Maersk newbuilds 22-wide
Transcription
Maersk newbuilds 22-wide
Section 1 7/9/06 4:58 pm Page 1 WorldCargo news AUGUST 2006 Maersk newbuilds 22-wide Maersk Line’s new generation of containership has an official capacity of 11,000 TEU. That is at least 10% more than the next biggest ships being built by Samsung for Seaspan (for China Shipping), but capacity of the newbuildings from AP Moller-Maersk’s Odense yard has already unofficially been put at 12,000-13,500 TEU. Maersk understated the capacity of its 6000 TEU ships, so commentators are bound to speculate about the size of the new ones. The first ship, newbuilding L-203, was formally named EMMA MAERSK at the Danish yard this month. The new ships stack 22-wide (cf Seaspan and new MSC ships are 18-wide) and that can be taken as a vindication of the 22-wide cranes that have taken hold in super post-Panamax crane populations in recent years. However, at about 400m long, the “futuristic” berth module of 350m is insufficient, so terminals based on 2 x 350m berths have a problem, although this is already the case with some of the 9000-10,000 TEU ships being introduced. The new Maersk vessels are understood to have a beam of 53m, so they are too big for the proposed New Panamax dimensions (see WorldCargo News May 2006, p1). It is understood that every cell in EMMA MAERSK is able to take high-cube containers and that would reduce container intake in terms of numbers. Maersk said the vessel sets new standards for safety and environmental protection. Environment-friendly (tin-free) sili- At a nominal 11,000 TEU EMMA MAERSK is the largest containership afloat con paint covers the hull below the waterline, reducing water resistance and cutting the vessel’s fuel consumption by 1200t per year as well as protecting marine life. Banks eye port assets Two investment banks, Deutsche Bank and Australia’s Macquarie, are competing to buy a 49% stake in Peel Ports, the UK’s second biggest port operator, whose assets include Mersey Docks and Harbour Company (Sheerness as well as Liverpool, plus stakes in overseas ventures), Clydeport, Hunterston Coal Terminal, the Manchester Ship Canal, as well as the Glasgow Harbour development and feeder operator Clydeport Shipping.Together ports controlled by Peel Ports in the UK handle almost 50 Mtpa. Peel Ports’ owner John Whittaker has hired Rothschild to sound out potential buyers of a minority stake in the £1.3B-valued Peel Ports, as part of a “wider plan to explore strategic options.” Private equity group 3i and the Canadian Pension Plan and Industry Funds Management (CPP) Artist’s impression of MDHC’s proposed post-Panamax terminal in Liverpool were reportedly also in the running at one stage. Both 3i and CPP were involved in the bidding, together with Macquarie, for Associated British Ports plc, which in the end went to the Admiral consortium of Goldman Sachs, Borealis Infrastructure Fund and GIC Special Investments for £2.4B. Macquarie was also part of the Endeavour consortium that bid unsuccessfully for PD Ports, which is now owned by Australia’s Babcock & Brown Infrastructure. Up to now, Deutsche Bank, which advised DP World on the purchase of P&O and is currently After sea trials the vessel will enter Maersk’s AE1 Europe-Asia service.The first commercial sailing from Gothenburg is due early next month (see p4). trying to facilitate the sale of P&O Ports’ US operations, has stayed out of ports acquisitions in its own right. The financial press has reported that private equity firms KKR, which recently partly divested Demag Cranes AG through an IPO, and CVC are also considering raising infrastructure funds in the footsteps of Goldman Sachs and Citigroup, which have established large funds capable of competing for the biggest assets. There is a view that Whittaker’s decision to seek a sale of almost half of his ports company is “opportunistic” given that Britain’s ports sector has been seen as such “hot property” in investment circles, but he may also be seeking to share the risk of developing the proposed post-Panamax container terminal in Liverpool and the deepwater container terminal at Hunterston. There is also scepticism, however, over how many potential buyers - mostly big infrastructure firms - are willing to take a 49% stake, as that still leaves majority control in Whittaker’s hands. Relocatable buildings The Port of Djibouti WiikHall 25 x 69 m The Port of Gothenburg WiikHall 10 x 600 m The Port of Oslo WiikHall 25 x 72 m Dry Goods Store WiikHall 20 x 36 m Bulk Storage WiikHall 40 x 44 m Warehouse WiikHall 40 x 150 m O.B.Wiik was established in 1912. WiikHalls have been installed in more than 50 countries. The steel construction is hot dipped galvanised. Choose between our 12 standard colours to match existing environment. Durable PVC coated fabric covers on clearspan steel frames 9-40 metre O.B.Wiik AS Industriveien 13 2020 Skedsmokorset Norway Tel: +47 64 83 55 00 Fax: +47 64 83 55 01 e-mail: [email protected] www.obwiik.no 77734%%,"2/#/- Fantuzzi loan deal US investment bank JP Morgan has granted Fantuzzi group two 4-year loans totalling €75M which, according to Fantuzzi’s COO and joint managing director Guido Luini, will be used to “sustain the growth and development of the business, strengthen group financial resources and repay the Fantuzzi Finanace SA Corporate Bond issued in 2001.” This bond was rescheduled in 2004 and carries high rates of interest (see WorldCargo News May 2004, p4). The first instalment of €35M fell due on 17 July this year and was paid on that day.The next instalment (€40M) is due in July 2007 and the final instalment (€50M) in July 2008. Because of its improving financial position, in fiscal 2005 Fantuzzi reduced its net debt by €39M to €163M. In effect, therefore, with the payment of the first tranche of the bond and the loan of €75M from JP Morgan, net indebtedness has increased to €203M. Luini states that to have such a leading merchant bank as JP Morgan associated with the Fantuzzi name will provide longterm stability and provide scope for new business opportunities to flourish. Both the loans are convertible into shares so, if they are not repaid during the course of 2008, JP Morgan would become a stakeholder in Fantuzzi group. One local source says that Fantuzzi “would pass into the control of the Stars and Stripes.” Luini states that Fantuzzi group revenues rose 9.5% in fiscal 2005 to €455.7M. Operating performance improved and pushed EBITDA up to €21.5M while, as noted, net debt went down to €163M thanks to improved working capital management. “These achievements,” said group chairman Luciano Fantuzzi, “confirm our company’s credibility and the group’s sound market outlook.” Although things are obviously still difficult, there is no question that sales are up and that the group is doing business at a profit. Last year, sales of mobile harbour cranes (MHCs), now made in Monfalcone, practically doubled. Output of MHCs is said to be running at a similarly high level this year. Capacity of the Monfalcone plant is being increased to 40-50 units/year and a new line of MHCs is being developed. The group is also investing in automation, with work centred on the in-house research division of Fantuzzi Reggiane SpA based in Genoa, known as FRED. It was this division that developed the socalled Creon control system that is now being used in Noell straddle carriers. Other product developments on the way include a hydrostatic dr ive version of the Noell “Sprinter” 1 on 1 straddle carrier and a more fuel-efficient line of RTGs. With production focused on the Noell China plant, Fantuzzi group has been the second biggest producer of RTGs in the world after ZPMC for the past two years. SIPG mulls Belgian terminal stake Shanghai Inter national Port Group (SIPG) is negotiating to take a stake in APM Terminals Zeebrugge in Belgium, which became operational in May. APM Terminals is reported to have agreed in principle to sell a stake in the terminal to SIPG, and the size and price are being discussed.“There is an 80% probability that we will buy into it,” SIPG president Chen Xuyuan said. Officials at APMT declined to comment, but Hong Kong-based analysts expect the deal to go through. They point out that SIPG, the dominant operator at the Port of Shanghai, had accepted APMT as a partner in the consortium that is developing the four-berth Phase II of Shanghai’s new deepwater container port at Yangshan. APMT and Hutchison Port Holdings of Hong Kong each have a 32% stake in the US$820M project, SIPG 16%, Cosco Pacific 10% and China Shipping Group 10%. If the deal is finalised, SIPG, which plans to sell shares in Shanghai next month, will become the first Chinese port operator to invest in a foreign terminal. APMT has a 36-year lease to operate the three-berth Zeebrugge terminal, which is spread over 57 hectares and has an annual handling capacity of 1M TEU. Its 900m quay, with a water depth of 16m alongside, is equipped with 7 super postPanamax ship-to-shore cranes and 2 rail-mounted gantries. Throughput at the port of Zeebrugge rose 17.6% to a record 1.42M TEU last year and overall cargo volumes rose 9% to 34.6 Mt. IN THIS ISSUE NEWS New Transtainer Five in for Panama DPW eyes Egypt Big three vie for Gwadar Richmond box port plan Toll flexes market muscle Box profits fall 2 6 7 9 13 16 19 PORT DEVELOPMENT Germany survey Russian ports invest Hotting up in Poland 21-27 28 30 CARGO HANDLING Shuttle carrier visions 31 CONTAINER INDUSTRY IT crucial for new leascos 34 New challenge for lessors 35 Section 1 7/9/06 4:58 pm Page 2 WorldCargo news CARGO HANDLING NEWS Mitsui launches new Transtainer Japan’s Mitsui Engineering & Shipbuilding has launched a new generation, rubber-tyred Transtainer with all-electric drive. In another departure, the new E-series Transtainer (RT4026-81-5E) is availabe for sale via an Internet sales system, in addition to usual sales channels. The dr ive to all-electr ic RTGs was begun about 10 years ago by KCI Konecranes and has been a major success story for the company. Marques are now available from other RTG suppliers and in the past two years or so it has become possible to eliminate hydraulics completely, with the development of all-electric yard crane spreaders that save even more on overall weight and maintenance costs. In announcing its own all-electric spreader, Mitsui is undersood to be the first crane OEM to offer its own design, designated SPT-E40 As Mitsui states, all-electric RTGs are growing in popularity worldwide because of higher oil prices and environmental con- cerns. Specifically, the company states that its own E-ser ies Transtainer has achieved a fuel reduction of 20% compared to the existing model by means of electric steering, the electric spreader and more effiicient drives and controls. With an eye on reduced maintenance costs, the E-series also features an energy chain for the trolley instead of a festoon, although again this has been a virtual “standard” on a number of other RTG marques for years. Hoisting and trolley speeds are about 10% faster, for higher productivity. The new Transtainer has an SWL of 40.6t, a span of 23.47m and wheelbase (two wheels per corner) of 6.4m. Lift height is 18m (1 over 5 x 9ft 6in high). At this juncture, Mitsui does not appear to be offering a 16wheeled version, but one is likely to follow soon It is also not known as yet whether it will be available to other Paceco licensees, although as Mitsui owns which has co-operated with Paceco Corp on bidding for several crane porjects in Indian ports in the past 2-3 years, is now an official Paceco licensee. ● Siemens Netherlands reports that the first of 20 ECO-RTGs (fuel-saving RTGs) are en route from ZPMC in Shanghai to APMT Algeciras, on board ZHENHUA 2.As previously reported, Siemens claims that field tests have shown that terminal operators can achieve over 50% fuel saving when using its ECO-RTG hybrid drive technology, without compromising productivity, Operating 20 ECO-RTGs in Algeciras, says the company, will result in a decrease of emitted CO 2 of 4100 tpa, equivalent to the annual CO2 emissions of 1200 cars. Liebherr to open another new factory both Paceco Corp and Paceco España, this seems likely. Mitsui first entered into a technical ag reement with the (then) Paceco, Inc in 1961 and has supplied more than 200 Portainers and 800 Transtainers worldwide. ● Kolkata-based TIL Limited, Austria-based crane manufacturer Liebherr-MCCtec, the “holding” for the Liebherr group’s port- and marine-related crane products division (see WorldCargo News June 2006, p4), is planning to open another new factory in the German coastal town of Lubmin in the state of Mecklenburg-Vorpommern. According to the state’s Ministry for Economics, negotiations are in progress to set up a production line at a former nuclear power station. It is only a few months since Liebherr-MCCtec opened its new, waterside production facility in Rostock, about 100 km to the west of Lubmin. But appar- ently Rostock is already fullybooked up to the end of 2007 and has orders running into 2009. “We were overrun by orders,” Wolfgang Pfister, marketing director of Liebherr, is happy to report. Additional orders would have to be assembled at an additional location. The Rostock plant employs 350 people. The Liebherr group employs more than 23,000 people in 100 group companies. In addition to all kinds of cranes it manufactures building machinery, domestic appliances, aircraft equipment, etc. Annual turnover is around €5B. /URINNOVATIVE TRAILERSANDGRABS Bromma Group recently commemorated the supply of its 200th spreader to Liebherr Container Cranes in Ireland.The relationship with Liebherr Ireland dates back to 1976. Earlier this year Bromma received its largest single order ever from Liebherr Ireland - a contract for 34 Bromma ship-to-shore spreaders. The picture shows (left) Patrick O’Leary, Liebherr’s director of sales and engineering, with Lars Fredin, Bromma’s vice president, sales and marketing New Meclift truck 7EAREONEOFTHEWORLDSLEADING SPECIALISTSINGRABANDTRAILERSOLUTIONS 4HISFACTOFCOURSEISLARGELYDUETO OURCONSTRUCTIONEXPERIENCEINNOVATION ANDWORLDWIDESUPPLYTHROUGHMATCHING THEBULKCONTAINERANDINDUSTRIAL REQUIREMENTS,ETUSPROVETHATOURSOLU TIONSMATCHWITHYOURHIGHESTDEMANDS &ROMWITHINOURGROUPOF COMPANIESWECANSUPPLY $UMPTRAILERS %ARTHMOVING MACHINEEQUIPMENT "ECO"OFORCE "OOMSAND&RONTS 2 2ECENTHIGHLIGHTS /RDERSOF0ANAMA0ORTS#OMPANY3! "ALBOA66unitsOFSKELETALTRAILERSAND %#4$ELTA4ERMINAL"62OTTERDAM 16 unitsOFSKELETALTRAILERSAND60 unitsOF-43TRAILERS "OTHCOMPANIESBELONGTOTHE(UTCHISON 0ORTS(OLDINGS'ROUPIN(ONG+ONG 0ROGRAMME s -43#ONCEPTS s 3KELETAL4RAILERS s 2OLL4RAILERS s'OOSENECKS s )NDUSTRIAL4RAILERS s -ECHANICALCLAMSHELLS s (YDRAULICCLAMSHELLS s %LECTROHYDRAULIC CLAMSHELLS s %LECTROHYDRAULIC /RANGE0EELGRABS s "OOMSAND&RONTS Oy Meclift Ltd, the Finlandbased manufacturer of variable reach trucks and side reach stackers, has extended its range with the introduction of the ML 3012RC variable reach truck for container stuffing and other heavy lift applications. The machine can place a load of more than 20t in the middle of a 20ft container, for example. The ML 3012RC has a lifting capacity of 30t at a load centre of 1.2m. It is characterised by a reach feature that enables it to handle heavy loads from locations impossible for straight-masted lift trucks. Its telescopic booms enable it to to stuff/strip containers without the need for extra handling equipment. The direct hydraulic lifting is also said to be simpler to maintain. The hor izontal telescopic twin boom configuration and hydraulically movable cabin design offer excellent visibility and comfort for the driver. The truck is equipped with an electricallycontrolled, low emission Volvo engine, ZF transmission and electrically-controlled load sensing hydraulics and variable displacement pumps, combined with CANBus technology for reliable operation. The machine has a maximum lift height of 6m and outreach of 2.25m. With the machine length of 6.03m (without forks), width of 2.8 m and turning radius of less than 5.5m, it is claimed to be the most compact lift truck on the market in its lifting capacity range. The new Meclift ML 3012RC variable reach truck with 20t test load "ECO"LEIJENBERG 'RABEQUIPMENT 0/BOX%$6IANEN(OLLAND$E,IMIET.26IANEN(OLLAND 4EL&AX %MAILINFO BUISCARCOMINFO BLEIJENBERGNLINFO BECOVIANENCOM WWWBUISCARCOMWWWBLEIJENBERGNLWWWBECOVIANENCOM August 2006 Section 1 1/9/06 9:29 am Page 3 WorldCargo news CARGO HANDLING NEWS ESC partners with Savi Embarcadero Systems Corporation (ESC) has signed a “strategic services agreement” to be a systems integrator for Savi Networks’ RFID-based tracking and security system, SaviTrack. ESC’s sister company Marine Terminals Corporation (MTC) has a partnership arrangement with Savi Networks and ESC has already integrated SaviTrack at several of its terminals. ESC offers its own tracking system, VoyagerTrack, but Savi Networks’ senior vice president Bob Creamer says Savi Networks is not looking for product synergies and chose to partner with ESC because of its “domain and technology expertise” in the North American Market. As well as MTC, Savi Networks now has partnerships to install pilot systems with the Georgia Ports Authority, Trans Pacific Container Service Corporation (TraPac - the US terminal operating subsidiary of MOL), Yang Ming Lines and Hutchison Port Holdings (HPH). Creamer says new majority owner Lockheed Martin is pleased with progress since it acquired Savi Technology for an undisclosed sum in June and Lockheed’s position as the world’s largest aerospace company brings “enormous credibility” to Savi Networks. With Lockheed Martin holding 51% and HPH 49%, Savi Networks is now backed by two major corporations and not venture capitalists.As well as a greater pool of resources, Lockheed is vastly experienced in building complex integrated systems and has technical expertise in command and control systems within a global transportation network, Creamer adds.The company has been developing supply chain products and systems for some time and in 2004 announced a strategic partnership with Hewlett Packard to combine the global logistics expertise of both companies and provide end-to-end enterprise logistics solutions. EMS inks KE deal EMS-Tech Inc, designer and supplier of mobile equipment, bulk materials handling systems and marine unloading systems, and Germany-based crane maker Kranbau Eberswalde (KE) have announced a deal whereby EMS will market and provide technical support for KE cranes within the NAFTA area and the Caribbean. “We are very pleased to be working with Kranbau Eberswalde,” said EMS president Peter Sorensen. “Their product line exhibits a high degree of quality and their philosophy of cus- tomer service and support matches very well with EMS-Tech. We see significant potential for expansion of their product line into North America with several unique products that can effectively serve the shipping industry here.” KE has supplied more than 4600 cranes worldwide for ports, shipyards, metallurgy and other industr ial branches and is a leading marque in the field of heavy duty, double level luffing cranes for multi-purpose and grab duties. KE and Kocks Cranes are part of Kirow Leipzig. PIV Drives restructures Germany-based PIV Drives, part of of the global Brevini Power Transmission group, has restructured its organisation in order to improve its service to the market and to support growth.The company now has five business areas: cranes, general handling and industrial applications, rubber and plastics, planetary gearboxes, variators and service. Development and production of power transmissions for cranes is one of PIV Drives’ business fields. Gearboxes from Bad Homburg are used by major crane manufacturers all around the world. On the basis of a modular component system, the company provides series gearboxes and individually adapted solutions for most crane types. Brevini’s new High Power Series combines the epicyclic gear design of Brevini’s “S” Series of planetary gearboxes with the modular advantages provided by PIV’s POSIRED 2 family of helical and bevel/ helical gearboxes. The result is a flexible power transmission package that is touted as an ideal solution for use in pulp and paper processing, conveyor drives, industrial and marine lifting equipment, grinders and mills, machines for working sheet steel and rod, large iron-making plants, sugar and food production plants. The new High Power Series was launched with five standard sizes, including a wide range of transmission ratios from 100 to 670, nominal torque ratings from 37,000 to 370,000 Nm and nominal power from 160 to 950 kW. Loading bay solution Eurokey Recycling Ltd has solved the problem of having no loading bays by using dock levellers from Thorworld Industries to load containers.The Leicester, UKbased plastics recycler takes in large quantities of waste each week. Some of it is granulated, but most is baled before being shipped to export markets in the Far East. Its two 10,000 kg capacity Thorworld Yardramps are fixed to the ground next to one another in the despatch area. JCB Teletrucks drive up the ramps with either a bale or 1t sack of granulated material and load them inside the container. The Thorworld ramps feature handoperated hydraulic pumps.This allows them to be finely-adjusted and raised to the required height for use with every size and type of container vehicle. They are available with a steel superstructure in 7000, 10,000, 12,000 or 15,000 kg capacities. Built with solid beam construction and hydraulically operated down to 890mm, they have a serrated open grid deck for positive traction in all weather conditions and a built-in tow bar, which does not have to be removed, for towing by FLT. Paper recycling specialist, Casepak (Midlands) Ltd, also uses two Thorworld Yardramps to load containers at its Leicester sorting station. One has a 10,000 kg capacity and the other a 15,000 kg capacity. They are located side-by-side in an outdoor despatch area. August 2006 7TH GENERATION STRADDLE CARRIER SERVING THE 7 SEAS WITH ADVANCED TECHNOLOGY. We took the most popular straddle carrier family in the world and made it better again. A completely new W-shape cabin with excellent visibility and 180° rotating seat combined with the very rigid Kalmar steel structure makes the new 7th generation straddle a pleasant and efficient working environment for the driver. Simple direct wheel drive combined with the new heavy duty wet disc brakes and the new rope winch hoist option means lower maintenance and operating cost. Remote maintenance interface (RMI) compatibility enables faster real time world-wide support through the web and better availability. The new straddle carrier family is available in proven Smoothlift™ hoist models SHC, CSC, ESC and in the new ESC W winch hoist model. All versions are also available without a cabin and with full automation. www.kalmarind.com 3 Section 1 7/9/06 4:58 pm Page 4 WorldCargo news CARGO HANDLING/PORT NEWS More Gottwalds for Lübeck favours HIT bulk terminal Hamburg link-up Associated British Ports (ABP) is set to invest £3.7M in two new cranes from Gottwald for Humber International Terminal 1 (HIT-1), the dedicated dry bulk handling terminal at the Port of Immingham, following the signing of a new 5-year coal import agreement with the Hargreaves Group. The agreement, which will see Hargreaves increase the volume of coal it currently imports through Immingham from South America and Russia for UK generators by some 0.4 Mtpa, includes the leasing of storage space at the western end of the port. ABP will invest £2.6M in a G HSK 7416 B rail-mounted portal crane. This is the “Generation 5” equivlaent of the “Generation 4” HSK 360 EG, two of which were supplied for the new HIT-2 last year. There are no crane rails in HIT-1 and to accommodate the new crane ABP will extend the 14m span rails from HIT-2 into the older facility, enabling the new crane and the adjacent existing one to work in either part of HIT. HIT-1 was supplied with three HMK 280 EG harbour mobile cranes when it opened in the late 1990s. One of these has been removed to work at another Immingham berth and will be replaced by the second new crane from Gottwald, valued at £1.1M.The details of this new harbour mobile crane have not yet been released but, unless it is a second-hand machine, it will be a Generation 5 unit as production of old model cranes has been discontinued. Raw materials import and distribution specialist Hargreaves has been importing coal through HIT-1 since 2003.ABP says that HIT-1 and HIT-2 have a combined capacity of 12-13 Mtpa. WorldCargo news VOLUME 13 NUMBER 8 • ISSN 1355-0551 EDITORIAL: CHRIS MUNFORD • PUBLISHING DIRECTOR E-Mail: [email protected] VINCENT CHAMPION • EDITORIAL DIRECTOR E-Mail: [email protected] PAUL AVERY - ASSOCIATE EDITOR E-Mail: [email protected] JOHN BANKS - CONSULTING EDITOR E-Mail: [email protected] ADVERTISING: SIMON PESKETT • ADVERTISEMENT DIRECTOR E-Mail: [email protected] MIKE FORDER • COMMERCIAL DIRECTOR E-Mail: [email protected] STEPHEN CATCHPOLE • BUSINESS DEVELOPMENT MANAGER E-Mail: [email protected] JAYANA AUSTIN • ASSISTANT ADVERTISEMENT MANAGER E-Mail: [email protected] Following the City of Lübeck’s announcement that it is prepared to sell shares in the port operating company (LHG) to help fund future developments (see WorldCargo News March 2006, p12), Ekkehard Eymer, chairman of the advisory board of LHG, has stated that the city favours involvement by the Port of Hamburg. Some €150M are needed for port investments up to 2015, said Eymer, who pointed out that close cooperation with Hamburg already exists in several fields. HHLA owns and operates Lübeck’s only purpose-built, lo-lo container terminal (CTL), while Combisped is also a joint venture of the two ports. “We could jointly develop our port location and ensure that with their know-how the opportunities in the logistics chain could be optimised. Money would be in- New cranes at TIPS MOL and NYK have announced that their affiliate TIPS Co Ltd in Laem Chabang,Thailand, has introduced two new ship-to-shore cranes. The ZPMC cranes started operations on 30 July, joining three Panamax cranes at the terminal. As previously reported (see WorldCargo News July 2005, p21), the new cranes are 50t (twin 20)48m outreach (17-wide) machines, with a lift height of 38m above rail. Hoist speeds are 80/160 mpm and trolley speed is 180 mpm and they are fitted with Yaskawa ac drives. “Laem Chabang is the world’s 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] SPAIN AGENT ANDREW DOUGALL, COMUNICADO SL Telephone: +34 942 52 86 62 Fax: +34 942 52 86 77 E-Mail: [email protected] PUBLISHED BY WCN PUBLISHING Northbank House, 5 Bridge Street, Leatherhead, Surrey KT22 8BL, England. Telephone: +44 1372 375511 Fax: +44 1372 370111 Above: Three superpost-Panamax ship-to-shore cranes, claimed to be the largest in northern Europe, are seen arriving at the Swedish Port of Göteborg on the ZHEN HUA 4 following a 64-day voyage from the ZPMC factory in Shanghai. With a maximum over-water height of 118m, the new cranes have been designed to handle the latest generation of large container vessels and can handle a 23-wide deck stow.They are scheduled to be commissioned in time for the maiden call of the EMMA MAERSK, which stows 22 boxes across deck, on 8 September (see p1) Below: The Port of Felixstowe has taken delivery of nine more ZPMC RTGs, which were transported fully erect from China on the ZHEN HUA 1.The 16-wheel, 40t capacity RTGs are capable of stacking 1 over 5 and straddle seven rows of containers.They will be deployed at the port’s Trinity Terminal, bringing the total number of RTGs there to over 100, including 41 ZPMC machines, which have been delivered since 2002 20th top port in terms of container volume, handling about 3.8M TEU last year,” stated MOL and NYK. “TIPS plays a key role in the port’s success, with throughput rising from 16,000 TEU when it opened in 1992 to 794,000 TEU last year.With the new large cranes, TIPS can accommodate today’s 6000 TEU containerships and offer faster, more efficient loading and discharging of all vessels.” The single berth (300m long) TIPS facility has a depth of 14m alongside, occupies 10.5 hectares and has ground slots for 7250 TEU. See Us at TOC Americas 2006 ADMINISTRATION & CIRCULATION: GILL TILBURY • SALES & MARKETING COORDINATOR E-Mail: [email protected] NICCI VIGORITO • MARKETING ASSISTANT E-Mail: [email protected] ITALY AGENT: GENERAL ADVERTISING MEDIA & EXHIBITIONS SRL Telephone: +39 010 589752 Fax: +39 010 562193 E-Mail: [email protected] vested for long term solutions,” said Eymer. Lübeck could be interesting for Hamburg as it would give it more say over direct connections into the booming Baltic market. LHG has just published its first half figures. The port handled a total of 14.9 Mt, of which 13.3 Mt went via LHG’s terminals, an increase of 10% compared with the first half of 2005. Container traffic increased by 8% to 42,000 TEU, while ro-ro forest products throughput went up by 16% to 1.6 Mt and ro-ro truck and trailer throughput rose 7% to 392,000 units. LHG subsidiary Baltic Rail Gate handled 11% more rail cargoes at the Skandinavienkai in Travemünde.This is already LHG’s biggest terminal and is to be further enlarged in a €84M project. + Your Existing Crane Motors & Generators Avtron Controls = Productivity Profits New Brains for Old Cranes Replace your obsolete system controls with Avtron’s digital drive systems. Enjoy “new crane” performance without new crane expense. Up to 5 TEU/hour improvement. Improve reliability. Reduce maintenance costs. Optimize operation. SUBSCRIPTIONS Subscriptions are available from the address above or via our website: www.worldcargonews.com WorldCargo News/ISSN 1355-0551 is published monthly for US$155 per year by WCN Publishing. Periodicals postage paid at Rahway, NJ. Postmaster: Send address changes to WCN Publishing c/o Mercury Airfreight International Ltd, 365 Blair Road, Avenel, NJ 07001 Entire contents © WCN Publishing 2006 4 7900 E. Pleasant Valley Road Independence, Ohio 44131 Tel. (216) 642-1230 Fax (216) 642-6037 E-mail: [email protected] Hirschmann absorbs PAT Hard on the heels of the earlier announcement that the PAT GmbH retrofit business and associated services would be run through its international dealer network (see WorldCargo News June 2006, p3), Hirschmann Industries has announced that PAT is being merged into it and this former daughter company will henceforth be Hirschmann’s Electronic Control Systems division. The date of the merger has been backdated to the beginning of this year.The product range of load moment indication systems will continue to be marketed under the brand names PAT, Krüger and Hirschmann. PAT’s Ettlingen headquarters will also continue to operate. The merger of the two companies will open up numerous market oppor tunities, says Hirschmann’s CEO Reinhard Sitzmann. “In addition to synergies in purchasing, production and administration, there are numerous areas of technology where we have a lot in common, for example field busses or connectors. “The know-how that both companies possess can be used more efficiently than in the past thanks to shared structures and processes. We will benefit from this as much as our customers.” The three product divisions, Industrial Networking, Industrial Connectors und Electronic Control Systems, will work together under the shared roof of Hirschmann Automation and Control GmbH. August 2006 Section 2 7/9/06 5:06 pm Page 5 Experience the Progress. Liebherr-Export AG General-Guisanstraße 14 CH-5415 Nussbaumen, Switzerland Phone: +41 56-296 1111 Fax: +41 56-296 3900 www.liebherr.com The Group Section 2 8/9/06 3:36 pm Page 6 WorldCargo news PORT NEWS Five in for Panama terminal Genoa project delayed The inauguration of the project to build the fourth container terminal at Bettolo Quay in the Port of Genoa had to be postponed last month after the State Council Court agreed to hear an 11th hour complaint by the losing bidder for the construction works, an ad hoc consortium of Impresa Fincosit and Coopsette. The port authority (APG) had awarded the tender to Tecnis. The case has been assigned to TAR Lazio, the regional admin- istrative court of Rome, and a decision is now expected on 6 September. This legal spat does not, however, affect in any way APG’s earlier award of the concession to manage and operate the new terminal to Consorzio Bettolo, made up of MSC (65%) and SECH (35%). SECH has operated the adjoining Calata Sanitá container terminal since 1993 and, as such, was the first private container terminal operator in Genoa. The Bettolo terminal, part of APG’s masterplan, was approved by the Ministry of Public Works in August last year. The facility, to be created by filling in the basin between Rubattino and Paleocapa piers, is due for completion by the end of 2009 at an estimated cost of €130M. The project requires some 2.4M m3 of fill material, of which around two thirds will come from dredging programmes that have already been approved. The 2-berth facility will pro- Overheight cargo ? INCREASE 2.5m YOUR DOMINO XL HEIGHT WITH 1FT OR 2FT POST EXTENDERS EXTENDERS FOLD FLUSH INTO BASE DOMINO Flatracks WORLD LEADERS IN INNOVATIVE DESIGN AND MANUFACTURE Post Extenders clamped to Domino XL flatracks quickly increase the internal cargo height to 2.5m. The XL posts and hinges are made especially strong and rigid to support the extra handling, stacking and racking. And the walls can still fold flush within the base. Tel: +44 (0)1926 863 140 E-mail: [email protected] Web: www.dominoflatracks.com The Bettolo terminal at the Port of Genoa will be created by filling in the basin between Rubattino and Paleocapa piers vide 620m of linear quay with a depth of 14.5m alongside and the CY will occupy an area of 180,000 m2. Static storage capacity is put at 18,500 TEU and dynamic capacity at more than 500,000 TEU/year. The facility will more than double SECH’s existing wharfage and terminal area and its existing intermodal railhead is conveniently located to serve both the north and south sides of the enlarged facility. WA looks offshore The Western Australian government has chosen an offshore option for the successor to Fremantle’s Inner Harbour as the state’s container port, proposing a manmade island about 2.6 km long and 700m wide off the coast at Kwinana The preferred option has emerged from an extensive programme of consultation and technical analysis, with a report by the Fremantle Ports Outer Harbour Project recommending an island port facility in Cockburn Sound, located about 15 km south of Fremantle and about 1 km off the coast.A bridge at the northern end of the island would provide a road and rail link to the mainland It is envisaged that the threestage project would have an ultimate capacity of more than 2M containers/year, compared with the 1.2M capacity at the Inner Harbour.The outer harbour container facilities would start operating in tandem with the inner harbour from about 2015. The estimated cost of stage one, including the rail and road links, is about A$1.3B. Infrastructure Minister Alannah MacTiernan said it was likely that, as in the Inner Harbour in Fremantle, the new facility would be a mix of public and private investment.