GLOBAL ISSUES This is a review of a larger Dyanmar White Paper

Container volumes and terminal capacity in Northern Europe II

Michele Camm, Managing Director; and Dirk Visser, Senior Shipping Consultant, Dynamar, Alkmaar, the Netherlands

Main container trades, ports and interpretable subject, but the general the monsters, without the certainty that terminals consensus is that congestion kicks in at carriers will be prepared to pay for the North Europe-Far East and Transatlantic 75% utilisation. Therefore, this study extra effort. are the two major trades connecting provides occupancy analyses (overall, by with North Europe. The services of the sub-region, per country and per port) at 6,000 moves per day, please eighteen carriers operating in these two both 100% and at 75% capacity. The consensus among big ship carriers trades are calling at a total of seventeen That all said, throughout the 24/7 nowadays is that terminals should handle ports in the Gothenburg-Sines range working week a terminal operator has 6,000 moves a day on a ULCS; the (including the UK). In 2014, these always been facing and handling peaks universal consent among stevedores is that seventeen ports had a total throughput and troughs in demand as a standard fact a production of 3,500 moves is a more of 53 million TEU, an increase of nearly of life. However, things have changed realistic maximum. 5% over 2013. This was a much higher and ships have grown excessively within a The 2000-built 8,200 TEU ship has a year-on-year growth than was seen in relative short period of time. length of 347 metres, counts 21x 40’ bays 2013 and 2012 with their 2.2% and 0.2%, (transverse rows of 40’ containers) and can respectively. As matters are, the overall Growing vessel sizes be discharged/loaded with seven ship-to- prospects for 2015 are looking a bit less At the start of this century the world’s shore container gantries simultaneously, rosy. largest box ship was Line’s maximum: such cranes just cannot work These seventeen ports comprise 55 “Cornelius Maersk”, measuring 8,200 adjacent bays; the gantry legs are too wide different container terminals equipped TEU. In April this year, a vessel with to allow that. with ship-to-shore gantry cranes, which nearly 2.5 times that capacity was The 2015-launched 19,900 TEU are all subject of Dynamar’s recent delivered: UASC’s 19,900 TEU “Barzan”. “Barzan” is 400 metres long and counts report ‘Container Volumes and Terminal The average capacity of ships deployed in 24 bays. Thanks to the “two islands” deck Capacity in North Europe II’. As of 31 the North Europe-Far East trade then was configuration, it can be handled with 9 December 2014, they had a combined 12,700 TEU and has meanwhile increased gantries at the max, just two more than its box handling capacity of 86 million TEU. by another 900 to 13,600 TEU. nearly 2.5 times smaller, fifteen years older The resulting occupancy, i.e. throughput The aforementioned serves to predecessor. The difference in capacity divided by capacity, of 62% may seem to understand the challenges port authorities between the two ships is not so much in run counter to congestion having plagued and terminal operators are facing. Very few length; it is in breadth: 6 deck rows more, so many ports. container terminals have been purpose- and height: extra tiers under and on deck. built for ULCS (Ultra Large Container With respect to the ship-to-shore Congestion Ships of over 10,000 TEU), let alone for gantries, the differences are much more The main reason for this congestion the 18,000+ TEU monsters. The first one succinct: on the “Barzan”, the crane’s phenomenon was and is that demand of the latter was only delivered in mid- spreaders have to travel longer, i.e. wider doesn’t come in nice regular identical 2013 and including confirmed orders their and deeper. Tandem-spreaders will be used volumes to be discharged and loaded every total number will swell to 100 by 2019. 35 whenever possible and the cranes need to day. On the contrary, even the largest ships of these will even be larger than 20,000 be much taller, minimum 50 metres under remain prone to the elements, which are TEU. the spreader. Thus, they are heavier: some sometimes causing havoc to schedule All these ships will invariably be 2,000 tons and therefore require stronger integrity. Early in the year, nearly a third deployed in the North Europe-Far East quays. of more than 9,900 vessel arrivals were off trade and the amount of ships so big has schedule! Delayed ships may bunch up in definitely come as an unpleasant surprise Purpose-built, expanded, retrofit their next North European port, which to many of the terminal operators in and coping will work through further in their schedule. Dynamar’s report, who generally only In 2014, just three of the 31 container As such, a certain amount of terminal hear what hangs over them when the terminals accommodating North Europe- over-capacity may be considered a newbuilding order is placed… Yet they Far East services were purpose-built for requirement to prevent congestion. realise to have no choice but to quickly the handling of Ultra Large Container Terminal capacity is a multiple invest substantial sums, again, to handle Ships, including the current largest afloat:

