opening such as ICTSI, could decide to Some of the group’s most sig- need both to improve the ocean welcomed the transaction, claim- in OBOR will certainly help sup- up new opportunities, analysts sell and/or monetise some of their nificant projects are in ports in carrier’s operating performances ing that it neatly fitted the port port the port in this direction. expect further large-scale deals to assets, and CMP, CSP and SIPG Sri Lanka and Djibouti, where and reduce its costs. authority’s own objectives. One With China’s port management come to fruition. Moreover, size- are all likely to be interested, with it has invested/is investing ap- Currently, the group has a ma- of our key strategies is to reach and logistics development compa- able corporate activity cannot be a full-scale takeover not out of the proximately US$2B and close to jority shareholding in Piraeus, and out to other markets and develop nies eager to expand and embrace ruled out. question. v VDL Containersystemen

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18 February 2018 CENTRAL/SOUTH AMERICAS FOCUS Latin shuffle for liner shipping he recent takeover of Hamburg Süd by Maersk Line, the immi- Latin America’s main liner trades face an Tnent merger of the liner shipping uncertain future, despite 12 months of departments of K Line, MOL and NYK, and the ambitions of MSC and CMA generally improving cargo volumes CGM all suggest many service changes are on the cards. nal (MIT - Panama), Cartagena, Pecém, Effectively, this links the whole of the Take the recent announcements by and return to Singapore. Caribbean basin with Asia. Maersk Line/Hamburg Süd and CMA It is this loop that is the most interest- Fourth, it offers a direct call in North- CGM to revamp their Asia/West Coast of ing and, potentially, significant, as it could ern Brazil – a first for the Asia trade in South America services (WCSA), and the lead to a rethink in the way carriers serve more than five years. Fifth, it offers one significant changes introduced by CMA the market. First, it is a round-the-world of only a few links between Colombia, CGM, MSC and Hapag-Lloyd over the service. Second, it offers unprecedented Central America and the Caribbean past six months to revise their European/ coverage of the Colombia market, with and Northern Brazil. Sixth, it provides East Coast South America (ECSA) net- direct calls at both Buenaventura and works. Cartagena. Third, it schedules calls at the With two new STS cranes, Pecém is achiev- The process really started just over a group’s principal hubs in Latin America. ing 70 berth moves per hour year ago, when Maersk agreed a deal with the Oetker family to buy Hamburg Süd for in excess of US$4B. Immediately, 23 regulatory authorities commenced their reviews of the transaction, and, while the deal was generally waved through, China’s Ministry of Commerce (MOF- COM), Brazil’s Conselho Administrativo de Defesa Econômica (CADE) and the EU’s Competition Directorate imposed a variety of operating conditions on the two carriers involved, and insisted on some service changes. VSA withdrawal The EU insisted that Hamburg Süd withdraw from five vessel sharing agree- ments (VSAs), four of which involved the South America trades: Eurosal 1/SAWC (Europe/Caribbean/ Central America). Eurosal 2/SWCC (Europe/West Coast South America). MedAndes/CCWM (Mediterranean/ West Coast South America). MESA (Mediterranean/East Coast South America). Meanwhile, CADE ruled that either Maersk Line’s cabotage operator Mer- cosul Line, or Hamburg Süd’s equivalent Aliança Navegacao, had to be sold to comply with Brazil’s competition rules. Collectively, the merger meant two lines had a more than 80% share of the Brazil- ian coastal container trade. In December, Maersk concluded a deal with CMA CGM, and the latter company purchased Mercosul Line. “The acquisition is a part of our core strategy, and it will allow us to develop our in- tra-regional sea transport links, and add complementary services in the logistics sector,” said a CMA CGM spokesperson. In the case of MOFCOM, Maersk has to end Hamburg Süd’s membership of a VSA currently active on the Asia/WCSA trade, and also terminate a similar agree- ment on the Asia/ECSA route, and at the earliest date permitted. In addition, the merged group cannot enter into VSAs with its main competitors, notably MSC, CMA CGM and Hapag-Lloyd for at least three years. Moreover, Maersk/Hamburg Süd have to reduce their reefer container carrying capacity on the Asia/WCSA service from 45-50% (end-2017 level) to 34-39%, and this has to then last for three years. New landscape It is the result of these various conditions and competitors’ jockeying for position that has led (and continues to lead) to the service changes taking place. While the new Maersk/Hamburg Süd plan will mainly affect the Asia/WCSA route, it will also have an impact on the Caribbean/Central America and North- ern Brazil trading sectors. In all, 39 ves- sels, ranging in size from 4,500 to 10,000 TEU, and about 30 ports will be involved in the exercise. It is likely to take two to three months to fully implement. “Our customers will benefit from ad- ditional direct connections, higher sail- ing frequencies, greater flexibility, as well as shorter transit times,” a Hamburg Süd spokesperson explained. “Our reefer cus- tomers will have access to two sailings a week from Chile to Asia, as well as a direct service from Chile and Peru to Japan.” Four new strings will be provided, in- cluding the ASCA/AC5, which will call Singapore, Shekou, Hong Kong, Xiamen, Ningbo, Shanghai, Busan, Buenaventura, Balboa, Manzanillo International Termi-

February 2018 19 CENTRAL/SOUTH AMERICAS FOCUS fast transit times between Pe- Lars Oestergaard Nielsen, presi- to the Maersk group. It should, new Asia/WCSA plan, which ing from Coronel/Lirquen in with four 1,800 TEU capacity cém, (serving a fast-growing fruit dent of Maersk in Latin America, for instance, allow the line to will also kick off in early April, Chile to Manzanillo in Mexico. ships, each of which has the po- producing region in Brazil) and said “Our new service has been cut the number of repositioning involves its main east-west ser- Ships of up to 12,000 TEU are tential to load 800 reefer TEU. South East Asia and China. The designed with a focus on our cus- moves for empty equipment, im- vice partners, China Cosco Ship- deployed. It is scheduled to run until the transit time between Pecém and tomers, and it will enable them to prove utilisation levels for expen- ping Co. and Evergreen Line. It end of February, which signals Singapore will be an estimated 19 continue growing their businesses sive reefer boxes, and allow some will result in the carriers offering Market report the end of the region’s main fruit days, and to main ports in China in the region. From April, Colom- excess tonnage in the fleet to be three more service strings in the Trading-wise, the past year has harvesting season. 25/26 days. This is as much as a bia, the Caribbean and Brazil, es- absorbed. market, and substantially more seen an improvement on many of “The European market ac- two-week saving on current tran- pecially Pecém, will benefit from Currently, Maersk and Ham- operating capacity as a conse- Latin America’s trade lanes, as the counts for 65% of fruit exports sit times, which mainly involve direct connections with Asia, im- burg Süd’s other East Coast quence. recovery in oil, gas and raw ma- from Pecém, so this dedicated transhipment over southern Bra- proved transit times with the Far South America/Asia services re- In its advisory note about terial prices has boosted exports service enables a faster connec- zilian ports. East, and greater port coverage.” main unaffected by these chang- the new services, CMA CGM and generated more income for tion and more reefer slot availa- A total of 11 x 7,100 TEU ca- es, but the Hamburg Süd spokes- stressed that each loop had been the import of capital and con- bility for the region’s producers,” pacity ships will be assigned to the Reaping rewards person alluded to changes taking designed in accordance with its sumer goods. said Daniel Rose, managing di- route. They will be able to load Operationally, the new service place at the end of 2018. recently launched customer-fo- In its Q3 2017’s review of the rector of APM Terminals Pecém. 1,600 reefer containers. should offer considerable benefits Interestingly, CMA CGM’s cused Serenity programme, and Brazilian market, Maersk Line’s “It ensures that cargo shipped that exporters of wood and pulp Antonio Dominguez, manag- remains fresh for the final con- products and perishables would ing director of the company’s sumer.” benefit enormously. ECSA cluster (Brazil, Argentina, The three new loops comprise: Uruguay and Paraguay), said: “It Boost for Pecém ACSA 1 - Kaohsiung, Hong is very encouraging that retail- Maersk has not been the only Kong, Shekou, Ningbo, Shang- ers are, for the first time, doing carrier targeting calls in the PARTS & ACCESSORIES hai, Busan, Manzanillo, Lázaro much more [this year] than just northeast region of Brazil to Cárdenas, Buenaventura, San An- restocking their shelves. They are service its fast-growing fruit ex- tonio, Callao, Lázaro Cárdenas, actually increasing their stocks, ports. Since September, CMA Manzanillo, Yokohama, Busan, and this represents a stark differ- CGM, Hapag-Lloyd and MSC Kaohsiung. It will use 11 ships ence to what happened in 2016.” have all been calling at Pecém with capacities in excess of 9,000 The executive noted that the within various European ser- TEU. import of manufactured goods vices. Its location as the nearest ACSA 2 - Xiamen, Yantian, in Q3 2017 was up 44% on the port to Europe and the US, and Shanghai, Qingdao, Busan, En- corresponding period of 2016 where diversion distances from senada, Manzanillo, Callao, San and, “significantly outperformed the main shipping channel are Antonio, Lirquen, Manzanillo, every other sector”. It confirmed small, make it an ideal call. Shanghai, Xiamen. the ongoing strength of personal Pecém’s success in attracting ACSA 3 - Hong Kong, Yantian, consumption. so many new services is par- Kaohsiung, Ningbo, Shanghai, Dominguez also pointed to tially related to investments that Manzanillo, Buenaventura, Cal- the port of Manaus. “Imports APMT has made in the port’s lao, San Antonio, Hong Kong. into Manaus, which primar- container terminal. Rose ex- The direct connection between ily assembles electronic prod- plained: “We have been work- San Antonio is highly significant ucts for consumers living in the ing closely with our shipping for Chile’s fruit and salmon ex- wealthiest regions of the south line customers and our landside porters. and southeast of the country, customers to ensure they have CMA CGM’s latest move is jumped by 35% in Q3 2017,” he the port service levels needed to part of a strategic plan aimed at said. “That points to economic grow their business. expanding the carrier’s share of recovery and a more optimistic “We now offer the highest op- the Latin America liner market, consumer.” erational performance indices in and generally improving its ser- the market, with a consistent and vice offering for its customers. Brazil buoyed reliable 70 moves per hour using In addition to the purchase of Maersk’s review also highlighted our two new STS cranes. This is Mercosul, joint service arrange- a strong recovery in Brazilian ex- double what it was prior to the SAME-DAY SHIPMENT ments concluded with Maersk/ ports in Q3 2017, with dry cargo cranes’ arrival in 2016. These Hamburg Süd have substan- volumes up 6.6%, and reefers ris- numbers mean we have also at- NEXT-DAY tially increased its slot capacity ing by 7.4%. tracted transhipment volumes, on routes linking ECSA with “These strong export volumes which tripled in 2017 compared DELIVERY Northern and Mediterranean have put us [the shipping lines] to 2016.” Discover every part of us Europe. under a lot of pressure, and we Overall, Pecém handled a re- Elsewhere, Ocean Network at Maersk have responded and cord 213,951 TEU in 2017, and on www.tvh.com Express (ONE), which is the changed the way we serve the this was up 19% on the previous new name for the grouping of market, particularly for our reefer year. Over 40,000 TEU com- the Japanese lines, intends staying customers in northeast Brazil,” prised reefer cargo. in the agreements that the three explained Nestor Amador, com- A cargo sector that has per- lines already have in place. It is mercial director of the ECSA formed particularly well over the a relatively straightforward ex- cluster. “We have also made more past year has been automotive, ercise, particularly on the Asia/ reefer containers available to our with the shipment of finished TVH PARTS NV WCSA trade, as they currently customers across the country, and vehicles, assembly kits and com- Brabantstraat 15 • 8790 Waregem • Belgium work with each other and part- rolled out our remote container ponents all increasing, and with T +32 56 43 42 11 • F +32 56 43 44 88 ners that include MSC, Hapag- management system so that they prospects for this year encourag- [email protected] • www.tvh.com Lloyd and HMM. can track and monitor the con- ing (see box story). Currently, ONE is involved in dition of their cargo during the With cargo volumes picking up, three strings, with calls extend- whole journey.” Latin America’s liner trades are in In terms of northeast Brazil, a better position than they were Maersk started a dedicated shut- 12 months ago, but uncertainty tle service between Pecém, Al- will affect sentiment, and more geciras, Rotterdam and Tilbury service shuffles will take place. v Brazil auto shipments going into overdrive Figures recently published by tion believes that the nation’s São Paulo-based Associação vehicle output will expand Nacional dos Fabricantes de by 11.7% to 3.5M units, with Veículos Automotores (Anfavea) exports rising by at least 5% to reveal that, in January 2018, ex- over 800,000 vehicles. Imports ports of vehicles from Brazil rose are also expected to increase. by almost 24% to over 47,000 The growth in the region’s units. This followed a 48% rise auto businesses has been a prin- in 2017, when 766,013 vehicles cipal reason for K Line’s deci- were exported. sion to set up a joint-venture “We have never exported so auto logistics company with many vehicles” said Antonio Chile-based Agencias Univer- Carlos Botelho Megale, presi- sales SA (Agunsa). dent of Anfavea. “This was due KAR Logistics has been cap- to favourable exchange rates italised at US$5M, and offers a during the year, trade agree- full range of logistics, distribu- ments made by the federal tion and pre-delivery inspec- government, and advances in tion activities in Chile and the Brazilian vehicle sales to Uru- surrounding area. It has the guay, Argentina and Chile. The space to store at least 7,000 ve- recently closed trade agreement hicles on a site located about 6 with Colombia increases opti- km from the port of San Anto- mism for this year.” nio. In addition, it owns a fleet Looking ahead, Anfavea is of trucks and specialised chassis confident about trading pros- that are all equipped with GPS pects in 2018. The associa- equipment.