“I want to emphasise that the government is committed to the Inner Harbour’s continued operation as a working port,” she said.“The selection of the outer harbour location for overflow container and general cargo berths is the outcome of an exhaustive process undertaken over many years. This process has been sensitive to the impacts of the project on local communities, transport networks and the marine environment.” The outer harbour project is being managed by Fremantle Ports and the Department for Planning and Infrastructure. If in-principle approval is given, a full statutory planning and environmental process will follow. The announcement of the island terminal option has led to pressure for the reactivation of the long-dormant plan for a private sector development at James Point. Proponent James Point Pty Ltd wants to build a bulk terminal followed by a container and general cargo terminal, in two stages, south of the Kwinana site, but has been effectively stymied for some years by the WA government’s support for the Fremantle Port Authority’s own plans. Five major container terminal operators have submitted preliminary bids to build and operate a US$900M container terminal at the Pacific Ocean entrance to the Panama Canal, according to the Panama Mar itime Author ity (APM). The companies are Hutchison Port Holdings (HPH) and Cosco Pacific of Hong Kong, PSA International of Singapore, Denmark’s APM Terminals (APMT) and US-based Marine Terminals Corp (MTC). Construction of the port - to be located in the Palo Seco/ Farfan area near the former US airbase at Howard - is scheduled to begin next year. When the first phase is completed, the port will have 1.6 km of berths with a 15m depth alongside, equipped with 18 postPanamax cranes and an annual handling capacity of 2.4M TEU. Last November, APM and Panamanian government officials met with 12 international port operators to brief them on the project. They included Japan’s NYK Line, PSA, Dubai’s DP World, HPH, P&O Ports, APMT, Cosco Pacific,Taiwan’s Evergreen Marine Corp and Stevedoring Services of America (SSA). Panama currently has four main container terminals. The one on the Pacific coast, Port Terminal SA at the Port of Balboa, is operated by HPH. The others are on the Atlantic coast. Manzanillo International Terminal is operated by SSA, Colon Container Terminal by Evergreen and Colon Port Terminal by HPH. A feasibility study conducted recently by a Japanese international development agency recommended fully developing and modernising the existing Port of Balboa, followed by the development of a second major container port at Farfan. The 253 hectare site is located next to the for mer Howard airbase, now used as an airport, which is being developed into a multimodal transport and manufacturing hub. OOIL box terminals could fetch US$1B w w w. s t e e l b r o . c o m 6 The sale of Hong Kong-based Orient Overseas International Ltd (OOIL)’s four container terminals in the United States and Canada could fetch US$1B, and up to US$1.6B if a bidding war developed, analysts say. The sale by Orient Overseas Container Line’s parent company (see WorldCargo News July 2006, p6) has attracted interest from some of the largest infrastructure investors, including investment bank Goldman Sachs, Macquarie Group of Australia, Babcock & Brown Infrastructure, TPGNewbridge and Kohlberg Kravis Roberts, informed sources said. OOIL chief financial officer Nicholas Sims told WorldCargo News that around 16 companies have shown interest in the terminals - Deltaport and Vanterm in Vancouver, New York Container Terminal in New York and Global Terminal in New Jersey. Interested parties are in the process of submitting their tenders and the top bidders will be selected for the next round of talks by the end of this month, he said. “Everything is at a preliminar y stage. We don’t have a timeframe when the deal would be completed,” Sims said, adding that the company has not calculated a final price and would prefer one buyer. Analysts at investment bank JP Morgan have valued the terminals at 30 times this year’s expected earnings, a 10% discount on the valuation Singapore’s PSA International put on the 20% stake it acquired in the global assets of Hutchison Port Holdings of Hong Kong this year. The global assets of P&O were also sold at earnings multiples of more than 30 times to DP World this year. Analysts at Macquarie and Goldman Sachs expect pre-tax earnings of OOIL’s terminals to increase 13% to US$107M this year, up from US$92M in 2005. August 2006 Section 2 7/9/06 5:19 pm Page 7 WorldCargo news PORT NEWS DP World eyes Egypt Thamesport completes projects DP World (DPW) has announced that it will invest close to US$$8.7B in Egypt to develop a seaport and some other industrial projects.The investment includes the development of a container terminal at Eastern Port Said (US$3.5B) and associated infrastructure to faciliate movement though the canal (US$5.2B), according to a report in Gulf News. Egyptian officials, quoted by an Arabic newspaper, said E£20B will be invested in the development of the container terminal and E£30B on establishing facilities to serve the port and ship and container movement through the Suez Canal. Mahmoud Atta Allah, deputy chairman of the Egyptian Investment Authority (EIA), said the authority will soon conclude its negotiations with DPW on de- Cosco Pacific into Fujian Cosco Pacific, the world’s fifth-largest port operator, has formed a US$99M joint venture to operate and manage a four-berth container terminal at Quanzhou port in China’s south eastern Fujian province. Spread over 280,000 m2, the terminal has a 970ft quay with draft of 15.1m and annual handling capacity of 1M TEU. Quanzhou Pacific Container Terminal Co, in which Cosco Pacific has 71.43% stake and Quanzhou Port Container Co the remainder, will add a fifth container berth and a multi-purpose cargo berth by 2008. The new container berth will be capable of handling 100,000 dwt ships and the multi-purpose berth will accommodate vessels of up to 50,000 dwt. Quanzhou, China’s 13th-largest container port, handled 630,000 TEU last year. Throughput is expected to rise to 870,000 TEU this year and to 2M TEU in 2010. Cosco Pacific’s existing terminals in the Pearl River Delta, Yangtze River Delta and Bohai Rim in China, Hong Kong, Singapore and Belgium, handled 14.97M TEU in the first six months of this year, up 23.5% over the same period of last year. But throughput at its Cosco-HIT joint-venture terminal in Hong Kong fell 28% in June, indicating that it has not recovered from the loss of major client China Shipping Container Lines to Hongkong International Terminals in January. Cosco-HIT, operated with Hutchison Port Holdings, handled 122,300 TEU, down from 169,800 TEU in June 2005, with the total for the first six months falling 12.% to 823,500 TEU. Osaka Bay merger plan The Japanese government is proposing to merge the four Osaka Bay ports of Kobe, Osaka, Sakai-Senboku, and Amagasaki-Nishinomiya-Ashiya into one Hanshin port. Land, Infrastructure and Transport Minister Kazuo Kitagawa made the announcement at an international logistics symposium this month. In line with efforts to reduce a tonnage-based tax and simplify port procedures, the aim is to make international logistics in the Kansai region more efficient. Kitagawa said his ministry will set up a committee made up of concerned parties in September to study the plan. Investigations will be carried out for its early realisation. The four Osaka Bay ports must be reorganised into a single, unified, userfriendly port. In terms of functions, they lag behind the Keihin (Tokyo/ Yokohama) ports, which are now virtually amalgamated into one mega port, Kitagawa said. August 2006 veloping Eastern Port Said and its seaport along with some industrial projects. Atta Allah said the talks between Dubai and Egypt started about two months ago and Egyptian Investment Minister Mahmoud Mohi Al Deen and EIA chairman Ziad Bahaa Al Deen have visited the UAE in this connection. A comprehensive investment dossier regarding Eastern Port Said was presented to DPW during the visit, and the situation of the Suez Canal was discussed, as well as that of the neighbouring ports along the navy line, which lack ship services, irrespective of the large number of ships that crosses the canal every day. After three years of rapid growth, Thamesport (London) Ltd, part of Hutchison Port Holdings (HPH), has announced the completion of a number of enhancement projects. First, the number of parking slots for waiting hauliers has been almost doubled to 120. The new paved ‘Haulier Waiting Area’ compr ises 14,200 m2 of floodlit, herringbonestyle parking slots and will be used in conjunction with the ‘vehicle pager’ system cur rently employed at Thamesport. Another 2400 m2 of container stor- age area has been added to Thamesport’s railhead, which currently handles four daily trains serving Birmingham, Manchester, Leeds, Coatbridge (Glasgow) and Doncaster.The extra storage capacity will enable the port to provide a buffer for rail container exchange and give it the opportunity to pre-pick a small number of containers for movement by rail at an earlier time than currently achieved. Construction of a further paved area of 38,700 m2 and an additional aggregate-surfaced yard of 37,700 m2 allows the port to store an additional 8000 TEU of empty containers - almost three times the previous empty container capacity. Improvements are also planned at nearby Maritime Container Services (MCS), the container haulage company owned and operated by Thamesport. A new 9500 m2 gate facility will soon replace the existing depot gate, through which containers enter MCS. “These new enhancements place Thamesport in an even stronger position to meet customer needs,” said Chris Lewis, CEO of Hutchison Ports (UK) Ltd.“Thamesport is currently the only UK port that has capacity to welcome new customers.” Extremely short delivery time for standard Yard Tractors! Ordered today and already 4 weeks later in operation. To serve you even better our production capacity has been further increased. MAFI Transport-Systeme GmbH Hochhäuser Straße 18 D 97941 Tauberbischofsheim Germany For more details: www.mafi.de – [email protected] 7 Section 2 1/9/06 10:09 am Page 8 TEREX NEW SUPERSTACKER. New TEREX Superstacker: the ultimate solution for moving containers safe and fast. What makes the new TEREX Superstacker so valuable for you: Complete range of products to serve your handling needs Groundbreaking design and high-grade materials to build a high-value product Reliability from TEREX, the no. 3 construction equipment manufacturer in the world Sturdy drivelines to cover rough working conditions TEREX Superstacker delivers uptime, supported by a reliable service organization Versatile attachments to provide more flexibility to your daily business Highest value for your investment TEREX CRANES FRANCE · Z.I. La Saule - B.P. 106 · 71304 Montceau-les-Mines Cedex France · 00 33 38567 3858 · www.terex-ppm.com · [email protected] Section 3 7/9/06 6:16 pm Page 9 WorldCargo news PORT NEWS Nagoya goes NUTS Duopoly to be excluded from PB3T… Nine transportation companies plan to unify the operations of eight berths at three terminals Tobishima Pier North Container Terminal, Tobishima Pier South Container Terminal and NCB Container Terminal - at Japan’s Nagoya port. Terminal planners’ offices will be moved to the administration building of NCB in December. This will be followed by the introduction of the Nagoya Unified Terminal System (NUTS) in spring 2007 to facilitate unified control of yard storage plans, handling equipment and berth planning. The companies involved are Asahi Unyu Kaisha, Isewan Terminal Service Co, Kamigumi Co, Tokai Kyowa Co, Nippon Express, Fujitrans Corp, Mitsui-Soko Co, Mitsubishi Logistics Corp and Meiko Trans Co.The plan follows the success of NUTS, introduced in 1999 at Nabeta Pier Container Terminal and managed and operated by Nagoya United Container Terminal, which was established by eight port transporters. A port official said the main purpose of unified operations was to maximise the use of limited yard space to increase the effi- August 2006 Operations at the Tobishima Terminals (pictured) are to be integrated with those of the NCB container terminal ciency of the berths, some of which are only 270m long. Already, handling equipment is jointly used among the three terminals and berth space is “borrowed” from an adjacent terminal when a large vessel has to be handled at a small berth. With joint operations, if congestion occurs, ships will be able to dock at available adjacent terminals to help shipping lines keep to their operation schedules. ● A new post-Panamax gantry crane, currently undergoing trials at the Nabeta Pier Container Terminal, will become operational in October after adjustments and inspections. The crane, ordered by Nagoya Port Terminal Public Corp from Mitsui Engineering & Shipbuilding, has increased the number of cranes at the terminal to six. With an outreach of 50m, the monobox-type, earthquakeresistant crane is capable of reaching across 18 rows of containers. Its hoisting capacity is 58.6t and rated load 40.6t (containers)/50t (heavy cargo). The New South Wales Government has decided that neither P&O Ports/DP World nor Patrick/Toll will be permitted to operated the planned third Port Botany container terminal (PB3T). Ports Minister Joe Tripodi said he wants new players in the port. “We believe the logistics chain, particularly in Sydney, should be subject to more aggressive competition, so final consumers can benefit from that,” Tripodi told local media. “We’re concerned about the nature of the duopoly that operates at the port.” The decision effectively overturns Sydney Ports Corporation (SPC)’s longstanding position that PB3T would not necessarily exclude the incumbents, although finding a way to ensure the balance was maintained between the duopolists has seen a number of unlikely “split facility” scenarios explored. Not surprisingly, Tripodi’s announcement drew swift reactions. Toll managing director Paul Little was blunt: “In recent years, Patrick has spent over A$150M on the redevelopment of the Port Botany terminal.Two new ZPMC cranes are currently being commissioned and the first of five RMGs is soon to arrive. The entire terminal has been resurfaced and reconfigured to almost double its handling capacity.The straddle fleet has been increased to 33 machines with the purchase of four Generation 7 Kalmar straddles.Therefore it is our view that there is no need to further increase capacity to accommodate a third stevedore.” Support for the existing players has come from a perhaps unlikely source, the Maritime Union of Australia (MUA), which labelled the decision to introduce a third stevedoring company at Port Botany as “misguided.” “Introducing a third operator at the port is a big mistake that will undo the gains made in waterfront efficiency and labour relations in recent years,” said Warren Smith, MUA assistant Sydney Branch secretary. “It will lead to uncertainty and casualisation of the workforce. It will also mean stevedoring operators will be un- …AICTL pushes forward Australian International Container Terminals Ltd (AICTL), the joint venture between Anglo Ports and International Container Terminal Services Inc (ICTSI), is renewing its push for terminal development rights in key Australian ports, heartened by the decision to exclude P&O Ports and Patrick from operating the third Botany terminal. AICTL’s Capt Richard Setchell - a former P&O Ports managing director – claims that stevedoring prices in Australia could fall by at least 15% if there were competition to Toll’s Patrick division and P&O Ports. While Brisbane’s Berth 11 and 12 (see p13), and the New South Wales government’s decision to rule the incumbents out of the third Port Botany terminal (PB3T), provide the clearest opportunity, Setchell is also attempting to break P&OP/DP World’s Adelaide monopoly and claims he already has carrier backing to do so. If the Port Adelaide terminal lease is to remain in P&OP’s hands, the state government will have to amend legislation, passed in the early 1990s, that ensured the facility could not be controlled by any stevedore that held more than a 25% market share in the nearest competing container ports, Fremantle and Melbourne. This effectively excluded P&OP and Patrick and meant the Adelaide terminal has since been operated by Sea-Land Australia Terminals (later CSX World Terminals) and, through acquisition, DP World. But the latter’s purchase of P&OP has created a theoretical breach. While the South Australian government and DP World appear to have reached informal agreement to drop the restrictive clause - based on a substantial though not publicly detailed reinvestment commitment - Setchell is challenging the position. “AICTL will respect the Minister’s decision on the matter, but in the meantime we are building a compelling case to the government that might clear the way for us to offer an alternative in Adelaide in partnership with major shipping lines, in the place of DP World,” he said. Setchell also described the Queensland government’s decision to seek expressions of interest for a third stevedore in Brisbane as “highly significant” although the Port of Brisbane Corporation has subsequently made willing to invest in new and improved technology that would make our ports more efficient.” Smith said the current two operators in Sydney were the direct result of too much competition in the past putting some stevedores out of business - there were once seven stevedores in Sydney.Yet there had been no increase in stevedoring costs per unit in recent years. “A third operator on the Sydney waterfront will see costly infrastructure greatly underutilised. The high cost of underutilised stevedoring machinery and equipment will have to be borne either by the end user or by an attack on the working conditions of port workers,” he said. it clear that Patrick and P&OP are not excluded.“The Beattie government has sent a resounding signal to the world that it supports trade efficiency, port competition and stevedoring selection transparency,” Setchell said. “AICTL is on the front foot with comprehensive plans to invest in Queensland and other global bidders will undoubtedly charge forward and start working on plans of their own. Setchell said he was equally heartened by signals from the NSW government to create a level playing field for new entrants. “AICTL’s financial and logistical modelling for Port Botany puts us in the box seat to strike at the seemingly inevitable opportunity to operate from Sydney.The New South Wales government also knows that there will be global interest in investing at Port Botany if the opportunity to bid as a third stevedore is provided.” 9 Section 3 11/9/06 1:59 pm Page 10 WorldCargo news PORT NEWS Big three vying for Gwadar... The world’s three largest port operators - Hutchison Port Holdings (HPH), PSA International and DP World (DPW) - have submitted expressions of interest to operate Pakistan’s new Gwadar port. Pakistan President Pervez Musharraf was due to open the US$300M first phase of Gwadar in June, but the ceremony was cancelled for lack of an acceptable approach road. That problem has been rectified and the facility is now expected to open next month. The successful operator is likely to be named before or at the official opening ceremony and industry insiders believe HPH and DPW are neck-andneck in the competition, with PSA a step behind. The first phase of Gwadar has three multi-purpose berths with a quay length of 602m, a 100m service berth and a 4.35 km navigation channel. HPH already has a proven record in Pakistan as it operates the Karachi International Con- tainer Terminal, which it acquired as part of the package of ports bought from Philippines terminal operator International Container Ter minal Services Inc (ICTSI). DPW has staked its claim, however, by having some of its senior officials make high-profile visits to Gwadar and other port facilities in the last few months. One such trip in May included a meeting between DPW chairman Sultan Ahmed bin Sulayem and President Musharraf. DPW has ...DPW to invest in Port Qasim DP World has announced that it is to invest US$211M to build a second container terminal at Pakistan’s Port Qasim. The project, representing the largest foreign direct investment in Pakistan’s port sector to date, will be completed in three phases on a build-operate-transfer (BOT) basis.The three-berth terminal will have an annual handling capacity of 1.15M TEU, expanding the port’s total capacity to 1.75M TEU. As part of the agreement, DPW is also investing US$100M in Port Qasim’s first two-berth container terminal. The shareholding structure of the two terminals has not been revealed but DPW has also undertaken to invest US$60-100M to dredge the 45 km navigation channel. APMT buys into Nansha terminal APM Terminals (APMT) has expanded its footprint in China by taking a 20% stake in a joint venture that is building a 6-berth container terminal at Nansha in the Pearl River Delta. When the joint venture, Guangzhou South China Oceangate Container Terminal Co (GSCOCT), was set up last December, Hong Kong-based Cosco Pacific took a 59% stake and state-run Guangzhou Port Group 41%. Cosco Pacific has now signed an agreement to sell a 33.9% stake in subsidiary Cosco also boosted its profile in Pakistan by announcing a major investment in Port Qasim (see below). Gwadar, in Baluchistan province, will initially compete with Salalah in Oman and the Iranian port of Chah Bahar, but is expected to become one of the busiest in the region when its US$875M second phase is completed in 2010. Gwadar will be one of the few regional ports to provide comprehensive warehousing, transhipment and logistics services, while being a gateway to the Central Asian republics, the Gulf states, China and India. Observers said that DPW’s move will make the company a frontrunner to get the contract to operate and manage the container terminal at Gwadar, which is due to open next month (see above). Meanwhile, the two container terminals at the Port of Karachi Pakistan International Container Terminal (PICT) and Karachi International Container Terminal (KICT) - have firmed up expan- sion plans to cope with rapidly growing volumes. The two-berth PICT, the only Pakistani majority-owned container terminal in Pakistan, will expand annual capacity from 350,000 TEU to 550,000 TEU.In the year ended March 2006, PICT’s throughput rose 63% to more than 300,000 TEU. The two-berth KICT, controlled by Hutchison Port Holdings, saw volumes top 450,000 TEU last year against a designed capacity of 500,000 TEU. Ports Nansha to APMT, giving the latter an effective 20% stake in the terminal. The joint venture will also operate and manage the Guangzhou Nansha Port Phase II terminal, whose first two berths will become operational this year and all six by the end of 2007. Built at a cost of more than Yuan4B (US$500M), the terminal, spread over 2.73M m2, will have an annual handling capacity of 4.2M TEU. Its 2100m quay will have a depth alongside of 14.5m, which can be dredged to 17m to accommodate bigger ships of the future. APMT is already a partner of Cosco Pacific at several container terminals at China’s major ports, including Shenzhen, Qingdao and Dalian. APMT affiliate Maersk Line, the world’s largest shipping company, started calling at Phase I of Nansha, which has four berths and also handles bulk cargo, last year. Nansha handled 1.08M TEU last year.Throughput is expected to top 2M TEU this year. 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Fraser Surrey operates a sixberth container and general cargo terminal on the Fraser River that has always been constrained by an 11.4m water depth. However, in recent years the Fraser River Port Author ity and Fraser Surrey Docks have invested considerably in container facilities and last year the terminal handled a record 370,000TEU. After Hapag-Lloyd purchased CP Ships it moved its calls to other Vancouver terminals and Fraser Surrey reportedly lost around two thirds of its container business. It is now the third container terminal on the market in the Vancouver area, after OOIL earlier announced it was seeking bids for TSI’s assets, including the Deltaport and Vanterm terminals. This latest development comes shortly after Ottawa and the Province of British Columbia said they were considering the creation of a new, larger port authority for BC’s Lower Mainland that would merge the Vancouver, Fraser River and North Fraser Port Authorities (see WorldCargo News July 2006, p12). Sunny outlook at Oi Mitsui OSK Lines (MOL) subsidiary Tokyo International Container Terminal (TICT) is to introduce a solar power generation system at its Oi container terminal. Positioning it as a model “eco terminal,” the solar power system will be introduced at berths 3 and 4, which are leased by MOL from the Tokyo Port Terminal Corp and operated by TICT. Installation work will start in October for completion in January and the system will become operational in April 2007. The work involves installing 1200 solar panels covering 1,634 m2 on the rooftops of Berth 4’s gate and car washing buildings. They are expected to generate 185,000 kw/h of power annually, or around 20% of the electricity consumed at the terminal’s administration office. This will be the first large-scale solar power system installed at a container terminal in Japan, and will have the highest capacity of any private solar power system in Tokyo. Introducing the photovoltaic power generation system will enable MOL and TICT to reduce the consumption of crude oil needed for power generation by about 45,000 litres annually. They will also be able to reduce annual emissions of carbon dioxide by about 128t - the amount that a 36 hectare forest can absorb in a year. The system will be installed as part of the field test project programmes on new photovoltaic power generation technology, implemented by the New Energy & Industrial Technology Development Organisation. 8-52 to. Cable, wire and fibre-optic cable repair & assembly Are your cable costs out of control? Fraser Surrey Docks put on the market used container forklift trucks and terminal equipment Forklift trucks, reachstackers and terminal equipment Cap. Type Year Liftheight Cap. Type 10 t. 12 t. 12 t. 12 t. 13,6 t. 15 t. 16 t. 16 t. 16 t. 16 t. 18 t. 18 t. 25 t. 25 t. 45 t. 90 99 99 97 97 02 96 05 03 87 95 97 97 99 94 4000 mm 5500 mm 5000 mm 9000 mm 5000 mm 4000 mm 4000 mm 4000 mm 4500 mm 5500 mm 3000 mm 6000 mm 4000 mm 5000 mm 7000 mm Reachstackers 10 t. SMV SC108TA6 10 t. Kalmar DRD100-52S6 41 t. Linde C4130TL5 42 t. Linde C4230TL5 45 t. CVS/Ferrari 178H1 Terminal tractors 17 t. Mafi MTL17 swapbodymover 25 t. Mafi MT25 4x2 25 t. Terberg RT20 4x4 30 t. Mafi MT30R 4x4 32 t. Sisu TR181 4x4 34 t. Terberg YT220 4x2 34 t. Terberg TT222 4x2 36 t. Mafi MT36R 4x4 Svetruck 1060-28 Svetruck 1260-30 SMV SL12-1200A SMV SL12-600 SMV SL13,6-600 Svetruck 15120-35 Svetruck 16120-38 Kalmar DCE160-12 Svetruck 16120-38 Svetruck 16120-38 SMV SL18-1200A Svetruck 18120-36 full free lift Svetruck 25120-45 SMV SL25-1200A Svetruck 45120-57 N.C.NIELSEN A/S · DK-7860 BALLING · DENMARK TEL. +45 99 83 83 83 · FAX +45 97 56 46 24 w w w. n c - n i e l s e n . d k · l i n d e @ n c - n i e l s e n . d k Year Liftheight 03 00 96 02 94 15800 mm 16200 mm 15900 mm 15900 mm 14700 mm 97 98 94 98 98 01 02 97 630 mm 1000 mm 1000 mm 1000 mm 1000 mm 1000 mm 1000 mm 1000 mm ncnielsen August 2006 11/9/06 11:20 am Page 11 quayside container cranes rubber-tyred gantry cranes bulk cargo machines large-size steel structures heavy-duty ocean equipment port machinery components ZPMC News Update The World-Innovative RTG with City Electric Supply Network Port machinery components Section 3 On May 24, 2006, ZPMC completed construction for China Merchants Port Services Shenzhen Co., Ltd. of the world’s most innovative RTG. This latest type of RTG runs off the city electrical supply network which means that as well as fulfilling its function of transferring containers efficiently and effectively, it also saves energy and helps to protect the environment. With the current high oil prices, it is the best choice of RTG for a container terminal. It has the following technical features and measures: 1. The low voltage city electrical supply network (690V) is used and then transformed into 380V transferring to the RTG to drive the AC frequency conversion motors. 2. When transferring containers, the power cable can be pulled up, and the small diesel engine on the RTG can drive the gantry, which can turn 90 degrees just the same as a normal RTG and travel to any container stacking yard. 3. The power supply system is composed of the power cable socket, cable reel, and control devices. When the RTG is gantrying along its own yard area, the power cable can be automatically pulled up and taken off. At present, before transferring containers, manual operation is required (currently the remote operation of socket removal by operators is being developed). 4. The current diesel engine with power of up to 500KW can be replaced on the RTG by a small diesel engine of 80–100KW (when the RTG is transferring containers at low gantry speeds, no great power is needed). The original auxiliary big oil tank and energy consumption resistor will also be adjusted accordingly. 5. The length of power supply cable depends on the length of the yard. The RTG can be powered in the middle of the yard. For long yards, the power supply socket can be pulled and changed (just like a normal portal crane) in order to avoid the big voltage drop produced by the low cable. 6. A potential energy panel which feedsback the city power supply network is added. ZPMC has applied for the patent for this innovative city electrical supply network powered RTG in China, Japan, USA, Europe and South-East Asian countries. Section 3 1/9/06 10:29 am Page 12 WorldCargo news PORT NEWS Dragados secures L&T mulls options Sprague gets a Rubb Texan port deal The Port of Corpus Christi has signed a Memorandum of Understanding with Spain-based port operator Dragados-SPL for its planned La Quinta Trade Gateway Container Terminal. The MOU follows an announcement last year that Dragados had been granted six months’ exclusivity to examine the La Quinta development file with a view to arriving at this outcome (see WorldCargo News December 2005, p11). A definitive agreement for the construction and long-term concession agreement for the operation of the facility is still being negotiated, but the port says that the MoU commits it to invest around US$83M in the project from a var iety of potential sources. “For the last several months we have conducted our due diligence in determining the viability of the project and in crafting a financial model that satisfies both parties,” said Dragados-SPL’s CEO Juan Carlos Pery. “We have concluded that the project is viable and look forward to formalising a lasting partnership with the port. Last year Dragados-SPL, part of Spain’s ACS construction-toconcessions conglomerate, had a turnover of €532M, mostly derived from container and general cargo handling activities in Spanish ports. The company already has port interests outside Spain and is looking to extend them further in the Americas. If a deal is reached, the port will extend the La Quinta ship channel, design and build the phase 1 and 2 wharves and provide utilities and road access from US Highway 181. Dragados-SPL will also have an exclusive option over phase 3 of the project. The concession would be of 50 years’ duration. Indian constr uction g iant Larsen & Toubro (L&T), which is bidding for the right to build and operate the second container terminal at Chennai and the offshore container terminal at Mumbai in partnership with Hutchison Por t Holdings (HPH), has indicated that it will change its foreign partner if HPH fails to obtain security clearance from the Indian government. Shipping Ministry officials said the company has provisionally tied up with ICTSI of the Philippines as an alternative partner for the Mumbai bid. “L&T has not dropped Hutchison as its consortium partner,” a Shipping Ministry spokesman told Business Line newspaper.