1 Port Technology International www.porttechnology.org GLOBAL ISSUES

• EUROGATE Container Terminal custom-built ULCS berth. In Hamburg scale carriers aim to achieve by operating Wilhelmshaven/Germany - water part of the quays of EUROGATE’s increasingly larger ships means that depth alongside 18 metres Container Terminal Hamburg and HHLA mainline terminals have no choice but to • Hutchison’s Berths 8/9 Terminal in Container Terminal Burchardkai have invest substantial sums in their facilities. Felixstowe/UK - 16/18 metres been retrofit as such and so has APM Invest in deeper water, in longer and • ECT’s Euromax at Maasvlakte 1 in Terminal Gothenburg (Sweden). ECT stronger quays, in taller ship-to-shore Rotterdam - 19.8 metres has re-equipped to ULCS requirements gantries with a longer outreach, in yard • DP World’s London Gateway (17 part of its Delta Terminal at Rotterdam’s space and equipment, in... and so on. metres) has definitely been developed Maasvlakte 1. And at Bremerhaven’s All these investments should, but do for the ULCS purpose from scratch, Stromkaje, accommodating three not necessarily translate into higher but is not -yet- structurally handling terminals, 29 StS gantries have been stevedoring prices; shipping lines rather the relevant ships. upgraded to a 23-boxes wide outreach. pass their economy of scale savings on to Southampton Container Terminal is And the others? They are coping, shippers in the form of lower freight rates an example of a facility expanded with a one way or the other! The economies of instead...