20 February 2018 PORT DEVELOPMENT

February 2018 21 FRANCE FOCUS

ping groups since April 2017, and this April THE Alliance will call French ports extend their reach there as the first port for imports ext month will see the in a new Asia-North Europe ser- launch of a rail shuttle France’s main seaports are keen to vice, so a further increase in traffic Nconnecting the ports extend their hinterland and become is anticipated. The port has, how- of Marseille-Fos and HAROPA ever, lost some business early this Le Havre with French-speaking European gateways year, with MSC putting Antwerp Switzerland, operated by Navi- back into its Baltic Loop 4 service, land Cargo. The landbridge ser- Gevrey in Burgundy as the hub. catch a significant part of these at Le Havre’s expense. vice will connect each port three The potential Swiss container volumes. times per week with the inter- market is estimated at 350,000 The connection offers Swiss Big ambitions modal terminal at Chavornay, to 400,000 TEU per year, but shippers reduced transit time over The new Switzerland-Le Havre-Marseilles container rail shuttle Next month, the Port of Dunkirk near Lausanne in the French- only a fraction of this traffic goes Marseille-Fos (MaFos) to the is organising a press visit to the speaking part of Switzerland, through French ports today. The Mediterranean and further afield restart for container barge services terland traffic in 2017, so there is quay extension works at the Quai using the terminal in Dijon- shuttle should make it possible to via Suez. For HAROPA, this first connecting Le Havre with Bon- much to do on the rail side, but de Flandres container terminal in regular connection to Switzerland neuil-sur-Marne. It is also work- the Seine River corridor is much the Western Harbour. Container meets its strategic objective to ex- ing with the Port of Strasbourg to more successful, with container traffic has grown steadily at the tend the hinterland towards the get an intermodal rail service re- barges accounting for more than port, from 200,000 TEU in 2010 Le Verdon tender east, and follows the 2016 launch started, with Day A-B scheduling. 20% of the hinterland flow. to 374,000 TEU last year (+10% What future for TCSO (South and it has been in talks with of a service to Ludwigshafen. Previous launches have not The MaFos-Medlink Ports on 2016 and another new re- West Container Terminal) in the party that came up with the Over Le Havre, Swiss shippers been successful, as the Rhine cor- network covers the Mediterra- cord). Le Verdon after Europorte “most pertinent proposal” since and importers have the opportu- ridor is the natural route for Al- nean-Rhone-Saone axis, and ac- The figure would have been walked away from the conces- the beginning of February. This nity to reduce transit times to and satian shippers aggregating cargo counted for a total 103 Mt of traf- higher, but for Hurricane Mat- sion, and Bordeaux Port Au- involves using barges and rail from the Americas. in Strasbourg, but HAROPA fic last year. Container barge traffic thew, which severely disrupted thority (GPMB) withdrew its for inland distribution, but how believes that growing congestion slipped by 5% to 79,000 TEU last containerised banana imports from subsequent private award of the can this be achieved without Intermodal tools of the ARA ports generated by year, but rail traffic jumped by the Antilles, but, even so, would concession to Europorte’s sub- container mass? The upstream With the French government mega container ships makes Le 15% to a record 140,000 TEU, in- still be a drop in the ocean com- contractor SPMA (WorldCargo facilities at Bassens accounted committing to combined trans- Havre an attractive alternative in cluding a 26% increase via MaFos. pared to Antwerp or Rotterdam. News, February 2017, p27)? for barely 53,000 TEU in 2017, port support, HAROPA is keen terms of transit time and costs. The reach to northern destina- So what is Dunkirk’s thinking? It At the end of October, but Le Verdon is better suited to to help create new river and rail At 145,000 TEU in 2017, in- tions was extended by new offer- could be that bigger call sizes are GPMB called for new offers, container traffic. services, and, apart from the new termodal rail accounted for little ings to Lille, and higher frequency leading to increased inland con- Swiss initiative, it is focusing on a more than 7% of Le Havre’s hin- on existing routes such as Paris gestion in the ARA hinterland, and Ludwigshafen. and Dunkirk might offer an inter- Key projects in the MaFos 2018 esting alternative for some strings. capex budget of €82M include In any event, with its €60M the launch of works to connect project at Quai de Flandres to cre- the two Fos container terminals ate a second berth suitable for the via a quay extension, and im- very biggest container ships up provements to the Marseilles and to 22,000 TEU and beyond, the Unique solutions Fos railheads. The port is also con- port is setting out its ambitions for tinuing a string of environmental the future. On completion of the initiatives, including further cold- works, slated for the end of 2018, to your logistical operations ironing facilities for ferries, and the container terminal will have the installation of 16,000 m2 of 1,800m of linear quay, 1,000m solar panels in Marseilles. of which will have a minimum depth of 16.5m alongside, so it Big increases can accommodate two of the very Quayside container traffic in- biggest ULCVs at the same time. creased strongly last year in Le The port’s overall investment Havre and MaFos, by 15% and budget for 2018 has been set at 10% to 3M TEU and 1.4M TEU, €65M (+5% on 2017), of which respectively, being three times and €30.3M is for the second tranche two times the European ports’ av- of the Quai de Flandres work. erage in 2017. This was the sixth Other items include further up- straight year of growth for MaFos grades to security at the cross- in the container sector, and con- channel ferry terminal, improve- tainer tonnage was up by 10% at ments to rail access and signalling, 13 Mt, with overall general cargo and ongoing work at the Dunkirk up by 11% to 20.4 Mt, including South Logistics Zone. 202,000 ro-ro trailers (+11%). It was a good year for cross- Le Havre’s import/export con- channel ferries, with overall ro- tainer traffic exceeded 2M TEU ro freight up by 10% to 16.4 Mt, (+7%) for the first time, while or 11% in unit terms to 612,000 transhipment increased by almost trucks and unaccompanied trail- 40% to a record 1M TEU, indicat- ers. Obviously, the Channel ports ing that the port is currently at- are opposed to a hard Brexit, and, tractive for discretionary cargo. Le in France, the Hauts-de-France Havre has been on the schedule ports of BoulogneCalais and for calls by the three leading ship- Dunkirk have the most to lose. v Logistics investments by SEGRO and Virtuo SEGRO, through affiliate and access to the port’s rail links. VAILOG, has signed an agree- In Marseilles, last autumn, ment with IKEA that will see logistics park developer Virtuo the Swedish furniture giant oc- signed an agreement with the cupy a new 50,000 m2 multi- port authority to build a multi- storey warehouse at HAROPA user facility of almost 70,000 Paris Port de Gennevilliers. m2 at Distriport, close to the SEGRO has brought forward Fos container terminals. development of the 63,000 m2 Due to open in Q3 2019, the so-called Paris Air2 Logistique project will feature two latest building to the end of 2018. generation Class A warehouses 2 TM The project will include 48 totalling 45,000 m , and will Meclift ML1812R Variable Reach Truck doubled-sided lorry docks and be built to “BREEAM Very 25 single docks on the first Good” standard. is the only forklift truck in the world, with lifting capacity of floor, linked by a 10m-wide Virtuo has three other lo- ramp for spacious bi-directional gistics developments underway 18 tons and 1200mm load center, that can operate inside driving. The target environ- in France, and was looking mental sustainability rating is for a platform in the south as a container. It also has 6 meters lifting height with 2.5 me- “BREEAM Excellent”, and part of a network covering the there will be 85 charging points Lille, Paris, Lyons and Mar- ters reach. Meclift handles your cargo with safety. for electric vehicles. seilles range. Distriport is the Allied with the ready connec- larger of two logistics zones at tion to the A15 and A86 roads, Fos, with 360,000 m2 of ware- IKEA will be able to use elec- housing currently operational tric vehicles to transport goods out of a total building capac- to central Paris and the western ity of 575,000 m2. Meanwhile, suburbs. The location also al- occupancy at the 364,000 m2 ZZZPeclift¿ lows distribution to Paris on La Feuillane zone currently ac- the River Seine, bypassing de- counts for 149,000 m2 of avail- sales#Peclift¿  8 2  112 lays caused by traffic congestion, able warehouse space.

22 February 2018 REEFER INDUSTRY

Lessors’ reefer buying takes a dip Table 1: Leasing industry’s newbuild reefer purchase by type (rounded TEU) 2016 2017 Leased - 20ft 3,000 1,500 he reefer leasing industry took a Leased - 40ft 99,000 58,500 pause in 2017, when it cut back After several years of strong expansion, Leased - total 102,000 60,000 drastically on investment, and T the reefer leasing industry grew more World - total 155,000 220,000 committed to its lowest intake of new reefers in almost a decade. Leasing firms modestly in 2017, and new investment fell Leased share (%) 65.8 27.3 took delivery of just 60,000 TEU of new Source: Box building and leasing industry data reefers during 2017, more than 95% of to its lowest level in almost decade which comprised the 40ft high cube in- dustry staple. Their delivery accounted for tle above 50% of all new reefer deliver- TEU going to Seaco, and 9,500 TEU to on standard boxes, with TIL committing pany has also committed to some of the little more than a quarter of global reefer ies made to the leasing side in 2017. A TIL. SeaCube was the only leasing firm to the largest single purchase yet seen first reefers to use CO2 refrigerant, in a expenditure, with the balance made by further 30% went to Seaco Global, and to concentrate more heavily on reef- (almost 800,000 TEU). Other big-scale bid to further enhance its environmental shipping companies. These received a to- much of the balance to the recently ex- ers during 2017, as most others focussed buyers were Textainer, CAI International, credentials. Seaco recently took delivery tal of around 160,000 TEU during 2017, panded Triton International Ltd (TIL), on dry freight procurement. The latter Beacon Intermodal Leasing and Florens of 100 x 40ft NaturaLINE units from from a global production total of 220,000 formed in 2016 from the TAL/Triton was viewed to be a safer bet, as well as Group. Carrier Transicold (see p28). Most other TEU. The global figure was, itself, up by merger. offering a better defined cash return. In Seaco’s investment was split more production carried out for the lessor in 40% on the 155,000 TEU constructed in In numerical terms, SeaCube received consequence, much of the finance avail- evenly between reefer and dry freight, 2017 was fitted with the established Car- 2016. 31,500 TEU, compared with 18,500 able last year to leasing firms was outlaid with neither type dominating. This com- rier PrimeLINE model, which remains More tellingly, the lessors’ purchase in 2017 was 50% down on that aver- aged in the preceding seven years (2010- 16), when the annual never fell short of 100,000 TEU and, on occasion, came close to 150,000 TEU. Throughout this earlier period (in sharp contrast to 2017), leasing firms had consistently out-pur- chased the shipping line sector. The leas- ing industry’s disproportionately high production resulted in a compound fleet growth of at least 15% per annum for the entire period, and enlarged the lessors’ collective reefer fleet from around 0.5M TEU, in the aftermath of the 2009 reces- sion, to almost 1.3M TEU by early 2017. Taking control This impressive expansion further result- ed in a very dramatic gain in the lessors’ control of global reefer inventories. By 2017, they accounted for almost half of the world’s entire reefer count, compared with less than 30% in 2009. Their share had previously been stuck at around 30% for many years, implying a marked step- change in the lessors’ involvement in the reefer sector during more recent times. Indeed, reefer leasing has become in- creasingly mainstream over the past eight years, with shipping lines no longer view- ing rental as a poor substitute for their own direct investment. Even in 2017, when the lessors’ invest- ment fell well short of that maintained by the lines, the former still managed to grow their fleet by a slightly greater amount. Al- though the leased reefer count was to en- large by little more than 4% during 2017, it compared favourably with the 2.5% achieved for the fleet owned by shipping firms (and 3.5% for the global reefer fleet as a whole). The lessors’ greater gain was due to a continued sale-and-leaseback (SLB) activity, which occurred alongside their diminished newbuild commitment, and resulted in a near-record transfer of older reefer equipment from line into leasing company ownership. In making history, we’ve created the future. An estimated total exceeding 40,000 TEU was transacted in this way during 2017, as certain shipping lines opted to raise more cash, and leasing firms grew their market share without adding to the ® newbuild stock. SLB business had already NaturaLINE – The world’s first • Power consumption comparable played a part in fuelling the lessors’ me- to Carrier’s best-selling unit teoric fleet expansion prior to 2017, but natural refrigerant container technology. had never before accounted for so great a proportion of reefer growth as in the past • Excellent efficiency for part-load year. It remains an attractive option for The first and only technology of its kind, the NaturaLINE reefer unit perishable cargo lessor and shipping line alike, especially in incorporates CO2 in place of conventional synthetic refrigerants to deliver the face of continued market uncertainty. sustainability and efficiency equal to our best-selling unit. Nevertheless, growth effectively stalled • Nonflammable and nontoxic at in 2017, compared to earlier years. One low concentration other influential factor was an increased This natural refrigerant-based solution is the most environmentally resale of older reefer equipment on the sustainable alternative for refrigerated marine transport. It’s the future of • No CO refrigerant tax part of many lessors, which was report- container refrigeration – brought to you by the Natural Leaders at Carrier. 2 edly higher in 2017 than at any time in the past decade. This, in turn, has led to an • No intermediate refrigerant step increased consolidation across the fleet as www.carrier.com/naturaline a whole. Used reefer prices have tended to follow the same upward trend in re- • Familiar controls and cent months as their dry freight coun- maintenance terparts, thereby encouraging owners to retire their older reefer boxes in greater • Global support from Carrier numbers. Fewer players In addition to the lessors’ cutback in reefer intake, fewer participants were ac- tive in 2017 than in the earlier years. The ©2018 Carrier Corporation. A part of UTC Climate, latest data received from box-building Controls & Security, a business unit of United sources in China indicate that just three Technologies Corporation. Stock symbol UTX. rental firms purchased new reefers in vol- ume during 2017, headed by SeaCube Container Leasing. It accounted for a lit-

February 2018 23 REEFER INDUSTRY

an industry favourite. has been dominated by a mere far higher investment in 2017, as is predicted to hold up strongly Table 2: Leasing industry’s reefer fleet by type (rounded TEU) Last year’s more selective pro- handful of top names. Heading did most other active lines. during 2018. It is already expected curement of reefers contrasted the list was Maersk Line, which As already highlighted though, to surpass that of 2017, and may Jan 2017 Jan 2018 with that of 2016, as well as ear- purchased a record number of 2017 proved to be a stronger year be up by as much as 50-60% on Leased - 20ft 60,000 60,000 lier years, when just about all of new reefers during 2017, fuelling for reefer operations than 2016, 2016. However, the total is still Leased - 40ft 1,220,000 1,275,000 the majors involved in reefer both fleet expansion and replace- with the outlook improving likely to fall short of the 270,000 Leased - total 1,280,000 1,335,000 World - total 2,655,000 2,745,000 leasing had been actively buying ment. It took delivery of more steadily through the year. The pre- TEU delivered in 2015, when Leased share (%) 48.2 48.6 equipment. Relatively absent in than 80,000 TEU, all as 40ft high ceding year, 2016, was affected by reefer uptake was last running at 2017 were the likes of Textainer, cube, with the majority coming the Hanjin bankruptcy, as well as a peak level. Despite the recent Source: Box building and leasing industry data (Jan 2018, incorporating Beacon and CAI, although some from its affiliate Maersk Contain- mergers involving both top lessors year-on-year fluctuation in reefer estimates) did transact SLB business involv- er Industry factories in Qingdao and leading shipping lines that output, the underlying annualised ing reefers. Neither is there much and San Antonio (Chile). Mae- were then in progress, all of which rate has actually remained fairly Table 3: Leasing companies’ newbuild reefer purchase (rounded TEU) sign at present of any immediate rsk Line therefore accounted for had cut the requirement for new stable over the longer-term, hav- return to the more expansion- much the same 50% of the lines’ containers (reefers particularly). ing averaged the same approxi- Company 2016 2017 ist past, as the majority of reefer total investment, as did SeaCube These developments had far less mate 220,000 TEU/year (as built Seaco Global 35,000 18,500 orders placed at the start of 2018 on the rental side. impact in 2017. in 2017) throughout the past six SeaCube Leasing 6,500 31,500 have again originated from Sea- Coming a distant second were As a consequence, reefer de- years. The global reefer fleet has Triton International Ltd 18,500 9,500 Textainer Group 21,000 - Cube, Seaco and TIL – plus Tex- CMA CGM and Hapag Lloyd, mand picked up significantly grown by an approximate 5% per Beacon Intermodal 14,000 250 tainer, which is returning to the which together accounted for an- from Q2 2017, and had attained annum during the same period, Other 7,000 250 reefer market after a gap of al- other 52,000 TEU. Other reefer a high point during the final ‘peak compared with more than 10% Leased - total 102,000 60,000 most 18 months. Nevertheless, the purchasers were Evergreen, PIL season’ quarter, when monthly for the leased component in iso- overall purchase volume is likely and Chinese operators SITC, output was more than double its lation. Companies ranked by total purchase in 2016-17. Source: Box building to be up for the opening months Antong (Quanzhou An Sheng level earlier in the year. It was dur- Given the way reefer demand and leasing industry data of 2018, in proportion to any time Shipping) and Zhonggu Xinliang ing this latter period that the leas- recovered during 2017, after in 2017, although it has yet to be Shipping. These received around ing sector was at its most active. what was undoubtedly an under- Table 4: Lease companies' reefer fleet (rounded TEU) seen whether this will translate 12,000 TEU between them. The Reefer production has continued productive year in 2016, the les- into a renewed commitment by remainder (more than 15,000 strongly into 2018, although it sors’ lack of commitment may Company Jan 2017 Jan 2018 the reefer lease sector as a whole. TEU) were acquired by various is expected to slow again as this still come as a surprise. However, Triton International Ltd 425,000 425,000 smaller transport firms. Although year’s peak reefer season comes to they have faced rising competitive Seaco Global 340,000 345,000 SeaCube Leasing 172,000 190,000 Few lines spend Maersk, CMA CGM and Hapag- an end, and the flow of perishables pressures in recent years, brought Textainer Group 158,000 155,000 traffic weakens from the southern about by the leasing industry’s Shipping lines may have commit- Lloyd were the dominant reefer Beacon Intermodal 65,000 100,000 ted to far greater reefer expendi- buyers amongst shipping compa- hemisphere. ongoing headlong growth. This Florens Leasing 55,000 55,000 ture over the past year, but this too nies in 2016, they committed to a Nevertheless, reefer production was instrumental in driving down CAI International 54,000 54,000 Other 11,000 11,000 Leased - total 1,280,000 1,335,000