“But in the unlikely event of Hutchison not getting security clearance, L&T has informed us that it would like to bring ICTSI on board as an alternative management contractor to bid for the offshore box terminal project in Mumbai.” The Port of Mumbai is still waiting to call for financial and technical bids for the proposed offshore ter minal, while Chennai has already received financial bids from three bidders but has not yet opened them. The decision to give or withhold HPH’s security clearance is pending with the country’s national security advisor. But other port operators in the fray for the two projects have complained that the delay is costing them money as they have to frequently revise financial numbers. Mumbai has postponed calling of financial bids at least nine times. Chennai Port has said it is hopeful the matter will be resolved soon because it wants to hand over the letter of intent to the winner by December. The new Chennai terminal is expected to cost Rs5B (US$107M) and the Mumbai terminal twice that amount. Located alongside Portland, Maine’s waterfront, Sprague Energy’s new temperature-controlled warehouse at the Merrill Marine Terminal is the “crown jewel” and seventh Rubb structure at this port facility. Aimed primarily atconditioning high quality newsprint, the building covers 54,000 ft2 (5000 m2). In addition to an array of doors, dock seals, dock levelers, rail canopies, and 60ft candle lighting system, the 170ft x 320ft Rubb, BVE range structure utilises a sophisticated air turnover and environmental control system. Designed and integrated by Protec, Inc of North Hampton, NH, the system’s capabilities include a 2M BTU heater Sprague’s new temperature-controlled Rubb building in Portland system working with a dehumidification system that delivers 4500ft3 (127m3) of dry air per minute. The system’s overall function is to heat the building automatically as required, to maintain the interior environment with no condensation on stored product or building surfaces year round, and also to control CO levels when vehicles operate within the structure. Rubb has enjoyed almost a 25-year business relationship with Merrill. The company partnered Sprague Energy and project manager Paul Merrill to bring the facility on line. All quiet in Napier Request for proposals for the management and the use of a cereal terminal owned by the Port of Marseilles Authority located in Port Saint Louis du Rhône (Design, Basin 3-site des Tellines)- FRANCE production and assembly of a gangway tower on FOS oil harbor terminal (France). Service Category : 27 CPV :Main Object : 63312000. The project consists of the design, production and delivery of an access equipment used to give personal Official name and address of the purchasing corporation: Port of Marseilles Authority and crew access to ship (crude to 300Authority 000 dwt) and shore (petro-chemical plant). It could be Person in charge of the project: The Director Generaloil of vessel the Port ofup Marseilles 23 Placeeither de la Joliette BP on 81965 13226 Marseille 2 - FRANCE based a column or onCedex a tower construction with elevator system and/or telescopic(s) gangway(s) Tel: +33 (0)4-91-39-41-39 ; Fax: +33(0)4-91-39-40-33 with self-leveling steps. It must be fully automatic (hydraulic) to accommodate ship or tidal movements Buyer Profile's email: http://[email protected] during operations. Explosion proof installation required (Ex). Supervision of assembly on site in France Location of the Accomplishment : Cereal Terminal 13230 Port Saint Louis-du-Rhone - FRANCE required. NUTS Code : FR824 Total assembly on site optional. General specifications: The PortCandidature of Marseilles Authority would like to entrust the management the usein of aEnglish cereal terminal located in Portmust Saint Louis du Rhônein– French France. in and commercial proposal can beand written or French but be written The current notice concerns the availabity of work, equipment and central divider strip allowing the construction of a cereal terminal for the loading and unloading of final offer (contract in French). bulks ships. This zone measures approximatly 3 hectares ,contains central divider strips, railtracks, warehouse with loading platforms for lorries, bands carriers and 3 quays sets. The leasing out of the terminal will be governed by a Terminal Operation Agreement extending over a period of 12 years starting from the date of its signature. Technical criteria: The candidate must have significant reference works in the design and production of gangway access The Contract is not covered by the procurement contract agreement (P.C.A). equipment. The following evidence of the supplier’s technical capacity must be provided: Work divided into lots: no. Refusal of variation. Bail bond and guarantees required : on first request must be provided by the successful applicant under the conditions stated in article 3.3 of the requirements. Languages that can be used in the bid or in the candidacy : french. A brief company profile Monetary unit: Euros • • A list of the principal reference works effected in the past 5 years with: Conditions to participate: Candidacy selection criteria:professional references. o sums Professional references and technical ability - required references :the applicants must provide proof of an experience in the management and the running of large size cereal terminalsorelated to ports worldwide. dates Criteria for awarding contract: o delay The most economically advantageous tender according to the criterias stated in the requirements (specifications,consultation procedures,invitation letter). o Type of procedure : Other. type of equipment (tower, column, etc) of 4:00 shippm. designed Closing Date for bidso : Septembertype 28th ,at for (deadweight, height of deck, etc) • A general description of the products to be offered • informations Complementary : the procedure implemented is the request of proposal one: it is not subject to the Public Procurement Code.The publication in the Additional Information: A description of the supplier’s technical facilities Contract reference number allocated by the public legal body : 200607031B EUOJ does not mean that it is subject to Community procedures. Language(s) in which tenders or requests to participate may be drawn up: English, French. Conditions and payment terms to obtain the contractual and additional documents: the tender enquiry can be obtained free of charge by return of post,by submitting a demand by fax to Ms Arfi (+ 33(0)4.91.39.40.33 ) 1. Date limit to submit candidate: 14 March 2006, at 16:00. Sealed tender opening procedures : Authorized persons to take part in the opening of the tenders : the opening of the tenders is not public. 2. to Contracting Procedures submit bids or Authority: applications: Port Autonome de Marseille, Le Directeur Général, 23 Place de la Joliette, The bidsB.P. can be81965, sent by registered with acknowledgment of receipt at the following address : 13226 post Marseille Cedex 02, France Port Autonome de Marseille Service achats/pole marchés 23,PlaceFor de lafurther Joliette information or to retrieve the documents concerning this tender (free of charge), please send BP 81965 your request to Fax: 00 33 491 394 033 or download at https://www.local-trust.com/marseille-port/. 13226 Marseille Cedex 02 - France Or delivered to the addressee in person with acknowledgment of receipt: To the service Achats/Pole Marchés c/omay MS Arfi Technical information be obtained from Mr Fabien MEUNIER, Tel: 00 33 (0) 442 406 304, 23,Place de la Joliette Ground Fax: Floor 00 33 (0) 491 406 300, Email: [email protected]. 13002 Marseille - France. Where technical information can also be obtained: PMA/DOTMF - Merchandises Secretariate Terminals,Fos. Information on procedure may be obtained from Mr Mark LAZZARETTO, Tel: 0 33 (0) 491 394 978, Contact person: M. Emile Rodriguez, bât. A Bp.10, 13771 Fos Cedex 00 33 (0) 491 394 978, Email: [email protected]. tél : +33Fax: (0)4-42-48-66-62 ; Fax : +33(0)4-42-48-66-00 Where Administrative Information can also be obtained: PMA/ Purchasing Department-Contracts. Contact Person: Marianne Berbon, tél +33(0)4-91-39-41-39,fax :+33(0)4-9-39-40-33 Email: [email protected] All post (offers, candidatures, requests...) is to be addressed to: Port Autonome de Marseille, Court ofService CompetentAchats jurisdiction Tribunal Administratifc/o de Marseille 22 Rue de Breteuil Marseille 6, France B.P. . Tel :+33(0)4-91-13-48-13 ; fax : +33(0)4/ :Pôle Marchés, Ms Jacqueline ARFI,,13281 23 place deCedex la Joliette, 81965, 91-81-13-87 13226 Marseille Cedex 02, France Precisions regarding the time within which an action must be brought: 2 months. Products Classification : Auxiliary Transport Service. 12 The Port of Napier in New Zealand is facing significant costs to insulate neighbouring properties against operational noise after the Napier City Council adopted new noise management rules specifically for port noise. Several NZ ports have had to address the noise issue recently, particularly after P&ON began calling with its new 4100TEU ships, which are much louder than those they replaced. The port engaged an acoustic consultant and negotiated with residents to reach agreement on noise limits and the number of vessel calls that trigger mitigation measures. If the port handles more than 10 vessels over 4000TEU in any 6 month period, which it currently does, a 68dBA noise limit from operational activity applies. This limit defines a new “inner noise level” and the port will have to meet the entire cost of retrofitting sound insulation to the walls and celings and fitting double glazed windows to any house within it or, alternatively, negotiate to purchase the property. Building new houses in the area will still be allowed, but they must be sound insulated to the same standard. Residents subject to noise between 65 and 68dBA will have 60% of the insulation costs met by the port. The Council decided to not to include the port’s container repair business under the new rules and deal with it under already existing industrial noise provisions. All parties are reported to be satisfied with the outcome, which is similar to what the Environment Court ordered for Port Chalmers in 2004. Colombia considers port concessions The government of Colombia is considering requests from operators of the ports of Santa Marta, Barranquilla and Buenaventura to extend their operating concessions for 20-30 years The three operators - Sociedad Portuaria de Santa Marta (SPSM), Sociedad Portuaria Regional de Bar ranquilla (SPRB) and Sociedad Portuaria Regional de Buenaventura (SPRBun) - were granted 20-year concession contracts in 1993, and have been lobbying since last year for extensions beyond 2013. They argue that changes to the concessions are needed ahead of the likely free trade agreement with the US. With disagreements between the Transport Ministry and the concessionaires over the taxes they pay largely resolved, the way has been cleared for direct negotiations on the concession contracts, according to SPRB president Fernando Arteta “Talks are going ahead on that issue between the Transport Minister and an inter-ministerial committee,” a source at the national concessions institute (Inco) confirmed. All three operators have outlined major investments to improve the port facilities but because of the delay in talks on the contract extensions, the plans have been put on hold. SPSM has drawn up a US$35M investment plan to install new cranes and to enlarge container yards, as well as for new equipment and facilities to handle larger numbers of refrigerated containers. In its request to extend its own concession until 2033, SPRBun has outlined investments amounting to US$115M for the construction of a new dock, dredging, purchase of new equipment and other works at Buenaventura. A plan to invest US$28M to dredge the shipping and access channels at Barranquilla is also being held up. August 2006 Section 4 1/9/06 2:45 pm Page 13 WorldCargo news PORT NEWS Three more berths for Brisbane The Port of Brisbane Corporation (PBC) has announced that it is to build two more container berths and a new general cargo facility at Fisherman Islands. Requests for Proposals are being sought from suitably qualified proponents to operate and manage container Berths 11 and 12 at Fisherman Islands, with respondents invited to bid for either Berth 11 and approximately 14 hectares of adjacent terminal land alone, or that plus put and call options for the licensing of Berth 12 with approximately 12.4 hectares of adjacent land. “Based on current container trade growth, capacity forecasts and operational performance benchmarks, we have identified the need for the new berths and their associated terminals to be operational by 2011 and 2013 respectively,” PBC CEO Jeff Coleman said.“Construction of Berth 11 is planned to begin in November 2008, with Berth 12 to begin soon after.” Berth 10, also a dedicated container wharf, is already under construction and is scheduled for completion early in 2008, while Berth 9 was only completed in the last 12 months. The A$202.5M new container berth project will increase Brisbane’s container handling capacity by 25% and take the number of dedicated container wharves at the port to nine. Coleman said Brisbane had become Australia’s fastest-growing container port (in percentage terms), with compound container trade growth in excess of 11% per annum over the past five years. This trend is expected to continue as the population of South East Queensland the port’s primary catchment - continues to grow. “We are now offering a valuable opportunity in the Australian market, not only for stevedoring operations, but also potentially for integrated logistics activities, such as container parks and warehousing, on close-to-terminal sites,” Coleman said. Earlier the PBC announced it would construct a new general purpose berth at the opposite end of Fisherman Islands as it continues the evacuation of the upriver Hamilton and Maritime wharves. Work is already underway on the new facility, adjacent to the port’s coal berth. It will be used principally for bulk and break bulk cargoes but will also have the capacity to handle motor vehicles and project cargoes when required. PBC will spend A$46M (US$35M) on the new wharf and associated infrastructure, which is planned to incorporate a general purpose terminal, 2 hectares of heavy-duty pavement, a 3,200 m2 cargo shed, and an office and amenities building. The Corporation will soon be seeking expressions of interest for an operator for the new berth, which is due for completion in early 2008. Richmond plans box port A dramatic surge in US West Coast shipping trade has prompted the northern Californian port of Richmond to consider an undeveloped stretch of marshland for the development of a new container port. The site is on around 500 acres of marshland just north of the Chevron refinery. If it goes ahead, the proposed facility would require an estimated US$5B in private and public investment including over US$1B for a major dredging programme to create a turning basin and provide sufficient depth to allow large containerships to call. Richmond officials say the marshlands around the mouth of Wildcat Creek, on the northern shoreline, are an almost ideal location for a port because of available land, two existing railways and easy access to major freeways. The port is negotiating with Moffat and Nichol Engineers to conduct a feasibility study covering site characteristics, environmental obstacles and potential financial benefits. The Richmond city council is to consider approving the study in September. If the port is developed, JP Morgan Chase would probably take the lead in putting together the investment group for the project. Luba project under way Jurong Primewide, a subsidiary of Jurong International of Singapore, which is a sister company of Singapore port operator Jurong Port, has won a US$70M contract from Lonrho Africa to plan and design the expansion of the deepwater Luba Freeport in Equatorial Guinea. Lonrho, which holds 63% stake in the port, is positioning Luba to become the regional supply base for the burgeoning oil and gas industry both within the country and in the surrounding Gulf of Guinea as well as the greater West Africa region. By extending the current jetty out into the harbour to increase the water depth from 10 to 18m Lonrho wants to entice lines to use Luba as a transhipment hub. “We are keen to start on this project because going forward we see the potential of Equatorial Guinea growing into a major hub in petrochemical-related areas,” Jurong International president and chief executive Tang Tat Kwong said. Lonrho said Jurong Primewide is tasked with providing the master design and planning for a “substantial expansion of infrastructure and facilities.” This includes long-term development plans for the expansion as well as a shortterm expansion feasibility study for immediate implementation. Work has already begun on the feasibility study with the entire design process expected to take about four months, after which Jurong International will negotiate the Engineering, Planning and Construction (EPC) contract. Luba Freeport, which is already home to oil services companies such as Schlumberger, ExxonMobile, Noble Energy, Marathon, Chevron Texaco, Petronas and Baker Hughes, closely mirrors Singapore’s Loyang Offshore Supply Base, said Tang. “Luba Freeport is being established as a ‘one stop shop’ for oil logistics in one of the fastest growing oil-producing areas in the world,” said David Lenigas, Lonrho Africa’s joint chairman and CEO. ● Jurong Port suffered another fall in container throughput in July when box volumes dropped by 14.8%. Cumulative throughput over the first seven months has now fallen 8.38% to 481,000 TEU. The port declined to comment on the decline and is still gearing up to increase its annual capacity to 1.8M TEU by the end of the year when five new quay cranes are scheduled to arrive. August 2006 13 Section 4 7/9/06 5:50 pm Page 14 Cavotec in action. As care of the environment, and subsequent social issues arising from pollution, become ever more important to companies around the world, we are continuously expanding our knowledge and expertise on the subject. Minimal pollution. Maximum efficiency. This focus has led, amongst other achievements, to us becoming a main supplier of alternative maritime power (AMP) supply systems to ports and ship owners around the world. By allowing ships to disengage their engines when in port, local pollution levels drop dramatically. The success of these systems is measured by an ever increasing flow of interest from the market and society itself. After 30 years of leadership in our industries, we understand that our customers require solutions that help to reduce their environmental impact without also reducing their bottom line. This approach will better ensure a cleaner and safer global environment for future generations and make the world a more pleasant place to live in today. For more information, please email us at [email protected] or visit our website www.cavotec.com IN ACTION 36 Section 4 1/9/06 11:25 am Page 15 WorldCargo news PORT NEWS HPH wins Manta... Hutchison Port Holdings (HPH) has been granted a 30 year concession to develop and operate the Port of Manta, Ecuador. The government of Ecuador had already reviewed and approved HPH’s US$523M investment proposal, submitted last February, but decided to launch a tender process to allow the participation of other parties wishing to bid for the concession. Despite a number of port operators expressing interest, however, none opted to submit a bid and HPH was awarded the concession. HPH could face competition, however, from a deepwater container port project submitted for national merchant marine board (CNMM) approval early this month by Spanish firm Alianza Internacional Portuaria (Alinport). Alinport has proposed a US$450M project to build a deepwater container transhipment terminal in Posorja near the Port of Guayquil. The company is planning to invest US$250M in the terminal and is currently seeking a partner to help finance construction. Sepangar early next year Mixed bag for Rotterdam The new Sepangar Bay container terminal at Kota Kinabalu, being developed by Sabah Port Sdn Bhd, part of Suria Capital Holdings Bhd, at a cost of RM322.42M, is expected to be fully commissioned by early next year, according to a recent statement by Suria’s chairman Tan Sri Ibrahim Menudin.The facility, being equipped with [mobile harbour] cranes, has two berths suitable for vessels up to 2500 TEU and occupies 15 hectares. Capacity is put at 150,000 TEU/year. Sepanagar Bay will be the seventh port facility owned by Suria in Sabah, joining Sandakan, Kota Kinabalu, Kudak, Kunak, Lahat Datu and Sapoorna. Suria is expected to invest more than RM1B to upgrade facilities and expand capacity, with the top priority being palm oil. Sabah is Malaysia’s largest producer of palm oil and new jetties are under construction in Lahat Datu, Kunak and Sandakan. Sabah’s ports have been transformed since 2001 when the then Sabah Ports Authority was absorbed into Suria. Suria had been forced out of general banking after a national exercise to limit the number of banks and needed to find a new business in order not to be delisted from the Kuala Lumpur stock exchange. The Port of Rotterdam has posted its firsthalf 2006 cargo throughput figures. General cargo traffic rose by 1 Mt (+2%) to 55 Mt, with incoming and outgoing trade in containers up by 1%. In weight, throughput increased by 500,000t to 46 Mt and, in unit terms, by 2% to 4.7M TEU (+91,000 TEU). The increase is below average, mainly as a result of the competition from Amsterdam and Antwerp. Serious computer problems at ECT meant a further loss of circa 50,000 TEU. The increase in scale in container shipping is illustrated by calls from extremely large ships, notes the port. In the first half of 2005, 30 calls were made by ships in excess of 8000 TEU, as opposed to 119 in the past six months. Nineteen of these ships were larger than 9000 TEU. Ro-ro traffic remained more or less constant at 4.9 Mt.Virtually all shipping companies are seeing an increase in the number of containers on roll trailers or cassettes, at the expense of trailers, and most companies are expanding capacity. In the second half of the year, a substantial increase in Rotterdam’s ferry throughput is expected. More and more fruit is being transported by container but, thanks to the influx of bananas, conventional throughput in reefer ships is also receiving a boost this year. The total quantity of dry bulk fell 1% to 44 Mt. Gearmotors \ Industrial Gear Units \ Drive Electronics \ Drive Automation \ Services ...Sohar on the blocks The first berth of HPH’s container terminal at the Omani Port of Sohar will become operational next month.Terminal B was built and will be operated by Oman International Container Terminal (OICT), in which HPH, the Government of Oman, Steinweg of the Netherlands and other Omani investors are shareholders. Phase 1 facilities include 270m of quay with a depth alongside of 16m and 9 hectares of container yard area. Phase 2, to be completed in February 2007, will see the quay extended to 520m and the stacking area to 26 hectares, giving the terminal an annual handling capacity of 800,000 TEU. Equipment will include four postPanamax quay cranes, eight RTGs and two reach stackers, supported by a fleet of 15 tractors and 33 trailers. The RTGs stack containers one-over-six and feature advanced global positioning systems to track the exact location of the boxes in the yard. HPH’s proprietary anti-truck lifting system (ATLS) has been adapted to each crane as an additional safety and performance-enhancing feature. The next phase of development will include an additional quay of 970m with 18m depth alongside to accommodate the latest generation of container vessels. Johor Port gets more Malaysia’s Johor Port has taken delivery of a new ship-to-shore crane and three more RTGs, all from Mitsubishi Heavy Industries (MHI), to cope with growing volumes of container traffic. Johor’s container terminal is equipped with seven gantry cranes, five ofwhich are post-Panamax, 20 RTGs, four reach stackers and 46 prime movers. The terminal, which has three 253mlong berths with draft of 15m, handled 413,779 TEU in the first half of this year and the full-year figure is expected to hit 900,000 TEU. The port’s multipurpose terminal handled 8 Mt in the first half of this year, 62% of which was liquid bulk and the remainder dry bulk (2.1 Mt) and break bulk (928,000t). To cope with the rising container traffic, operator Johor Port Bhd is also enhancing ICT systems and applications. Bulk and break bulk users are also expected to benefit from a new multi-purpose terminal system to be launched later this year, which will manage non-containerised cargo handling operations. August 2006 Sometimes size does matter. When it comes to really great movements, we do not have to hide our accomplishments: SEW-EURODRIVE has long been a leading manufacturer of industrial gear units with high torques – and we will not stop there. It has never been easier to operate our industrial gear units that are now available for an even wider variety of applications. Even though they are manufactured in series, their modular design makes them easily adaptable to meet the most challenging operating conditions. We call this concept “customized series production”. We have also continued expanding our sales network and 24-hour service hotline to give you even faster access to our products and services. But there is one thing that will never change: SEW-EURODRIVE is where superior performance meets quality and toughness. SEW-EURODRIVE—Driving the world 1931 – 2006 SEW-EURODRIVE SEW-EURODRIVE GmbH & Co KG P.O.Box 30 23 · D-76642 Bruchsal/Germany Phone +49 7251 75-0 Fax +49 7251 75-1970 j www.sew-eurodrive.de 15 Section 4 8/9/06 3:40 pm Page 16 WorldCargo news INLAND/INTERMODAL NEWS New Germany-Hungary link Toll flexes market muscle As briefly reported in the May 2006 issue of WorldCargo News (p9), inter modal operator boxXpress, which is linked to Eurogate, has started a new block train service between Hamburg/ Bremerhaven and Budapest. The 90 TEU train, operated under the name boxXpress.hu, departs twice/week from Hamburg and Bremerhaven direct to Budapest through Austria and increases the number of intermodal rail services offered by Eurogate group between the German seaports and Hungary to eight. Southbound, transit time is put at 22 hours. On the northbound leg it stops at Munich/Reim to pick up additional containers The train is perated with boxXpress’s own wagons and modern Siemens Dispoloc engines. Last year the intermodal services of Eurogate group and its partners moved a total of 1.75M TEU by block train and feeder services. In Germany they handled 224,968 TEU, up 4,6% on the figure for 2004. Eurogate is also a The new service links Hamburg/Bremerhaven and Budapest twice a week shareholder in Mediterranean/ Black Sea feeder operator UFS, which transported 1.24M TEU in 2005 (down by 14.5% on 2004). Eurogate recently pulled out of Swan Container Lines, leaving this Hamburg-Saint Petersburg feeder line entirely in the hands of the Döhle group. However, with the new Jadeport, concession in Wilhelmshaven in mind, as well as its stake in the Ust-Luga container terminal project, Eurogate plans to re-enter the Russian feeder market. ● The four pairs/week intermodal rail shuttle service operated by Hupac between Duisburg and Vienna has been extended to Budapest. The service now operates between Duisburg Intermodal Terminal, WienCont and the BILK terminal in Budapest. ● Starting in October, a new, direct intermodal train service will operate between Antwerp Gateway and Cologne. The service is an initiative of DP World, CTS and Shipit. In the first phase, the 80 TEU shuttle will operate on a three pairs/ week basis, with traction from Dillen and Le Jeune Cargo. After completing the takeovers of Patrick Corporation and SembCorp Logistics, Toll Holdings is now valued at A$11B and projects net profits will more than double to A$492M. It also expects to raise at least A$1.5B from divestment of businesses, mandated by the Australian Competition and Consumer Commission (ACCC) as part of its approval of the Patrick acquisition. But industry and customer disquiet at Toll’s flexing of its market muscle has been steadily rising, with the ACCC understood to have been fielding a range of complaints about aggressive and unfair behaviour. The situation has led ACCC chairman Graeme Samuel to warn Toll it is being closely scrutinised but Samuel also urged Toll’s competitors to consolidate in order to compete. While there has been much talk of Queensland Rail leading a group of like-minded competitors such as P&O Ports, FCL, E-Chains for life. ® Discover lower drive power and noise. Proven. 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Buy in components or as a preassembled ReadyChain®. ® 2 2 3 1 ® -cranes.com igus® GmbH Spicher Str. 1a D-51147 Köln Tel. +49-22 03-96 49-0 Fax +49-22 03-96 49-222 [email protected] Please phone our offices: Austria Belgium Brazil Canada China Denmark +43-7675-40 05-0 +32-16-31 44 31 +55-11-35 31 44 87 +1-905-760 84 48 +86-21-63 86 94 30 +45-86-60 33 73 France Great-Britain India Italy Japan Mexico +33-1-49 84 04 04 +44-1604-67 72 40 +91-80-851 50 06 +39-039-59 06 1 +81-3-38 46 94 21 +52-722-271 42 73 Netherlands Poland Portugal Singapore South Africa South Korea +31-346-35 39 32 +48-22-863 57 70 +351-22-832 83 20 +65-64 87 14 11 +27-31-461 48 24 +82-32-821 29 11 Spain Sweden Switzerland Taiwan USA +34-93-647 39 50 +46-42-32 72 70 +41-62-388 97 97 +886-4-2358 1000 +1-401-438 22 00 The terms "igus", "ReadyChain", "E-Chain", "E-Chain Systems" and “Chainflex” are legally protected trademarks in the Federal Republic of Germany and in case also in foreign countries. 