Indital for Cargotec
Transcription
Indital for Cargotec
Section 1 1/3/07 3:08 pm Page 1 WorldCargo news FEBRUARY 2007 Indital for Cargotec Yet another OEM is to be snapped up by the acquisitive Cargotec. Hard on the heels of Kalmar’s latest high profile deal to take over CVS Ferrari, subject to regulatory approvals (see last month’s WorldCargo News, p1), the Finnish holding company has announced that it has made an agreement to acquire another competitor, Indital Construction Machinery Ltd, based in Bangalore. The acquisition creates a manufacturing presence in India for Cargotec and supports the growing sales activities of all three of Cargotec’s business areas. Cargotec’s operations in India currently consist of Kalmar’s subsidiary, Kalmar India, and Hiab’s representative office, while MacGregor has served Indian customers through an agent. Indital produces container reach stackers, heavy FLTs and mobile cranes used for loading trucks (pick-and-carry). Cargotec’s ownership will be 95%. The price for the deal, which is subject to regulatory approvals, has not been disclosed. The present owner of Indital, Ravi Kumar, will continue as the managing director. Indital had net sales of around €8M equivalent in 2006, about Indital’s reach stacker range will now come under the Cargotec umbrella one tenth of CVS Ferrari’s net sales of €85M (this is also thought to be the agreed sale price), while Kalmar alone had net sales in 2006 of €1.2B. Cargotec has set a growth target of 10% per year for the next five years. Since organic growth of this magnitude in such a time- frame is impossible in the markets served by Kalmar, Hiab and MacGregor, more acquisitions of OEMs and aftersales and service companies are on the cards.A large term bond has been arranged by Cargotec from non-traditional sources to boost its war chest. Last month’s attempt to explain Cargotec’s growth and acquistions strategy (see WorldCargo News January 2007, p2) came too late to report another dealership purchase by Hiab, this time in Australia, and now Kalmar has made another expansionary move on the US East Coast, following its purchase last year of East Coast Cranes & Consulting. It has made an agreement to buy, for an undisclosed sum, the assets and business of Port Equipment Service Inc (PES) based in Portsmouth, Virginia. The deal is aimed at further strengthening Kalmar’s service business in US ports and intermodal terminals. Established in 2001, PES employs 56 staff, most of whom are service technicians. PES services container handling equipment for port operators in Hampton Roads, at Portsmouth and Norfolk, and elsewhere on the USEC range, as well as various kinds of heavy equipment at railway terminals in five states. Its net sales exceeded €4M in 2006. The current owners Dan Stevens and Tom McDonough will continue to manage the business. ● Benoît Passard has resigned as vice president, marketing, Kalmar Industries, with effect from next month, to take up a post with DeLaval in Sweden. His successor has been named as Aija Kalander, Kalmar’s longstanding manager of communications. Longer trucks for Melbourne Negotiations between the road transport industry and the Victorian authorities could see trials of 30m long container trucks on Melbourne roads shortly. The Victorian Transport Association (VTA) and VicRoads are discussing access conditions for socalled high efficiency container transporters (HECTs), which are 4m longer than the current largest B-double units. The HECTs, carrying a combination of 20ft and 40ft boxes, would operate over a prescribed road network between the port Stop press As this issue was going to press, it was announced that the assets of container lessor Cronos are to be taken over by a newly formed company led by members of the existing management team. Full details will appear in next month’s issue. and freight centres in the greater Melbourne region, including the city of Geelong.TheVTA says operations would be to centres generating container traffic of more than 1,000 TEU a year. The HECT vehicle combinations would be subject to higher performance standards, as prescribed by the National Transport Commission, including turning and acceleration capabilities, and increased safety standards. The trial vehicles would be limited to 68t gross weight in the first instance. However, industry has flagged the need to consider further stages of operation at higher weights to achieve greater productive capabilities. Somewhat ironically, news of the HECT trial came just as Queensland Rail-owned CRT finally gave up on its short-line Melbourne port rail shuttle. CRT said costs were rising faster than volumes and the company could no longer absorb the losses. Triple 40ft crane What is believed to be the first container crane able to handle three 40ft containers simultaneously has entered service in China. The newly-commissioned ZPMC crane is operated by Shenzen Mawan Terminal. Initially, it is understood, the 3 x 40ft mode is being used to offload empties from the deck stacks. The crane’s characteristics include an SWL of 100/120t out to 65m (23-wide) outreach, with a lift height of 43m above rail and a 30m rail span. Rated load and empty spreader hoist speeds are 75 and 180m/min and top trolley speed is 240m/min. The drive controls are from Yaskawa. It looks like ZPMC has taken its dual hoist crane design and fitted one split headblock with an adjusting device from a bespoke The sale of DP World’s US port interests to AIG Global Investment Group was almost stymied early this month by a row with the Port Authority of New York and New Jersey over the terms of the lease transfer of Port Newark Container Terminal (PNCT) to AIG. DPW agreed to sell the US port assets it acquired after it took over Peninsular & Oriental Steam Navigation Co (P&O) following a political furore over port security. AIG, the investment arm of insurer American International Group Inc, won the race to take over container terminals in New York/New Jersey, Baltimore, New Orleans, Miami and Philadelphia, together with smaller dockside operations at 16 other US ports NEWS Finnish majors’ results HPH/Huizhou pact Grimaldi into Unikai Prat problem deepens Patrick Shipping to Kelly New loco designs SeaCell goes open CIMC under fire 3 4 6 12 17 18 20 21 ÛiÊÃ`ÊÀi>ÃÃÊvÀÊ«>ÀÌiÀ}Ê/iÀLiÀ}° ICT FOCUS ,i>LiÊ*>ÀÌiÀ +Õ>ÌÞÊ*À`ÕVÌ ÕÃÌiÀÊVÕÃi` />À>`iÊ-ÕÌà «Ài iÃÛiÊ-iÀÛViÊEÊ-Õ««ÀÌ Horizon moves on RFID 24 WhereNet changes hands 25 TWIC Cards...no readers 26 Look, no LAN 28 Sabio adds CONTTAC 29 Advent goes open source 30 /iÀLiÀ}Ê iÃV «Ê °6°]ÊiÃV «Ê Ê>`]Ê /i°ÊääΣä®Î{nÊ {xÓ££]Ê ÜÜÜ°ÌiÀLiÀ}LiÃV «° spreader designer.The cylinder arrangement between the split and non-split headblock (as on the standard dual hoist ZPMC design) remains to give a three spreader/ two headblock configuration. ZPMC may be able to take the arrangement a step further and split the other headblock as well to allow 4x40ft handling. ● ZPMC has signed a contract for seven twin 40ft container cranes and 20 automated stacking cranes withTaipei Port Container Terminal, a joint venture between Evergreen (50%), Wan Hai (40%) and Yang Ming (10%). The value of the contract is almost US$100M and the cranes are scheduled to be delivered before the end of 2008. DPW deal rescued IN THIS ISSUE ÎxÊÞi>ÀÃÊiÝ«iÀiViÊ Êi}iiÀ}Ê>`Ê >Õv>VÌÕÀ}Ê/iÀ>Ê >`Ê,,ÊÌÀ>VÌÀà The new crane is seen here handling three 40fts at Mawan in a deal reported to be worth US$700M (see WorldCargo News December 2006,p7), . But although DPW received approval for the sale of the other facilities, the Port Authority of New York and New Jersey demanded US$84M in order for the PNCT lease transfer to AIG to be approved - reportedly to compensate for investments it has made at the terminal. The port authority withdrew its demand, however, after Ports America Inc, the ports company formed by AIG, agreed to invest a minimum of US$50M in PNCT dur ing its tenure, including US$10M earmarked for the development of port rail infrastructure surrounding PNCT. FRANCE SURVEY Ports investing heavily New rail operators CMA-CGM takes a grip Grand waterway moves on 34 36 39 40 PORT DEVELOPMENT Tackling Russian congestion 31 Vietnam playing catch up 41 CARGO HANDLING Spreader initiatives Kalmar’s Italian job Towards clean RTGs 42 47 50 CONTAINER INDUSTRY Lessors awash with cash Upsurge in reefer output Box scanner for every port Smiths teams up with GE 53 55 56 58 Section 1 2/3/07 3:22 pm Page 2 WorldCargo news CARGO HANDLING NEWS DCT Gdansk cranes arrive Fantuzzi DCT Gdansk SA, the new deepwater container terminal under construction in Poland, has taken delivery of the first of three postPanamax ship-to-shore cranes and two of five RTGs ordered from Liebherr Container Cranes. The quay crane, which arrived at the facility on the BigLift vessel TRAVELLER at the end of last month, will be assembled on site ready to handle the first vessel when DCT Gdansk Phase 1 begins commercial operations later this year. Delivery of the remaining ship-toshore cranes and RTGs will take place during the spring. The new cranes incorporate Bromma twinlift spreaders and have a lifting capacity of 60t. A 52m outreach means that they will be capable of handling ships carrying a 19-wide deck stow. “The delivery of these cranes - well ahead of schedule - marks a key stage in the development of the terminal. Once erected, they will give us the ability to handle vessels of 6,000TEU capacity and greater,” said Fred Kamperman, regroups The first ship-to-shore crane will be ready for operations in June this year general manager of DCT Gdansk. DCT Gdansk has also confirmed orders for secondary handling equipment, including one reach stacker, one seven-high empty container handler and one SL32 ro-ro truck from SMV Konecranes Liftrucks. Terberg tractors and Buiscar heavy duty trailers have been ordered, together with Hyster FLTs from Polish concessionaire Zeppelin.All will be delivered in the spring. DCT Gdansk will commence operations on 1 June 2007 as the first stages of Phase 1 become available. Construction of this phase will be completed by the end of September when 650m of quay, dredged to a depth of 16.5m, will give the terminal an annual handling capacity of 500,000 TEU. The timing of the decision to commence construction of the next 500,000 TEU phase will be determined by demand. Following the term loan deal agreed last year with investment bank J P Morgan (see WorldCargo News August 2006, p1), Fantuzzi Group has been reorganised into four main divisions, which are said to have experienced rising sales and better profitability in the past two years: ● Project business for ship-to-shore cranes, RTGs and RMGs (Noell China, Regg iane), run by Francesco Petilli. ● Mobile harbour cranes (Reggiane), also run by Francesco Petilli. ● Straddle carriers (Noell Mobile Systems), run by Guido Luini and Gerold Keune as joint managing directors (Keune has taken over from Rudolf Bock, who has just retired). ● Reach stackers, FLTs, sideloaders (Fantuzzi), run by Mario Corsi, who joined Fantuzzi from ABB. The group has set a target of obtaining a stock market listing within the next few years. Increase your global business by using the new Yard Tractor MT 25 YT Mafi MT 32s in China Germany-based Mafi has recently commissioned five towing tractor units, type MT 32 Z, and 12 model 1170-4 single trailers at a steel plant just outside Beijing.The new plant is due to start operation shortly with an output of around 40 coils/hour. The coils can weigh up to 38t The tractors are equipped with a Mercedes Benz OM 906 LA engine rated at 190 kW and conforming to Euromot 3A, a ZF 6 WG 211 gearbox and Kessler axles to provide all wheel drive if necessary. At the customer’s request and for safety reasons, additional lights have been placed on top of the tractor cabin on a separate support structure overlooking the steel coils when loaded. Each tractor is capable of towing three trailers in line and the GCW at full load is around 150t. For the time being, one tractor unit will be used as a stand-by unit. The trailers are designed to withstand temperatures of up to 700 degC when the coils are loaded. Special air circulation channels are built into the structure in order to divert the heat away from the trailer. As production capacity at the plant will gradually be increased, further orders could follow shortly. Further orders for the Mafi tractor/trailer system could follow shortly Hirschmann sold Germany-based Hirschmann Automation and Control GmbH, part of the Hirschmann Group, has been sold by HgCapital to Belden, a leading manufacturer of signal transmission solutions. The €245M transaction is expected to close in mid-March. Private equity investor HgCapital acquired Hirschmann Group in February 2004 for €115M as part of a management buy-out. Since then, two non-core subsidiaries have been sold, operational improvements have been made to develop efficiencies across the group and investment has been directed towards new product development. As part of the reorganisation, a new group structure was established creating two entirely sepa- rate companies, Hirschmann Automation and Control GmbH and Hirschmann Car Communication GmbH, each with their own autonomous operations. The company’s product range comprises network components for the Ethernet, Fast-Ethernet and Gigabit-Ethernet, fiber interfaces for different field bus systems as well as actuator and sensor plug connectors and systems for load indication and load moment limitation. Last year it booked sales of €190M. The product range of load indicators and load moment systems includes the PAT and Kruuger marques. Last year PAT was absorbed completely into Hirschmann Automation and Control (see WorldCargo News June 2006, p3 and August 2006, p4). Figee level luffing cranes for Eritrea ● cost efficient ● powerful and robust ● fast and flexible simply: the best choice for your fleet For more details: www.mafi.de - [email protected] 2 Three Kenz-Figee double level luffing cranes were loaded last month in Amsterdam for Massawa, Eritrea, on board BigLift’s HAPPY BUCCANEER, using the heavy lift ship’s two, newly-installed Huismann-Itrec 700t SWL pedestal cranes. Due to forecasts of heavy storms in the Bay of Biscay, the original plan to ship the cranes fully-erect was cancelled and instead the upper sections, weighing some 250t, were loaded separately from the 100t pedestal and rail gantry. The units were reassembled by The new cranes are rated at 15t (grab plus load) out to 36m the ship’s cranes at Massawa, where they are currently being commissioned. The 4-rope cranes will operate on a new quay extension and will be mainly used to handle different bulk cargoes, with a rating of 15t (grab plus load) at 36m. Currently Kenz-Figee is constructing a 36t lemniscate floating crane for South American interests, which will be shipped fully erect, and has orders in hand for several offshore and shipyard cranes. February 2007 Section 1 1/3/07 3:11 pm Page 3 WorldCargo news CARGO HANDLING NEWS Wilmington cranes damaged Four new 100ft gauge container cranes were damaged in a collision with a dredge barge on the Cape Fear River just before they were delivered to the Port of Wilmington, NC, at the beginning of this month. Engineers from the manufacturer, ZPMC, ShawGBB, the port’s engineering consultant for the cranes, and the North Carolina State Ports Authority (NCSPA) completed an initial assessment of the damage to the cranes and decided to proceed with unloading from the ZHEN HUA 16 on schedule on February 7. The preliminary assessment found that all four cranes had sustained damage to metal parts, including catwalks, railings and access platforms, as well as to conduits, lighting and electrical sys- Cargotec/ Konecranes post results Cargotec has posted net sales of €2.597B in 2006 (+10% on 2005), and operating income increased to €240M. Kalmar’s net sales came to €1.203B (€1.147B in 2005) and its order intake in 2006 increased to €1.282M, of which 52% was in EuropeAfrica-Middle East, 31% in the Americas and 17% in Asia. Services accounted for 26% of Kalmar’s net sales and new equipment 74% Kalmar’s acquisitions during 2006 were East Coast Cranes & Electrical Consulting, Inc in the US, the Kalmar-related service business of African National Engineering in South Africa, its Belgian and Spanish distributors, Catracom and Kalmar España, formerly DTA (the latter has just absorbed Madrid-based TEC SA), and CVS Ferrari. MacGregor absorbed BMH Marine and Grampian Hydraulics and Hiab took over tail-lift producer AMA. Cargotec estimates that if all these acquisitions had been made at the start of 2006, its net sales would have been €2.658B. In 2005 Kalmar, which had previously taken over Nelcon, Bromma, Ottawa, previously independent dealers in Holland and Germany, etc, acquired full ownership of Indlift Trucks and Bromma Far East, Hiab bought Transmachine Oy’s business operations and MacGregor bought All-Set Marine Lashing. Already this year Hiab has bought distributors in Eastern Europe and Australia, while Kalmar has announced the purchase of Port Equipment Services in in the US and Indital in India.As previously reported, Cargotec has set a growth target of 10%/ year for the next five years (ie 60%). Konecranes’ net sales in 2006 came to €1.482B (€970.8B in 2005) and operating income increased to €105.5M (€49.3M). Orders received in 2006 totalled €1.473B (€1.061B in 2005). Service contributed €513M to net sales (€407M in 2005) and the heavy lift segment, which covers port, shipboard and shipyard equipment, contibuted €491M (€331M in 2005).The company has set a 15% growth target in 2007. Last year’s growth is explained partly by acquisitions - Stahl CraneSystems in the standard lift segment (end of 2005) and Morris Material Handling, Inc (P&H) in the standard and heavy lift segments (May 2006). SMV Lifttrucks (now Konecranes Liftrucks) was acquired in autumn 2004. In 2006, says Konecranes, heavy lift continued to benefit from strong demand for container handling equipment as well as for process cranes for metals/power industry customers. Organic growth was particularly marked in the heavy lift segment. As well as its comprehensive range of cargo handling cranes and unloaders, Konecranes now owns a highly-respected heavy fork truck/reach stacker company and, as previously reported, has just made another horizontal expansion move by acquiring the intellectual property rights of the former Consens stradle carrier line for container handling and heavy industry. February 2007 tems. Only one crane sustained more serious damage to a festoon cable. It was determined that all repairs can be made on site during the normal commissioning process by ZPMC and its subcontractor, using additional, locally available services. It is anticipated that the cranes will be commissioned on schedule on April 1. No dollar amount has been assigned to the damage, pending an insurancecompany survey. Since the cranes had not been offloaded and installed on the docks at the time of the accident, ZPMC is responsible for any liability issues. The US Coast Guard, is investigat- ing why the 788ft long ZHEN HUA 16, crashed into the dredge, CHEROKEE , owned by Southern Dredging of South Carolina, when it was across the river from the port while turning about for its docking attempt. Lt Adam Schmid of the Coast Guard Marine Safety Unit in Wilmington said all parties involved are being questioned, from the ship’s crew and the river pilots who guided it upriver to those aboard the dredge as well as port authority officials. Despite the damage to the cranes, unloading took place on schedule Drive Systems that deliver port productivity Modern, dynamic container cranes need fast, responsive, AC or DC drive solutions to maximise port productivity. Talk to Control Techniques, the drive specialists or visit: www.controltechniques.com AC and DC variable speed drives systems, backed up by unrivalled service and expertise. EF www.controltechniques.com EMERSON. CONSIDER IT SOLVED.TM 3 Section 1 1/3/07 3:12 pm Page 4 WorldCargo news CARGO HANDLING/PORT NEWS Everett HPH/Huizhou pact Shanghai heads for selects top spot Morris Liebherr Container Cranes Ltd has recently finalised a supply contract for one ship-to-shore container crane and one rubber tyre gantry crane with Dublin Ferryport Terminal (DFT), Ireland. DFT purchased this equipment as part of an intensive upgrade of the terminal’s handling capacity. The container crane has a waterside outreach of 35m, span of 18.62m and landside backreach of 15m. Height under spreader is 30m. SWL is 40t under spreader and 45t under hookbeam.The crane is equipped with curvegoing capability for gantry travel. Crane drive is Liebherr dc with i digivert speed control.The RTG is similar to recent Liebherr RTGs at the terminal, stacking 1 over 5/7 + 1 and fitted with eight wheels. It is equipped with automatic steering and Liebherr ac drives. DFT already has two Liebherr quayside gantry cranes and two Liebherr RTGs WorldCargo news VOLUME 14 NUMBER 2 • 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] 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] JAPAN AGENT: HIDEO NAKAYAMA, NAKAYAMA MEDIA INTERNATIONAL INC. Telephone: +81 3 3479 6131 Fax: +81 3 3479 6130 E-Mail: [email protected] The Port of Everett,Wa, USA has awarded a contract worth around US$2.9M for a 50 LT barge-to shore container crane to Morris Material Handling/P&H Cranes, which is now part of Konecranes. As previously reported (see WorldCargo News December 2006, p2), Morris competed for this project with two other bidders, Hans Künz and locallybased Ederer. The crane, which will incorporate a self-propelled trolley, will be used to off-load oversized containers loaded with aerospace parts at the port’s new intermodal rail/barge facility, which is being built to improve the speed and efficiency of transporting the parts to Paine Field. Total project cost is around US$30M, which will be paid for through a Washington state grant and dock user fees. Several handling options were reviewed, said the port’s CEO John Mohr, but an electricallydriven gantry crane design was selected in order to minimise view impacts, air emissions and noise.The port is currently working to finalise the bid package for the remaining work to the facility, including the installation of the crane rail and associated infrastructure. The crane is being constructed in Tacoma, Wa, and is scheduled to take approximately 46 weeks to build. Based on that schedule, the barge/rail facility should be ready for operation by this December. Hutchison Port Holdings (HPH) and Huizhou Port Affairs Group Company Ltd have signed a jointventure agreement to develop a two-berth container terminal at the Quanwan Port Zone (QPZ) of Huizhou Port some 48 km from Huizhou City and 74 km from Shenzhen (see WorldCargo News May 2006, p12). “With the signing of the jointventure agreement for the construction of two new container berths and the provision of new specialised container handling equipment, we look forward to a successful partnership with Huizhou gover nment and Huizhou Port Affairs Group Company. We will develop Huizhou Port into one of the leading ports in South China,” said John E Meredith, group managing director of HPH The new facility will have two new 50,000t container berths with a total length of 800m, a yard area of 60 hectares, and depth alongside and water channel of 15.2m. Upon completion of a railway extension to QPZ, large and medium cities along the two major railway arteries, Beijing-Kowloon and Guangzhou-MeizhouShantou, will have door-to-door access to the port, allowing cargo to be transported to QPZ and connect to other destinations via feeder and long-haul services. The partnership between HPH and Huizhou Port Affairs Group Company began in 2006 with the investment of Huizhou Port Industrial Corporation Ltd (HPIC) at QPZ. HPIC has four multi-purpose berths and five oil berths, capable of handling noncontainerised goods such as refinery oil and liquefied petroleum gas as well as container and bulk cargo. The signing of the joint venture contract coincided with the operational commencement of two ZPMC ship-to-shore container cranes, which have been installed at the existing multi-purpose berths at QPZ. The Port of Houston officially opened the new Bayport Container Terminal this month. Phase I will be operated by CMA CGM and when fully completed will have seven berths adding over 2.3M TEU/year of capacity. Bayport is Houston’s first new terminal since 1977 when Barbours cut was opened Construction - Earthmoving Agriculture - Forestry Mining - Quarrying - Cement Material Handling - Utilities Marine - Port Installations Water - Chemical - Recycling Energy - Petrochemical Plastics - Rubber Pulp - Paper - Print www.piv-drives.com Material Handling Food - Beverage - Tobacco Industrial Equipment PIV Drives is an industry leader in power transmission solutions for the crane industry. PIV offers a wide range of products, from standard modular gear reducers to custom solutions for special applications. Our unparalleled quality and reliability are acknowledged worldwide. Through a global sales and service network, PIV is proud to provide prompt delivery and service in every port. 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 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 2007 4 PIV Drives GmbH - Industriestraße 3 - 61352 Bad Homburg - Germany Tel. +49 6172-102 0 - Fax +49 6172-102 380 - [email protected] After recording a 20% growth in container throughput in 2006, Shanghai is on course to overtake Hong Kong this year and Singapore in 2008 to become the world’s busiest container port. Shanghai, China’s largest container port, handled 21.71M TEU last year, which accounted for 24% of the country’s total, as a record 55,000 ships, including 23,000 containerships, berthed at its terminals. Singapore handled 24.8M TEU in 2006, up 7%, making it the world’s busiest container port for the second year in a row, while Hong Kong, the second busiest, saw its throughput rise just 2.8% to 23.2M TEU, of which 16M TEU were handled at the Kwai Chung container port, up about 12.4%. With the opening of the fourberth Phase II of theYangshan terminal, Shanghai authorities expect the port’s throughput to rise 15% this year to 25M TEU. If Singapore and Hong Kong maintained their growth rates at 7% and 3% this year, Singapore’s throughput would be more than 26.5M TEU and Hong Kong’s about 23.9M TEU. Industry analysts say that since Singapore and Hong Kong are mature ports, which started handling containers 35 years ago, their throughput growth will certainly lag behind that of Shanghai, which started handling containers only in the late 1980s. “Although Shanghai’s growth has slowed gradually, from 31% in 2003 to 20% in 2006, it will remain in double digits for a few more years,” said a Hong Kongbased shipping executive. Shanghai International Port Group (SIPG), the dominant operator, plans to combine the operations of Yangshan’s Phase I and Phase II terminals this year, which will be overseen by a new joint venture set up by the five existing investors. SIPG president Chen Xuyuan said the shareholding structure of Yangshan’s seven-berth Phase III terminal has been finalised and an announcement will be made soon. Informed industry sources said Singapore’s PSA International and China Shipping Terminal Development (CSTD) have each been given a 30% stake in Phase III, which is expected to cost RMB9B (US$1.15B). SIPG, which owns and operates the five-berth Phase I, will be the second biggest shareholder with 20%, with Cosco Pacific and French container line CMACGM each holding 10%, according to one source. “We’ve got a big share in Phase III of Yangshan, but I can’t reveal the shareholding,” said a CSTD official, who asked not to be identified. Chen said the first four berths of Phase III are likely to be completed this year and the entire project is expected to become operational before the end of 2010. Hutchison Port Holdings of Hong Kong and APMT Denmark each have a 32% stake in Phase II of Yangshan, with SIPG holding 16% and Cosco Pacific and CSTD 10% each. ● China’s biggest auto ro-ro terminal at Phase VI of Waigaoqiao port, built by a joint venture of SIPG and Shanghai Automotive Industry Corp, will become operational in the second half of this year. February 2007 Section 2 24/2/07 10:13 am Page 5 CAN YOU NAME ONE THING THEY ALL HAVE IN COMMON? XXL XL L M S WE CAN THINK OF MANY... MADE BY A TRUSTED ACTOR IN THE MARKET PROVEN & RELIABLE EQUIPMENT SERVICEABLE 24/7 WORLDWIDE INTEGRATED INTELLIGENCE & AUTOMATION OPERATING IN 140 COUNTRIES KALMAR CONTAINER HANDLING SYSTEMS PRODUCTS ARE JUST PART OF THE SOLUTION! You can trust Kalmar to get things turning around faster. Our unmatched industry expertise, full portfolio of port machines, system integration experience and outstanding service and parts support is designed to come seamlessly together to make your business more responsive, flexible and productive. Use an innovative, trustworthy Kalmar ship-toshore crane, rubber tyred gantry crane, automated stacking crane, straddle carrier, shuttle carrier or reach stacker to sharpen your competitive edge. All backed by guaranteed service support and assured parts availability 24/7, year after year, anywhere in the world. Kalmar products are trusted by many, but our solutions make us the preferred partner in the industry. www.kalmarind.com Section 2 2/3/07 11:43 am Page 6 WorldCargo news PORT NEWS Grimaldi buys into Unikai In a surprise move, Italian operator Grimaldi has acquired a 49% stake in HHLA’s Unikai terminal at the O’swaldkai in Hamburg. Terms of the deal, which is subject to approval by the federal Kartelamt, have not been disclosed. In this way, HHLA has secured its ro-ro activities, as Grimaldi is the single biggest customer at the facility, with 115 sailings a year that are responsible for 40% of the terminal’s annual throughput of 120,000 vehicles. O’Swaldkai is located at the Hansa dock in the eastern corner of the port, in the area called Kleiner Grasbrook. In total the terminal handled 795,000t in 2006 (+4% on 2005), including general cargo and 125,000t of project cargo. The packing centre handled 300,000t of cargo, but some of this is moved in and out by truck and is not moved over the quay. The acquisition, made within the overall framework of Hafen An aerial photo, looking north, of the Unikai terminal in which Grimaldi has taken a 49% stake, showing two Grimaldi car carriers moored. The passenger ships at the other bank of the Elbe are moored alongside the Unikai-managed HHLA cruise terminal. Dubbed HafenCity, this small part of town is going to be developed as a Docklands-style estate for exclusive housing and small enterprises. (Photo: Unikai, Hamburg) Hamburg’s policy to sell off 49% of HHLA in order to help fund future investments, will enable Grimaldi to make Hamburg its second hub for vehicle traffic in North-West Europe, after Antwerp. HHLA stated that the facili- ty’s multi-purpose role for project cargo and general cargo will also increase. It added that it had already decided to invest in modernising the terminal in the next few years, before the Grimaldi deal, and it stressed that the Seven for Brisbane November 2006, Maersk Line joint CEO Eivind Kolding said APMT had “no current interest” in terminal development in Australia or New Zealand but was constantly reviewing the situation. On the other hand, HPH last year was involved in a scheme to take part ownership and management of NZ’s South Island port of Lyttelton, which did not proceed due to local opposition. Observers consider the named financial institutions are likely to be members of other consortia rather than mounting bids in their own right. Equally, it is thought MSC and CMA CGM are just as likely bidders as Maersk/APMT, having previously indicated their interest in Port Botany’s third terminal. Local reports that two of the world’s leading terminal operators have submitted expressions of interest for Brisbane’s Fisherman Islands Berths 11 and 12 are being treated with scepticism in industry circles. The Courier Mail newspaper claims that Hutchison Port Holdings (HPH) and APM Terminals (APMT) are amongst the shortlisted parties, as well as a Macquarie Bank-led consortium, another involving the Queensland Investment Corporation, and the previously-identified OPM/ Linfox/Westgate group. It also mentions “a keen group from the Philippines” - presumably AICTL, the joint venture between ICTSI and Richard Setchell’s Sydney-based Anglo Ports - but does not mention bids by the incumbents Toll/Patrick and DP World although both are understood to be participants. The Port of Brisbane Corporation (PBC) is maintaining a strict silence on the matter and will only reconfirm that seven proposals were received from “a range of wellknown and highly respected Australian and international terminal operators and shipping lines.” The tender process is expected to be completed by mid-year. During a visit to Australia in late terminal will remain multi-user. The deal covers only Unikai Lager & Speditionsgesellschaft GmbH, which operates the O’Swaldkai terminal, and not the EC depot in the Steinwerder or the Hamburg Cruise Centre in Hafencity, which are managed by other Unikai companies. For the time being at least they remain 100% HHLA subsidiaries. Grimaldi will have two of the four seats on the Supervisory Board of Unikai L&S. HHLA will keep the chair and the company’s management will reportedly remain unchanged. News of the deal overshadowed the official announcement of Hamburg’s cargo figures in 2006, which set a new performance record for containers.At 8.9MTEU (89.5 mt), container traffic rose by 9.6% or 774,000 TEU, somewhat higher than the average 8.6% increase on the North Continent range. The containerisation index increased from 96.8% in 2005 to 97.2%, but conventional general cargo still totalled 2.6 mt, just slightly down on the 2.7 mt handled in 2005, thanks to a 22.9% increase in fruit imports. Contenemar books box crane orders Spanish terminal operator and owner Contenemar has placed a €9.5M (US$12.4M) order for two post-Panamax Paceco Portainers with Paceco España for its terminals in Las Palmas, in the Canary Islands and in the mainland Port of Valencia The cranes, slated for delivery in March and April next year, will have a waterside outreach of 46m, with a backreach of 12m. Following Paceco España’s normal practice for “home” ports, the cranes will be fabricated in northern Spain and shipped in pieces to the terminals, for erection, testing and commissioning on site. Contenemar is expected to make further purchases of cranes and other container handling equipment during the course of the year after requesting a new 50,000 m2 facility for containers at the Port ofVilagarcía, in Spain’s north western province of Galicia. Elsewhere in the Canaries, Boluda Shipping, part of the Naviera Pinillos group, has acquired La Luz container terminal in Las Palmas from Acciona for €21M. Boluda already held an 18% stake in the terminal. Boluda has now concentrated all its Las Palmas traffic at the La Luz terminal; part of this had previously been handled at rival Opcsa. Total traffic moved by the line through the port is around 85,000 TEU/year. La Luz also handles containers on behalf of Transatlántica, Maersk, Maruba, Zim and JSV. The terminal is due to be doubled in size early this year, during which it’s quay length will increase to 800m with a depth of 14 m alongside. Expansion planned for Nansha Guangzhou Port Group (GPG), the dominant operator at China’s thirdlargest port, is finalising plans to expand container handling facilities at its satellite Nansha facility in the Pearl River Delta. The state-owned company will seek Beijing’s approval to develop Nansha’s Phase III at a cost of more than US$600M, a source close to GPG said. The move comes as the sixberth Phase II container terminal is heading for completion by the end of this year. Its first two berths became operational in December. GPG owns 41% of Guangzhou South China Oceangate Container Terminal Co, the joint venture that is building Phase II at a cost of Yuan4B (US$512M). Hong Kongbased Cosco Pacific holds 39% and Denmark’s AMP Terminals 20%. The terminal’s 2,100m quay has a depth alongside of 14.5m that can be dredged to 17m to accommodate larger ships of the future. Spread over 2.73M m2, it will have annual handling capacity of 4.2M TEU. Nansha’s four-berth Phase I, in which China Shipping Development Co has a 40% stake, handled 2.4M TEU last year, up 122% from 1.08M TEU in 2005. Nansha’s growth pushed Guangzhou port’s throughput to 6.6M TEU last year, up 41%, making it China’s fifth largest container port behind Shanghai, Shenzhen, Qingdao and Ningbo. Guangzhou authorities plan to spendYuan20B (US$2.56B) to expand the port’s cargo handling capacity to 350 mt and more than 10M TEU by 2010. GPG handled 200 mt of the 300 mt of cargo that moved through the city’s port last year, according to official data. The company is said to be firming up plans to raise US$750M through an initial public offering in Hong Kong in the fourth quarter of this year. Energy and Data for STS Container Cranes All over the world, crane manufacturers of every type seeking solutions for any application trust the engineering and solution competence of Wampfler. Energy and data transmission – Wampfler does the complete job; from initial planning, to on-site installation and final inspection and testing, our services ensure the reliable movement of materials across the globe night and day without delay! 2007 C O T I A A S 4 .tocwww STA 6 even ts.co ND www.wampfler.com m E February 2007 Section 2 24/2/07 10:16 am Page 7 WorldCargo news PORT NEWS DPW to begin work Gallozzi looks inland on Qingdao terminal Dubai-based DP World (DPW) is preparing to start construction work on its second container terminal at Qingdao, China’s third largest container port, which will cost Yuan3.48B(US$450M). The agreement to build and operate the four-berth terminal at a greenfield site was signed with the Qingdao government in November 2005, but the approval process took more than a year because the facility will be wholly-owned by DPW. International port operators have set up joint ventures with state-owned companies to operate container terminals in China since the early 1990s, but this is the first time a foreign operator has been given full ownership. The terminal, to be developed by subsidiary DP World China Qingdao, will have a 1,320m quay and is expected to become operational by the end of 2008 or early in 2009. DPW has been granted a 50-year concession to operate the terminal, which will have annual handling capacity of 2M TEU. DPW’s investment in Qingdao is part of its strategic focus on the growing markets of China and North Asia. The com- pany already has a joint venture terminal in Qingdao, but DPW chairman Sultan bin Sulayem said,“We are always looking at opportunities in China, which is very important for us.” DPW also has equity stakes in container terminals in Hong Kong,Tianjin andYantai, but trails larger rivals Hutchison Port Holdings of Hong Kong and Singapore’s PSA International in China. Qingdao handled 7.7M TEU last year, up 22% over the 2005 figure. Gruppo Gallozzi is looking to integrate port and inland terminal operations in order to create more capacity at its spacerestricted container terminal in Salerno and provide a better service to customers. The first move was made last December, when Gallozzi acquired shares in Terminal Intermodale Nola (TIN).As the facility is located about 30 km from Naples and Salerno, it is considered an ideal buffer zone for both ports. Inbound containers can be shipped there by truck or block trains that can return with export containers stored there temporarily for forwarding to the ports. This means, says Galozzi, that import containers can be delivered more quickly after discharge, while export containers can be buffered at TIN at any time without the delays caused by the bustle of town and port traffic. Container storage is cheaper at TIN than in the ports and all depot facilities including fumigation and phytosanitary inspection are available. The terminal is connected by block trains to Milan Segrate, Munich, Bari, Naples, Salerno,Táranto and Gioia Tauro and other destinations will be provided at customer request. The stacking area for containers and swap bodies occupies more than 22.5 hectares, there are 13 rail tracks and a number of switch engines. Gallozzi plans to introduce 4 TEU/6 TEU multi-trailer sets, on the same lines as its successful operation at SCT, which guarantees lines 23 moves/crane hour using five mobile cranes equipped with twin-20 spreaders. TIN will also implement a completely new computer system created by Esoware, Gallozzi’s own software house, and Copas, featuring full EDI based on SMDG rules, E terminal, security, yard planning, customs documentation, invoicing, bookings and releases via the Internet. Traffic reached almost 420,000 TEU in 2006 at Salerno Container Terminal and it is impossible to expand it. Provisionally throughput fell somewhat in 2006, due to a realignment of services resulting from Maersk’s takover of P&ON and HapagLloyd’s takeover of CP Ships. www.gottwald.com No joy for Gioia Tauro Cecilia Battistello says the port is being held to ransom by the unions Contship Italia SpA (CI), part of Eurogate group, has threatend to close its Medcenter Container Terminal (MCT) transhipment hub in Gioia Tauro after a second 3-day strike disrupted port operations. Local sources say that the strikes have cost MCT 120,000 TEU in lost throughput and it is now unlikely that the terminal will attract business from MSC, which was preparing to shift transhipment business from Piraeus because of labour unrest there. “In the final analysis,” said CI’s president Cecilia Battistello, “the credibility, reputation and strength of our company has allowed us to build and maintain this port, which had no history and was always viewed with suspicion by shipping lines. “Gioia Tauro exists thanks only to us but we are forced to reflect on its future and may be obliged to wipe it from our port map if the obstructionism of the unions persists.” She also suggsted that Maersk, which has a 30% share in MCT, was already reorganising its Western Mediterranean call patterns in order to avoid calling there altogether. She said the port was being held to ransom by a small union, even though CI had already met 80% of the demands it was making for a new contract to cover the company’s move to increase traffic levels. “In the nature of the market, transhipment terminals are fragile structures that can be marginalised by deepsea carriers in the course of just a few hours. Once the traffic has gone, it may never come back.” MCT’s throughput was down last year by about 7%, to around 2.94M TEU, due to Maersk’s transfer of East Med transhipment traffic to SCCT Port Said. February 2007 The New Generation 5 – SCT in Southampton Knows Why With the new Crane Generation 5 from Gottwald Port Technology, port handling is advancing into new dimensions at Southampton Container Terminals (SCT), UK for example. Recently, a G HMK 6406 Mobile Harbour Crane was put into operation with a lifting capacity of 100 tonnes. Naturally with diesel-electric drive. Customised for professional container handling. An example of customeroriented, efficient solutions. An example taken from the many different variants of the new Generation 5 from Gottwald. For all types of handling, all ship sizes and terminals of every size. Gottwald Port Technology GmbH • Postfach 18 03 43 • 40570 Düsseldorf, Germany Phone: +49 211 7102-0 • Fax: +49 211 7102-3651 • e-mail: [email protected] • www.gottwald.com Southampton Container Terminals Ltd • 204-207 Western Docks • Southampton SO15 1DA, UK Phone: +44 23 8070 1701 • Fax: +44 23 8070 2565 • e-mail: [email protected] • www.sct.uk.com Generation 5 – You Name it, We Crane it 7 Section 2 5/3/07 3:52 pm Page 8 WorldCargo news PORT NEWS Karachi project moves on No sixth Newcastle tries again Karachi Port Trust (KPT) has issued a pre-qualification notice for the dredging, reclamation and marine protection work necessary to develop its planned new deepwater container port to the east of Keamari Groyne (see WorldCargo News October 2006, p8). The feasibility study for the new facility was conducted in mid-2005 by Posford Haskoning of the Netherlands in association with HR Wallingford of the UK and Techno Consult International. KPT envisages the new port serving as a major regional transit and transhipment hub for current and future generation vessels The KPT has already invited expressions of interest in operating the first four-berth phase, which will have 1,500m of quay with a depth alongside of 18m and is scheduled to enter service before the end of 2009..Annual capacity of this phase will be 2M TEU. Nine operators have submitted pre-qualification documents, including Hutchison Port Holdings (HPH), PSA International, DP World, APM Ter minals, CMA-CGM , ICTSI, KGL Port International, Gulftainer Company and Noorfinancial Investment (Kuwait). The concession to operate the facility will be for a period of 25 years, extendible for a further 25 years. 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M Please debit my American Express M Visa M Mastercard M (please indicate card and currency used) M M M M M M M M M M M M M M M M Expiry date MM MM sense in Genoa Italy’s highest court (Consiglio di Stato) has rejected a joint appeal by PSA Sinport and the Port of Genoa (APG) against a decision of the Ligurian regional court (TAR Liguria) that the APG was wrong to award the sixth module at Voltri container terminal (VTE) without going out to public tender. As previously reported (see WorldCargo News March 2006, p8), TAR Liguria accepted an appeal against the award brought by Contship Italia SpA.The port had argued that the sixth module, a 300m berth with 15 hectates of back-up, could not be considered autonomous as it has no separate road or rail access and was only a natural extension of the existing facility operated by PSA Sinport. TAR Liguria rejected that as an argument for not organising a tender in line with EU competition rules and upheld Contship Italia’s appeal accordingly. APG had stated before the appeal was heard that it was prepared to order a tender if required, but TAR Liguria’s judgement took it and PSA Sinport by surprise and they took the case to the Consiglio di Stato. The higher court’s decision leaves PSA Sinport with nowhere to go, unless it decides to appeal the judgement at European level, which would add even further to the delay - the sixth module is already more than three years behind schedule - and have no guaranteed outcome. A PSA Sinport spokesman indicated that the company regards the court’s decision as final. “We respect the decision of the Cosiglio di Stato, even though we are at a loss to understand it.All the same, we remain strongly committed to growing traffic atVTE and remain a candidate for the sixth module under the new procedure [that APG now has to initiate].” The company had already ordered new cranes for the sixth module. Its business plan is in limbo, while the much-needed further development of Genoa’s container capacity has been further delayed. Name .............................................. ........................................................ Title.................................................. ........................................................ Company......................................... ........................................................ ........................................................ Address............................................ ........................................................ ........................................................ ........................................................ ........................................................ Signature....................................................................Date .................................................................... Company business .......................... WCN Publishing, Northbank House, 5 Bridge Street, Leatherhead, Surrey KT22 8BL, England. Fax. +44 1372 370111, Tel. +44 1372 375511, www.worldcargonews.com ........................................................ Please make payments to: WCN Publishing WCN PUBLISHING VAT No: 644 2190 53 Fax................................................... 8 A fourth attempt is being made to redevelop the former BHP Steelworks site in Newcastle, this time under the name Intertrade Industrial Park. The New South Wales government has announced it will invest another A$22M in wharf and port infrastructure at the 150-hectare site, including an upgrade of the former BHP Ore Berth Five and the provision of up to 80,000 m2 adjoining the wharf for port-related uses such as cargo handling, storage or an assembly area. Previous plans for the site have been derailed by questions over land ownership, quality and quantity of supporting infrastructure, and the government’s long-term intentions for the facility, which is earmarked for eventual development as NSW’s next major international container terminal after Port Botany reaches capacity. The government announced A$8.1M in infrastructure funding in 2006, including a new waste water transfer system and upgraded road and rail access.Those projects are due to get underway in 2008. Previous plans for the BHP site have been derailed by questions over land ownership and the suitability of the infrastructure NSW Premier Morris Iemma said while there had been interest by private companies in portions of the former steelworks site in the past, the government recognised that more needed to be done to help secure the future development of the area. The Regional Land Management Corporation, in partnership with the Newcastle Port Corporation, is managing the Call for Proposals on behalf of the NSW Government. The Call for Proposals builds on the draft master plan for the site which was released in October 2006. That plan proposed that approximately 90 hectares of the site, including all waterfront land, would be used for port and freight industry, with provision for around 35 hectares of that land to be used for a future container terminal. The remaining 60 hectares may be used for general/port support industry. TIDE in at Manta The Ecuadorian port of Manta has been formally handed over to Terminales Internacionales de Ecuador SA (TIDE), part of the Hutchison Port Holdings (HPH) group, which won a 30 concession last year to develop and operate the port (see WorldCargo News August 2006, p15). Speaking at the hand-over ceremony at the end of last month, Paul Gallie, general manager of TIDE stated, “The Port of Manta is strategically located on the west coast of Latin America, within one hour’s distance from international shipping routes, making it the ideal first port of call in the region by global shipping lines. We plan to develop TIDE into a modern cargo handling facility, which provides world-class services to global carriers and attracts international trade activities to Ecuador.” Upon completion of all planned phases of development, involving an investment of around US$523M,TIDE will have a total quay length of 1,700m, depths alongside of up to 16m and a total area of 63 hectares, and be capable of handling bulk, containers, general cargo, vehicle imports and exports and cruise traffic. In addition to the development of the commercial port, a new fishing terminal will be built, offer ing substantially more berthing space to the local and international fishing fleet. Forth Ports pulls out of Multi-Link UK-based port operator Forth Ports plc has pulled out of MultiLink Terminals (MLT), its joint venture with Containerships Oy, possibly as part of a strategy to fend off a hostile bid, long rumoured to be coming from Macquarie. The original agreement between Containerships and Forth Ports gave the latter a presence in the fast-growing Baltic region, while Containerships needed the financial strength of a larger organisation to expand its presence there. Following Eimskip’s purchase of 65% of Containerships (with an option to buy the rest at a later stage), the Finnish company reviewed its investment in MLT and agreed to buy out Forth Ports for €28.5M in cash. Forth Ports acquired its 50% stake in MLT, which operates terminals in Helsinki and Kotka, for €20M in December 2004. Forth Ports says it has no immediate plans to reinvest the sum received from Containerships for its stake, but will continue to look for other port-related opportunities in the Baltic region. Meanwhile, Eimskip is integrating Containerships’ shipping operations with those of Kursiu Linija, which it bought last year.As of this month, all Kursiu Linija services are being operated under the Containerships name. Containerships will also have its own agents in Lithuania and Latvia. February 2007 Section 3 2/3/07 5:53 pm Page 9 Section 3 26/2/07 4:17 pm Page 10 WorldCargo news PORT NEWS Eight to Mombasa tender doubtful bid for Khalifa The government of Abu Dhabi is considering pre-qualification bids from eight consortia for the first of several large contracts for the Khalifa Port and Industrial Zone (KPIZ), to be developed as a major transhipment, industrial and logistics hub. Major marine works, including quay walls, dredging and land reclamation will commence in the next few months, said Ahmad Saeed Al Calily, managing director of Abu Dhabi Ports Company (ADPC). He said the contract could be worth around US$1.5B and the tender process will be announced soon. Located at Taweelah between Dubai and Abu Dhabi, the port will be developed on a reclaimed island and the first vessel is expected to arrive in September 2009, Al Calily said. When the first phase is completed, the port’s container handling capacity will be 2M TEU/year, increasing to 8M TEU in 2015. Dubai-based DP World, which last year took over the management of the existing Mina Zayed port, is likely to be chosen as the operator of Khalifa Port. “Our strategic interests are aligned,” Al Calily said, adding that it remains to be decided if DP World will be an equity partner or just the manager of the facility. He said the new por t is needed because Mina Zayed has been “encroached” by the city’s growth and the port area will be redeveloped as a commercial area. The government may also consider developing Mina Zayed as a cruise hub, Al Calily said. Khalifa Port will be connected to the mainland by a 4.5 km causeway. Phased development will see more than 100 km2 of industrial, logistics and commercial zones.The project could take 50 years to develop fully. Al Calily said ADPC is keen to enter into joint ventures with private companies for developing various parts of the project, including real estate and infrastructure. According to recent statements by government ministers, the main Kenyan port of Mombasa is likely to remain state-controlled. The Minister for Transport, Chirau Ali Mwakwere, told journalists, “We have found the push for privatisation to be unnecessary, unjustified and counterproductive. The local people need to be part and parcel of the privatisation process. I don’t believe they have been involved.” This contradicted Finance Minister Amos Kimunya’s assertion that privatisation was high on the list of government priorities, but Mwakwere’s sentiments appear to express the prevailing view within government. Many Kenyans have opposed the privatisation of the Kenya Ports Authority (KPA) port, although the term “privatisation” is often used somewhat loosely in many African countries. Rather than the outright sale of the port or of the KPA, the government was considering offering a fixed term management contract, prob- It looks like the Port of Mombasa will remain under state control ably just for the container or bulk terminals, with the KPA fulfilling the role of landlord.The performance of the neighbouring container terminal of Dar es Salaam is widely thought to have improved markedly since it was taken over by HPH in 2000. The “about turn” on Mombasa may have much to do with the apparent unpopularity of the tender plans and the state of domestic politics. Presidential and legislative elections are due at the end of this year and the ruling National Rainbow Coalition is currently rather fragmented. Transferring control of the port to foreign private sector interests would have done little for its electoral chances.According to the KPA, its workforce has been cut from 12,000 to 5000 over the past two years and there is little scope for private sector operators to make further cuts. Cars for PK - under protest Sydney’s motor vehicle and ro-ro trades will reluctantly move to Port Kembla from late this year after New South Wales Ports Minister Joe Tripodi refused to reverse the unpopular decision to abandon existing facilities in Darling Harbour and Glebe Island. Federal Chamber of Automotive Industries (FCAI) chief executive Peter Sturrock has made it clear that the industry remains vehemently opposed to the move but has been forced to “agree to disagree,” with the government offering just A$10M towards an expected cost of A$160M for the move. Port Kembla, south of Sydney, will handle more than 240,000 vehicle imports each year from the end of 2008, with the vast majority of those units having to be moved to Sydney by road. The FCAI had seriously considered moving the vehicle imports north to Newcastle, which, it argued, has three times more space, better road access and greater convenience for the transport industry, but the upgrading of Port Kembla, with new multi- purpose berths on a designated 40 hectare site in the inner harbour, is already underway. The Chamber says it has no alternative than to follow the government’s directive, even though it believes there will be a lack of flexibility to handle vehicles onwharf at Port Kembla and road links between the port and processing facilities in Sydney are poor and unable to handle the volumes concerned. “We cringe regarding the road safety issues because these roads are not built for large B-doubles and semi-trailers. It could become quite a serious community matter and the government will stand entirely responsible for both of these issues,” Sturrock said. One of the biggest opponents of the Sydney exit, Wallenius Wilhelmsen Logistics (WWL), has secured almost A$1.2M of Federal Government funds to build a A$2.8M vehicle processing facility at Port Kembla to replace existing processing facilities in the western Sydney suburb of St Mary’s. WWL, which had put up a number of credible alternative proposals for redevelopment of Glebe Island and White Bay, only to see them ignored or knocked back, will take advantage of the Federal Government’s A$5M Port Kembla Industry Facilitation Fund, made available in mid 2006, to part-pay for the new processing facility. It will be located about 6 km from the port and will handle trucks, buses and tractors, with plans ultimately to expand it to handle other vehicles.The facility is due to be opened by the middle of this year. Ironically, just as the FCAI accepted the inevitable, a “Save Sydney Harbour” campaign to keep commercial shipping in the port city began to gather momentum, thanks largely to the involvement of high profile radio personality Alan Jones. With the state facing an election on March 24, Opposition leader Peter Debnam has pledged to reverse the Port Kembla decision - but while this has resonated with some Sydney electors, Port Kembla interests are aggrieved at the potential loss of business. Industry remains sceptical about the possibility. New deepwater box terminal at Vlissingen? The Dutch Port of Vlissingen may, after all, get a new deepsea container terminal that could open in 2010 and is nothing to do with the troubled Westerschelde Container Terminal (WCT) project (see last month’s WorldCargo News, p6). The plan to convert a multipurpose terminal has attracted widespread political interest, as it can be realised far more quickly than the controversial WCT and would be much less expensive. Private local terminal and transport group Verbrugge plans to enter the deepsea container handling league by converting its facilities in the vast Flushing East port basin.With its 1800m of quay wall and an area of 80 hectares, the new facility would have a potential for around 2.5M TEU/year, the company believes. The terminal is projected at the Quarleshaven and the (perpendicular to it) Bijleveldhaven and would require an investment of €250M, including knocking down the existing forest products and general cargo warehouses. Replacing the quay wall and commissioning navigational adjustments to the port’s entrance would cost Zeeland Seaports, the port authority, about €85M, consultants Koppies & Stevens have calculated forVerbrugge.This contrasts with the €330M projected for WCT, which needs to be reclaimed entirely from the sea. Backed by pilots’ advice, the new terminal’s supporters claim that even EMMA MAERSK-class ships could access the terminal and would still be able to turn 180deg in order to sail off bow first. Draught is not a restriction at Flushing at the very mouth of the Westerschelde estuary. Dubbed Verbrugge Container Ter minal (VCT), the facility would aim for 300,000 TEU in its first full year and it is envisaged that about 60% of the inland moves would be by barge. A start date in 2010 is said to be feasible as converting the existing terminal needs no additional environmental permissions. The project could be seen by the Port of Rotterdam, which is clearly opposed to WCT, as another threat. A second deepwater terminal would enter the scene without it being involved.Already works are in progress for the 53 hectare South Sea Terminal of SeaInvest and Zuidnatie.This will be located in the Scaldiahaven, also in the Flushing East port complex. The two Belgian operators are tight-lipped about how many containers they are aiming to handle at this “multi-purpose” terminal, the first stage of which is due to come on stream next year. PSA mulls Panama Though it is one of five international terminal operators to have submitted a preliminary bid to build and operate a mega container port near the former US airbase at Howard at the Pacific Ocean entrance to the Panama Canal (see WorldCargo News August 2006, p6), PSA International appears to be keeping its Panama options open. The Singapore-based operator is reported to be showing interest in the construction of a new terminal at a port at the former Rodman naval base on the west side of the Panama Canal. According to local press reports, PSA International representatives will meet this month with members of the Commerce Ministry (MICI) and the Panama port au- thority, Autoridad Maritima de Panama (AMP), to discuss details of the project. Though no details have been released, sources in Panama said PSA was considering an investment of around US$150M to build a three-berth terminal with a capacity of around 750,000 TEU/year. To construct the new terminal, PSA would have to reach an agreement with private port operator Puerto Industrial Marítimo de Panamá (PIMPSA), which currently operates the port’s marine industrial park. If it is built, the Rodman facility would pose direct competition to the HPH-owned Panama Ports Company’s container terminal at Balboa. Radio switched on in Morehead City Development of a new port terminal on Radio Island at the Port of Morehead City, NC, is proceeding to the next phase following the completion of initial assessments and design studies by engineering design firm Moffatt & Nichol. A traffic-management analysis was included in the first phase and has been provided to local civic and government leaders and to the North Carolina Department of Transportation. Phase 2 of the Radio Island port development will include solicitation of prospective private partners, along with additional civil and structural engineering design and terminal layout planning. Meanwhile, the North Carolina State Ports Author ity (NCSPA) Board of Directors approved contracts covering several projects in Morehead at its January 25 meeting in Raleigh. Paving programmes make up a large part of the plans for new construction, with a contract ap10 proved for the engineering design of a paved, open cargo storage area on the site of the former Port Operations complex. The 8-acre tract is adjacent to a new warehouse currently under construction by Duke Realty.When completed, the additional paved area will bring the total paved open storage at the port to just under 20 acres, more than offsetting the space eliminated as a result of the construction of the new warehouse. In conjunction with the paving work, the Board awarded a US$375,000 contract for the demolition of the old Port Operations complex to Garrison Construction Company of Newport. The buildings have been unusable for operations since they were damaged in 2005 by Hurricane Ophelia. Funding for the Port Operations complex demolition and the subsequent repaving projects also comes from the State Repair and Renovations fund. February 2007 Section 3 26/2/07 4:18 pm Page 11 WorldCargo news PORT NEWS Göteborg record Traffic through the Port of Göteborg reached new record levels last year, with total cargo throughput reaching 40.7 mt, up 10% on the 2005 figure. Container traffic hit 820,000 TEU, up by 4% year on year, while ro-ro units amounted to 644,000, an increase of 12%. Oil traffic, amounting to half the total, or 20.6 mt, topped a record that had stood for more than 30 years. The increases in container and ro-ro traffic are ascribed in part to growing transhipment between the Baltic countries and the rest of the world and continuing success with railborne pre- and on-carriage The port recently completed a SEK1.7B (US$243M) investment programme that included improvements to the entrance channels, container and ro-ro terminal enhancements and new equipment. A new investment package of nearly the same size is now being launched for completion by 2010. This includes new buildings, terminal areas, ramps, cranes and an adaptation of yards to unit parking and storage. “We need this as we enter a new dimension in port business. Our aim is to develop and widen our Nordic/Baltic catchment area,” said Magnus Kårestedt, president, Port of Göteborg AB. The Port of Göteborg is embarking on a new development phase Guam gets new HMC Technicians have started reassembling a 104t capacity Liebherr harbour mobile crane that the Port Authority of Guam (PAG) purchased from Singapore’s Jurong port (see WorldCargo News September 2006, p15). PAG bought the five year old crane for US$3.7M last year after one of its three old gantry cranes, a 1969-built Paceco Portainer, broke down and was decommissioned after it was deemed to be unsafe and beyond repair. The Liebherr crane will be used mainly to handle smaller feeder vessels at the Jose D Leon Guerrero Commercial Port, but can also work on larger vessels, port officials said. PAG is in the process of buying a new gantry, using about US$7M it has received in federal loans. “As our island prepares for tremendous growth, we are ensuring that our seaport is equipped with the necessary infrastructure to support this growth,” Governor Felix Camacho said. Tacoma terminal completed The Port of Tacoma has completed a further expansion of Washington United Terminals (WUT), increasing it from 80 acres to 102 acres (41.3 hectares). WUT boasts four postPanamax cranes and a 2000ft wharf.The facility includes a 23 acre on-dock intermodal yard with total trackage of 16,864ft (5140m) and ramp capacity for 52 double-stack railcars. It is located on the 15.5m deep Blair Waterway. Initially completed in 1999 as a 60 acre terminal,WUT was the first container terminal built on the upper Blair Waterway following the removal of a narrow drawbridge that had prevented the transit of large containerships. The port completed a US$8.6M expansion in 2001, bringing the facility to 80 acres. Last year Tacoma handled around 2.07M TEU, practically unchanged from 2005, when it posted a 20% growth in international container traffic compared to 2004 MTC International Rotterdam proposes CO2 initiative UAE terminal open in Chile move The first berth of the new container terminal at Mina Saqr in Ras Al Khaimah, United Arab Emirates (UAE),, with an annual handling capacity of 350,000 TEU, will be officially opened in March. The US$70M Phase I, developed and managed by Kuwaitbased KGL Ports International (KGLPI) under a 21-year government concession, started handling cargo in January. The Mina Saqr Container Terminal is equipped with three Liebherr ship-shore cranes, six Kalmar RTGs and a full complement of back-up equipment and facilities. Navis terminal management software, which will be integrated with an Oracle computer system, has been installed. According to KGLPI chairman Mohammad Al Mazeedi, second phase expansion will see the terminal’s capacity increase to 3M TEU/year over a period of five years at an estimated cost of US$250M. “We are in the final stages of the technical, operational and financial studies for undertaking the Phase II expansion,” he said. “KGLPI is emerging as an internationally recognised developer and operator of ports and we are implementing a strategic plan to add two additional ports to our portfolio every year,” Mazeedi said. The company is currently building a new container terminal at Damietta in Egypt with a capacity of 4M TEU per year. Kenneth Bedward, KGLPI’s chief commercial officer, said several major shipping lines are expected to use the Mina Saqr terminal, which has a strategic location very close to the major shipping routes. “The port is also uniquely placed to handle transhipment operations, especially with Bandar Abbas in Iran,” he said. MTC International, a division of US-based MTC Holdings, has acquired a “relevant stake” in Transtainer SA, the Chilean logistics company based in the port of San Antonio, and its subsidiary Seaport SA. “We’ve been focusing on the west coast of South America for quite some time and are pleased to become established in this important region,” said Marine Terminals Corp’s president and CEO Doug Tilden “We couldn’t have found better partners than the founders of Transtainer and Seaport.” These are Mario Urrutia and Horacio García, who have been involved in port and maritime activities in Chile for more than 20 years. Transtainer operates a fleet of container haulage trucks as well as ground handling equipment reach stackers, ECH mast trucks and FLTs, while Seaport special- ises in providing cargo logistics for agricultural, forest and industrial export companies and retail, industrial and automobile import products. Approved by Chilean Customs as a bonded warehouse, the company provides services in the vicinity of San Antonio port. ● Chilean MP Samuel Venegas has spoken out against the possible adoption by the port of San Antonio of a single operator. He believes that this system could result in incidents of labour abuse by the port company, as well as restricting competition. He would support any move towards the introduction of several competitive operators in the port. ● Valparaíso Port Company (EPV) posted a record 40% increase in overall traffic in 2006 to reach a record 7.9mt. EPV is to invest US$210M in building a new 20 mtpa terminal, to double existing capacity. Portek. Full-spectrum port productivity solutions. As global commerce continues to grow, the pressures for increases in port efficiency and capacity continue to build. To meet the challenge, Portek offers the port industry a full 360-degrees of support– – with equipment, large-scale modernization and modification engineering upgrades, parts and spares, plus a complete array of sophisticated IT, wireless, automation and security technologies. We pride ourselves on providing high-productivity, yet cost-effective solutions that reflect the leading ‘best practices’ in port operations. We call it maximum-value thinking. In all, we bring 18+ years of global experience in enhancing port productivity that has ranged from emerging markets to super-hubs. So, when you're considering the best ways to capture a bigger share of the globalization marketplace, let’s talk. www.portek.com enquiry-wcn @ portek.com Tel: +65 6873-1114 February 2007 The Port of Rotterdam Authority (HbR) has suggested to the new Dutch Cabinet that €400M be set aside for the collection, storage and recycling of the greenhouse gas CO2.This money could come from the Economic Structure Reinforcement Fund (FES). HbR points to the large number of energy-intensive companies, refineries and power stations in Rotterdam. Furthermore, a series of expansions are planned for the coming years. This is all contained in a letter it has sent to the new Cabinet. CEO Hans Smits said that the very fact that huge amounts of CO2 are produced in Rotterdam offers possibilities for a large-scale reduction in carbon emissions. HbR “wants to play a pioneering role in the coming years, working with government and business to set up a relevant programme. But that will not succeed without an initial contribution from the state. If it wants to take serious action on combating the greenhouse effect, it has a wonderful opportunity here.” he said. This is an important initiative that is likely to be watched closely around the world. Historically ports and heavy industry have grown up together and so many port environments are major CO2 generators. At the moment most environmental initiatives in ports are being taken on a piecemeal basis, but a more systematic, big scale approach as advocated by HbR is now required, given the latest, dire warnings from the world’s scientific community. Marg pushes on with Karaikal port plan India’s Marg Constructions is preparing bid documents with the help of L&T Ramboll Consulting Engineers for the dredging works at its proposed Karaikal port in Tamil Nadu state. “L&T Ramboll is assisting us with the technical aspects of the dredging works. Once that is done, we will seek international companies to carry out the work. The process will take about two months,” said Marg’s chief financial officer Br ij Bhushan. Bhusan said Marg was aiming to complete the first phase of the project by October 2008. The port, being developed on a build-operate-transfer basis, will ultimately have six berths to handle containers and bulk cargo. Two berths will be built in the first phase to handle around 4 mt of cargo annually and cater to the requirements of the industrial belts of both the Tamil Nadu and Puducherry areas. Marg expects a significant volume of cargo to transfer to Karaikal as there is growing congestion at the established Tamil Nadu ports of Chennai and Tuticorin. Humen port upgrade The Chinese city of Dongguan has announced a US$2.34B investment package over the next 15 years, of which 95% will be spent on expanding port infrastructure, especially that at Humen in the Pearl River Delta. This latter facility will integrate commerce, transport, logistics and manufacturing activities. At present, Humen is building two new deepwater harbour ar- eas, to which will be added a major new petrochemical terminal in 2008-09. By the end of 2010, the port will have a 5M m3 LPG facility in place, which will consist of nine terminals each capable of handling 50,000 tpd and 10 other berths capable of handling 10,000 tpd. In addition, the port authority is striving to develop an inland waterway network along the Pearl River. 11 Section 3 1/3/07 16:25 Page 12 WorldCargo news PORT NEWS New port for Delta Prat Wharf under investigation A somewhat embarassed Barcelona Port Authority (APB) has launched an international tender to contract an engineering company to discover what caused the displacement of 500m of concrete blocks in the sea wall of the port’s future Prat Wharf container terminal. APB is expected to spend €2.95M (US$3.87M) on the contract, which now forms part of a three month enquiry into the incident that, as reported in last month’s WorldCargo News (p11), allegedly occurred on 1st January this year. Repair works on the sea wall at the terminal are not expected to start before the end of April at the earliest. The incident has sparked a delay in a €55M order for six gooseneck, post-Panamax quayside gantry cranes that the Grupo Mestre-Hutchison consortium, the future manager of the termi- nal, was planning to place in the early part of this year. Furthermore, the incident is being seen in Spain’s maritime industry circles as a major setback for the biggest single infrastructure project in the Port of Barcelona’s history and has raised questions over the quality of the seabed where the Prat Wharf terminal is to built. The first phase of the container terminal was scheduled to be completed in 2008 but there are now concerns over the possibility of delays. APB says it still does not have an official explanation for the incident in which 15 concrete blocks, each 18.5m wide and 41m long, became displaced and pushed 120m out towards the sea. It has now contracted Spanish port engineer Jose Luis Estrada to play the role of commissioner to oversee the construction works of the Prat Wharf terminal. Associated British Ports (ABP)’s Port of Ipswich began 2007 on a positive note when it broke its cargo handling record by handling almost 28,000t of granular urea. CLIPPER FALCON (pictured) and HUTA ZGODA discharged 14,832t and 12,859t of agribulks, respectively, at the Ipswich’s Cliff Quay. Both cargoes beat the port’s previous record for the single largest consignment of imported goods which, at 11,541t, was set last year. The larger of the two consignments, imported by international agribulks and grain-trading company Ameropa AG, was shipped from Puerto Jose, Venezuela. Helm Fertilizers (GB) Ltd, a UK subsidiary of one of the world’s leading chemicalmarketing companies, imported the second consignment from Damietta, Egypt. “Thanks to the very high standards of ABP’s cargo handling operation at Ipswich, CLIPPER FALCON’s cargo was discharged in just three days, which highlights the port’s suitability to handle Ameropa’s agribulks cargoes,” said David Blackmore, commercial manager for Ameropa AG Plans have been drawn up for a new port in the troubled Niger Delta. The region is the centre of Nigeria’s oil and gas sector and, therefore, the source of most wealth in West Africa, but the local population has noticeably failed to share in the wealth. This has resulted in growing resentment at the oil and gas industry; kidnappings have become common and the Nigerian Navy has stepped up its patrols in the area in order to protect shipping. Now, in an effort to promote economic growth in the Delta, the federal and state governments hope to develop a major new deepwater port, the most likely site for which is Bayelsa state. Although oil and gas shipping facilities would form part of the venture, it is hoped that other industrial and processing investors can be attracted to the project. According to reports in Ni- geria, the port would be developed by a joint venture of the federal government and Dersko Marine Ltd in the form of a public private partnership. It is envisaged that four phases will be rolled out over 15 years. Although details of the number of berths and size of terminals have not yet been drawn up, a rail link is certainly planned and a container terminal has been mooted. Abuja is particularly keen to encourage manufacturing investment that can create employment in the region. A container manufacturing plant is planned for Escravos in neighbouring Delta state and similar ventures have been outlined for other states within the Delta that could use the port both to import raw materials and export finished products. The core port and possibly also outlying factories are likely to be granted free port status. Bouzas in demand Peugeot Citroën (PSA) is demanding to be allowed to take up all the available space at the new Bouzas expansion terminal in the northern Spanish Port of Vigo. Vigo is one of two PSA production centres in Spain (the other is Madrid) and produces Citroën Xsara, Picasso, C4, and Berlingo models, as well as the Peugeot Partner. The plant turned out more than 440,000 vehicles in 2005, of which 80% were exported from the Bouzas terminal. There is a deaily ro-ro service between Vigo and St Nazaire (Montoir) provided by Transmediterranea. Other car carriers calling include CSAV and UECC. By monopolising the expansion area, PSA will be able to boost current exports. It currently occupies a 230,000 m2 area within Bouzas, but requires a short term increase to 360,000 m2 in order to accommodate all its potential traffic. By the end of 2007, the company is projecting a throughput of 0.5M cars annually, for which new logistics routes will be implemented from Vigo. In the meantime, the company is making use of part of the 120,000 m2 area previously operated by the Suardiaz shipping line. SAPO’s Durban Car Terminal (DCT) recently achieved a record-breaking discharge of 5036 cars from Eukor’s dedicated PCTC MORNING CALM when it made its maiden call carrying automobiles from China, Malaysia and Korea. The previous record at DCT was 3600. “We had 70 drivers working round-the-clock to offload the vessel in around 45 hours,” said DCT’s manager Hector Danisa.“This required proper planning for storage space at G Shed and arranging teams and other resources to ensure efficient and continuous operations.” The South African market for cars is growing fast. Last year, DCT experienced a 41% growth in throughput to 389,681 units and is forecasting another 18% increase this year.The number of calls by Eukor alone increased from 25 in 2005 to 49 in 2006, with shipments up from 45,848 to 65,013 units Liaoning port spend Liaoning province in north east China is to invest Yuan8.5B (US$1.6B) this year to expand five of its major ports, including Dalian, Yingkou and Jinzhou, as part of a strategy to develop its coastal region. Investment in the province’s ports hit a record Yuan10.5B last year, according to Liu Wen, vicedirector of Liaoning’s foreign trade and economic promotion department. Six container berths are being constructed in the second phase of Dalian’s Dayaowan port, which is to be turned into a bonded area. After the third phase is completed, Dayawan port will have 7 km of quay with 21 container 12 berths and an annual handling capacity of 10M TEU. “As a free trade port, the Dayaowan Bonded Port Area can provide strong support for building Dalian into an international transportation hub in north east Asia,” said Dalian mayor Xia Deren. Cargo volumes at Dalian, the province’s largest port, rose 20% last year to 145 mt and container traffic rose 21%to 3.21M TEU. The bonded area will cover 6.88 km2, consisting of a container terminal, an automobile terminal and a logistics park, said Zhang Shikun, director of Dalian Bonded Area Administrative Committee. China’s other two bonded port areas are at Dongjiang in Tianjin and Yangshan in Shanghai. 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Box 103, SE-285 23 Markaryd, SWEDEN Phone +46 433 733 00 Fax +46 433 733 10 E-mail [email protected] www.smvlifttrucks.se Section 4 2/3/07 5:14 pm Page 14 Section 4 24/2/07 11:18 am Page 15 WorldCargo news PORT NEWS OICT officially opened SSA Marine for Point Lisas Oman International Container Terminal (OICT), which commenced operations in September last year, celebrated the grand opening of its Terminal B, Phase I at the Port of Sohar in Oman last month. OICT is a joint-venture between Hutchison Port Holdings (HPH), the government of Oman, Steinweg of the Netherlands and three other well-established Omani investors. Speaking at the opening ceremony, Oman Minister of Transport and Communications, HE Sheikh Mohammed bin Abdullah Al Harthy, said, “We are pleased to witness the grand opening of OICT, which has been transformed successfully from a greenfield site into a modern container handling facility in record time since the signing of the jointventure agreement on 15 November 2005. We are confident that OICT will quickly establish itself as an important contributor to the economic expansion of the Omani economy, and in particular of the Batinah region.” Terminal B, Phase I has a total quay length of 285m and a depth Point Lisas Industrial Port Development Corporation Ltd (PLIPDECO) has announced that it has contracted the consultancy services of US-based SSA Marine to advise on port operations at Point Lisas with effect from this March.Two logistics and port development experts are being seconded by SSA Marine to execute the contract, which will run for a period of six months in the first instance. SSA already operates one of Port Point Lisas’ main sister ports, Manzanillo International Terminal in Panama (MIT). PLIPDECO has had a formal Memorandum of Understanding (MOU) with MIT since 2002.The MOU, which promotes the development of business and the sharing of technical training and information, means that the two ports have an ongoing agreement to co-operate with each other with a view to gaining advantages in two main areas: internally to improve technology, systems, skills, processes, etc; and externally to increase business. It is hoped that the alliance between SSA Mar ine and PLIPDECO will take Port Point Lisas to a new level of efficiency and productivity by assisting with port management, improving technology, and enhancing the benchmarking against major international ports. Point Lisas is about 20 miles south of Port of Spain on the western side of Trinidad. Oman’s Minister of Transport and Communications, HE Sheikh Mohammed bin Abdullah Al Harthy (left), and John Meredith, group managing director of Hutchison Port Holdings unveiled a plaque at the quayside ceremony to commemorate OICT’s Grand Opening alongside of 16.5m. Handling equipment includes four postPanamax quay cranes, eight RTGs, two reach stackers, and a fleet of 15 tractors and 33 trailers. Phase II is expected to come on stream ahead of schedule this month. Upon completion, the terminal will have a total quay length of 520m and a total yard area of 28 hectares. The next phase, expected to be completed by the end of 2007, will include an additional quay length of 970m with a depth alongside of 18m, which will be capable of accommodating the latest generation of mega vessels. Work starts at Vallarpadam New Algeciras terminal tender Provisional figures released by Algeciras port authority (APBA) suggest it handled a total of 73 mt in 2006, mostly containers, an increase of 7% over the figure for 2005. This will almost certainly mean that Algeciras is once again the Mediterranean’s leading port in terms of overall tonnage. For its part, Maersk has indicated to APBA its intention to handle 4M TEU in Algeciras this year, equivalent to an increase of 21% year on year. In 2006, the Danish shipping line directed 3.3M TEU through the two container terminals at the port. APBA is planning to issue a tender in respect of a new container terminal on Isla Verde quay. This will cover an area of 125 hectares and have 2800m of berthing line. The dilemma is whether Maersk will enter a bid for this new concession, given that its existing terminal covers 670,000 m2, while it also makes almost exclusive use of the 180,000 m2 TCA terminal, which belongs to Acciona. APBA, however, is actively pursuing a second stevedoring built by NHAI, must be completed by April 2009. “Four-lane connectivity is a must for the container trailers to be provided with adequate manoeuvrability. It is also imperative to ensure overtaking does not take place,” the NHAI official explained. DPW last year appointed Royal Haskoning as design and supervision consultant for the terminal project. In the first phase, DPW will build two 300m berths with a handling capacity of IM TEU/year at a cost of US$135M. The terminal will eventually have six berths. group to enter the port to provide effective competition for the incumbents. It was hoped that TCA, in which Grup TCB, Spain’s second largest container handling company (after Dragados-SPL), was involved at one time, would provide an alternative pole that could attract other carriers, but that has proved illusory. Crédit photos : BXL France, increase in the highway project’s cost to Rs5.57B (US$126.6M) from the original estimate of Rs3.95B. “We have presented to the PIB the reasons for increase in the original project cost and they have given us the go-ahead,” a National Highways Authority of India (NHAI) official said. DPW will develop the terminal on a build-operate-transfer basis, but construction will start only when the rail and road projects are well underway. According to the concession agreement, the road link, to be “We have chosen B O XL O A D E R the excellent reference.” © 2/2007 - Construction work has begun on the rail and road links to the plannedVallarpadam International Container Transhipment Terminal, which will be developed near Kochi in India’s southern Kerala state by Dubai-based DP World (DPW) . The Public Investment Board (PIB) approved the plan to build a 17.5 km, four-lane highway to the terminal despite objections by the Planning Commission and the Ministry of Finance, which had argued that a two-lane highway would be sufficient. They had also questioned the APMT boosts Pipavav APM Terminals (APMT) is to invest over US$200M in the development of a new container berth at the Port of Pipavav in India’s Gujarat state. The new berth, with a 385m quay length will boost annual capacity at the port to around 1M TEU. Pipavav, operated by Gujarat Pipavav Port Ltd (GPPL), is India’s first private sector port. APMT is the largest shareholder in GPPL,while minority interests are held by New York Life International India Fund (Mauritius) LLC, IDFC Infrastructure Fund, IL&FS Trust Company, Jacob February 2007 Ballas Capital India, UTI, IDBI and India Infrastructure Fund. Construction of the new container berth has already started and GPPL has placed orders for three new post Panamax quay cranes and ten additional RTGs with ZPMC.. The expansion is likely to be completed by mid-2008. GPPL currently offers 350m of quay for container handling and 330m for bulk operations. Quayside container handling equipment includes three ship-to-shore gantries and a Gottwald harbour mobile crane, while eight RTGs and eight reach stackers are deployed in the yard.. www.boxloader.com Side loaders for containers Tél. +33 (0) 251 21 21 21 BO OADER Our clients are our best ambassadors. 