Source: Box building and leasing industry data (Jan 2018, incorporating estimates)

reefer long-term lease (LTL) rates may also have reached a natural and their accompanying cash in- limit. This hints that, in future vestment return, which were in years, reefer growth may be more general decline throughout much restrained for the leasing sector, of the six years up to 2016. Signif- and the excessive investment of icantly, it was only during the past the recent past may be further year, when investment was more discouraged. At the same time, muted, that these rates/returns the existing spread of participants have experienced any recovery. could be reduced still further. The 40ft per diem average fell The total tally of reefer leasing to its lowest point during 2015- competitors, chasing volume busi- 16, when it barely exceeded ness, formerly stood at around 10. US$4. Although this coincided However, following the Seaco/ with a minimum point in reefer Cronos merger of 2015, and that pricing, the underlying cash in- of TAL/Triton and Florens/Dong vestment return was, at that time, Fang in 2016, the number has re- down to almost 10%, which duced to just seven. As highlight- marked an all-time low, and was, ed, only three of these bought any in fact, little different to the dry new reefers last year. Moreover, freight figure. Since then, the 40ft just one company, Beacon, was reefer price average has increased to grow its fleet by any significant from its former low of less than amount, and this was achieved US$15,000 to nearer US$16,000, mainly through SLB. The Bea- Still fresh, whilst the corresponding 40ft con reefer fleet was enlarged by lease rate has recovered to almost 50% during 2017, compared with US$5. In turn, this has pushed up 10% for SeaCube, and virtually no weeks later the cash yield to 11% and greater. change for most others. The les- However, as always, the devil sors’ total reefer fleet grew by just is in the detail, since the current 55,000 TEU in 2017, its smallest US$5 per diem remains applicable numerical growth since 2009. to the same five-year LTL term as Nevertheless, the existing hier- has been commonplace for many archy underwent no real change years, and which also applied to in 2017, as it is still headed by TIL the earlier minimal rate of US$4. with a dominant fleet of around In reality, most lessors are today 425,000 TEU. The second place accepting a discounted rate level is occupied by Seaco and its fleet (of below US$5), in exchange for of almost 350,000 TEU. Together, a longer rental term of up to 10 these two firms control 57.5% of years. As a result, the five-year LTL the entire leased fleet, and nearly contract is reportedly becoming 30% of the global count. SeaCube less common for reefer equip- and Textainer are positioned in ment, and, instead, being replaced third and fourth place, respective- by an initial lease term of eight ly, holding an approximate quarter years or even longer. share of leased inventories. Bea- con’s massive gain has secured it Lessor security fifth place, ahead of CAI and Flor- This provides greater security for ens, which now bring up the rear. the lessor, and explains the re- The current situation in 2018 is duced per diem, whilst it is also a far cry from that of 10 years ear- proving popular with shipping lier (end-2007), when several new lines. In some instances, the leased reefer leasing entrants had just reefer can be purchased by the les- debuted. They included Beacon, see at the end of the rental term, which was then entering the con- thereby avoiding the overheads tainer leasing sector as a whole, associated with redelivery. How- Textainer, which (flush from its ever, it is still putting pressure on then recent flotation) had decided cash returns, and, ultimately, on to add a reefer leasing division, the profit margin available to the and Dong Fang Leasing (freshly leasing industry as a whole. created by the China Shipping The latest trend towards a Group). Yet another newcomer lengthier rental term, offered at was Capital Intermodal (subse- decreasing cost, is perhaps indica- quently merged into Textainer). tive of the way the reefer leasing It is telling that this was the last business is continuing to scale-up, time any significant reefer leasing mature, and become increasingly company start-ups emerged. The risk-adverse. As the lessors’ con- trend now is shifting inexorably trol of the global reefer fleet ap- towards further mergers and con- proaches 50%, their involvement solidation. v

24 February 2018 REEFER INDUSTRY Revamp for Chiquita TWS adds agitators Chiquita is reorganising its European the Dutch port, Kloosterboer already han- Tank container leasing specialist TWS has of products like yeast, cream, tea extract banana business. It has cancelled a con- dles around 400,000 tpa of Chiquita ba- improved its reefer tank product offering and further special mixtures from the tract with MSC that brought around nanas, a figure that is expected to increase with the addition of reefer tanks featuring food industry,” stated TWS. “The tank 80,000 tpa of bananas in its containers to 720,000t in 2018 with two weekly agitators. containers have a very good insulation into Bremerhaven, its traditional port sailings. The UK and the Nordics will be TWS provides special reefer tank con- and an optimised control of the reefer for Germany, where bananas are ripened served in containers from Vlissingen, so tainers for the foodstuff and chemical system. The agitator can be set to con- before distribution to Germany, Scandi- Sheerness (UK) is also losing direct calls. industries that allow liquids to be trans- tinuous or interval operation. The smooth navia and parts of Eastern Europe. Chiq- Chiquita, which was acquired by the ported at temperatures ranging from -20 start, adjustable stirring speed of the agita- uita switched to MSC container vessels in Brazilian Cutrale and Safra juice com- degC to +80 degC, depending on the tor, and stored program control are new 2016, having previously called at Bremer- panies in 2015, could redeploy the Med type (electrical or diesel). The tanks are improvements. All units can be modified haven with its Great White Fleet reefer reefer ships because it is now chartering fitted with a 7,000W cooling and heating with a GPS system for monitoring and ships, carrying containers and breakbulk. slots on Maersk’s Car-Med service, in system that uses steam channels, vacuum control of the product temperature, and As the replacement for Bremerhaven, which 3,500 TEU vessels with 800 reefer rings and insulated tubes to regulate and location of the tank.” it has redeployed two reefer vessels with slots are deployed, so it is no longer sup- maintain temperature. Currently, the TWS fleet stands at 15,000 pallet positions, and deck contain- plying Italy through reefer ships. Con- TWS now offers reefer tanks modified about 9,000 units, consisting of 20ft er intake from its Mediterranean service tainers are discharged in Savona Vado, with the installation of agitators. “They standard tank containers with a volume TWS now offers agitators with 20ft reefer to increase shipments over Vlissingen. At Livorno, Civitavecchia and Salerno. are mainly used for transport and storage of 14.5 to 26 m3, as well as swap bodies. tanks Fuel cell genset results The Port of Long Beach has rejected a request from the California Air Resources Board (CARB) to require the use of gen- sets powered by hydrogen fuel cells at its Controlled Atmosphere new On-Dock rail support facility. CARB got the idea from a demonstra- tion project at the Port of Hawaii using fuel Launched in 2009 cell gensets. This was reported in the Sep- tember 2015 edition of WorldCargo News, but, to recap, the US Maritime Adminis- tration (MARAD) funded testing for “the Today +40,000 in service first prototype hydrogen fuel cell unit to power onboard refrigerated containers”. A hydrogen fuel cell system housed in a 20ft container was tested for powering reefers in port and on barges between Honolulu and Hawaii’s outer islands, car- Preserves freshness ried by Young Brothers, a subsidiary of Fos Maritime. The container had 75 kg of onboard hydrogen stored at 350 bar, Extends transport distance with a rated power of 100 kW, 240 VAC 3-phase, which can be divided among 10 plugs to power up to 10 reefers at a time Brings more perishables to new markets for 20 hours of continuous operation. The use of fuel cells was evaluated by Sandia National Laboratories (SNL) in May 2017, which resulted in a comprehensive evaluation report. The test site at Young Brothers had no hydrogen refuelling infrastructure, and the generator had to be trucked 7 miles to a filling station, which was required eight times over the six-month trial period, dis- pensing a total of 428 kg of hydrogen. SNL explained the tests results as fol- CA CA+ lows: “From the period of August 2015 to June 2016, the generator was used by Young Brothers on 52 different days for a total of 278 hours. It averaged 29.4 kW For high respiring perishables For low respiring perishables (gross) during this period, for a total en- ergy generation output of 7,285 kWh and achieved a 5-minute continuous peak power of 91.3 kW (gross). Its net energy efficiency ranged from 36% to 54% over the load range of 16% to 62%. By com- parison, the net efficiency of an equivalent diesel generator efficiency is from 25% to 34% in this same load range. Using no diesel fuel, and producing zero emissions at the point of use, during the demonstra- tion period, the fuel cell generator dis- placed 865 gallons of diesel fuel, over 16

Mt of CO2 emissions, and avoided nearly 150 combined kilograms of criteria pol- lutants (NOx, CO, HC, PM, and SOx), compared to an existing Young Brothers 350 kW Tier 3 diesel generator.” Despite its promising environmental performance, there were several technical issues that limited the use of the system. Problems included the start-up battery draining, resulting in starting difficulties, and higher than anticipated consumption of deionised water, which meant the res- ervoir was too small, and needed frequent refilling. A dedicated operator would have been needed to maintain continuous op- eration, the report noted. While the unit “did not operate flaw- lessly”, it did not experience any safety issues, or any degradation in the seaport environment, said SNL. The Port of Long Beach noted that, as well as the technology not being fully developed and proven, any reefers in its new rail facility would be bound for in- land destinations, and it is not feasible to Maersk Container Industry // www.mcicontainers.com require a different power source just for their time in the port’s yard.

February 2018 25 CARGO HANDLING

26 February 2018 REEFER INDUSTRY

CA reefers available in NZ currently. When using MAXtend, the export- Daikin scores in NZ with Active CA ers place bags of hydrated lime on top of pallets of the fruit, and a curtain is fit- peaking with WorldCargo News at New Zealand avocado growers are looking ted at the container door. The container Intermodal Europe in Amsterdam is flushed with nitrogen, and the vents Slast November, Mr Ah Huat Goh, towards active controlled atmosphere closed. Mitsubishi offers technology to GM, global marketing and service, Reefer monitor O2 and CO2 levels remotely. Container Department, Daikin, made the technology as they expand exports into While MAXtend is an option, the case that active technology performs bet- freight service provider regarded Ham- ter for controlled atmosphere (CA) reefer international markets burg Süd’s EverFRESH 40ft CA con- container systems. CA containers are available in NZ, but to China, as the best available transit time tainers (using the previous Carrier Ever- In summary, active systems that pro- shipping lines still have some way to go in is around 17 days, and there could be FRESH active CA system) as the best duce nitrogen gas are faster, by as much bringing the technology to this particular quarantine issues in China, with the first option for avocados, due to its built-in as a full day, at pulling down the oxygen market. One exporter, the Darling Group, few shipments in particular. With regard nitrogen generator, but it noted that these level inside the container, compared to asked its specialist freight service provider to CA technology, two systems are well are no longer being manufactured. The passive systems, slowing down the respir- to comment on whether avocado exports known. One is the MAXtend system spokesperson said that other newer CA ing rate and water loss. Active technology to China would need CA, and, if so, what from Mitsubishi, which can be installed in systems either had “teething issues”, were also creates positive pressure inside the technology was preferred. most reefer containers. This includes 20ft not available on NZ trades at this time due Daikin’s Active CA system has been tested container, which prevents the ambient air The freight service provider responded units, which is important to exporters, as to service changes by shipping lines, or with New Zealand avocado exports to Korea, from entering the container through any that CA is “pretty essential” for sea freight shipping lines do not typically have 20ft were not yet tested with NZ avocados. v and China now beckons leaks, which becomes more of an issue as containers age. Goh stressed that Daikin was filling a gap in the market left after other reefer equipment manufacturers switched to passive technology. This month, Daikin announced that Avanza, a New Zealand-based supplier of premium Hass avocados, has completed THE POWER OF THE WORLD a successful trial with its Daikin’s Active CA technology. “Avanza trialled a proof of concept shipment of 6,500 kg avoca- dos between the ports of Tauranga, New Zealand, and Busan, Korea,” said Daikin. The Cold Chain Specialist – Fuwa Reefer Containers “The positive outcome now sees Daikin’s Active CA in pole position for the trans- portation of next season’s avocados.” Year-end trial The trial took place in December, to- wards the end of the NZ avocado season, which runs from September to January. Colin Partridge, technical manager and representative of Avanza, explained: “CA reefer technology is essential to our busi- ness, as avocados are a high-respiring car- go, and need precise optimal atmosphere levels throughout transit to safeguard quality over long distances. As the only active, rather than passive system in the market, we wanted to trial Daikin’s Active CA technology to see if the benefits of an active system are genuine. We’re delighted with the results, and are now discussing the use of Daikin’s system for next sea- son’s shipments.” Daikin’s Active CA system is based on vacuum pressure swing adsorption (VPSA), an active atmosphere separation The Advantages of Fuwa Reefer Containers Leading International Production Equipment technology that can create the optimal controlled atmosphere very quickly. It Custom Made Hennecke Foaming does this by using the mineral-adsorbent Materials and components Machine zeolite to capture nitrogen from the air, according to customers' 10 sets of the most advanced and transfer it into the reefer container, SUS304 Flat-floor requirements. Hennecke foaming machines, allowing oxygen levels to be quickly re- duced, without the need for additional Modified sandwich foaming nitrogen gas injection. technology. “Daikin’s Active CA represents a new Lights PVC Curtain and innovative approach to cargo care, Foaming Quality which is providing both shippers and ABB Robot Arms shipping lines an opportunity to provide Foaming room is equipped 60 sets of ABB Industrial new services and added value to their with Thermo-Hygrometer, Robot Arms, customers,” said Goh. “For produce such Dehumidifer and AC system High level of automation. as avocados and apples, food scientists and growers alike understand the benefits of consistently low oxygen and low carbon dioxide settings during transit.” Advanced Inspection Automatic Welding For the Avanza trial, Daikin’s engineer- Center ing team installed an Active CA ‘kit’ onto Equipment a 20ft ZESTIA unit that had been CA- Our own National Laboratory 242 sets of advanced provisioned. The ability to retrofit active which is certified by CNAS. Miller welding machines. CA onto CA-provisioned units ensures that upgrading containers is quickly achievable, added Daikin. New Zealand traction 20'RF, 20'RH, 40'RH, 45'RH, 48'RH, Reefer Container for Inland 20'RH, 40'RH Supreme Freezer Getting its Active CA system known in 53'RH Marine Reefer Container Transportation Reefer Container (-60℃) 10'RF Offshore Reefer Container the NZ market could be an important step for Daikin, where growers are eyeing a significant increase in avocado exports after NZ became just the fourth country (behind Peru, Chile and Mexico) to agree a protocol on phytosanitary requirements for avocado exports to China last Novem- ber. The first shipments arrived in China this month, carried as airfreight. At 50,000 trays in the first year, export volume is expected to be small to begin with, ac- counting for 2% of NZ’s total crop. The growth potential, however, is enormous, and sea freight is expected to (Fuwa USA) AXN Heavy Duty play a major role as the trade develops. Jen (Fuwa Europe)Valx B.V Scoular, CEO of Avocados New Zealand, GUANGDONG FUWA EQUIPMENT MANUFACTURING CO., LTD. told WorldCargo News that exporters are (Fuwa Australia)Fuwa K Hitch Pty Ltd Tel：+86 757-22191371 Web：www.fuwa.cn E-mail：[email protected] anticipating shipping to China in reefer (Fuwa Singapore)Fuwa Engineering (S) Pte Ltd. containers for the 2018-19 season.

February 2018 27 REEFER INDUSTRY

were connected to a central re- frigeration system that circulated Carrier celebrates 50 years cold air through two portholes. hough the industry takes Recognising the need for an in- the ‘front wall’ or ‘picture This year marks the 50th dependent reefer container, Car- Tframe’ reefer machine for anniversary of Carrier’s invention of rier retrieved the rail unit plans, granted today, the idea was not an and converted the narrow-profile immediate success. First devel- the front wall container refrigeration electric refrigeration machine to oped in the 1950s as a ‘bolt-on’ fit the front wall of a shipping machine for sidewall mounting unit, a version of which is used in container. Carrier’s Frostmaster on rail cars, several prototypes virtually every reefer container container refrigeration unit for were built and tested with a Ca- marine shipping debuted in 1968. nadian rail line, but the idea never Products Division in Syracuse, shipping. Around the same time, After acquiring the Transicold gained traction. New York, saw an opportunity for some lines had introduced insulat- Company in 1970, container pro- In the mid 1960s, Carrier en- containerised refrigeration as an ed or ‘porthole’ containers, which duction was aligned under the gineers working in the Special alternative to bulk refrigeration could carry refrigerated cargo, and Carrier Transicold banner, and the first large sale of container units was made in1972, with 500 going to Polish Ocean Lines. Greater success took time. Dig- ging back through the archives shows that it was not until 1978 (according to data published in what was then the Containerisa- tion International World Container Census) that the global popula- tion of integral reefers matched that of porthole units, with the Seaco has purchased 100 NaturaLINE reefers, which use the natural refriger-

global fleet of each reaching ant CO2 53,000 TEU. Though porthole systems persisted in some of the ever, is proving to be a challenge. of the CFCs,” said Yeo. “As such, north-south trades, the global Willy Yeo, director of mar- the protocol permitted the use of fleet stopped growing in the early keting, Global Container Re- HCFC refrigerants through 2020. 1980s, and then declined. frigeration, Carrier Transicold, In the 1990s, some container re- The front wall system really understands and appreciates that frigeration system manufacturers became the new standard for new switching to a new refrigerant is offered HCFC-based systems and reefer containers towards the a big commitment. A new reefer even HCFC conversion options end of the 1980s. It took Carrier is a 15-year investment, and “that for existing CFC systems.” Transicold 20 years to sell its first means units purchased today will But HCFC systems soon disap- 50,000 container refrigeration very likely be in service in 2030”, peared. “Interim refrigerants det- units (by 1988), and that number he noted. With this in mind, Car- rimental to the environment were was doubled in the following five rier cautions against trying to ex- found to be a disruptive, unneces- years, achieving cumulative sales tend the life of new HFC systems. sary expense, and were short-lived, of 100,000 units by 1993 – the Yeo recalled that, after the as regulators ultimately mandated same year Carrier Transicold be- 1987 Montreal Protocol called their elimination as well. gan production of container re- for elimination of CFC refriger- “Today we see parallels as drop- frigeration units in Singapore. ants, such as R-12, and HCFC in refrigerant solutions with half Two decades later, in 2014, refrigerants, such as R-22, Carrier the GWP of those they replace Carrier celebrated the sale of its introduced the first container re- are being introduced,” continued one-millionth container refrig- frigeration unit to use R-134a, a Yeo. “While the GWP reduction Safe and smart eration unit, a figure that had non-ozone depleting HFC refrig- is significant, they are still hun- topped 1.2M by the end of 2017. erant, in 1993. “Others soon fol- dreds of times greater than a natu-