16 Linfox, K&S, SCT and even airline Qantas, nothing has yet emerged, although the sale of FCL (previously committed to Patrick for A$142M) to Linfox is said to be close.Samuel has made it clear that in the face of the power of Toll, other mergers are unlikely to create competitive concerns. And he has also stressed that he will not tolerate Toll divesting its businesses to friendly parties that effectively leave Toll in control, a position Toll managing director Paul Little has defiantly rejected, especially in the case of the 50% of Pacific National (PN) he is required to sell. Toll must dispose of half of PN, all of Patrick Shipping and Patrick Tasmania and certain Toll or Patrick auto logistics activities.Toll reports “significant interest” with the disposals expected to be completed by December.There are said to be over 40 parties interested in both PN and Patrick Shipping. Little says he reserves the right to sell the PN share to a financial investor – ie, leaving operational control effectively in Toll’s hands - but Samuel says he will not tolerate such a proposal. PN is also still in dispute with Queensland Rail over Brisbane’s Acacia Ridge intermodal terminal, now being run by P&OP, concerning access fees. A shortterm deal is due to expire at the end of this month, with QR determined to stand its ground on “commercially-sound” pricing, while PN asserted it could not accept price increases of 70% on a rail corridor that was “losing money every day.” PN routes 2.5 trains per week through Acacia Ridge, which is the main freight exchange point between the national standard gauge network and Queensland’s narrow gauge system. PN had threatened to withdraw its trains but QR estimates that the Acacia Ridge costs make up less than 10% of what PN charges a customer for container linehaul. Rail talks dragging on in Tasmania Despite clarification of its ownership and management, Pacific National (PN) has still not been able to reach agreement with the Tasmanian Government over the future of the island state’s freight rail system. The parties are still negotiating fine detail, 10 months after PN threatened to close the network overnight unless assistance was received. After eventually agreeing in principle in March to a tripartite rescue package advanced by the federal and state governments, PN then stalled again claiming it had to be sure its own A$38M share was in its best long-term interests. A further six-week delay occurred when new CEO Don Telford brought in a “special executive” to review PN Tasmania. Tasmanian Infrastructure Minister Jim Cox has now announced that the parties have signed an MOU that clears the way for negotiations to commence the hand back of rail assets to the state. “There is still a way to go but this MOU provides the foundation for an agreement which will trigger State and Commonwealth funding to upgrade our rail system,” Cox said. The MOU includes upgrading and capital works on railway track between Hobart and Burnie, Devonport and Bell Bay.Track to Boyer and from the HobartLaunceston line to Fingal is also included. But the A$118M package does not include funding for proposed inter modal hubs at Brighton and Bell Bay, nor for any additional infrastructure to enable Gunns Ltd to use rail to transport logs to its proposed pulp mill at Long Reach. Cox said the federal and state governments were in the early stages of developing a “corridor strategy” under the Commonwealth’s AusLink programme and hubs would be considered under that; extra infrastructure for Gunns would be “a commercial consideration.” EWS enhances Soton service EWS has begun a programme of works to enhance the number of services and deliver y of its intermodal rail operations over Southampton through EWS Network, its newly-styled intermodal and logistics arm. In a breakthrough deal with Freightliner, EWS will operate a train a day into one of the two Freightliner facilities at Southampton while its own site is expanded. Up to now EWS has not been able to buffer containers but has contracted Containerlift to move containers between its railhead and the container terminal with its sidelifters. Now it has contracted Pentalver Transport Ltd to provide container handling services, including the loading and unloading of customer containers and the collection of containers from other parts of the port.The contract includes the use of a 1.5 acre site where for the first time EWS customers will be able to store containers at the port. As if it cannot resist taking a swipe at its rival, twice in its press release EWS refers to Freightliner having spare capacity at Southampton, which it is now able to take up while infrastructure works at its own site are carried out. It is possible that Freighltiner’s spare capacity at Southampton is connected with the opening of Roadways’ new BIFT railhead in the West Midlands (see last month’s WorldCargo News, p19). EWS currently operates four round train trips/day from Southampton to Burton-on-Trent, Trafford Park, Wakefield and Widnes. Details of its plans to increase intermodal rail throughput over the port will be revealed shortly. August 2006 Section 5 7/9/06 6:08 pm Page 17 WorldCargo news INLAND/INTERMODAL/HAZCHEM NEWS Russian rail tank car market goes ballistic While the Russian oil tank car fleet has expanded strongly in recent years, and now stands at 165,000 units, it is estimated that a further 100,000 rail tank cars are required to help carry the country’s surging oil exports. The rail industry has benefited not only from the rejuvenation of Russian oil production and export volumes, but also the high costs and time lags associated with bringing alternative transport options - particularly new oil pipelines and inland waterway tankers - into service. Russia currently exports around 200 Mtpa of crude oil by pipeline, while rail tank cars are used to export some 50 Mtpa of crude and 75 Mtpa of refined products. The shipment of Siberian crude to China by rail is especially buoyant at the moment, expanding by over 40% in the space of 12 months to reach 10 Mtpa in 2005 and expected to top 15 Mtpa this year. But both Russia’s rail and pipeline infrastructures are now working at near capacity. The rail sector is not only short of tank cars, but also the entire railway system is in need of modernisation. In 2003 Russian Railways (RZD) embarked upon a 10year restructuring programme, an initiative which includes an investment of US$1.4B in improved rail links with China. The prospects for the tank car newbuild market are also boosted by the fact that the existing Russian tank car fleet is an aging one, with 30% of wagons in service having been built prior to 1973 and very few new units having been turned out during the 1990s. The strength of market demand and the promise of a quick payback have private investors queuing up to participate in the rail tank car bonanza. It is reported that the US$35,000 cost of a new rail tank car for oil products can be recouped in 3/4 years if leased to a Russian oil company. As an example, the International Finance Corporation (IFC), the private sec- tor lending arm of the World Bank Group, is providing US$15M in long-term debt to JSC Russkiy Mir and its subsidiary, JSC SFAT, for the purchase of rail tank cars to expand their fleet. Oteko, which has been formed to manage the rail tank operations of Russkiy Mir, has a fleet which now stands at 15,000 tank wagons. A high percentage of the new tank cars for Russkiy Mir is being built by Uralvagonzavod, Russia’s largest tank car manufacturer. Uralvagonzavod has been so busy with new construction work, not For suppliers of rail tank wagons to the Russian market, it is a good time to be in business least a current order from LukoilTrans for 5,000 new tank wagons to be delivered over a four-year period, that it has had to expand its manufacturing base.The company established a rail car plant in Estonia in 2003 which has an annual capacity of 3,000 tank wagons. The Baltic Republics have also benefited from the rail car boom because a number of their ports mark the end of Russian rail export lines and the point where shipments are marshalled for loading into seagoing tankers. Estonia’s rolling stock, for example, includes more than 15,000 rail tank cars, a tenfold increase since 2001. Russian oil companies are keen not only to rent this inventory but also to establish subsidiaries in Estonia in an effort to complete their rail logistics chains Experience the progress. CEFIC fine tunes safety The European Chemical industry has implemented a series of measures in recent months to further refine its extensive chemical transport safety regime. A new uniform European Cleaning Document (ECD) has been developed in cooperation with the European Federation of Tank Cleaning Organisations (EFTCO) and the European Chemical Transport Association (ECTA).The ECD, which covers tank container and road tanker cleaning operations, has been designed to facilitate and promote the use of such documents and to make them traceable in the supply chain. The Safety and Quality Assessment System (SQAS) for logistics service providers in Europe has been extended with a new module covering the operators of specialist warehouses dedicated to the handling of chemical products. In a related development, CEFIC has developed two new sets of best practice guidelines. They cover the subcontracting of chemical road transport and the security of road transport operations involving the transport of dangerous goods. Both sets of guidelines are available at www.cefic.org. Meanwhile, the Supply Chain Think Tank initiative launched by CEFIC and the European Petrochemical Association (EPCA) has issued a second report, entitled Maximising performance - the power of supply chain collaboration. It contains recommendations on a range of initiatives that companies can deploy to improve efficiencies in their supply chains. The report is available at www.cefic.org. Finally, the Council has developed “Transperanto” to overcome language barriers and improve communications with foreign truck drivers at chemical sites.Transperanto offers a set of key safetyrelated words and instructions for loading and discharge operations in 27 languages and is available at www. transperanto.org. August 2006 Liebherr-Werk Nenzing GmbH P.O. Box 10, A-6710 Nenzing / Austria Tel.: +43 5525 606-725 Fax: +43 5525 606-447 [email protected] www.liebherr.com The Group 17 Section 5 1/9/06 12:37 pm Page 18 MANTSINEN The mark of efficiency Safe Precise Economical MANTSINEN Efficient www.mantsinen.com Tel. +358 13 252 5500 Fax +358 13 252 5555 Section 5 7/9/06 6:10 pm Page 19 HAZCHEM/CONTAINER INDUSTRY NEWS WorldCargo news Pioneer natural gas hydrate tank Box profits fall on weaker demand Mitsui Engineering & Shipbuilding Co Ltd (MES) and Chugoku Electric Power Co Inc of Japan are to cooperate in a demonstration project that will build the world’s first natural gas hydrate (NGH) transport tank and prove the viability of delivering natural gas to market in this form. To verify the practical feasibility of transporting NGH overland in specialist tanks, an NGH production plant will be constructed at Chugoku’s Yanai power station capable of providing 5t per day of pellet NGH by means of unutilised cold energy from the adjacent liquefied natural gas (LNG) import terminal. NGH is a hydrate comprised of water and natural gas and is an ice-like, crystalline solid in appearance. It will be transported by a newly developed NGH tank container to a natural gas-fired cogeneration plant and local domestic gas consumers close to Yanai. The regasification of the NGH into natural gas and water will enable the natural gas to be utilised in the traditional way. Japan is keen to develop the methane hydrate bubbles that exist on the seabed at depths of over 600m close to the country’s coastline as an energy source and MES has already developed a design for a seagoing NGH carrier. NGH is claimed to be easier to store and transport than LNG, not least because the -162degC carriage temperature of LNG requires considerable energy to produce, an expensive cryogenic containment system and a large-scale operation to justify the investment. In contrast, say MES and Chugoku, NGH can be produced more cheaply and in volumes suitable for small and medium-sized consumers.The partners claim that the land transport demonstration project utilising the specialist new tank container, which will be carried out over the 2006-08 period, will pave the way for the commercialisation of the global NGH transport chain. The container, which will be provided with equipment to enable it to regasify the hydrate itself, will be tested to verify the stability of the NGH pellets in transit and its ability to control the delivery of product according to specification. Gas hydrates represent a large global reservoir of natural gas and are estimated to contain more organic carbon than all other known fossil fuel sources combined. Gas hydrates exist under large portions of the world’s Arctic areas and on deepsea continental slopes. Talke Logistic Services has boosted its dry bulk activities by acquiring Hoyer’s 50% share in mutual joint venture Hoyer-Talke GmbH & Co KG.Terms of the deal were not disclosed. Hoyer-Talke was formed in July 2001 as a joint venture between the two companies in order to leverage synergies for customers originating mainly from the chemical industry. Its services comprise transportation in dry bulk road tankers and containers within a Europewide network.The company operates a fleet of more than 300 dry bulk road tankers and approximately 1000 bulk containers and also offers the storage of dry bulk products in silo containers. “Dry bulk activities are a strategic business area in which we are growing rapidly on a national as well as international basis. By taking over Hoyer-Talke completely, we are now able to offer our customers silo transport together with complementary services like storage or handling as integrated one-stop solutions,” said Armin Talke, managing shareholder of Talke Logistic Services. For Hoyer, the sale of its shares represents a further move within its strategic reorientation and concentration on core areas of business. Singamas Container Holdings has reported a 61% decline in first-half profit but is forecasting an improved second half performance.The company saw profit dip to US$10.86M from US$28.09M a year ago, with turnover falling 32% to US$268.35M from US$393.84M. China International Marine Containers (CIMC), the world’s largest container maker, had earlier reported a 35% fall in first half profit to Yuan1.33B (US$167M) as revenues dropped 19% toYuan14.58B (US$1.83B) on weaker demand. CIMC said its operating margin narrowed to 11.94% from 18.86% a year earlier as the price of Corten steel rose to US$600/t from US$400/t at the end of the first quarter. Singamas president S. S.Teo said the decline was mainly due to the abnormally high container demand in the first half of last year when orders were much larger than in the second half.Teo said the company’s performance will improve in the second half because of a recovery in the selling price of containers and a pickup in orders. “The selling price of dry freight containers has increased from US$1,400 per TEU at the end of 2005 to around US$2,000 for August 2006 delivery,” he said. In the first half of 2006, Singamas manufactured 218,662 TEUs at its factories in China and Indonesia, down 32% from the same period last year. Sales also fell 32% to 197,768 TEU while the price per TEU fell 21.7% to US$1,635. CIMC sold 770,300 TEU in the first half, down 7.34% on the corresponding period of 2005. Sales of standard dry freight boxes fell 9.1% to 682,400 TEU and reefer sales dropped 17.41% to 33,900 TEU, but sales of specialised containers (flatracks, tanks and domestic containers) increased 33.78% to 54,000 TEU. Extending reefer controller life Carrier Transicold has introduced a PC Card Adapter that allows older MicroLink 2 (ML2) and MicroLink 2i (ML2i) microprocessor controllers to be programmed as easily as its latest MicroLink 3 (ML3) unit by using the same DataBank PC card technology. It can also be used to extract data from units equipped with ML2i controllers. With a substantial installed base of seaworthy reefer units still relying on the earlier ML2 and ML2i controllers, the card adapter is expected to appeal to users with fleets of both new and older equipment, as they will no longer have to use different methods to upload and download, says Carrier. It will also help to avoid older controllers fading into early obsolescence. “It’s another way of protecting the users’ investment in their Carr ier equipment,” said Mike Marasco, Carrier Electronics Engineering team leader. Measuring 13cm x 7.5cm x 2cm, the adapter is encased in a rugged, yet lightweight plastic housing that is bright orange in colour. In the requirements phase of the development process “customers told us it should be easy to spot in a tool box,” Marasco explained. The user inserts a DataBank card in one end of the adapter and the other end has a connector that fits into the memory slot of the ML2 and ML2i controllers. Without an adapter, ML2 and ML2i units use Epson flash memory cards for software uploads, with each card holding only one program file, meaning separate cards are required for reciprocating and scroll units for both the ML2 and ML2i. With the new adapter, however, a single SRAM card can hold multiple operation and configuration software sets, reAugust 2006 ducing the number of cards technicians need to carry from unit to unit. When the adapter is used with the ML2i, DataCorder information can be downloaded directly to a DataBank card. Without an adapter, conducting a data download requires a laptop computer with a serial cable to be connected directly to ML2i controls. “Most of today’s modern laptops do not have a serial connection anymore,” said Marasco, “and there are issues of availability with the older Epson cards and card programmers.With the PC Card Adapter, those concerns are things of the past. The ML2 and ML2i remain ready for the future.” ● Mark Cywilko has been promoted to president of Carrier Transicold, succeeding Ted Amyuni, who has been appointed president of Refrigeration Operations, which was formed recently to tie together Carrier’s stationary and transport refrigeration businesses for improved synergy and market responsiveness. Most recently Cywilko served as vice president and general manager of Global Truck/Trailer Refrigeration. His 30+ year tenure with Carrier includes experiences in sales, service, marketing and general management. Paul den Houdijker has been named managing director for Europe, Middle East and Africa, succeeding Jelte van der Wal, who has been named senior advisor, Global Container. In his new role, den Houdijker will lead the container sales team to further strengthen relationships with customers. He joined Carrier Transicold in 1984 and most recently held the position of market area director, Middle East, Southern Africa, Italy and Benelux. 19 Section 5 7/9/06 6:12 pm Page 20 WorldCargo news CONTAINER INDUSTRY/SHIPPING NEWS Cronos ups and downs Thermo King celebrates The Cronos Group has reported net income of US$2.5M, for the quarter ended June 30, 2006, compared to US$3.5M for the corresponding period in 2005. Gross lease revenue was US$35M, an increase of 2% over the corresponding quarter of 2005, reflecting the growth of the company’s specialised container fleet and continued strong utilisation rates. Net income was lower than in the same period of 2005 because of increased interest rates and ex- ceptionally high gains recorded on container dispositions and consultancy projects in the prior year comparative period, Cronos said. Utilisation of the 440,000 TEU Cronos container fleet finished the second quarter at 93% on the back of high levels of demand for all container types. Direct operating expenses declined in line with lower container redeliveries and were US$0.5M, or 10%, lower than in the second quarter of 2005. Cronos added US$88M of new container equipment to its fleet during the first six months of 2006, with specialised equipment (comprising refrigerated, tank, and dry freight special containers) representing 87% of the new acquisitions Gross lease revenue was US$70.3M in the first half of 2006, an increase of 3% over the same period in 2005 Net income for the six months ended June 30, 2006 was US$5.1M compared to US$7.1M for the comparable period in the prior year. Safety in numbers 10 T LONG RACKING 50 T MGW 34 T STUB POST TENSION 100 T STACKING FLEXIBLE BASE DOMINO TECHNOLOGY COMBATS SAG AND FATIGUE DOMINO Flatracks WORLD LEADERS IN INNOVATIVE DESIGN AND MANUFACTURE Strong flatracks are safer and more damage resistant. All around the Domino XL you can see robust components and structure, developed over 25 years. Twistlocks, top lift plates, racking, stacking, payload, elasticity - all exceed ISO's standards by a substantial and safe margin. Tel: +44 (0)1926 863 140 E-mail: [email protected] Web: www.dominoflatracks.com Thermo King Corporation is celebrating its 50-year anniversary in the reefer container business this year. The company built its first container refrigeration unit in 1956 some 18 years after the development by Ther mo King Founders Joseph Numero and Frederick Jones of the first truck refrigeration unit. “Our container reefer units have definitely come a long way since our first container unit,” said Dermott Crombie, vice president, Global Marine Solutions.“Today, our MAGNUM [scroll/R404A] container unit leads the industry by offering flexibility and security in shipping a wide range of products by maintaining temperatures from +30 to -35degC. The MAGNUM delivers unmatched deep frozen capabilities and extreme low temperatures that can now be maintained throughout the cold chain. “Just as we forged ahead into the container shipping industry 50 years ago, the MAGNUM is leading the way through the 21st Century by providing greater reliability, significant power and cost savings, colder temperatures and the ability to ship products greater distances - essentially creating more opportunities for both the fresh and deep-frozen seafood industry and providing consumers all over the world increased, quality food choices,” continued Crombie. Leading shipping lines such as Maersk, OOCL, Hapag Lloyd, Hamburg Süd and CCNI are among users of the MAGNUM unit, over 30,000 of which have been purchased since it was introduced in 2002. Among other recent innova- tions brought to the container shipping industry by Thermo King is the Advanced Fresh Air Management System (AFAM+), a computerised system that manages CO2 levels within a container by utilising a motorised fresh air exchange door. By maintaining CO2 levels,the eating and visual qualities of foodstufs are maintained and product shelf life is extended. This adds value to harvested products due to the ability to transport them to distant markets in premium condition. AFAM+ provides a “ventilation on demand” system that constantly monitors changes in respiratory gases. When the CO 2 setpoint is reached, a vent automatically opens to allow fresh air in, and closes again when the desired gas levels are reached. A side-benefit of AFAM+ is that the humidity is kept higher than in manual ventilation systems, which leads to significantly less shrinkage or weight loss by maintaining elevated humidity, without the recourse of adding moisture. Thermo King’s genset product line is also getting attention, achieving record sales in 2005. “We expect to surpass that record in 2006,” said Crombie, “through a combination of legislation, better vigilance within the cold chain, and the ever-rising costs of diesel fuel. Thermo King gensets can save the average user US$300-600/year.” Thermo King’s latest genset units all comply with recently introduced California Air Resources Board (CARB) requirements. “We are proud to be the founders of both over-the-road and container refrigeration technology,” continued Crombie.“We look forward to another 50 years of offering innovations and leadership in reefer technology that will drive, improve and grow the transport refrigeration industry to even more corners of the world.” DFDS buys Norfolkline box division Subject to the approval of the relevant competition authorities,AP Moller-Maersk subsidiar y Norfolkline has signed an agreement sell its container division, Norfolk Line Containers BV, to DFDS Tor Line, part of DFDS Group.Terms of the deal were not disclosed. The move is consistent with Norfolkline’s strategy to realign and strengthen its core ferry and intermodal businesses and to divest activities with no clear Safety, innovation and quality are the guiding principles of our business philosophy. Bubenzer’s Formula for Success BUBENZER BREMSEN is a world leader in the design and manufacture of industrial braking systems because we constantly strive to do the best work possible on every job. INDUSTRIAL BRAKE SYSTEMS Our quality and customer service are second to none, and we pride ourselves in finding a solution to any braking problem based upon our many years of experience in the material handling industry. Be informed at: www.bubenzer.de or phone: +49 (0) 27 41/94 88-0 ® 20 Over 30,000 MAGNUM units have been put into service since 2002 synergy with the rest of the Norfolkline Group. “Change of ownership will benefit both employees and customers of Norfolk Line Containers BV as it complements DFDS Tor Line’s container activities and extends the product offering,” a joint statement said. “This divestment is a confirmation of our commitment to execute our strategy. It is also a strong signal to our employees, customers and shareholders as this move gives us the opportunity to be more focused and g row Norfolkline’s core businesses, the ferry and logistics pillars,” said Norfolkline managing director Thomas Woldbye Norfolk Line Containers currently operates five chartered containerships serving two routes between Rotterdam and ports in Ireland. The company operates a fleet of around 2400 primarily 45ft containers, including 500 reefers. Shipowners may pay to use Malacca Strait Shipping companies may soon have to pay to use the Malacca Strait as nations along one of the world’s busiest waterways look for ways to share the costs of keeping it open and safe. The 900km long strait links Asia with the Middle East and Europe, and ships transiting it carry around 40% of the world’s trade, including 80% of the energy supplies of Japan and China. The three littoral states - Singapore, Malaysia and Indonesia have stepped up air and sea patrols of the strait in response to increased concerns over incidents of piracy. Maritime experts meeting in the Malaysian capital Kuala Lumpur this month said they were studying ways for the littoral states to persuade shipping companies and maritime nations to help defray the costs of keeping the channel open and secure. “People are willing to pay money to keep the Malacca Strait a safe, reliable resource and as the pressure of traffic increases, they will be willing to pay a bit more to keep access open,” said Jon Van Dyke, a maritime law specialist at the University of Hawaii. “Collecting a toll could be done through the country where the ship is registered,” he said. “So far the response has been positive, with users of the strait saying the littoral states must come up with a mechanism and they will look at it,” said Cheah Kong Wai, director general of the Maritime Institute of Malaysia. “This could involve setting up a body to collect the dues, perhaps on a proportionate sharing basis.” Whatever the ultimate shape of such a proposal, support from the International Maritime Organisation (IMO), will be crucial. “Shippers are finally realising they have no choice and coastal countries are more comfortable with the IMO doing this (rather) than with Japan or the United States,” said Van Dyke. August 2006 Section 5 1/9/06 12:54 pm Page 21 WorldCargo news GERMANY: PORT DEVELOPMENT HHLA and Eurogate bursting at the seams Deutsche Bahn’s proposed takeover of HHLA last year is a “dead horse,” but the City of Hamburg’s wish to dispose of 49% of its shares remains. It seems that the city is tendering for a specialist mergers and takeovers broker, to be appointed by September this year. “It’s in our shareholders’ hands,” said Dr Stefan Behn, the HHLA Board member in charge of the container division. HHLA logged a stunning 17.3% growth in container throughput in the first half of this year, to 2.938M TEU, despite the modernisation and expansion works going on at all three of its terminals. Behn does not expect the second half to match that performance, but stresses that these works will not require any traffic to be temporarily moved:Altenwerder (CTA), Burchardkai (CTB) and Tollerort (TCT) will be able to absorb growth. In May alone, CTB handled 249,000 TEU, Behn noted, equivlent to 3M TEU/year even though capacity here has been assumed to be 2.6M TEU maximum. Heart surgery Extending CTB is like open heart surgery with the patient not just awake, but working. Capacity is to be doubled to 5.2M TEU by 2012. Since WorldCargo News last reviewed CTB’s transformation from conventional van carrier operation to automated stacking concept (August 2005, pp19-21), HHLA has invited bids for four ship-to-shore cranes from one Asian builder (understood not to be ZPMC) and four European companies. The order is due to be placed next month, for delivery from August 2008. The quartet comes on top of two Kocks/ Siemens cranes, of which the first is due next April. The possibility of automating CTB’s quayside work is not yet on the agenda, and will not be at least until all 29 ASC blocks are operational. “That could be in 2011 at the earliest, or later as the pace of business growth dictates,” says Behn. “The contract with Kalmar [for 87 ASCs - three for each 2100 TEU stacking block] allows for delivery deferral. We wouldn’t go for quayside AGVs per se. I would imagine that by that time there will also be good, unmanned 1-high sprinter-type van carriers around. For positioning we’d use CTA’s proven transponder technology.” The renewal and strengthening of CTB Berths 2- 4 at Waltershofer Hafen will be amended in step with the expansion of the terminal. Berth 1 was renwed and equipped with five post-Panamax cranes in 1998. Blockheads Transforming CTB’s main terminal space to automated RMGs will take out only limited stacking capacity in the interim. “CTB still has spare stacking capacity,” says Behn. “Firstly, we created extra space by moving the railhead from the centre to the north end of the terminal.” The new on-dock rail yard will be officially opened at the end of September by federal transport minister Wolfgang Tiefensee. “To start with, only the 50m landside end of each block will be built and Kalmar will erect three RMGs there.Terminal staff will operate the road truck/RMG inter- HHLA board member Stefan Behn face by remote control with live camera vision; we are not going with the truck driver DIY operation that Euromax will introduce. “Construction and testing will take about three months per block, during which time the area towards the quayside will continue to be used as conventional stacking space with straddle carriers. Following delivery of each landside end, Thyssen-Krupp will roll out the remaining 335m of rail for the actual automated stacking block within one month. So each block will take about four months to complete.As they will offer more stacking capacity than in the previous straddle carrier operation, terminal capacity will immediately rise per block delivered.” Each of the 29 blocks will be 45 TEU long, 10-wide and 5-high. The first one is scheduled to come on stream by mid2007, and number five by April 2008. CTA and TCT At Altenwerder, four additional stacking blocks become operational between July and November this year. The final 26block layout will then be in place. Once ZPMC has installed the 15th gantry crane in 2007, CTA will be fully geared with maximum possible layout and hardware in place. “Production is higher than we’d expected. CTA will probably do 2M TEU this year and will reach its 3M TEU maximum capacity when the final gantry crane is operational next year,” says Behn. He anticipates that increasing TCT’s capacity from 900,000 TEU to 2.1M TEU could be completed by 2010. Step by step, the terminal area is going from 40 hectares to 62 by filling-in the Vulkanhafen dock at its south and the small Kohleschiffhafen at its north-west corner. Mid-2009, the new berth at the south side will be ready, extending the quay wall to 1250m. Here, too, the rail terminal will be relocated to the terminal’s far back side to create more open terminal space.TCT will retain the conventional straddle carrier-direct concept. Eurogate enlargement Eurogate Container Terminal Hamburg (CTH), is increasing capacity to 4.2M TEU by 2010. Already, its official 2.4M TEU maximum capacity has proved elastic, given the 2.6M TEU handled in 2005. Berth No. 1, the first of three to be extended, only got its five new cranes in June last year and was out of commission for most of the first half. CTH’s first half 2006 figure was Eurogate’s CTH with the modernised Berth No.1 in the foreground.The future 35-hectare and 850m deepsea quay wall extension are at the very top and are due by 2010 Cranes | Port Services | Lifttrucks 1.24M TEU, 4.6% below that for the 2005 half year average. No year-on figure or cause was given. Berth No. 2 is undergoing modernisation works, due for completion in mid-2007. 