15 Section 4 2/3/07 3:27 pm Page 16 WorldCargo news INLAND/INTERMODAL NEWS Hupac drives modal shift Horizontal’s Czech mates Swiss UIRR operator Hupac carried more than 600,000 consignments last year, 18.0% ahead of 2005 and 55.2% up on a three-year comparison. It was the fourth year in a row that the company, which is now running 103 combi-trains/day, has achieved double digit growth and it continues to emphasise that railway liberalisation has been a key factor in increasing the attractiveness of railway products. At 457,997 shipments, transalpine traffic was up 16% while 154,491 moved between northern seaports and the European hinterland or as interconnecting transport inside Italy (+28.0%). In the core Shuttle Net (unaccompanied) business, Hupac carried 591,169 consignments. Accompanied RoLa services reported a reduction in traffic of 9.3%. On six daily trains via Gotthard between Basle and Lugano, and between Singen and Milan, a total of 21,319 Hupac singles out rail liberalisation and its ability to negotiate freely end-toend integrated traction contracts with different suppliers as key factors behind the resurgence of combi-rail trucks were carried. Utilisation of RoLa is limited by the low rail profile on the Gotthard stretch. Hupac is also a partner, with BLS, SBB and Trenitalia, in the RAlpin dedicated RoLa service between Novara and Freiburg-inBreisgau (via Lötschberg/Simplon) that caters for 4m corner height trucks due to the extra low wheels of the wagons. “Intermodal traffic has grown disproportionately faster than road traffic,” Hans-Jörg Bertschi, chairman of the Hupac Board, stated. “Rail is gaining market share back from road traffic.” Last year, the company launched 20 new trains and, despite the strong growth, punctuality was maintained. European transport companies recognise in intermodal traffic a genuine alternative to road traffic.” Hupac is expecting growth in the double-digit range again this year. Many new connections are currently in the project phase, and will be introduced during the course of the year. Lohr Industr ie’s Modalohr intermodal wagon system and the German CargoBeamer system feature in a new report by the Jan Perner Transport Faculty at the University of Pardubice in the Czech Republic. A faculty team compared the French system, which has been in use between Aiton (Lyon) and Orbissano (Torino) for several years for tank trailers and road tankers, with the CargoBeamer system from an original list of four horizontal road/rail transfer systems - the other two being Flexiwaggon (Sweden) and CargoSpeed (UK). A working prototype of CargoBeamer (see WorldCargo News November 2004, p30), comprising the railcar and two terminals, is due to be completed this year. Meanwhile, as reported in the January 2006 issue of WorldCargo News (p13), Modalohr will be used in a new 1000 km service between Perpignan (for Le Boulou and Spain) and Luxembourg (Bettembourg), due to be started up shortly Above: Computer-generated image of the CargoBeamer system. Below: Lohr Industrie’s Modalohr intermodal wagon. The two systems have been compared by a team from the University of Pardubice in the Czech Republic by Lorry-Rail, a joint venture of SNCF, CFL, RFF, Lohr, Auotoroutes du Sud de France and Caisses de Dépôts et Consignations. The overnight (18.00-06.00) services in each direction will consist of 20 wagons (ie 40 trailers) and traffic in the first full year is forecast at 30,000 trailers. The one-way price is expected to be €900. Other services are planned between Lille-Dourges and Dijon/Ambérieux and Marseille. The Czech team endorses Modalohr’s view that three types of terminal are practical to cater for different levels of throughput and train frequency. Of course, in each case, maximum cost-effectiveness is achieved with unaccompanied transports, even though the system can cater for complete vehicles as well as trailers. For CargoBeamer, they suggest that only one type of termi- Thank you for... 2000 ...RTG/RMG Cranes nal is practical, configured to cater for a maximum length combitrain (750m). Simultaneous (un)loading means that a complete train (32 trailers) could be exchanged in just 10 minutes.A high degree of automation is possible. In summary, costs for Modalor are given as €60 x 40 trailers = €2400/train or €2.40/km for a 1000 km trunk haul. For CargoBeamer the stated result is €60 x 32 = €1920/train or €1.92/ km for the same route. The breakeven for Modalohr is given as 60% utilisation (24 trailers/train); for CargoBeamer the figure is 70% (22 trailers). It is assumed that the train haul price has to be at least 20% lower than the trucking price. For full details of the comparisons, contact Dr Václav Cempírek at the University of Pardubice. email:[email protected]. Kombiverkehr record Lower cost and longer life have been achieved for over 2000 RTG/RMG cranes with igus® E-ChainSystems®. Thank you for your confidence in igus®! What's next? New generations of polymer E-Chains®, Chainflex® cables – from fibre optical to 6/10 kV cables – and accessories for faster, longer, yet more reliable cranes. Plus a standard Condition Monitoring System. Reduce costs, increase service life. Proven over 2000 times. -cranes.com igus® GmbH Spicher Str. 1a D-51147 Cologne [email protected] phone fax +49-22 03-96 49-0 +49-22 03-96 49-222 Please phone our offices: Austria Belgium Brazil Canada China Denmark +43-7675-40 05-0 +32-16-31 44 31 +55-11-35 3144 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 +39-938-69 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 +886-4-23 58 10 00 +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 Europe’s biggest UIRR operator, Kombiverkehr, recorded record shipments in 2006, with overall traffic up by 14.6% to 931,000 truck equivalents. National German traffic rose by 15.4% to 234,155 shipments and international traffic by 14.3% to 696,828 shipments. In the latter segment, the core transalpine business maintained its traditional lead, with Italian origin/destination traffic reaching 402,649 shipments. Growth on the Austrian axis (via Brenner) was particularly marked. The transalpine figures are not additional to Hupac or Ökombi’s figures as UIRR companies aggregate cross-border traffic whether it is inbound, outbound or in transit. So for example, ItalyGermany shipments via Switzerland would be included in the figures of Cemat, Hupac and Kombiverkehr. Kombiverkehr also reported strong growth in traffic with Spain and Portugal, up by 10.6% to 47,402 shipments, and on shipments to/from Hungary and the Nordic Bloc. PN wins steel deal Pacific National (PN) has secured Australia’s largest ever rail freight contract, signing with BlueScope Steel and OneSteel for a A$1B haulage task over the next seven years. The deal will see PN carry approximately 3 mt of steel product across Australia each year. PN’s SteelLink Division has committed to A$100M of new investment in rolling stock and will maintain a fleet of dedicated trains to haul various steel cargoes from major manufacturing sites in Whyalla (South Australia), Newcastle and Port Kembla (New South Wales) and Western Port (Victoria) to distribution centres in each of Australia’s capital cities. The companies have had a long-term relationship dating back ten years, originating before BHP spun off BlueScope and OneSteel into separate companies. Negotiations on the new contract started in late 2005 but accelerated once Toll Holdings took full control of PN after its acquisition of Patrick Corp. February 2007 Section 5 1/3/07 3:49 pm Page 17 WorldCargo news INLAND/INTERMODAL NEWS Kelly gang grabs Patrick Shipping… In the first major asset divestment to flow from Toll Holdings’ purchase of Patrick Corporation, Bass Strait short sea operator Patrick Shipping and its associated freight forwarding and logistics businesses have been sold to a consortium of Tasmanian companies. Searoad Holdings Ltd, led by road transport magnate Chas Kelly, will acquire the ro-ros SEAROAD TAMAR and SEAROAD MERSEY along with terminal leases in Melbourne and Devonport, trucks and other hardware and depots and staff. Pending approval by the Australian Competition and Consumer Commission (ACCC) , which mandated the disposal, the deal will take effect in midMarch, from which time the businesses will trade as Searoad Shipping and Searoad Logistics. Searoad Holdings is a consortium that comprises three of Kelly’s businesses, Chas Kelly Transport, Fresh Freight and Tasmanian Freight Services, as well as two other leading forwarders, BassLink Logistics and Bass Strait Transport. Other investors include long-standing associates of Kelly through his involvement in motor-racing throughout Australia. The consortium has appointed James Bryant, a former chief executive of New Zealand’s Union Steamship Co and of Holyman Ltd, a previous owner of the business that became Patrick Shipping, as CEO.The existing management team is expected to remain in place. The sale has already proved controversial, with John Lines, managing director of beaten favourite ANL said to have shaken hands on a deal with Toll managing director Paul Little before Christmas. However, sources say, the CMA CGMowned carrier, which currently runs its own competing ship between Mel- bourne and Bell Bay, was outbid when final offers were received. On announcing the sale Little said, “The Chas Kelly consortium was selected as it offered the best overall bid. The price achieved is within our expectations.” The Kelly companies are also facing Victorian court action by another failed bidder, Launceston-based Southern Shipping (SS), which partnered Kelly in an earlier bid. SS, which operates two small ro-ro barges from Bridport in north east Tasmania to Bass Strait islands, alleges Kelly used information supplied by SS in his subsequent bid. SS subsequently joined a rival Tasmanian transport operator in another bid. Kelly has denied the accusations. The success of the Searoad consortium is seen as particularly significant, since members individually and collectively control significant volumes of Bass Strait freight now largely distributed amongst Patrick rivals ANL,TT Line and Toll itself. The deal has also resonated with the Tasmanian community which has regularly expressed concern that its freight is largely controlled by “rapacious mainlanders.” The Patrick Shipping terminal in East Devonport forms part of the deal …Toll sheds rail pack In a smaller, but nonetheless significant, divestment, the Australian Competition and Consumer Commission (ACCC) has forced Toll to sell a so-called east-west rail “starter kit” to rival SCT Logistics (SCTL). Toll had sought release from this obligation, along with most others imposed by the ACCC following the Patrick takeover, as part of its plan to split into two companies (see WorldCargo News December 2006, p6). However, Commission chairman Graeme Samuel insisted that the undertaking be discharged, ahead of a final decision about Toll’s grander plan. “The undertakings include a mechanism for the ACCC to object to a party obtaining the east-west rail assets,” Samuel said. “The ACCC was satisfied that, in accordance with the criteria in the undertakings, there were no grounds upon which to object to SCT Logistics. “The ACCC has considered Toll’s request for a waiver and has determined that Toll should be required to comply with its original obligation with regards to the east-west rail assets.” The starter kit comprises 12 locomotives, container-suitable rolling stock, terminal access, train paths and ancillary services such as crewing, maintenance and fuelling. The undertakings provide that, in the event that a purchaser elects to take up only some of the available assets, any remaining assets may be made available to a second purchaser. SCTL has recently increased its order for new locomotives from 11 to 15 and has begun a weekly Parkes-Perth service in addition to its existing Melbourne-Perth services. The company is anxious to end its dependence on Tollcontrolled Pacific National, from which it obtains hook-and-pull services, as soon as possible. February 2007 17 Section 5 2/3/07 5:18 pm Page 18 WorldCargo news INLAND/INTERMODAL NEWS New loco designs from Corus Corus Northern Engineering Services (CNES), the engineering arm of UK-based steelmaker Corus, has unveiled a new range of British-designed and manufactured locomotives, the first of their type to be built in the UK for more than 15 years. Corus has already commissioned the building of four of the new 100t, 1000hp shunting lo- cos, which will be used to transport liquid iron and steel products at its Port Talbot works.They will be manufactured by CNES at Corus’s Transport and Fabrication Workshops in Scunthorpe, with the first delivery scheduled for the end of 2007. Designed by UK-based design consultancy Railcraft Associates and drawing heavily on Corus’ Wolfurt–Antwerp shuttle launched extensive expertise as an operator of industrial railways, the new locomotives are suitable for most Yes - you can now sling lift! ISO STYLE SLING LIFT POINTS WITHIN POSTS DOMINO Flatracks WORLD LEADERS IN INNOVATIVE DESIGN AND MANUFACTURE How do you sling lift out of a close stow or cell guide? Domino XL flatracks are strong enough to be angle sling lifted through optional sling lift apertures within their corner posts. So now there is no need to risk bending posts. Specify 'Sling Lift Points' - It's a safe and easy option. 18 Tel: +44 (0)1926 863 140 E-mail: [email protected] Web: www.dominoflatracks.com The new locos are available in single or twin-cab versions industrial and heavy haul applications and pan-European orders are expected to come from a diverse range of industries, including mining and quarrying, petrochemicals, paper mills and medium-distance mainline transportation. The locomotives are available in two, three, four or six-axle configurations, the latter two being bogie arrangements. The design currently caters for axle loads of up to 25t to suit track gauges from 610mm to 1,676mm. The frame and superstructure can be manufactured to suit a variety of loading gauges, with a choice of either single or twin cab models. A range of heavy-duty diesel engines up to 3000hp, with either electric or hydraulic transmissions, is available. Diesel-hydraulic models are based on a range of purpose-built axle drive gearboxes.All models have a choice of the latest self-steering coil sprung, taper roller bearing axle boxes or a more traditional cast steel axle box with sliding axle guides. The locomotives have a number of safety features, including a low profile, low height canopy, offering the driver improved allround visibility. Reduced noise and exhaust emissions from the latest engine and transmission systems are additional features along with an option to equip the vehicle with remote radio control.A central microprocessor and “drive-bywire” technology manage the traction control and prevent wheel slip and slide. “The new locomotives are modular in design so customers can choose from a range of engine, transmission and safety options,” said Mark Jones, business development engineer at CNES. “We are offering customers a bespoke solution that minimises whole life costs of the vehicle and reduced maintenance costs.” Intercontainer has started a new shuttle train service between Wolfurt (Vorarlberg in Austria) and Antwerp, initially with a weekly frequency each way. Northbound, it leaves Wolfurt on the Monday to arrive in the Antwerp main hub on Wednesday. Southbound, trains leave Antwerp on Thursday and reach Wolfurt on Saturdays. At the Antwerp main hub, Intercontainer’s agent Inter Ferry Boats takes charge of feeder services in and out of the different docks. Intercontainer closed its 2006 financial year on a high, with EBIT in the plus zone and 4% volume growth to give a total of 430,000 TEU. Growth rates were particularly spectacular on routes with South East Europe, reaching double digit figures.With more than 60 shuttle trains/week, Intercontainer is the leading operator in this market segment. Last March the company took over Hungar ian operator Pannoncont, renaming it Intercontainer Hungary Kft, and shortly afterwards it opened new agencies in Subotica (border between Serbia and Hungary), Dimitrovgrad (border between Serbia and Bulgar ia) and Kapikule (border between Turkey and Bulgaria). New shuttle services were successfully launched between Austria and Romania and between Turkey and Romania. In December, Intercontainer introduced a new production concept on the German seaportsSwitzerland corridor. Shuttle trains are now through-worked without change of locomotive on the links between Hamburg/ Bremerhaven and Basle-Frenkendorf and Zürich-Rekingen. Talke and Kerry link up in China Kerry Logistics has established a joint venture with Alfred Talke Logistics Services of Germany to provide a transport and distribution service for China’s rapidly expanding chemicals industry.The new business merges Kerry’s logistics network in China with Talke’s experience in the chemicals sector. The initial focus of the new Kerry-Talke Chemical Logistics venture will be operations in the eastern Yangtze river area, which has the country’s heaviest concentration of chemical production facilities and related industries. This zone encompasses Shanghai and the provinces of Anhui, Jiangsu and Zhejiang. According to Vincent Wong, Kerry Logistics’ joint managing director, once the new business is established in this area, it will probably be expanded into China’s two other main chemicals regions Changsha to the west and Tianjin in the north. The Kerry-Talke Chemical Logistics joint venture, which has been a year in the discussion phase, has been established due to both pressure from Talke’s existing customers to extend its service network into China and the need to meet the international logistics needs of Chinese companies active in the chemical sector. The venture will focus on import and export cargoes across a broad Talke’s customers are keen to develop their presence in China range of chemicals, although some concentration on particular product streams is expected to emerge in time. Between them, the two partners provide logistics services to a number of leading international chemical companies, including Dow,Akzo Nobel, Henkel, BASF, Degussa and Sasol. Amongst the full range of chemicals-related logistics services on offer from Kerry-Talke Chemical Logistics is branding, testing, warehousing, storage, transport and delivery for both solid and liquid materials. The emphasis over the initial six months is being placed on developing the non-dangerous chemicals sector but from midyear this will be augmented by a dangerous goods service.The new venture will make considerable use of Talke’s expertise in intermodal tank container transport in its operations. The new operation will require investments in additional facilities, including tank farms, warehousing and storage areas, and Kerry is geared to assisting in this respect. The company has about 100 owned or leased properties in China as well as 2,000 vehicles in operation, controlled via a network of 121 offices situated throughout the country. February 2007 Section 5 2/3/07 3:33 pm Page 19 WorldCargo news INLAND/INTERMODAL/TANK CONTAINER NEWS Stolt makes China stand-alone unit Reflecting the growing importance of the Chinese chemicals market, Stolt Tank Containers (STC) has split its Asian activities into two separate units - one for China and one for the rest of the Asia Pacific region. Greg Vinson, who relocated from Rotterdam to Shanghai in August 2006, has been appointed regional director for China. Gordon Lasker, who has had responsibility for STC’s Asia Pacific region, including China, for the last six years, will continue as the regional director for the company’s newly constituted Asia Pacific region. This comprises Australia, New Zealand, South East Asia, Japan, Taiwan and Korea. Based in Singapore, Lasker also has local oversight for the company’s tank container depot activity in Singapore. Formerly general manager Northern Europe with STC in Rotterdam,Vinson will now be responsible for managing Stolt’s rapidly developing tank container activities in China as well as the SSK joint venture domestic trucking and distribution business in that country. The overseeing of all operational and commercial activity in China also encompasses Stolt’s growing Chinese tank depot network. CSXI Charlotte expansion Stolt tanks are becoming an increasingly common sight in China CSX Intermodal (CSXI) is to invest nearly US$8M ito expand its Charlotte, NC, intermodal terminal, the latest investment to support growth in consumer goods transportation. CSXI is working with the North Carolina Department of Transportation (NCDOT) to plan the facility projects, which are subject to various state and local approvals. Enhancements will include up to 10,000ft of extended tracks within the terminal, additional loading and unloading equipment, expanded parking capacity for trailers and improvements on the rail route that leads into Charlotte. The expansion will also include technology upgrades to allow truck drivers to enter and exit the facility more efficiently and when complete, will double the terminal’s capacity from 80,000 to 160,000 intermodal lifts annually. The Charlotte expansion is one of several capital projects planned for CSXI’s terminal network as the company continues to accommodate projected capacity increases during the next five years. Terminal expansions and improvements are already underway in Buffalo, NY, Tampa, Fla, and Chicago, Ill, and a new facility in Chambersburg, Pa, is scheduled to open in September of this year. WB in China rail loan... The World Bank has approved a US$200M loan to help expand railway capacity between China’s Guizhou and Yunnan provinces to halve transit times and enable operation of double-stack container trains. The bank’s Beijing office said the project aimed to provide a major increase in capacity to the Liupanshui-Zhanyi (Liu-Zhan) section of the GuiyangKunming railway line. The 254 km Liu-Zhan line is at the western end of the Shanghai-Kunming corridor and crosses the watershed between the Yangtze River in the north and Pearl River in the south. It was built as a single track in 1966 and electrified in 1988, and is operating close to capacity, but below forecast demand, as the economy in western China continues to grow. To expand capacity to and fromYunnan, the government plans to realign the track to allow higher speeds, double-track the section between Liupanshui and Zhanyi and refurbish the Liupanshui terminal. On completion, the project, estimated to cost aboutYuan8.8B yuan (US$1.13B), will quadruple the capacity of the line and improve transit times significantly. J ...Shanghai block train Shanghai’s port has taken its first step to penetrate deeper inland by starting a weekly container block train service from the city’s Luchaogang station to Hefei, capital of China’s eastern Anhui province. China plans to build 18 inland rail container terminals (see WorldCargo News October 2006, p18) and Luchaogang, which is close to Shanghai’s new Yangshan port, was the first to begin operations last month. The service, with each train carrying 100 TEU, is operated by a joint venture of Shanghai Railway Container Terminal Development Corp and China Shipping Container Lines. Containers are moved by road from Yangshan to Luchaogang over the 32.5 km bridge that links the city with the port. The trains will start carrying export containers in April when the frequency will be increased to three times weekly and eventually become a daily service. Luchaogang station vice-manager Jin Yamei said plans are in hand to start container rail services to Nanchang, Nanjing, Chengdu, Changsha, Zhengzhou and Xi’an when terminals in those cities are ready. “The marine-railway transport mode can be more economical and environment-friendly than road transport. Its advantages become obvious over long distances,” Jin said. The service will boost throughput at Yangshan as more vessel calls are transferred there following the opening of its four-berth Phase II terminal in December 2006. February 2007 The material handling industry has specific expectations from cable manufacturers: you would like to see faster cranes which can transport, load and unload safely. And more control and data functions would facilitate your operations. Nexans offers a complete range of power, control and fiber optic cables for the main crane functions: festoon, reel, spreader and control applications. Our constant innovation leads to lighter, smaller cables for more compact and efficient cranes, and to cables with durable sheaths to endure high acceleration and braking speeds. Rely on Nexans cables to save operating expenses. Because so much of your performance runs through cables. www.nexans.com [email protected] G l o b a l e x p e rt i n c a b l e s a n d c a b l i n g s y s te m s 19 Section 5 2/3/07 3:35 pm Page 20 WorldCargo news TANK/CONTAINER INDUSTRY NEWS Tank management from GES Fort Vale and Pelican Global Equipment Solutions BV (GES) has been established to provide a fleet management service for intermodal transport equipment. The new company, based in Rotterdam, is particularly targeting chemical companies that are seeking to maintain their own in-house fleets of tank containers but require third-party assistance in their management. According to managing director André van Vliet, GES is offering global fleet management, equipment rental and equipment trading services.The fleet management option encompasses the technical management of a customer’s owned and/or leased intermodal transport equipment on a global scale, based on the industry knowl- edge possessed by GES staff, a bespoke IT system and a worldwide network of service depots and local surveyors. Under this arrangement customers are able to access real-time, technical information regarding the status of all their tanks irrespective of their location, via the GES website. The new management company is also able to offer tank containers for hire from selected service depots worldwide as part of its short-term intermodal transport equipment rental service, while, under the equipment trading service option, customers can purchase used intermodal equipment by specifying to GES the exact type of units they require. GES plans to supplement its new Rotterdam service centre with facilities in Houston and Singapore during the course of this year. “More and more producers of bulk liquid chemicals have decided to opt for their own fleets of ISO tank containers in order to be independent of the vagaries of the supply of new tanks entering the market and to better coordinate their own inventories and product flows with an appropriate commitment in terms of transport equipment,” said vanVliet.“We saw this trend beginning to emerge approximately 10 years ago and we believe that there are definite benefits which accrue, not least the ability to limit the burden arising out of the differences between the charges levied by third party tank operators and the costs of leasing or financing an ISO tank on an in-house basis.” 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. 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 A major study by Dr Itsuro Watanabe (Container System Technology) This comprehensive 245 page study is an in-depth analysis of capacity constraints, productivity, selectivity and flexibility of different container handling systems in terminals of different types and sizes: common-users or dedicated; hub centre (transshipment and/or relay) or import/export vocation; gateway or feeder port;intermodal rail or truck distribution inland; with or without CFS, etc. Profusely illustrated with charts,figures and explanatory tables. Effects of different call patterns of containerships and dwell day regimes.Predictive power provided through development of queuing theories. Hundreds of detailed equations. Price: £165 or US$245 or 245 including postage and packing. I enclose my cheque or bank draft for £..................US$................. This must be drawn on a UK bank. Please invoice my company - we will mail study on receipt of payment. Please debit my American Express Visa Mastercard (please indicate card and currency used) Expiry date In dispute:The Fort Vale 3-in 45deg Cleanflow footvalve as follows: “The very successful Pelican Smartflow valve is unique on its own. At the time of issuing Den Hartogh tanking up The tank container fleet of Den Hartogh Logistics expanded in line with the strengthening perfor mance of the European chemical industry in 2006. A total of 310 new tanks have been introduced into the fleet over the past 12 months, adding 20% to the company’s overall intermodal tank capacity. Den Hartogh has doubled its intermodal tank revenues over the past four years, during which time 10 different types of new tank container have been to the company pool. The emphasis in the 2006 tank newbuilding programme has been on specials, including units for the transport of the TDI and MDI isocyanates and 35,000 litre swap tanks for other special chemical products.The remainder of the newbuildings comprise 30,800 litre swap tanks for multi-purpose use. For 2007, Den Hartogh has already made a commitment to invest in 150 tank containers of 25,000 litres capacity. The SeaCell cell-compatible, palletwide container design, which has to date been marketed exclusively by GE SeaCo, is to be made available to the general market. GE SeaCo has reached an agreement with patent holders Container Group Technology (CGT) whereby CGT will license a number of manufacturers not only to build the SeaCell design, but also to sell directly to shipping lines and other leasing companies. to 111 x Fa rm 70 fo 3 is 2 th 137 4 +4 “Container Terminal Planning - A Theoretical Approach” FortVale Engineering Ltd has initiated legal proceedings in the Netherlands against Pelican Worldwide BV on the grounds that “the Pelican Smartflow valve is clearly within the scope of the claims of the patent held by Fort Vale for the Cleanflow valve and that the manufacture and sale of the valve by Pelican constitutes an infringement of our intellectual property rights” Pelican Worldwide refutes Fort Vale’s claims and the company has issued its own statement, GE SeaCo opens up SeaCell - 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 Available from WorldCargo News contest valve patent this statement Pelican Worldwide had not yet received a writ that initiates proceedings in the Netherlands and, therefore, the scope of such proceedings (should they indeed be initiated in the future) remains unclear. “However, Pelican Worldwide is of the opinion that the patent referred to by Fort Vale in prior communications is invalid and Pelican Worldwide is confident that the Dutch court will agree as to the invalidity of that patent.Pelican Worldwide clearly does not infringe. “Pelican Worldwide perceives the actions of Fort Vale as typical actions of a company that has no answer to the success of their up and coming competitor.” Name .......................................................................... .................................................................................... Title ............................................................................. Company..................................................................... .................................................................................... Address ....................................................................... .................................................................................... .................................................................................... Company business....................................................... .................................................................................... Signature............................................................ Date.................................................. Fax .............................................................................. WCN Publishing: Northbank House, 5 Bridge Street, Leatherhead, Surrey KT22 8BL, UK. Please make payments to: WCN Publishing WCN PUBLISHING VAT No: 644 2190 53 Tel ............................................................................... Hitherto, SeaCells for the GE SeaCo fleet have been built by Singamas and China International Mar ine Containers (CIMC), with a few units coming from Sea Containers’ UK manufacturing subsidiary, Yorkshire Marine Containers Ltd (YMCL). GE SeaCo has around 50,000 TEU of SeaCells, including 1,000 x 45ft units, and plans to add at least 4,000 TEU this year. A number of units have also been sold to third parties, including 20ft high cubes and bulkers for the Australian market. With a standard 8ft wide ISO frame and a 2.46m width along the sidewalls, the SeaCell can be accommodated in any standard containership cell guides, while at the same time optimising stowage of 1.2m x 0.8m europallets and 1.2m x 1.0m ISO pallets.The GE SeaCo has agreed to allow SeaCells to be sold in the general market 45ft SeaCell, for example, can accommodate 33 europallets or 26 ISO pallets compared with 27 europallets or 24 ISO pallets in a standard ISO 45ft x 8ft wide unit. CGT, owned by John Evans and Martin Clive-Smith, says it plans to license three manufacturers in China to build the design – one in Guangdong, one in the Shanghai area and one in Dalian/ Qingdao in the north – to ensure continuity of supply, multiple delivery options and competitive pricing. GE SeaCo and CGT will jointly progress the features of the design in order to reduce manufacturing costs and simplify the unit’s specification for wider industry appeal. Grindrod depot buy South African shipping and logistics group Grindrod has bought the 50% of CMC Grindrod that it did not own from Cross Country Containers Africa, a subsidiary of Safmarine.Terms of the deal were not disclosed. CMC Grindrod provides container depot facilities in Cape Town, Port Elizabeth, Durban and Johannesburg for the storage, handling and repair of general purpose and reefer containers. In addition the company provides full container storage and handling for imports, exports and transshipments from its national facilities. The acquisition forms part of 20 Grindrod’s stated intention of investing R1B in the expansion and development of its freight services businesses. Grindrod director Dave Rennie said that the change in shareholding would not have an impact on the management of the business as the company had been fully involved with the strategy and direction of CMC Grindrod as a previous shareholder. “We have invested in numerous businesses over the last 24 months and will continue to look for opportunities which provide synergies in our business and adds value for all our stakeholders,” said CEO Alan Olivier. February 2007 Section 6 1/3/07 16:42 Page 21 WorldCargo news CONTAINER INDUSTRY NEWS Smart container contract awarded Maine Secure Composites LLC (MSC), a recently formed business spin-off of the University of Maine’s Advanced Engineered Wood Composites (AEWC) Center, has been awarded a Department of Homeland Security Advanced Research Program Agency (HSARPA) contract to develop a next-generation “smart” container that can detect intrusions and prevent terrorists from placing bombs in containers coming into the US Few details have been released as the US government has designated all information regarding the project as “Sensitive Security Information.” What is known, however, is that the so-called Composite Anti-Tamper Mater ial (CATM) maritime shipping container will be 20% lighter than existing steel containers and be equipped with embedded fibre optic security system. Angel Secure Networks, which provides software and process engineering services for protecting high value data against the risk of compromise, has been named as a sub-contractor on the project. The contract forms part of the Department of Homeland Security’s Safe Container (Safecon) programme aimed at high-risk/high-pay-off technologies that have the potential for making revolutionary rather than incremental improvements to homeland security, including emerging threats and operational challenges. All products developed under the Safecon programme will be required to interact seamlessly with existing commercial systems and processes. ● China is also in the process of developing a “smart” container. R&D work was launched at a meeting in Beijing last December convened by theGeneral Administration of China Customs. The meeting was attended by representatives of the Ministry of Communications, Ministry of Information Industry, General Administration of Quality Supervision, Inspection and Quarantine, Certification & Accreditation Administration, China Classification Society, China Association for Standardisation, China Container Standardisation Committee, China Electron Standardisation Committee, China International Marine Containers (CIMC) Group, Cosco Group and Longsun Networks. CIMC will be responsible for drawing up a standard for the smart container and organising input from other Chinese R&D centres during the development phase. US-based SGM Enterprises LLC has added the Ranger Portabolt to its range of high security locking systems for containers and trailers. Claimed to be the only adjustable, double door lock, with a no-shackle Abloy hockey puck lock on the market, the Portabolt can be keyed alike, differently, or mastered with other Abloy locks to provide the maximum security combination of a no shackle lock and hardened high carbon, solid steel bar.A tight fit is provided with 0.625in adjustments from 6.75in to 14.5in inside gap between the inner locking rods of two container or trailer swing doors.To fit, the Portabolt slides under the inner lock rod assembly on the right door, the J-arm slides over the left door’s lock rod and the unit is then secured. A solid steel housing with a hardened locking rod hook includes an angled deflector shield to minimise physical attack and a protective casing that limits access to the noshackle hockey puck lock CIMC comes under fire Rui Hua Investment Holding Ltd, an investment arm of UBS AG, has filed a lawsuit against China International Marine Containers (Group) Co seekingYuan310M (US$40M) in compensation for an alleged infringement of its property rights In a statement to the Shanghai Stock Exchange, CIMC said the suit has been accepted by the Higher People’s Court in Jiangsu Province Rui Hua alleges that CIMC, through three subsidiaries, encroached on its property rights and caused it to post a loss when disposing of non-performing assets bought in November 2005 from stateowned asset management company Cinda Asset Management Corp, including Yuan400M at box builder Yangzhou Tongyun Container Co (TYC) and Yuan100M at reefer manufacturer Yangzhou Tonglee Container Co (TLC) The CIMC subsidiaries involved are CIMC Holdings (BVI) Ltd, Yangzhou Runyang Logistic Equipment Co Ltd (YRLEC) and Shenzhen Southern CIMC Containers Service Co Ltd. As previously reported in WorldCargo News, CIMC had earlier taken over the management of TYC and TLC in an attempt to revive the business of two struggling companies and was urged by the local government to take over the stakes in the companies previously held by Jiangsu Tongyun Holding Corporation. Despite CIMC’s efforts, however, TYC and TLC went bankrupt in October 2006. Rui Hua alleges that before its debt purchase, CIMC transfered assets of TYC and TLC to its own subsidiaries through improper transactions. CIMC said it had not infringed on any rights of Rui Hua but declined to elaborate on the dispute. February 2007 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 21 Section 6 6/3/07 2:40 pm Page 22 WorldCargo news SHIPPING NEWS Armenian ferry link 3i set to float Dockwise? Specialist heavy lift shipping operator Dockwise has been sold by offshore contractor Heerema to UK-based venture capital group 3i (for background see WorldCargo News July 2006, p23).. The sale price is reported to be US$700M, far more than the US$500M price that it was thought the sale might attract. Although the final price depends on the outcome of the sinking and subsequent insurance claim and possible salvage of one of Dockwise’s large semi-submersible vessels, MIGHTY SERVANT 1, in December, it reflects the current buoyant market, especially in the offshore sector. Nevertheless some observers consider it too high, given the age profile of the Dockwise fleet. 3i has not disclosed its business plans for the company, other than to say that the acquisition will fit well with its various gas and oil interests. Its main aim will be to extract value from the ac- quisition and in the short term that may result in the sale of Dockwise’s yacht transport business.This could be relatively easy as the yacht division trades separately from the core heavy lift sector. The yacht division is due to take delivery of a purpose-built newbuilding in the middle of this year - the only new vessel to be ordered under Heerema’s ownership. Dockwise is the world’s most experienced heavy lift shipping Consent Equipment AB The specialist in operational leasing of Terminal, Transport and Cargo Handling Equipment www.consent.se The outcome of the insurance claims arising from the sinking of the will affect the price that Dockwise fetches MIGHTY SERVANT 1 operator and 3i may be tempted to float the company on the Amsterdam stock exchange or, alternatively, merge it with a related business. However, as the sale was initiated by Heerema, this could prove tricky. Dockwise will continue to provide a full range of services, including transport of fully-erect container cranes. However, there is growing competition in this market and several companies, including one backed by the Norwegian shipping tycoon John Fredriksen and headed by Bert Bekker, a for mer CEO of Dockwise, have entered the crane transport market. It is understood that Fredriksen’s company Sealift will convert six Suezmax tankers to heavy lift carriers, in a similar manner to ZPMC’s crane transport vessels. The ships will be marketed mainly to the offshore industry, but their ability to carry seven or even eight cranes in one sailing could prove very attractive for container crane builders. Wan Hai All Set again Wan Hai Lines has again specified loose lashing equipment from MacGregor’s All Set Marine Lashing AB for its latest and largestever containership newbuildings The Taiwanese operator has ordered four 6,200 TEU ships from the China Shipbuilding Corporation (CSC)’s Kaohsiung yard and has extended a series already booked with CSC to include a further four 4,200 TEU vessels. The company is also investing in smaller tonnage with two * rolltrailers * 13.6m & 45ⴕ palletwide containers * 40ⴕ palletwide containers Consent Equipment AB PO Box 4143, S-400 40 GOTHENBURG, Sweden Phone: +46 31 12 42 45, Telefax: +46 31 42 86 59 UK Office: Consent Equipment UK Ltd, Prince Henry House, Kingsclere Business Park, KINGSCLERE, Hampshire, RG20 4SW Phone: +44 1635 299999, Telefax: +44 1635 299993 more 2,446 TEU ships extending existing orders at Singapore’s Jurong Shipyard. All Set Mar ine Lashing’s Equalash system is already deployed fleet-wide by Wan, which has again selected the company’s turnbuckles and other loose container lashing fittings for its newbuildings, with a total order value of US$4M. All Set will provide full newbuilding and after-sales support in conjunction with its Taiwan agent, Heng Cherng Enterprises. Next month will see landlocked Armenia gain a second rail ferry link that will substantially reduce the cost of its transport exchange with Russia and other countries. Early this month, Armenian Transport and Communications Minister Andranik Manukian and a representative of Switzerlandbased Reserve Capital Corporation signed a memorandum in the Armenian capital,Yerevan, on the launch of a regular ferry service between the Georgian Black Sea Port of Poti and Russia’s Port Kavkaz. The Swiss company will operate the link with two rail ferries, each capable of carrying 55 railcars as well as heavy trucks and containers. The vessels are currently undergoing technical tests. “These ferries will work only for Armenia,” said Manukian, adding that they will accept the first Armenian cargoes in mid-March. He said Russia’s continuing transport blockade of Georgia will not affect their operation. Armenian companies currently import and export goods to Europe and the former Soviet Union through a similar service linking Poti with the Ukrainian port of Ilyichevsk. The Russian blockade imposed on Georgia last year stripped them of any alternative and less costly ways of making shipments to and from Russia, a key export market for many Armenian firms. They have for years lobbied the government inYerevan to help to open a direct Russian-Georgian ferry link that would reduce their high transportation costs. New containership for Langh The first of two new container ships ordered by privately-owned Finnish shipowner Langh Ship has been released from the German shipyard J J Sietas. the ship, named LINDA, has a container capacity of 907 TEU, making it somewhat bigger than Langh Ship’s older vessels. Loa is 141m and beam is 21.5m. “We have both replaced some of our fleet and increased our cargo capacity, said the company’s The 907 TEU LINDA seen at the naming ceremony at the Hamburg yard commercial director Laura LanghLagerlöf. The three oldest and smallest ships in the fleet were sold in 2005 and 2006,which reduced capacity by 3 x 4400 dwt. LINDA and her sistership will togther bring 23,000 dwt of new capacity to the fleet. Langh has built up a strong expertise in shipping and handling steel coils. Even though the new ships are designed as containerships, multiple uses were taken into consideration in its design.They have, among other things, reinforced tank top plating, to allow the transportation of bulk cargo when the cell guides are removed. These cell guides can also be moved to load 4ft and 30ft containers as well as 20ft and 40ft units. Most containers will be loaded on the deck hatches, with stacking up to 7-high closest to the superstructure. They can load up to 200 refrigerated containers, 100 in the hold and 100 on deck. The ships are also prepared for installation of Langh’s patented 22 ’tweendecks for the transport of steel coils. The four cargo holds are equipped with hydraulicallyoperated hatches supplied by MacGregor. Both ships’ engine and hull have been built according to the highest ice class 1 A Super. LINDA, which will have a 20strong crew (half off duty while the other half is at sea), is the first entry in Finnish vessel register in a long time, said Langh’s managing director Hans Langh and he expressed the hope that it can continue to operate under the Finnish flag. “We ordered new ships, even though the Finnish government, unlike other European governments, does not provide support for ship acquisitions. Now we just need to have faith in the markets remaining conducive to the profitability of our investments. Maintaining operations under the Finnish flag also requires that taxation falls more in line with the EU-recommended guidelines, as it has in other parts of Europe.” February 2007 Section 6 27/2/07 11:14 am Page 23 WorldCargo news SHIPPING NEWS Samskip leads EC shortsea project Bringing together some of the leading players in shortsea shipping and ship design, CREATE3S (Creative Concepts REalised by Advanced design & production to improve Total Efficiency of new generation Short Sea Shipping.), a new research project funded by the European Commission, has been launched to develop a new generation of shortsea vessels utilising advanced design and manufacturing techniques. With trade between European countries increasing rapidly year on year, great demands are being made on Europe’s transport infrastructure.The implications and costs associated with expanding road and rail capacity are well understood by politicians and the general public alike. The only freight transport mode that has virtually unlimited potential for expansion, and which is considered environmentally friendly, is coastal shipping, hence the current EU focus on encouraging more cargo to move by water. However, the increasing volumes of cargo being shipped over relatively short distances require major rethinking on the part of shipping companies and ports. Larger ships are required and for them to be efficient, faster cargo handling concepts are needed. Otherwise ships will end up spending more time in port than at sea. The CREATE3S concept envisages a vessel consisting of two principal modules - a ship hull module and one or more large cargo modules. The concept is intended to be equally applicable to container, dry bulk or liquid cargoes. When the vessel arrives in port, it will be possible to separate the cargo modules from the ship section, placing them on the quay.The ship module is then mated with other cargo modules for the return voyage. In this way, time in port for the more expensive component, the ship module with its crew, machinery and bridge/navigation systems, will be minimised, and the cargo units can be unloaded and made ready for the next vessel call. This approach will allow a “standard ship design” to be tuned to very different trades and commodities, whilst using advanced coanstruction techniques such as the industrial fabrication of large series of standardised basic modules.This is expected to reduce both operational and manufacturing costs The most revolutionary feature of the CREATE3S concept is the potential to transfer the complete cargo load in just one move. However, for certain vessel applications, it is possible that there may be more than one cargo module. In the case of bulk liquids, for example, more than one commodity may be moving on the same vessel or it may even be practical to mix bulk and container modules on the same sailing. The key feature remains that the in- Artist’s impression depicting how the CREATE3S concept of ship and cargo module(s) might look dividual cargo unit being discharged in one move will be far bigger than today where the maximum size unit is typically a 45ft container or 20ft ISO tank. The CREATE3S modular concept will be applied to a variety of cargo types including intermodal loading units (containers/swap bodies), dry bulk and liquids including petroleum products, chemicals and liquefied gas. Safety and sustainability are also being investigated and accommodated through a comprehensive risk assessment and integration of solutions that facilitate reduced energy consumption, emissions and waste.The new generation vessels will be assessed on their operational and ecological performance in relation to total cost of ownership (including production cost) utilising advanced design and ex- ploiting simulation techniques. The project is being coordinated by Samskip Multimodal Container Logistics BV in Rotterdam, which says it intends to be a prominent user of the concept. Other participants include: PD Ports; Damen Shipyards Group; Estaleiros Navais de Viana de Castelo; Imtech Marine & Offshore; TTS Ships Equipment AB; LogIT AS; Centre of Maritime Technologies; Norwegian Maritime Technology Research Institute; Maritime Research Institute of the Netherlands; Delft University of Technology ;Newcastle University; BureauVeritas; and Centrum Techniki Okretowej SA The total CREATE3S budget amounts to €4.2M, with EU funding of €2.5M.The duration of the project, which started on 1 November 2006, is 36 months. Höegh-Maersk join forces Höegh Autoliners and AP Moller– Maersk, through its subsidiary Maersk Shipping Singapore, have entered into a cooperation agreement in the car carrying trades. With effect from 1 February 2007, the combined Höegh/Maersk fleet of 67 car carriers will be operated globally under the Höegh Autoliners name from the latter’s offices in Oslo. Höegh and Maersk Shipping will, however, remain individually responsible for the technical management and crewing of their own vessels. The new cooperation has been established to provide increased capacity, faster transit times and higher frequency to meet customer requirements.