power plug for both Carrier has kept production near lowed, making R134a the indus- ral refrigerant such as CO2, and Jurong Port in Singapore, where it try standard,” noted Yeo. “By 1996, will eventually be in the crosshairs truck and vessel has made significant investments, CFC-based and HCFC-based of environmental debate, just as and is proud of its “100% on-time container refrigeration systems HFCs are today.” When transferring the reefers between delivery rate”. were no longer offered, ahead of While Carrier is firm in its the protocol’s ban taking effect.” view, it is also being pragmatic truck and vessel simply use a screwdriver On the horizon The transition to HFC refriger- concerning customer demands, to turn the plug between 3H and 6H Looking ahead, the industry faces ants was successful, but Yeo recalls and is offering an “optional provi- – safe, easy and fast. a major challenge in convert- that it was “not the easiest solution sion with new PrimeLINE units ing to natural refrigerants. Car- for container refrigeration manu- to convert to the lower-GWP re- rier was the first (and is still the facturers in the 1990s, and nor was frigerant R-513A”. Yeo cautions, only) reefer manufacturer to offer it the only option available based however, that “with a GWP of a reefer machine using a natural on the Montreal Protocol”. The 631, R-513A is only an interme- refrigerant. Its NaturaLINE unit industry could have used other diate solution, and the refrigerant

uses CO2 to achieve a GWP of 1. HCFC refrigerants. “Although itself comes at a cost premium”. NaturaLINE now has the ability this class of refrigerants was still By contrast, going to CO2 with to chill to -40 degC, but getting ozone-depleting, its impact on NaturaLINE “takes customers di- v the market to adopt CO2, how- the ozone layer was less than that rectly to an end state.” Seaco tests NaturaLINE Name...... Late last year, Carrier Transi- first order with a leasing compa- cold announced that Seaco had ny is a welcome start for Carrier the WorldCargo News ...... placed an order for 100 Natura- Transicold, Banister noted that LINE CO2 reefer units, making the market is still waiting to see subscription package Title...... it the first leasing company to what will be on offer from other order Carrier’s next generation reefer machinery OEMs. Seaco’s ...... reefer machinery. customers are “aware that there WorldCargo News brings you worldwide news, features and analysis, updating you on This is an important step, will be pressure to look to use the latest in containerisation, cargo handling, port and terminal operations and Company ...... and, speaking with WorldCargo alternative refrigerants, and they intermodal developments. News, John Banister, VP reefer are waiting for manufacturers ...... and tank containers, Seaco, said of reefer machines to come up To ensure you get your personal monthly copy plus ezine and online access send us this the company is looking to the with solutions”, said Banister. “I form and we will start your subscription with the very next issue. Our all-in rate for Address ...... future as it makes its first move am not sure anyone is very clear € with natural refrigerants. “Seaco as to what that final solution will anywhere in the world is just £295 455 or US$590. Or why not take advantage of our ...... is one of the leaders in the reefer be, and everyone is taking a ‘wait discounted extended subscriptions? Please see www.worldcargonews.com for details. industry, and, as everybody is and see’ attitude, very much like  ...... aware, due to regulatory chang- the change from R12 to R123a.” YES, please enter my subscription to WorldCargo News. Number of years...... es, our current preferred R134a Among the issues to address ...... platforms will eventually be is service and support for CO € 2 I enclose my cheque or bank draft for £...... US$...... Must be drawn on a UK bank. phased-out and replaced. Whilst in the market. The reefer ma- Please invoice my company - subscription and online will commence on receipt of payment...... there are a number of directions chinery itself is very different this could take, including natu- to R134a equipment, and the Please debit my American Express Visa Mastercard (please indicate card and currency used) Company business ...... ral refrigerants, we are looking refrigerant pressure is much at all potential solutions, so that, higher. Banister said that, while Expiry date ...... when the time comes to change, service is ultimately a question we are as informed in our for Carrier Transicold to address, Email (required) ...... Signature...... Date...... decision-making as we can be.” the industry has made funda- The 100 NaturaLINE con- mental changes before, without ...... WCN Publishing: TheNorthbank Coach House, 245 Bridge Bridge Street, Street, Leatherhead, Leatherhead, SurreySurrey KT22KT22 8BL,8BX, UK.UK. tainers are for a specific back-to- servicing and support being ad- back deal (meaning they will re- versely affected, “and we believe email: [email protected] fax: +44 1372 370111 ...... Please make payments to: WCN Publishing WCN PUBLISHING VAT No: 644 2190 53 www.worldcargonews.com place other reefer containers in all manufacturers will continue an existing contract). While this with that focus,” he concluded.

28 February 2018 CONTAINER INDUSTRY

they took delivery of a slightly greater ownership. This exceeded the lessors’ 2.050M TEU. purchase of new containers, but was to Box leasing enjoys a better year In 2017, leasing firms purchased at further increase the age profile of their least 1.9M TEU as standard dry freight fleet. It came about largely as a conse- arket developments last year types. This set a new record, as it was quence of the Hanjin collapse, as well as again prompted many ship- In 2017, the box leasing industry benefitted slightly above the corresponding total in the ongoing merger activity, which cut Mping lines to lease new equip- from an upturn in demand and uncertainties 2014 (when the lessors’ purchase of reef- the requirement for extra containers at ment, in favour of buying direct. Nev- ers and other specials was greater than in a stroke, and so encouraged a greater ‘re- ertheless, lessors’ investments have not associated with container supply and pricing 2017). However, it came after a relatively cycling’ of existing inventories, in prefer- been evenly spread, as the top name, Tri- weak two-year period, when the leasing ence to buying new. ton, alone accounted for 40% generates a cash return of more than amounted to 3.7M TEU, of which 90% industry had bought only 1M TEU in The world’s container leasing industry 9%, which is a marked improvement on (3.35M TEU) were standard dry freight. each of 2015 and 2016. As a result (and SLB impact enjoyed a significant turnaround in its 2016. Around 60% of this production was car- notwithstanding the improved outlook The heightened SLB activity of 2016 fortunes during 2017, as dry freight in- ried out in the second half of the year, in 2017), the box leasing sector already resulted in a sizeable drop in the global vestment recovered strongly, on the back Output steady amounting to an average rate of almost had some ground to make up, in pure manufacturing figure, which (at 2.25M of improved demand, and uncertainties More critically, new box production 350,000 TEU/month. Leasing compa- investment terms, during that year. TEU) was lower than anything seen in on the supply side. By contrast to 2016, was sustained throughout the whole of nies accounted for almost 55% of the to- Moreover, the lessors’ (fast-growing) the past decade (apart from 2009). The when the container industry had been 2017, despite fears to the contrary, and tal annual figure, equivalent to 2M TEU, involvement in sale and leaseback (SLB) resultant production surge of 2017, dogged by the failure of Hanjin Ship- it further appears set to hold firm into leaving 1.7M TEU to go to shipping rose to a peak during 2016, when more which occurred despite the new manu- ping, and was undergoing a renewed early 2018 – despite the onset of colder companies. The lessors’ intake was sec- than 1M TEU of older containers were facturing regulations, equated to a near bout of industry mergers (concerning weather in China. Global output in 2017 ond only to that achieved in 2014, when transferred from line to leasing company 50% rise in output – and an increase of top lessors and lines alike), the outlook was more upbeat in 2017 than at any time during the preceding two years. Container production had also been cut back severely in 2016, which prompted fears of a container shortage at various times in the following year. Such uncer- tainties were to work in the favour of the leasing industry, as has tended to happen in the past. Rising rates They were to immediately translate into an improved rate of utilisation for the majority of lessors, with this, in turn, prompting the first significant recov- ery in lease rates in around five years. The per diems associated with standard dry freight (on typical five-year term) had earlier fallen to an all-time low in 2015-16, when the market uptake was at its weakest, and the 20ft average ac- tually touched US$0.30. Unsurprisingly, the cash investment return generated from such a deal was similarly down at a new minimum (of 8.5%) during that low point. However, the combined effect of bet- ter demand, underlying concerns about container availability, and the prospect of higher investment/procurement costs were to fuel a gradual rate increase throughout 2017 and, by the year-end, the same 20ft average was back well above US$0.50 per day – and in some instances nearing US$0.60. At the same time, utilisation was running at 97% and greater for the leased fleet as a whole. In short, shipping lines have proven just as keen to lease in 2017 as in recent years, with the prevalent uncertain state of af- fairs further fuelling their uptake. Prices hold up Uncertainties about container supply usually favour the box manufacturing sector as well, although factories eve- rywhere in China had to grapple with new environmental rules that required the mandatory use of waterborne paints from April 2017 onwards. This has been a key development over the last year, as their implementation and deployment has required a long-established con- struction process to be reconfigured. Even though the new procedures have since been adopted successfully by the vast majority of box building plants, and without too much disruption, this out- come could not have been predicted in advance. Concerns about the use of cost- lier materials and lengthier drying cycle times – especially in the coldest winter months – were foremost in the minds of many buyers, and fed into fears that a container shortage might be imminent, or, at the very least, that there might be a substantial rise in finished container prices. In the event, new box prices tended to hold stable throughout much of 2017. They did initially increase during the second quarter of 2017, in line with the introduction of the new painting process. Rising steel costs were also to have some impact. However, by the year-end, the price average had only risen by around 5-10% on their first quarter level, with both standard and reefer production be- ing affected. Moreover, the outlook is for the current headline 20ft standard price of US$2,200-2,300 to hold steady during the early months of 2018. With the headline 20ft lease rate presently at around US$0.55-0.60, its application to an average delivered price of US$2,250

February 2018 29 CONTAINER INDUSTRY

two thirds for leasing companies. comprising as many as 1.4M ing use of it. For the increasingly has also curbed the rate of fleet Table 1: Leasing industry’s newbuild container purchases (all Their purchase of new standard TEU. The figure had already risk-averse leasing industry, SLB growth for lessors in more recent types, in rounded TEU) dry freight containers was to al- been rising steadily for several offers market growth at a low years, as inbound SLB increases most double. Predictably though, years, and is now running at dou- cost, and with an almost guaran- the need for older equipment to 2016 2017 much of the investment made ble its level of five or more years teed financial return. Thus, many be retired and replaced. Triton International Ltd 205,000 795,000 by lessors in 2017 went to cover ago. Shipping companies, by con- lines and lessors alike view it as In 2016, the shipping line sec- Textainer Group 205,000 245,000 replacements, following several trast, have not tended to increase a ‘win-win’ approach –especially tor experienced a 6% reduction Beacon Intermodal Leasing 235,000 135,000 Seaco Global 265,000 100,000 years when newbuild purchasing their rate of old box replacement, in a market that is becoming ever in the size of their owned fleet, Florens Leasing 75,000 260,000 had been relatively erratic, against due to the growing preference of less predictable. which was actually more severe CAI International 25,000 240,000 a more sustained intake of older many lines for SLB – as opposed Nevertheless, the combined than that endured during the SeaCube Leasing 25,000 95,000 SLB equipment. to outright resale and reinvest- impact of this activity, when cou- industry crash of 2009. It was a UES International 20,000 65,000 ment in new equipment. The pled with a generally low and consequence of both the afore- Blue Sky Intermodal 25,000 10,000 Scrapping boom SLB transaction enables them to erratic investment in new box mentioned high volume of SLB Touax Container Services 30,000 - The leasing industry commit- raise additional cash from their equipment, has greatly restricted business and relatively limited Other 90,000 55,000 ted to a record disposal of older oldest amortised equipment, the longer-term annual growth investment made by the lines in Total - leasing company 1,200,000 2,000,000 containers during 2017, possibly whilst at the same time retain- rate of the lines’ owned fleet. It newbuild equipment during that Total - shipping line (and other) owned 1,050,000 1,700,000 Grand Total 2,250,000 3,700,000 year. The subsequent fleet growth Leasing company share (%) 53.3 54.1 of around 2%, calculated for the lines in 2017, has hardly redressed Companies ranked by total purchase in 2016-17. Source: Box building the balance. Although shipping and leasing industry data lines also committed to a greater purchase of new containers in Table 2: Leasing industry’s container fleet size (all types, in 2017, compared to the previous rounded TEU) year, it was still offset by further SLB and a slight increase in their Jan 2017 Jan 2018 Triton International Ltd 5,050,000 5,650,000 own replacement rate. Much the Florens Leasing 3,500,000 3,700,000 same is being predicted for 2018, Textainer Group 3,155,000 3,250,000 even if the lines manage to ac- Seaco Global 2,450,000 2,400,000 count for as much as 50% of all Beacon Intermodal Leasing 1,060,000 1,320,000 production in the coming year. CAI International 1,085,000 1,220,000 SeaCube Leasing 1,220,000 1,140,000 Fleet growth Touax Container Services 555,000 525,000 The leased fleet has been enlarg- Blue Sky Intermodal 360,000 365,000 ing at an altogether more robust UES International 220,000 265,000 Other 995,000 865,000 rate, with both 2016 and 2017 Total - leasing company 19,650,000 20,700,000 illustrative of the trend. Growth Total - shipping line (and other) owned 18,100,000 18,450,000 in 2017 amounted to more than Grand Total 37,750,000 39,150,000 5%, whilst it exceeded 7% dur- Leasing company share (%) 52.1 52.9 ing the preceding year, which fell broadly in line with the longer- Source: Box building and leasing industry data (Jan 2018, incorporating term trend. The increase in 2017 estimates) alone amounted to an extra 1.05M TEU added to the lessors’ during the past six years, in sharp are of European origin, but the total box count. By further com- contrast to the 50% increase importance of this region con- parison, the global container fleet achieved throughout the same tinues to wane. The only merger increased by 3.5% (1.4M TEU) period for the rental fleet. of any significance to have oc- during 2017, against less than 1% curred in 2017 involved an- (280,000 TEU) in 2016. It is thus The league table other European name, Magellan apparent that the leasing side has As already hinted, though, the Maritime Services (of Germany), continued to fuel global expan- growing dominance of the leas- whose 180,000 TEU-strong dry sion, and therefore gained yet ing industry has been accom- freight fleet was acquired by the further ground at the expense panied recently by a renewed international container invest- of the fleet owned by shipping round of company mergers, ment group, Buss Global, and firms. which has brought the prospect placed under management with By the start of 2018, the box of additional consolidation in Textainer. This followed Magel- leasing industry had acquired its wake. The emergence of two lan’s filing for insolvency late in control of almost 53% of the new mega-sized lessors in 2016, 2016. As a result, Europe has lost entire global count, which rep- in shape of Triton International yet further ground to the US. resents its highest point in more Ltd (TIL) and Florens Group, Textainer, in addition to this than 30 years. Its respective hold- was to further change the land- sizeable intake of managed ing of standard dry freight inven- scape, as it placed no less than equipment, was also a leading tories was even greater. The les- 45% of the entire rental count buyer of new dry freight con- sors’ overall fleet had also topped in the hands of just two firms. tainers in 2017, spending well 20M TEU, thereby surpassing TIL heads the hierarchy, with a above US$500M throughout another milestone, whereas the current fleet of more than 5.6M the year as a whole. However, it balance (owned by shipping lines TEU, followed by Florens and its was not the most prominent, as and all other transport operators) estimated 3.7M TEU. The two Textainer’s acquisition of around remained relatively static, at less past top rankers, Textainer Group 250,000 TEU was to be vastly than 18.5M TEU. Its size has, in and Seaco Global, are now in eclipsed by TIL’s far greater pur- fact, undergone very little change third and fourth place, respec- chase of almost 800,000 TEU. tively, the former controlling a total of 3.25M TEU, and latter TIL’s big spend 2.4M TEU. This stands out as the greatest de- A further three names – Bea- livery of standard containers ever con Intermodal Leasing, CAI to be made to one company in a International and SeaCube Con- single year, and was, in fact, only tainer Leasing – can lay claim 25% lower than the leasing in- to fleet sizes in excess of 1M dustry’s entire purchase in 2016. TEU, although there are now It amounted to an expenditure only a handful a smaller firms of more than US$1.5B, although (ranked below these three) that TIL had already reported back in are competing in the mainstream November that its total outlay for arena. They include Touax Group the year to date (including new (France), Blue Sky Intermodal dry freight and reefer, plus SLB (UK), and UES International equipment) had, by then, already (China). This combined group- exceeded US$1.6B. ing, running from TIL at the top Most of this record investment to UES, today comprises the 10 went to fuel an expansion of more leading names. Most other (small- than 10% in the (already massive) er) lessors are of less than 100,000 TIL fleet size, whilst also contrib- TEU, and largely specialised. uting to a sizeable replacement of older equipment, much of Geo split which had originated from ear- The recent mergers, in addition lier SLB transactions. Its robust to their scaling up of operations, investment was underpinned by have further divided the global a strong financial performance box leasing sector into two prin- throughout 2017, which saw the cipal geographical camps – the revenues derived from container US and Asia. TIL, Textainer, CAI leasing rise to US$300M for the and SeaCube are all established third quarter of the year, against US names, whereas Florens, US$850M generated throughout Seaco and UES are predomi- the lengthier nine-month period nantly Chinese. Beacon is US- (January-September). based, but owned by Japanese Pre-tax income amounted to principals, and so crosses the di- US$70M for the third quarter, vide. Many of the smaller names, compared with approximately headed by Touax and Blue Sky, US$175M for the first nine