380m of new, heavy quay wall are being built in front of the current quay wall to accommodate superpost-Panamax cranes and to allow 16.7m of water depth. Berth No. 3 will be the last to undergo these works as the existing berths further west are already up to the superpost-Panamax mark. The final extension required to achieve 4.2M TEU annual capacity by 2010, is the westward expansion of what already is Hamburg’s westernmost terminal. To that end, most of the tank storage will be cleared (World Cargo News, August 2005, pp 19-21). Combined with the filling-in of most of the indented Petroleum basin, 35 hectares will be added to the terminal.The remainder of this basin will get dedicated feeder berths on the south side and 850m of new deepsea berth will be built on the north side of the expansion area, directly on the Elbe. The port authority (HPA) is preparing to launch the planning approval procedure for the expansion at the end of 2006. Finally, to boost downstream output, the Eurokombi terminal behind CTH will get an extra five full train length loading tracks and four additional gantries to lift annual capacity to 700,000 units, compared to the 336,551 handled in 2005. Race against the clock Assuming an average 9.4% growth every year, Hamburg expects to be handling 13M TEU in 2010, compared to the current aggregate capacity of around 8.5M TEU. If all the projects to increase capacity are realised on schedule, capacity would be around 14M TEU by the year 2010, states HPA.This assumes the timely completion of the westward expansion of CTH for which, as noted, the planning permit procedure has yet to be launched. Going by the timeframes given by the operators, constraints could be felt by 2009-2010, viz: CTB - 2.6M TEU today, another 2.6M TEU by 2011-12; CTA 2M TEU today, another 1M TEU by 2010; TCT - 0.9M TEU today, another 1.6M TEU by 2010; CTH - 2.6M TEU today, another 1.6M TEU by 2010; others - 0.5M TEU today; increases and timeframe unknown. ❏ K&N not in the frame CONTAINER HANDLING EQUIPMENT AND SERVICES Konecranes is your partner to handle containers: Kühne & Nagel, the world’s biggest seafreight forwarder, has squashed rumours that it is interested in buying the share packet in HHLA that the City of Hamburg wants to sell. “I can categorically deny any interest of ours as a sole buyer of HHLA shares and that was never mooted in any case,” Klaus-Michael Kühne told WorldCargo News. “At the height of DB’s negotiations with HHLA, I protested against the undesirable consequence of HHLA losing its neutrality once it became a DB subsidiary. I suggested that if a group of forwarders were to emerge to buy the HHLA shares instead, we would want to be among them. But our share would never have exceeded 5%. The less, the better, for I don’t want to get involved in stevedoring. “Having said that, I also consider it undesirable for a group of forwarding firms, however widely drawn, to own HHLA, because it would still raise questions about its neutrality and of the whole port. But clearly it woud have been the lesser of two evils. “The DB/HHLA affair seems to be dead and buried, but I’m still a little suspicious. I wouldn’t exclude anything. After all, the city of Hamburg still wants to cash a portion of the HHLA shares.” ❏ STS cranes, RTGs, RMGs, Reachstackers, Toploaders, Forklifts, Positioning systems and Automation. Providing tailored equipment and services to meet your unique requirements is our speciality. GET THE JOB DONE www.konecranes.com CRANES Konecranes | P.O. Box 662 | FIN-05801 Hyvinkää, FINLAND Tel. +358 20 427 11 | Fax +358 20 427 2599 PORT SERVICES Konecranes Hafentechnik GmbH | Mühlenfeld 20 | D-30853, Langenhagen, GERMANY | Tel. +49 511 7704 0 | Fax +49 511 7704 477 REACHSTACKERS AND LIFTTRUCKS SMV Konecranes Ab | Box 103 | SE- 285 23 Markaryd, SWEDEN Tel. +46 433 73300 | Fax +46 433 73310 | www.smvlifttrucks.com August 2006 21 Konecranes_WCN_August_half.indd 1 18.8.2006 15:49:01 Section 5 11/9/06 2:01 pm Page 22 WorldCargo news GERMANY: PORT DEVELOPMENT Hamburg’s race to outpace traffic growth King Container is calling the shots in Hamburg, notwithstanding the 40-42 mt of dry and liquid bulk cargoes every year. Container traffic may more than double that this year as the forecast stands at 88 mt. The port is heading for a record cargo throughput of 130 mt, following a record first half figure of 66.2 mt, a 9.7 per cent increase on the first half of 1995. Container traffic reached 4.2M TEU (+ 10.7%) in unit terms, or 43.6 mt. The planned Elbe deepening, current terminal revamping/modernisation projects and port infrastructure improvements are mainly dedicated to containers, as is the next major, planned new project, without which the port fears it will have to wave goodbye to 3.5M TEU/year from 2015. The port has set a goal of being able to handle 18M TEU/year by 2015, but there is a discrepancy. The new facility, dubbed Container Ter minal Steinwerder (CTS), after the central port area where it is to be sited, is planned to start in 2015, whereas all cur- rently known terminal extensions/expansions would not push the barrier beyond 15M TEU once they are completed by 2012. Major landfill The 3.5M TEU/year CTS terminal requires major landfill or restructuring of four docks and four marine stevedoring piers. Added to the fact that all stevedores currently there will first have to be relocated, the deadline for preparations and works to begin is pushed forward accordingly. The port authority (HPA) has already been allowed to allot €137M to this project. The Moorburg area directly south of CTA offers at least as much space plus the possibility of a graving dock that would allow for about 3500m of quay wall, compared to the 1830m chalked up for CTS. “Moorburg seems faster to realise, once you can actually start building there,” says one port insider. “The area has been earmarked for port expansion, but a number of houses , offices, workshops and so on would have to be For several years Eurogate has used a multi-trailer system (MTS) for interminl drayage work in Hamburg.The particular MTS is a 6 TEU Gaussin system comprising a lead fifth wheel trailer matched to a CVS Ferrari terminal tractor and tailed by two drawbar trailers with in-line steering and controlled air braking. Now Eurogate is using the MTS to transport empty containers between its container terminal and EC depot at Dradenau, which is located nearby but requires access via a public road. A special permit has been obtained to transport up to 6 TEU/3 FEU of empty containers.The maximum, allowable speed is 30 kmh and the drays must be carried out and completed within daylight hours, but otherwise no special homologations are required for the tractor or trailers. Experiences so far have been good and it is possible that other permits may be sought in the future Hamburg’s next new major container terminal (Steinwerder) is planned in the central port area, where all Buss Group’s Hamburg terminals are currently located. (HPA Marketing) relocated and that might delay the process. “Our politicians assume that agreements will be easier to reach with the current Steinwerder occupants. As they are all port businesses it’s more realistic to expect their co-operation. Moreover, the port authority is already the landlord here.” Quo vadis? If the city upholds its preference for Steinwerder over Moorburg, the Buss group will top the negotiating agenda as it is by far the biggest operator there.All three of its marine terminals, one for break bulk, containers and ro/ro (multipurpose) and two for dry bulk and scrap, are in Steinwerder. Two thirds of the 24 parties that have to be relocated are either Buss subsidiaries ot its sub-tenants. The only other operation that has to be cleared is HHLA’s Unikai EC depot. So Buss tops HPA’s “migration” obligations and “by 2012” is the timeframe. Understandably, given the uncertainty of future contracts, Buss will not comment on the alternative locations, but it is also a question of ngeotiation. Local sources suggest that the most likely location suitable to accommodate Buss’s aggregate complex - currently 2220m of quay wall and 56 hectares of terminal space - would be the Kattwyk peninsula opposite CTA at the massive Köhlbrand basin.The site is currently used by Harms for car storage. The Grasbook peninsula at the Hansa basin east bank is another option, although seemingly unsuitable for bulk, in view of the new Hafencity housing development directly across the river. Observers note that, given the different commodities that Buss handles, the terminals do not necessarily have to be moved in one go. It is possible that HPA will suggest co-siting or other forms of co-operation with competitors. Wallmann, for example, operates a multi-purpose terminal at the south end of the Reiherstieg, similar to Buss’s Hansa terminal. Rhenus-Midgard is another possibilty.Teaming up is thinkable for the scrap and dry bulk operations, as well. Even the smaller Harburg docks in the southermost port area could be restructured for new occupants. Rail and asphalt When presenting the port’s first half figures for 2006, Hendrik Lorenz, chairman of HPA’s marketing body (HHM) urged the city to speed up a number of road and rail infrastructure project’s on the way for the Moorburg container complex to be developed (ie because the current Süderelbe rail bridge is in the way). Family jewels Moorburg, directly south of CTA, is a further area earmarked for future container operations. In the top variant, the terminal would feature a graving dock to provide 3500m of quay wall. (ibid) the port’s “wish list.” One is the east-west motorway link between the A1 and A7 motorways that both cross the port on a northsouth axis. The link would connect the road between the container complex in the west (CTH, CTB and CTA) with Germany’s Baltic ports and Berlin. At least as important are further improvements to the port railway system. In 2005, 1.4M TEU went by rail of the total 8.1M TEU handled (17.3%), but 55% of all containers moving outside the greater Hamburg area travelled by train, including 70% of all hinterland containers travelling 150 kilometres or more. The on-dock rail terminals at CTB and CTH are already being extended, or soon will be. So is the main Süderelbe for mation yard serving this complex and CTA. New shortcut rail links to this yard and the nearby CTA rail terminal, combined with a new bridge spanning the Süderelbe near Harburg, are accorded top priority by the port. Significantly, these improvements would clear Meanwhile, speculation continues to focus on the possible sale of HHLA, by far the port’s biggest stevedoring and logistics group. Although the search is on for a consulting broker to guide the shares sale process, few believe that the “town hall is closed for direct contacts.” Following the controversy of last year, Deutsche Bahn is assumed to be out of the picture to the relief of nearly everybody but the CDU politicians governing the city-state. The negotiations at the time, however, made it clear that the Senate is prepared to relax its earlier promises to limit the share for sale to 49% and to favour an institutional investor over a strategic partner who might interfere with HHLA’s operation too much. Anything possible? Despite suggestions to the contrary, usually well-informed Hamburg sources suppose that again anything is possible with the right candidate. It is also believed that the Senate will not have to rush to accept the first offer, given HHLA’s “black” figures. On the other hand, major projects such as the construction of the next mega-container terminal at Steinwerder or Moorburg require sizeable funds for the HPA, as do the Elbe dredging and other port infrastructure projects. Cashing 49% of HHLA’s ownership is one obvious way to generate such funds, just as selling riverside port property directly south of the Speicherstadt for upmarket housing projects yielded much of the €750M needed to build CTA Altenwerder. ❏ German Basketball League Team EISBÄREN BREMERHAVEN sponsored by BLG LOGISTICS Let‘s move better! 22 c cs uccess uc ccess visit us at hall W1 | stand 528 www.blg.de | [email protected] August 2006 Section 5 1/9/06 1:03 pm Page 23 WorldCargo news GERMANY: PORT DEVELOPMENT One foot towards 12,000 TEU access Next month Hamburg will set in motion the permitting procedure for further deepening of the Elbe. The port is seeking another 1m of depth to enhance accessibility and so become an up-to-themark proposition for 12,000 TEU ships and ultra-large bulk carriers alike. The current draught limits for Hamburg’s 100-km approach are: 12.50m tidalindependent, 13.50m tidal outbound and 14.80m tidal inbound, all salt/sea water and net of keel clearance. If the political process is concluded within a reasonable time-frame, dredging could start early in 2008 for completion by late 2009. The new values would be: 13.50m tidal-independent, 14.50m tidal outbound and 15.60m tidal inbound. Hamburg already receives the biggest box ships, such as the 9500TEU COSCO GUANGZHOU continue to be flooded with every tide and, say Grimm and Ferk, “we will try to protect them by planting new vegetation.” To this end, aerial inspection will monitor how vegetation develops and migrates. More on-land basins will be created for emergency flooding during extreme tides. One issue unlikely to be of concern is pollution. “This far downstream, there is no sediment containing polluted material from industries along the Middleor Upper Elbe,” says Grimm. “Still waters in the Port of Hamburg are the westernmost place where such material sinks. We’re dredging just sand and some marl from ancient layers.” The money has reportedly already been fixed. Of the estimated €320M cost, €100M will be paid by the city state of Hamburg and the remainder by Berlin. The split represents the lengths of the river in Hamburg’s and federal territory. With the tide-independent draught of 13.50m sought from 2009, the largest containerships would still need the tide to enter or leave. But the extra 80-100 cms on top of today’s limits would mean longer tidal “windows” and that improves Hamburg’s attraction as a first or last call for Asia-Europe strings. Grimm and Ferk also point out that Hamburg’s current draught restrictions are expressed in average depths. “These prevail about half of the time. The new figures would be the lowest water depths that prevail 80% of the time.” ❏ Advance work “We are simultaneously applying for advanced dredging works to cut an initial 30 cms from some stretches in the outer Elbe,” says Bernd Grimm of the Elbe River Deepening Project Bureau. “That would mainly benefit tidal outbound shipping. The tide-independent limit would then go to 13.80m. “We hope to get permission by mid-2007 for these advanced measures, to be completed in the autumn of 2007. It involves a maximum 3M m3 of dredge material.At the same time we’d start preparing the six underwater dumping pits for the main operation’s dredge material to ensure a good pace of work once the main permit is granted.The major dredging operation will involve about 36M m3 of material.” Grimm and his colleague Ulrich Ferk are hydraulic engineers. Ferk is with the Hamburg Port Authority (HPA) and Grimm is with Wasser- und Schifffahrtsamt Hamburg, which is part of the Wasser- und schiffahrtsdirektion Nord (WSD), an agency of the federal transport ministry. WSD is responsible for maintenance of federal navigable waters. Preparation work for underwater dumping pits features reinforcing their slopes, so the current would not level them before they have actually been filled with dredge material. These pits are in non-navigable parts of the Elbe. High profile “Dredging will involve the Elbe river west of Hamburg, as the main container and bulk port basins already allow for draughts up to 15.30m,” says Ferk. “Most of the work will be concentrated on the 55-km stretch between Stade and Brunsbüttel (kms. 685 and 740). Nonetheless, some sand banks will also have to be treated, for example in mouth of the river between Brunsbüttel and Cuxhaven.” First, the planning permitting procedure has to be negotiated. Grimm and Ferk are conscious of the difficulties.“The public and environmental organisations will raise objections, considering the Elbe’s high profile, its bucolic heritage and the conservation and habitat areas that stretch across virtually its entire bank.” So the case will have to be well-supported and argued and the Environmental Impact Assessment will have to be “watertight.” People may fear higher water levels at high tide, but the dredging design includes adequate measures to curb current speed.The federal government in Berlin has stipulated that the tides must not be higher as a result of the deepening. This would occur naturally if, as a result of the river bed’s levelling, the current flow were allowed to gain speed. The “common sense” view is that if you deepen a channel, the current flow should slow down. However, Grimm and Ferk explain, as dredging smooths the river bed, incoming tides can gain speed. The water encounters fewer obstacles that create resistance. Further, the bigger “spread” means more water can enter. To counter the risk of tides getting higher from the freer flow of the water after the deepening, parts of the river bed will have special barrages that do not interfere with shipping. Berlin has promised the riparian counties that the deepening will be “tidal height neutral.” Mudflats earmarked as dredging material dumping grounds are also subject to environmental protests.These areas will August 2006 The power of innovation. The visionary new Reachstacker from Linde. With its outstanding agility, superb precision and smooth control the new Reachstacker from Linde embodies all the finest qualities of refined power. Much more than just the sum of its parts, here is Man and machine in harmonious action. The fully integrated, versatile and responsive control and operating system is a visionary concept designed to make life easier. Combine this with Linde’s truly global service, spares and technical back-up and you can understand why we are world leaders. The visionary new Reachstacker from Linde: the next generation of working solutions delivering greater productivity and efficiency. Linde Heavy Truck Division Ltd Linde Industrial Park, Merthyr Tydfil CF48 4LA, GB Phone +44 (0) 1443 624200, Fax +44 (0) 1443 624302 E-mail [email protected], www.linde-htd.com Head Office Linde Material Handling Division, PO Box 62, 63736 Aschaffenburg, Germany Phone +49 6021 990, Fax +49 6021 99 1570 E-mail [email protected], www.linde.com/linde-forklifts Linde Material Handling 23 Section 5 1/9/06 1:15 pm Page 24 WorldCargo news GERMANY: PORT DEVELOPMENT JadeWeserPort confident of a 2010 start Lacking inland waterway possibilities,Wilhelmshaven’s rail connections will be vital for JadeWeserPort (JWP) to penetrate its hinterland. Western Europe’s next deep water container terminal will commission 4.4 kms of new rail track to hook up with the main network.This stretch included, 23 of the total 50 kms up to the town of Oldenburg will be single-track. In Oldenburg, Germany’s main double-track grid is accessed. “The initial 11 kms of rail from the terminal will get one bypass to overtake another train or to let one pass and there are some bypasses on the final 39-kms track to Oldenburg as well,” said Helmut Wer ner, director of JadeWeserPort Realisierungs Gesellschaft. “No planning permission is required for these track adjustments, as the line was double-tracked until 1945. “Furthermore this has been adopted in the national transport infrastructure plan with a preferential status. It ranks among 15 port infrastructure priorities.” Even so, the German Liberal Party (FDP) has urged the entire track between Oldenburg and JWP to be double-tracked before the terminal opens (planned for 2010) and to be electrified.Werner acknowledges that the financing has yet to be secured from the federal transport ministry in Berlin. livery. This includes all basic infrastructure from the fairway and quay walls to the 16-track rail formation yard at the back of the terminal. All 16 tracks will be full train length. Paving the terminal will be the first job for the concessionary jv - Eurogate Group and APM Terminals (70:30). Joint approach Starting soon Werner heads the body set up by the states of Lower Saxony and Bremen to realise JWP from the project’s conception up to its de- First the planning permission needs to be secured, but Werner is confident that it will be granted in time for actual works to start late this year. Following hearings in June, the responsible authority, the Waterways and Navigation Directorate, is mulling whether to order construction of a 4.5-km long noise abatement wall to protect a nearby bird sanctuary. “They may decide to monitor the terminal’s actual operational noise impact and possibly order us to build a wall quickly then,” says Werner. “We anticipate their decision by August or September and expect to be allowed to start works immediately, whatever the outcome. “Opponents would still have the opportunity to appeal, but we are optimistic that the court would not suspend works while appeals are under discussion. After all, we’re not undertaking anything drastic or irrevocable, like demolishing houses, for example, and in any case a noise wall could be rapidly built.” Local sources also believe that any objections would be dealt with parallel to JWP infrastructure works. “We’re 99% certain that the court would rule in favour of this scenario within a week,” one source said. “Werner and his principals in the two federal states involved believe that con- Sized to carry 40 million automobiles every year. We ship its weight every week. One of the world`s most beautiful bridges: the Golden Gate Bridge. Over 40 million automobiles and a countless number of pedestrians and cyclists cross the mouth of the San Francisco Bay on the 2,737 meter suspension bridge every year. Vision of container terminal, logistics park and new rail and road links superimposed on aerial shot of site. (JadeWeserPort Realisierungsgesellschaft) tainers will be handled at Eurogate Container Terminal Wilhelmshaven in 2010 at the latest.” Tender bids JadeWeserPort Realisierungs Gesellschaft GmbH is well on course, says Werner. “We have received the national and international bids for all parts of the works - dredging the fairway and berths, construction of the quay wall and of the slopes for the terminal’s north and south ends [as the terminal protrudes into the bay], and landfill for a total 45M m3 of sand.” The 2.7M TEU/year facility, equipped with 16 cranes, will easily accommodate fully laden first call container ships of the next generation, thanks to its 1700m long quay wall and tide-independent water depth of 16.5m But “downstream” its accessibility will depend, as noted, on rail and road links. The planned new A22 motorway running from Lübeck on the Baltic to Ludwigshaven would be an enormous boost. It is scheduled to run around Hamburg in a great arc towards Lower Saxony and hook up with Germany’s western motorway sys- tem only 30 kms south of Wilhelmshaven.This missing link in continental Europe’s northern part of the Trans European Network (TEN) would drastically improve direct road connections with the greater Hamburg area and anything north and east of it, including Denmark and Germany’s Baltic region. Significantly, all this also applies to Bremerhaven. The river Elbe would have to be crossed west of Stade, although. Germany’s transport ministry in Berlin says that planning permit procedures for this bridge or tunnel are due in 2007 and are expected to take a full year to evaluate. Wilhelmshaven is the nearest German seaport to the denselypopulated and industrialised Ruhr area, “beating” Bremerhaven by some 10s of kms.Two motorways lead south to this “backyard” of Antwerp and Rotterdam, one of them being the A28/A31 running parallel to the German/Dutch border. “This so-called Ostfriesenspiess,” remarks Werner,“is a fast lane as only 20% of its capacity is used.”The same applies to the rail track running parallel to it. ❏ New projects for Buss group In 2005, the ports of the duisport Group handled 45 mil- Cargo has to travel long distances today. We keep it on lion tonnes of cargo – equivalent to one Golden Gate the right track – for your success. Bridge every week. Together with our customers we have optimized our operations for this throughput: trimodal transportation interfaces and leading-edge logistics services. From multimodal container terminals to roll-on roll-off installations; from massive warehousing space to bulk cargo installations – we offer our customers the Find out what we can full range of services they expect from Europe’s most do for you – live or efficient inland port. at our Internet site. Duisburger Hafen AG Tel. + 49 (0) 203-803-1 www.duisport.com [email protected] Hamburg-based Buss Ports & Logistics group has announced plans to invest €10M in a new multipur pose ter minal in StadeBützfleth on the river Elbe. It is hoped to commence construction work in 2007, with a view to startup in 2009. This is Buss’ second engagement outside Hamburg, following the opening of its Sea Terminal Sassnitz GmbH (STS) operation last year. “Stade-Bützfleth is an ideal location for the expansion of our port handling activities,” said managing director Renko Schmidt. “We will have capacity for additional bulk and breakbulk business that does not need to be moved via Hamburg.” To begin with the quay wall will be extended from 100m to 400m, of which Buss will lease 270m along with 3.6 hecatares of terminal space. To handle project cargo and heavy break bulk loads, Buss will invest in a 104t capacity mobile harbour crane. Coming through Buss came through some hard times in the late 1990s. Johann Killinger became the majority shareholder in 2002 and the group conslidated successfully before it started on a new period of growth. “With the consolidation period behind us, we have embarked on a growth strategy focusing on opportunities in German ports,” says marketing manager Ulf Schönheim. “For the time being Hamburg offers few prospects for new business.Throughput at our three ter- minals is good, but they are not the most obvious locations for new investments and in any case the Steinwerder area may be restructured.” On the move? Provided the Port of Hamburg sticks to its plan to build the next container terminal here, Buss’s Kuhwerder, Hansa and Ross terminals will have to move (see p22). All that Schönheim will say on this is that the port has guaranteed to provide Buss with good alternative locations, and in good time. As to Stade, apart from bulk and breakbulk, Schönheim points out that it is closer to the Kiel Canal entrance [at Brunsbüttel]. This offers hub potential for continental shortsea containers as an alternative to landing in Lübeck with truck or rail oncarriage to and from Hamburg. “Perhaps, however,” he adds, “forest product cargoes may not bear the extra Kiel Canal passage costs.” Forets products traffic is of growing importance at Buss’s STS facility on Germany’s Baltic peninsula at Rügen.Aluminium hy- The Kaiser Wilhelm dock, with (right) a Buss Terminal and (left) the Unikai EC depot, is one of four basins to be in-filled for Hamburg’s planned new Steinwerder container terminal. (Photo: ProVoice) 24 August 2006 Section 4 7/9/06 5:52 pm Page 25 WorldCargo news GERMANY: PORT DEVELOPMENT BLG Logistics continues growth trend T he joint network of BLG Logistics and E H Harms (part of BLG Logistics Automotive Division) operates 19 terminals throughout Europe that collectively handled a total of 4.1M vehicles in 2005, around 8% more than in 2004. In the first half of this year, the figure came to 2.19M vehicles, an increase of 12% year on year. The busiest ter minal remains Bremerhaven where 1.6M vehicles were handled last year. Throughput here rose almost 20% in the first half of this year, to 890,000 vehicles. Some 340,000 vehicles handled at Bremerhaven last year underwent pre-delivery inspection (PDI) and/ or other technical work at BLG’s Technical Center, and that figure is expected to reach 400,000 vehicles this year. Value-added services include cleaning, dewaxing, minor repairs, fitting DVD systems, hands-free comunication systems, satnav, sunrooves, etc, as well as applying special paintwork and coatings for bumpers and protective mouldings. Expansion projects currently under way in Bremerhaven, says BLG, are urgently needed due to the continuous growth in traffic. An additional berth for deep sea vessels, three berths for feeder vessels as well as additional operation areas of 65,000 m2 in the Osthafen and 150,000 m2 in the Carl Schurz area are under construction. Lock improvements Additionally, the modernisation of the Kaiserschleuse lock, scheduled to be finished by 2010, will provide quick and comfortable access to Bremerhaven even for the biggest vessels. Last but not least, a new multi-level garage for 6000 vehicles has just gone into operation. Transhipment with Scandinavia, Finland and Eastern Europe has been a sig- nificant growth factor at Bremerhaven, but import/export automobile flows also rose, as did the volume of “high and heavy cargo” shipments, such as buses, trucks and agricultural equipment. Underlying its hub function, the facility is connected to 15 northern European ports in eight countries. For the past two years it has been Mazda’s hub for Denmark, Sweden and Norway and the Baltic Republics.Vehicles made in Japan and England are buffered in Bremerhaven and transhipped on feeder vessels according to local market requirements.This hub function for Mazda was further extended in June, when BLG signed a new con- tract with Mazda Logistics Europe in Brussels that covers vehicles destined for Russia.The agreement encompasses PDI and other technical services at the Technical Center for around 30,000 vehicles/ year prior to on-shipment. New contracts BLG recently renewed its contract with Höegh Autoliners that loads or discharges around 100,000 vehicles/year in Bremerhaven, for customers such as BMW and DaimlerChrysler. In another new development, Manfred Kuhr, deputy Board chairman, BLG Logistics Group, has signed a new logistics services con- tract with DaimlerChrysler Group for Mercedes-Benz’ SmartCar, Maybach, Chrysler, Dodge and Jeep models. DaimlerChrsyler will continue to import and export its vehicles via Bremerhaven at least until the end of 2010. BLG states that the expansion of the berths and terminal areas as well as the planned extension of the Kaiserschleuse lock were among the factors that convinced DaimlerChrysler Group to continue using Bremerhaven. The service package for DaimlerChrysler group exports includes freight forwarding and a range of special services including container stuffing. On the import side, the division carries out technical work according to demand, freight forwarding and transport to branches and dealers. www.gottwald.com droxide is likely to be distributed from Stade, as the manufacturer is located there and Stade-Bützfleth will be rail-linked. Currently a weekly train leaves for Bavaria from Buss’s Kuhwerder terminal following barge feedering of the cargo from Stade to Hamburg. Schönheim cannot yet anticipate similar business from other captive Stade shippers that include Dow, a concrete manufacturer and a waste disposal company. “We will try to develop logistical and industrial sites and real estate there. “The terminal will probably feature dry bulk, with break bulk mainly being project cargo.” Interestingly, there are plans for an extra Elbe bridge or tunnel for the planned new motorway running from Lübeck around Hamburg towards Lower Saxony. It would cross the Elbe west of Hamburg and entail a new motorway section between Stade and Hamburg. Russian gauge STS is slowly maturing, following startup in 2005. A new and Rostock-built Liebherr LHM 400 harbour mobile crane dominates the 210m long quay wall.The 20,000 m2 terminal area includes a 2700 m2 warehouse. Forest products from Scandinavia and Russia and minerals from Russia are the main commodities, the latter arriving in wagons on rail ferries. Sassnitz - formerly known as Mukran - is the only West European port accessible to wagons with Russian gauge. In July, the port saw its DFDS railferry service to Klaipeda saved, when Railion joined in the operation. Sassnitz has liner connections with Bornholm (Rönne), Köge (Copenhagen), Baltiysk, St Petersburg, Trelleborg, Klaipeda and Baltimore. Save for this latter Spliethoff service, all the lines are ro-ro services. Buss has an option to extend STS by 50,000 m2, but it might decide to extend the quay wall first and fill in behind it later, depending on how traffic develops. It is also considering buillding a new transit shed for sawn timber. A new sand/ gravel mixing plant is also under consideration, to open up new possibilities for bulk handling and logistic services. ❏ ● Ixocon GmbH, the Buss daughter company specialising in design, construction and financing of real estate, industrial estates and logistics and distribution centres is building a new logistics terminal adjacent to HHLA’s Altenwerder automated container terminal. Ixocon has already designed and built similar facilities for companies such as HMS, Basté & Lange, Jack Wolfskin and Airbus. It will invest a total of €26M in the new, rail- and road-connected facilities that boast a 65,000 m2 marshalling area, and 35,000 m2 of distribution buildings that can be divided into modules of 45009500 m2.The hall is 500m long and is designed to meet current and likely future ceiling height and floor loading requirements. ❏ August 2006 Focused on your Requirements – Generation 5 Harbour Cranes When developing state-of-the-art port handling equipment, Gottwald Port Technology always has the success of its customers in mind. Most recent example: Generation 5. A revolutionary Harbour Crane generation offering a wide range of variants, ease of servicing and high performance. For professional goods handling for all sizes of ships in all types of terminal. Naturally with diesel-electric drive. And equipped with innovative features. Impressive in terms of classification and service life. Customised to individual requirements and all types of handling. Supplied in the correct size for each customer. The new Gottwald Harbour Cranes of Generation 5. Gottwald Port Technology GmbH • Postfach: 18 03 43 • 40570 Düsseldorf, Germany Phone: +49 211 7102-0 • Fax: +49 211 7102-651 • www.gottwald.com Generation 5 – You Name it, We Crane it 25 Section 4 7/9/06 6:01 pm Page 26 WorldCargo news GERMANY: PORT DEVELOPMENT/INTERMODAL More than 1.6M vehicles were handled in Bremerhaven last year European market. The faciliy is available for use by other customers as well. In another recent development, BLG Logistics Automobile Division has attracted a new roro service from the US to Russia, which is now stopping at Bremerhaven to load additional cargoes. BLG has also taken another step in the direction of Eastern Europe by founding a new joint venture, Automobile Logistics Slovakia (ALS), with Francebased logistics provider CAT. ALS will provide outbound logistics for the new KIA factory that has been built in Zilina. The Zilina deal is linked to a new contract signed by E H Harms with Glovis, the logistic services provider for Hyundai Motor group, to transport KIA vehicles from Bremerhaven within Ger many using its fleet of haulaways. E H Harms has already Last year BLG invested €600,000 in a 74m long service facility with an automatic conveyor system for DaimlerChrysler’s M-class all-terrain vehicles from the USA. It includes a 32m long car wash and a 42m long test and modification line.The cars are dirven direct from the ship into the facility, cleaned and dried. EHH Autotec staff then inspect them and clean up any minor damage sustained in transit. Bremerhaven is the import gate for all M-class vehicles for the Today ’s logistic s Your expert partner for bulk logistics. In Print and Online HOYER provides tailor-made solutions in the area of logistics, procurement and distribution. www.worldcargonews.com This includes: transport, transshipment storage, filling repair and cleaning of equipment Our offer covers the entire range for chemical products, mineral oil products, technical gases and foodstuffs. HOYER is your specialist for every type of product, at any time and in any place. www.bulkmaterialsinternational.com W H E N I T M AT T E R S HOYER GmbH · Internationale Fachspedition Head Office: Wendenstraße 414– 424 20537 Hamburg · Germany Tel: +49(0)40/2 10 44-0 · Fax: +49(0)40/2 10 44-246 Internet: www.hoyer-group.com E-Mail: [email protected] www.coaltransinternational.com been handling shipments for about 2.5 years on behalf of KIA Motors Deutschland (KMD). Glovis has taken over the re- sponsibility from KMD and the new contract is expected to see the number of cars moved increase by about 25%. ❏ More goods on the waterways Inland shipping is gaining ground in Germany as transport operators seek alternatives to the escalating costs of road transport. Duisburg, with a throughput of 49.2 mt last year, is Europe’s biggest inland port and sustains river-sea as well as barge services, and is the leading hub for onward rail and trucking services.Taking the next five biggest ports for inland navigation, traffic came to 14.9 mt in Köln, 11.1 mt in Hamburg, 8.1 mt in Mannheim, 7.2 mt in Ludwigshafen and 6.5 mt in Karlsruhe. Hamburg’s traffic rose the fastest last year, almost 25%, mainly due to the increase in domestic container transport. Water-borne container traffic at Duisburg rose by 52,000 TEU to 351,000 TEU. From a much smaller base, container traffic at Ludiwgshafen and Mannheim increased even faster, by 29.5% and 25.2% respectively. There is tremendous potential. In national terms, only 6.2% of all cargoes transported by inland vessels moved in containers, compared to 34.4% in the seagoing transport sector. Duisburg is investing heavily in intermodal rail and container terminal infrastructure, with a planned spend of €155.3M for the period 2006-8.Erich Staake, chairman of Duisburger Hafen AG, said that €70M is being allocated this ficsal year, mainly twoards preparion of the Logport II area. 