“The cooperation with AP Moller-Maersk improves our ability to meet our customers’ requirements for services and transportation volume,”said Thor Jørgen Guttormsen, CEO of Höegh Autoliners.Höegh Autoliners deploys some 55 owned and chartered PCTCs in its global trades and carried about 1.8M car equivalent units (CEU) in 2006. The company is in the middle of a fleet expansion programme, with 15 newbuildings scheduled for delivery from 2007 to 2011. Maersk Shipping Singapore owns a fleet of 12 ro-ro car carriers, which historically have been charterered out to car liner operators.These vessels will join the combined operation as time charter commitments expire. February 2007 23 Section 6 6/3/07 2:43 pm Page 24 WorldCargo news ICT FOCUS Horizon moves on RFID US Jones Act carrier Horizon Lines has taken what could be the first step in establishing a North American intermodal ocean container tracking system with the successful deployment of a tracking system covering its Alaska trade. Horizon Lines is the largest Jones Act carrier with a 36% share of the Alaska, Hawaii/Guam and Puerto Rico markets. The company identified intermodal moves as an area where it could improve asset utilisation, but needed much better information on asset positioning. Rick Kessler vice president, business service solutions and CIO led a team that identified and implemented a technology to integrate an RFID tracking system with the existing web-based trip planning system developed by Horizon Line’s IT subsidiary Horizon Services Group (HSG). Horizon has a fleet of 31,139 containers, chassis and container gensets and started with the Alaska trade lane for the initial implementation of this project. Horizon’s Alaska business is a “closed loop” where containers only travel between the Pacific North West and Alaska. For this initial phase, it has tagged over 5200 boxes representing over 90% of all its Alaska and PNW equipment fleet. Working with the Alaska Department of Transportation HSG identified that RFID could provide a viable tracking solution by installing a network of readers at key points along the Alaska highway systems. In addition, HSG installed readers at key client depots in Alaska and the Seattle area, and at other facilities including Horizonowned port facilities in Anchorage, Dutch Harbor and Kodiak Identec tags After evaluating several RFID tags, HSG selected Identec Solutions’ Intelligent Long Range (ILR) tags that operate in the 915Mhz frequency, can communicate up to 100m and require very low power. Kessler says the tags had to be able to hold up in the tough Alaskan environment and be able to be read when passing a reader at up to 75 mph. Highway readers were installed at locations where both power (already in place for weather stations) and GSM coverage were available. Frequency was a secondary consideration but HSG found 915MHz more attractive than the 2.4GHz spectrum because it is less crowded and HSG’s market research found it more reliable. The tags themselves cost in the region of US$30 each and are fitted to the door of the container with two rivets. Installation costs were not high with one worker able to fit between 100 and 150 in seven hours. Tag battery life is normally in the Horizon has fitted 5,200 boxes with Identec Solutions’ Intelligent long Range (ILR) tags 8-10 year range but HSG is expecting 45 years in the tough Alaskan environment. 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For a price quotation please contact Gilly Tilbury on: +44 1372 375511 or e-mail [email protected] 24 One of the biggest challenges for RFID in supply chain management is integrating the data into enterprise management software in a way that adds value to business processes. Horizon and its clients track containers with its NetCaptain web portal that displays a trip plan for every shipment. Customers can set alerts and other information requests and progress is updated with a mix of manual input and integration with EDI services. To integrate real time RFID data into NetCaptain, HSG used an out-of-the-box integration tool from Identec Solutions that takes data from the readers to a server and through an application programming interface connects to HSG’s event engine. The event engine processes EDI messages and RFID data into the proper message set for the software environment. Having remote servers on the highway to maintain was not an option and Indentec Solutions had to make some changes to its integration tool so that all RFID data could be sent to and processed at HSG’s data centre. It is currently uploading between 6,000 and 7,000 reads a week. The project is now 6 months old and Horizon and HSG are very satisfied with the results. When clients log on to NetCaptain, they have access to real time position information and can improve their own planning processes. One customer, for example, has a warehouse outside Fairbanks and gets an alert when a container passes a reader 1.5 hours away and is then able to better prepare staffing at the warehouse. Previously, they had over 5 hours notice and on the Alaska highway system, with the severe weather conditions, that often created problems for management. Horizon Lines itself is able to benefit from readers in customer locations that give it better notification of when customers have finished with containers. Overall, says Kessler, the RFID information has given Horizon much greater visibility into many aspects of container management, including where equipment is, how long it has been there, and hence has boosted asset utilisation. Next steps The next steps for HSG are to roll out the system to the rest of Horizon’s container fleet in the Puerto Rico and Hawaii/Guam trades and to develop GPS and container-based sensor systems to provide real time reefer monitoring and, eventually, a terminal-based real time locating system similar to those being implemented at US west coast ports by WhereNet and others. HSG also has plans to extend the system to the wider market and offer a container tracking system across the US to rival those Savi and other providers are trying to establish. Importantly HSG wants to offer a hardware-neutral, open system that can support a range of tags and frequencies, which it fully expects will change as RFID becomes more mature as a technology. The global supply chain, however, remains a bigger challenge. In the Hawaii/ Guam trade lane, Horizon partners with Maersk, which ships around 1,000 containers per week from the west coast to Asia via Hawaii and Guam. Once the containers leave these ports, they may never be used by Horizon again and HSG is looking for a way of covering them with its system using an e-seal or a temporary tag. ❏ February 2007 Section 7 27/2/07 11:21 am Page 25 WorldCargo news ICT FOCUS WhereNet changes hands Unipart gets Insight Zebra Technologies of Illinois has purchased RFID and real time locating system (RTLS) supplier WhereNet for US$126M. Zebra is a well-known producer of labelling and ticketing systems and offers an array of passive RFID digital encoders.WhereNet has been operating for ten years and now has over 150 asset tracking installations using its hardware, software and systems including ten terminals in the Port of Long Beach. Commenting on the deal, Zebra chairman Edward Kaplan said, “Active RFID is a natural complement to passive RFID and barcoding, two key Zebra strengths, as it enhances our ability to deliver business improvement solutions to customers worldwide” WhereNet has offices in the US and Europe but probably lacked the financial capacity to extend its global reach significantly. As soon as the sale was completed, Zebra announced the opening of a WhereNet office in Shanghai. Although its financial results will now be consolidated into Zebra’s accounts, Zebra management did reveal that WhereNet made a profit last year on turnover of US$36M, but its margins were slimmer than what Zebra expects from other business divisions. Zebra forecasts WhereNet to achieve sales of US$50M this year and will be looking to leverage synergies and scale to get margins up. According to analysts, forecast sales of active RFID will increase to US$6.8B in 2016 from US$550M in 2006 and the RTLS market will grow from US$15M in 2005 to US$1.6B in 2010. Kaplan told analysts that while there are a lot of “science projects” trying to find a space in the RFID market, WhereNet occupied “the centre of the market and has the product commercial customers require.” WhereNet will be operated as a separate business unit within Zebra, which will be headed by former WhereNet CEO Dan Doles. ❏ UK-based 3PL provider Unipart Logistics has launched a new service that combines RFID, GSM/GPRS (General Packet Radio Service) and GPS technologies to offer a truck, trailer, container and shipment level tracking service within a single integrated system. The system, called Unipart Insight, uses a GPS receiver mounted in each vehicle and GSM/GPRS based telecommunications equipment to communicate position information. An RFID reader is mounted on the truck to read active tags on containers, trailers and individual items in the shipment. Unipart has also developed software that interprets the telematics and RFID data and an API kit to integrate the software with enterprise applications. With Insight, the RFID system can be configured to track goods in a trailer, including a curtainsider and read different frequency RFID tags. Through the GPS unit the software is able to identify and report where exactly a shipment is unloaded. As well as providing an automatic system for proof of delivery it can be used to combat theft by identifying where any unauthorised losses took place. ❏ New gate partners Embarcadero Systems Corp (ESC) and Hi-Tech Solutions have announced a new partnership to develop and market “integrative and fully automated gate solutions for marine and intermodal operators.” Both companies offer separate products in this market - ESC with smartGATE and ESC smartLOG and HiTech with its SeeContainer, SeeGate, SeeCrane and SeeRail OCR systems.The partners will now offer a “comprehensive gate solution” which integrates both lines including exception management systems and user interface stations. “The integrated solution will allow terminal operators seamless management, control and monitoring of container handling transactions at all truck, crane, and rail gates throughout the terminal. The integrated system will be configurable, modular and will integrate with all terminal operating systems (TOS)” said the partners in a statement. In terms of functionality, the combined ESC/Hi-Tec product includes additional features for providing and archiving images and video clips for damage inspection and IMO label detection. Both partners will continue to leverage existing local installation partners - Hi-Tech, for example, has recently worked in the US with Virginia-based Crane Tech Solutions. ESC has worked with Hi-Tech previously but more recently has been associated with Hong Kong-based AsiaVision. ESC stressed that the new arrangement is a formal partnership, but has not been formed to exclude other OCR providers and the latest version of smartGate, smartGATE 3.0, has been designed with an open platform to give customers the flexibility to choose OCR and other components. ❏ Northland selects HSG Barge and terminal operator Northland Services Inc has selected Horizon Services Group (HSG) to replace its legacy systems with web-based equipment management and back office systems. HSG has replaced all the legacy systems at its parent Horizon Lines with web-based developments. With the new software Northland will be able to integrate core systems for booking, fleet management, vessel scheduling, stowage, quoting, billing, rating, proof of delivery and documentation. “Horizon Services Group offers the combination of deep industry experience, Alaska knowledge and advanced technology expertise to assist us in migrating to a new systems platform that will ultimately allow us to improve operational efficiency and service to our customers,” said Shawn Bohnert, executive vice president of Northland. “That was a winning combination for us when we went through a very thorough review of similar systems and service providers in the marketplace.” ❏ February 2007 25 Section 7 27/2/07 11:23 am Page 26 WorldCargo news ICT FOCUS TWIC cards…no readers The US Transport Security Administration (TSA) has issued the first of two rules on Transport Worker Identity Card (TWIC) requirements and implementation procedures. An estimated 75-85,000 transport sector workers will have to apply for a TWIC which requires a check of criminal history, immigration status and terrorist watch lists among other things. Applicants will have to apply in person and provide fingerprints and other identity documents. Lockheed Martin has been awarded a US$70M “indefinite delivery/indefinite quantity” contract for the initial deployment, including the establishment of enrolment centres across the US and to provide the cards themselves. The cards will cost US$137.25 and will be valid for five years.Workers who have already had a background check for HazMat or other special permits will pay a discounted fee. The TSA defines the TWIC card as a “Smart Card” containing: a Dual Interface Integrated Circuit Chip that can be read by a contact reader or by being held within 10cm of a contactless reader; a magnetic strip (similar to a common credit card); and a linear bar code. The TSA has, therefore, given in to pressure to allow a non-contact reading option even though the technology for this has not yet been finalised. A draft regulation prescribing card reader requirements is expected at the end of this month and then readers will have to be tested. Until the contactless reader standard is developed ports will not be required to verify TWIC cards electronically for access to facilities. For ports, the reader standard is arguably more important than the cards themselves and even though it has not yet been determined, the Georgia Ports Authority (GPA) has issued a request for quotations for “Ultra-scan mobile biometric reader identity stations.”Without specifying how it plans to incorporate biometric identification into its operations, the GPA is asking for units that can read proximity cards/smart cards and “be capable of capturing fingerprint data and comparing the fingerprint data to data entered into a standard SQL database by readers manufactured by other companies.” The GPA specified that the units “shall be TWIC-ready, requir ing only a software or firmware change to be TWIC compliant.” Initially the GPA specified that the cost of any changes for TWIC compliance must be borne by the vendor but then backed down and said that while this was “desired” vendors should specify any associated costs. The GPA is pushing for fast delivery and the tender states, “Time is of the essence. Equipment must be shipped in ad- equate time so that the equipment will be delivered to GPA and invoiced no later than Friday, March 23, 2007.” ● While the US is progressing with TWIC cards and radiation scanning, it does not appear to be making any headway preventing drugs from being smuggled in shipping containers. Several people were recently indicted after a drug smuggling r ing shipping cocaine and heroin through Norfolk International Terminals (NIT) was uncovered and a 275lb shipment intercepted. It was found that those responsible had been removing bolt seals from containers in Panama, loading drugs and then resealing the doors with new bolt seals over a four-year period. While ports check for intact seals, procedures to verify numbers do not yet cover all containers. The problem in Virginia pales in comparison with Miami terminals, however, where author ities have reportedly seized over 15,000lbs of narcotics in the last two years. ❏ The Risks Are Simulated. The Benefits Are Real. Portland debuts GateVision Tideworks Technology has completed the deployment of its gate operation system, GateVision, at Portland’s Terminal 6. Administration at the nine inbound lanes is now a paperless single-stage process where drivers receive instructions on screens at a kiosk. Gate staff have been moved away to an office environment where they key in the truck license number, container number and chassis number manually from images obtained from the GateVision CCTV Cameras in the lanes. As well as being safer, processing is now streamlined and removing the gate clerks created room for an extra outbound lane. Portland recently approved expenditure for the next stage of Tideworks has completed the first stage of a paperless gate project at Portland and will install an OCR system later this year the gate project where Tideworks and its OCR partner Camco will implement an automated data capture solution. “When the gate OCR comes on stream later this year, the clerks will then only need to visually confirm the data fields that will automatically be captured by the OCR engine and populated into the Mainsail (TOS) gate form. This will further improve truck processing time significantly and enable the Port to handle increasing volumes at the container terminal” said Tideworks Marketing Manager Harvey Bauer. The Baltic Vision ::Productivity :: Decrease in-crane operator error related accidents. ::Proficiency :: Decrease the number of on-the-job training hours. ::Profit :: Increase in operator efficiency. MPRI.The world leading supplier of crane simulation training and port operations. Contact MPRI today to see how our simulators can increase the confidence, safety and cost efficiency of your team. Americas +1.801.303.5630 Europe +47.51.57. 53.14 Asia +65.9677.8980 [email protected] www.mpri.com 26 Finland’s Visy Oy continues to have success with its access and area control solutions in the Baltic and Balkan Markets. Eastern European nations have shown a willingness to adopt the latest technologies and are at the forefront of many developments. Recently, for example,Visy signed a contract through its partner in the Former Yugoslav Republic of Macedonia to deliver 25 licence plate reader lanes to the UN Mission in Kosovo. FYR Macedonia, one of the least developed of the former Yugoslav Republics on many economic measures, recently became the world’s first “wireless country” where over 95% of the population, including rural communities in rugged mountains, has access to wireless broadband Internet service. The success of Visy’s border control systems in the Finnish market, where it has delivered what is believed to be the largest border control system between the EU and Eastern Europe, has already helped it win contracts for access and area control systems in Estonia, Slovenia and Spain. In the port market Visy is currently working on projects includ- ing a new 40+ lane gate system at the Port of Kotka and designing the gate system for the new Vuosaari Harbour at the Port of Helsinki. The range of technology incorporated into gate systems now encompasses OCR, line scan imaging, truck scales, traffic guidance and laser scanners for dimensional measurements. To better keep current and potential Baltic clients abreast of developmentsVisy has joined the Baltic Ports Organisation - the first commercial company to do so. While Visy has integrated a radiation scanner for one client and RFID systems for others, sales manager John Lund says for its port and border clients, the biggest issue is still getting an accurate read of the container number. Line scan camera technology continues to develop and Lund says recent advances mean Visy is able to assure clients that the required accuracy can be achieved without the need for a canopy to regulate light and background conditions. With advanced lighting and light calibration technologyVisy has been able to deliver gate OCR systems in demanding environments including the Arctic Circle without the need for a canopy. ❏ Savi licences tag vendors Savi Networks LLC has announced further installations at container ports of its 433MHz active RFID tag readers.The latest ports to install readers are Busan in South Korea and Rotterdam in the Netherlands.With the readers in place, these ports will now be covered by the SaviTrak information service. Users of SaviTrak will now have a greater choice of tag ven- dor as Savi recently announced the first seven companies that have been licensed to produce tags compliant with air standards under ISO 18000-7 technology, which is patented by Savi. The companies are: Apogee Total Solutions, Convergence Systems Ltd, Evigia Systems Inc, Graphic Industries Inc, Hi-GTek, Identec Solutions and Impeva Labs. ❏ February 2007 Section 8 1/3/07 18:24 Page 27 WorldCargo news ICT FOCUS Customs coshed over CMR A top-level report into the botched introduction of the Australian Customs Service’s Integrated Cargo System (ICS) in late 2005 has catalogued comprehensive failures. The imports phase of the ICS, a key part of Customs’ Cargo Management Reengineering (CMR) project designed to replace a number of different systems with a single Customs/industry interface, was unilaterally introduced on 12 October 2005 despite urgent warnings that neither the system nor its users were ready. Chaos ensued with, for example, routine transactions that should have taken 40 seconds taking four hours, and the system and back-ups collapsing under the weight of cascading problems. Within a day containers were starting to bank up at all major ports and even clearances of dry and liquid bulk cargoes were in disarray; backlogs lasted many months at enormous cost to industry. In a scathing report the Australian National Audit Office (ANAO) said the management framework that Customs had in place to support the project lacked many of the basic fundamentals necessary to successfully implement a large ICT project.Customs underestimated the complexity and the risks associated with the project and failed to properly respond to emerging issues and changes in risks. The implementation was not supported by a coordinated implementation strategy or adequate business continuity planning; insufficient time was allowed for system testing, particularly end to end testing. Customs did not have quality assurance mechanisms to assess the readiness of third party software providers, the quality of their software or the preparedness of industry participants. “Problems with the Cargo Risk Assessment system also impacted on Customs’ ability to clear cargo and to target and assess high risk cargo, increasing the risks to Australia’s border security and Customs’ revenue collection responsibilities,” ANAO said. ANAO noted that Customs, now under a new chief, acknowledges that the CMR project “could have been better managed and has learnt lessons from the project.” It has initiated a number of reviews to improve its processes, revised its organisational structure and is modifying the ICS to more closely align with user and business requirements. Customs asserts that it has initiated a number of “concrete steps” to address ICS’s shortcomings. “System functionality and useability improvements, combined with a review of the Customs intelligence functions, are similarly designed to realise the promised improvements to cargo risk profiling,” CEO Michael Carmody said. “Recognising the difficulties faced by industry during the implementation of ICS, Customs offered to pay compensation in appropriate cases.To date, close to A$1.5M has been paid (or is in the process of being paid) following consideration of the majority of applications received.” But Australian importers and exporters have had to employ extra resources to cope with entrenched supply chain “work-arounds” in order to deal with ongoing ICS problems, according to Customs Brokers and Forwarders Council of Australia executive director Stephen Morris. An industry action group register of issues relating to CMR was not shrinking but continuing to grow, he told local reporters. “People have had to take on additional resources because productivity dropped,” he said.“It has not come back to where it was before. Productivity has returned to normal but at a cost, in terms of resources being employed in the industry. ICS didn’t deliver any business improvements to the industry, and delivered minimal outcomes to Customs.” ❏ February 2007 Australian imports go electronic Australian importers are now able to take delivery of containers direct from terminals using electronic Import Delivery Orders (eIDOs). Stevedores Toll/ Patrick and DP World will receive clearance information electronically through their jointly-owned EDI company 1-Stop’s message gateway, enabling paperless delivery - a move widely welcomed by industry. Through peak body Shipping Australia Ltd (SAL), a process has been agreed whereby once a shipping line has received payment for the cargo and settled all other commercial requirements, it will generate the eIDO or “authority to deliver” message to 1-Stop which will then forward this authority to the relevant terminal. This message, which will contain an authority number or PIN, can also be forwarded to the importer or appointed agent if so requested by the shipping line. With the paper delivery order no longer required at the terminal gate, the transport operator will only need to link the PIN to the booking within the Vehicle Booking System or quote it upon arrival at the terminal gate to obtain delivery of the cargo. Jack Williams, DP World managing director, Australia, said the process would provide immediate industry-wide benefits, including increased security over cargo and further gate transaction efficiencies, Doug Schultz, terminals general manager at Patrick, said the implementation was another step towards a more efficient collection and delivery process and was necessary if further improvements in service were to be offered to the road and rail users of the company’s terminals. SAL CEO Llew Russell said the industry had been working enthusiastically with the stevedores to introduce eIDO.The new system will initially apply only to containerised cargo at major Australian ports but it is intended that expansion of electronic release to cars, bulk and breakbulk cargo, will be investigated in the near future. Until the majority of shipping lines are ready to participate in the eIDO system, existing gate processes will continue to operate in parallel. ❏ Total Solutions for Cranes Developing more efficient and reliable crane drive control and management systems is something we at Siemens Cranes know all about. As a specialized unit within Siemens, we offer products, systems and complete olutions for all types of cranes. From drives, power distribution and field devices to our sophisticated SICMA Crane Management and TOUCHMATIC Sway Control Systems and semi-automated operation. Technological know-how and resources, including consultancy, engineering, project management, commissioning, training and after-sales service. Our experience with crane projects worldwide and our global presence give you the guarantee of a reliable partner who can offer you solutions to meet your needs. Let’s talk... Siemens Cranes, Netherlands, phone +31 70 333 3227 [email protected] or contact your local Siemens office. www.siemens.com/cranes Global network of innovation 27 Section 8 2/3/07 3:37 pm Page 28 WorldCargo news ICT FOCUS Look, no LAN When it was time to replace its aging narrowband wireless LAN, the New Zealand Port of Nelson opted to use the 3G communications network available from Telecom New Zealand rather than install infrastructure for a new LAN. The port’s chief commercial officer, Parke Pittar, says the main reasons for going with 3G as opposed to a 2.4GHz solution were cost and flexibility. “We did not want to commit to a proprietary system and have to invest in the infrastructure ourselves. This way we have a choice of network provider, laptop provider (more limited due to the nature of the lap top) and can extend our use of our core cargo management system (Jade Master Terminal) by using the existing thin client functionality extended out to the drivers.” Nelson is currently handling around 60,000 TEU with harbour Laptop with touch screen running Jade Master Terminal as a thin-client application at the Port of Nelson mobiles and an FLT yard system. FLT drivers access the port’s Jade TOS via ruggedised military-spec laptops and a new touchscreen user interface developed by Jade. Pittar wanted to avoid drivers having to scroll through multiple screens and increase the number of services that are captured by the driver. Jade took a standard Jade client screen and developed a new layout in consultation with the FLT drivers. Controls were enlarged to suit gloved hands and messages and screen backgrounds graded in user-configurable colours to reflect importance and active items. Jade’s Dave Quennell says screen configuration is handled by the Jade engine with no additional software and is much simpler than programming for narrow band terminal emulation software. With Jade’s object-oriented environment and thin client technology, it is relatively easy to run the application from any touch screen or other hand-held device. The touchscreen hardware passes standardised MS Windows events such as click and drag commands through to Jade Master Terminal through the TCP-IP connection. One concern with 3G is that the user pays by data volume but Quennell says the system is configured for very low bandwidth consumption. Terminals with more users might find 3G access costs more over the long term than a 2.4GHz wireless LAN, but Quennell says in the end it does not matter what the terminal chooses as the transmission medium:“As long as it talks TCPIP we are happy with the terminal’s choice of communication sub-system.” Jade’s thin-client technology “opens a whole spectrum of possibilities that we are actively developing for our clients right now,” he adds. Pittar says Nelson has gained operational benefits from the new system. Drivers are using the screens for approximately one third of the time they were previously and capturing more services including container washes, repairs and pre-trip inspections for reefers.The next step is to replace the old handheld network devices with terminals and Jade will be designing new forms for these as well. ❏ ITS supplies real time tracking system to AMPT Algeciras UK-based International Terminal Solutions (ITS) has installed its GPS position determination system (PDS) and container move identification system on 20 new RTGs delivered to the APMT terminal at Algeciras, Spain. Together with the ITS Automatic Truck Identification (ATI) module, the PDS and other systems engineered by ITS provide real time tracking of equipment positions for optimised yard planning and a system for issuing work instructions and confirming completed jobs without drivers having to operate a touch screen or press a key on a vehicle mounted computer. While the PDS tracks container handling equipment, the location of containers on road trucks and terminal tractors is managed by the ATI module. Terminal tractors are fitted with automatic ID transmitters and hand-held units are issued to truck drivers at the gatehouse. The transmitters use an infrared signal to pass container ID and work instruction information directly to the RTG, which is then cross checked against the work instruction for the TOS. A “twist-interlock” feature monitors the position of the spreader and prevents an incorrect move being carried out by preventing release of the twistlocks unless the crane has the correct container in the correct position. The ATI system is able to identify to the crane the position on the chassis of 2x20ft containers. ITS managing director Richard Lambert says the advantage of its infrared-based system over RFID systems now being used on the USWC is that not every chassis has to be tagged and the system is still able to identify the correct container position on the chassis. APMT is also using an ITS equipment/operator security system that uses machine readable cards to authorise access to equipment and data and its equipment maintenance logger to send maintenance information from the RTGs directly to the terminal’s ERP system. ❏ TSB in Guangzhou deal Total Soft Bank (TSB) has announced its first client site in Mainland China for its CATOS TOS - the Guangzhou South China Oceangate Container Terminal (GOCT). The terminal is the second phase of the Nansha port project in Guangzhou at the mouth of the Pearl River Delta. Phase I was opened in 2004 and handled over 2M TEU last year. Construction of six berths at phase II began in 2005 and is expected to be completed this year, adding over 4M TEU of new capacity. TSB Chairman Jang Su Choi said the contract is an important reference for TSB in mainland China. It is also important exposure to a key terminal operator, APM Terminals. GOCT was initially a JV between Cosco Pacific (59%) and Guangzhou Port Group (41%) but in August 2006 Cosco Pacific reduced its holding to 39% and sold a 20% stake to APMT. While CATOS is used extensively around the world it is not yet in use at a terminal in which APMT has an ownership stake. GOCT will implement a full range of CATOS functionality including planning for the gate, yard and vessel operations and in integrated monitoring and control system. Management functions include a statistics and analysis module to monitor productivity and work flow. A critical factor in the implementation is scalability as the terminal is expected to ramp up to 4M TEU quickly. ❏ NovAtel for Yangshan w w w. s t e e l b r o . c o m 28 The first two container terminals at Shanghai’s Yangshan port are using global positioning systems supplied by Canadian company NovAtel to position and track all container handling equipment, including quayside cranes, RTGs, FLTs, reach stackers and trailers. NovAtel’s GPS engines track container positions, aid dispatching of container handling tasks and optimise the management and operation of container placement. The contract to supply and install the system was won in August last year by NovAtel’s Chinese dealer Beijing BDSTAR Navigation Co, which has also supplied NovAtel GPS systems to container ter minals at Ningbo, Tianjin, Shenzhen and Hong Kong. “We have integrated BDSTAR’s customised software services with NovAtel’s accurate and reliable GPS technology to create a strong product offering for this market,” said Qin Jiafa, vice president of BDSTAR. NovAtel says it supplied around 500 GPS receivers, integrated with BDSTAR’s Container Ter minal Operations Monitoring and Controlling Software (TOMACS) and proprietary integrated navigation hardware, to ports around the world last year. ❏ February 2007 Section 8 1/3/07 18:26 Page 29 WorldCargo news ICT FOCUS Sabio Logistics adds GE Security releases CONTTAC web portal CommerceGuard 3.0 Sabio Logistics has developed Container Terminal Tracking and Control (CONTTAC), a port community web portal that operates completely independently of other container terminal operating systems. CONTTAC integrates with other applications using the underlying TOS database querying language and the J2EE open standard, allowing it to operate with almost any TOS without interfering with the primary application or its underlying database and integrate natively with ERP systems such as SAP and PeopleSoft. Several terminals in Latin America including all the HPH terminals in Mexico and DPW’s in Venezuela are now using CONTTAC as their primary web portal. Using the core CONTTAC module, terminal clients can view container details, booking information, set alerts, upload EDI files for processing, and schedule reports in Excel or PDF format. Container alerts allows users to be informed by email or pager of all monitored events including arrival, delivery, seal status and reefer condition. Separate billing and services modules allow terminals to process invoices and schedule container services over the internet. Participating banks allow for online payment and full integration with CONTTAC. Sabio’s James Siojo says the main advantages of CONTTAC are its security, flexibility, scalability, stability, and return on investment. Built in BEA WebLogic, it permits the use of server clustering technology required for high-availability environments. At ICAVE in Mexico each session is replicated to prevent a single problem locking the user out of the system midway through a process and having to re-enter data. Terminals can create an unlimited number of user groups and subgroups to control access to data and reports, while administration can be delegated to super users within a particular client company, such as a shipping line. Reports are scheduled by the user using a similar algorithm to that supporting the Palm Pilot devices. If the terminal chooses, limited information can be made available through the web portal without requiring a log on. The software supports real-time dynamic requests with multiple data sources and TOS making it ideal as a terminal community portal. However, an Oracle database is required for storing CONTTAC configuration parameters. Sabio also offers CONTTAC as a remote-hosted configuration. All this requires is an Internet connection with the ability to establish a VPN (Virtual Pri- SAPO opts for Navis South African Port Operations (SAPO) has chosen Navis operating software for its new Pier 1 terminal in Durban. SAPO operates Cosmos software at all its existing straddle carrier terminals. The new Pier 1 terminal will be the first in South Africa to use RTGs and the first of 12 units ordered from Kalmar are now being assembled. SAPO is clearly trying to achieve something of a fresh start for Durban, which, over the years, has been the subject of frequent criticism by lines for poor productivity. The new RTG operating system is being touted as more productive and Hamilton Nuxmalo, SAPOs equipment, engineering and asset management manager, says the Navis software is expected to “enhance flexibility for RTGs and promote automation and integration.” Key staff from Durban are now in the US being trained at Navis head office in Oakland. It is not known whether SAPO plans to license Navis software for its other container terminals. ❏ February 2007 vate Network) in between the Sabio data centre and the location of the TOS. Finally there is no vendor lock in for either hardware or services - purchasers can run the software on standard hardware and support it however they choose as long as it supports the J2EE standard. Sabio charges for upgrades, but there is no annual maintenance fee.Terminals can contract customisation from another provider, although Sabio believes it is highly competitive in this area; “every day we have to re-earn the client” says Siojo. GE Security and its global partners have released version 3.0 of its container security and tracking system CommerceGuard. CommerceGuard uses an array of sensors located inside the container to track position, door status, temperature and record events. GE Security says Version 3.0 extends CommerceGuard’s container security system with new, ultra rugged readers, automated XML data feeds for use by customers to track the status and location of their shipments and a secure protocol for highly reliable wireless messaging. “Security is assured by encrypting all data communications and authenticating all hardware transactions and authorised users. Extensive laboratory and field tests conducted by independent third parties show wireless communications for the system exceed 99% reliability and the sensor detects container breaches with a false positive rate that is less than 1%,” the company said. As previously reported in WorldCargo News, GE Security, together with its partners Samsung Corporation, Mitsubishi Corporation and Siemens Building Technology, has established the CommerceGuard Information Network in 14 international ports and more are to be announced this year. CommerceGuard is being marketed as “the first, market-ready global supply chain security system that can deter and detect theft, smuggling and international terrorism by integrating container security devices with a global information network.” Container tracking is “available to customers at no extra charge.” Severe Environments • Flexibility in temperature extremes and rigorous applications Highly Engineered • Cables for festoon and reeling systems, cable track and flexing applications Unique Technology • New generation designs for today's crane cable systems Global Organization • Worldwide wire and cable companies featuring BIW and Draka Industrial Cables Draka Cableteq USA 22 Joseph E. Warner Boulevard North Dighton, MA 02764 USA T: (800)333 4248 Fax: (888)201 8280 www.drakausa.com Draka Industrial Cable GmbH Dickestr.23 42369 Wuppertal Germany T: +49(202) 296 0 Fax: +49(202) 296 2000 www.draka.de 29 Section 8 2/3/07 3:12 pm Page 30 WorldCargo news ICT FOCUS Advent goes open source New Jersey-based Advent is well established in the liner side of the industry where it has successfully delivered a global operating system for K Line and completed numerous other projects including an EDI system for Wallenius Wilhelmsen and a Ro-Ro/Container management system for Sea Star Lines. With all its software developments Advent licenses the purchaser for the software and source code, allowing them to install as many versions as they chose and customise the applications themselves with Advent, or using any third party developer. This is an important departure from the “off-the-shelf ” model that dominates the vessel planning market. Advent does not have a single version of an application that it intends to develop and upgrade at client sites. Essentially it is selling the base application and development tools for terminals and oper- Transport software specialist Advent Inc is offering terminals a licensed TOS with full access to the source code ating companies to develop and maintain their own legacy system. Two options For container terminals,Advent has developed two Terminal Operating System (TOS) products: a large scale version to support bigger terminals; and a web-based operating system for small to medium, container, auto and bulk terminals. Both were developed using Microsoft.Net technology to run on MS SQL Servers. Importantly, Advent’s TOS does not yet incorporate vessel, and yard planning tools. Parvez Mansuri, vice president of product development, says two years ago Advent decided that the greatest opportunity in the ports mar- ket was to leverage its experience and develop a data management system.This competes in the same market space as Navis Express and Tideworks Mainsail, but not with planning applications such as SPARCS and Spinnaker.There are a large number of terminals using SPARCS and other off-the-shelf products for vessel and yard planning in combination with legacy systems for data management and for some client sites Advent has replaced Express with its TOS and interfaced with SPARCS. Another application that used to be sold with