30 February 2018 CONTAINER INDUSTRY months of the year. This is indicative case one or two years earlier, although dicate another year when the leasing of the upturn enjoyed in more recent the market remains as unfathomable as side may dominate. It could thus again months by the box leasing industry as ever. Global container demand recov- achieve the biggest rate of fleet growth, a whole, and of the real gains in syn- ered relatively strongly in 2017, on the as well as almost certainly accounting ergy now being realised from the earlier back of increased trade growth, and for the majority of replacement pur- merger of two already big-scale rivals. some further increase is being forecast chases. As of January 2018, global output TIL further reported a marked improve- for 2018, especially given the present ro- was still running at more than 300,000 ment in its utilisation rate, with its fleet bust performance of the world economy. TEU/month (ahead of the Chinese average rising from around 95% at the New container prices seem to have sta- New Year in February), and divided rela- end of 2016, to 98% by the final quarter bilised as well, at least for now, with the tively evenly between leasing firms and of 2017. factories’ switch to the alternative paint shipping lines. However, at least a dozen TAL accounted for at least 40% of process completed. Moreover, the con- established lessors were still actively buy- the lessors’ entire new box purchasing in tinued inability of many shipping lines ing at the start of the year, and most are 2017, leaving a further 40% to be split to raise all the funds they require for expected to continue with their invest- relatively evenly between Textainer, CAI their various investment programmes ment throughout the coming months. v and Florens. Other important buyers (covering ships, ports, containers, etc) of dry freight containers were Beacon, will likely maintain their reliance on Once the fallout from the Hanjin Shipping followed by Seaco, SeaCube and UES. container rental – much as it has done collapse had largely been brought under con- The likes of Beacon, SeaCube and Seaco through the past eight years. trol, the container industry was in a much were also active in the reefer sector, al- The early signs, suggested by the ini- healthier position last year than at any time though this was to lose ground collec- tial production split in early 2018, in- in the preceding two years tively in 2017 to its standard dry freight counterpart. The overall fleets of Beacon and CAI grew by the biggest increment during 2017, with the former (fuelled by both newbuild/SLB acquisitions) man- aging almost 25%. Trailing behind Other lessors fared less well. Although Organised by Textainer and Florens also managed some positive fleet growth (albeit lower than some of their rivals), the likes of Seaco, SeaCube and Touax suffered a Follow us on slight fleet contraction. Seaco, for one, has been impacted of late by the financial restrictions that have recently been ap- plied to its Chinese parent, HNA Group, following a reported non-payment of loans. Touax has also found itself less well placed to attract funding for container procurement, and was thus unable to match its replacement needs last year. Nevertheless, most lessors are reveal- ing a brighter position for 2017. As with 6-8 NOVEMBER 2018 | AHOY ROTTERDAM TIL, their plight has been aided by a successful conclusion of the Hanjin re- covery programme, which was launched in the aftermath of the Korean line’s bankruptcy in late 2016, but was largely settled by the early part of 2017. This activity had had an inevitably adverse impact on the financial performance of most lessors. Textainer, despite suffering a small reduction in its leasing revenue stream during the first nine months of 2017, has reported an improved EBITDA, which rose by 6% during 2017 (compared with the same nine-month period in 2016), to reach US$274M. The adjusted EBITDA figure amounted to US$100M for Q3 2017 in isolation, whereas it had been down at US$67M a year earlier, and at US$91M for the preceding (second quarter) pe- riod. It was generated on a third-quar- ter revenue of US$112M, which, by contrast, was largely unchanged on the preceding quarters. Textainer’s revenue/ earnings may seem low, as they only ap- ply to its owned fleet, and thus exclude all managed equipment. The latter pres- ently makes up 18% of the lessor’s total YOUR PLATFORM IN EUROPE TO MEET count, equivalent to roughly 600,000 TEU at the start of 2018. Almost a third is contributed by the recently added THE GLOBAL CONTAINER INDUSTRY equipment from the former Magellan. Revenue rise CAI’s box leasing revenues went up more substantially in 2017, as they grew by over 10% in the opening nine months of the year. They amounted to US$170M for the entire period, and US$62M in the third quarter on its own. One year earlier, during Q3 2016, this same revenue stream fell short of US$50M. The company’s net income amounted to US$17.6M for the latest third quarter, compared with a net loss one year earlier. The CAI fleet also features some managed containers (whose revenue and income is not included in the company’s financial accounts), although their share is now down to almost 5%, compared to nearer 15% in 2016. Both CAI and Textainer point to recent gains in fleet utilisation, with the former reporting an increase of five percentage points for the year up to the fourth quarter of 2017. By For more information, please call +44 (0)20 7017 5112 REGISTER YOUR the year-end, it had surpassed 98%. The Textainer fleet was, by then, also achiev- www.intermodal-events.com INTEREST ing in excess of 97%. As already noted, the outlook for 2018 appears more settled than was the

February 2018 31 CARGO HANDLING

the American participation in the manufacturing and delivery of the A snapshot of yard cranes RMG cranes,” the GPA explained. “The contractor will be asked to otable among recent de- include an American participation velopments in the yard The RTG/RMG sector has seen percentage value to the project.” Ncrane sector is the news some interesting developments Bids would be evaluated based on (reported on page 1 of this edition qualifications/experience, price, of WorldCargo News) that sections in the past few months, not least American percentage, crane loads, of the new Konecranes widespan and payment terms. RMGs for Georgia Ports Author- those affecting the US market It is not known how many ity’s (GPA) Mega Rail project will companies bid on the project, but, be built in the USA. There is a process for obtain- The first was for 33 specific items clearly, Konecranes put together The GPA was allocated ing a waiver to the Buy America that, it submitted to the FHWA, the best bid. As noted on page US$40M in grant funding this requirement, and there is also were “not manufactured in the 1, Konecranes has confirmed the project in 2016, under the “Fos- precedent for such a waiver for US in [a] manner that the iron gantry structures will be fabricat- tering Advancements in Ship- widespan RMG cranes. and steel complies with FHWA’s ed in the US, but, at this stage, has ping and Transportation for Buy America requirements”. The not decided where. the Long-term Achievement Precedent list includes motors, brakes, cou- Konecranes RTGs at GCT Deltaport Savannah is regarded as ‘Kone- of National Efficiencies, Sig- As noted by WorldCargo News in plings, trolley wheels, gearboxes, cranes country’ due to all of the nificant Freight, and Highway the November 2016 edition (p41), load cell pins, and the main power cal components, and (6) the head are no US manufacturers of yard RTGs and virtually all the Projects”(FASTLANE) scheme. the Palmetto Railroad, a common transformer. The FHWA agreed block and spreader bar. RMG cranes competing in the quay cranes there being supplied This is a federal scheme adminis- carrier and division of the South that “there are no domestic In submitting its request, the global market, and that none of by the Finnish company, but it is tered by the Federal Highway Ad- Carolina Department of Com- manufacturers of these 33 com- GPA attached an independ- the approximately 50 intermod- understood the bid attracted in- ministration (FHWA), and there- merce, obtained an exemption to ponents of RMG cranes”, and it ent review of the RMG market, al RMGs operating in North terest from several other manu- fore comes with a requirement for the Buy America provision that issued a waiver. prepared by Richard Cox, who America was built in the US. facturers. a “domestic manufacturing pro- attached to loan finance for four A second waiver was subse- was previously general manager There was also a comment period cess for any steel or iron products new widespan gantry cranes for quently sought and obtained for of equipment and facility engi- for anyone to raise objections to Contender (including protective coatings) the new rail terminal on the site six additional components: (1) neering at the GPA, and is now either waiver, but no comments Hans Künz, for one, is well known that are permanently incorporat- of the former Charleston Navy trolley components, (2) bogie an independent consultant. This were received. in the USA for widespan RMGs, ed in a Federal-aid construction Base. components, (3) trolley structures, was fully disclosed in the review and would be expected to have project”, otherwise known as a For its project, the GPA actually (4) bogie steel structures, (5) E- process. Made in the USA been in the running, particularly ‘Buy America’ requirement. sought two separate exemptions. room structure, cab, and electri- That review noted that there While there are no active US- if it could put together a package based RMG manufacturers at this using a US fabricator. As far as is point, the GPA certainly recog- known, Künz has not used a US nised the need, when spending fabricator for any of the RMGs it federal funding, to “encourage has delivered to the US to date, and maximise American partici- and it might not go down that pation, while meeting the perfor- route at all. Buy America only mance standards required for the comes into play if the customer is RMGs”. using grant funding for part or all To achieve this, the GPA of the purchase. adopted “an innovative procure- Meantime, Künz has two or- cost down ment approach that allows for ders in the US market at the full and open competitive bids”. moment, both with CSX. One Manufacturers could put in a base is for another RMG for its Win- bid using what they considered terhaven Terminal in Florida, and the best products, “whether do- the other is a larger order for eight mestic or foreign”, to meet the machines with a massive 50m performance specification, while span and dual cantilevers (13m within reach meeting any Jones Act transport and 22m) for CSX’s Fairburn Ter- requirements. minal in Georgia. “An alternative bid request will These could, however, be the be made from the contractor that last RMGs CSX orders for some utilises the same base bid amount, time. As noted in the January 2017 but includes a strategy to increase edition of WorldCargo News (p1), LASE anti-tractor lift Germany’s LASE GmbH has Both scanners are mounted commissioned its LaseTLP in the middle of the ARMG anti-tractor lift system on eight beams facing the truck at a double cantilever automated height of around 1.5m. The RMGs (ARMGs) at the Sun container lift is automatically Kwang Container Terminal stopped if a chassis lift is de- (SKCT) in the Port of Incheon. tected. This is designed to prevent ac- The biggest advantage of cidental road truck lifts when a LaseTLP, says LASE, is the fast twistlock is locked or jammed detection of the lift. There are in the chassis as the ARMG many anti-tractor/trailer lift commences the container lift. systems on the market, but, ac- For this application, LASE cording to LASE, they mostly installed two 2D-Laser scan- rely on horizontal scan planes ners from its 2000D-11X series to detect whether the chas- with a vertical scan plane, on sis/trailer wheels have left the the side of the gantry where the ground. Its point is that, with road trucks are handled. just one jammed/locked twist- The scanners are able to ‘see’ lock at the back, the truck cab- over and through the 1m-tall in could be lifted to a height safety barrier separating the road of 4m before the chassis/trailer truck lane from the ARMGs. wheels leave the ground, so se- The scanners are an important vere injuries and damage claim safety measure, because road costs may arise. trucks have different trailer/ Following successful imple- chassis heights, and sometimes mentation, SKCT has report- the drivers are careless. They edly ordered more systems are not installed on the other from LASE. The company also cantilever side, where internal has another project under com- tractor/trailer sets are handled. missioning in the port. E4.1 e-chain® for reachstackers – For maximum unsupported lengths with supreme motion plastics® for stability Trucks waiting to be unloaded by ARMGs at SKCT (photo: LASE Easy moving energy and data and reduce downtimes with E4.1. Light-weight, corrosion-resistant and GmbH) requires little maintenance. Available as a single e-chain® or preassembled system. igus.eu/reachstacker

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32 February 2018 CARGO HANDLING

Technik with Prysmian Protolon (SMK) tric portal cranes, manufactured by SMM cable without fibre, in accordance with in St Petersburg. First RTGs the customer’s requirements. The machines, reported to be worth Rubber and rails US$3.3M each, do not have full diesel In another development, Norfolk South- for Paraguay generator packs for redundancy. With ern Railroad has purchased two eight- Last year, Konecranes received an confidence in local power supplies, No- wheel Kalmar RTGs for its Landers In- order for two economical and light- rilsk Nickel opted for a single quick fit/ termodal Terminal in Chicago. Spanning weight Boxhunter RTGs from Ter- release auxiliary diesel that can be ex- 6+1 rows, the RTGs can stack containers port SA (Terminales Portuarias SA) changed between the RTGs for chang- 1-over-4 high. in Paraguay, for delivery early this ing stacks or other moves off the cable Though they are being used at an in- year to the container terminal locat- runway. In terms of climate packages, termodal terminal, the RTGs will not ed in Villeta, near Asunción, on the Liebherr RTGs are typically designed to handle trains. Norfolk Southern has rede- Paraguay River. These are the first operate in ambient temperatures between signed Landers to feature a separate stack- RTGs in Paraguay. -20 degC and +40 degC. In this Arctic ing block, while the trains will be worked Terport’s machines stack 7+1/1- port case, special lubricants are provided, by reach stackers. Road trucks will be han- over-5, yet the operator sits in a along with auxiliary heating, snow covers, dled by both the RTGs and reach stackers. heads-up position in a cabin down at heated cabins, and so on. Road trucks will queue in a separate the truck lane, able to get in and out To support quayside container han- Truck Dispatch Area (TDA). The TDA in seconds to carry out other duties, dling, last year, Norilsk Nickel installed has been designed to eliminate conges- and has the use of advanced video two new 40t SWL Vityaz (Warrior) elec- tion in the stack, and control the dispatch New Kalmar RTGs at the Port of Baltimore and laser technology when operating the RTG. These are fully electric Boxhunt- ers with fibre optics included, and Cavotec has now reported that it won the electrification contract. The monospiral reels will feed 300m of multi-core power cable fitted with integrated fibre optics. Drive-In L under its new management team, CSX the standard has abandoned its previous rail hub and for RTG Electrifi cation spoke strategy and cut its capital budget from US$2.7B in 2016 to US$1.6B for 2018. The future of its next planned large intermodal terminal, the Carolina Con- nector in Rocky Mount North Caro- lina, is not yet confirmed. Some US railroad media have reported that the terminal could still go ahead, but it will be a “precision railroad terminal”, in ac- cordance with the Precision Scheduled Railroading model developed by the late CEO, Hunter Harrison, which is now being implemented at CSX. It is notable that neither of the two previous railroads to implement the strategy, (CN and CP) use widespan RMGs at intermodal ter- minals On dock at Baltimore Meanwhile, two other crane OEMs are making use of new load-out facili- ties to deliver RTG cranes fully erect. Last year, Rainbow-Cargotec Industries Co. Ltd (RCI), a joint venture between Cargotec Corporation and Jiangsu We add the “E” Rainbow Heavy Industries, opened a new jetty at the RCI facility in Taicang, China, to facilitate the delivery of fully erect cranes. to your RTG This month, Kalmar delivered six new E-RTGTM RTGs to Ports America’s terminal at Bal- with Drive-In L Solution and ProfiDAT® timore, on the US East Coast. The cranes were offloaded using two ships’ cranes Electrification of working in tandem on a Cosco Shipping heavy lift vessel. The 16-wheel RTGs are an important reference for Kalmar as it Rubber Tyred Gantries looks to build a presence in a market that has been dominated by Konecranes in re- cent years. Converting a conventional RTG into an electrical one The six new Kalmar RTG cranes will join a fleet that includes 12 Konecranes (E-RTG) means to shut down the diesel generator and machines delivered after 2002, and four older Kalmar units. Baltimore needs the to power the RTG with electrical power only – the basis cranes to handle its growing container for automation. This is possible with electric power business, which was up 11% to 596,972 containers last year. Ports America paid solutions, including E-RTG auto-steering and positioning US$12M for the new RTGs. E-RTGTM systems, developed by Conductix-Wampfler: Liebherr too with Drive-In P Solution Plug-In Solution, Drive-In P Solution, Drive-In L Fully erect delivery is increasingly (but not always) required. In March last year, Solution and Motor Driven Cable Reel Solution. Liebherr Container Cranes in Ireland achieved a first when it shipped out three 900t STS cranes fully erect from Cobh We move your business! Shipyard in Cork to Puerto Rico. Up un- til then, all Liebherr cranes built in Kil- larney left Irish shores in pieces, shipped from the small port of Fenit. Liebherr will www.conductix.com continue to evaluate the pros and cons of fully erect shipment, on a case by case ba- sis, as does Liebherr in Rostock when it ships mobile harbour cranes. The shipment of the fully built STS cranes was followed later in the year by Liebherr’s first fully built RTG shipment, E-RTGTM again following assembly in Cobh Ship- Motor Driven Cable Reel Solution yard, and again pre-commissioned. These with are 41t SWL, 1-over-6/7 + 1, 16-wheel- ers, and the customer was Norilsk Nickel in the Port of Murmansk. They are fitted with Liebherr drives and are full-electric, running on cable reels from Stemmann