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The sharp rise was mainly due to a surge in shipments of forest products and steel pipes (the pipes are handled with vacuum attachments to avoid damage).To increase capacity, BLG is considering reclaiming Lankenaur Hafen, to provide two more berths and another 112,000 m2 for storage. The project, costed at €30M, would facilitate co-operation with GVZ Bremen 3-high stacking is now possible on the Dortmund-Ems Canal as far inland as the Dörpen trimodal facility To stimulate inland waterway container transport, the federal government has decided to invest a total of E457M in new and improved infrastructure. This has been welcomed by the president of Germany’s Inland Shipping Association Heinz Hoffmann, but he believes that even more should be invested in the next 2-3 years. 3-high Thanks to the raising of two bridges on the northern section, containers are now moving in three tiers on barges on the Dortmund-Ems Canal between the seaports of Emden, Leer and Papenburg and the GVZ Dörpen inland trimodal port. Air drfat has been increased to 7m with an investment of €1.5m. “In normal draft condition we can now have 3-high stacks on barges for more than 300 days per year,” said Holger Giest, head of the local shipping authoritiy in Emsland,. This is a federal waterway, but Emsland cut the project lead time by arranging the prefinancing itself. “Our hinterland connections via the Ems to ports in Lower Saxony and the Netherlands have profited greatly,” remarked Andreas Bullwinkel, MD of Niedersachsen Seehafen. Similar improvements have been mooted as far upstream as Oldenburg, but are unlikely at this stage as traffic levels are too low. The Port of Minden is extending its existing trimodal terminal by about 13,500 m2 to cater for increasing container traffic. Throughput last year rose to 16,000 TEU and, says managing director Hans-Jörgen Hansch, the extra capacity should be sufficient until about 2012-2015. The expansion programme includes a second rail spur near the quay to enable containers to be transloaded directly between wagons and barges. Similarly, Berliner Hafen- und Lagerhausgesellschaft mbH (Behala) is to enlarge its trimodal container ter minal in Berlin Westhafen. Capacity will be doubled and will cover the total quay length of basin No. 1. A new logistics centre will also be built.The aim is to ensure the long-term viability of the Westhafen as a leading inland port for Berlin and the GVZs in Brandenburg. The extension works will include railway tracks, crane rails and operational areas. Work commenced this month and should be completed by December. The Westhafen occupies 17.3 hectares, Behala is investing around €5.5M in the Berlin Westhafen trimodal facility MA Esta August 2006 Section 4 13/9/06 4:43 pm Page 27 WorldCargo news GERMANY: PORT DEVELOPMENT/INTERMODAL Polzug Intermodal growing It is now 15 years since Polzug Intermodal was established and, from a throughput in its first year of operation of just 4800 TEU, the German-Polish intermodal rail operator expects its traffic this year to pass the 100,000 TEU mark for the first time. Hamburg-based forwarder Egon Wenk and HHLA developed the concept of a regular block train service in 1991, to avoid truck congestion on the road to Eastern Europe, in particular at the Polish/ German border. The idea behind it was to connect the port of Hamburg with Warsaw on a fast, cost-effective and reliable basis. Walter Schulze-Freyberg was appointed to the job and he is still the managing director.The company shares were originally divided as follows: HHLA 40%, Spedition Egon Wenk 20% and Polish Rail (PKP) 40%.Today’s shareholders are HHLA, PKP, Deutsche Bahn (Stinnes AG), with equal, one third shares. nal information systems that are connected to Polzug’s own block train operating system. Data are transmitted electronically and customers can correspond with Polzug by Edifact. To compete even more strongly with feeder services in the highly competitive Baltic market, last year Polzug opened representative offices in Detroit and Seoul, to market its services directly to US and Korean shippers. Its efforts are paying off and new rail links will be established later this year to Polish destinations from both Hamburg and Rotterdam. ❏ age service. Door-to-door delivery can be provided throughout Poland. Polzug has expanded beyond the Germany-Poland axis and covers destinations in Moldova, Ukraine, Russia, the Caucasus and Central Europe, from Rotterdam as well as from Hamburg and Bremerhaven, and it has its own offices in a nuber of regional centres - Kiev (Ukraine), Poti (Georgia), Baku (Azerbaijan) and at Malaszewicze (Poland/Belarus border). At Slawkow, too, containers can be switched between broad gauge and standard gauge rail cars. The inter modal ter minals are equipped with modern container termi- Polzug Intermodal’s terminal at Wroclaw National network Polzug today serves eight terminals in Poland, located in leading industrial and trade centres, in Warsaw, Poznan,Wroclaw, Lodz, Katowice and Gdansk. Its Polish affiliate Polzug Intermodal Polska Sp. zo.o offers a wide range of services for containers and swap bodies.These include handling, depot operation, container repair, reefer plugs, etc. Customs agencies and state customs offices are also located at the terminals. With its own truck fleet on site, Polzug Intermodal can, if the customer wishes, provide local dray- HD Crawler Cranes • Crawler Cranes • Handling Machines • Telescopic Cranes • Harbour Cranes • Truck Cranes of which the the container terminal accounts for 17,000 m2.Throughput is currently around 50,000 TEU/year and a heavy lift crane is available as well as a trimodal gantry crane. The new investment is put at E5.5M. Köthen raiser The Port of Magdeburg has acquired a new container crane from Kranbau Köthen for its new “Hanse” trimodal container terminal currently under development. The first pieces of the widespan (50m gauge) crane arrived on barge from the inland Port of Aken at the end of April. The crane has an SWL of 41t under spreader and 57t under hook. Waterside outreach is 25m, backreach 18m, with 1 over 4 stacking. Throughput has been increasing sharply at Magdeburg, located at the “cross waters” of the Elbe and Mittellandkanal. Container barge traffic potential has been largely untapped and the new terminal, reportedly backed by leading logistic operators, is aimed at addressing that. The new terminal will have a CY occupying 4500 m2 and a separate hazardous cargoes CY of 2850 m2. A heavy load area occupying 60m x 20m alongside the quay is designed for pieces up to 500t. In total, the port is investing €34.5M in a 40-hectare development area that will boast 1400m of new quay, 3500m of railway track and a 1.7 km long connecting road to the motorway network. Kranbau Köthen, part of the Georgsmarienhütte group, is increasingly using the Port of Aken, located just 15 kms from its plant, for deliveries wherever possible, instead of relying on outof-gauge road transport. The company builds a wide range of cranes but is best-known internationally for overhead cranes in the steel industry, where business has been booming recently. A contract for eight “chargier” cranes was wn recently from a leading steel mil in Italy. Demand for portal gantry cranes is also on the increase. Last December Kranbau Köthen supplied an intermodal RMG to the Hoyer combi-terminal in Schkopan, equipped to handle swap bodies/swap tanks as well as ISO containers and tank containers. Two portal cranes were also delivered recently to steel outfit Profila Arbed in Luxembourg. The company has taken on new workers and trainees and is updating production halls. A new transformer station and a new electrical components workshop have alreasdy been built. ❏ August 2006 ! NEW Leading through Innovation ■ easy ■ cost effective ■ versatile ■ powerful Please contact your nearest distributor: E.H. Hassell & Sons Ltd. Stoke-on-Trent SYGMAT Gretz-Armainvilliers I.M.B Maskiner AS Lillestrom ScanBalt Crane AB Sollentuna UNITED KINGDOM FRANCE NORWAY SWEDEN Tel.: +44-1782-644299 E-Mail: [email protected] Tel: +33 16451 1617 E-Mail: [email protected] Tel.: +47-63 87 88 30 E-Mail: [email protected] Tel.: +46-83 56 900 E-Mail: [email protected] SENNEBOGEN LLC Charlotte, NC Top Lift Enterprises Inc. Ontario KWINT MADI JVM Moscow Region USA CANADA FORSEN Machinery Services & Trading INC. Istanbul TURKEY Tel.: +1 704-347-4910 E-Mail: [email protected] Tel.: +1 905-662-4137 E-Mail: [email protected] Tel.: +90-212-29267-83/84 E-Mail: [email protected] Tel: +7 95 9166118 E-Mail: [email protected] SENNEBOGEN Maschinenfabrik GmbH Hebbelstrasse 30 • D-94315 Straubing Tel.: +49 (0) 9421/540-144 / 146 / 150 Fax: +49 (0) 9421/ 43882 E-Mail: [email protected] RUSSIA further Partners in: ARGENTINIA AUSTRALIA BALTIC STATES BULGARIA CHINA CZECH REPUBLIC DENMARK FINLAND ITALY IRELAND KOREA NETHERLANDS POLAND PORTUGAL ROMANIA SPAIN UKRAINE ... ... for your nearest distributor please visit: www.sennebogen.com 27 Section 4 13/9/06 1:35 pm Page 28 WorldCargo news RUSSIAN FEDERATION: PORT DEVELOPMENT Equipment investments on the up and up The Commercial Seaport of Saint Petersburg (MPSP), now whollyowned by Russia’s third largest steel producer Novolipetsk Metallurgical Works (WorldCargo News, February 2006, p36) has assigned more than US$50M towards renewal of its handling equipment and motor transport fleet. As previously reported, MPSP is a holding for a number of stevedor ing fir ms in Saint Petersburg, including First Stevedoring Company, Second Stevedoring Company, Fourth Stevedoring Company and Timber Stevedoring Company. Together they account for about 23% of all the cargo handled in the Big Seaport of Saint Petersburg. Last month, MPSP acquired a 28t ro-ro FLT from SMV Konecranes for Fourth Stevedoring Company (FoSC). This followed the earlier arrival of two Volvo L60E wheel loaders - the first acquisitions for FoSC under the new programme. The loaders have a bucket capacity of 2.1 m3 and are mainly for alumina dumping and hold clean-up. The main operators in Russia’s biggest Baltic general cargo port are gearing up to cope with rising traffic In June First Stevedor ing Company (FiSC) and Second Stevedoring Company (SeSC), respectively received five TCM FD 70Z8 FLTs and one TCM FD 100Z8 FLT, supplied through Saint Petersburg-based SKAT (SoyuzKomplektAvtoTrans). FiSC’s new 7-tonners are used to handle coils and palletised goods, while SeSC’s 10-tonner is used for general cargo and empty container handling (20ft fork pockets). In May, three 8t TCM FD 80Z8 FLTs were acquired for SeSC for a reported price of US$218,700. These are used mainly for handling baled aluminium. MPSP said at the time that it had opted for Japan-made FLTs in this class as they offered the best combination of engineering, quality and price. in Russia is First Container Terminal (FCT), part of National Container Company (NCC). At present NCC is a joint venture of Severstaltrans, the logistic arm of giant steel maker Severstal, and UK-based oil trader First Quantum. However, it is understood that they are seeking to dispose of four of the six terminals in NCC’s network for US$400M. In any event, throughput at FCT has increased 5-fold since the company began operations in 1998, reaching 722,427 TEU last year. In the first quarter of this year, traffic was 181,915 TEU, up another 19.8% up year-on-year. FCT has been enhancing and enlarging its equipment fleet since 1998, but its spend has gone up markedly in the past 2-3 years to keep pace and facilitate further growth despite the relatively small “footprint“ of the terminal. The goal is to achieve a capacity of 1M TEU/year by 2008. First things first The biggest container handler not only in Saint Petersburg but also Last year FCT invested US$6.3M in handling equipment upgrading and renewal, or almost twice as much as in 2004. Investments in 2004 included two Kalmar 40t RTGs and four Noell straddle carriers. Last year, after a competitive tender that attracted bids from Europe, Russia and China, it ordered three RMGs from Kaliningrad-based Baltkran for its intermodal yard. Number one Baltkran is easily Russia’s most important supplier of intermodal RMGs, including deliveries to railyards in the Saint Petersburg region (and seismic designs able to withstand conditions up to Richter 8, for Kamchatka) and has started to market its proven RMGs in Western Europe as well. The three RMGs for FCT are supplied with a heatable cable chain for the trolley to ensure reliable operation in high humidity SEAMLESS TRANSPORTATION We c o n n e c t g r o w t h m a r k e t s ! HAMBURG BREMERHAVEN ROTTERDAM Tallinn Let`s go east! Moscow Riga Vilnius Minsk Gdańsk Hamburg Bremerhaven Rotterdam Mława Poland Kiev Łódź Warszawa Gliwice Wrocław Sławków Katowice Germany Kishinev Poznań Poti Baku DOOR TO DOOR INTERMODAL CONTAINER TRANSPORTATION small quantity big quantity flexible POLZUG Intermodal GmbH Container Terminal Burchardkai Bürogebäude 1 D-21129 Hamburg Phone: + 49 40 - 74 11 45-0 Fax: + 49 40 - 74 11 45 45 E-Mail: [email protected] 28 one stop shopping POLZUG Intermodal GmbH Senator-Borttscheller-Straße 10 D-27568 Bremerhaven Phone: + 49 471 - 948 47 30/31/32 Fax: + 49 471 - 941 28 15 E-Mail: [email protected] POLAND ESTONIA LATVIA LITHUANIA BELARUS UKRAINE MOLDOVA MONGOLIA RUSSIAN FEDERATION GEORGIA ARMENIA AZERBAIDJAN KAZAKHSTAN UZBEKISTAN TURKMENISTAN KYRGHYSTAN TADJIKISTAN AFGHANISTAN www.polzug.de POLZUG Intermodal POLSKA Sp. z o.o. ul.Wilcza 46 PL-00-679 Warszawa Phone: + 48 22 - 336 34 00/ 03 Fax: + 48 22 - 336 34 16/18 E-Mail: [email protected] Widespan RMG delivered by Baltkran to Shushary rail station, Saint Petersburg region, last year. The company has now booked an order for three RMGs for Russia’s busiest container terminal, First Container Terminal in Saint Petersburg conditions in summer and in temperatures down to - 30 degC.They have an SWL of 45t under spreader and are fitted with Siemens drives and controls, with touch screens in the cab and displays of crane management and monitoring data. The diagnostic data can be transmitted to Baltkran via modem; a separate line is provided for the spreader. As far as spreaders go, Baltkran has tended to fit its own design or source them from Ram. Indeed, Ram has a recent order from Baltkran for five all-electr ic spreaders, two of which have a slew ring for rotation; four are destined for Kaliningrad (where FCT’s RMGs are being built) and one for Vladivostock. The RMGs will be shoptested in Kaliningrad and shipped erect in one sailing. For this pur- pose, Baltkran has fitted bogies sets that can be rotated through 90 deg, a practice that was adopted when it fabricated 10 RMGs for the (then) Preussag Noell that were shipped fully-erect to APL’s Pier 300 Los Angeles terminal in 1997. Technical co-operation with Preussag Noell and Lukoil provided a tremendous boost for Baltkran in the uncertain period after 1990 when the old USSR broke up.The company, managed since 1985 by Oleg Yermolaev, responded to the challenges and taken advantage of the opportunities. Other OEM collaborators include Kalmar and Kranbau Eberswalde, but Baltkran’s activities as an OEM in its own right in various crane fields in Russia/CIS markets are as important as its subcontracting and license work. Baltkran is not the only “lo- Reach stackers for Nutep Novorossiysk Nodal Transporting and Forwarding Company (Nutep) in the Port of Novo-rossiysk has taken delivery of its first Fantuzzi CS 45KM reach stacker for laden container handling. In March this year, Nutep signed a contract for the delivery of a Ferrari F378.5 laden handling reach stacker, its fifth reach stacker from CVS Ferrari. Three F 278.5 units, understood to have been acquired second-hand, have been operated by the company since its launch in April 2004. Nutep is jointly owned by NCC and Novorossiysk-based transport group Delo. It is not clear whether Nutep is one of the interests that NCC’s owners Severstaltrans and First Quantum want to sell. Nutep is one of three container handling fir ms in Novorossiysk - although the other two have consolidated under the NovorosLesPort (NLE) banner. As previously reported (WorldCargo News, March 2006, p1 and June 2006, pp20-21), NLE is developing a new container terminal and is the first Russian operator to order quay cranes and yard cranes from ZPMC. It also committed to a new ground handling fleet, with orders placed with SMV Konecranes for a total of 19 FLTs and reach stackers. Nutep says it will increase its capacity to 560,000 TEU. It plans to increase the working area to 253,000 m2 and expand the CY to 12,450 TEU ground slots. The berth would be extended to 970m by taking over the adjacent Nos. 37 and 38 quays that will be able to accommodate vessels up to 4000 TEU. If both Nutep and NLE proceed according to their announced plans, Novorossiysk would have an installed annual capacity of more than 900,000 TEU by 2010. Recently Mafi reported that it had received an order for seven MT 32 ro-ro tractors for an operator in the Port of Novorossiysk.This deal was facilitated by an exclusive distribution agreement that the Germany-based terminal tractor manufacturer reached in February with SKAT (SoyuzKomplektAvtoTrans). Saint Petersburg-based SKAT also represents Japan’s TCM and Sweden’s Atlet in Russia, took over from Mafi SKAT is marketing and selling Mafi terminal/ro-ro tractors from 25t to 36t fifth wheel capacity and its various port and industr ial trailer, rolltrailer and gooseneck designs throughout Russia. It is also supplying spare parts, rendering guarantee services and offering technical and consulting support to the customers. Finally, two more Gottwald HMK 170G harbour mobile cranes recently arrived at the Port of Vladivostock , bringing the number of Gottwald harbour mobile cranes at this port to six. In the past three years, Gottwald has supplied 15 cranes to Russian operators, mostly harbour mobile cranes but also some units of the HSK rail portal-mounted type that was indeed originally developed for the Russian market. The latest two cranes in Vladivostock, each reportedly valued at around US$2.5M, $2.5M), are part of the strategic plan of the management of the Merchant Seaport of Vladivostock (VMTP) to develop the locally-based Far East Container Terminal (DVCT). VMTP’s director general Vyacheslav Pertsev says that the goal is to be handling 160,000 TEU/ year at DVCT within three years. To that end, the port has been reconstructing its facilities, as well as upgrading and replacing handling equipment.VMTP future projects specify reconstruction of berths Nos. 3 and 4, erection of a multitier parking lot at the rear of berth No. 4 and construction of what would be the largest logistics centre in the Russian Far East. ❏ August 2006 Section 3 7/9/06 5:41 pm Page 29 WorldCargo news RUSSIAN FEDERATION: PORT DEVELOPMENT Kaliningrad goes fishing for containers The Sea Fisheries Port of Kaliningrad (KMRP) has adapted to changing market conditions and recently began handling general container traffic.“We looked at our activity in 2004 and 2005 and realised that transit cargo was passing us by due to the competitive rates for Belarus o/d flows via Lithuania,” remarked KMRP director general Andrey Krayniy recalled.“We drew up new plans for modernisation and reconstruction...containers are the most promising line of development for us.” To start with, KMRP has acquired three Linde HTD 45t reach stackers, enabling it to handle an estimated 1400-1600 TEU/week. Some “big ticket” items are due for completion towards the end of this year, including renewal of the crane rail beds on the quay and some of the rail sidings. A new 1200 hp tug is to be acquired and the port will also modernise its communications system, including installation of a fibre optic cable network. Good response KMRP’s initiative has reportedly met with a good response and it is handling a wide range of containerised cargoes, including chemicals and reefer goods, as well as other unitised general cargo. It wants to attract other cargoes such as paper pulp and components traffic, as there are a number of assembling plants located in the Kaliningrad free economic zone. Operators calling at KMRP include Maersk, Kursiu Linija and its Russian affiliate Rechdan, Norway’s Green Reefers and Andrex, a Russian company that specialises in transport of agro-industry chemicals. KMRP handled a total of 1.678 mt in the first half of this year, 3.4 times more than in the first half of 2005. Net profit more than doubled to R6.192M (US$230,000). Bulk cargo traffic, led by dry chemicals, increased by 60%, but KMRP remains concerned about the shrinking volume of Belarussian fertiliser exports, due to strong competition from the Port of Klaipeda. KMRP has reportedly reached agree- ment with Belarus’ biggest producer of potash to bring its handling rates into line with those in the Lithuanian port. This involves co-operation between KMRP and the other big player in the Kaliningrad region, the Merchant Seaport of Kaliningrad (KMTP). It is considered that using both KMRP and KMTP ter minals would mean speedier delivery and wagon turnaround, and double storage capacity to 30,000t. Even so, Belarus potash moved over Kaliningrad has to transit via Lithuania. Baltkran-built, 50t Condor crane from Kranbau Eberswalde, supplied to KMTP in 2004 cal kid on the block” supplying Russia’s port operators. It is understood, for example, that SevMor-Montazh has received orders for two more 32t “Aist” (stork) cranes, this time from Universal Transhipment Company in UstLuga. Also last year, FCT ordered eight 40t straddle carriers, four each from Kalmar and Noell, to bring its fleet of straddle carriers up to 29. The Noell machines were delivered in pairs last August and September.The first two Kalmars arrived in October and the second pair in May this year. True Quality More for Les PetroLesPort (PLP), the second container handler in Saint Petersburg, is also investing heavily in new equipment, as part of a planned expansion programme up to 2010. PLP handled 196,522 TEU in 2005 and aims to reach 500,000 TEU/ year by 2008. Following the delivery last year of two Liebherr LRS 645 reach stackers, this April four new Liebherr RTGs were delivered and they were commissioned in June.As previously reported, these are the first RTGs supplied by Liebherr in Russia. The 40.6t SWL machines are of 6+ 1/1 over 5 configuration and are of Liebherr’s 16-wheel design. PLP’s deputy director general Aleksandr Svetlichny said the price was between €1.3M and €1.5M. Other recent investments by PLP include a Liebherr LHM 400 harbour mobile crane, one RTG from KCI Konecranes, six Kalmar reach stackers and two Terberg terminal tractors. Svetlichny points out that a large-scale reconstruction of the terminal was carried out in 2004-2005. Specifically, the 300m long berth No.46 and the 190m-long Berth No. 47 were completed in December 2004 and June 2005 respectively, both a with a depth alongside of 12.5m, sufficient for the largest containerships operating in the Baltic. As previously reported, five ship-toshore gantry cranes were acquired from Hamburg operator HHLA. The three Takraf and two Kocks cranes were formerly at the old Unikai terminal. They started operations at PLP this spring. Trust. Strength. Performance. Svetruck – True Quality New crane Now PLP has ordered a new ship-toshore gantry crane from KCI Konecranes. The 50t SWL Panamax crane (38.5m outreach) is slated for delivery in the third quarter of next year. KCI Konecranes has already supplied two RTGs to Multi-Link, the Containerships/Forth Ports operation on Kronstadt Island, It has now booked a 50t SWL widespan, Panamax crane for this terminal. Apart from containers, PLP handles ro-ro traffic, timber and refrigerated cargoes. Throughput in the first six months of this year came to 3.606 mt, up by 1.7% compared to the same period of last year. General cargo traffic rose 3.3% to 267,000t, refrigerated cargo by 67.4% to 103,600t and containerised cargo by 44.9% to 1.557mt. As PLP’s name indicates, the company was founded on forestry products (mainly sawn timber and roundwood), but ironically the volume of this traffic went down by 29.3% to 784,100t. ❏ August 2006 Forklifts 10-52 t • Logstackers 9-28 t Svetruck AB Box 321, Långgatan 29, SE-341 26 Ljungby, Sweden Telephone +46 372 866 00 Telefax +46 372 824 50 www.svetruck.com 29 Section 3 1/9/06 10:50 am Page 30 WorldCargo news RUSSIAN FEDERATION/POLAND: PORT DEVELOPMENT KMTP has been handling containers for more than 10 years, when Kursiu Linija started calling. From just 1000 TEU in the first year, the line moved about 100,000 TEU over the port last year, feedered over Rotterdam, Bremerhaven and Hamburg. The increase in traffic has led to capacity constraints and, as part of its drive to improve service, in March this year KMTP split off container handling by forming a new division, Kaliningrad Stevedoring Company (KSC), run by Vladimir Kalinichenko. It is understood that KSC has ordered up to 15 new terminal tractors and 35 port trailers.As well as being able to carry 1 x 40ft/2 x 20ft containers, the trailers reportedly incorporate a central cradle for transporting steel coils. A new crane is also said to be on order. The terminal currently operates with 50t Condor cranes from Baltkran, produced in technical co-operation with Kranbau Eberswalde. The KSC terminal, located within the free economic zone, has a 535m-long quay equipped with 40-53t capacity portal cranes, backed by 95,000 m2 of open storage, together with covered warehouses of 23,000 m2. Local competition As noted, KSC faces stronger local competition from KMRP, but the local shipping market has also become much more competitive. Kursiu Linija, acting mainly for Maersk, was the only regular container line calling the port until the start of this year, when its “monopoly” was broken by Trans-Baltic Line (TBL), the general agent of London-based Mann & Son. TBL was followed by MSC, CMA-CGM, Hamburg Süd,APL, Cosco and Hapag-Lloyd. These “newcomers” have signed contracts with KSC, while Kursu Linija and Maersk switched their Kaliningrad region operations partly to Baltiysk and, as noted, partly to KMRP. Kursiu Linija cited the need for more space to allow for growth in traffic. ❏ Spoilt for choice soon in Poland? HPH’s Gdynia Container Terminal (GCT) opened for business in March this year, yet there are signs that the fast growth of container traffic over Polish seaports in the past few years is slowing down. Baltic Container Terminal (BCT) in Gdynia, which has accounted for practically all the country’s lo- lo container traffic, grew very quickly in the first two years after ICTSI took over, but last year growth slowed to just 6%, with throughput reaching 395,757 TEU. In comparison, growth in the Baltic region’s top 15 ports (including Gdynia) averaged 15%. Traditionally, Gdynia’s main competitor has been inland transport over the “green border” to Hamburg and, if anything, this competition is growing, with Rotterdam also now penetrating the Polish hinterland. It is estimated that about 80% of Polish sea forwarding activity is carried out by non-Polish firms AMBA DOCKSIDE TECHNOLOGY LTD MANUFACTURE & SUPPLY OF STRADDLE CARRIER PARTS Established in the early 1990’s to support the container movement operations worldwide, with a supply of goods at very competitive rates. - Angle Drive/Differential Refurbishments - Comprehensive range of Electrical & Mechanical Components - Manufacture of a number of parts incorporated in the Spreader & Drive Trains for the leading Straddle Carrier Brands Please browse our website at www.ambadockside.com for further information or contact us direct on Tel; +44(0) 23 9223 1200 Fax; +44(0) 23 9226 7047 E Mail address; [email protected] Amba House, 1 Parkwood Centre, Waterlooville, Hampshire, England PO7 7HT with long-standing relationships and dealings with non-Polish seaports. Furthermore, in comparison to their “western” counterparts, Polish seaports are hampered by poor access, the road network in particular. This plays into the hands of efficient intermodal rail service providers such as Polzug and ERS Railway. DCT Gdansk will be the first post-Panamax container terminal in the Baltic proper. The three cranes that DCT Gdansk ordered from Liebherr last year will cover an 18-wide deck stow (60t-52m) and the terminal is designed to handle ships in the 6000 TEU range.When it opens in June 2007, it will be served by a 16.5m deep channel.As the Baltic is non-tidal, deep-drafted vessels will be able to berth at any time. Last month, DCT Gdansk’s CEO James Sutcliffe stated: “When we open our doors for business in June 2007, we expect our first customers to be regional shortsea and feeder operators employing ships of up to 1200 TEU. “But the message we are sending out today is that when the major carriers decide to add a Baltic call to one of their many service strings, we will be ready.” Lots of Ro-Ro transpor t and no jetty available? Rent, lease or buy one from Janson! BRIDGING Janson Bridging B.V. Veerdam 7, 5308 JH Aalst (Zaltbommel) Tel: +31 (0) 418 67 77 00 Fax: +31 (0) 418 67 77 09 E-mail: [email protected] ISO 9001 http:\\www.jansonbridging.com Accredited by the Dutch Council for Accreditation ./6!4%#( The impressive performance potential of TK16 EVOLUTION comes primarily of top breaking forces, the most flexible allround behavior available and a long-lasting service life. Ultimately this product is the ideal combination of components and perfect quality. Evolution cannot be stopped. ASK FOR YOUR LOCAL TEUFELBERGER AGENCY! TEUFELBERGER Seil Ges.m.b.H. Tel.: ++43-7242-615-0 [email protected] www.teufelberger.com 30 THE NEW TK16 EVOLUTION BEATS THEM ALL No Delay! Delivery Direct From Stock Gdynia: Both GCT and BCT (right) are thought to want the undeveloped part of the Bulgarskie up to the boundary with the elevated highway (top right) The Polish domestic market is expected to generate the largest proportion of DCT Gdansk’s business. According to the company, “the increasing cost of road transport means that trucking imports and exports through neighbouring countries such as Germany is not a long-term option.” Transhipment Other business is expected to come from transhipment traffic. Given the deepwater capability and ice-free status, Sutcliffe believes that DCT Gdansk will make an ideal hub port for the region: “We know that the idea of using DCT Gdansk as a hub is attractive to regional carriers sailing from North West Europe and the UK. We will offer 24/7 working, so these lines will be able to use larger vessels and have the confidence that they will be turned round quickly.” On start-up next June, DCT Gdansk will be capable of handling around 250,000 TEU/year based on its three cranes backed by five Liebherr RTGs in the CY. The ro-ro berth - a kind of insurance policy since there is no shortage of intra-Baltic ro-ro traffic to target - will contribute another 160,000 units of capacity. As and when demand warrants, extra cranes will be added to bring Phase 1’s lo-lo capacity up to 500,000 TEU/year. Under Phase 2, still on the drawing board, capacity would rise to 1M TEU, although, “the timing of the decision to commence construction of this next phase will be determined by market demand.” As previously reported in WorldCargo News, the cranes and RTGs will be built by Liebherr in Ireland - not Rostock - and erected on site in Poland.The first cranes are due to arrive in February next year and be ready for driver training in March. Same at first By its own admission, DCT Gdansk will for some time be competing for the same type of ships and services as Gdynia and Szczecin-Swinoujisce, both of which can offer lower prices based on smaller commitments and/or already amortised investments. But Sutcliffe is convinced that as container volumes build in the Baltic, it will be just a matter of time before some of the big carriers decide that direct calls are viable. “We expect to see ships of 3500 TEU to 4000 TEU berthed alongside by 2010, if not sooner. “DCT Gdansk has been designed to serve not only the Polish domestic market...but also the many smaller Baltic ports, most of which are draft-restricted and not ice-free. [It] will become an important hub for the region. Even if these forecasts prove correct, DCT Gdansk may face competition from SzczecinSwinoujscie for the business of handling bigger ships. The Swinoujscie container terminal, operated for the port by VGN Polska, is already easily the deepest in the southern Baltic. It is being enlarged and “geared up,” and the outlay to be recouped is lower than the cost of developing DCT Gdansk from scratch. The terminal is also well-placed to serve Berlin as well as Polish o/d flows. The difficulty for Swinoujscie, on the other hand, is that ships have to use a restricted, 64 km long approach. In contrast, DCT Gdansk is right on the sea and has 2m more depth. In any case, for the first 2-3 years at least, DCT Gdansk will be competing for the same type of business that Gdynia dominates today. The hinterland of Gdansk and Gdynia is the same, as they are about as separable as Castor and Pollux. The simple fact that shipping lines now have a choice in Gdynia, GCT or BCT, means that the prices they are offered there will be as sharp as a new pencil, particularly as both operators are targeting the expansion area available between the Bulgarskie and the elevated highway, and the port authority will base its decision on which operator needs the extra capacity most. Confident DCT Gdansk is of course aware of the competition, but marketing director Derek Peters is bullish. “DCT,” he says, “is planning and will offer the best solution for efficient shipside and landside operations - and that in a market with current 18% growth and ship owners thinking about deep water operations.” Peters accepts that the planned A1 highway will benefit Gdynia as well as Gdansk, but believes its development will be more significant for operations with larger Baltic tonnage than current activities using existing roads. “DCT is poised to match their thinking and planning,” he says. Peters states that most of the comments from shipowners worldwide and local Polish agents is positive.