Port Technology International 2 GLOBAL ISSUES

New 2015 facilities Gate pressures Gdansk (Poland), Aarhus (Denmark) This year, three more new, tailor-made 3,270 or 6,000 moves per 24 hours: the and Gothenburg (Sweden) are the three ULCS facilities are joining the inventory: vast majority of all these containers (5,500 ports in this section handling direct North • April: APM Terminal Rotterdam II or 10,000 TEU) have to be delivered to the Europe-Far East and (the Swedish port) at Rotterdam’s reclaimed Maasvlakte consignee or by the shipper. Apart from Transatlantic services. Gdansk is the 2. Fully automated including the expanding yard space and equipment, It relatively new kid on the block here. DCT absolute novelty of (eight) remotely will increasingly be required to start the Gdansk is on the Maersk Line schedule controlled ship-to-shore gantry delivery of inbound containers while the since early 2010, still handling this carrier’s cranes vessel is still discharging. A fast quay crane largest, 18,000 TEU, ships with 18-wide • September: DP World’s Rotterdam production puts tremendous pressure on ship-to-shore cranes. That will change World Gateway (RWG) in the the terminal’s storage capacity. when a new terminal opens by late 2016, same area and fully automated and The following examples show how which will be equipped with mega cranes remotely controlled as well: all 14 immensely the pressure on terminal gates of a 25-boxes across deck outreach. quay cranes, i.e. including the three must have increased over a period of ten barge gantries years: many more containers on much UK/Eire - 11 terminals, 575-ha, • December: Liverpool2 Container fewer ships sailing on a substantially lower 11.1-kilometre quay line, 91 quay cranes Terminal, semi-automated yard with frequency: The Irish Republic is a pure feeder initially five conventionally operated • In 2005, 272 ships of 5,700 TEU destination. During the last few years, the ship-to-shore gantries average operating 32 dedicated dialogue in the UK has been dominated These three terminals alone will increase weekly North Europe-Far East by the development of brownfield London North Europe’s handling capacity by services carried 6,732,000 full TEU Gateway and more in particular the minimum 6 million TEU or 7%. It will both ways reaction it has provoked by established probably be more once the almost excessive • In 2014, 235 ships of average 12,700 terminals, afraid that the new facility degree of automation of the two new TEU operating 21 dedicated weekly would go after their customers. With Rotterdam greenfield terminals has been North Europe-Far East services carried the dust settled, for now, it appears that fine tuned. 14,091,000 full TEU both ways Tilbury has lost part of its North-South To prevent capacity constraints, ports business while Thamesport got rid of Automation, the holy grail and terminal operators have to try and all of its deepsea services. However, Full StS container automation stay ahead of demand. And so are they Felixstowe and Southampton have fast- is seen as the only means to achieve the planning to: if all intended expansions and tracked the building of brand new ULCS carriers’ badly wished quay-side production totally new terminals are commissioned as berths through which they have managed, of 6,000 moves per day of 24 hours. planned, the 2014 overall capacity of 86 as matters are, to keep their big ship Approximately 90% of the crane cycle is million TEU may increase by a Compound patronage. automated with only the final lowering Average Growth Rate (CAGR) of 5.2% to A somewhat different animal with of the container guided by the operator. 143 million TEU by 2024. high aspirations is , determined The latter is not in a cabin on the crane to gain back its historical 18% share of but in a remote control centre. Unlike Regional highlights all UK seaborne imports. Hence it is the traditional human crane-driver, a The extensive core Ports/Terminals section building a new deepsea terminal capable of robot crane doesn’t suffer from back/neck of Dynamar’s “Container Volumes & accommodating up to 13,500 TEU ships stress, fatigue or fading concentration and Terminal Capacity in North Europe II” is or bigger, anyway, considerably larger than can easily withstand the required faster split into four areas: Baltic/Scandinavia, the ones operating in the Transatlantic acceleration and braking. UK/Eire, Europe North West and Europe trade currently calling the port. With remotely-controlled crane Atlantic. Unavoidably of a somewhat Liverpool2 will be commissioned by the automation, APM Terminals expects to unequal size, highlights of each of these end of this year. make up to 50% more moves per hour, sections include: while DP World/RWG anticipates 40 Baltic/Scandinavia - 18 terminals, 777- Europe North West - 43 terminals, 2,716- moves an hour. In both cases, it comes ha, 13.7-kilometre quay line, 85 quay cranes ha, 51.7-kilometre quay line, 386 quay down to some 6,000 moves per day Normally, Russia is the most cranes working the ULCS with 6 automated important feeder destination/origin of This is by far the largest area with a quay cranes. Obviously, the stowage boxes transhipped in the various North total of eight German, Dutch, Belgian plan must allow for a crane intensity of Continental (and one Baltic) hubs. Hence, and French main ports accommodating minimum 6 (or up to 9, if available) quay there is an extensive analysis of container 24 terminals handling North Europe-Far cranes. terminal capacity in three Russian Baltic East or Transatlantic services. In addition, Even without crane automation, container ports: St Petersburg, Ust- 17 other existing container terminals plus impressive throughputs are sometimes Luga and Kaliningrad, which comprise 12 projects are being profiled here. The achieved. ECT Delta Terminal claims 10 box facilities. Their combined existing terminals are equipped with 82 the volume palmares: on Evergreen’s handling capacity is 4.5 million TEU, of ship-to-shore cranes capable of handling 13,800 TEU “Thalassa Hellas” it which 80% comes for the account of St the 18,000+ TEU monsters requiring achieved a production of 11,050 moves, Petersburg. The current seven facilities an outreach of 23 rows across deck. The almost 50/50 discharged/loaded, equal large and small here offer more than projects will add another estimated 125 of to some 18.500 TEU. As the ship, using 9,900 reefer plugs. An eighth terminal to such devices. five cranes, was at berth for 81 hours, be capable of accommodating up to 8,100 Deep water in the port directly on this comes down to a production of 28 TEU ships, more than three times the the North Sea is Rotterdam’s trump moves per crane/137 per hour/3,270 present maximum container vessel size card. Antwerp and Hamburg continue moves per 24 hours… still far away from of 2,600 TEU, will open for business in to amaze the trade by their apparent the wanted 6,000. September. cargo generating capability inducing

3 Port Technology International www.porttechnology.org GLOBAL ISSUES

Parameters Surface Quay Berths Reefer StS Capacity Throughput Units ha meters no. points MHC Gantries 2014 (Port) 2014