the source code is Jade Software’s Jade Master Terminal (JMT). However, Jade no longer gives clients access to the source code unless they purchase ICTSI automates Manila gate International Container Terminal Services, Inc (ICTSI) is set to implement full automation of a new central gate at its flagship, Manila International Container Terminal (MICT), with the introduction of truck portals with imaging cameras and automated driver transaction kiosks.As previously reported, modern weigh bridges have already been installed during the gate’s initial phase of operation. “We can now look forward to our central gate running with increased efficiency minus the 30 presence of a checker at the gate as the automated gate system will do most of the work for us,” said Francis Andrews, ICTSI senior vice president and MICT general manager. Upon entering the central gate, six portals with monochrome area scan cameras will capture images of a container’s left, right, top, front, and rear back door sides.The truck’s licence plate is also captured and stored in the system for reference. Through OCR, container numbers are captured by the system while possible container damage is manually flagged by a checker from the remote office. Each lane has a kiosk that will take a biometric finger print scan, a bar code ID card reader, voice over IP speaker and call button audio system, LCD screen that will provide instructions and messages to guide the driver through the gate transaction, and built-in thermal printer that will print the truck instruction document EIR after the execution of each gate in/out transaction that will then trigger the gate barrier arm. the developer version of the software. Jade’s Dave Quennell says this is because “the software has now got to the level of complexity where an inadvertent change to our code could reduce a terminal to a complete standstill,” Jade also offers a standard support and upgrade cycle for JMT and wants to prevent the terminals altering the software and requiring further customisation for every upgrade. Clients can still carry out their own developments in a separate sub-schema of the database, which are then linked to the main data structures through an application programmer interface. Different approach Advent’s approach to the market is somewhat different in that it does not intend to maintain a single off-the-shelf application across a wide range of clients. Mansuri says the idea that terminal operators have enough similarity between businesses to incorporate all the requests for customisation into a standard product does not reflect market reality. Furthermore, terminal operators and shipping lines regard IT systems as a key part of their competitive advantage and do not want expensive customisations standardised and then shared across a wider market. Users with several terminals are still likely to have different requirements at various sites, particularly with regard to integrating third party systems, but Screenshot from the Advent TOS this can be managed by keeping integration in a middleware layer so the client maintains one overall version of the main software. Advent also believes that giving its customers the source code will help terminals better control the cost of IT development. Mansuri says broadly speaking terminals have two different needs in this regard: small terminals that do not want to run a large IT department and want to outsource their IT completely if possible; and larger terminals that want the ability to have contested customisation using resources in-house where they can, local programmers for some work and the original provider where that makes sense, such as for a major integration project. Advent is also targeting smaller terminals, particularly on the USEC and in South America, that Mansuri says do not need full-scale graphical planning capabilities. Its web-based solution is particularly designed for companies operating several smaller terminals that are looking for an appropriate level of functionality and do not want to purchase multiple software licences. While there are “pay-per-con- tainer” hosted systems on the market, Advent offers a single enterprise licence for its web TOS, allowing the client to “host” the software for several terminals at one site and manage sites over the Internet. For example, Sea Star Lines has a centralised multi-terminal system supporting several terminals from its head office in Florida where it is integrated with its existing Oracle-based booking and documentation system. At the individual terminals, cargo is tracked with hand-held computers and barcodes and customers exchange information by EDI. Advent is now developing a web portal that supports availability and other notification services, trucker appointments and online demurrage payment. It will operate over any TOS and is expected to be available in the third quarter. The company also plans to develop its own planning and real time control system, which will support its west coast clients as they implement real-time locating systems for yard management as well as enabling Advent to compete with products like Navis SPARCS and Tideworks Spinnaker. ❏ February 2007 Section 8 5/3/07 10:24 am Page 31 WorldCargo news RUSSIA/CIS: PORT DEVELOPMENT In desperate need of a decongestant Greenway Holding Company, the Saint Petersburg-based logistic and transportation services provider, has finalised a deal to buy a logistics terminal in the Finnish Port of Kotka, a major transit gate for Russian cargoes. The deal, made through a Finnish daughter company, Greenway Europe Oy, Hamburg’s Odessa file Mikola Pavliuk, director general of Merchant Seaport of Odessa (OMTP) and Klaus Schmecker, president of Hamburg Port Consulting Ukraine (HPC), have signed a framework agreement on the terms of operation of the new container berth to be built at the port’s Karantinny mole. HPC has handling container operations in the port since 2001. Last year traffic shot up 37% to 395,563 TEU. As previously reported a new quayside gantry crane is on order from Liebherr. Four RTGs will be ordered this year. The new terminal is part of OMTP’s development strategy for 2005-2010. Last year, the port invited tenders for the terminal construction and HPC and Israel’s Zim were the main bidders. However, the tender had to be annulled as it conflicted with Odessa city ordinances in important respects. Nonetheless, the exercise helped the port select its partner. “Although there probably were slight imperfections in the official tender arrangement procedure,” said Pavliuk, “the main goal has been achieved. We have found the investor to work with.” OMTP and the city authorities have met each other half way. The project can go ahead, but on a reduced scale, with slated annual capacity cut from 1M TEU to 600,000 TEU, and “footprint” and construction costs also cut back considerably. OMTP and HPC will invest on a 41:59 basis, with OMTP responsible for deepening the water area to 13.5m, breakwater, fendering, etc and HPC responsible for in-filling, site preparation, terminal buildings, crane rails along the 600m berth and all the handling equipment. ❏ is symptomatic of the serious problems confronting Greenway’s “home” port of Saint Petersburg. Delayed “Today,” explains the company’s director general Andrei Saveljev,“containers coming to the port of Saint Petersburg may stay for over a week at the terminal waiting for customs clearance and many of [our] customers are not satisfied about that. In January, some of the large container shipping operators stopped calling at the port, so delivery of Russia-bound cargoes via the Finnish ports is still very attractive for many cargo owners.” The sheer scale of growth in Russian container demand has overwhelmed the capacity of the country’s Baltic ports Greenway’s Kotka facility covers an area of 2.4 hectares including a rail-connected, 5000 m2 warehouse. Full customs clearance facilities are available, so Greenway has the option of devanning the containers, holding the cargo until it is required and then trucking it to the consignee. Container rail services can also be used for inbound and outbound shipments. Greenway states that it has already secured contracts that will fill 70% of the warehouse. Throughput in the first year is expected to reach 10,000 TEU. Congestion in the Port of Saint Petersburg has been getting worse and, in addition to the problems mentioned by Greenway, once the containers have been landed, ships are having to wait for 7-10 days, sometimes longer, for a berth, meaning that a whole round trip sailing between Hamburg/Bremerhaven and Saint Petersburg has been lost. Surcharges In December, CMA-CGM introduced a congestion surcharge of US$150/20ft and US$300/40ft (US$500/1000 for reefers), while the Far Eastern Freight Conference is surcharging US$300/600 for 20ft/40ft containers (US$550/1110 for reefers). Although container handling facilities have been improved in the past few years, the terminals have a limited “footprint” and the port has been playing “catch up” with container traffic levels that have been rising at a faster and faster rate. For example, the “Big Port” handled its millionth TEU in calendar 2006 at the end of September, two months earlier than in 2005. At the end of October, EFFICIENT CONTAINER HANDLING Containers going Poti Georgia’s Port of Poti has invited international tenders for the long term lease (20 plus 10 years) lease of its container terminal (Berth No.7). Interested parties, says the port’s commercial and investments director Eduard Machavariani, must submit bids with secur ity deposits of US$300,000 each by 23 April. The bids will be opened the following day and the results announced on 2 May. The container berth is responsible for around 18% of the port’s overall turnover and its revenues have grown by 31% over the past three years, generating a profit of US$5M last year. Seven of the port’s 15 berths have already been leased out, all to Georgia-domiciled companies with substantial foreign involvement by Russian, Czech and Spanish companies. Jemal Inaishvili, president of Georgia’s Chamber of Commerce and Industry, has stated that the country will be visited by officials from Dubai Ports World, which is reported to be prepared to invest around US$300M in the construction of a new container terminal and a similar amount to create a free economic zone. Earlier, the Overseas Private Investment Corporation (OPIC), the US government agency supporting US investment in emerging markets worldwide, declared its readiness to grant a US$4M loan to American Monolith, which is partly-owned by Southeastern Export Corporation, towards the building of a 7200 m2 refrigerated warehouse in the port. OPIC’s president and CEO Robert Mosbacher Jr said the project is aimed at fostering Georgia’s growing agricultural sector. ❏ Konecranes is your partner to handle containers: Straddle Carriers, STS Cranes, RTGs, RMGs, Reach Stackers, Container Trucks, Fork Lift Trucks and Positioning systems. Providing tailored equipment and services to meet your unique requirements is our speciality. Konecranes (Ports), P.O. Box 662, Koneenkatu 8, FIN-05801 Hyvinkää, Finland Tel: +358 20 427 11 Fax: +358 20 427 2599 www.konecranes.com Konecranes (Straddle Carriers), Daimlerstraße 4, D-97209 Veitshoechheim, Germany Tel: +49 9 31 / 99 14-112 Fax: +49 9 31 / 99 14-301 Konecranes (Lifttrucks), P.O. Box 103, SE-285 23 Markaryd, Sweden Tel: +46 433 733 00 Fax: +46 433 733 10 www.smvlifttrucks.se February 2007 31 WCN_Feb_07_v6.indd 1 1.3.2007 14:53:39 Section 8 27/2/07 12:43 pm Page 32 WorldCargo news throughput had reached 1.168M TEU, 28% ahead of the corresponding position in 2005. Traffic at First Container Terminal (FCT) was up by 22.2% to 725,650 TEU, while Petrolesport’s throughput rose by practically 60% to 252,441 TEU. Containerships’ Moby Dick terminal handled 124,568 TEU (+35.1%) and MTPSP (the port’s biggest overall grouping) handled around 31,000 TEU (+25%). Limited storage space at the terminals is aggravated by bottlenecks in landside distr ibution, caused mainly by customs delays. The port is consider ing a RUSSIA/BALTIC: PORT DEVELOPMENT US$950M project to widen and deepen its fairway (to 150m and 13.5m respectively), with the object of increasing capacity by about 25%.The timeframe for this is not clear and, in any case, would have to be matched by improvements at the berths, the backlands and road and rail access. Behind schedule Meanwhile, Russia’s other Baltic port projects have been subject to considerable delay. This is most clearly the case with Ust-Luga, where only the privately-funded coal export terminal is in operation. However, as previously re- ported (WorldCargo News, November 2006, p6), Russian Railways (RZD) is to pay R184.5 (US$6.7M) to buy an 8.5% stake in the port development company (KUL) and that should galvanise things. RZD has already spent about R6B on the port’s railway approaches and the shareholding will help secure its return on investment. For its part, KUL is still talking up the port’s projects and says that the planned container terminal of National Container Company (NCC) will eventually have a capacity for 3M TEU/year. The situation in Saint Petersburg is probably not helped by the various deals that have seen ownership of its key terminals change hands so frequently, without anyone apparently taking a longer term view. Thus, for example, while Severstaltrans (SST) is now out of NCC, the parent company of FCT, following a deal between First Quantum and Sergey Generalov’s Industrial Investors Group (PI), it has reportedly negotiated a deal to buy PetroLesPort from Orimi, with figures of US$100-150M bandied about. PI is also understood to be negotiating to buy Vostochnaya Stevedoring, the SST company that controls Vostochniy Container Terminal, and to buy into container terminal developments in Novorossiysk and Ilyichevsk. Black outlook As previously reported (WorldCargo News, June 2006, p20), following capital regrouping, Novorossiysk Commercial Seaport (NMTP) is developing a new container ter minal under the NovorosLesPort (NLE) banner. Crucially, last December NMTP won a federal competition to be designated a major transport node (12 investment patterns estimated at a total of US$700M) and has contracted with the government to prepare the feasibility study. If that is accepted, the project will be eligible for state funding. Last year, NMTP’s corporate finance director Aleksandr Rybin revealed plans to authorise Morgan Stanley to issues bonds for US$200-400M in 2007-2008, to finance the $700M investment programme, which includes major new grain and fertiliser terminals and expansion of the timber berths as well as the new container terminal and on-dock intermodal yard. Rail deal struck The port’s rail approaches are today a bottleneck but, at the start of this month, NMTP and RZD signed a contract under which RZD will acquire a 165 stake in the port, with the option of increasing it to 33% in the longer term.While Russia’s grain traders and bulk shippers are concerned about RZD increasing its influence over export outlets, there is recognition that a tie-up between it and NMTP can deliver the rail access improvements that the port needs to become a true intermodal gateway. At present the rail haul beSafety, innovation and quality are the guiding principles of our business philosophy. 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FET’s vice president Aleksey Ivanov said the new routing, taking on average 45-50 days (40 by sea from Pusan to Arkhangelsk, up to five days for tween the Black Sea port and Moscow takes between five and 10 days and the goal is to cut the 1100 km trip to 1.5 days, supported by real-time train monitoring and container tracking. NMTP reckons that overall transit time from Shanghai to Moscow region over Novorossiysk can be cut to 28 days, compared to 37 via Saint Petersburg. Last December, RZD’s intermodal daughter Trans container started a new service on the Novorossiysk-Naberezhnye Chelny line, to cater for imported automotive component deliveries to the new Severstal-Avto plant. customs and other formalities and five more by rail to Izhevsk), will supplement the existing supply route via the TSR. “We chose Arkhangelsk because the container terminals in Saint Petersburg are always packed out with full containers,” said Ivanov. UAZ, another automobile plant in the remote Russian hinterland, has also shown interest in the project.Accordingly, FET has already made a pilot delivery of containerised Isuzu subassemblies from Yokohama to Ulyanovsk via Arkhangelsk. ❏ Block trains to Moscow and Kazakhstan will reportedly be added this year. Container traffic at NLE increased 10% last year to 61,500 TEU. The first stage of the new ter minal, with a capacity of 110,000 TEU, is scheduled to come on stream in the fourth quarter of this year. ZPMC has begun assembling the two shipto-shore cranes and the two RTGs and single RMG (for the IY) ordered for phase 1. As previously reported, on build-out the terminal will be able to receive ships up to 13.6m draft, at berths of 304m and 262m length. ❏ Focus on new car traffic While OMG’s new Onega terminal is the first car import operation in Saint Petersburg (WorldCargo News, Decmeber 2006, p23) transit via Finnish ports is likely to predominate for a considerable time and, as also previously reported, the Port of Sillamae (Silport) in Estonia is getting in on the act. Port operator Silsteve hopes to to build volume gradually to 6000 vehicles/month.” Silport can accommodate two “Baltimax” ro-ro ships simultaneously and this, it claims, gives it an advantage over the Finnish ports of Hanko, Kotka and Turku that cur rently account for about 500,000 cars imported by Russia each year. Furthermore, road checkpoints on the Finnish-Russian border are nearing the limit of their capacity and trucks are subject to time windows. Turku expansion The Port of Turku has begun expansion work of the Pansio harbour area to cater for more automobile imports, both for the Finnish market and for transit traffic for Russia. An area in the train ferry harbour will be upgraded from gravel surface to asphalt to allow open storage of up to 3000 cars and haulaway loading facilities are being improved.The work will be completed by this autumn. In the Late area of Pansio, a 60,000 m2 land parcel, which can be extended to 70,000 m2 if required, will be prepared for car import operations. New fences will be erected, along with security lighting and security gates. An engineering workshop is already located on the site and could easily be equipped with PDI facilities.The work programme is costed at €1.5M and should be completed by 2008. Another 40,000 m2 can be made available at the site after 2010. Cars in SECUs Volvo is now taking advantage of backhaul shipments of StoraEnso SECUs, which otherwise would be moved empty, to ship both Belgian- and Swedish-built automobiles to Russia, via the Finnish Port of Kotka. The Port of Gothenburg serves StoraEnso as both the gate for its The expansion of Turku’s Pansio Harbour is aimed at imports of cars for Russia as well as the domestic Finnish market Swedish exports and the tranbshipment hub for its southern Finnish exports moved out of Kotka. On the return legs, some of the SECUs are now loaded with cars, two in each SECU and, according to the Port of Gothenburg, about 7000 cars are expected to be shipped to Russia, using Kotka as the transit port. Cobelfret is responsible for filling the space not used by StoraEnso base cargo on the Gothenburg-ZeebruggeGothenburg leg. The company now has the same role that was previously car r ied out by Lindholm Shipping for the KotkaGothenburg-Kotka link. Wallhamn boost Finally, UECC is starting a new shortsea/feeder service for cars linking Zeebrugge with Malmø, Wallhamn, Fredericia, Emden and Sheerness. In another boost for Wallhamn AB, the port has been confirmed by Eukor Car Carriers, Inc as the transhipment hub not just for Sweden and Norway, but now also for Denmark. Wallhamn AB is Sweden’s first and only privately-owned general cargo port, being owned 25% each by Eukor, Sweden Transport & Logistic Shipping, Gr imaldi Compagnia Navigazione and Grimaldi Maritime Agencies Sweden. Car imports from Hyundai/ Kia in South Korea represent the bulk of its handling activities. ❏ February 2007 Section 8 24/2/07 11:01 am Page 33 Trust. Strength. Performance. True Quality. 1977-2007 30 years of True Quality True Quality. When talking about forklifts and efficient material handling, which includes heavy lifts, one speaks much about quality. When we speak about material handling we mean a complete concept in which the forklift plays a very important part of the process. The continuous co-operation between Svetruck and our customers builds a long term relationship and is the foundation for a quality product. A strong and reliable partner is what counts for a Svetruck forklift owner. 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 True Quality Section 8 2/3/07 4:54 pm Page 34 WorldCargo news FRANCE: PORT DEVELOPMENT Serving up a mixed bag of results If 2006 was a banner year for any French seaport, it was Dunkirk, where throughput rose by 6% to a new record of 56.65 mt. Dry bulks notched 28 mt, with iron ore traffic growing 4% to 13.6 mt and coal traffic increasing by 15% to break through the 10 mtpa barrier for the first time. Most heavy bulk is handled at the Western Bulk Terminal (TPO).Traffic here rose by 19% to a record 10.1 mt. The future of the Arcelor steel mill in Dunkirk, now controlled Growth figures vary, but some key investments are being made in all France’s leading seaports by Mittal, seems secure, but more worrying for the port is the projected shutdown by 2010-2011 of the Lorraine steel-making industry in Eastern France, as it accounts for 2.5 mtpa of iron ore imports forwarded from the port by rail. Yet another record tumbled in respect of general cargo, with throughput increasing by 19% to 14.6 mt, largely impelled by a 25% increase in ro-ro traffic to 11.1 mt. In units, the figures were 530,000 trucks and unaccompanied trailers ( +27%) and 420,000 tourist cars ( +138%), while the passenger count touched 1.5M. To put these numbers in perspective, ferry traffic aggregated 7 mtpa at the beginning of the 1990s Within the framework of its development programme, La Rochelle Port Authority is calling for tenders regarding the creation of a new bulk terminal occupying a land area of 10 hectares and comprising a new 160m long quay, able to accommodate vessels up to 220m long, 70,000 DWT and 15m draught. The tender documents are available from the following address: Port Autonome de La Rochelle BP 2057 – 17010 LA ROCHELLE CEDEX 1 – France Contact Tél : +33 (0)5 46 00 53 64 E-mail : [email protected] (including the Dover rail freight ferry), before collapsing practically to zero when the Channel tunnel first opened at the end of the 1990s. But today, with three faster and bigger ro-pax ferries now deployed, Maersk’s affiliate Norfolkline is offering 12 sailings/day to Dover and back. Bilbao link delayed Norfolkline is spreading its wings. Together with Spanish interests, it came up with a project for a freight only, ro-ro link between Dunkirk and Bilbao (or Santander), which has qualified for EU support under the Marco Polo “sea motorways” programme. The scheme has been delayed, reportedly by a shortage of suitable tonnage. The ships need to be able to take 200 non-accompanied trailers, have a service speed of 21 knots to provide a 35h sailing time, and be robust and powerful enough to withstand the powerful winter storms in the Bay of Biscay. Start-up with two newbuildings costing in the region of €60M-70M apiece is now anticipated for some time in 2008. Lo-lo container traffic was practically unchanged last year at 206,000 TEU, but it was a year of transition, with the port authority (PAD) finally succeeding in reducing its stake in NFTIou from a reluctant 70% to just 9% when APM Terminals (APMT) and CMA-CGM agreed to buy respectively 61% and 30%. The concession lasts until 2034 and significant progress could well occur over time, even though Dunkirk is “squeezed” between Le Havre and the Rhine seaports, not to mention competition from Zeebrugge, where APMT has already invested heavily. There was an accident at NFTIou last year when a ship’s flared bow hit the leg of a crane and moved it along the rail, causing bending to the leg and sill beam. Portek Equipment was called in for inspection, analysis and repair. The damage was relatively minor and was confined to only one plane. As previously reported, PAD has invested €5M to electrify an internal rail link, the 8 km long Dunkirk, with TPO on the left and the NFTIou container terminal, in which APM Terminals and CMA-CGM are now the major shareholders (61% and 30%), on the opposite side of the basin. (Photo: PAD) Voie des Huttes, in order for complete iron ore block trains to be hauled from TPO to Lorraine steel customers without the cost and delay associated with switching to SNCF Fret’s electric locos at the Grande Synthe formation centre. PAD is now considering electrifying the rail link into the ondock railhead at NFTIou, on the other side of the dock basin to TPO, to eliminate the need for container block trains to be processed at Grande Synthe. This is a tempting prospect, especially with rail freight “newcomers” now very much in the picture in France. Big spend At some €45M, PAD’s planned investment spend for 2007 is the most important of recent years. Around half the amount is allocated to further improvements in the quality of port services, such as the Voie des Huttes and adding more backlands at the container and ro-ro terminals. Ro-ro ramp No 1 will be reconfigured to be able to handle Norfolkline’s new ships, so that there will be 100% redundancy in the event that ramp No 3 is not available.The landside rail of the gantry grab unloaders at TPO is to be replaced. The port is also investing in various pieces of new handling equipment, including two 40t harbour mobile cranes from Italgru Srl. In accordance with ISPS security norms, the Port Rapide area will be completely fenced off and a port-wide video surveillance system will be installed. Investment projects by third parties include a major new EdF gas terminal, estimated at €500M up to commissioning in 2011, which will be capable of receiving two 260,000 m3 LNG carriers simultaneously. In addition, a 200,000 m2, rail-connected distribution centre has just been commissioned by Bail Investissements and another one will follow soon. Locking on Total throughput at France’s biggest container port, Le Havre, was around 75 mt, practically unchanged from 2005. Liquid bulk (mainly crude oil, refined products) came to 46.2 mt, while general cargo totalled 23 mt.At 2.13M TEU, container traffic seems to have been at a “standstill,” but first half results were affected by maintenance work on one of the François Premier lock gates that restricted access for MSC’s biggest ships to the Quai Bougainville. The lock was in full service again in the second half, by when the first terminal at Port 2000, opened in April, was picking up strongly. It is now operating at a rhythm of 500,000 TEU/year.The port authority (PAH) says that fourth quarter throughput was double the level of 4Q/2005. Main stake The second terminal at Port 2000 (Porte Océane) is due to open this October.The new, lockless terminal complex is Le Havre’s main stake in its future as a container port and the second phase, comprising another six deep water berths, has been launched. Works are due to start in the second half of this year, with a view to completion in 2010.The operators are responsible for all the equipment. PAH has succeeded in “buying time” on the vexed question of who employs the crane drivers and maintenance crews. However, the operators themselves appear confident, with CMA-CGM and MSC each forecasting traffic of 1M TEU/year by 2010 and Maersk another 600,000 TEU. Within five years Port 2000 could be handling 2.6M TEU, more than the entire port today. Barge access Rail connectivity has already been improved and it is hoped that liberalisation and new operators will bring a recovery in rail traffic. Inland waterway distribution has continued to increase (+ 18% to the end of November 2006). As already reported (WorldCargo News, December 2006, p13), there is now a chance that the Port 2000 berths will get direct barge access, via a new lock and prolongation of the Grand Canal du Havre. Short term developments include a new sugar terminal from SHGT and a 40 hectare logistics park from Gazelay (part of WalMart). Other major investments include a new gas terminal at Antifer, a site located about 10 kms north of the port that currently handles oil tankers.This project is being put together by Gaz de Normandie, a joint venture of Poweo and CIM, and is going through its final permitting stages. 100 mt threshold For the first time since 1980, traffic at Marseilles, France’s biggest Rouen wants to start a €220M Seine deepening programme, to ensure sufficient depth for handymax vessels (up to 60,000 dwt) that are gradually taking over from handysize bulkers in world grain trades. (Photo: PAR/Rémi Hondier) Advanced Brake Technology for Container Handling CONTACT US FOR DETAILS Siegerland Bremsen · Auf der Stücke 1-5 · D-35708 Haiger, Germany Phone +49 2773 94000 · Fax +49 2773 940010 · Mail [email protected] · Web www.sibre.de Germany 34 China Belgium Malaysia Netherlands February 2007 Section 7 5/3/07 8:46 am Page 35 WorldCargo news FRANCE: PORT DEVELOPMENT Repairs to part of the François Premier lock slowed growth in Le Havre’s container traffic in the first half of 2006. (Photo: PAH) port, passed the “psychological threshold” of 100 mt, thanks to an overall increase of 3.5%. More than half the traffic is made up of crude oil and oil products, but they have been growing much slower than other sectors, such as containers, where growth averaged 3.9% to reach 950,000 TEU overall. Dry bulk traffic grew 5.4% to a record 16 mt, due mainly to a 25% increase in coal imports. A number of logistic and industry-related projects were announced last year that, on completion, could result in traffic increasing by up to 23 mtpa. Most of Fos Distriport is either occupied or reserved; only 32 hectares of the 182 hectare site remain available. Swiss-based Kühne & Nagel recently agreed to take a 20 hectare plot while Massilia Distrilogis is taking a 45 hectare parcel on which it will construct a 140,000 m2 distribution centre devoted to food products. In addition, a new Ikea distribution centre - the furniture maker’s third in France - should become operational in 2008. Investments by major industrial clients include a new liquid gas terminal being built by a 70:30 joint venture of Gaz de France and oil major Total, a biodiesel plant from Biocar, an ethanol production centre from Deulup-Seatank and several facilities for producing building materials, mainly from Lafarge-Vicat. Rack and Rouen Rouen logged a 6% increase in volume in 2006 to 23.3 mt, of which bulk accounted for 87% (20.3 mt).This is mostly liquid bulk but coal import volumes shot up 46% to 0.55 mt after Sea-Invest bought Sogema. Located at the heart of France’s “prairie belt,” Rouen is Europe’s leading port for grain exports and volume last year reached 6 mt. The 2006-7 season could well exceed this, as the prolonged drought in Australia could cut exports from there to China by more than half. Container traffic at Marseille-Fos increased to 950,000 TEU last year. (Photo: PAM) 2XL on the way The Fos 2XL programme reached an important stage last year with the finalisation of the financing plan. Of the total E206M investment required, E150M will come from the port authority (PAM) and the rest (all the handling equipment including 12 quayside cranes, operating systems, etc) from the selected terminal operators, Portsynergy and MSC). As in Le Havre, the “moot point” is whether the quayside crane drivers and maintenance crews are employees of PAM or the terminal operators. It is hoped to tie this up during the course of this year. The new terminal is slated to come on stream at the end of 2009. Between them the operators are committed to traffic levels of 1.2M TEU in the first full year, rising to 1.5M TEU/year thereafter. Thanks to the appearance of new operators such as Rail-Link, intermodal rail traffic in 2006 by rose 3% to 114,000 TEU. Traffic is forecast to rise to 127,000 TEU this year, due to projected new services and rail infrastructure improvements. More to be done Container barge traffic rose by 8.5% to 56,000 TEU, helped by volume-based rebate deals for operators Rhône Saône Conteneurs and Alcotrans, cuts in barges tariffs and infrastructure improvements that allow direct sailings between Fos and the Canal du Rhône, cutting 3h from sailing time. Nevertheless, volumes are still too modest in PAM’s view. Meanwhile, PAM has ordered a third 100t harbour mobile crane to help handle containers in the eastern harbour area. Due in service in the first half of 2007, the €3.23M acquisition follows a working party report that concluded that extra container handling equipment was a key priority in improving the eastern harbour area’s general cargo traffic performance. LDA for Dieppe Last December, Seine-Maritime regional government (DSM) let the contract for the Dieppe-Newhaven ferry service to Louis Dreyfus Armateurs (LDA). The service has been losing money for years and DSM decided to intervene directly when it became clear that 2006 losses would reach a massive €20M. In exchange for an annual subsidy of around €15M, LDA will provide two daily sailings in each direction in the winter months and three in the summer, using two (three) new ships with a capacity for 60 trailers/200 cars and up to 600 passengers. Last year the link accounted for 50,000 vehicles and 220,000 passengers, respectively double and triple the numbers carried four years ago. LDA also now operates the Portsmouth-Le Havre ferry service, after P&O Ferries withdrew its service and subsequent negotiations between the ports and Brittany Ferries failed. As previously reported (see WorldCargo News, November 2006, p4 for last report), new fast ferry jet carrier services (35 knots/h) are planned between a new hub in Boulogne and Drammen, Sheerness and Santander. A conventional, daily ro-pax service has been started by Celtic Link Ferries between Cherbourg and Portsmouth. ❏ February 2007 35 Section 7 24/2/07 10:54 am Page 36 WorldCargo news Quendorfer Straße 34 . D-48465 Schüttorf . Phone: +49 - 59 23 - 81 - 0 . Fax: +49 - 59 23 - 81 - 100 . [email protected] . www.stemmann.de Rouen provides a draft of 10.3m outbound and 10.7m inbound, but its tidal windows are simply not big enough for 60,000 dwt handymaxes that are taking over in world grain trades from the older, 40,000 dwt handysizers that exporters over Rouen depend on. Martine Bonny, the port authority (PAR)’s director general (the only woman ever to occupy top position in a port autonome), has initiated studies for a €220M dredging programme to guarantee an extra 1m of draft inbound and outbound. It is hoped to start this in 2010, for completion in FRANCE: PORT DEVELOPMENT/INLAND 2013.This is the only way, she argues, that Rouen can maintain its pre-eminence in grain trades. Investments last year by PAR included three 40t harbour mobile cranes from Italgru, for handling forest products (the other sector where Rouen leads in France) and various bulks. A twin 20 spreader has been ordered for an existing container crane and a new hip-to-shore container crane with twin 20 spreader is being ordered from Kalmar. The container quay at Grand-Couronne is being lengthened from 900m to 1100m and the CY is being enlarged by 20,000 m2. The port’s niche is north/ south container trades up to about 2500 TEU ship scale, where its own limitations are matched by those in southern ports. It sees itself as complementary to Le Havre, which caters for mega-carrier trades. In 2005 Marfret initiated a “fluvio-feeder” service between Rouen and Le Havre using 100 TEU barges and last year frequency was stepped up to daily in each direction. Another two 5000 m2 distribution centres will built this year at the Rouen Vallée de Seine logistics park, where CFS, container logistic and supply chain services Energy- and Data Transfer for Mobile Equipment Motor cable reel Cable trolley Slipring assembly Always live! are available Reflecting the growing demand for biodiesel fuel, an ethanol plant is to be built by Tereos, while Saipol is expanding biodiesel production by 50%. Véolia-Environnement is building a motor oil recycling facility. Fastest growth Nantes-Saint Nazaire experienced the most growth last year, with traffic rising to a record 34.5 mt, making it the fourth biggest French port. Growth rates in the past three years have outstripped those of the other ports autonomes by a factor of almost two. At 24.8 mt, energy traffic (oil, liquid gas and coal) were off by 1.1%. Other cargoes notched a 2.2% increase, with spectacular gains in exports of animal feedstuffs ( +65%) and scrap metal (by almost 100%) offset by a sharp fall (-26.5%) in forest products traffic, the port’s historic niche. This reflects structural changes in the market. Producers no longer ship logs to France, but process the wood themselves for added-value and ship swan timber in containers, cutting Nantes out. However, 120,000 tpa of French timber products are exported in containers from the Montoir terminal in Saint Nazaire. The new ship-to-shore gantry crane from Konecranes (the fourth crane at Montoir) entered service last October. Valued at €7.8M, it was funded 30% by the port authority (PAN) and 70% by French and European support funds. Container traffic grew 5.7% last year, to 130,000 TEU. In total some €10M is being spent by PAN between 2006 and 2008 to provide more space and improve the layout at the Montoir distri-park. Only 16 hectares are being added to the 120 hectare facility (which has potential for 350,000 m2 of distribution warehousing), but that should make it easier to market. PAN has also updated its IT systems covering customs and other port community purposes, using the Soget-Agif+ and A-DN+ platforms. Ro-ro steady Fibre optic rotary connector STEMMANN-TECHNIK GMBH Visit us at TOC 2007 A S I A in Hong Kong, stand F14, 13 - 15 March 2007. In spite of the winding up of the Sheerness service, ro-ro traffic increased by 1.1%, thanks to increases in import of new cars from Peugeot Citroën’s Vigo plant in northern Spain, carried by Spanish operator Transmediterranea. The Montoir-Bilbao “Sea Motorways” project is still on the drawing board. The scope is am- Container barge traffic has risen sharply over Marseille-Fos, but the port thinks there is still considerable untapped potential. (Photo: PAM) bitious, but is of the scale needed to provide truck-like frequency: six ro-ros each able to carry 230 unaccompanied trailers would be deployed to provide three daily departures each way, with traffic eventually rising to 300,000 trailers/year - a major decongestant for the Pyrenees axis. PAN’s biggest project, a completely new terminal at DongesEst costed at €65M, obtained public works approvals last October. Slated for completion in 2011, it will boast a 500m long quay with a depth of 12m alongside and 50 hectares of backlands. Elsewhere in the port, Gaz de France is gradually increasing capacity of its LNG terminal from 10B m3 to 16B m3 and will build a gas-fired power plant.A used tyre recycling plant is also being set up. A leg up As previously reported, La Rochelle-La Pallice was elevated to the status of port autonome at the start of 2006. With a throughput of 7.3 mt in 2006 ( +6.4%), in tonnage terms the port is the smallest of the ports of “national importance.” Cereals traffic increased 9.1% to 2.5 mt, with sand volumes up 19% to 0.8 mt and oil business steady at 2.5 mt. Last year saw the adoption of a 7-year investment programme valued at €50.5M.The main plank, at about €36M (half of which is for the provision of a second berth), is a new dry bulk/general cargo terminal at Anse Saint-Marc, where industry is already planning new fertiliser and cement plants (Atena and Cemeroc respectively). Another €5M will be spent on deepening the access channel. The port obtained ISPS certification last December. The capital investment in gate control sys- tems and other security measures between 2005 and 2007 is put at €2M and annual running costs are around €300,000. Finally, a waste recycling centre for the region is to be built in the port zone. Rail shuttle All French ports are now responsible for managing their internal rail connections, but Bordeaux-Le Verdon went one stage further when it introduced its own container shuttle train between the deep water terminal at Le Verdon and the upstream facilities in Bordeaux alongside the Gironde.Volume remains modest but is growing steadily ( +8.6% in 2006). Throughput at le Verdon hit a record of almost 55,000 TEU last year and CMA-CGM has just introduced a faster and bigger ship (1100 TEU instead of 420 TEU) into its Arc Atlantique service. (Le Verdon-Montoir-Le Havre-Dunkirk-La Rochelle), while MSC has also deployed a bigger ship, 1830 TEU instead of 1530 TEU) into its Biscaye Relay Service (Le Havre-Montoir-Le Verdon-Bilbao). The port’s overall traffic, however, was off 5.4% at 8.2 mt, due mainly to a reduction in oil traffic, which accounts for 45% of overall throughput. A Canadian company has begun prospecting for oil offshore. Cereals traffic was also down, by 6.5% to 1.2 mt. Pulp paper exports declined by 37.5%, as a result of Smurfit’s local paper mill (that is fed by the Landes region forest) switching its exports to Spain instead of the UK, so the cargo now moves by truck instead of ship. On the plus side, this year Lafarge will start importing slag and clinker for its new treatment plant and more biodiesel is being exported by Saipol. ❏ Sibelit, Sideros hit the rails A new international rail freight operating company, Sibelit, has been formed by the traditional rail companies on the Antwerp-BasleLyons axis. Sibelit is co-owned by SNCF 4.25%), SNCB (42.5%), CFL (10%) and CFF (5%). The axis already accounts for some 11 mtpa of rail freight, mainly on the Basle line (7.2 mt), and traffic is expected to grow by around 60% by 2012, mainly on the Lyons branch. Sibelit is counting on complete interoperability of crews and equipment, without border delays, on 500 km long routes. It has its own drivers and a fleet of 47 multi-current locos, and will buy paths directly from the infrastructure managers.Train crew productivity is already reckoned to be 30% above the SNCB average and 50% above the SNCF average. Since Sibelit came into being last autumn, the punctuality of trains has risen notably, with a 94% “on time” record claimed on the Antwerp-Basle line. Reliability is expected to improve still further when ERTMS is installed, although that is still several years off. In another move, SNCF and 36 SNCB have reached an agreement to set up a 50:50 joint venture, Sideros, to focus on the requirements of the steel industry. Sideros is expected to “enter the ring” during the course of this year, once all the necessary national and European authorisations have been obtained. Sideros will have its own park of wagons for iron ore, scrap metals, steel tubes, coils, slabs, plate, sheet, etc. In principle, it will buy traction services from its mother companies, but, taking advantage of rail liberalisation, it reportedly retains the freedom to buy traction from third parties for quality or logistic reasons, as required. SNCF and SNCB both have considerable exper ience and know-how in the iron and steel sector and, if they can put that together successfully, Sideros could be a considerable force, developing classic wagon and intermodal services. Presently, the combined annual turnover of SNCF Fret and B-Cargo in the iron and steel market is around €450M and Sideros aims to increase this to €500M by 2010. ❏ February 2007 Section 6 1/3/07 16:59 Page 37 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 6 1/3/07 17:04 Page 38 2007 “TOC Europe is a brilliant event. Perfect – the best we’ve ever exhibited in." Anders Flensborg, Business Development Manager, Embarcadero Systems Corporation 19-21 June 2007 TUYAP Fair and Congress Centre Istanbul, Turkey THE SHIPPING PORTS AND TERMINALS EVENT FOR EUROPE TOC2007 Europe is now recognised as the essential meeting place for port equipment manufacturers and service providers to meet terminal operators and ports. If your company is seeking a platform for promotion in Europe, contact us for more information about exhibiting and sponsorship opportunities. TOC2007 Europe: • International Exhibition • Senior level high-quality 3-day Conference • Networking receptions • World renowned speaker panel and steering committee “We wouldn’t miss TOC Europe for the world, as it enables us to make so many new business contacts every year.” Kiran Jethwa, Director, Product Management, Navis Email: [email protected] Tel: +44 (0)20 7017 4379 Web: www.toc-events.com Organised by Primary Sponsor Supported by TOC Events Worldwide Established since 1976 TOC Americas TOC Asia TOC Europe Section 6 1/3/07 17:07 Page 39 WorldCargo news FRANCE: INTERMODAL Shipping major takes a grip on inland distribution When, in 1996, Jacques Saade, the founder of CMA, a medium-sized shipping line, took over CGM from the state, few people would have thought that within 10 years the combined CMA-CGM would be the world’s third largest container carrier. In 2005 the company transported more than 5M TEU and the 2006 results, which incorporate Delmas, show a record turnover of €6.8B, with net profits rising to €466.8M.This is the result of an audacious policy of investment in larger and more efficient ships. Between now and 2010, 70 more new ships will be delivered, including eight with a nominal capacity of 11,400 TEU. In a bid to improve a better quality of service, for the past three years the line has been buying into terminal operations, in some cases taking a controlling interest, through a specially-created affiliate, Terminal Link, in France (Le Havre, Fos and Dunkirk) and abroad (Zeebrugge, Antwerp, Tangiers, Lomé and Mobile). Own road, rail and inland waterway transport are all part of CMA-CGM’s offer The first application of the new agreement occurred last December, with the start of a new service between Marseilles and Ludwigshafen. RLE’s president Alain Wils is confident that other services can be developed, linking different ports in Europe with o/d points in Germany, Central Europe and even Spain. Rail-Link accounted for 55,000 TEU of shipments in 2006 and, with the new agreement withVéolia, the target for 2007 is 130,000 TEU, or 22 trains/week, about half of which will run outside France. Agreements have been made with shippers and forwarders is several countries, including China, Algeria and Morocco. Nature abhors a vacuum Rail-Link and other new entrants have generally been welcomed by the ports, to fill the void created when CNC Transports cancelled so many services as part of SNCF Fret’s cost-cutting drive. Last year, the intermodal rail RSC River Shuttle Containers is active on the Seine and Rhône. (Photo: CMA-CGM) share of inland distribution over Le Havre, France’s biggest container port, was only 5%, with inland water mode increasing to 8% and road to 87%. Finally, on the shipping side, CMA CGM has just teamed up with Coscon to launch a new Asia-West Mediterranean service, Five Coscon and two CMA- Own roof In addition, a new marketing strategy has been unveiled, offering customers an integrated, door-to-door solution without relying on third parties for overland transports.Three dedicated affiliates have been set up to cover all inland modes - River Shuttle Containers (RSC), Rail-Link and, for road distribution, Naxco Logistics. A strong push has been given to RSC, because of its environmental credentials. Its Rhône corridor fleet has been increased to four 132 TEU barges, providing a weekly capacity of 1320 TEU over Fos. On the Seine, RSC’s Par is (Gennevilliers)-Le Havre service has a capacity for 800 TEU/week. In 2006, RSC transported 50,000 TEU and 20,000 TEU respectively on the Rhône (mainly Fos-Lyon) and Seine waterways. To ensure total coverage, RSC operates its own road fleet with around 25 vehicles and can also call on Naxco for collection and delivery services.The Naxco fleet currently comprises 200 tractors and 400 chassis, and it has agencies in Fos, Lyon, Marseilles, Dunkirk and Le Havre. HD Crawler Cranes • Crawler Cranes • Handling Machines • Telescopic Cranes • Harbour Cranes • Truck Cranes • Multihandler the new dimension of port handling Véolia tie-up On the rail side, CMA-CGM made a bid, through Rail-Link, for Naviland Cargo (CNC Transports).That was turned down by SNCF Fret and Rail Link instead has teamed up withVéolia Transport (the first private rail operator authorised on the French network) to develop new intermodal services, not just in France but throughout Europe. This partnership has been concretised with the formation of two new companies. Rail Link Europe (RLE), in which Rail-Link has a 51% stake, is responsible for organising and marketing combined transport services between the ports and the origin/destination point of the containers.Véolia Cargo Link, in whichVéolia has a 51% stake, is responsible for laying on the wagons (and sometimes the traction). It is expected to account for 50% of RLE’s rail shipments. New operators such as Rail-Link have generally been welcomed by the French ports, especially since CNC Transports withdrew so many Naviland Cargo services. (Photo: ibid) SENNEBOGEN 6180 HMC 100 t 470 kW Leading through Innovation www.sennebogen.com SENNEBOGEN Maschinenfabrik GmbH • Hebbelstrasse 30 • D-94315 Straubing • Tel.: +49 (0) 9421/540-146 • Fax: +49 (0) 9421/ 43882 • e-Mail: [email protected] February 2007 39 Section 6 6/3/07 2:50 pm Page 40 WorldCargo news CGM ships, of 3500-4000 TEU capacity, will be deployed in the MEX II service, calling Qingdao, Shanghaï, Hong-Kong, Shekou, Singapore, Port Kelang, Naples, Genoa, Barcelona, Valencia, Port Kelang, Singapore, Hong-Kong and back to Qingdao. CMA-CGM says the service will offer unbeatable transit time to Italy and Spain, connecting Hong Kong with Naples in 17 days, Shanghaï with Genoa in 21 days and Shanghaï with Barcelona in 23 days. CMA-CGM is also launching of a new service linking South America with the Arabian Gulf, the Red Sea, India and South Africa. Eight 1700 TEU vessels, each with 350 reefer plugs, will be deployed in the weekly Vasco Express service. The rotation is Rio de Janeiro, Santos, Paranaguà, Itajai, Rio Grande do Sul, Salalah, Khorfakkan, Nhava Sheva, Port Louis, Durban and back Rio de Janeiro, with competitive transit times (eg 20 days between Rio Grande and Khorfakkan). Salalah will serve as the hub for the Red Sea market, using dedicated CMA CGM feeder ships. ❏ FRANCE: INTERMODAL Grand waterway scheme moves forward For the first time since the 1960s, France is investing in a large scale, inland waterway project. Slated to be operational in 2015, the SeineNord-Europe canal will provide an artery that will form a key par t of the transeuropean transport network for freight envisaged for 2020. The project passed an important milestone last November, when the scoping studies carried out by Voie Navigables de France (VNF) won the approval of Dominique Perben, France’s transport minister. That opened the way for the public inquiry. It began in midJanuary and is expected to last two months. It should be followed at the end of this year by the declaration of public interest (utilité publique), and that will allow actual works to begin in 2009. 