February 2018 33 CARGO HANDLING

of trucks to the stack in sequence. Auto-TOS Reporting, and Auto- fied with the performance of our Each of its six lanes will be as- Positioning, with yard screen in RTGs, and I’m very pleased that signed to a particular reach stack- the operator cabin. GCT Canada they will begin to use our opera- Gulf Port Cranes for Chittagong er or RTG, and trucks will then will upgrade the existing fleet tor-assisting features,” said Heikki for delivery that year. It is not be dispatched at the correct time with the same features. Kreku, project manager, Konec- known whether the CPA ma- and to the exact slot to receive a “GCT has been very satis- ranes Port Cranes. v chines come from stock, or container. The position of all con- were built to order. tainers will be known through a The GPC cranes were deliv- container positioning system. ered this month by Wilhelmsen With the new system, truck- RTGs weighing in ers will no longer have to drive Ships Service (WSS), which Demonstrating the versatility of cell, annular load cell and handled the shipment from the around the Landers yard looking for containers on chassis. In an- its patented Container Weight twistlock, depending on cus- UAE to Bangladesh. The RTGs System (CWS) for VGM pur- tomer requirements. For the were offloaded from a barge in other important change, truckers will no longer be allowed into poses, Strainstall has installed it Hong Kong installation, four the UAE to a heavy lift vessel on four existing RTGs operat- diaphragm load cells were fit- for the voyage. the stacking area unless they have been called to be served, and will ed by DP World in Hong Kong. ted underneath the spreader- The CPA has also ordered This is the latest of several CWS connecting twistlocks, ensuring RTGs from Kalmar and Lieb- not be allowed to exit their cabs in the stacking yard. installations for DP World. The that CWS is integrated perma- herr recently. Three 16-wheel system has already been suc- nently. machines from Kalmar, stacking Norfolk Southern has high expectations for improved pro- cessfully installed on around 90 The VGM data are acquired 1-over-5 high and 6+1 wide, straddle carriers, again for SO- and transmitted as part of the were to be delivered in 2017. ductivity from implementing the RTGs. It is targeting a 60% im- LAS VGM weighing purposes, normal handling process of the Liebherr has an order for two at DP World Southampton. RTGs, so no time is lost. Strain- 8-wheel machines, stacking provement in trucker dwell time The two RTGs were transhipped from a barge in the UAE to a heavy lift for international import contain- In both applications, DP stall provided an industrial WiFi 1-over-6 high and 6+1 wide, World was looking for a prod- router to enable the system to vessel for transport to Bangladesh for delivery in 2018. ers, and a more than 100% in- crease in capacity. uct that can be retrofitted on communicate directly with the There is demand for RTGs existing equipment, while min- TOS, sending time-stamped Abu Dhabi-based Trans Gulf Dhabi’s International Manage- from stock, and ZPMC an- imising out-of-service time for VGM data to allow the TOS Port Cranes (GPC) has sup- ment & Construction Corpora- nounced last year that it has Canada deal Over on the North American west installation, testing and com- to automatically link the VGM plied two RTGs to the Port of tion (IMCC). IMCC previously developed a standard RTG de- missioning. Installation on the with a specific container. Chittagong in Bangladesh. De- built cranes for other OEMS, sign that it will sell from stock, coast, Konecranes has just report- ed an order from GCT Canada four RTGs was carried out Since the Hong Kong appli- tails of the order are scarce, but most notably Noell Crane Sys- or offer on lease terms. The over just two days. cation, Strainstall has gone on it appears GPC bid on a tender tems, at its subsidiary company design is made from modular Limited Partnership for 10 RTGs for its terminals in British Colum- CWS is available with dif- to fit CWS to RTGs in ports in for six RTGs placed by Chit- Gulf Piping. components, including gird- ferent options, including load South Africa and Greece. tagong Port Authority (CPA) In 2005 (under then manag- ers and bogies in either 8 or bia. The cranes comply with the US EPA Tier 4F standard, which in 2016. ing director Peter Hessey), GPC 16-wheel configurations. The A Strainstall CWS retrofit on Hong Kong RTGs The CPA has put out several was created as its own brand, and RTG also includes a new “full applies to non-road diesel engines tenders in recent years, not all announced it had financing to functional trolley” that com- up to 560 kW (750 hp), for fuel of which have resulted in firm build 12 RTGs a year without bines the features of an eight- savings and lower emissions. Four orders. Last year, the port suf- first having any orders, which it rope reeving system and a of the RTG cranes will be deliv- fered from heavy congestion, would sell “from stock”. It in- four-rope trolley. ered to GCT Vanterm in Vancou- and shippers from Bangla- tended to build both 8-wheel and In another development, sev- ver, and six to GCT Deltaport in desh’s garment industry were 16-wheel machines, with a spec- en second-hand Kalmar RTGs Delta, all in Q1 2019. Together, actively lobbying the port and ification designed to be accept- are up for sale with Rodson the two terminals already op- the government to invest in able to global terminal operators, Universal. The cranes are listed erate 12 Konecranes RTGs. new equipment as a matter of who, at the time, commonly came as “brand new” RTGs, stacking The new cranes are identi- urgency. Capacity became such looking for RTGs in a hurry. 6+1 high and 5+1 wide. The cal to GCT’s existing Konec- a problem that exporters were GPC never made much im- machines are diesel electric ranes RTGs in British Columbia resorting to airfreight. pression in the market, but in 16-wheel models, with Scania – 16-wheelers with active load GPC may have got this or- 2017 the company announced engines and Bromma spreaders. control for maximum productivi- der using machines from stock. it would have a stock of 8-wheel They are available for immedi- ty, 40LT SWL, 1-over-5 wide and The company is part of Abu and 16-wheel machines ready ate delivery. 7 + 1 high. However, they will be equipped with Auto-Steering,

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34 February 2018 CARGO HANDLING Keeping busy with a mixed order book DL Containersystemen has re- ported a very busy start to 2018, Netherlands-based VDL’s crane spreader Vwith multiple orders coming in. It business is becoming increasingly diverse says that its main driver for 2018 is to en- sure that customers receive their spread- tainers, for crane manufacturer Van Leus- factured a twinlift STS spreader for a new ers at the required time. The company is den Overhead Cranes. The crane will Liebherr STS container crane that is to be upscaling accordingly and has opened a work inside a ship’s hold, and is therefore installed on the quay extension. The Port second production facility, located just 10 required to be certified by Lloyd’s Regis- of Rauma will thus have two VDL twin- km from the original factory, to keep up ter under very strict requirements. lift spreaders, as well as four MHC spread- with demand. Up until now, all deliver- Through Belgian partner Crane Re- ers with VDL’s special Transversal Adjust- ies have been on time, and it says it is on pair in Antwerp, VDL has supplied a re- ment feature for gravity point balance. track with its delivery schedule for cur- placement spreader to Van Moer in Vil- Apart from the rebuilt spreader for rent projects. voorde. This is a standard RMG inland SCT Salerno, VDL has renovated a 23- terminal spreader, and, through Van Moer, year old spreader for Novatrans, a 15-year Piggyback spreader supplied to Secal for a new, below-ground intermodal terminal in Paris Accomplishment there is an order for a twinlift RMG old spreader for Verbrugge Terminals, The development of the electric ISO- spreader on order for an undisclosed cus- and a 13-year old spreader for Euroports cally involve replacing the bearings, seal trics, inspecting and repairing the struc- WTP spreader was a big accomplishment tomer in Antwerp. Rauma. All three spreaders are now ready kits or cylinders, inspecting and repairing ture, replacing twistlocks, and, as required, for VDL. This new type of spreader has For Euroports Rauma, VDL has manu- for operation again. These overhauls typi- the hydraulic system, updating the elec- repainting the spreader. v been extensively tested both in-house and at a container terminal in Chicago, in cooperation with local partner Mi-Jack Cranes. Thanks to the good performance, new customers have been won, and 12 more fully electric ISO-WTP movement spreaders are currently on order. Of these, seven are equipped with elec- tric flippers, and will be supplied to an undisclosed end-user, understood to be an intermodal rail operator, in Georgia (see p32). In this project, VDL is coop- erating with Austrian crane manufacturer Hans Künz, and there are spreaders for six cranes plus one spare spreader. Five other spreaders with electric ISO- WTP movement, rotation and gravity adjustment will be supplied to an undis- closed end-customer in Texas, through Mi-Jack Cranes. Elsewhere in the US, through Greenfield Products (part of Mi- Jack), VDL has supplied both an MHC spreader (Port of Maine) and a special RMG spreader with a side-shift integrat- ed in the headblock (Port of Huntsville). Getting wasted Still in the US, after supplying 12 spread- ers for Hans Künz cranes at four differ- ent DSNY Terminals in New York, two spreaders have now been supplied for Wadco, one of the terminals receiving New York waste, again through Künz. In another recent project, VDL has supplied and commissioned two piggy- back spreaders to a new customer, French crane manufacturer Secal, near Strasbourg, for a subterranean inner city, intermodal hub in Paris. Elsewhere in France, long- standing customer Novatrans, which cur- rently operates around 30 VDL spreaders at terminals through France, has ordered a new spreader for its terminal in Bayonne. In Italy, Salerno Container Terminal (SCT) now has its seventh VDL twinlift spreader, supplied with a Liebherr mo- bile harbour crane, and the commission- ing of the spreader was trouble-free. SCT also awarded VDL a contract to overhaul a damaged, 11-year old spreader. This spreader was completely renovated at the VDL factory, and is back in operation. Further business from SCT could be in -*/,*/(
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February 2018 35 CARGO HANDLING

Sarens order for TEC Earls spreaders to Philadelphia Canada-based Earls Group of Compa- director of Earls, said it reflects the long, ok to reinstall as is”. All of the Earls nies is supplying spreaders for the new “20-ish year” lifecycle that is typical for spreaders (new and refurbished) for ZPMC cranes at the Packer Avenue Earls’ equipment, and that even at 15 PhilaPort will have the same horizontal Terminal at the Port of Philadelphia years old, a complete refurbishment is an headblock pin connection detail, to be (PhilaPort). economically viable option. fully interchangeable between the crane Packer Avenue is a long-time Earls Earls calls the process a “re & re”, as fleet. customer, and has purchased more Earls it involves a complete “repair/replace/ An extensive rebuild is not a simple spreaders for its new ZPMC cranes. For refurbish/refit/renovate/recondition” exercise, but Earls stands by the practice. the first two cranes, Earls manufactured to every component of the spreader, “It should be noted that this extensive two of its M893 STS 20 spreaders and as appropriate. The spreader is com- process is only applied as the spreader two M742 overheight frames in 2017, pletely stripped down to its three main enters its second decade of daily op- which will soon go into service. structural components (one mainframe erational service, and it is a very good Packer Avenue subsequently ordered weldment and two slide frame weld- alternative to simply discarding a 10- two more ZPMC cranes, and contracted ments). These are inspected using NDT year old spreader, as the process results Earls for another three spreaders and one methods, which can include visual and in a favourable total-life-cost reality, and, additional overheight frame. magnetic particle tests, more extensive dare I say, an effectively ‘greener reality’ As it builds these second spreaders, dye penetrant and/or ultrasound test- than with the disposable approach,” said The TEC fixed frame spreader handles the containerised counterweights on Saren’s new Earls will be completing a refurbishment ing, right up to X-ray testing if required. Coatta. SGC crane family project on the last of three M893 spread- Repairs are subject to the same external Earls is based in Vancouver, and its ers that have been in service at Packer review by a third-party NDT specialist more local customers take advantage TEC Container has built and delivered in five-high rows. Additional contain- Avenue since 2003. Since then, the ter- technician as Earls’ newly built products. of the short distance to the factory to a special fixed 40ft spreader for an unu- ers house the electrical rooms and the minal has gone from handling around Once repaired, the units are blasted and return spreaders on a scheduled, rotat- sual application for heavy crane rental power packs for the hoist system. 150,000 TEU, to 550,000 TEU in 2017 then painted with a three-coat system. ing basis every four to five years. They service specialist Sarens. Based in Spain, The containerisable concept enables with five STS cranes. During the reassembly process, com- receive a less extensive general overhaul, TEC container specialises in fixed the crane to be assembled on site in While the service life of a spreader de- ponents are reused only if they pass in- but still achieve a nominal service life frame spreaders, overheight frames, just six weeks. To handle the contain- pends greatly on the number of cycles it spection for “almost-as-good-as-new” “that goes to and beyond 20 years of lashing cages and other equipment. ers, TEC supplied a BA-320E(9-110) performs, the decision to truck 15-year condition. Coatta notes that some items daily productive service with a very low Sarens needed an extremely high- model fixed 40ft spreader with electri- old spreaders nearly 3,000 miles across a have a duty cycle that makes them “can- MMBF [mean moves between failure] capacity spreader to handle special cally powered twistlocks and a maxi- continent for refurbishment is an inter- didates for simply replacing with new, and very high level of reliability”, con- containers that are an integral part of mum capacity of 110t, which TEC esting one. Bruce Coatta, principal and but many individual parts are perfectly cluded Coatta. the company’s “containerisable” SGC believes is one of the highest capacity crane family. All the components of the spreaders ever built. SGC series can fit inside 40ft contain- The twistlocks are electrically ers, and the counterweight is formed powered by batteries located on the CVS and RAM tipping in Bolivia from special reinforced 40ft containers spreader itself, and they can be oper- that can be loaded with sand or oth- ated by either remote control or from At the end of November, a new facil- Gravetal facility in Puerto Quijarro. equipped with the reach stacker-adapt- er material to a maximum weight of a control panel on the spreader. Each ity, specially built by Gravetal for urea, There, the containers are held, before ed version of the Revolver in-line tip- 110t. These special containers have twistlock assembly has an inductive was officially opened in Puerto Quijarro, being discharged via hoppers into a ping attachment from RAM Spreaders. eight corner castings, and the TEC sensor that controls both the position on the Tamengo Canal in Bolivia. State- plant that loads the fertilisers into spe- When the RAM Revolver is cou- spreader therefore has eight sets of of the twistlocks and the landing pins. owned petrochemicals company YPFB cially built barges, which navigate the pled to the spreader, the F500’s onboard twistlocks. The control panel is equipped with a produces the fertiliser in Bulo Bulo in Tamengo Channel and the Rio Para- computer automatically reconfigures the Sarens recently launched its new PLC and an information screen that central Bolivia, from where it is trans- guay to the port of export in Brazil. joystick and overload protection system SGC-140 crane, the largest in the SGC can display data on total cycles, partial ported by truck to the city of Montero, The empty containers are railed back to to control the Revolver and ensure safe family so far, with a maximum lift cycles, hours of use, and the status of all and loaded into specially built tipping Montero to begin a new cycle. handling. capacity of 3,150t, and a main boom sensors and the battery. containers. Gravetal has invested US$7M in this The reach stackers and Revolvers were length of 88.7m. The crane uses up to The SGC-140 is built by Sarens in The loaded, doorless 20ft open tops, integrated logistics solution for YPFB, delivered and commissioned by Tecport 4,000t of counterweight, stored in 40 x Belgium, and its first deployment will with a gross mass of 30t, are then rail- and the centrepiece of the handling oper- Latin America, CVS Ferrari’s distributor 40ft special containers stacked together be in Kazakhstan. shipped 700 km by Bolivian rail freight ation in Puerto Quijarro comprises two for Central and South America, which company Ferroviaria Oriental to the CVS Ferrari F500 RS6 reach stackers will also service the equipment.