“If DCT provides - and it will - an efficient shipside operation, a speedy service to road hauliers and rail operators, with good co-operation from Polish customs, it will rapidly establish itself next year and it offers the best potential in the southern Baltic for the future.” ❏ August 2006 Section 3 8/9/06 3:42 pm Page 31 WorldCargo news CARGO HANDLING Shuttle carriers and “mega” terminals The concept of a fast-cycling, 1 over 1 straddle carrier to shuttle containers between the quay cranes and the waterside end of an automated stack was first developed several years ago for the proposed MSC automated terminal that was to be developed by (the then) Hessenatie at the new left bank complex in Antwerp. Kalmar called its machine the “Shuttle Carrier,” while Noell termed its design “Sprinter Carrier.” Both designs were aimed at automated terminals as an alternative to passive AGVs that have no handling autonomy and cannot provide any buffering, so the quay cranes cannot be isolated from delays in the stacks. To date, neither Kalmar nor Noell have received orders for shuttle carriers related to that original purpose of serving automated,“mega” terminals. Instead, they have received “niche” orders from conventional, manned terminal operators in connection with some special purpose for which a low height straddle carrier was deemed to provide the most costeffective solution - eg Finnsteve Turku, MCT Tallinn, Sabah Ports’ Kota Kinabalu (all Kalmar), Port of Duisburg, SCT Southampton (both Noell). tion because so many of the “mega” terminals in Europe are still stuck in the planning stages. CTA in Hamburg is operational, but again delays in the planning process meant there was no time to test automated shuttle carriers and CTA opted for the proven AGV solution. Annala says CTB will be the “closest thing to a mega terminal,” with automated stacking cranes and a decoupled quay-stack transfer, but it will continue to use its large fleet of conventional straddle carriers for the quay-stack transfer as it makes the transition to automated yard stacking. Kalmar is convinced the shuttle car- rier concept will eventually be used in mega terminals and says an automated version of the design is used in the planning stages for most. While Kalmar is naturally disappointed not to get the order from APMT for its new terminal in Virginia, Annala says the bigger point is that APMT did extensive studies before deciding on the shuttle concept and it will be “the first mega terminal running with the right kind of equipment.” The shuttle carrier’s real competition in mega terminals is AGVs and they are much cheaper to purchase. However, shuttle carriers are more productive. As has been discussed several times before Industrial Sensors and again above, they are self-sustaining and do not need to wait for a crane. Kalmar calculates that a terminal needs less than half as many shuttle carriers as AGVs for the same level of productivity. Land savings Up-front capital cost is important, but Kalmar is trying to get operators to see the other benefits of the shuttle carrier system including a less land-intensive operation as well as buffering capability. Parking areas and travel lanes take up a significant amount of space at AGV terminals (cf 10% of the total land area at CTA). With less than half the number of Industrial Safety Systems Kalmar Shuttle Carrier in operation with Sabah Ports Auto Ident Portsmouth point Cost-effective In this respect, Noell is coming round to Kalmar’s thinking, as also adopted by Consens. Kalmar sees hydrostatic drive as the only real option for the shuttle carrier. “There has to be a price difference between a shuttle carrier and a conventional straddle carrier and this is not possible with a diesel-electric drive,” says Kalmar’s vice president, straddle carriers, Illka Annala. Work done several years ago by TBA Nederland (now part of Gottwald, but working autonomously to ensure neutrality) indicated that, because of its handling autonomy, a shuttle carrier is 2.5 times as productive as a tractor/trailer set (IMV) so, for example, four of them would do the work of 10 IMVs. So, a shuttle carrier could be 2.5 times as expensive as an IMV and the customer would still be “in pocket” because he has to pay four drivers instead of 10. But the economics become less attractive if the shuttle carriers have a high price tag. We’ll bring your containers into position. Our laser measurement technology keeps an eye on the action! Whether for positioning, volume measurement or collision prevention tasks: intelligent sensor solutions from SICK help you avoid unnecessary inefficiencies during container handling – and thus ensure significant competitive advantage in international showdowns. More first-class perspectives at: www.sick.com M, R & H Freiburg Ironically, the first order for shuttle carriers for an automated terminal has gone to “newcomer” Consens TransportSysteme. As previously reported (WorldCargo News, June 2006, p1), after comparative testing, APM Terminals (APMT) ordered 20 “Conspeed” machines with hydrostatic drive for its new automated terminal at Portsmouth,Virginia. Because APMT specified 60t SWL and the ability to handle just one 20ft in the fore or aft position of the twin 20 spreader, the Conspeeds will have six wheels. The inner two are not driven or steerable, so the corner wheels must be steerable as well as driven. Kalmar also offered a 6-wheel version of its Shuttle Carrier, SHC 250 or SHC 250 H.The SHC 250 H economises on tyre costs by using 16.00-25 size for the inner tyres, whereas the corner tyres are 18.00-33 size. Noell adopted a 6-wheel solution for its Sprinter from the beginning and considers that this decision has been vindicated by its competitors’ actions. There were several reasons why a 4-wheel design was rejected, says Hubert Foltys, head of project management at Noell, not least unfavourable driving behaviour and the trend to heavier loads (eg Twin 20s). Noell is developing a hydrostatic drive version of its Sprinter, to go alongside the existing diesel-electric version. It will provide “an alternative for potential clients that look for reduced initial investment rather than for the long-term benefits of the diesel-electric principle,” says Noell. Projects delayed As noted, Kalmar originally designed its shuttle carrier as a high speed quay-stack transfer vehicle to be used at large terminals instead of terminal tractors or, as an automated machine, instead of AGVs. Annala remarks that the shuttle carrier has not yet been used in this applicaAugust 2006 SICK AG • Auto Ident • Nimburger Str. 11 • 79276 Reute, Germany • Phone +49 7641 469-0 • Fax +49 7641 469-1201 31 Section 3 1/9/06 10:54 am Page 32 WorldCargo news vehicles, shuttle carriers are less land-intensive and traffic management is easier. Kalmar has calculated that with the shuttle carrier’s buffering capability a terminal can support the requirements of a large postPanamax vessel with a single ASC per block, whereas two ASCs are required for an AGV operation. There is, however, no redundancy with a single crane per block, but the cost savings at a terminal with 20 blocks would be significant. Alternative uses As noted, several terminals use shuttle carriers as a high speed drayage machine or, in the case of Sabah, for quayside buffer management and truck transfer. The applications show that terminals of all sizes can utilise its flexibility. Muuga Container Terminal in Tallinn, for example, is now operating with two RTGs and two shuttle carriers. Multi-trailers are used for the dray between the quay and the RTGs and the shuttle carriers transport containers between the stacks and the truck interchange area.The advantage is that the RTGs are not waiting for gate jobs and road trucks are kept CARGO HANDLING case and hydrostatic drive is actually easier to control and fine-position because automated machines are braked rather than driven into position. Kalmar’s own tests show that this is actually more accurate with a hydrostatic drive. Up and running Noell straddle carriers at APM Terminals’ Rotterdam facility out of the stacking area.The RTGs (Kalmar E-Ones) were delivered with a wider than normal service lane but most existing 6 + 1 RTGs would have to sacrifice a stacking row to gain the extra efficiency. Another application area where Kalmar sees the shuttle carrier having immediate benefits is in tandem (side by side) container handling. Landing two 40ft (or four 20ft) containers on adjacent chassis is difficult in tandem spreader operation. Kalmar says it usually involves slamming the container on one or both trailers and will quickly damage the trailers. Grounding the tandem containers 1.2-1.5m apart and then using shuttle carriers (one or two) to take them away would be faster and eliminate trailer damage, It would also speed up the crane operation because cranes can ground the containers without waiting for trailers. Electric or hydrostatic Gottwald now offers a diesel-electric AGV and it has been argued that a diesel-electric straddle carrier is easier to automate. For example, Patrick stated that although not the primary reason for switching to diesel-electric drive, it expected the design to deliver some benefits for automation when it ordered new machines for its pioneering Brisbane terminal in 2003 (WorldCargo News, December 2003, p21). However, Kalmar says that this has not proved to be the Automated straddle car r iers (autostrads) have been in operation for some time at Brisbane where Patrick has transferred all its business to the new terminal and 18 machines are handling around 23,000 TEU/ month. Kalmar considers that autostrads are a smaller step for a terminal to take than automated stacking cranes and is confident that within 2-3 years they will be in use at other terminals. Patrick planned to introduce autostrads at Sydney and then Melbourne, but it is not known whether its new owner, Toll, intends to proceed with this plan. The Kalmar-Patrick jv, Patrick Technology and Systems, set up to market autostrad technology to other operators, is still operating. Autostrads enable terminals to take a more cautious approach to automation as the capital cost can be more closely matched to volume. As for productivity, Annala says the limiting factor at Brisbane is now the quay cranes. Initially, productivity at the road truck interface was not acceptable but this has been resolved and gate service times are as good as or better than at a manned terminal. At Brisbane, trucks have to reverse into gate bays that are particularly deep, in order to accommodate ‘Super B doubles’ draying 4 TEU loads from the rail terminal, but the basic layout would work well at any other terminal. Kalmar has the maintenance contract at Brisbane but needs a full year to gather data before making any firm conclusions on maintenance savings through automation. However, based on its global experience, Kalmar reckons that maintenance costs at normal straddle carrier terminals are one third preventative maintenance, one third accident-related and one third repairs.Automation eliminates accident-related damage as well as saving fuel and reducing tyre wear. Fuel savings The increasing cost of oil has generated more interested in fuel consumption reduction technologies but fuel consumption, along with tyre costs, has always been an issue on straddle carriers. Through constant development in recent years fuel efficiency has improved from 30 litres/hour to 20 on diesel-hydraulic machines. The biggest development in fuel efficiency is diesel-electric drives, which use less fuel while giving more power. RTG suppliers are looking for a “quantum leap” in fuel efficiency using regenerative or stored energy, but the options are limited on lower-stacking straddle carriers. Kalmar says there is potential with the E-drive to capture the lowering and braking energy, especially on 4-high machines where the machine must drive the container low-slung for stability and hoist high for stacking. Kalmar is using regenerative systems in its 7th generation straddle, but does not favour using regen energy to reduce the size of the diesel engine, as operating speeds will suffer in cases where regen is not available. Accumulator One interesting development for diesel-hydraulic machines is a drive shaft with a hydraulic accumulator, from Permo Drive of Australia.The drive shaft stores energy generated during braking for use in the acceleration cycle. The technology was primarily developed for highway truck applications, but one unit is being tested on a straddle carrier in Australia. However, any fuel saving must be balanced against the extra cost and complexity. With machines now in use for up to 6000 hours/ year, operators may not welcome more components that could add to increased maintenance time and also be a source of downtime. V or in-line One area where Consens stands out from both Kalmar and Noell is its choice of engine, in that it has adopted a V configuration. It is fitting the TCD 2015, the latest V-8 engine from Deutz. Consens says that this Tier 3-compliant, water-cooled engine, with an output of 350 kW, vibrates no more than an in-line engine and it provides very high torque at low revs. Extensive tests indicate that in intensive operations of 5000-6000 running hours/year the engine should last for 8-10 years, with an overhaul after 20-25,000 hours. Deutz is reportedly happy to warrant a 2000h service interval, ir32 respective of the quality of fuel oil. The oil sump has a capacity for 65-l. Consens is prepared to modify the machinery platform for an in-line engine, but would probably need a multiple order to justify the cost. While aV engine is more compact, others argue, however, that “simple physics” favour an in-line configuration. Kalmar usually fits two 6-l Sisu engines in its CSC models, while a 12-l Scania is the standard offer for the E-drive and Shuttle Carrier. Cummins engines are frequently fitted in machines for the US. Of course machines for North America and most of Europe are Tier 3-compliant. All the same At one time Noell offered its straddle carriers with V engines from Deutz or Mercedes, or inline engines fromVolvo, Cummins or Scania. However, several years ago it standardised on the C12 inline engine from Caterpillar in its diesel-electric (ESW) machines. The results were so good, particularly in relation to vibration, noise, fuel consumption and the benefits of Cat’s worldwide service network, that Noell decided to switch to Caterpillar with the hydrostatic machines (HSW) as well. Caterpillar was developing a Tier 3- compliant version of this 12-l engine.Accordingly, the ESW and HSW are now fitted with the CANbus-controlled C13 engine. “We offer the market an engine that is perfectly adapted to the straddle carrier application across our range,” says Noell. “We are always looking for competitive advantages for customers and the Caterpillar engine gives outstanding performance combined with the lowest fuel consumption in the market and a genuinely worldwide service network.” Noell says its philosophy is to see a straddle carrier not as a number of parts connected on an assembly line, “but as a complex system that only performs in an optimised way when all parts are engineered to their core functions. We are continually improving the functions of each part and component with our suppliers, such as having real engine management on a straddle carrier engine or to work with direct drives wherever possible. “For this you need a stable partnership and not supplier-hopping, but in the end how Noell works together with a particular supplier is more important than who that supplier is.” New controls Noell machines are also now fitted with the Creon control system, which is based on automotive architecture. It comprises three, heavy duty mobile controllers with an extended temperature range and high shock resistance. The dispersed controllers are linked to each other via a CANbus backbone, and to a small-sized, industrial Linux PC with a display in the cabin. All major components in the straddle carrier - engines, inverters, operator’s control devices, encoders, etc - are networked to the CANbus, thus providing a multitude of information on condition and performance of each system. This provides, says Noell, an incomparable, flexible spectrum for peripheral devices such as remote diagnostics tools, maintenance and statistical data transfer, or DGPS tracking systems. Although Creon is derived from proven applications on Fantuzzi reach stackers and mast trucks, the hardware adaptation to the straddle carrier as well as the control software programming managed by Noell’s own engineers. ❏ August 2006 Section 2 1/9/06 10:09 am Page 33 Section 2 13/9/06 1:33 pm Page 34 WorldCargo news CONTAINER INDUSTRY IT investment crucial to leasing start-ups Though it is a mature business, the container leasing industry continues to be affected by the process of consolidation. One view is that in order to be a global supplier to the major container lines, a leasing company now needs to control a fleet of 1M TEU or more. The ongoing trend towards consolidation is illustrated by the recent absorption of the Gateway fleet by Textainer and the acquisition of Unit Equipment Services (UES) by Hong Kong-based GrandView Development. Industry observers are now speculating whether other, larger lessors may be next in the firing line. Against this background, however, smaller players continue to survive - and thrive - and the door is by no means closed to new entrants. Recent successful start-ups include Blue Sky Intermodal in the UK and XINES in Germany. Whatever the future may bring, what is certain is that new and existing companies alike can only continue to flourish providing they have access to funding. How often, though, do finance providers check that the lessors they lend to have robust systems in place to properly manage and track their assets? And what are the systems issues in particular for new com- pany start-ups and their financiers? These questions were put to a finance provider, a leasing company and a specialist systems supplier. Bankruptcy protection Looking at the issue from a finance perspective, a representative of a European bank providing specialist funds to the major leasing companies comments, “The industry is now quite mature and it is taken ‘as read’ that lessors have sufficient systems in place. Perhaps this issue has not had sufficient prominence when completing deals as it should have had. “Historic events have caused lenders to take steps to ensure they are suitably protected in the event of a bankruptcy, although fortunately these systems have not needed to be tested recently. “It is often assumed that the major liner operators that lease the equipment have sufficient back-up in place should anything go wrong. Most of the funding this bank provides goes to major lessors, whose own systems should validate clients prior to leasing to them. “The lessor is seen as the buffer between the financier and the operator in the event that the latter suffers a bankruptcy.” strate that robust software and systems are in place to control the customer billing process, money collection and container tracking. Ideally, Mornard would like to see these rigorous controls applied by all investors, whether banks or KG companies. Blue Sky Intermodal, he says, invested at an early stage in its development in software from specialist provider Real Asset Management (RAM) to ensure the company had a good container tracking system in place, that its revenue controls worked and that financial systems were transparent. Suitable systems Integral part The issue of having suitable systems in place does seem to be especially relevant to smaller leasing companies and start-ups. Geoff Mornard, one of the founders of Blue Sky Intermodal, notes that there is now plenty of funding available, especially in Germany, where new KG funds have been encouraged to expand from ship finance into containers. With these new funds, he observes, there appears to be less focus placed on any new company to demonstrate that it has suitable systems in place to manage billing and container tracking than that expected by the banks. The banks and the established KG funds, says Mornard, are a different matter. With these institutions, it is critical to demonstrate that the right controls and operating systems exist before finance will be forthcoming. Mornard also suggests that the process of applying for securitisation is even more rigorous and it is essential to demon- CAPITAL Lease, an innovative container leasing company, has a worldwide presence and a network of offices in the main shipping centres. With over 500.000 TEU, we are keen to maintain a young and high specification fleet. As our first containers reach 10 years, we wish to establish a dynamic sales division for the disposal of our own equipment and that of some of our clients. Container leasing software is “an integral part of the operational strategy in a leasing start-up,” says Keith Hotston, who oversees operations and IT as part of the senior management team at Blue Sky Intermodal.While there are many products available to help with certain business processes, he explains, “the only tool to properly administer a fleet of containers is bespoke leasing software. With this, we are able to focus on using various technologies to automate our processes and develop new ideas to further streamline our operation. “Starting out with a product that has scope for development also enables us to be creative, so that while we grow the company, we can continue to keep our resources to a minimum, thus improving profits,” Hotston says. Blue Sky migrated to RAM’s software from a “less superior system” that it had been using for a year beforehand, explains Hotston. “We allowed ourselves enough time to establish what we needed from a system, although we all had previous knowledge of what to expect, and in doing so we were able to create a specification for our requirements. The timing of our procurement and implementation was at the right level to ensure that we could comfortably populate the system with historical data without creating the usual nightmares that are often associated with systems migrations.” We are seeking candidates for the position of Deadly delay burg 006 Ham 2 l a d o Interm cember 5 - 7 De tand No. A30 at S visit us Please The 45ft curtain side is one of many specials that we design and supply together with equipment finance options. Dyrehavegårdsvej 18, DK-2800 Kgs., Lyngby, Denmark ./6!4%#( Vice President - Sales. Primary Responsibilities: • Build up the sales department incl. business plan, sales strategy, selection of personnel, customer portfolio, IT optimisation • Seeking trading possibilities and large transactions • Reporting to the Management • Development of procedures Requirements: • • • • • • • Minimum of five years in the container industry Broad management experience Ability to work independently Self-motivated and self-disciplined Dynamic and extroverted sales personality Exceptional communication and presentation skills Ability to travel If you are interested in this position, please send your resume to [email protected]. 34 Blue Sky invested in bespoke software at an early stage of its development It is not unknown for start-ups in the term lease business to delay investment in a proper leasing system until faced with the administrative challenge of managing the first wave of boxes coming offhire. This is not an approach that Hotston would advocate. “Our philosophy has always been to implement a system that we can grow into, rather than outgrow a system and be forced under pressure to switch.” Hotston explains that in setting up its RAM system early in the business cycle, Blue Sky’s activity was limited to creating new standing data (leases, containers, depots etc) and processing onhires, as well as migrating existing data from the previous system. “This was a manageable task, but still not to be underestimated because there is an element of ongoing billing, parallel entry and reconciliation to be considered during this time. The go-live process was well planned but nevertheless was also a varied and complex task. “To consider repeating the same task with the additional implications of off-hire, M&R and various other activities associated with master leasing is something that could potentially lead to real problems. I’m sure it’s been done before, but no doubt it would be far more time consuming and require much more resource and detailed management,” Hotston says. IT issues Having worked with a number dry freight container leasing startups in Italy, the Far East, Germany and the UK over recent years, RAM has had plenty of opportunity to gauge the issues and concerns involved in IT investment. “Usually as these are quite small companies and in start-up mode, they are reluctant to commit to the overhead of a dedicated IT person. Often it is the person that appears to know more about IT than his colleagues that takes on the responsibility,” observes RAM’s managing director, Keith Dolby. Among other factors, Dolby attributes RAM’s success in securing start-up clients to the fact that it does not simply sell software but also provides software and process consultancy to “look at clients’ operating procedures, clean up their server and provide back-ups.” Lack of familiarity with IT can also make start-ups nervous about committing precious funds to outsourcing specialist IT versus other business priorities. RAM’s job is to overcome such concerns and it deploys a range of measures to achieve this, including reference sites belonging to other clients and, perhaps more importantly, the option to “try before you buy” on a leasing package. Dolby explains that once the client is happy that the system gives them what they want, they then have the option of a purchase lease. “Given that our clients are leasing specialists, not IT specialists, this flexible approach is vital to create comfort,” he says. In previous times, when the shipping industry suffered a series of bankruptcies, staff salaries and redundancy payments were often early casualties of the process. As a consequence, the more entrepreneurial container logistics managers would depart with a print-out of all of the container locations around the world and then sell this information on to the respective leasing companies. Perhaps Mornard is right, therefore, when he suggests that the rigorous controls applied by banks should be adopted by all investors. ❏ August 2006 Section 2 1/9/06 10:10 am Page 35 WorldCargo news CONTAINER INDUSTRY Another contradictory year for box lessors The current year is presenting its share of challenges to the world’s container leasing industry, and not least on the investment front.With the return of greater market volatility, characterised by a much sharper fluctuation in dry freight box prices, investment timing has once again become highly critical. Many container lessors suffered in 2004-05, when they purchased boxes at peak prices only to see their value plunge again within a few short months. The dramatic fall in prices was, in part, caused by an earlier build-up of equipment at factories, which cut demand at a stroke and took more than a year to clear. Some lessors were subsequently forced to place equipment on lease at per diem rates that were not commensurate with the price originally paid. This is generating a relatively poor initial capital return - down to 13%, per five-year term, for some of the worst affected companies. Moreover, it is anticipated that these containers will likely remain “overpr iced” in compar ison to future newbuild purchases. Utilisation is holding at a record level in the container leasing sector but investment remains disproportionately low due to uncertainties about the movement of new box prices. For some lessors, inorganic growth is the order of the day 40% during the opening half of 2004, dry freight prices/lease rates climbed to their peak in early 2005. By then, the average price had surpassed US$2300 exworks per 20ft, which was an eight-year high, whereas the (20ft) lease rate was approaching US$1/day. However, they soon went into reverse and by early 2006, the average price was, at US$1450 per 20ft, back at its starting point two years earlier. It has since rebounded, again rising by over 40% (to top US$2000 per 20ft) by July 2006.The average daily 20ft lease rate had dropped below US$0.60 by early 2006, but was back above US$0.80/day within six months. Uncertain outlook The outlook for the remainder of this year is equally uncertain, with as many observers predicting a further upward movement in prices/lease rates as are expecting a fall. If they stay close to their present level, the current year will follow almost exactly the same pattern as occurred in 2004, when prices/rates started low but then climbed swiftly before levelling off. If they fall, the year would be more akin to 2005, although nobody is yet predicting anything like the drop that occurred this time last year. Instead, prices are expected to fall by 10% at most on their current level, while many still believe a rise (of 10% or greater) could be Cronos Tanks Global support Same old story • A complete range of capacities, designs and types world August 2006 the Henry F White Jr has announced that he is to leave the Institute of International Container Lessors (IICL) at the end of September after serving as its president for the past seven and a half years. A lawyer by profession, and a former Rear Admiral in the US Navy Reserve, White has been appointed executive director of the American Bar Association (ABA) with effect from October 1st. He will lead a staff of more than 900 and have overall management responsibility for staff operations at the ABA’s headquarters in Chicago, at its Washington, DC, office, and at programme sites in more than 40 countries around the world. White represented the IICL in numerous forums, including the International Mar itime Organisation (IMO), the World Customs Organisation (WCO) and the International Standards Organisation (ISO), while significantly restructuring the Institute’s internal organisation and finances during his tenure. He currently serves on the Department of Homeland Security’s Advisory Committee on Commercial Operations of Customs and Border Protection. IICL has already started the search for a replacement. An announcement is expected to be made at the IICL directors’ meeting In October. ❏ over IICL seeks new head All As it is, the box leasing industry has had plenty of experience of owning overpriced containers, as the majority of dry freight (and reefer) equipment bought in first half of the 1990s was similarly acquired at a premium and carried a form of “negative equity” throughout its later life. This was a consequence of the 45% drop in new box prices occurring between 1996 and 1998, which lessened the residual value of containers built in earlier years and so had an adverse impact on their depreciated cost. This, in turn, held down capital yields throughout the equipment’s working life and, in the worst cases, resulted in a net book loss when it was finally sold for secondary use. Now, many lessors are fearful that history will repeat itself, with a similar blight affecting the majority of boxes purchased since early 2004. Indeed, the past two years have been highly unpredictable, as new container prices have not just risen substantially on their previous, more static level, but fluctuated widely as well, causing per diems to “see-saw” in their turn. Following an initial recovery of over Antwerp Dubai Genoa Gothenburg Hamburg Hong Kong Lisbon London Madras New York Rio de Janeiro San Francisco Seoul Shanghai Singapore Sydney Taipei Tokyo • Available from major locations worldwide • Top-quality design and construction • Pressure/vacuum relief • Calibration chart • Customer-orientated, flexible service • Manlid and dipstick • Walkway • 24 hour internet support for all certification • Top outlet facility • Airline connection • Frame – Full frame – Semi-frame – Beam • Available for operational lease, term lease and sale • Grade – Food grade – Chemical grade • Foot valve remote closure • Data plate • Capacities – 17.5, 21, 24, 25, 26cbm capacity • Insulation – Steam heated – Insulated – Uninsulated • Thermometer • Bottom outlet Contact your local Cronos office or visit www.cronos.com at 006ny s 2 a e u al Germ e S od se, 2006 s r rm Me mbe e g t r e In mbu 7 Dec Ha 5- 35 Section 2 12/9/06 2:39 pm Page 36 WorldCargo news more likely in the run up to the year end. The recent shifts in new box prices have been caused mainly by equally dramatic fluctuations in the cost of materials, especially Corten steel.The price of the latter has moved largely in step with finished container prices, jumping in early 2004, peaking in early 2005 and then collapsing back to its pre2004 level by early 2006. It too has recovered again by around 35% during the second quarter of 2006 and, at around US$600/t, is currently priced about the same as two years earlier. Corten steel has also been in shorter supply during 2006, as was the case earlier in 2004, which has placed additional pressure on box builders and further helped fuel the latest rise in finished box prices. Not surprisingly, the suppliers are once again taking the opportunity to safeguard their profitability, especially as many fear that a reecent surge in demand may not be sustained for long. The availability of Corten steel, and particularly the thin sheet needed for container panel construction, has been altogether less guaranteed since late 2003. This CONTAINER INDUSTRY was when Chinese mills - headed by leading group, Baosteel - first stepped up their production of other industrial steels for the booming domestic economy in China. Some have since stopped producing Corten, forcing container manufacturers to rely on greater imports from South Korea (and elsewhere), for which the buyer often has to pay a premium. The cost of most other materials/ components has similarly been rising. Plywood flooring was at its former high, of US$600/m3, by mid-2006, while paint was priced at more than US$200 per TEU. The cost of zinc, used in primer has more than doubled since the start of 2006. High utilisation Amidst so much uncertainty, it is perhaps not surprising that leasing compnies have held back from investing this year. However, herein lies a deep paradox, in that the container leasing sector is otherwise continuing to achieve an almost stellar performance. Utilisation remains at a record level above 90% for the leased fleet overall - which has cut the overheads associated with storage and repositioning to an historic low. This is continuing to generate strong profits for the leasing industry as a whole.Annual revenues are growing again (jumping over 15% between 2003 and 2005, according to one estimate), which contrasts with the decade prior to 2003 when they remained largely static. In addition, the lessors’ exposure to riskier short-term leasing has been reduced, thereby lessening another potentially crippling cost burden. In TEU terms, over 65% of all standard boxes are now reckoned to be on long term lease - for a minimum three year duration but mostly on five year deals - which compares with nearer 40% a decade ago. The traditional master lease is now all but dead and with its demise has gone a lot of expense formerly carried by lessor and lessee alike. Operating in its place are simpler “hybrid” or regional types of master lease, which are limited in scope and more akin to straight term leasing. Naturally, the lessors’ continued high utilisation is a direct function of an industry-wide shift away from the short-term sector, where the incidence of off-hire is far more frequent. The drop in short-term leasing, as well as being driven by the lessors’ desire to cut operational risk, is also a function of the shipping lines’ increased ability to handle their own box repositioning using their latest giant containerships. Growing demand The lessors’ utilisation has, in fact, further improved during 2006, as demand has once again strengthened and much of the former large stockpile of new equipment been cleared from factories. Most leading lessors were achieving a percentage rate in the low 90s by mid2006, which was up a few points on late 2005, but not quite as high as achieved during the peak run from early 2004 to mid-2005. Nevertheless, off-hire rates are currently at a record low, as many shipping companies are eager to extend the lease term on existing equipment. Shipping lines too are now being discouraged from investing in new equipment themselves by the recent surge in container prices - as well as concerns about potential material shortages/capacity constraints at major factories - and so have Table 1: Profile of leading lessors’ purchases at July 2006 (rounded TEU)* Leasing Company 2006 Jan-July Florens Group 150,000 Triton Container Intl 40,000 Textainer 55,000 TAL International 70,000 Interpool Group 40,000 GE SeaCo 20,000 CAI 40,000 Unit Equipment Services 25,000 Capital Lease 25,000 Cronos Group 20,000 Gold Container Corp 25,000 Grand View Devel. 