13-15 mtpa By 2020, it is forecast, the canal will be able to cater for 13-15 mtpa of freight, the equivalent of 500,000 lorry trips and 4.5 btkms The broad scale Seine-Nord-Europe network will brings opportunities and challenges to the Seine seaports. (Picture:VNF) by road, thus making not only a significant contribution to the diminution of road congestion, but also reducing CO2 emissions by up to 280,000t. The prognosis for 2050 is 20-27 mtpa (2M lorries, 570,000t CO2 ). Project cost is estimated in ex- cess of €3B and the financing has yet to be sorted, but the option of what, for France, would be a novelty in major infrastructure projects, a public/private partnership as opposed to purely public financing, is being studied. Canal tolls have not yet been set, but a benchmark figure of €1.75/t has been used in the calculations. Falls up to 30m To give an idea of the scale of the works, the 106 km long canal will have an overall surface width of 54m, a water depth of 4.5m and bridge clearance height of 7m, and it requires seven locks measuring 195m long by 12.5m wide catering for falls of between 6m and 30m. There will be three water bridges, 59 rail or road bridges, five cereals load-out quays and two other cargo shipment quays. It will provide what is today the “missing link” in a waterway system to rival the Rhine-Main/ Meuse in importance, enabling 4400t barges and push convoys to sail all the way between Le Havre/Rouen and, via Paris, Dunkirk and the Rhine seaports. It is thought that the canal will stimulate competition between the ports all-round and lead to better overall service for port users. There is also a view, however, that it will make Antwerp even more competitive for Paris region cargo than it is today, at the further expense of the Seine seaports. Pierre Hanon, chairman of the Rouen Port Operators’ Association (UPR) has expressed concern about this and port chairman Ghislain de Boisseau has commissioned an internal study to examine the canal’s impact.The Le Havre port community has also been somewhat ambivalent, but the port’s director general Jean-Marc Lacave sees opportunities for the port to strengthen its position in the Oise basin region. Rediscovery Stimulated by environmental concerns and rising road transport costs, France has “rediscovered” that it has waterways. Freight traffic on the waterways managed by VNF has been growing steadily, despite the disparate nature of the network and its poor connectivity. Traffic rose by an average of 3.3% between 1997 and 2006 and last year it increased 8.5% on 2005, to reach 66.5 mt. River traffic increased by 4.7% to 62.3 mt, while river-sea traffic, mainly on the Seine and Rhône axes, increased by a spectacular 31.4%, to 4.2 mt. At the same time, national road freight volumes increased by just 1.4% last year, while rail dropped another 1.7%. Last year the state allocated VNF an investment budget of €162M, an increase of 40% on 2005, so things are definitely looking up. Metals traffic (+ 13.1%), particularly steel scrap, has been a key driver on the waterways, thanks largely to demand from Chinese steel makers and rising prices for iron ore (up 19% last year) that have encouraged a switch to recycling. Scrap is a “natural” for the waterways and this traffic in the Moselle basin, the heart of the Lorraine steel industry in eastern France, went up by 15%. The Port of Paris Authority (PAP) has also pointed to a sharp rise in scrap handled over the quays at Bonneuil and Gennevilliers and says that logistic companies specialising in the steel sector are turning more to water. Shipments of aggregates and sand for the construction industry, also traditional cargoes for the waterways, increased by around 7.5% across the network. Higher value But what is most interesting, says VNF president François Bordry, is that higher value cargoes are starting to make a real impact, with container traffic, again mainly on the Seine and Rhône, increasing by 7.8%. As regards Seine-NordEurope,VNF’s middle range forecast is that containers, project cargoes and ro-ro could account for as much as 17% of the traffic by 2020, in tkm terms. Figures from PAP show a 7.1% increase in 2006 in all river freight in Ile-de-France to 22.256 mt, with the container segment growing by 8.2% to 79,769 TEU, following a 41.4% increase in 2005 to 73,694 TEU.All container traffic over PAP installations, including road and rail modes, reached 250,352 TEU in 2006. Strasbourg’s (PAS) figures are outwith the remit of VNF as it is a Rhine river port. Its overall traffic last year was about the same as in 2005, at 8.4 mt, but waterborne traffic was down due to low water in the first quarter, particularly affecting agribulks (-11%) and oil products (-6%). Rail was the main beneficiary, with the figure of 1.8 mt being the best in five years. Container traffic increased by 23% to 225,000 TEU, with road shipments accounting for 131,000 TEU, followed by river barge traffic at 78,000 TEU, the balance being rail mode. The port’s Nord container terminal is being extended this year. Other developments include a new logistics centre being set up by Sté Parkridge on an 8.3 hectare site. PAS’s president Robert Grossmann is aiming to finalise this year the port’s “Port 2020” project, aimed at defining its development strategies and goals for the coming years. ❏ Europorte 2 gets own locos Eurotunnel has acquired, for around €2.9M, five Class 92 locomotives to develop cross-Channel rail freight through its subsidiary, Europorte 2, which is licensed to operate on the French network. The multi-current electric locomotives, built in the UK between 1993 and 1996 by Brush (now part of Bombardier) will, following a major service, join Eurotunnel’s existing fleet of 57 shuttle pulling locomotives. “It is our aim to contribute to the development of cross-Channel rail freight through Europorte 40 2,” said Jacques Gounon, chairman of Eurotunnel and Europorte 2. “We will implement a project that had not previously been brought to fruition and offer a simple and efficient service to cross-Channel customers.” As previously reported, the route from the tunnel mouth at Fréthun to Mouscron, on the border with Belgium, is cleared for 9ft 6in containers, providing a C90 swap body corridor as far as Switzerland, via Belgium and Germany, to London via the fast link in Kent (once completed). ❏ February 2007 Section 5 1/3/07 3:55 pm Page 41 WorldCargo news PORT DEVELOPMENT Having to run in order to stand still In the past few years,Vietnamese container traffic has grown strongly, due to increased inflows of foreign direct investment and the country’s recently secured membership of the World Trade Organisation is likely to accelerate trade growth more. The economy is forecast to grow by 8% annually for the next 10 years and that could easily lead to a doubling of container traffic within the next five years. Last year the country’s ports handled 2.7M TEU and, although intra-Asia volumes remain dominant, exports to Europe and the USA have been growing at a faster rate than Asian volumes. V for VICT Developments are continuing apace in Vietnam, but a new report highlights the challenges as well as the opportunities phase becoming operational in 2009. When both phases come on stream, says PSAI, the terminal will have an annual capacity of 2M TEU. Out of the depths At present no Vietnamese port can cater for ships above 1600 TEU and the new deep water initiatives are sorely needed. A new report just published jointly by Frost & Sullivan, NOL, APL and APL Logistics, says that trade growth is testing infrastructure to its limits. Vietnam Transportation and Logistics: Challenges and Opportunities highlights the potential ofVietnam as one of the world’s fastest-growing sourcing and manufacturing locations. However, to cope with this expansion,Vietnam needs to address several major challenges such as improving its infrastructure and systems for transportation and logistics. Launching the report in HCMC last month, NOL group president and CEO Dr Thomas Held, said:“We hope this paper contributes to a better global understanding of Vietnam, and helps our customers navigate their way to opportunities in this exciting country...[which] has the potential to become a global trading power and a leading Asian logistics and shipping hub. But with great opportunities come great challenges.” However, he continued, development must be supported and facilitated by cargo handling facilities and related infrastruc- ture of international standard. Otherwise, inefficiency, high costs and congestion could become a painful reality.” Logistics concerns The report also focuses on weaknesses in Vietnam’s logistics industry. Logistics outsourcing is nascent and highly fragmented with around 800 operators, which are mainly small local operators with limited coverage, service ranges and IT capabilities. In particular, the report highlights the importance, weaknesses and opportunities of the cold chain. Produce, particularly seafood, rice and coffee, accounts for a massive 30% of the country’s GDP. The report adds that the government is introducing measures to improve logistics infrastructure with the participation of international operators. ❏ Facilities in Ho Chi Minh City (HCMC) account for more than 70% of the country’s container throughput and efforts are being made to improve them. In a US$15M project, the quay wall at Vietnam International Container Terminals (VICT) is to be lengthened by 192m to 678m, to provide simultaneous berthing for four vessels.The move should increase annual capacity from 550,000 TEU to 900,000 TEU by next year. There will be more investment in cranes, reach stackers and reefer plugs, said VICT chairman Truong Quoc Hung. Traffic at VICT, Vietnam’s first purposebuilt container terminal, has increased from under 50,000 TEU in 1999, its first full year of operation, to about 450,000 TEU last year. HCMC, like Hanoi, is facing serious congestion issues, but at least the VICT terminal is linked to the 8-lane Saigon-South Parkway. It provides a full range of services, including depot and repair, CFS, warehousing and trucking. “VICT has become one of the great success stories of this fast growing nation,” said Cedric Foo, deputy chairman of First Logistics Development Company, which owns and operates the terminal. VICT’s main shareholders are Southern Waterway Transportation Company of Vietnam and Mitorient Enterprise, which is coowned by Singapore’s Neptune Orient Lines (NOL) and Japan’s Mitsui & Co. Last month, NOL set up a wholly-owned subsidiary,APL-NOLVietnam, to provide container transportation and logistics services in Vietnam, the first Singaporebased company to do so. The company has more than 140 staff across Vietnam, with offices in Ho Chi Minh City, Hanoi, Haiphong and Danang. Since 1991 NOL subsidiaries APL and APL Logistics had provided these services in association with Vietfracht. APL has five weekly sailings from Vietnam and APL Logistics operates more than 30,000 m2 of warehousing space. New Hutchison deal In a new development, Hutchison Port Holdings (HPH) has announced an agreement with Saigon Investment Construction & Commerce Company Limited (SICC), to construct, develop and operate jointly a new container terminal at a greenfield site in Ba Ria Vung Tau Province, under a 50-year concession. Saigon International Terminals Vietnam Ltd is situated in the Cai Mep and Thi Vai area of Ba Ria Vung Tau and has existing road links to manufacturing centres. The new container terminal is expected to come on stream in 2011. It will have a quay length of 730m with depth alongside of 14m and a total yard area of 33 hectares. Meanwhile, SP-PSA International Port Co Ltd (SP-PSA), a joint venture of Saigon Port and PSA Vietnam Pte Ltd, has been granted the investment license to develop a new container port project in Vietnam’s Vung Tau province. As previously reported (WorldCargo News, September 2006, p17), the facility is one of three joint ventures involving Saigon Port and foreign container terminal operators sanctioned by the Vietnamese government for the Cai Mep-Thi Vai port complex, the others being with SSA Marine and DP World. All the facilities will be located near the mouth of the Cai Mep-Thi Vai river and equipped to handle large vessels at deep water berths.The SP-PSA terminal will be developed in two phases, with first February 2007 41 Section 5 2/3/07 3:14 pm Page 42 WorldCargo news CARGO HANDLING Spreader makers take stock The spreader market was strong last year and manufacturers report record results. Bromma Group says that 2006 was the “most successful year in its history,” in which it posted orders for more than 900 telescopic crane spreaders, not including ancillary equipment such as rotators. It says that the figure “represents more crane spreaders sold than all of Bromma’s spreader competitors combined.” Other manufacturers do not want to disclose numbers, but Ram says that its performance in 2006 was “better than planned.” A good indicator is that for 2006 Ram’s parent NSL Engineering recorded a 32% increase in sales to S$65.5M by its engineering division, which now comprises only the Ram spreader business. China plant NSL noted that the sharp rise was due to “increased delivery of its products” that was achieved with the help of additional capacity at Ram’s new Changshu plant in China. Ram added that strong A spreader with radiation scanners is now on the market but keeping up with demand has held up R&D work on several other projects growth was recorded with the CentreSpread expanding twinlift and in all its electric spreaders. OEM competition Spreader manufacturers are facing increasing competition from crane manufacturers in some sectors. Noell, for example, has announced a new line of straddle carrier spreaders, including its own separating twinlift design. Many terminals now order “standard” RTGs from ZPMC that are normally fitted with its spreader and they only consider a “specialist” supplier for replacements. ZPMC says it has produced around 1600 spreaders since 1992, including twinlift versions and special options like rotating units and its own unique system with a sheave-dr iven pump for the spreader hydraulics. Spreader makers compete strongly in China and ZPMC remains one of Bromma’s key clients, in particular. In 2006 Bromma secured major orders for its most popular spreader, the STS45, in China, including 15 units from a customer in Shenzhen, 16 units for Nansha and 12 units to Dalian, all for spreaders on ZPMC cranes. Bromma also booked eight STS45s for new SPMP cranes atYangshan.Another big contract came from Dachan Bay, for 15 separating twinlifts and 14 single lift spreaders. Bromma says it is investing significantly in the Asian market, where it recently acquired the remaining 25% equity in Bromma Far East Pte Ltd (Singapore) from Portek International Ltd, giving Bromma 100% ownership. PerAnders Holstrom, Bromma’s president, said that the deal, along with capacity expansion at Ipoh and a new customer service and support office in Shanghai,“are all elements in our growing commitment to the dynamic Asia region.” The Chinese market is the fastest-growing (although that might soon change as cranes are ordered for a host of new terminals in Vietnam), and China presents several challenges for spreader manufactures. Ports developing new berths including Shanghai,Yantian, Dachan Bay, Nansha and Mawan have twin 40ft cranes in operation or on order, all from ZPMC. As previously reported,Yantian is testing twin 40ft systems from both Bromma and RAM, but at the other terminals ZPMC appears to have very much the inside track. Meanwhile, Reggiane Crane & Plants, a sister company of Noell in Fantuzzi group, says it has developed a Tandem Lift VDL CONTAINERSYSTEMEN B.V. It pays to buy reliability Tandem lifting from both Ram (above) and Bromma has been tested inYantian, but ZPMC is doing most of the running on this in China. Meanwhile, another crane maker, Reggiane, says it has developed its own Tandem Lift design ship-to-shore crane. “Our design allows spreader one and spreader two to operate in an independent way,” says a company spokesman. “The machine has been engineered to increase the cycle speed and operations for the mega containerships.” Quadruple 40fts? The pace at which ZPMC is getting customers for its dual hoist twin 40ft crane concept is starting to mirror that of port development itself in parts of China. In Shenzhen twin 40ft cranes have become a marketing point in competition between terminals in the west and the east. Yantian is taking delivery of no less than 19 twin hoist units but, in terms of crane capacity, was outdone earlier this month when Shenzhen Mawan terminal took delivery of a ZPMC crane with 120t capacity at 65m and triple 40ft handling capacity. The crane is equipped with three ZPMC twin twenty spreaders and can lift six 20fts in a single lift (see also p1). What ZPMC has done with this latest variation on the twin 40ft concept is taken the split headblock approach to twin 40ft handling and married it to its dual hoist concept. The landside headblock is the same as or similar to that used on the Dubai cranes, while the waterside headblock uses a scissor system to spread the headblock between the sheaves - similar to the concept that has been developed by Stinis, Bromma and Ram for single hoist cranes.The scissor headblock controls the spacing between the two containers under the seaside hoist system, while cylinders connect and position the two headblocks against each other. The logical next step from a dual hoist crane with one split headblock would be a dual hoist crane with two split headblocks to give 4 x 40ft lifting capacity. There may be all sorts of practical problems spotting four containers simultaneously and then landing them on chassis, but from a crane perspective four 40ft containers could be lifted together. Spread to the yard Industrieweg 21, 5527 AJ Hapert, The Netherlands Tel. +31 (0)497 387050, Fax. +31 (0)497 386855 [email protected] - www.vdlcontainersystemen.com While the quayside focus in on twin 40ft container handling, twin 20ft spreaders are gradually becoming more prevalent on yard equipment. In the US, the Port of Charleston purchased 16 Ram 2640 twinlift RTG spreaders for use on its Konecranes RTGs last year. The Georgia Port Authority is adopting twinlift yard operations at Savannah and has ordered 15 Bromma Marathon twinlift RTG spreaders at a cost of US$1.5M. Other terminals to order twinlift yard crane spreaders from Bromma last year include Marítima Valenciana, DPW Jebel Ali, APMT in Los Angeles, TdS Málaga and operators in Jeddah and Xiamen Songyu. All-electric options Bubenzer Systems’ withdrawal from the market has taken some 42 of the impetus out of other allelectric developments, but other designs are still in development. Ram is continuing to develop an all-electr ic version of its CentreSpread expanding twin 20ft spreader and says the changeover to electric drives has been relatively straightforward due to its two stage telescopic system. This, explains Ram, means “there is no requirement for internal locking mechanisms/dogs that need engaging when going to twinlift. The second stage that expands the spreader incorporates a heavy duty drive system as standard.” Ram is targeting prototype testing in the latter part of this year and product launch in 2008. Bromma’s all electric quayside crane spreader, called the E-Series, is currently in Bromma R&D in Stockholm and is expected to be released for field testing later this year. No further details are available at this stage. Bromma commented that the scale of its business “of course has an impact on the pace and timing of new shipto-shore product introductions.” Electric yard crane spreaders are widely accepted by the market and Bromma lists orders for 109 all-electric yard crane spreaders among those booked in 2006, with customers in Europe, Chile, Brazil, Thailand, Turkey, the US and the Middle East. However, there is still a strong preference among many Chinese ports for hydraulic yard crane spreaders and Bromma reports orders for almost a 100 units last year. SCS3 out soon Bromma plans to launch its next generation spreader communication system - SCS3 - later this year. Customers have been told that SCS3 “will build on the established SCS foundation with new diagnostic and prognostic features that will significantly enhance user-fr iendly perfor mance.” Elaborating further, Bromma says the “product mission” for SCS3 is to maximise spreader reliability “both through fault resolution and fault avoidance.” The new system is currently in testing at a UK port and is slated for introduction this June. Bromma plans to adopt SCS3 “at a fairly rapid pace later in 2007,” leveraging the user knowledge that SCS2 customers have developed since it was launched in 2001. In terms of performance and functionality the only hints Bromma is giving at this stage is that the challenges its R&D team have addressed in development include: adapting the technology to perform better in shock load and EMT conditions, marrying a high level of functionality with a simple technician operator interface, and developing a system that is “adaptable to the entire crane/ spreader fleet, which often has diversity of brands and products.” There is some convergence between the E-Series and the SCS3 developments and Bromma says that sensor design advances on the E-Series will complement the February 2007 Section 5 27/2/07 12:21 pm Page 43 WorldCargo news CARGO HANDLING sity of Singapore (NUS) and Stinis for the purposes of developing impact noise reduction systems.As previously reported (WorldCargo News, September 2006, p49), NUS recorded shocks on the corner castings of up to 102G, while Stinis found that at a 2 m/sec landing speed, its spreader was subject to 160G on the head beams, 80G on the midframe and 20G to 40G inside the electrical cabinet. Matthew Alioto,Veritainer’s VP, technology, is surprised that such high forces have been recorded, but considers that the likely explanation for the variance is that the Oakland crane is fitted with a system to lower automatically the hoist speed when the spreader or container under it is close to another container or a chassis. As he himself points out, such systems are relatively common on quay cranes, but in fact that only makes the variance in numbers more difficult to explain. Sceptics may also take some convincing that radiation detectors will work effectively and not cause problems with false reads. A US east coast port fitted radiation monitors to its spreader beams and was told flatly by US-DoD that they are unreliable and, if anything, the “false positives” would only increase the nuisance value and slow down productivity (WorldCargo News, May 2006, p58). It should be made clear that Veritainer was not involved in that project and that the issue was the effectiveness of the equipment rather than where it was mounted. ZPMC has built a dual hoist crane with a scissor system fitted to the waterside headblock to spread the headblock between the sheaves Twin 20 spreaders are now commonplace on quayside gantries and tandem arrangements open up the possibility of handling four 20fts at the same time. This Stinis twin 20 is at Fos. (Photo: Port of Marseilles) prognostic and diagnostic advances of Bromma SCS3. VeriSpreaders coming Veritainer Corporation has completed a pilot project with its VeriSpreader radiation detection system at the Port of Oakland and, when a second project to demonstrate that the technology meets the requirements of US authorities is completed this June, intends to start taking commercial orders. Veritainer is a private company headed by John Alioto with its head office in northern California. It holds three patents that cover the application of a radiation detector on a crane spreader and what Veritainer claims is the “only viable way to non-invasively and passively detect radiation shielding in a container.” In terms of how the radiation detection system functions,Veritainer provides the following description: “[We] use gamma-ray detection units (GRDUs) and neutron detection units (NRDUs) to gather three data points about the container: gamma count, gamma energy and neutron count. “Using isotope identifying software developed in part by Lawrence Livermore National Laboratory (ARAM) or software developed by Princeton Plasma Physics Laboratory (MINDS),VeriTainer’s proprietary data analysis software will detect whether the container contains radioactive material and, if so, the isotope involved (isotope identification); whether the container contains material that shields radioactive material (shielding determination); and whether the cargo in the container matches the radiation profile of the cargo listed on the manifest.” Pilot 1 completed The first VeriSpreader was delivered for testing to the Port of Oakland’s Ben Nutter terminal in July 2005. GRDUs and NRDUs were retrofitted to a Bromma twin 20ft spreader by modifying the extender arm assembly. Alioto explains that the purpose of the first pilot was to demonstrate that the VeriSpreader system could withstand the shocks of the marine environment. Between August 2005 and October 2006, he says, it completed 6529 lifts without incident. VeriTainer knows that operators will take some convincing that the sensitive components can withstand the spreader environment and has done much work in this area.The GRDUs and NRDUs are packaged in a proprietary shock absorption system and the housing is lined with Sorbothane isolators, a patented viscoelastic material recognised for its vibration and shock absorption characteristics. During the development process an empty GRDU enclosure was fitted with accelerometers on the outside and inside to measure shocks on three axes and quantify the effectiveness of the Sorbothane reduction design.These tests showed peak forces of 37G but the vast majority of impacts were in the 3G to 7G range.The Sorbothane system reduced impacts on the components by 60%. Different results These results are significantly lower than tests conducted by the National UniverFebruary 2007 43 Section 5 27/2/07 11:09 am Page 44 WorldCargo news Bromma wasVeritainer’s partner in the pilot project and Wilfred Simonsen, VP, business development, agrees that the question of withstanding the operating environment is “the common concern of our terminal customers around the world.” However, he is confident that the sensor components can hold up.“Bromma has enormous experience with successfully mounting sensors on the spreader. CARGO HANDLING We have developed our own testing rigs simulating shock, vibrations, G-forces in all directions and so on. “Our twin 20 detection system and automatic positioning system both incorporate spreader-mounted sensor technology.We have more than 3500 SCS2 nodes in service today at terminals around the world, and their reliability has been excellent,” he said. Left and above: views of the Veritainer system as fitted to a Bromma twin 20 spreader in the first pilot at the Port of Oakland Bromma has been investigating spreader-based radiation detection since 2004. “We believe that spreader-based radiation detection is the best possible solution,” says Simonsen. “From a monitoring standpoint, placing sensors on the spreader puts the reading close to the container. Just as importantly, reading the container while the container is in transit during normal ship loading and unloading operations means that security aims can be achieved without any disruption to the normal flow of container handling operations, and without any harm to terminal productivity.” John Alioto adds that a key point is that the VeriSpreader does not slow the crane cycle. “We get the amount of time it takes to unload or load a container,” he says. Eight seconds is sufficient but at very best a container is under a crane spreader for at minimum of 20 seconds and typically considerably longer. As far as the maintenance requirements the VeriSpreader components might add and expected life cycle, John Alioto says this can only be properly answered when more units are in service. However, the first VeriSpreader remained in service after the pilot was completed and has now clocked up over 11,000 lifts without a problem. PSA Singapore its talking to VeriTainer about its requirements and has indicated regular crane maintenance takes place every 17,500 lifts and Alioto is confident the VeriSpreader can support this interval. Second under way Completion of the first pilot allowed VeriTainer to raise nearly US$4.5M for a second project, this time at the Howard domestic terminal in Oakland operated by Matson. Last month a purpose-built, Bromma non-separating twin 20 spreader was delivered from Sweden and is now in San Pedro where VeriTainer is fitting the sensors. The first VeriSpreader demonstrated that it could detect uranium hexafluoride when a 1t shipment for the Department of Energy passed through the terminal. However, a nuclear device would need a much smaller amount and the second pilot is intended to show that the VeriSpreader system has the sensitivity to detect and differentiate between different types of radiation. The first Ver iSpreader had four GRDU and four NRDUs and the second will have 22 and 16 respectively, and the size of the GRDUs has been increased significantly. The components add 1000 lbs to the spreader weight and require 5v and 12v power from a 200W power supply and two fibre optic cores to connect to a PC installed in the machinery house. The second pilot will observed by key terminal operators and lines such as Maersk and APL, but also US and Canadian Customs, the National Nuclear Security Administration and the Domestic Nuclear Detection Office. These agencies are more interested in detection than spreader issues and also have to consider how they can integrate the scan results into their own processes. VeriTainer has developed web-based software that uses an algorithm to analyse spectra from the sensors and generate alerts. To match the scan to the container number VeriTainer has just announced a partnership with OCR provider APS Technology to include its OCR system on the VeriSpreader. Together with twistlock information from the crane PLC, the VeriTainer software will them be able to provide Customs and/or Homeland Security with the container number, time it was (un)loaded, an image and radiation data. The reporting software can be accessed through the internet, allowing US authorities to get real-time information from overseas ports as containers are loaded. Market model John Alioto predicts that eventually shipping lines will have to have containers scanned.VeriTainer plans to sell its radiation detection services to the container shipping industry by charging a per container fee for inspection services and certification.The fee would be split with terminal operators, so they can recoup the cost of theVeriSpreaders.WhileVeriTainer supplies the components in the VeriSpreader, it views spreader manufacturers as “roll out partners” and does not have an exclusive relationship with Bromma. Matt Alioto says a design has been developed with RAM and preliminary discussions held with ZPMC. Retrofitting is possible but not particularly easy. John Alioto says terminal operators are better off to buy a new spreader as that way they get a new twin 20ft unit integrated with OCR from APS. VeriTainer is aiming for global coverage by 2015, which John Alioto says would require rolling out around 3000 spreaders at a rate of 300 per year. Bromma has assured VeriTainer it could support that.This is perhaps unrealistic, given that there are still plenty of cranes operating with much older spreaders and control systems that cannot be so easily updated even if terminal operators were willing. Simonsen says that Bromma’s spreaders are well suited because their simple and clean separating twin design enables installation without major structural modifications. While cautioning that field tests still have to be completed, he adds that Bromma has the knowledge and experience to bring to market a successful solution. ❏ 44 February 2007 Section 4 24/2/07 11:18 am Page 45 TODAY BUSINESS IS GOOD. EVERYONE SEEMS TO BE GROWING. BUT WHAT WILL IT TAKE TO COMPETE AND WIN WHEN TIMES TURN TOUGH? Growth has a way of making problems go away, and for many years container handling has been a growth business. Yet history reminds us that challenging times arrive sooner or later in every industry, and container handling will be no exception. When global trade eventually slows, terminal efficiency and productivity will be more important than ever before. A less reliable spreader fleet costs more, of course – in repairs, downtime expense, and extra capital allocation for spares. Yet the greatest “cost” of spreader under-performance is how a less productive spreader fleet makes a terminal less competitive. Highly efficient terminals have a INPUT VALUES Spreader A Spreader B Advantage $130,000 $150,000 -15.4% Operation Weeks / year 44 Days / week 5 Hours / day Moves / hour 20 24 Moves / year Hours / year 105,600 4,400 Investment Spreadera A $130,000 $150,000 Spreader B Spare Spr. Ratio Spreadera A 50% Spreader B 30% Spr. Life Time (yrs) Spreadera A 10 Spreader B 11 Spreader Investment Down time adv. % Consumables USD / kWh Personnel USD / hour Disc.factor This is why the selection of a spreader partner is always a strategic activity. The decisive difference between competing spreaders is not the difference in initial purchase price, but how spreader fleet out-performance or under-performance impacts speed of ship turns, terminal TEU growth, berth utilization, lifecycle costs, and overall customer satisfaction. These are the “big picture” issues that success ultimately depends on – the issues that will determine which terminals will compete and win, and which terminals will plateau or decline, in the container terminal marketplace of the future. Spreader A - Accumulated Discounted Cash Flows USD Spreader A ROI : NPV: 400,000 300,000 Spreader life time (years): Spare spreader ratio: Spare spreader "investment": 10 11 1 50% $65,000 30% $45,000 30.8% 200,000 37% $289,038 Payback time: 4 100,000 years and 1 days 186 days 0 Year-0 -100,000 Estimated Spreader Revenue Productivity gain Downtime reduction $131,846 $131,846 $3,326 $6,048 Total Annual Revenue $131,846 $141,221 6.6% Service & Spare part cost $13,123 $10,973 16.4% Crane energy cost $43,142 $41,075 4.8% Year01 Year02 Year03 Year04 Year05 Year06 Year07 Year08 Year09 Year- Year-11 10 -200,000 -300,000 Spreader B - Accumulated Discounted Cash Flows USD Revenue / Move Prod.factor % marketing advantage over peers – which over time will mean higher market share, better berth utilization, and superior pricing power. Spreader B ROI : NPV: 500,000 400,000 $213 -$150 $63 Total Annual Cost $56,265 $52,047 7.5% Total Life Time Cost, first 10 year $757,645 $715,471 5.6% 0.05% (Including cost of investment) 45% $408,896 Payback time: 300,000 3 years and 200,000 100,000 0 Year-0 10% -100,000 Annualized Life Time Cost $75,765 $65,043 $0.064 Investment % of total life time cost 17% 21% 14.2% -200,000 -300,000 Year01 Year02 Year03 Year04 Year05 Year06 Year07 Year08 Year09 Year10 Year11 Payback time reduction: 181 days As such, identifying the spreader partner most likely to maximize return on investment is at the center of fleet planning. Yet, how does a terminal do this? How does a terminal properly balance competing indexes of value – initial spreader price, lifetime energy and maintenance costs, fleet durability, and spreader productivity? How does one move from the easy question – “What will this spreader cost us?” – to the more important question – “What will this spreader earn for us?” How does a terminal calculate where true value resides in the spreader marketplace? Bromma Group’s new white paper – Return on Investment in Spreaders – is an exploration of these questions, and a useful tool for developing a more strategic approach to fleet investment. The white paper can also help your terminal develop a return-on-investment model tailored to your specific operating environment and growth ambitions. For a copy, simply contact your local Bromma representative, or email us at [email protected]. Net present value won: $119,859 $50 8% A Tradition Of Innovation www.bromma.com Section 4 1/3/07 3:42 pm Page 46 Section 4 1/3/07 3:43 pm Page 47 WorldCargo news CARGO HANDLING Kalmar looks to a risorgimento in Italy Kalmar Industries has thrown down the gauntlet to the rest of the heavy lift truck industry with the deal to buy CVS Ferrari, subject to competition authority approvals. The price has not been disclosed, but could be close to CVS’s net sales for 2006, €85M (US$110M). CVS is dwarfed by Kalmar’s net sales came to €1.2B last year. Long-term, the takeover by Cargotec, Kalmar’s parent, of the Indian heavy FLT and reach stacker builder, Indital (see this issue, p1), could make even more waves. Indital’s net sales in 2006 were only about 10% those of CVS, so it is a “midget” in global heavy lift truck terms, but the potential for market growth in India is very large and Cargotec will control a low cost manufacturing base in the country. Kalmar’s deal to acquire CVS Ferrari raises a number of strategic questions where, conversely, Kalmar is weak. But the “north/south” divide that some pundits have highlighted oversimplifies things, as CVS’s single biggest export market, certainly for reach stackers, is Germany. CVS operates two assembly plants in Rovoleto di Cadeo, near Piacenza in northern Italy, supported by 12 local, component production centres, so it has a high degree of vertical integration. About one third of CVS’s staff of 305 are service personnel working in Italy. The family-run company was set up in 1973, making carriers for all-terrain mobile cranes for OEMs such as Grove and Sumitomo. It branched into the port industry with terminal and ro-ro tractors in 1982, followed by heavy FLTs in 1990 and reach stackers in 1993. Its first real brush with Kalmar, apart from bid opening rooms, came in 2004 when it bought Kalmar’s Italian dealer Papalini from the curatore. Papalini’s joint venture with Malta Freeport in Bríndisi was a disaster and CVS had already snapped up a lease on its workshops (WorldCargo News, August 2003, p2). CVS Service, already boosted by CVRI’s service personnel, took over Papalini’s service business. Kalmar, meanwhile, appointed Movincar in Turin as its new Italian dealer for heavy FLTs and reach stackers. (CIBI in Milan had always been the dealer for the “Sisu/Valmet” products - RTGs and straddle carriers). Badge deals Although Kalmar has given assurances to CVS’s dealers (and to its own dealers in Italy?), what happens when CVS’s badge- engineering agreements with Komatsu and Taylor come up for renewal? These date from 1999 and 2000 respectively, so must have been renewed at least once, suggesting overall satisfaction. Generally speaking, the point of badge-engineering is that the OEM accepts a “wholesale” price from a strong local player to gain access to new markets without high market entry costs.The local player accepts a lower margin but avoids the costs of “reinventing the wheel.” The Komatsu deal covers certain Asian markets (but not Japan, for which Komatsu has a separate agreement with Linde), while the Taylor deal covers North America. Obviously Kalmar is already active in these markets. Taylor has said that it intends to continue with its agreement with CVS. Its Together but separate It is hoped to get the approvals and complete the deal to buy CVS by March/ April.The purchase is being made through a Cargotec financial vehicle, but Kalmar is strategically and operationally responsible and its CEO, Christer Granskog, who is also a Board member of Cargotec, will join the CVS Board as chairman. The official word is that CVS will remain a separate entity and will retain responsibility for marketing its own products. The deal is expected to “contribute to synergies in areas like production, product development and sourcing,” but CVS products will continue to be sold through its own existing and separate distribution network, in competition with Kalmar and everybody else, just as today. It just doesn't make sense for Kalmar to try and replace CVS’s products with its own, as it would be bound to lose market share. Just to take one example, Kalmar and CVS between them dominate the Portuguese market for reach stackers. If CVS’s customers found they were talking to Kalmar, they would probably look elsewhere. More fundamentally still, Kalmar has a much better chance to increase CVS’s relatively small global market share than increase it own, relatively large one. Nevertheless, as explored below, there are doubts in the market as to Kalmar’s intentions and its competitors may have some fun stirring things up. Experience the progress. Overlap CVS’s core container handling products - reach stackers, heavy mast trucks and terminal tractors - are of course already in Kalmar’s portfolio. CVS does have two product niches, however, a double-handling ECH reach stacker (WorldCargo News, July 2000, p1 and p34) and a new, self-elevating shuttle carrier design (WorldCargo News, April 2006, p1). Both CVS and Kalmar have independently come up with rotating consoles for straddle carrier cabs, for improved ergonomics (WorldCargo News, January 2005, p20). CVS also controls Belotti’s products - reach stackers, straddle carriers, coil carriers and Hercules mobile cranes. These were rebranded Ferrari Belotti in 2002, when a 75:25 JV of CVS and Genoa-based CVRI cut a deal with the bankruptcy administrator (curatore fallimentare) of Belotti SpA and took a lease on Belotti’s production plant in Genoa (WorldCargo News, June 2002, p2). However, WorldCargo News understands that the ownership title to those products has always remained with the curatore. Meanwhile, the lease on the Genoa plant has expired and the court has now ruled that the site is sold for redevelopment, to raise funds for creditors, although this is subject to appeal. Good looking CVS has a strong market position in Italy and some other Mediterranean markets The ownership of the former Belotti products rests with that company’s bankruptcy receiver 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 February 2007 The Group 47 Section 4 1/3/07 3:43 pm Page 48 WorldCargo news CARGO HANDLING general sales manager Donny Woodruff said the CVS machine is an important product in the range as demand for reach stackers has been increasing in the US. Woodruff acknowledges the rising dollar price as a factor in the reach stacker market in the US, but points out that it does not affect Taylor’s competitiveness, as North America is almost exclusively supplied with European-built machines. “The situation whereby Kalmar owns competing brands is for Kalmar itself to consider, ” he says. “We have no problem with one Kalmar-owned machine competing against another.” Based on what Kalmar has said about competition, it has no problems with that either. Fantuzzi puts its case Fantuzzi has objected strongly to the statement in the December 2006 edition of WorldCargo News (p28) that Mi-Jack terminated its agreement with it because lead times had become too long. “That statement is without context and is ridiculous,” said a highly-placed Fantuzzi spokesman.