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36 February 2018 CARGO HANDLING Seeking optimisation for spreaders

TS container cranes have got taller, and hoist speeds and accelerations Bromma has boosted its R&D efforts, while have increased, while, in some trades

S also warning about replacement parts Cycle Failure at least, average container loads have been increasing. Accordingly, stress loads and its suppliers’ manufacturing capabilities ferent sub-suppliers were tested, together shock loads on spreaders have increased, and quality systems. with a third-party ‘Bromma copy’ avail- while they are also required to have more The company is using test jigs to verify able on the market. “The results are stun- Height of bars indicates when the twistlock pins broke as a result of fatigue. The green and functionality, and are thus more complex, its theoretical calculations, and to evalu- ning,” the white paper stated. blue bars represent Bromma pins, and the red bars are for non-Bromma pins (source: Bromma) which further increases their vulner- ate the genuine spare parts against alter- With regard to the test results shown ability. At the same time, crane operators natives available on the market. The jigs in the accompanying graph, it should original ones by more than four times. by a spreader. It is the safety margin that want lighter spreaders, to reduce power used can test and evaluate up to 30 in- be noted that the load applied in these “The study shows that the number of comes with Bromma genuine spare parts.” consumption. dividual twistlock pins at the same time. twistlock pin fatigue tests was signifi- cycles exceeds – despite a higher load The company added that many third- All in all, the spreader industry faces The test jig was configured for a long- cantly higher than seen in typical real than normal – the recommended replace- party suppliers offer twistlock pins today major challenges, to keep up with devel- term test, whereby a load amplitude of operations, but the test shows the rela- ment cycle by far,” the paper stated. “This at very competitive prices, “but a warning opments and ensure that the equipment 25t was cyclically applied until each indi- tive difference in durability between the is a safety margin that is built into such flag should be raised that the performance supplied is fit for purpose and conforms vidual twistlock pin failed through break- original and a copy. The average Brom- a critical component to withstand the of such components can be as low as the to standards. age. Bromma twistlock pins from two dif- ma twistlock pin outperformed the non- harsh conditions typically experienced price”. v Close cooperation In a new development, Bromma is coop- erating with a leading technical university, KTH Royal Institute of Technology in Stockholm, with the focus on optimised lightweight steel structures and also, Bigger ships and larger peak cargo volumes can mean more through simulation, welding distortions in manufacturing. trucks and barges at the same time and higher demand at rail Last December, Bromma’s structural calculations specialist Mansoor Khurs- hid, PhD, was appointed Affiliated Fac- terminals, significantly increasing landside congestion. ulty in lightweight structures at KTH. His 27-month appointment runs to April 2020, and is on a part-time basis as part of his employment with Bromma. Lars Meurling, Bromma’s VP, market- ing, and associate professor Zuheir Bar- How much does landside congestion cost soum (KTH Welding Institute) both drew attention to the mutual advantages of the arrangement. It supports education your business and what are the risks? at KTH, while Bromma will be involved in several high-level research projects that can help it develop lightweight and struc- turally optimised spreaders using the best scientific engineering. A practical seminar will examine what can be done to minimise the safety, White heat security and environmental risks and maximise the efficiency of cargo flow. In another development, as reported briefly in the January 2017 edition of WorldCargo News (p4), Bromma has re- leased a ‘white paper’ on structural dura- TUESDAY bility. This includes a theoretical overview ICHCA of the parameters influencing structural 17 APRIL 2018 durability of equipment used in a port en- vironment and, in particular, an evaluation INTERNATIONAL of twistlock pins from different sources. THE HAGUE, The report was co-authored by struc- tural design expert Jerker Lindström and PORT-HINTERLAND CONNECTIVITY: Lars Meurling. Until recently Lindström NETHERLANDS was Bromma’s R&D manager in Ipoh. Today, he is senior product specialist at MINIMISING RISK, MAXIMISING EFFICIENCY Bromma Americas. BOOK NOW AT Twistlock pins are the components in direct contact with the container, and they www.ichca.com carry the full load, sometimes unevenly A practical seminar from ICHCA International due to load ex-centricity. They have to be replaced at defined intervals, as the design life is shorter than the lifespan of the whole spreader, and they have to be frequently Confirmed speakers include: inspected to check for impact damage. Regular inspections and maintenance A practical seminar from ICHCA International are very important to make sure impacts Capt. Richard Peter Wilkinson Peregrine and loadings are controlled with less ‘scat- Brough O.B.E. ter’. Bromma explains that scatter refers Group Health & Safety Storrs-Fox to the adjustment part of the twistlock Technical Advisor Manager Risk Management Director assembly. It has to be adjusted in accord- ICHCA Associated ance with the manufacturer’s procedures TT Club International British Ports and recommendations. The specific reference is the distance between the guideblock and the twist- lock pin. If, as sometimes happens, the Prof. Thomas nut is over-tightened, the guideblock A practical seminarSchlipköther from ICHCA InternationalRoy de Haan Joan Amorós limits the ‘float’ in the twistlock. This may result in bending forces acting on the Head of Port Authority Account Manager Landside President twistlock pin instead of a ‘cleaner’ longi- Duisburger APM Terminals FERRMED tudinal force, and bending forces reduce Hafen AG twistlock pin life. Key influences Thijs van den Structural durability is influenced by four Stephan Stiehler factors: Heuvel Stephan Trauth Consultant Geometrical design to minimise stress- Operational Director Vice President Sales es. For example, notches increase stresses Stiehler Combi Terminal Yardeye GmbH and can reduce durability considerably. Consulting Material used (high-strength steels with Twente high ‘purity’). The manufacturing process, including forging, accurate geometrical machining Kostas Wouter de Gier and heat treatments to release stresses. Jolke Helbing Alexopoulos The loadings. Director Global Head of Safety, Bromma says that it is constantly look- Secretary of the Working Party Environment ing at any possibility to improve the de- Royal on Intermodal Transport and & Performance Management Logistics sign of the pins, evaluating the premium HaskoningDHV APM Terminals materials that it already uses, to see if there UNECE are even better alternatives, and checking

February 2018 37 CARGO HANDLING

GlobalSim as the LPU Maritime Training Center expands. Getting to grips with simulation The simulators themselves he growing population will have the same software as of automated and re- Automation is both a challenge and GlobalSim’s premium Full Mis- Tmotely controlled cranes an opportunity for suppliers of port sion simulators, but only include could logically be expected to the essential buttons and switches take a bite out of the specialist crane simulator technology for the main crane operating crane simulator market. Firstly, functions. Each system includes remote operators perform a OEM to design the simulator simulators directly to its custom- two laptop computers and a pro- different role to crane drivers, that can help existing operators ers for some time. The relation- jector for displaying the exercises typically controlling just the fi- transition to the new system ship has now been extended to to the student operators, plus a nal spreader positioning, so less without the terminal experienc- encompass using simulation to basic curriculum of training ex- training is required. The remote ing a drop in productivity. design and prototype new crane ercises. control station can itself, when systems and operator controls. GlobalSim demonstrated a simulator with a VR headset at TOC Americas 2017 With virtual reality (VR) running software, also be used as Working together CM Labs believes there is a lot headsets becoming increasingly a simulator. Free believes there is a lot of of value in extending this type of the existing workforce and new how to react properly to op- common, there is obvious poten- This theory is being tested in scope in the industry for greater cooperation to automated crane recruits. erational hazards that cannot be tial to use this technology with the market at the moment, with collaboration between the simu- applications, and in particular The Port of Tilbury’s Logistics safely trained for on a real op- desktop simulators, because the some surprising results. lation sector and crane suppliers. using simulation to help design Training Academy has just taken erational terminal. This may in- 360-degree field of view creates Montreal-based CM Labs is Most crane OEMs, he added, are better remote control stations. delivery of two new simulators. clude overloads, bad weather, and a more realistic training experi- today one of the leaders in the not really that focused on us- Currently, many of these take a The equipment was purchased equipment failures.” ence. Bart Williams, VP business crane simulator market. Speaking ing simulation to its full extent. “security desk approach”, ex- in partnership with the Tilbury The second simulator was development, GlobalSim, said with WorldCargo News, CM Labs’ Traditionally, crane OEMs have plained Free, whereby the op- on the Thames Trust (TTT), as supplied by Sweden’s Tenstar AB, this is something the company is chief commercial officer, Arnold focused on the training of ser- erator has multiple screens giving part of the academy’s Attention and has software covering front actively pursuing. Free, said that, while the number vice and maintenance personnel, different views of the work, the to Logistics training programme. loading shovel, counter balanced GlobalSim is using VR head- of automated yard cranes might and left operator training to the crane and the terminal, plus con- This has been created to specifi- forklift and HGV truck and trail- sets with some of its straddle car- have reduced demand for crane customer or specialist training trol applications like the crane cally focus on the veteran com- er operations. This simulator is rier simulators, as well as models simulators to some degree, ex- providers, who typically engage management system. Simulation munity, helping ex-servicemen also “virtual reality ready”, with for construction and ship ped- perience with remote controlled with simulator suppliers. can play a role in testing how and women and their families the necessary programmes and estal cranes, but they do not yet STS cranes in the industry so far That relationship has been operators respond to different back into work through the lo- cabling for the future addition of have the resolution for the STS actually highlights the value of changing, noted Free. CM Labs scenarios, and presenting relevant gistics sector. Oculus Rift VR equipment. operator to distinguish details at simulation-based training. has worked closely with Lieb- images and information to the The first is a Vortex unit from a distance, like the spreader indi- Remote controlled STS herr, which has been supplying operator in a more useful way, CM Labs for STS and straddle Portable GlobalSim cator lights, Williams noted. “As cranes, Free notes, have not yet as well as training the operators carrier operations, and it arrived Utah-based GlobalSim, Inc. has another example, an RTG op- proved as productive as manned The new Tenstar training simula- to use the technology more ef- at the port in a container. It fea- contracted with the Lyceum erator needs to read the numbers equipment, and this is a major tor at the Port of Tilbury’s Logistics ficiently. tures 13 screens and 270-degree of the Philippines University on the container. With the 4K or concern to terminal operators. Training Academy Another area where coopera- views, to provide a full simulation (LPU) to provide two of its Port- even new 8K headsets, this limi- CM Labs is now working with tion can add value to the end- of all the major crane and strad- able Crane Training Simulators tation should go away.” one terminal that is soon to take user is in the development of dle operations. “It will provide for the LPU Maritime Training Even so, Williams does not delivery of remote controlled semi-automated and driving new operators with an enhanced Center. The simulators will fea- believe headsets will come to STS cranes on a new simulator control features on port equip- learning environment featuring ture both STS and RTG crane replace the screens and moni- training system, so its drivers do ment, which can be tested and industrial controls and realistic models. tors in GlobalSim’s Full Mission not have to go through a steep refined in a simulation environ- working terminal scenarios,” the GlobalSim’s agent in the Phil- simulators in the near future. VR learning curve on the cranes ment. Crane anti-sway systems, port stated. “The Simulator will ippines is Mastech Inc, which also desktop units and Full Mission themselves. for example, can be tested in a also provide valuable experience sells and supports ship-bridge simulators are, he said, “two dif- The STS remote operator’s simulator to see if operators find and important operational infor- and other maritime industry sim- ferent things”. In a Full Mission role is, in fact, much more in- them useful. mation that prepares them for, ulators from Kongsberg, which simulator, the trainee sits in a real volved than just supervising the Other developments, such as and complements, learning on was the parent company of crane chair and operates physi- final positioning of the spreader, augmented reality displays and a real terminal – for both crane GlobalSim prior to its manage- cal controls, while looking at a and there are more exceptions to fuel-efficient driving modes, can and straddle operations. In addi- ment buyout in 2016. This initial simulated operation, as opposed manage. CM Labs will work with also add value, but only if appro- tion to this, the Vortex simulator step with two desk top simulators to being in a completely virtual the port customer and the crane priate retraining is available for can be used to train operators could lead to more business for experience. v

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38 February 2018 ECO FOCUS

server. BiNY recently installed its IIoL system at Yangshan Phase IV, where it Up on the high mast with LED lighting controls over 2,000 fixtures, providing a iscussing LED lighting for high standard is very specific, and describes conventional fixtures. China’s national lighting level of over 25 lux for the yard, mast applications at ports and the required lux level for each area of standard was introduced in 2004. “Gen- and 20-30 lux on the surrounding roads. Dterminals is a tricky subject. the port, as well as other project types,” erally speaking, most systems will meet At Qingdao, BiNY is installing 2,299 There are literally hundreds of compa- Herrero noted. For instance, a port con- the standards,” said Herrero. “The main high-wattage LED fixtures, together nies that sell LED fixtures, touting their tainer yard requires an average light level problem is that maybe they will need with its IIoL control system. The LED suitability for high mast applications, but of 15 lux. more luminaries and higher consump- fixtures will be installed on 164 high still, many ports and some lighting sup- In addition, BiNY noted that there tion to do it.” BiNY’s floodlights have mast poles and 155 street lighting poles pliers that offer both LED and conven- are “two Chinese national standards” re- a luminous efficiency of over 140 (that across three separate terminals: Qianwan, tional floodlights are hesitant. lating to high mast lighting with intel- is they produce 140 lumens/W), which Dagang and Shihua. The IIoL system However, the tide does seem to be ligent lighting control at ports, both of Herrero said enables the company to will connect the lights using 4G com- turning as more of the big names in in- which were created by BiNY. meet the standard using fewer lumi- munications. In this case, light level re- dustrial outdoor lighting embrace LEDs. As has been noted previously by naires, and consuming less energy than quirements average 20 lux in the yard One of the most recent ports to embrace WorldCargo News, theoretical energy other products. and 15 lux on the roadways. LEDs is Ports of Auckland (POAL) in savings from a single replacement LED BiNY’s focus, however, is on generat- BiNY has recently secured another New Zealand. It has just announced fixture can reduce quickly if the num- ing greater energy savings, with an inte- large project, this time at the Caofeidian plans to install LED floodlighting on all ber of LED fixtures needed to achieve grated solution that activates the lights Bulk Cargo Terminal in Hebei, in the Ports of Auckland is the first port in New its high mast poles. a regulated light level exceeds a one- only when required, using its IIoL sys- northeast of China. Again it will be sup- Zealand to install LED fixtures for high “We’ve wanted to use LED flood- to-one replacement ratio, compared to tem to control the lights from a cloud plying its IIoL solution. v mast lighting lighting for some time, but the power and reliability hasn’t been up to what we need in the harsh port environment, until now,” said Tony Gibson, CEO of POAL. Working with NZ’s Energy Ef- ficiency and Conservation Authority (EECA), POAL tested a new LED from Philips on 46 lighting towers. The fix- tures are called ClearFlood, and come in a range of 252-549W fixtures producing 35,000-65,000 lumens. According to the EECA, the port was able to meet its lighting requirements with a 20% reduction in fixtures, and is now planning to install the LEDs on 23 further high mast poles. Stage 1 of the project will see LED floodlights installed in the port’s general cargo area, while Stage 2, which covers the container terminal, will be timed to coincide with the introduction of au- tomated straddle carriers over the next two years. Auckland is expecting big energy savings. Stage 1 will save 1.17 GWh of electricity, while Stage 2 savings have not yet been calculated, as they will vary depending on the lighting requirements for the automated terminal. Auckland is a straddle carrier facility, and the energy saving from Stage One is equivalent to nearly 7% of the port’s total power usage. In China, lighting manufacturer BiNY is having a lot of success with LED fixtures and its Industrial Internet of Lights (IIoL) system. BiNY’s Alejandro Herrero explained that China has a national regulation for port light levels under the JT 556- 2004 and JT/T 557-2004 standard. “The Lighting on cranes LED lighting on container cranes is now widely accepted, particularly in the US market. Recent specifications Serving seafarers from across the world for new low-profile STS cranes for the Port of Everglades, for example, For nearly 100 years your generous support has explicitly stated that all light fixtures are to be LEDs. For the avoidance of served millions of seafarers from across the world. doubt, the specifications added that Seafarers spend many months away from home and “incandescent, fluorescent, high-in- tensity discharge (HID), high-pres- family, often in lonely and harsh conditions. Your support sure sodium (HPS), or metal-halide will enable AoS to continue meeting their practical and light fixtures shall not be permitted pastoral needs. on the crane unless the contrac- tor can demonstrate a suitable LED fixture is not available, and the de- viation is approved in writing by the owner on a case-by-case basis”. With regard to the lighting sup- plier, there were no options, and it was stated that “LED floodlights shall be Phoenix ModCom fixtures for the trolley, [and] Phoenix EcoMod for all other locations”. Please give generously, a donation from you will make all the difference Another recent specification, which came from Poland for new RTGs for DCT Gdansk, provided www.apostleshipofthesea.org.ukwww.apostleshipofthesea.org.uk an interesting contrast. The RTGs are diesel-powered, and DCT speci- fied “HPS 400W or LED equivalent” I wish to support AoS with a donation of: £ floodlights for the main crane struc- Please complete this form and return it to: Apostleship of the Sea, 39 Eccleston Square, London, SW1V 1BX (Please make cheques payable to AoS) ture. These are to provide 100 lux or equivalent light at ground level for Title: First Name: Surname: hoist trolley operations under the Address: girder. On the trolley itself, DCT speci- Postcode: fied 2 x 400W metal halide or equiv- Telephone: Email: alent LED fixtures. For gantry long (Please only give us your email if you are happy to be contacted in this way) travel, the spec calls for 4 x 500W halogen or equivalent LED fixtures. Registered charity in England and Wales number 1069833. Registered charity in Scotland number SC043085. WCN2015