20,000 Gateway Container** 5,000 Blue Sky Intermodal 5,000 XINES 20,000 Carlisle Leasing 3,000 Amficon 5,000 Other 12,000 Total 580,000 2005 2004 whole year whole year 165,000 155,000 55,000 290,000 80,000 150,000 70,000 95,000 100,000 90,000 60,000 125,000 45,000 65,000 35,000 75,000 50,000 45,000 37,000 55,000 35,000 50,000 35,000 30,000 25,000 20,000 15,000 25,000 25,000 14,000 13,000 10,000 10,000 29,000 62,000 885,000 1,355,000 *Companies are ranked according to cumulative purchases made through 2004-06. **Fleet placed under management with Textainer in July 2006 Table 2: Profile of leading lessors’ operating fleets at July 2006 (rounded TEU) Leasing Company Dry freight fleet* Textainer*** 1,515,000 Triton Container Intl 1,335,000 Florens Group 1,152,000 GE SeaCo 797,000 TAL International 903,000 Interpool Group**** 812,000 CAI 630,000 Capital Lease 520,000 Cronos Group 377,000 Gold Container Corp 300,000 Unit Equipment Services 260,000 Grand View Devel. 139,000 Carlisle Leasing Amficon 110,000 XINES 100,000† Waterfront Leasing 90,000 Blue Sky Intermodal 45,000 Other 155,000 Total 9,240,000 Other fleet** 50,000 38,000 178,000 57,000 28,000 38,000 10,000 1,000 125,000 250,000 775,000 Total fleet 1,515,000 1,385,000 1,190,000 975,000 960,000 840,000 630,000 520,000 415,000 300,000 270,000 140,000 125,000 110,000 100,000 90,000 45,000 405,000 10,015,000 *Dry freight standard, high cube and special. **Reefer, tank, palletwide and domestic. ***Includes 315,000 TEU from Gateway (added in July 2006) ****Includes some equipment on finance lease. †Includes 55,000 TEU purchased in June in deal with a finance partner opted to retain as much leased equipment as possible.They have also been obliged to lease used equipment, because of the relatively limited availability of newbuild stocks. In addition to strong utilisation, turnover and profitability, lessors are further benefiting from another positive factor. Although much has been made of the risks inherent in buying equipment at too high a price, many lessors are now gaining from their earlier purchase of low-priced containers between 1998 and 2003. Most were originally priced at less than US$1500 per 20ft and so carry a favourable depreciated cost in the recent market, when new prices have ranged from a minimum of US$1400 to US$2000 and above. Coupled to this are the record high secondary use prices, which currently exceed US$900 per 20ft (typically 10 years old or more) compared with US$650 or less before 2004. The per diems now being generated by this “low-priced” equipment is already proportionally high in comparison to its original cost, thus yielding a strong capital return, while there remains a strong likelihood that a healthy book gain will also be achieved on its final resale assuming used box prices stay above their pre-2004 level. The majority of this low-cost equipment will likely be sold between 2008 and 2015, indicating that the box lease sector may enjoy several years of good returns if new prices follow the pattern of the past two years and do not dip below US$1500 per 20ft. Awash with cash Should the above factors prove insufficient to boost the confidence of the leasing sector and prompt it to resume its investment with gusto, then the continued availability of competitive 36 funding, coupled with low interest rates, might be expected to provide a still greater incentive. Leading lessors, including Textainer, Triton, TAL International and GE SeaCo, remain well placed to raise finance through securitisation or bank credit, while just about all others are awash with investor funding, the most important of which is derived from German KG funds. Indeed, the current situation is the reverse of that of most past years, when some leasing companies had difficulty raising sufficient finance to cover their planned container purchases. Instead, in 2006, many of these same companies are almost “turning away” funds for want of a good investment opportunity. This trend is borne out by the leasing industry’s total purchase in 2005, which was proportionally smaller (in TEU terms) than at any time since the 1970s (Table 1). Moreover, the forecast for 2006 is not much higher, thereby suggesting two years of relatively low investment in a row. This is unprecedented as in the past a year of poor investment has almost always been preceded and followed by years when purchasing was much stronger. Losing ground The lessors’ rate of fleet addition has also largely stalled since early 2005, as a growing share of purchases has been made to cover replacement.This has cost the leeasing industry further ground in terms of its global fleet ownership, so that it also today owns proportionally fewer TEU than at any time since the early 1990s . Although the global leased fleet has now finally surpassed 10M TEU (Table 2), it is barely 2% larger than a year ago.This equates to an addition of around 200,000 TEU net of disposals in the year to July 2006, which implies that August 2006 Section 1 8/9/06 3:52 pm Page 37 WorldCargo news CONTAINER INDUSTRY many of the deliveries made throughout this period replaced old equipment. In contrast, shipping lines are reckoned to have added almost 10% to the size of their fleet (both owned and on finance lease) in the past year, when they also committed to a far higher TEU investment than the leasing sector. As the global demand for containers is still growing at more than 8% per annum, it is apparent that shipping lines, rather than lessors, have been meeting much of the requirement for extra equipment through an accelerated purchase for their owned fleets. This is been made more possible by the lines’ own stronger financial performance of the past 2-3 years, which has been buoyed by higher freight rates and full sailings and enabled them to allocate substantial extra funds for box procurement. In addition, the more recent mergers occurring between Maersk Sealand/ P&O Nedlloyd and Hapag-Lloyd/CP Ships have further cut demand for leased equipment.These factors largely explain the container leasing industry’s steady loss of ground in terms of its ownership share, as well as accounting for its weaker investment - coming at a time when the sector might be expected to expand more aggressively. division. The balance of its fleet, leased exclusively to Cosco Containerlines, has been retained intact. As with Interpool, the finance raised by Cosco Pacific/ Florens is to be used to fund future fleet expansion, as well as retire debt, with over US$100M earmarked for new box purchasing in the coming year. Leading the way Florens is one of the few lessors to have made known its purchasing plans for 2006 and will again likely account for the biggest share of investment amongst leasing companies. It acquired 165,000 TEU in 2005, virtually all as standard dry freight units, which was more than double the figure purchased by major rivals and the company has already received another 150,000 TEU this year, lifting its overall fleet size by a further 15% in just six months, to almost 1.2M TEU. Over 45 per cent of the current total is on lease to Cosco, while the majority of Florens’ recent purchases have similarly been made on behalf of its sister company. Florens’ expansionist stance of recent years has boosted it up the ranking, past both TAL International and GE SeaCo, and it now is third in fleet size behind Textainer and Triton Container.The latter has been growing more slowly in the past two years, following its unprecedented purchase of almost 300,000 TEU in 2004. The company, on its own admission, took some time to absorb this huge influx,and has since committed to a below-average level of investment in 2005 and 2006. According to its most recent forecast, Triton is unlikely to Table 3: Profile of lessors’ operating fleet and recent purchases by type at July 2006 (rounded TEU) Container type Dry freight standard* Dry freight high cube** Dry freight special*** Integral reefer Tank Domestic**** Total Total fleet July 2006 5,225,000 3,800,000 215,000 405,000 102,000 268,000 10,015,000 2006 Jan-July 325,000 220,000 6,000 15,000 4,000 10,000 580,000 2005 whole year 413,000 385,000 15,000 38,000 8,000 26,000 885,000 *Includes 20ft and 40ft containers of 8ft 6in height. **Includes 40ft and 45ft containers of 9ft 6in height. ***Includes open top, flatrack, bulk, ventilated, open side etc. ****Includes US domestic, European swap body and palletwide containers buy as much as 100,000 TEU this year. The Triton fleet has consequently levelled since early 2005, at close to 1.4M TEU. Rumours that the company’s longstanding private equity holders are looking to sell out has naturally created some additional uncertainty and put a further brake on any renewed fleet growth. Nevertheless, Triton remains a very strong participant, with a fleet val- How can Rental4000 help container lessors? Cutting back Leasing companies purchased just 885,000 TEU in 2005. This was over a third down on the 1.35M TEU acquired in 2004, and also below the 1,165,000 TEU bought in 2003 and 965,000 TEU in 2002. In the six months to July 2006, they had taken delivery of almost 600,000 TEU, much of which has arrived since April, with very few follow-up orders subsequently being placed. Few lessors are willing - or even able - to give an idea of their likely investment for the balance of this year. Rather they suggest, that purchasing will only be resumed if prices weaken again or at least show some sign of having already peaked. As suggested, most are haunted by their earlier experiences in 2005 and have lost any appetite to buy in a rising market. Consequently, the majority of deliveries planned for 2006 by leasing companies are likely - as in 2005 - to be completed by August, with production in later months far lower.This indicates that leasing companies will again take less than 1M TEU during the year as a whole. As global box output is predicted to reach 2.5M TEU for 2006 – which is close to the figure in 2005 – the lessors’ share may again amount to less than 40% of the overall TEU figure. This would admittedly be up on the 35% in 2005, but still well short of the average of nearer 45% taken by lessors in the majority of earlier years. Buying in As suggested earlier, the lessors’ cautious investment level hardly squares with the current strategy of KG and other backers, many of which are still eager to increase their stake in the container business. The relative lack of newbuild business has already prompted some KG funds to purchase existing equipment, with two very substantial deals having been concluded already this year. The first occurred in March 2006, when Interpool sold a sizeable portion of its container fleet on operating lease to a Swiss investor group for an agreed sum of US$515M. A total of 273,000 units were transfer under the terms of the deal, although Interpool and CAI (its 50% owned subsidiary) will continue to manage the equipment as part of their combined fleet. The second transaction involved the sale of around 600,000 TEU by Cosco Pacific Ltd – owner of the world’s third biggest container lessor, Florens - to a KG fund (AD ACTA 634).This was concluded late in June and raised almost US$850M for the seller, which is also to manage the equipment in future on behalf of its new owners (see WorldCargo News, July 2006, p51). The portion sold made up a little over 50% of all containers owned by Florens at mid-2006, although it accounted for the vast majority of containers leased to third parties through the company’s “international” August 2006 Ask the people using it Blue Sky Intermodal (UK) Ltd, a rapidly growing company in the container transportation industry, selected Real Asset Management’s (RAM) Rental4000 system to support its future short and long term leasing management requirements. Blue Sky was seeking a high spec solution to streamline its business processes and support future growth to significant levels. It chose RAM’s Rental4000 solution due to its rich functionality and leading edge technology and because of RAM’s stability and reputation as a leading supplier. ‘ The Rental4000 solution enables us to effectively consolidate, monitor and manage our daily operations as well as our long term business activities. Acting as a central repository, the system provides information which can be accessed by the sales, operations and finance departments, providing a more flexible and defined infrastructure that has enhanced our operational efficiency and helped drive our productivity. ’ Keith Hotston, Blue Sky’s Operations & Information Technology Director To find out more visit: www.realassetmgt.com/logistics.html Real Asset Management Plc Central Court Knoll Rise Orpington Kent BR6 0JA Telephone: +44 (0)1689 892100 Fax: +44 (0)1689 898434 Email: [email protected] Real Asset Management 37 Section 1 13/9/06 12:10 pm Page 38 WorldCargo news CONTAINER INDUSTRY ued at roughly US$2B and of relatively young age (below 5 years on average). It features dry freight and reefers, including a high proportion of 40ft high cubes. Inorganic growth While Triton has persistently shunned the idea of growing by way of merger and acquisition, its longstanding rival, Textainer, has long viewed the absorption of weaker competitors as a cost-effective means of achieving extra market share. Textainer has followed up earlier deals with the management acquisition in July 2006 of the fleet controlled by Gateway Container (see WorldCargo News, June 2006 p14). The move has leapfrogged Textainer into the top position, as the absorption of 315,000TEU from Gateway has boosted its fleet size by a further 26% to a new industry high of over 1.5M TEU. The latest deal is broadly similar to the one agreed seven years ago with Xtra International, when Textainer acquired management control of the Xtra fleet. The previous transaction with Xtra was a little different, how- ever, as this company had fully owned its fleet when assigning management control to Textainer. Gateway, in contrast, was already managing its equipment - prior to handing this function over to Textainer - as it had earlier sold out to a KG fund (Buss Container Funds I Partnership). Thus Textainer will be acting as manager on behalf of an owning KG fund, controlled by Buss Capital, and has also been required to buy out some existing leases as part of the transaction. Gateway, for its part, had already closed its office network by late July and was retaining a few personnel at the former headquarters in San Francisco to wind up its affairs. Gateway’s decision to pass its management control to Textainer, and so withdraw from the business altogether, was driven by simple economics. The fee income generated by Gateway for its fleet management duties was barely sufficient to cover overheads, whereas the larger scale of the Textainer operation has enabled the additional containers to be absorbed for practically no extra cost - even before the increased fee income is taken into account. Crucially, Gateway’s running costs were high, because of the relatively large share of equipment on short-term lease. Textainer has a long experience in the short-term/master lease sector, and already claims a sizeable fleet of managed containers operating alongside its much larger owned component. In addition, the company has a high-volume resale outlet to trade used containers from its own fleet and on behalf of third party sellers. The composition of the Gateway fleet is further attractive to Textainer as both companies have only dry freight equipment, including 1-2% as specials.Textainer is firmly of the view that there is room for further consolidation in the container leasing industry and continues to actively seek other opportunities. Strong purchase Textainer’s deal with Gateway/ Buss Capital has followed a fairly strong purchase of new box equipment during the opening half of 2006, much of which was acquired before prices escalated back above US$2000 per 20ft. By July, Textainer had taken delivery of 55,000 TEU, comprising over 25,000 x 20ft, 4000 x 40ft and almost 11,000 x 40ft high cube. It has a further 4000 x 20ft outstanding for August delivery, while around 5000 TEU has recently been added as new equipment into the Gateway fleet. Beyond this, Textainer president and chief executive officer, John Maccarone, says, “Further investment will depend on price movement and the presence of definite business.” It is also likely that the merging of the Gateway fleet - despite being accomplished relatively easily - may put a brake on further purchasing this year, although Textainer’s or iginal budget was only set at around 70,000 TEU for the whole of 2006. By comparison, it received 80,000 TEU in 2005 and over 150,000 TEU during the peak year of 2004. Back in 2004, Textainer, alongside most other leading lessors, was achieving a fleet utilisation rate in excess of 95%. This subsequently dipped in 2005 dropping briefly below 90 per cent - but has since recovered Houcon Cargo Systems b.v. P.O. Box 1569 3260 BB Alexander Bellstraat 7 3261 LX Telephone +31 (0)186 – 620930 Telefax +31 (0)186 – 615160 Oud-Beijerland The Netherlands Oud-Beijerland The Netherlands E-Mail [email protected] Website www.houcon-group.com YOUR PARTNER IN TRAILER CONSTRUCTION 䊴 Skeletal trailer with Rockerbeams up to 70T Capital Lease originally planned to buy 120,000 TEU this year but has scaled back its plans due to uncertainty over box prices again to more than 92% by June 2006. Maccarone confirmed that this high utilisation was a function of the shift towards a greater proportion of units on long term lease, with almost two thirds of the Textainer fleet (prior to the Gateway merger) committed to this sector. Although much of the balance remains on traditional master lease agreement, there has been a steady growth in the demand for its special “regional” lease, covering intra-Asia trades, which offers a pared-down contract limiting pick-up/drop-off locations and other overheads. A growing share of equipment coming off initial lease is currently being re-fixed on extended term lease rather than being placed into the master lease pool as in former years. But the incorporation of the Gateway equipment has boosted the master lease component within Textainer’s overall fleet, as well as reducing utilisation slightly from its high-point in June. Inflationary times 䊱 Cornerless “bumpcar” with “Rockerbeams” 䊱 Roll trailers with safety hooks 䊱 Roll trailer with fixed gooseneck Other equipment: 䊴 Skeletal trailers, up to 60T Multi-trailer systems, up to 60T 䊳 䊴 Goosenecks, up to 45T Lfting cassette trailers, up to 120T 䊳 䊴 Trailers for special requirements www.houcon-group.com Used equipment available!! Ask for details. 38 The attraction of merging rival fleets has increased in the more inflationary climate of the past two years, as the residual value of many leased fleets has been forced up by higher new box prices. As mentioned earlier, prior to 2004, there were still too many “over-priced” containers within the leased fleet, which made it difficult for the majority of lessors to sell out to rivals without incurring a serious book loss. Even the less risky option of a management takeover held little attraction in comparison to buying new, as equipment prices were then so low and relatively stable. For this reason, The Textainer/ Xtra deal of 1999 was to mark the end of an era, as no further mergers or takeovers were to occur between major dry freight lessors during the next five years. By contrast, several have already taken place since 2004 and yet more appear to be in the offing. Unit Equipment Services AG (UES) initially gained control of the older fleet of United Container Systems (UCS) in 2004, but has more recently – in early 2006 – been acquired by Grand View Development HK Ltd (GVC). Although the two companies are to remain separate entities, they will ultimately benefit from operating synergies. Each controls a predominantly dry freight fleet, plus a small component of mixed specials (comprising reefer, tank, palletwide and domestic boxes) and they are both funded by KG sources. More crucially, both companies have still to develop remarketing services (or possibly look to outsource), as neither has as yet received much equipment back from its initial lease. UES is, at around 270,000 TEU, almost twice the size of GVC (with 140,000 TEU), although each has been expanding aggressively in recent years. GVC received 20,000 TEU in the opening half of 2006 and ex- pected to take up to 40,000 TEU throughout the year overall. The total purchase by UES is predicted to be similar, with this company having already taken delivery of 25,000 TEU by July. Both purchased around 35,000 TEU in 2005. Fleet upgrading TAL International (for merly Transamerica Leasing) is another major lessor to have changed hands in the past two years, having finally been sold in 2004 by its former parent, Dutch insurer Aegon NV, to a consortium of venture capitalists, headed by The Jordan Company. Reinvigorated by its ownership transfer,TAL has since committed to an aggressive programme of fleet upgrading and expansion, underpinned by substantial investment in new equipment. It acquired over 70,000 TEU in 2005, thereby ranking alongside other major purchasers such as Textainer and Interpool, and is reckoned to have already taken delivery of another 70,000 TEU in the first six months of 2006. The company has budgeted to spend US$250-300M overall in 2006 on dry freight/reefer containers and equipment for its newly established chassis rental division. The purchase of standard boxes could top 100,000 TEU for 2006 overall. TAL is another to have placed its orders relatively early in 2006 and so has been able to benefit from lower prices. Despite the strong investment, however, TAL is not currently growing its fleet. Instead, the emphasis remains firmly on equipment renewal, as numerous old containers have been traded through the company’s established secondary sales arm. Up to 100,000 TEU were sold from the TAL fleet in 2005 and an even larger quantity may go this year as the company takes advantage of the strong used container market and record price levels. The TAL operating fleet declined a few per cent in size during 2005 when it slipped below 1M TEU for the first time in 10 years, and it currently stands just short of this figure. However, the average age is falling fast, while the 40ft high cube component is being steadily increased. In addition to its main operating fleet of around 960,000 TEU, TAL has a further 50,000 TEU on finance lease. Over 85% of its fleet is now of standard type, with the balance comprising reefer (6%) and specials (7%). Modest plans Most other lessors have more modest plans. Capital Lease had received around 25,000 TEU by July, including 12,000 TEU secured at the lower first quarter price, and has since largely held off from further commitment. Capital chairman, Ian Karan, summed up when he stated that the problem centred on the conAugust 2006 Section 1 11/9/06 2:50 pm Page 39 WorldCargo news CONTAINER INDUSTRY tinued volatility of prices, which has increased risk because of the uncertainty about returns. “We have the finance in place,” he said, “and the demand for leased boxes remains as strong as ever as evidenced by the high level of utilisation. However, with new box prices again rising rapidly and no certainty as to where they will go next, there is little incentive to buy.” Moreover, Karan added, lease rates have barely risen in line with the latest price increases. He explained that Capital started 2006 with a record US$200M of investor funds ready to commit, including some carried over from 2005, and initially planned to buy 120,000 TEU this year.This would have lifted the company’s fleet to over 600,000 TEU to coincide with the 10th anniversary of its founding. In the event, such plans have since been scaled back. months of 2006. It received 35,000 TEU during 2005, over 30,000 TEU of which were acquired in the opening half. Ranked immediately above Gold is Cronos Container, whose fleet has held largely static in recent years, even though the specials’ component is being expanded steadily. Its current fleet of over 400,000 TEU includes standard, high cube, special, cellular palletwide, reefer, tank and roll-trailer equipment. The 37,000 TEU purchased in 2005 comprised standard, reefer, tank and specials. One of the newest box leasing names is XINES Ltd, a Sino-German venture that started up in early 2005 and is also supported by KG funding. Though it falls short of being the single biggest purchaser among lessors this year, it is certainly among the most expansionist. XINES had already quadrupled its fleet size to over 100,000 TEU by the middle of 2006 with newbuildings and the purchase of an existing portfolio of 55,000 TEU in a deal concluded with one of its finance partners. Orders placed for third quarter delivery will see the XINES fleet reach 118,000 TEU by the end of September. The company had initially set its sights on reaching 100,000 TEU by the year-end, but with ample finance available has beaten that target by some margin. Subject to pricing, further newbuildings are on the cards for delivery in the fourth quarter. ❏ With newbuilds and the purchase of an existing fleet, recent entrant XINES has quadrupled its fleet this year Dispute over GE SeaCo has barely been out of the news this year. Following the settlement through arbitration of an acrimonious and long-running dispute between its two principals, GE Capital and Sea Containers (see WorldCargo News May 2006, p16), the latter, which is mired in debt and currently undergoing restructuring following the recent sell-off of its ferry business, has been required to pay US$18M in total, mainly to GE SeaCo, to compensate for alleged breaches in the service it provided to GE SeaCo. The service contract existing between Sea Containers and GE SeaCo has been terminated and the GE SeaCo operation has been restructured, with GE Capital increasing its representation on the board of directors. GE SeaCo has naturally been glad to put the whole episode behind it and now plans something of a new start, including greater new box investment than in the past year. Nevertheless, top management conceedes that the company has suffered both as a result of its former high overheads and the distraction caused by the long-running dispute, losing market share both in the dry freight and reefer sectors. The GE SeaCo fleet remains a little below 1M TEU, having barely changed at all in size during the past five years. Again, fleet renewal has been the priority, with the company committing to a record investment during 2004, when it outlaid over US$300M on 125,000 TEU in total. Over 40% of this expenditure went on 40ft high cube reefers, with the balance (exceeding US$175M) covering dry freight standard and high-cube, tank, SeaCell palletwide, swap bodies and other special containers. Its purchase in 2005 was rather smaller both in TEU and investment terms, with the latter amounting to less than US$150M, and may be even lower during 2006. Nevertheless, GE SeaCo’s operating fleet remains the most diversified amongst all lessors and still carries the highest “new-for-old” replacement cost – ahead of Triton and Textainer. This is calculated at close to US$3B GE SeaCo’s reefer fleet has now been overtaken in size by that of Carlisle Leasing, which, with an operating fleet of around 125,000 TEU comprising 8,500 x 20ft and 58,000 x 40ft high cubes, is firmly established as the world’s largest reefer leasing company. However, Carlisle has similarly curtailed its purchase during 2006 after it was acquired late last year from Marubeni America Corporation by investment group Fortress Investment. The company has only recently begun buying reefers again and, in a break with past practice, which saw it specify Carrier machinery exclusively, has ordered 1450 Daikin LXE 10E scroll units for an operating lease with MOL, as well as some Thermo King Magnum units. Carlisle has also gone into the dry freight leasing market for the first time with a 7500 TEU term deal with CSAV. Top 10 place The world’s leading container event 5-7 December 2006 Hamburg Messe, Hamburg, Germany Intermodal Conference: Delivering Effective Transport Capacity Management 3 information packed days: Conference, Exhibition & Networking Reception Key speakers include: • Thomas Bronnert, Wacker Chemie AG • Alfred Cheung, OOCL Asia • Mike Garrat, MDS Transmodal • Ruediger Grigoleit, Merck KGaA and Chairman, Deutsches Seeverlader Komitee (DSVK) • Brendan McKenna, TransOcean Distribution • Eric Peetermans, UIC GTC • Gunnar Uldall, Senator, Hamburg State Ministry for Economic and Labour Affairs • Zenggang Yu, China Shipping (Europe) Holding Gmbh • Frans Zoetmulder, European Rail Shuttle Topics include: • The Intermodal Shipping Industry Debate • Intermodal Efficiency And Cost Management • Harnessing Inland Shipping Opportunities • Tank Transport And Logistics • The Intermodal Rail Debate • Costing The Cold Chain Exhibition Opening times Tuesday 5 December 09.00 – 17.30 Wednesday 6 December 09.00 – 17.30 Thursday 7 December 09.00 – 15.30 To find out more and to register for the conference or the exhibition, visit: www.intermodal-events.com or call +44 (0) 20 7017 4490 Organised by Supported by Members of Audited by Meanwhile, the disappearance of Gateway has brought Gold Container a top10 ranking amongst box lessors for the first time. This company, which forms part of the French Touax Group, has also surpassed another milestone having recently achieved a fleet size of 300,000 TEU. This followed the purchase of around 25,000 TEU during the opening August 2006 39 Section 1 1/9/06 9:31 am Page 40