“You might as well say that a woman divorced her husband because he looked at a pretty girl in the street. “Fantuzzi is now marketing direct in the US and retained its existing ar rangements for Canada and Latin America as the result of a strategic review by our company, and the early results of going it alone in the US where, don’t forget, we now have one Market views All the same, the market may take some convincing. One terminal operator in a North Continent port, who has standardised on CVS reach stackers and has a fleet of six, all on lease from the local dealer, is wary. He says that in his experience Kalmar is less responsive and flexible than CVS and “is not prepared to negotiate.” WorldCargo News solicited views from several leading players in CVS’s “home” Italian market. Between them the port operators who responded account for 2.5M TEU/year of throughput. One was willing to be quoted and he is fairly upbeat. “I have no reason to doubt the assurances I have re- more competitor (ie Mi-Jack), have been even better than we expected.” The statement that Davide Bertozzi is “bringing former Fantuzzi dealers under Linde’s umbrella” is also untrue, he said. “The break with MLA in Australia was nothing to do with Mr Bertozzi leaving us and joining Linde, but again was the result of us and MLA seeing things differently.” For the record, last September Adelaide-based NTP Forklifts Australia was appointed Fantuzzi’s new national agent, initially for three years, for all it 10-70t lift trucks - reach stackers, container handing mast trucks, FLTs and sideloaders. ❏ ceived from CVS that they will continue to operate normally,” said Andreas Nigulis, of Vector Port and Transport Solutions, who formerly occupied senior posts with PSA-Sinport and Contship Italia. “This is a case of two good brands coming together and I see no risk for continuity. Kalmar has no service organisation in Italy. It can now make use of the CVS service network and thereby offer a comprehensive package.” He sees the deal as a good move for the Ferrari family, as they are no longer “fighting a battle against giants.” This echoes the point made by Giuseppe Ferrari in the official press release that, as a family concern, they had taken the business about as far as they could. Nigulis also said, however, that from a users’ perspective the deal means less competition and that could lead to higher prices. The managing director of one terminal operating company said he traditionally favoured CVS because it provided the best combination of price and quality. If the price went up and compromised that mix, it could play into Fantuzzi’s hands. A director of a leading intermodal operator said that on learning of the deal, he immediately sought and obtained assurances from CVS about continuity of production at Rovoleto di Cadeo, the Ferrari and Ferrari Belotti marks and availability of spare parts. Another port operator also stressed the need for prod- TERMINAL SOLUTIONS • Proven reliability Warnings However, some other experienced industry players sounded a warning. Scotching the notion that CVS would be commercially independent, one stated bluntly that “Kalmar will see CVS’s bid prices and push them up.This will hand an immense advantage to Fantuzzi. Kalmar is making a big mistake trying to buy the market.” In a similar vein, another said that “the deal had no market logic but is driven solely by Cargotec’s shareholders’ greed.” He suggested that CVS’s commercial autonomy would be gone within about two years and that the marks and products themselves would eventually be absorbed as well. This would pose spare parts problems and “already second-hand prices for CVS products are being marked down.” The third said that an important element of competition will be removed at a stroke, and that Kalmar will sell whichever product it judges more strategic. He expects that at least some CVS products will have disappeared within 3-5 years.Another observer said that the deal will put prices and quality at risk in the Italian market. But he also takes the view that Kalmar will leave all the selling in Italy to CVS - including its own reach stackers and FLTs. Kalmar and CVS will work hard to prove the doubters wrong, but all the same it is worth asking whether Cargotec is pushing too far and too fast for growth through acquisition. At some stage, customers may sense that their choices are being closed down and resent it. Hydrostatic ECHs Meanwhile, life goes on. Linde is set to introduce a new, hydrostatic drive EC mast truck line based on the ground-breaking, 10t-18t hydrostatic platform it launched in 2005 (see WorldCargo News, November 2005, p47). Tests are under way and the first customer deliveries are expected in the third or fourth quarters on this year. While the existing, dedicated ECH range covers 3-5 x 9ft 6in high/6 x 8ft 6in high stacking machines, the new range is split into 3-4 high stacking and dedicated 5-6 x 9ft 6in high/7 x 9ft 6in high stacking, with all the bigger machines being fitted with bigger tyres (14.00-24) all-round. At 4m, wheelbase of the new machines is longer than the existing range (3.6m) and lateral stability is enhanced as a function of the drive hubs being in wider castings. Linde is also introducing front stabiliser pads for its reach stackers, to increase second row stacking capacity without scaling up size and weight. This is aimed mainly at Australia, where Linde now works through MLA Holdings under the “Vulcan” banner, but will be offered as a standard option in all markets. Recent reach stacker deliveries by Linde include two to Komatsu for Japanese customers. In the absence of any home-based producers, the Japanese market has never been a big one for reach stackers, although TCM is now making headway with its designs. Africa deals Konecranes (ex-SMV) Lifttrucks has reported orders worth €5.5M for reach stackers from returning customers, received last December. Six are going to Namibian Port Authority (NPA), three to Kenya Ports Authority (KPA) and four to Meridian Ports Services (MPS) in Ghana. All equipment will be delivered by April/May. NPA has ordered 45t, 5 x 9ft 6in high (first row) machines to bolster container handling capacity at Walvis Bay, Namibia. It al- Barge handler delivered • Outstanding performance • Environmentally compliant OMEGA 54E DCH MEGASTACKER STACKS 40T FIVE HIGH REACH STACKERS uct continuity and “showing the same face to the customer.” One operator expressed “indifference.” They have been informed that the deal will make no difference to them and they accept that, but if things do change and put them at a disadvantage, they would look elsewhere for equipment in any case. Another operator stated that he had been kept fully in the picture for some time before the deal was finalised - indicating a very high level of mutual trust - and received assurances that CVS’s production will continue in the coming years. They have been informed that Giuseppe Ferrari will remain in charge of sales and thus have every confidence in the “product and commercial continuity” of CVS. For the future, as in the past, they would be seeking the best price/ quality relationship and would continue to work closely with all their suppliers to achieve this. RORO LIFT TRUCKS EMPTY HANDLERS Konecranes has delivered, through Willenbrock Fördertechnik in Bremen, a jackless, long wheelbase (9m) SMV reach stacker with a self-weight of 100t, to the new Binnenhafen C-Port in Fr iesoythe/Sedelsberg, near Cloppenburg, Lower Saxony. Due to the unusual size of the machine, it was shipped in parts from Sweden and assembled in Bremen. As previously reported (WorldCargo News, June 2006, p2), this is an SC4545 TB3 machine with an SWL of 30t at the third container row on the barge below the quay.To provide additional flexibility in the yard, it is fitted with a combi-spreader so it can handle trailers and bottom lift swap bodies as well as containers. SWL in the first row of a container stack is 45t up to 5-high. In common with previous outsize barge handlers delivered by SMV to German inland ports, the machine is fitted with a laser distance calculator to measure the distance to the quay wall. In addition, three cameras located on the spreader and the counterweight and linked to an in-cab monitor, provide an all-round view. Binnenhafen C-Port is owned by the local city governments and operated by Rhenus. It is located at the node of the coastal canal with the B72 and B401 federal highways. The trimodal terminal has a quay length of 550m, sufficient for five europaschiffe to berth simultaneously. ❏ Konecranes (ex-SMV) Lifttrucks has had considerable success with its long wheelbase, jackless reach stackers for 3-wide barge handling Designed and manufactured by Clark Equipment Australia Pty Ltd – Heavy Equipment Division 30 Salisbury Road (PO Box 50) Hornsby NSW 2077 Australia Ph: +61 2 9477 8446 • Fax: +61 2 9476 2241 Email: [email protected] 48 February 2007 Section 3 27/2/07 10:57 am Page 49 WorldCargo news CARGO HANDLING ready operates two Konecranes reach stackers, delivered last March and, according to Konecranes, has returned due to high performance and strong service capabilities. Two of KPA’s new machines will delivered to Nairobi port one to Mombasa. KPA already operates eight Konecranes FLTs rated between 10t and 25t SWL. MPS, which already operates eight reach stackers and four ECH mast trucks from Konecranes, will deploy its new machines, rated at 45t up to 5 x 9ft 6in high in the first row, at its new terminal in Tema. 21 for Liebherr Liebherr reports that it sold 21 LRS 645 reach stackers in 2006, including seven to Sociedad Portuaria Buenaventura in Colombia, the biggest single order to date. Namibian Ports Authority took three, Stevedoring Services, Bermuda took two and single units went to the Ministry of Defence in Egypt, NYCT New York, Gävle Hamn, Coastal Mar itime Stevedoring in the US, Golden Crossing Constructures in Canada, Horst Felbermayr (Austria), both Novatrans and Lille Dourges CT in France, and Giezendanner, Switzerland. The last four have combi-attachments to handle swap bodies and trailers as well as containers. Sales were thus up 61% on 2005. More than 40 LRS 645 machines, which uniquely in the reach stacker market have hydrostatic drive, have now been sold since launch in 2004. The machine at NYCT is the first to be fitted with individual wheel drive, which improves manoeuvrability and stability and reduces tyre scrub, particularly on the steer tyres. Liebherr says that at present its capacity for reach stackers is limited to 25 machines/year, but it will increase to 35 this year as the new factory in Rostock gets into full swing. Liebherr is also considering introducing a second model aimed more at “budget” customers, but no final decisions have been taken. for similar reasons but hMACH has gone a step further with a lever system. hMACH also puts a strong design focus on longevity and ease of maintenance. The frame is an all-welded, unitised body and high-strength T-1 alloy is used in the major stress areas of the steer axles, masts, carriages and forks. Tankersley says one main wear point in heavy FLTS is the inner carriage and mast structure, particularly in industrial applications such as concrete blocks where loads are often not centred on the forks, causing high stress on one side of the mast assembly. hMACH has mounted the tilt cylinders on the cab frame supports above the driver’s head, to minimise mast bending stress and this, combined with the use of T-1 alloy steel, produces a durable mast design that is covered by a five-year war- ranty. Overall, adds Tankersley, hMACH wants to deliver a truck that will last beyond the life of the power train, which can be replaced when it wears out. hMACH started production 12 months ago and the first Magni-lift machines are now being delivered, including three into stevedoring applications on the USWC range. Tankersley says while its design will not have a universal appeal, there is a growing niche where hMACH can be competitive and, with demand rising and the falling US dollar making imported machines more expensive, now is a good time to be manufacturing in the US. Domestic production will also give an advantage in lead times, which have become a major issue with imported machines. hMACH is aiming to sell between 25 and 30 units this year. ❏ hMach has identified strong demand for simple machines that customers can maintain themselves A new company called hMACH has begun manufactur ing heavy FLTs in Spokane (Wa), USA. Its Magni-lift brand trucks are built in partnership with Racho International, which specialises in heavy mining equipment and technology. The range covers pneumatic tyre machines in the 30,000-100,000lb lift range and cushion tyre trucks in the 25,00040,000lb range. The standard pneumatic models offer 30,000lb and 36,000lb lift at 24in load centre (LC), 36,000lb and 40,000lbs at 36in LC and five capacities between 55,000lbs and 100,000lbs on a 48in (ie 45.45 mt-1200mm) LC. The standard power train is a Cummins QSB Tier 3 engine, Dana Clark series 32000 Powershift transmission and AxleTech (formerly Rockwell/Meritor) drive axle. hMACH builds its own steer axle T-1 alloy steel on the yokes and other high-stress areas and 4140 alloy steel in the pins, spindles and links. Tyre scrub is minimised through a proportional wheel turning angle and pivot mount ensuring even load distribution while steering is controlled through dual redundant cylinders. The hydraulic system is based on a pressure compensated piston pump with load sensing control. It operates at low pressure to maximise life and minimise leaks and has corrosion-resistant “nitrobar” cylinder rods on most cylinders. Corbis/ TCS Enter hMACH Do you need to get it there fast? Keeping it simple Leamon Tankersley,VP, sales, explains that hMACH’s philosophy is to “take a step back” from the move towards electronic control and management systems that require a technician with a computer for service. He says there is a demand, particularly from customers in heavy industry operating small fleets or single machines in isolation, for simpler machines that they can service and maintain themselves without a diagnostic computer. Machines have become so complex that many operators can no longer themselves repair even a simple fault. The driver controls are one area where hMACH has sought to simplify the machine, by using mechanical levers instead of a joystick and electronic control system. Others, including Hyster, are using pilot-operated hydraulics on the joystick February 2007 Get exactly what you need from Hyster When it comes to moving heavy cargo or containers fast, you want more than top-quality materials handling equipment. You also want a partner who understands your operation and how to optimise it with the right handling solution. This is exactly what you get from your Hyster dealer. In addition to providing strong and reliable lift trucks, container handlers and reach stackers, our dealers offer flexible financing, rental schemes, fast service, accessories programmes and a whole lot more. So when you have to think big and fast, visit us at www.hyster.co.uk or call 0031 24 374 2555. 49 Section 3 27/2/07 10:57 am Page 50 WorldCargo news CARGO HANDLING RTGs start to clean up their act Port operators are looking for cleaner more efficient options for powering RTGs in response to new regulations, pressure from environmental groups and the higher cost of diesel. There are now several systems on the market that make RTGs more efficient by improving the performance of the genset, using another medium to capture regenerative energy and return it to the drive system, or a combination of both. For some terminals running RTGs on mains power may also be a viable option. TSI goes Hybrid Terminals Systems, Inc (TSI) is taking its environmental programme to the next level with the purchase of three hybrid drive systems for RTG cranes at its Vanterm and Deltaport terminals in Vancouver, Canada. Joe Murphy,TSI’s VP, engineering and maintenance, explains that TSI began considering emissions reduction technologies 18 months ago in association with the port authority. Initially TSI experimented with shut down idling and biodiesel fuel. The biodiesel delivered good results, particularly on older engines in conjunction with filters and scrubbers, and TSI has now standardised on it. The logical “next step” was a more efficient drive system and TSI then began considering hybrid drives from Railpower of Montreal. Greengoats Railpower holds several patents covering a diesel-battery hybrid drive using lead acid batteries.The main application of the technology to date is in switching loco- A number of different technologies for reducing emissions and fuel consumption on RTGs are being tested at ports in North America and elsewhere motives, called “Greengoats,” of which more than 60 units are now in service. In a switching locomotive the batteries have to meet very high power requirements, up to 2000hp, in short bursts and this requires up to 30t of lead-acid batteries. After talking to Canadian railroads CN and CP about how the system has performed, TSI decided to pursue the hybrid option and Railpower did the electrical engineering to adapt the technology to an RTG application. The potential benefits of a hybrid system in fuel savings and emissions reduction are significant. With a battery unit of around half the size of the units on the Greengoat locos, the size of the diesel engine on an RTG can be reduced to 100kW. Based on what it has achieved in rail applications, Railpower reckons port operators could reduce fuel costs by 70% and cut emissions by a similar amount.The company’s Serge Mai says that these savings are much higher than what can be achieved with other regenerative systems and the system “provides fast payback and excellent LCC [life cycle cost], as well as reduced maintenance for the smaller engine and maintenance free batterries.” Weight issues In engineering a system for an RTG, the main question for TSI was the weight of the battery packs that, at around 20t for the prototype design for a 60t RTG, would have overloaded the tyre ratings if fitted to some of TSI’s older 40t RTGs. However, its more recent 60t ZPMC machines have a heavier structure and the hybrid system can be accommodated by positioning the battery packs to distribute the load evenly. Mai adds that the actual net weight increase is much less than the weight of the battery power packs as the hybrid system needs a much smaller genset. The net increase actually represents about 5% of the overall crane weight. Power options Railpower developed three hybrid options for TSI: a full hybrid drive with small diesel engine and battery pack; a mid-sized option with the same battery pack and a larger engine; and a full-sized genset with a smaller battery pack. Murphy says the greatest payback is with full hybrid option, but there is a risk that the genset will not be able to handle a fully loaded container should battery power not be available for any reason. With the mid-sized option Murphy is confident that the crane will still be able to operate at a lower speed. TSI has decided to fit one machine with a full hybrid drive with a 100kw Cummins diesel engine, while the other two will have a mid-sized hybrid. The engine for the mid-sized machines is still under consideration but could be as small as 200kw, depending on the manufacturer. The hybrid drives will be retrofitted on three new ZPMC 60t RTGs with ABB controls that are due to arrive this spring. Some work will be done in Shanghai to prepare the machines to accept the battery packs, but they will be delivered with a standard 600kw diesel genset that will be removed. brid drive on the two mid-sized machines. Fuel and emissions savings will be measured and benchmarked off a 60t ZPMC machine with a 600kW engine. While stressing that the cranes are prototypes and TSI needs around a year’s experience to assess their performance, Murphy says he estimates the payback period to be in the region of 3-3 1/2 years, although it could be shorter. Supercapacitors Another option that has been previously reported in WorldCargo News is the super capacitor system developed by ZPMC. Ports using ZPMC’s super capacitor system include three in China (Shenzhen, Shanghai and Tianjin), SSA Marine (SSAM) in Seattle, TSI again, a terminal in Long Beach and another in Taiwan.The first three systems, all delivered to Chinese customers, were delivered in 2003 and 2004 while TSI and SSAM took delivery in 2005. TSI has just recently had one of its super capacitor units approved for use by the Canadian Standards Association and it will be put into live use at the same time as the Railpower hybrid drives.TSI’s preliminary test results show an 8-12% fuel saving can be expected and this is in line with Not bolt on An important difference between the hybrid drive and other regenerative technologies is that the hybrid drive is not designed as a “bolt on” option to a standard RTG and is packaged to replace the existing crane power plant. While Railpower can engineer a redundant option to lift a 60t load without the battery, Mai points out that the system is a true hybrid and, therefore, the engine and the battery pack are designed to work together in normal operation just as with a hybrid car. The diesel engine is controlled according to the state of charge of the battery pack, to optimise fuel consumption and the battery life, which ranges between three and seven years. Murphy is optimistic that the full hybrid will prove itself over a period from 18 months to two years and then TSI will have the confidence to go to the full hyThe Vycon Regen system has been adopted by several operators We are the brain of your crane ABB Crane Systems Increase your productivity by saving: time, space and money! ABB Crane Systems SE-72159 Vasteras Sweden Phone: +46 21 34 00 00 Fax: +46 21 02 90 E-mail: [email protected] Internet: www.abb.com/cranes © Copyright 2006 ABB 50 ABB Crane Systems helps you to optimize your transport of containers, bulk material and steel products. We offer electrical and automation equipment for controlling the motions of container cranes, ship unloaders and industrial cranes. Our goal is to achieve fast and cost-effective goods handling. The Advant® Crane Control Systems is designed to handle all aspects of the crane and provides you with: Availability, Productivity, Safety, Low operational costs and Future-proof investments. ABB Crane Systems has extensive experience and expertise in handling complex and global projects. We provide dedicated services and support for the long-term performance and availability. Visit us at www.abb.com/cranes February 2007 Section 3 24/2/07 10:27 am Page 51 WorldCargo news CARGO HANDLING other terminals’ findings. SSA Marine has one at its T-18 terminal in Seattle and a spokesperson says it has achieved fuel savings of around 10%. However, SSAM says the result reflects the way it is used at this particular terminal and its engineers believe that in the right circumstances savings of up to 25% could be achieved. ZPMC says that, under normal conditions and without a reduction in diesel engine size, fuel saving is in the 11-13% range can be realised. The maximum saving measured at Waigaoqiao was reported to be 40.65%. It should be noted that ZPMC initially developed the super capacitor to reduce the visible black smoke from an RTG during hoisting and has promoted this feature ahead of fuel savings. Environmental results measured by the Shanghai Environment Supervising Centre (as reported by ZPMC) include a 90.5% reduction in exhaust particle thickness, 35% reduction in SO2 emissions and a 30% reduction in nitride and oxide exhaust thickness. Interestingly, exhaust smoke temperature rose from 1100 to 149oC. cranes, including quay cranes, straddle carriers and RTGs. Matchmaker The VSG works by matching the engine speed to the electrical demand. Instead of operating at a constant speed between 1500 and 1800 rpm, the VSG controller provides a speed control signal to the governor to reduce speed to a level between 700 and 1800 rpm, depending on electrical load. The generator governor does not need to be modified and the VSG can be bypassed with a simple switch. All of the engine and generator protective control and power circuits are retained. The system itself is relatively compact and the cabinet can be mounted in any direction. The VSG Controller has obtained the relevant EPA clearance and, through Equip-Right, the first two units are now being delivered to a customer in the Port of Long Beach. Equip-Right’s principal Martin Flaska says that the units will be fitted on ZPMC RTGs and compared against another two RTGs fitted with ZPMC’s super capacitor system. The VSG system for this particular application will essentially operate the machine at two speeds. After the genset is warmed up, the VSG Controller will take the speed down from 1600 to around 900 rpm, which is sufficient for most RTG operations. When full hoist power is required the genset will ramp up to 1600 rpm, and back down again This picture shows the battery rack installation for Railpower’s first hybrid RTG application More storage One of the main reasons ZPMC decided to develop super capacitor technology rather than use battery technology was because super capacitors charge much faster, can discharge more power faster and have a high cycle life. Railpower, however, points out that batteries have more storage power and the fast charging rate of a super capacitor is not really needed for an RTG application. “Railpower has analysed the duty cycle profile of the crane and concluded that the battery based hybrid is more suitable,” states Mai. “Super capacitors, flywheels and batteries are all energy storage systems. However, super capacitors and flywheels store power rather than energy, as their capacity is 100 times less than our battery-based system. “They are good for short bursts of power but, as an illustration, cannot store more energy than that regenerated by one single container lowering. Railpower’s battery-based hybrid system is not only able to handle the same bursts of power, but it also stores energy regenerated by dozens of cycles.The unit is charged both by the diesel engine and by regenerative braking.” Siemens goes green Outside of the North American market, Siemens is having considerable success with its Eco-RTG system. The Siemens Eco-RTG concept was jointly developed in 2004 by Siemens and APM Terminals (APMT), based on Siemens Duo inverter technology initially developed for hybrid busses and other vehicles. In an RTG application the system works using a digital control unit and Duo inverters to calculate energy consumption and regulate motor RPM. According to Siemens, “field tests show that terminal operators can save more than 50% of fuel consumption, based on the same operating conditions and throughput as conventional RTG cranes. With the optional ultra-capacitor, savings up to 70% are possible.” All the Eco-RTG units delivered to date have been fitted to ZPMC RTGs. APMT has purchased 20 machines for Algeciras, 15 units for Tangiers, eight for Xiamen and most recently 10 for Pipavav in India. Siemens’product manager Rob Kuilboer says the Eco-RTGs provide a return on investment “everywhere around the world where the diesel fuel price is around world spot prices or higher.” Although delivered only on ZPMC machines so far, the Eco-RTG drive system package is offered to all crane manufacturers and terminal operators.Although it could be retrofitted, the complete drive system (diesel engine, generator, drives, motors, control) would have to be changed and Kuilboer says this might be Economically not feasible. Retrofit option Industr ial Power Systems (IPS) of Jacksonville, Florida has developed a variable speed generator (VSG) controller that is being marketed in to US ports by Equip-Right of Maryland.TheVSG controller can be retrofitted to diesel electric February 2007 51 Section 3 2/3/07 11:58 am Page 52 WorldCargo news when the electrical demand falls. The VSG allows the engine generator set to increase speed without lag to full operation (ie 100% of capacity conditions) in less than one second by storing the electrical power in the capacitors. It has a 200% overload factor built in to compensate for block loading, the application of a large electric load very suddenly. Importantly, the operator will not notice any change in the performance of the machine, other than less noise from the genset. With a two-step system Flaska is confident theVSG will cut emis- CARGO HANDLING sions and fuel consumption by 3540%. A more variable system with three or four speeds is also available and this offers greater savings. Flaska says that on a cost-benefit analysis the VSG option compares favourably with other systems and has the advantage of being retrofitable to existing RTGs. EPA-approved Since the concept was developed in 2005, much time and effort has gone into getting the requisite Environment Protection Agency documentation so the unit can be fitted to a Tier 3 engine, but this is now in place and Equip-Right is actively marketing to US ports. Flying high Vycon Energy reports more success with its flywheel regenerative energy system, marketed as Regen. As a previously reportedVycon has developed a flywheel-based crane energy storage system that was tested on an RTG at the ITS terminal in Long Beach last year. After six months in operation Vycon announced that the test unit has reduced diesel generator emissions by 65% and cut fuel consumption by 20-25%, as well as improving lifting response time and reducing the container cycle time by 15%. Vycon now has two units in full operation at the Port of Long Beach (ITS) and Port of Los Angeles (Evergreen). More recently, Vycon has received an order from an unnamed terminal operator in Korea. “We are also in final discussions with terminal operators in Singapore and Hong Kong to provide Regen systems for their internal evaluation,” said marketing manager Octavio Solis. OK with shocks One issue for Vycon is how a flywheel will perform in a containerhandling environment where shocks are common, but Solis says this has been carefully considered in both the design of the Gimbal mount and the magnetic bearing arrangement. “Prior to the first installation of our Regen system on an RTG,” said Solis, “the shock and vibration levels were evaluated on an RTG with the use of accelerometers and this information was then analyzed and used as input for the design of the gimbal mount. “The gimbal mount is utilized to minimize the shock and vibration in both the radial and axial locations and the current design has performed well. Additionally, with the use of Vycon’s magnetic bear ings, they have been optimized and tuned for the type of shocks and vibrations that are typically encountered by RTGs. “The beauty of the magnetic bearings is that they can be tuned to respond accordingly. In summary, with the utilization of the gimbal mount and the magnetic bearing technology and its associated controls, the Vycon Regen system is able and has shown that it is more than able to handle the types of shocks and impacts that are typically encountered on RTGs.” Solis adds that the unit operating at ITS has had over 1500 hours of operation with over 30,000 cycles and “has been able to absorb the shocks and vibration of this environment.” Optimal combination? Another idea is to combine several systems on an RTG to achieve greater efficiency from their cumulative benefits. Kuilboer says this is possible, but questions whether it would be cost-effective to add another system on top of the Siemens Eco-RTG. HANSE-MASCHINEN Handels GmbH O Hamburg-Germany used forklift trucks, reachstacker & tugmaster for sale: cap. 45 to 45 to 45 to 45 to 41 to 42 to 42 to 30 30 to to 30 30 to to 25 25 to to 16 to to 16 15 to to 15 to 108 to 7 to 9 to make CVS Ferrari Hyster Kalmar CVS Kalmar Belotti Belotti Kalmar Hyster Mafi Mafi Kalmar Sisu Kalmar Kalmar Svetruck Svetruck Svetruck Kalmar SMV Kalmar type Reachstacker Reachstacker Reachstacker Reachstacker Reachstacker Reachstacker Reachstacker RoRo tractor Forklift truck Tugmaster Tractor Tugmaster RoRo tractor Forklift truck truck Forklift Forklift truck truck Forklift Containerlifter Reachstacker Containerlifter Containerlifter year 1996 1998 1998 1996 1995 1992 1992 2002 1992 2002 2002 1999 1988 2002 2002 1996 1992 1990 1998 1996 2002 features 5-high 5-high 5-high 5-high 4-high 4-high 4-high 4x4 5,5m lift 4x2 4x2 4x2 4x4 5,5m lift 5,5m triplex triplex 4-high 6-high 6-high 6-high more details: www.hanse-maschinen.com e-mail: [email protected] Tel: +49-40-51 51 50 O Fax: +49-40-511 31 04 52 A mains-powered RTG from ZPMC has been introduced in Shekou. Unlike the earlier Oslo installations by Kalmar, the spec for the Chinese RTG included a small diesel engine to enable it to change lanes if required “The installation of an energy storage device such as a super capacitor is merely improving performance with an additional 1520%.Without such installation the Eco-RTG is already achieving over 50% of fuel savings,” he said. All the Siemens Eco-RTGs built so far have been delivered without additional energy storage devices and Kuilboer adds that the additional savings would not be offset by the cost. Another view While Siemens has its doubts, others say that regeneratative systems and more efficient genset are, in fact, an ideal combination. Solis says Vycon’s Regen flywheel can work with other technologies “as it is only required to tie into the DC bus of the hoist motor drive. Even with variable speed generators or Siemens Eco-RTG type systems, the Vycon Regen can complement and work with these types of solutions. “When you really think about it, the best RTG crane solution is one that incorporates a smaller diesel engine, an effective energy storage device such as Regen, and variable speed generator controls. Given the actual duty cycle of the RTG cranes, it makes sense to use a smaller engine and let the Regen system take care of the peak power requirements during hoisting. “When the RTG is idling, which is generally for more than 50% of the time, the variable speed generator controls makes sense to cut back on fuel consumption. When the RTG is ready to be used, the Regen system can also play a significant role as power can be provided instantaneously allowing for the engine to increase back to full speed and take over steady state power requirements. “So, Vycon’s Regen helps the small diesel engine by addressing the peak power and it helps the variable speed generator controls by bridging the gap until the engine ramps up to 100% speed.” ...or mains power The environmental pressure that is driving many operators to consider cleaner RTG technology is likely to lead ultimately to greater use of RMGs, particularly in North America. On the US West Coast an organisation called the Natural Resources Defense Council now expects to see mains-powered equipment on environmental impact statements for new terminals. On the East Coast the environmental agenda has traditionally been driven by water quality is- sues and wetland preservation, but air quality is now being added to that list.The South Carolina State Port Authority is being challenged by a group called the Coastal Conservation League to require cold ironing and use electric-powered yard equipment in a new terminal planned for the former US Navy base in Charleston. Railing back One of the drawbacks of RMGs has always been the higher capital cost, due to the rail infrastructure requirements.Although interest in RMGs for container yards is growing, the main dr iver is robotisation, and not air quality. In any case, the capital costs of robotising the CY are such that only high throughput terminals can consider it. Mains-powered RTGs might offer some operators that are not looking to robotise their CYs an option to meet environmental air quality demands at a reduced capital expense to rail-mounted equipment. The Port of Oslo was the first to take this route when it ordered four mains-powered RTGs from Kalmar in 2002.The site location is a temporary one, but local air quality ordinances ruled out conventional deiselpowered equipment. These RTGs are powered by a 3 phase 3.3kV 50Hz power supply delivered by flexible cable in a cable trench. They have no diesel engine for independent movement between RTG lanes. ZPMC has now also produced a mainspowered RTG, for China Merchants Port Services terminal in Shenzhen (Shekou). Stack transfer ZPMC’s crane takes the local 690V low voltage supply and transforms it into 380V AC for the RTG. Unlike the Olso cranes it is fitted with a small diesel engine for transfer between stacks and when this is required the cable is reeled up and unplugged. Incidentally,TSI also recognises the potential for mains-powered RTGs and has specified junctions off the main cable lines to the start of RTG rows in all expansion/ repaving projects. TSI also recognises, however, that the idea may not make environmental sense. It depends on the emissions from the power generation source. Diesel engines running biofuels and fitted with diesel oxidation catalyst filters may well generate fewer emissions than using mains power from a “dirty,” coal-fired power plant. ❏ February 2007 Section 2 5/3/07 3:58 pm Page 53 WorldCargo news CONTAINER INDUSTRY Container lessors awash with cash… On the face of it, the container leasing sector would appear to be in pretty good shape. As the accompanying tables show, lessors bought 1,225,000 TEU in 2006, up 37% on the 890,000 TEU acquired in 2005 and representing almost 40% of total container purchases for the year. Disposals totalled 775,000 TEU to give a net fleet addition of 450,000 TEU or close to 5%. With around 65% of the lessor fleet now on long term lease, utilisation remains at a very healthy level, with most players reporting 93-95% or higher. And crucially, the availability of competitive funding for fleet acquisitions is at an all time high, which has encouraged a number of new entrants into the market. On the debit side, lease rates are lagging some way behind what lessors would like relative to current newbuild prices. The latter have crept up to US$19501980 per 20ft box, while per diems are running at around US$0.65-0.66 for a 5-year term lease, representing an initial return on investment of a little over 12% per annum. The days of a more healthy 14% plus annual return are, it seems, long gone. Nevertheless, with high utilisation rates cutting the costs associated with storage and repositioning, most lessors are continuing to make a reasonable profit. Too much money? Ironically, however, the ready availability of funding, which has been problematic in the past, could yet prove to be the container leasing industry’s Achilles Heel. According to several observers, there is now simply too much money chasing too few deals and the net result is increas- …but finding it increasingly difficult to spend. The ready availability of low cost funding for container acquisitions may not be doing the industry any real favours ing pressure on margins as lessors vie for a share of what is, in relative terms, a shrinking market. Although the leased inventory still accounts for close to 45% of the global container fleet, that share has been falling for several years and is likely to continue to fall. Cheap finance, after all, is not only available to lessors; after a few good years, most major shipping lines have enough on the balance sheet to borrow money for container purchases at rates that few lessors can come close to. One major operator, for example, is reported to be close to securing a US$400M syndicated loan where the margin is less than 1%. Unless there is a major downturn in the shipping market, which would create its own pressures for leasing companies, not least in terms of what to do with their idle boxes, there is little to suggest that the lessors’ overall share of the world fleet will not continue to fall, perhaps to 40% or less over the next few years, which will only result in further pressure on margins. Sound investment But that has not stopped all manner of investment companies, from hedge funds and private equity firms to insurers and German KG Funds from extending their activities into the container leasing business, which is still seen as a sound investment opportunity. In late 2004, for example,TAL International Group, a company Table 1: Profile of leading lessors’ operating fleets at January 2007 (rounded TEU) Leasing Company Total Dry freight Reefer/tank/ fleet Standard/special domestic* Textainer 1,525,000 1,525,000 Triton Container 1,390,000 1,340,000 50,000 Florens Group 1,210,000 1,173,000 37,000 TAL International 970,000 918,000 52,000 GE SeaCo 920,000 755,000 165,000 Interpool Group** 750,000 725,000 25,000 CAI 670,000 670,000 Capital Lease 520,000 519,000 1,000 Cronos Group 405,000 363,000 42,000 Gold Container 365,000 365,000 UES 270,000 253,000 17,000 Carlisle leasing 150,000 18,000 132,000 Grandview Dev 145,000 144,000 1,000 XINES 120,000 120,000 Amficon 120,000 120,000 Waterfront 88,000 88,000 Blue Sky Intermodal 55,000 55,000 Other 502,000 244,000 258,000 Total 10,175,000 9,395,000 780,000 controlled by New York-based private equity firm The Jordan Company, took over Transamerica Leasing from Dutch insurer Aegon. Less than a year later,TAL International listed on the New York Stock Exchange (NYSE) and has bought over 200,000 TEU over the past two years, largely to replace older units in its fleet. More recently, Fortress Investment Group, the first US hedge fund to list on the NYSE, bought Carlisle Leasing from Marubeni America Corporation and one of its first actions was to launch the world’s largest reefer lessor into the standard dry freight container market. Backed by Fortess’s access to low cost capital, Carlisle is now actively - and aggressively quoting on LTLs and has already secured a number of back-toback deals. By the beginning of this year, Carlisle had built up a standard box fleet of 18,000 TEU, including some speculative purchases, and has embarked on an ambitious growth plan. Making waves But it is German money, particularly the KG (Kommanditgesellschaft) fund market, that has been making the biggest waves in the container leasing business over the past few years. Long-established in the ship financing sector, more and more KG funds are now putting money into container leasing, which has encouraged a new breed of container managers to enter the leasing market. At least seven KG Funds limited partnerships of private in- vestors, who put their equity capital into a closed fund managed by a limited liability general partner, or issuing house - are now active, or planning to become active, in the container leasing business. The issuing houses include Der Transport Fonds (DTF), Schröders, Conrendit, Buss Capital and Deutsche Capital Management (DCM), while major players in the ship financing sector like Nordcapital and Hansa Treuhand are know to be eyeing the container market. Hitherto, investors in such funds have been entitled to generous tax breaks, notably the writing off of losses against income tax, accelerated depreciation of assets and tax free capital gains. In many cases, the tax advantages were greater than the investment opportunity itself. All that changed last year, however, when the new government of Chancellor Angela Merkel acted to remove many of the tax concessions associated with KG funds, which had been costing the German Exchequer around €2B (US$2.6B) annually in lost tax revenue. KG issuing houses now sell the schemes largely on the basis of their earnings potential, with annualised pre-tax returns of 11% or more offered. Sufficient tax incentives still remain, however, to make such funds highly popular amongst high-earning private investors. Long established That is not to say KG funds and other sources of German private investor money are a new feature of the container leasing business. Many of the longest established lessors, including