Baltic/Scandinavia 185.7 3,807 19 1,985 1 24 3.9 2,465,000

UK/Eire 467 9,016 27 5,525 0 74 11.8 7,071,000

Europe North West 2,631 50,509 170 32,006 19 362 68 41,743,000

Europe Atlantic 52 2,202 9 618 1 15 2 1,748,000

Grand total 3,336 65,534 225 40,134 21 475 85.6 53,027,000

TEU *1 million Source: “CONTAINER VOLUMES & TERMINAL CAPACITY in North Europe II”, published by Dynamar B.V. More tables can be made available upon request. the carriers’ very largest ships to sail the - 5-year TEU throughput of all windy and winding Westerscheldt or the North European ports (more than 66 About the organisation relatively shallow Elbe. Le Havre may million TEU in 2014!) have misjudged vessel size development by - 5-year full TEU volumes North opting for 22-wide ship-to-shore container Europe-Far East trade (country/ gantries along its massive Port 2000 country) project, nearing completion. A solution - 5-year full TEU volumes may be to slightly list the 18,000+ TEU Mediterranean-North America trade ship to reach the 23rd row, or otherwise (country/country) Since 1981, Dynamar B.V. (Alkmaar, to turn her from port to starboard (or the - All (early year) North Europe-Far The Netherlands) has provided other way round). East and North America container Transport and Shipping Infor-mation services and Consultancy services for the Europe Atlantic - 3 terminals, 52-ha, • Profiled data: Trade name - Marine, Energy and Financial sectors. 2.2-kilometre quay line, 16 quay cranes carrier(s) - frequency - full port Dynamar today is world's leading The Portuguese ports of Lisbon and roundtrip - number and TEU container sector credit risk analyst and Sines are both called by Transatlantic capacity of ships - notes, if any a major provider of analytical container services operating out of North Europe - North European ports of call shipping news and commentary. and the Mediterranean. Sines also serves analyses for both main East-West as an Atlantic transhipment port for trades Whilst Credit Risk Assessment has MSC and accommodates one of the - Transhipment shares of the 4 main remained its core business, Dynamar 2M alliance’s North Europe-Far East hubs (handling over 50%) and 6 also specialises in: services, deploying ships of up to 14,000 potentials with the associated feeder - Marine Intelligence, including Cargo TEU. Lisbon’s current two terminals volumes and Vessel Tracking may -ultimately- be replaced by a new, 2 - Overview of all 20 new terminal - Consultancy for the Container Liner, million TEU facility. projects an intentions Multipurpose and Container Port/ - Eleven International and Global Terminals industry Features of CONTAINER VOLUMES Terminal Operators' North European - Shipping Publications & TERMINAL CAPACITY in North presence assessment Europe II include: - Historic and forecast GDP growth The publications activity is spearheaded • Identical, compact profiles and and population per country by the well known DynaLiners overviews of 75 existing terminals Table Existing 2014 North Europe portfolio of daily, weekly, monthly and - 20 expansions and 20 new projects Container Terminal capacity (of ports annual analytical news and commentary - in 26 different ports/11 countries handling Far East and North America on the worldwide (container) liner trade. across North Europe services) • Profiled data: Terminal name - Enquiries operator - owners - location - surface CONTAINER THROUGHPUT & - quay length - depth alongside TERMINAL CAPACITY in North Dynamar B.V. - number and outreach category of Europe II is immediately available and Noorderkade 1G Ship-to-Shore container gantries - can be ordered for direct download at P.O. Box 440 mobile harbour cranes - reefer points www.dynamar.com/publications/140 or by 1800 AK ALKMAAR - TOS - annualised TEU capacity contacting Dynamar B.V. The Netherlands - 2013/14 TEU throughput - notes - Prices (ex VAT) are as follows: expansion plans • PDF: EUR 670 Phone +31 72 514 7400 • Printed/bound by priority surface Fax +31 72 515 1397 - 2015/2024 status, annual mail: EUR 690 E-mail [email protected] development and forecast of terminal • PDF & printed/bound: EUR 735 Web www.dynamar.com capacity - 2005/2024 historic and forecast If you’d like to read the full report, please www.dynamar.com/publications/140 port container throughput visit www.dynamar.com/publications/140

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