February 2018 39 ECO FOCUS

These operators are taking rational de- cisions; tailpipe fumes and black smoke Is the future really all-electric? are not good for their brands. It is up to the authorities to look at the big- n a recent Port 2060 blog, Peter ger picture. Export orders for the Semi Söderberg, Kalmar’s VP, develop- Is too much faith may be being placed in have come from Norway, in the shape Iment, argued that, once the new battery motive power for off-road mobile of Asko and Posten Norge. Over 99% electric systems and components cur- of Norwegian electricity is generated rently being developed for the automo- port cargo handling equipment? by hydro power, so no prizes for guess- bile market reach a sufficient level of ing where the Semi presents a genuine technical maturity and achieve econo- this search an extra push, as compliance and fuel cells may be somewhat op- green alternative. mies of scale, they will inevitably open requires the engines to have a DPF, timistic. The environmental costs of Similar arguments apply to the elec- up new opportunities for cost-effective which is almost universally disliked. lithium mining, for example, need to be tric power needed for hydrogen gen- all-electric or electrically powered ver- Kalmar has been at the forefront of new considered, and how the electricity to eration, along with the energy costs sions of heavy mobile equipment, such solutions for mobile plant, with, for recharge the batteries is generated. In Are diesel (or alternative fuel) electric hybrids associated with pipelines, pumping sta- as reach stackers and large FLTs, “where example, “opportunity” charging for the US, for example, just 14% of elec- more feasible into the medium term? tions, and so on. The technology for the cost of battery technology is still the battery-electric straddle carriers, hybrid tricity comes from renewables, and 65% on-vehicle ‘reforming’ reactors exists, limiting factor”. fuel cell heavy FLTs, and so on. from fossil fuels (mainly coal), and those ported that orders for the Tesla Semi but previous attempts to make it tech- There is no doubt that the ports figures are forecast to be just 17% and truck have so far been placed by nically viable on mobile plant, let alone industry is looking for alternatives to Hold on a bit still 64%, respectively, in 2040. Walmart, Pepsi, Anheuser-Busch, Sysco, marketable, failed. diesel, and Euromot Stage V will give However, the faith placed in batteries In January, Business Insider UK re- UPS, DHL and JB Hunt, among others. Plucking deadlines Setting arbitrary deadlines to phase out diesel plant may be counterproductive. This is not just a problem for Southern Californian ports. In the UK, for ex- ample, the government wants rail op- erators to phase out diesel traction by 2040. According to the UK Rail Industry Association (RIA), 29% of all locos in the UK are diesel (passengers and freight). Being a vendors group, the RIA naturally “welcomes the chal- lenge” to develop battery, fuel cell and hybrid alternatives. However, the Rail Freight Group, representing the opera- tors, is much more sceptical about these “unproven” technologies. In Europe, a number of truck and rail freight operators have switched to Shell GTL, a synthetic replacement for diesel, produced from natural gas. Shell GTL is claimed to reduce NOx by up to 18% and PM by up to 25% in a Euro V truck, when compared with regular EN 590 diesel. Shell GTL is a drop-in replacement for diesel. It is packaged, transported and stored using the same procedures, equipment and materials as regular die- sel, and no engine or exhaust modifi- cations are required. In the UK, Shell GTL is now available through Certas Energy. Subject to availability in the indus- trial mobile plant sector, these emission savings could be further reduced by using Shell GTL in hybrid machinery using regeneration with supercaps or batteries. www.italgru.com Synthetic biology A more fundamental point is that em- phasis on batteries and fuel cells ignores all the work that is going on in the growing field of industrial biotechnol- ogy, using synthetic biology to convert biomass to fuels. This work has moved a long way on from first and second gen- eration drop-in blends such as ethanol and biodiesel (FAME - fatty acid me- thyl ester). In 2011, a team from the University of Washington won the international iGEM synthetic biology competition for undergraduates, by engineering a strain of the E. coli bacterium to create diesel fuels. The strain converts fatty acid synthesis intermediates into alkanes, the main component of diesel fuels. Of course, this is a long way from full technical feasibility. But to indicate the potential, synthetic biology is much closer to a real breakthrough with propane, a major component of LPG, which is the world’s third most impor- tant motor fuel (20 Mtpa), and provides heat and energy for an estimated 14M households. Researchers at the University of Manchester’s Institute of Biology (MIB), together with colleagues in Im- perial College London and Turku Uni- versity, have created a synthetic pathway for biosynthesis of propane, and MIB estimates that the bio-propane could be ITALGRU S.r.l just 2-3 years from being a commercial reality. Our production includes a wide range of mobile Strada Statale Briantea Apart from being of potentially huge 4 – 24030 AMBIVERE (BG) - ITALY significance in its own right, bio-pro- harbour cranes with a lifting capacity from Tel. +39 035 4932411 - Fax. +39 035 4932409 pane could prefigure further break- 25 t to 160 t. email: [email protected] throughs in petrol and diesel. Apart from lower emissions in fuel use, emissions associated with the production and transport of petrochemically derived fuels would also be drastically cut. v

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February 2018 41 HEAVY LIFT

Autoliners have used their invest- utilise our potential arising from ments in acquiring much larger BBC’s market position as leader Heavy lift, heavy burden PCTC tonnage to also move in the volume market for pro- heavy lift and project cargo. jects, and from Jumbo’s market hile operators of fully More recently, the airfreight position as leader in super heavy cellular container Shipping lines specialising in the sector has become increasingly lift projects.” Wships and pure car heavy lift/project cargo sector are involved in this business, partly As its name suggests, Jumbo and truck carriers (PCTC) have because of container equipment controls some of the largest heavy gained market share in heavy lift/ being squeezed on all sides shortages on some routes (see lift vessels in the world, with sev- project cargo in recent years, the box story, p43). eral of its ships having the capac- sector is today facing additional tipurpose carriers’ core business. of flatrack, open top and platform In all cases, it has been the ity to load modules weighing competition from the airfreight Operators such as Hapag-Lloyd equipment to move oversized more regular (read volume) and 3,000t. By contrast, BBC man- industry. have set up dedicated sales, mar- modules. simpler cargo that has been at- ages the industry’s leading project Over the past three/four years, keting and customer care depart- Meanwhile, car carrying/ro- tracted to these new players, chartering network, with its fleet liner companies have successfully ments in their organisations, and ro operators like Wallenius Wil- leaving the most complicated, numbering 180 vessels, with lift made inroads into parts of mul- supported this with acquisitions helmsen Logistics and Höegh time-consuming and expensive capacities up to about 900t. shipments to the experts. It has meant huge challenges for own- In the pool ers/operators of multipurpose In other developments, SAL and and heavy lift vessels, and it has RollDock Shipping have agreed led to several companies quitting. to set up a shipping pool for their roll-on/roll-off and float-in/ Good news Moving in on the project market - float-out heavy lift vessels. It is But is the tide about to turn? ZIM unloading 27t parts, shipped due to become operational on 1 There is certainly more opti- on a container service, at the Port April 2018, and follows Rotter- mism surrounding prospects than of New York/New Jersey last year, dam-based BigLift’s decision to for some time, and for many rea- bound for a geothermal power plant end its own cooperative arrange- in the US sons. These include: ment with RollDock Shipping. A recovery in the price of oil It will redeploy its two 125m x that has resulted in new oil and Purchase of shares from Tokyo- 42m flush-deck ro-ro vessels in- gas exploration projects being headquartered K Line and full volved in the operation (BIGLIFT started, and several older ones ownership of SAL Heavy Lift BARENTSZ and BIGLIFT BAFFIN) being resurrected. (SAL) by Bremen-based Harren back to the BigLift fleet. Rising levels of decommission- & Partner Group, which also owns The new SAL/RollDock ven- ing work in older oilfields. Combi Lift, in 2017. SAL con- ture comprises a fleet of six geared Growing interest in the de- trols 21 ships with lifting capaci- vessels, five of which are owned velopment of large-scale petro- ties in the 550t to 2,000t range. by RollDock, and one by SAL. chemical complexes, particularly Creation of the Global Project They will be managed by Roll- in Iran and Iraq. Alliance (GPA) by the family- Dock, with SAL providing the The increasing demand in controlled groups Jumbo Ship- specialised heavy breakbulk cargo many emerging economies for ping and BBC Chartering. support and engineering services. the construction of additional Setting up of a dock pool be- “Through this consolidation, power-generation plants. tween RollDock and SAL. we will see better utilisation Changes in the commodity cy- Commenting on the GPA, of the vessels,” stressed Martin cle that is increasing the demand Svend Andersen, CEO of BBC, Harren, managing director of for new and replacement mining said: “We realise that the world SAL. “And because we share a equipment. of project shipping is changing network of offices and agents, it Expanding renewable energy rapidly, and that our organisa- means we can offer global repre- sector in many regions of the tions need to focus on building sentation of the two companies’ world, which necessitates the strategic assets that will enable us heavy shipping disciplines.” movement of towers, turbines to create value in the future.” The move also means that and associated equipment. It was a point also stressed by SAL, which is mainly engaged in Growth in the movement of Twan Voogt, COO of Jumbo. “As lift-on/lift-off operations, keeps a large cargo handling equipment, alliance partners, we seek to fully strong presence in the niche roll- including container cranes. The creation of a leaner and more rationalised service sector that is enabling supply to be bet- Box crane supply chain ter balanced to demand. Joining forces While the likely improvement in demand cannot be under-es- timated, recent takeovers, merg- ers, and the setting up of pooling arrangements will be extremely important in managing supply in the future. In the past two years, several key transactions have been concluded, including:

Name...... The first of 86 ASCs arriving in Virginia on board the HAPPY BUCCANEER the ...... The container crane market This month, the Port of Company ...... is set to deliver a significant Virginia took delivery of the subscription package boost to the heavy lift and first six of 86 new Konecranes ...... project cargo sector over the ASCs that were shipped from Every issue, our experienced editorial team brings you news, features, comment and analysis next two years. As the annual Gdynia in Poland to Ports- Title...... WorldCargo News STS and yard mouth on board BigLift’s from around the globe, updating you on the latest in heavy-duty handling & transport of bulk crane surveys have shown, HAPPY BUCCANEER. The port is solids, such as coal, ore, grain, minerals, cement, fertiliser etc...... crane OEMs have strong or- expecting regular scheduled der books, as terminal opera- deliveries of the remaining 80 To ensure you get your personal copy plus ezine and online access just send us this form and Address ...... tors purchase new equipment cranes over the next two years. we will start your subscription with the very next issue. Our all-in rate for anywhere in the for handling larger vessels, As with other automated world is just £135 €175 or US$265. Or why not take advantage of our discounted extended ...... and invest in large-scale yard projects, both the port and subscriptions? Please see www.bulkmaterialsinternational.com for details. automation projects. Further- Konecranes require the ASCs ...... more, a loss of market share to be delivered in regular  for ZPMC means that more scheduled batches according to YES, please enter my subscription to Bulk Materials International. Number of years...... of this business is open to the the overall testing and commis- I enclose my cheque or bank draft for £...... US$...... €...... Must be drawn on a UK bank. heavy lift market, rather than sioning schedule...... being captured by ZPMC’s in- These particular cranes will Please invoice my company - subscription and online will commence on receipt of payment. house delivery fleet. be delivered fully erect, but Company business ...... Please debit my American Express Visa Mastercard (please indicate card and currency used) One of the biggest (if not ASCs can also be delivered in the biggest) markets at the mo- pieces, and assembled on site...... Expiry date ment is the shipment of new The relatively new Kalmar port equipment to the US East ASCs for the TraPac terminal in Email (required) ...... Coast, where Virginia, Savannah Los Angeles, for example, were Signature...... Date...... and Charleston all have major moved from China in pieces by ...... WCN Publishing: TheNorthbank Coach House, 245 Bridge Bridge Street, Street, Leatherhead, Leatherhead, SurreySurrey KT22KT22 8BL,8BX, UK.UK. procurement programmes in AAL, and were unloaded using place. New equipment has also the terminal’s own container email: [email protected] fax: +44 1372 370111 ...... Please make payments to: WCN Publishing WCN PUBLISHING VAT No: 644 2190 53 wwwbulkmaterialsinternational.com been ordered for Halifax, Hou- cranes with a heavy lift hook ston and Philadelphia. under the spreader.

42 February 2018 HEAVY LIFT ing market. Justin Archard, commercial director of SAL, explained: “Whenever Air Charter Service (ACS) has also Antonov Airlines itself is very expe- clients look for heavy transportation, Upwards lift for airfreight been active in this sector. It recently rienced in the heavier end of the air whether it be with lifting, rolling or Last year, airlines handled significantly ing on the path of digitalisation. These chartered an AN-225 aircraft belonging cargo business, with one of its most floating services, or a combination of more freight than in 2016. In particu- steps boosted our volumes of special to Ukrainian-based Antonov Airlines to recent shipments comprising the them, our new set up with RollDock lar, the mode gained market share from commodities, with temperature pharma transport a 182t transformer from São transport of a 23t Al Yah 3 Satellite offers them a one-stop-shop.” maritime services in the specialised heading the list (+150%), followed by Paulo in Brazil to Santiago in Chile. for Orbital ATK’s GEOStar-3 satellite cargo handling sector, as several airlines off-size and heavy (+33%), and e-com- According to Richard Thompson, platform. The satellite was stowed in a Floating potential and integrators came up with new ori- merce (+26%). We moved 700,000t of president of ACS Americas, the consign- container that was 11.4m-long, 4.6m- Hamburg-based Hansa Heavy Lift gins/destinations, more focused sales cargo, up 13% on the previous year. ment was the heaviest piece of equip- wide and 4.1m-high, and a low-profile (HHL) is also looking at increasing its strategies, and innovative solutions. “In 2018, ABC will beef up its service ment moved by air in the Americas. ramp system, specifically designed and presence in the floating unit division of Sergey Lazarev, general director quality further, with our main focus being He commented: “A lot of careful manufactured by Antonov, was used to the heavy lift/project cargo sector. “We of AirBridgeCargo Airlines (ABC), to enhance our special cargo solutions.” planning went into this operation, as ensure loading and unloading proce- see much potential in the floating unit which is part of the giant Russia- Specifically, Lazarev mentioned opti- its weight of 182t was more than most dures were safe and efficient. market,” said Emek Ersin Takmaz, head based Volga-Dnepr Group, explained: mising processes and customising solu- cranes’ lifting capacity. Its height of more The consignment was moved from of projects in the carrier’s engineering “In 2017, we concentrated our efforts tions for various industries, including the than 4m also presented challenges. This Washington Dulles International Air- department. “Our very adaptable heavy on the development of special cargo oil and gas sectors, which are again ex- shipment took almost four months of port to Cayenne in French Guiana on lift ships and engineering know-how transportation, fine-tuning our inter- panding, and where lots of out-of-gauge discussions between us [the ACS offices board one of Antonov’s AN-124-100 ensures we are able to meet our custom- nal procedures and processes, aligning heavy equipment needs to be moved, in in Florida and Brazil] the client, the air- aircraft. These planes can carry over- ers’ bespoke requirements globally, no our organisational structure, and go- many cases quickly. line and the airports, to plan.” sized cargo with payloads of up to 150t. matter the challenges involved.” He pointed to the carrier’s recent contract to move 45 yachts, two over- sized barges and three tugs on board HHL NEW YORK between the US (Port Everglades)/Caribbean (St Antigua and St Thomas) and the UK (Southampton) and Germany (Bremerhaven). The pro- ject involved the help of logistics group Peters & May, and was recorded as a re- cord for the number of yachts shipped on a single vessel at the same time. Takmaz also pointed to the challenges associated in moving three tugs from Singapore to Russia. “This project was a race against time, and it required us to find an efficient and cost-effective solu- tion to lift the tugs, and transport them safely on our vessel,” he said. “Tailor- Let’s made steel structures had to be designed and suitable lifting gear developed for each tug. This was undertaken by our in-house engineers.” Custom Meet But it is not only about developing cus- tomised solutions. For long-term surviv- al, owners of multipurpose tonnage have to invest in the right vessels, markets, ser- vices, staff and technologies. Roel Verwey, managing director of in BigLift’s engineering department, ex- plained: “There has certainly been more demand for inshore and offshore instal- lation projects over the last decade, such as the installation of shiploaders on piers, bridge sections in more open waters and Bremen buoys, plus complex dismantling and re- moval work.” Verwey added BigLift would continue to develop and improve its in-house structural engineering and hydrodynam- ics disciplines, and invest in new software and intelligence for the division. WHERE NEW But he also stressed the importance of being in the field. “Our engineers all at- PROJECT BUSINESS tend the operations themselves and gain valuable practical knowledge to enhance HAPPENS. their theories,” he said. “Engineering ex- cellence is at the heart of our company.” SAL’s management sees value-added and integrated services as being impor- tant to its future. The company has creat- Join 10,000 shippers, ed a new division called Marine Projects, in which it has combined individual forwarders, specialized teams from its heavy lift and marine in- transporters, port operators stallation activities. The management’s objective is to expand the carrier’s pres- and industrial manufacturers ence in large-scale offshore commission- ing and decommissioning projects. from more than 100 countries. The division encompasses the entire fleet of SAL, and it works with custom- ers across all industries. “Our Marine Projects division is a natural evolution of services for which SAL is already well known,” explained Sune Thorleifsson, head of the department. “For more than 35 years, we have pushed the bench- marks as a heavy lift carrier, and in recent years we have, increasingly, supported marine installation and decommission- ing projects with our unique heavy lift vessels. With Marine Projects, we work Special programs available for maritime businesses, with complex transport and/or installa- tion services, including decommission- technology companies, project developers, oil & gas ing projects on a uniform platform.” companies, and more. Email Leslie Meredith at SAL has a fleet of ships that is ideal [email protected] for information. for these types of project. This includes a highly flexible vessel that has 7,500 m2 of space for cargo storage, a combined lifting capacity of up to 2,000t, and a 29-31 May 2018 REGISTER NOW: breakbulk.com/bbeu2018 sailing speed of up to 20 knots. The project cargo market is shifting and Messe Bremen • Bremen, Germany becoming more competitive, and those multipurpose carriers that intend remain- ing a part of it are having to become bigger, more efficient and, above all, innovative. v

February 2018 43 NEWS For all your cargo handling needs ZPMC offers you the widest range of container and bulk handling equipment solutions

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