Inter pool, Cronos, CAI, Textainer, TAL International and Florens, and middle ranking lessors like Gold Container, have all used the KG market to grow their fleets, typically receiving 10% of net revenue on Are you fumigating shipping containers? Are you interested in protecting the environment? Are you interested in making your operation safer & more efficient? WHAT CAN NORDIKO PROVIDE FOR YOUR BUSINESS? ✓ a more effective fumigation of goods ✓ a safer working environment by restricting harmful gases from being released ✓ a method of fumigation that recaptures and degrades fumigant gases and turns them into harmless salts, ready for disposal, without risk of exposure ✓ a quick gas extraction process from shipping containers prior to unpacking ✓ the chance to remove the costs and delays of additional fumigation of cargo ESTABLISHING WORLD’S BEST PRACTICE IN FUMIGATION Nordiko Quarantine Systems Pty Limited 12/401 Pacific Highway, Artarmon Sydney NSW Australia 2064 Ph (612) 9906 5552 Fax (612) 9906 1874 Email [email protected] www.nordiko.com.au *Includes palletwide, swap body and US domestic units. **Includes boxes on finance lease Table 2: Profile of leading lessors’ container purchases in 2006 (rounded TEU) Leasing Company Total Dry freight Reefer/tank/ purchases Standard/special domestic* Florens Group 235,000 227,500 7,500 TAL International 115,000 109,000 6,000 CAI 115,000 115,000 Triton Container 110,000 104,000 6,000 Interpool Group** 105,000 104,500 500 Textainer 95,000 95,000 XINES*** 95,000 95,000 Gold Container 85,000 85,000 GE SeaCo 55,000 40,000 15,000 Capital Lease 35,000 35,000 Cronos Group 35,000 27,000 8,000 Carlisle leasing 30,500 18,000 12,500 Grandview Dev 25,000 25,000 UES 20,000 15,000 5,000 Blue Sky Intermodal 15,000 15,000 Other 54,500 35,000 19,500 Total 1,225,000 1,145,000 80,000 Fleet replacement 775,000 705,000 70,000 Fleet addition 450,000 440,000 10,000 *Includes palletwide, swap body and US domestic containers. **Includes boxes on finance lease. ***Includes takeover of existing 55,000 TEU KG-funded fleet February 2007 China Contech International Ltd is your reliable trading partner in Asia with expert knowledge of the Chinese market, specialising in the world-wide supply of corner castings For further details, please contact: AGENTS WANTED Tel: +358 207 431 120 Fax +358 207 431 121 www.meclift.fi 53 Section 2 5/3/07 3:58 pm Page 54 WorldCargo news CONTAINER INDUSTRY master lease boxes and 8% on LTLs for managing boxes on behalf of the KG fund and receiving a percentage of the residual value at the end of a container’s life. Indeed, Triton Container International and GE SeaCo are probably the only major lessors not to have tapped into the KG market. But it is not just KG funds that have been providing German investor finance to the leasing market. A number of companies offer container investment schemes to private investors, the largest of which, Pfeiffer & Roth (P&R), has been active in this sector for over 25 years and has provided containers to many of the major lessors on a management or sale and lease-back basis. In the latter scheme, the leasing company concerned buys containers, sells them at market value to the investment scheme manager and leases them back. The latter in turn sells the boxes to private investors with a front end fee to cover administration, management charges etc. The investor is guaranteed a pre-tax return of 11% or more for five years, at which point the manager buys the box(es) back in a tax-free transaction, typically for 60-65% of what was paid initially. The leasing company then buys the box(es) back from the scheme manager, usually for around 50% of their original cost. New entrants Over the past decade, the availability of KG funding and P&R-type container investment schemes have led to the establishment of a number of new lessors offering primarily long term operating leases, including Capital Lease, Unit Equipment Services (UES)/Grandview Development (GVC), Pilgrim Leasing (C&Container Leasing),Wideshine, Blue Sky Intermodal and, more recently XINES, Wind Container Leasing and Unitas Container Services. In 10 the years since its formation, Capital Lease, funded by P&R, has built up a fleet of 520,000 TEU, with a further 30,000 TEU ordered in the first quarter of this year. The merged UES/ GVC fleet totals 415,000 TEU, while XINES, formed in 2005, has already reached 120,000 TEU with 25,000 TEU ordered in the first quarter. Unitas, which was originally formed as a finance leasing operation, expanded into the operating lease sector last year using funding from DCM, and has already invested US$75M in standard and special dry freight equipment, winning back-to-back 5 year LTLs with Yang Ming and CMA among others. Last year, Unitas bought Sea Containers’ master lease fleet, which was operated outside the GE SeaCo joint venture. Known internally as the PIF (politically incorrect fleet) as it is leased exclusively to Cuban and Iranian lessees who are deemed “unacceptable” business partners by GE, the fleet totals 14,000 TEU and comprises a mix of standard and special dry freight units, open tops, flatracks, reefers and tanks. Unitas is in the process of finalising its depot networks to handle redeliveries. Altogether, these “new” lessors operate a combined fleet of over 1M TEU 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 and virtually without exception, they say that figure could be significantly higher if the deals were there to support the funding available. Add equipment managed by the longer established lessors, and the combined fleet financed by KG funds and German container investment schemes is probably close to 2M TEU, around 20% of the global leased fleet. Scaling up But that is not the whole story. Such is the level of liquidity available from German private investors that the past 18 months has seen both P&R and one of the newer KG issuing houses, Buss Capital, scale up their presence in the container leasing sector by buying existing leased container fleets. In August 2005, for example, the Buss Global Container Fonds 1 Partnership bought the 285,000 TEU fleet operated by Gateway Container International, the management of which was subsequently taken over by Textainer. Buss followed up in September last year by acquiring 60% of the fleet operated by Cosco Pacific subsidiary Florens Container Cor poration - around 600,470 TEU - for US$870M in a sale and manage-back deal. Meanwhile, in March last year, P&R Equipment Finance Corp, a newly for med subsidiar y of P&R, paid US$515.9M to buy 273,200 standard dry freight boxes (circa 400,000 TEU) from Interpool, representing around 74% of Interpool’s operating lease fleet and most of the containers managed for Interpool by its then 50% subsidiary, CAI. Later in the year, CAI bought Inter pool’s shareholding out and is once again independent. All of which suggests that German KG and private investor funding has financed a totas of some 3.285M TEU of leased equipment or just over 30% of the global leased container fleet. Thin margins 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. 54 As indicated earlier, the presence of the new breed of container lessors has served to intensify competition and forced the more established lessors to meet the challenge, which has put severe pressure on margins. Perhaps not surprisingly, some of the larger shipping lines have used the fact that there is now so much choice in the leasing market as leverage with the bigger players to squeeze out five year LTL deals at US$0.63/day or less, which is hardly viable at current newbuild prices. As always, however, there will be one lessor who will accept the deal to get their boxes moving, but there are only so many loss leaders that any lessor - new or old - can take. In a bid to stay competitive, some of the newer container lessors are reported to have agreed to cut their management fees charged to the KG funds to as low as 8% on MLA boxes and 5% on LTLs. The reality, however, is that despite its vast availability, KG funding is not as cheap as other sources of finance available to the more established lessors and lines, including asset securitisation and traditional bank debt, because of the level of return that is guaranteed to the private investors. Indeed, according to some observers, the whole leasing industry may be about to undergo a structural change with the largest lessors, with their ultra low cost of borrowing and ability to negotiate the best deals with manufacturers, meeting the needs of the largest shipping lines Maersk, CMA CGM, MSC, HapagLloyd, Evergreen etc - and the newer KG-funded players serving second tier lines, whose credit worthiness may be more of a risk, but because of that are prepared to pay higher per diems. Either way, one thing seems certain: if too much money continues to be thrown at the container leasing industry, margins are not going to improve and casualties, or at the very least, a new round of consolidation in the leasing sector is inevitable. Ten years ago, there were around 10 lessors competing seriously for LTL business. Today there are closer to 20. And the cake is just not going to be big enough to go round. ❏ February 2007 Section 2 27/2/07 10:50 am Page 55 WorldCargo news CONTAINER INDUSTRY Upsurge in reefer output The latest reefer production figures from Chinese manufacturing sources confirm yet another strong output in 2006, with some deliveries being held over into this year due to the sheer intensity of activity during December. After a very slow start, production surged from the third quarter of 2006 and as much as 35% of the annual total may have been built in the final three months. This boosted output overall for 2006 and defied earlier predictions, which had hinted that production might drop by as much as 10% below the 2005 level. Instead, the final output figure is reckoned to at least equal to that returned in 2005. It is calculated at 170,000 TEU, or 92,500 units, and comprised around 15,000 x 20ft, 1200 x 40ft and more than 76,000 x 40ft high cube units. In addition, over 3500 reefers of more specialised type were built, including various domestic units of 10ft, 12ft, 20ft, 25ft, 40ft, 45ft, 50ft and 53ft length.An almost identical 170,000 TEU was supplied in 2005, amounting to a slightly smaller count of 90,000 units (approximately 10,000 x 20ft and 80,000 x 40ft). Far fewer specials were built in 2005 as well. 14,000 units, lower in 2006 than in 2005 when upwards of 22,000 units were received by the line. Singamas subsidiary Shanghai Reeferco Container Co (SRCC) also increased its profile in 2006, building over 17,000 TEU (9500 units).This comprised 1750 x 20ft and 7800 x 40ft high cubes, and compared with around 15,000 TEU (8300 units) delivered in 2005. The company’s customer base has been widening steadily in recent years, and it secured further substantial business from China Shipping,Wan Hai Shipping, HMM and its principal, PIL, during 2006. It also again built for the majority of leasing companies. SRCC and MCIQingdao each constructed some small runs of specialised reefer equipment in 2006, with the latter producing another 140 units of 45ft Euro type. Machinery producers have similarly enjoyed a dynamic year, although some brands did better than others. Market leader, Carrier Transicold, sold an estimated 58,000 units, which was 10% up on its delivery in 2005 and set a new annual record. Thermo King Corp (TKC) achieved a smaller numerical increase by selling around 12,000 units, the vast ma- jority of which were of Magnum scroll design, while Daikin supplied around 19,000 of its LXE10E version, down a little on production in 2005. The balance of world machinery production comprised 4500 of the new Star Cool model from MCI-Qingdao, plus a residual delivery of around 500 machines from Mitsubishi Reefer, prior to closing its factory in April. All of which adds up to a total of 94,000 machinery units for the year.The discrepancy between the container and machinery figures is explained by the fact that two of the machinery manufacturers quote an annual sales figure, while the other two count only commissioned units. ❏ Carrier consolidated its market leading position in 2006 by selling a record 58,000 reefer units Cronos Reefers Global support Leading the way world February 2007 the CIMC’s main rival is Maersk Container Industri (MCI), which has confirmed an output of 30,000 units (or 55,000 TEU) for 2006. Around 22,000 units (39,000 TEU) came from its main site in Qingdao, and 8000 units (16,000 TEU) from the recently closed Tinglev factory in Denmark. The Danish factory had long been constructing only 40ft high cubes (and almost exclusively for its sister company, Maersk Line). Qingdao, in contrast, is building increasingly for third party buyers, including three leasing companies in 2006. It delivered a mix of 4500 x 20ft and over 17,000 x 40ft high cube reefers in 2006, which compared with just 500 x 20ft and larger tally of 24,500 x 40ft high cube supplied in 2005. The volume of production carried out for Maersk Line was, at an estimated over Lessor business All China International Marine Containers (CIMC) led the way again in 2006, meeting as much as 60% of the global requirement. The CIMC network built at least 100,000 TEU (53,000 units) of “standard” reefer equipment and over 3000 specials. Its two main factories in Shanghai and Qingdao, each contributed around 48,000 TEU, and 4000 TEU was produced by the Tonglee Container subsidiary (TLC). Most the reefer specials also came from TLC, plus CIMC’s dedicated specialised reefer plant in Qingdao. CIMC’s mainstream production in 2006 split roughly as 9000 x 20ft and 44,500 x 40ft high cube, plus 1200 x 40ft (8ft 6in) containers, the latter purchased by Dole Ocean Cargo to replace older 40ft equipment within its fleet. Some of the biggest orders for mainstream 20ft and 40ft high cube equipment were placed with CIMC by Hamburg Süd, Hapag-Lloyd, APL and CMA-CGM, plus many of the top leasing names. However, the biggest buyer was MSC, taking over 8000 x 40ft high cube units from CIMC factories. As in 2005, the majority of CIMC’s 20ft production was carried out at the Shanghai plant. CIMC’s overall production in 2005 numbered 7700 x 20ft, 1250 x 40ft and 38,500 x 40ft high cubes, plus 1000 TEU of specials. A similar 48,000 TEU was constructed at the Shanghai site, as compared with 32,000 TEU at Qingdao and 6500 TEU by TLC. CIMC had earlier reported a cumulative reefer output of around 60,000 TEU for the first nine months of 2006, implying an unprecedented 40,000 TEU production in the final quarter. Its reefer output is also expected to be high in the opening three months of 2007, given the present order backlog, which will contrast with the group’s first quarter 2006 performance when it delivered just 12,300 TEU of reefers across its all factories. Antwerp Dubai Genoa Gothenburg Hamburg Hong Kong Lisbon London Madras New York Rio de Janeiro San Francisco Seoul Shanghai Singapore Sydney Taipei Tokyo • A choice of HGSS or MGSS outer cladding • Carrier and Thermo King machinery with long-term warranties • Corrugated sub-floor with three coat paint system • Micro-processor with humidity control and USDA options • A robust and corrosion-resistant design with construction materials to suit customer requirements • Maximum allowable cargo capacity Cronos Reefers feature an HGSS innerlining with scuff plates • Long term warranties – up to 5 years • Available in 20', 40' and 40' High Cube • Global service support in all major port locations • Available for master, operational and term lease or sale Global service support in all major port locations t 5a 1 C nd ia w a st ss co s on sRu , Mo 07 s y 0 e u ran piskarch 2 e S T Olim M Contact your local Cronos office or visit www.cronos.com 30 SC 27- 55 Section 2 5/3/07 3:59 pm Page 56 WorldCargo news CONTAINER INDUSTRY A box scanner for every port? The use of non-intrusive container scanning technology is fast becoming universal at seaports/ terminals and land border crossings around the world as it is increasingly viewed to be one of the best weapons available in the fight against freight transport crime and the more ominous threat of terrorism. Ever since the 9/11 outrage over five years ago, global seaports have been viewed as being particularly vulnerable to a random strike by terrorists - possibly involving “dirty” or nuclear bombs. It is a recognised fact that a device of this type could very easily be concealed within one of the many millions of freight container circulating globally at any time and be detonated unexpectedly and with devastating effect. Any such act, at the very least, would cause substantial disruption to the transport infrastructure close to the explosion and also likely halt international trade altogether, which would have dire As ports/terminals and land borders contemplate the ongoing threat of “container terrorism” and tackle increased levels of freight transport crime, they are investing more heavily than ever in non-intrusive inspection technology, including X-ray or gamma-ray scanning machines and radiation detectors AS&E container scanning equipment was used to detect this illegal consignment of tobacco in Hong Kong and far reaching economic consequences. Call for action Our innovative trailers and grabs The threat has long been taken seriously by the US Department of Homeland Security and has resulted in a considerable volume of initiatives and directives in recent years, prompting other governments into action and calling for much better surveillance at marine terminals and border crossings both within North America and elsewhere around the world. Although a more recent focus has been placed on the nuclear threat, with seaports now also being encouraged to install sensitive radiation detection equipment, the main recommendation has long been for a mandatory deployment of some form of general scanning device, thereby enabling the contents of all containers transiting through a port area to be rapidly and efficiently checked and confirmed against the manifest. The key is speed, as any inspection procedure has to work within the existing port dynamic and not compromise turnaround or performance. The alternative of relying on random manual container searches has long been deemed unacceptable by the vast majority of port and customs organisations. Instead, an individual search is generally carried out by customs officials only when a container has already been identified as suspicious after its preliminary scan. Radiation source The vast majority of scanners use either X-ray or “isotopic” gamma ray (cobalt-60) radiation sources and models of both types are currently available in a huge range of configurations, including fixed-site, gantry, transferable or mobile. The two operating systems are safe, relatively cheap to use and easily operated by trained personnel. Installation prices have also fallen hugely, as demand - and production - has grown rapidly in the past five years and models increasingly becoming available “off-the-shelf. Many end-users have to date opted for the X-ray type, as it is more powerful, but there has been an increased uptake of gamma-ray models since their initial development in the mid-1990s.A gammaray source is generally cheaper to operate as it requires no external power source and less supporting infrastructure, and despite generating lower energy is still sufficient to penetrate steel of several inches thickness and thus to sufficient depth to completely check a loaded container. Crucially a gamma ray model may be priced up to half that paid for an X-ray equivalent, with the cheapest mobile version now costing US$1M or less. The highest energy X-rays (rated from 4 to 9MeV) are able to pass through a 10in steel thickness and so, in the view of many end-users, offer the most comprehensive scan. However, big advances in imaging technology have improved visual clarity for all designs, including those using a lower power source, and have allowed the overall scanning process to be further speeded up. A typical full 40ft container scan can today be carried out in five minutes or less, with suspect objects identified and notified within seconds. This allows for a slow drive-through by the truck/ container combination, and thus minimal disruption to the overall flow of traffic through the port’s terminals. Many machines also now offer dual-plane viewing, thereby creating a full three dimensional image and enabling even faster interpretation. Gamma growth A gamma-ray scanner has long been provided by the US technological enterprise, SAIC (Science Applications International Corp), in the shape of its VACIS or “Vehicle and Cargo Inspection System,” although this scanning technology has also been strongly championed in more recent years by Nuctech (Nuclear Technology Scanner charges hurting Maputo We are one of the world’s leading specialists in grab- and trailersolutions. This fact, of course, is largely due to our construction experience, innovation and worldwide supply through matching the bulk-, container- and industrial requirements. Let us prove that our solutions match with your highest demands. From within our group of companies we can supply Dump trailers Earth moving machine-equipment Beco Boforce Booms and Fronts 56 Programme: • • • • • • Multi trailer systems Skeletal Trailers Roll Trailers Goosenecks Industrial Trailers Custom made trailers and concepts • Mechanical clamshells • Hydraulic clamshells • Electro-hydraulic clamshells • Electro-hydraulic Orange Peel grabs • Booms and Fronts Beco Bleijenberg Grab-equipment P.O. box 158, 4130 ED Vianen, Holland • De Limiet 18, 4131 NR Vianen, Holland Tel. +31 (0)347 - 323100 • Fax +31 (0)347 - 377780 E-mail: info@ buiscar.com • [email protected] • [email protected] Internet: www.buiscar.com • www.bleijenberg.nl • www.beco-vianen.com A Southern African trade association has warned that the imposition of scanner fees at the port of Maputo is deterring South African companies from using the port. Encouraging South African traders to make use of the port of Maputo is central to Mozambique’s plans for port regeneration and indeed to the economic rehabilitation of the country as a whole. Maputo is closer to South Africa’s industrial heartland around Gauteng Province than the main South African container terminal at Durban.Transport links to the port are being improved so the Mozambican government is likely to react strongly to any suggestion that trade could be impeded. The CEO of the Maputo Corridor Logistics Initiative (MCLI), Brenda Horne, argues that fees charged for the non-intrusive inspection of cargo in Maputo could prompt South Africans to look elsewhere. The MCLI is an umbrella organisation for South Afr ican and Mozambican businesses that are striving to improve transport links between the two countries The new scanning fees, charged by pr ivate fir m Kudumba, are US$100/import TEU, US$70/export TEU and US$40/transit TEU. According to the MCLI, the new charges negate the savings made by shipping goods through Maputo rather than Durban. “The whole idea of the Maputo Development Corridor was that the port and its road and rail links should be attractive to South African exporters. The scanner fees have suddenly under mined this. What’s happening is that the transit cargo from South Africa is being expected to subsidise a Mozambican security initiative,” Horne said. The Mozambican authorities argue that the scanner is required to prevent gun and drug smuggling. ❏ February 2007 Section 1 27/2/07 10:34 am Page 57 WorldCargo news CONTAINER INDUSTRY Co), of China. The latter firm originally grew out of a scientific project based at Tsinghua University (close to Beijing), which was involved in the commercial evaluation of cobalt-60 as an energy source for scanning applications, and commenced trading in 1997 as a subsidiary of the then newly for med Tsinghua Tongfang Co. Its initial objective was to automate the container inspection process at Chinese seaports and land crossings in an effort to stem the country’s growing contraband volumes, occurring on the back of its booming export trade, and increased trafficking of emigrants. Large stationary versions of the company’s newly developed TH-SCAN gamma ray scanner were constructed at 40 sites, across more than 20 separate locations, at the behest of the Chinese government.The Nuctech name was adopted 2002, by which time the company was already fast establishing itself as a major global supplier of container scanning equipment. It had, by early 2006, sold over 140 of its TH-SCAN machines to more than 40 countries on every continent, with the majority supplied during the preceding 5 years. As business has grown, and raised annual production to more than 50 units, so has Nuctech introduced additional models and it today offers five different versions of the TH-SCAN model suited for mobile, high throughout, relocatable/ dual-view, railhead and bulk liquid inspection applications. Recent deliveries have been made to customs authorities in Mauritius, the UAE, the Philippines and to the Danish port of Aarhus. X-rays on top X-ray systems are favoured by the majority of other container scanner suppliers, including Smiths Detection, BIR (Bio-Imaging Research), AS&E (American Science and Engineering), L3 Communications Security and Detection Systems Inc and Rapiscan Systems (part of OCI Systems). US-based Rapiscan Systems also offers its own version of gamma ray device, alongside a range of mobile “medium power” X-ray scanners (operating at 46MeV). These are known as Eagle and were developed/tested originally by ARACOR (Advanced Research and Applications Corp), prior to the latter’s absorption into the OCI group in 2004 and its rebranding as Rapiscan. Recent contracts have been placed with Rapiscan by government agencies in the US, Hungary and Hong Kong, with the former two each purchasing a number of mobile inspection systems. The Hong Kong agency, Electrical and Mechanical Services Dept, signed a US$3.2M multiyear agreement in late 2006 covering the servicing of a high-energy stationary site on the Hong Kong/China border, which was installed by Rapiscan back in 2003. Around US$3.6M in funding has recently been made available to Rapiscan by US Department of Homeland Security for the development of the next generation of container/vehicle screening devices.These, in addition to using the company’s existing X-ray platform, will also be able to automatically detect radioactive materials – and at an even faster throughout rate than has been achieved previously. BIR (also of the US) has long been a bespoke supplier of permanent installations, having erected several at ports in Japan, but also added its own relocatable gantry design, known as IntellX, in 2005. The IntellX relocatable gantry scanner design from BIR through container screening system suited for checking the presence of stowaways, narcotics, arms, explosives, or alcohol, cigarettes and other contraband. The de- vice offers a three-plane viewing capability, from the left and right sides and downwards from above. The low energy source is completely safe and, by creating its unique inference patterns, able to produce high resolution images. The system can also “fingerprint” certain light elemental constituents, including carbon, hydrogen, oxygen and nitrogen, and thus identify many types of drug, foodstuff, ammunition or beverage. AS&E achieved another year of strong sales in 2006, concluding with a US$10M contract placed in late December by global security consultants, Chemonics International Inc on behalf of an overseas client.This involved the purchase of high- energy mobile X-ray systems, which are destined for use in conjunction with a US Agency for International Development (USAID) initiative, and are being provided by way of the collaboration already existing between AS&E and Nuctech. This has now entered its second year and earlier resulted in AS&E’s first sale of its Z Backscatter detection vans to China. Other recent business has involved the supply of a newly designed rugged version of the existing Z Backscatter Van, suited for deployment in harsh environments, plus two OmniView Gantry Systems (worth over US$8M) to the US government and US$45M worth of security equipment, including OmniView and Shaped Energy Gantry Systems, to an unspecific customer in the Middle East. One of its latest orders, placed in January 2007, has concerned a further production of Z Backscatter Vans for users in Europe and the Far East, to a value of US$40M. AS&E is another company to have benefited from US funding and is also developing enhanced radioactive detection equipment as part of the CAARS (Cargo Advanced Automated Radiography System) programme, which was launched to tackle the threat of nuclear attack within the transport chain. Comprehensive range Smiths Detection, which forms part of global engineering conglomerate, Smiths Group, offers one of the most comprehensive ranges of X-ray inspection machine, comprising large fixed-site instal- SMITHS DETECTION because trucks and containers can be guided weapons Containers and trucks can carry weapons, explosives, drugs and people. Yet less than 1% of them are inspected as they travel between countries. Heimann CargoVision X-ray inspection systems by Smiths Detection are built to help Customs, Security Organizations and Border Authorities fight against terrorism and contraband. With over 50 years’ experience, and more than 190 Heimann CargoVision units in use worldwide, Smiths Detection offer the ideal solutions to all of these challenges. Stationary, relocatable and mobile systems designed by Smiths Detection are highly efficient, cost-effective and perfectly adaptable to all security environments. They will guarantee you fast and efficient inspections without disrupting the traffic flows. Smiths Detection has the most comprehensive range of detection technologies in the world today. Thanks to our flexible approach, we adapt our systems to your specific needs and present the best possible solution to your requirements. 36 rue Charles Heller 94405 Vitry sur Seine Cedex, France Tel: 0033 1 55 53 55 55 Fax: 0033 1 55 53 55 35 Advanced imaging AS&E offers its proprietary range of mobile scanners, utilising a specially developed low-energy X-ray source (0.45MeV) and the company’s own patented “Z Backscatter” imaging technique. This US firm played an important role in the 1990s, pioneering the early development of mobile scanning equipment suited for use along national borders or at temporary sites within seaports, and has since benefited from numerous orders placed by US Customs and other agencies. It has also offered its own radiation threat detector since 2002. More recently, AS&E has introduced a more streamlined and compact secondgeneration version of its Z Portal scanner, which is a high-throughput, driveFebruary 2007 www.smithsdetection.com 57 Section 1 1/3/07 3:37 pm Page 58 WorldCargo news lations (rated up to 9MeV), smaller mobile or relocatable units (5MeV and below) and also a “Radetect” device for the identification of trace nuclear materials. It is currently the world’s largest supplier of cargo surveillance equipment and has just announced the setting up of a joint venture with GE Homeland Protection (see below). The Smiths Detection division was greatly enhanced in 2003 following its acquisition of the Franco-German transport security specialist, Heimann Systems, which had originally developed some of the earliest X-ray scanning technology suited for con- CONTAINER INDUSTRY tainer application. The company had already been in production for more than a decade, having sold over a hundred HCV (Heimann Cargo Vision) machines prior to its absorption into the Smiths Group. The HCV (and HISCAN) brand has since continued strongly and today forms the mainstay of the Smiths Detection/ Smiths-Heimann range. Orders worth €10M were placed last year by Belgian Customs for HCV scanning equipment, which has since been installed at Antwerp and Zeebrugge and is now fully operational. It comprises two stationary scanning tunnels, which are housed in specially constructed buildings, and one high-energy relocatable machine for mobile duties. One of the fixed sites featured two lanes, permitting a double row of truck/ containers to be inspected at the same time, while the mobile machine is high resolution and capable of handling over 25 containers per hour. One key new feature of these machines is their ability to distinguish between inorganic and organic materials, by way of an ingenious colour-coded imaging technique. Organic compounds typically found in drugs or ex- The HCV Mobile X-ray scanning system from Smiths Detection seen here scanning new vehicles imported into the US plosives - show up as bright orange when scanned, against a background of blue (for inorganic substances) and green (for mixtures of organic/inorganic). This helps alert customs’ officials to any irregularity with the manifest, and is the first system of its kind to be deployed at a port in Europe. The detection feature was not available when Belgian Customs placed an earlier order for X-ray machines with Smiths Detection some years back. In addition to winning repeat business in Belgium, Smiths Detection secured business from at least a dozen other countries during 2006. It covered the delivery of 25 machines in total, the majority of which were of mobile type. A total of 13 HCVM (mobile) units were supplied, including single units to customers in Chile, Curacao, Madagascar and Paraguay, a set of two to French Customs, three to users in Russia and four to Mali. One HCVG machine each went to Eurotunnel and another unspecified customer in the UK, while two were supplied to Morocco and five to ports in Turkey. Three fixed-site HCVS machines have gone also to Russia, where a new manufacturing facility has recently been brought into operation. One other contract of note concerned the delivery of several high-energy HCV Mobile II trucks to unspecified “strategic” containerports in the US. The equipment has been purchased for a total of US$23M by the US government.The units are built to the latest design and come mounted on standard international truck chassis. They are thus adapted for normal travel on US highways and can be moved easily between different port/terminal locations around the US coast. The X-ray energy source, at 3.8MeV, is sufficient for all container inspection applications, while the scanning unit also incorporates a radiation detector. Contraband bonus As suggested earlier, one important bonus to be derived from the routine use of any type of container scanning machine is its ability to find concealed contraband or firearms, as well as illegal immigrants attempting to enter a country by way of a freight terminal. The latter will often hide inside a transiting empty container and many suppliers have developed low powered, mobile scanners to carry out this type of inspection. However, some of the biggest success stories have been associated with narcotics seizures, as freight containers have long been used to facilitate this illicit trade and for many years were able to carry it largely undetected. One example of a recent exposure concerned 2.25t of cocaine, with a street value of over US$40M, which was discovered at Puerto Caucedo in the Dominican Republic in September 2006.The drug was hidden within a container consignment of peaches destined for Belgium and represented one of the largest seizures made in this region to date. It was detected by a Silhouette Scan CAB 2000 X-ray machine, supplied by Smiths Detection.The port authority conceded that without the presence of its new scanner, which had in fact been delivered only a few days earlier, the cocaine would never have been found. The Silhouette Scan CAB 2000 model is yet another to be designed for portable operation, as the X-ray unit can be dismantled, transferred and reassembled at another location within 30 minutes. It was developed originally by Heimann Systems, and remains one of the most popular models to be offered by Smiths Detection. Another Silhouette Scan machine scored a similar success in Peru, where local customs personnel seized 900kg of narcotics (valued at US$25M) in late 2006 following a routine container inspection. In yet another incident, a mobile VACIS gamma-ray scanning machine, from SAIC, revealed the presence of 82kg of cocaine in a container-load of broccoli and lettuce at Windsor (Ontario). This consignment had travelled inland from California. The large-scale operation of Nuctech TH-SCAN machines Smiths teams up with GE In an effort to further enhance its already prominent position as the world’s leading supplier of container surveillance equipment, Smith Detection has agreed to the formation of a joint venture with the main security division of US 58 giant General Electric (GE) Co. The two partners have signed a letter of intent to form Smiths GE Detection.The Smiths Group will own a 64% share in the new venture, with GE holding 36%, and its board is to comprise four representations from Smiths and two from GE, headed by Keith Butler-Wheelhouse, chief executive of Smiths Group. Stephen Phipson, currently group managing director of Smiths Detection, will be president of the new entity.The long-term aim is to combine the expertise of Smiths Detection with GE’s Homeland Protection division and so create a leading global business to serve the fast growing detection and homeland protection markets. Smiths and GE will shortly sign a definitive agreement, based on the principles set out in their letter of intent, and have agreed to an exclusivity period to allow a final agreement to be reached in relation to the new joint venture. Both partners are taking a long-term view, as there are no voluntary exit rights for the first five years. Through a combination of each of the two partners’ respective technological capabilities, plus the availability of the resources offered by GE’s Global Research Centre, Smiths GE Detection is expected to be well positioned to deliver the next generation of technologically advanced detection and homeland protection equipment worldwide. The setting up of the new venture has followed closely on GE’s proposed purchase of the Smiths Aerospace group, for a total cash consideration of US$4.8B, which was also announced in January. In another recent development, Smiths Detection has opened a brand new production facility in St Petersburg (Russia), to be known as Smiths Heimann Rus. The wholly self-contained site, which was inaugurated last June, is currently assembling X-ray inspection equipment and also providing sales and technical support for the fastgrowing security market in Russia and its neighbouring states. It is due to be expanded to a maximum area of 9000 m2, including administrative, sales, servicing and manufacturing facilities. In addition to serving the local ports/ customs and aviation sectors, the new factory is also aiming to provide security equipment to the expanding private sector. The creation of this plant has significantly increased the overall production capability of Smiths Detection and is enabling the company to participate more fully in local tender processes. X-ray equipment has been purchased and used by customers in Russia for nearly 30 years, and a liaison office was established in Moscow in 1998. The Smiths Heimann Rus division has thus grown out of a long relationship with local technology providers and its parent’s broad and growing customer base. ❏ February 2007 Section 1 2/3/07 3:38 pm Page 59 WorldCargo news CONTAINER INDUSTRY within the Chinese mainland has likewise brought benefits in this respect, as many thousands of illicit shipments of drugs and contraband have been thwarted at mar itime ports and border points throughout the country. The combined value of these confiscations had already exceeded Yuan1B by 2004. The unit supplied by Nuctech to Aarhus in 2006 was also instrumental in detecting almost 5M cigarettes, being brought illegally by container into Denmark, during its first week of operation. Another Nuctech mobile scanner has been working with similar success elsewhere in Europe, recently netting a further illegal consignment of over 2M cigarettes and thereby saving EU customs agencies over €0.5M in lost duty. Terrorist threat port are being checked using the same X-ray inspection and radiation detection techniques as proposed in the HR1 bill, prior to loading onboard vessel. Port Qasim is the Pakistani test site, where remote targeting is to be used, in conjunction with real-time imaging, to provide a comprehensive non-intrusive container examination process. All US-destined containers are to be checked using the approved SFI methods and the findings monitored by way of a live video transmission/feed. Another three ports - in Singapore, South Korea and Oman - are also participating in the programme, although only a percentage of their US-bound container traffic is being screened. In the words of the US Dept of Homeland Security Secretary, Michael Chertoff, the SFI initiative aims to “advance a comprehensive strategy to secure the global supply chain and cut off any possibility of exploitation by terrorists.” The setting up of the SFI programme had been initially prompted by the SAFE Port Act, which was enacted earlier in 2006 and had deemed it necessary to create and test a more thorough programme of “port of lading” scanning. Broader actions Pakistan was keen to contribute to the SFI programme as part of a wider desire to comply with its CSI status and remain on even terms with the US. However, the drive to heighten port security is no longer the exclusive preserve of the US authorities, or of those of participating partner nations, as other countries are now taking steps to launch initiatives of their own. One example is the Philippines, where the national Bureau of Customs (BoC) is due to implement a mandatory system of non-intrusive container inspection at all the country’s gateway ports from this month. Its introduction, according to local reports, followed the signing of Executive Order 592 by the Philippines’ president in January. Eight new scanning machines had already been ordered (from Nuctech in China) and are due imminently to become operational, while the remainder are to be installed/ commissioned later this year. The plan is for all containers to be screened at the majority of ports/terminals in the Philippines, including Manila International Container Terminal, Ma- nila-South Harbour, Cebu, Subic Bay, Batangas, San Fernando, Legaspi, Iloilo, Davao, Tacloban, Surigao, Cagayan de Oro and Zamboanga. More controversial is the means by which the scheme is to be financed, as shippers are required under the terms of EO 592 to pay an additional “security fee” to the BoC equivalent to US$20 per 20ft container and US$50 per 40ft once the new security measures are in place. It is understood that the charge will apply to all import and export boxes that are landed and stored in piers, container yards and freight stations under the jurisdiction of the BoC or within the terminal itself. The extra income received by the BoC is to be used to pay for the equipment, which is being purchased using a grant from the Chinese government. ❏ Although many ports and customs authorities have opted to invest in improved inspection technology because of its proven use in the long-term fight against drugs and contraband smuggling, it has taken the more nebulous fear of terrorism to galvanise a more universal uptake in very recent years. Moreover, as suggested, this global adoption of automated inspection procedures is being encouraged ever-more strongly at a governmental level.The current year has already witnessed the passing of a bill (HR1) through the US Congress, early in January, calling for the mandatory scanning of all US-bound cargo containers within five years and that state homeland security grants should in future be provided on the basis of risk. The HR1 bill states more fully that all inspection is to be carried out using X-ray machines and radiation detection equipment, and that the largest ports (US and overseas) have up to three years to establish such facilities, if they are not already in place. Smaller ports are to be allowed a maximum of five years. This requirement broadly reflects the longstanding recommendation of the bipartisan 9/11 Commission, which has been lobbying for the introduction of much tighter security measure for several years, but if implemented will clearly have a significant global impact. High price tag However, attention has since been drawn to the high price tag associated with the proposed action, even if it is phased in gradually over time, with congressional budget analysts estimating a cost of over US$20B for the entire screening programme (which also includes a 100% inspection of inbound air freight) to be implemented within the US.This is equivalent to half the current annual budget available to the US Department of Homeland Security. Moreover, one key requirement contained within the bill is that all container cargoes destined for the US are inspected prior to leaving the outbound port and that this extra cost is borne by the ocean carrier and/or foreign port authority or terminal operator. Already some observers are suggesting that the HR1 bill was “rushed through” and approved before the full cost implication was realised, even though its content was hardly a surprise. Countering this are the bill’s supporters, including the 9/11 Commission, who are keen to highlight the current readiness of some ports to accommodate HR1, including Hong Kong, where 100% of containers are currently screened on a routine basis. Moreover, over 40 of the world’s leading containerports are now signed up to the CSI (Container Security Initiative), launched almost five years ago, and thus well advanced in their preparations. SFI initiative Even before the passing of the HR1 bill, the US Department of Homeland Security had announced its Secure Freight Initiative (SFI) programme to comprehensively scan US-bound containers being shipped from a selection of international ports. The SFI, costed at US$60M, was scheduled to go live in January 2007 and the main port participants are located in Pakistan, Honduras and the UK, from where all containers destined for US imFebruary 2007 59 Section 1 27/2/07 10:36 am Page 60