HANSA 10-2017

Schifffahrt | Shipping
The major ports on the U.S. East
Coast serve local markets along with
the vast hinterlands that lie to the east of
the »equal transportation cost line« described
by transport expert Robert West
(see sidebar) from the Columbia based
consultancy Duaga. Along the East
Coast of Canada, the local markets are
smaller, and rail connections from the
Maritime Provinces to the mid Continental
hinterlands are more attenuated.
However, a tantalizing opportunity may
exist to trans-ship cargo to ports along
the U.S. East Coast. Three ports could
potentially be hubs, Sydney N.S., Halifax,
N.S. and, possibly, St John N.B. for
shipments down the coast.
Albert Barbusci, Principal at Harbor
Port Development Partners (HPDP) –
the consortium behind »Novaporte«,
the potential deepwater mega terminal
at Sydney, explained to HANSA that a
new terminal at Sydney (with proximity
to Europe on the Great Circle navigation
route) could benefit from economies
scale, with 80% of cargo trans-shipped
to the U.S. East Coast and the balance
sent by rail to Canadian markets including
Montreal. The consortium behind
HPDP, which would be privately funded,
is impressive. It includes Canadian pension
funds, the construction giant AE-
COM and the Asian behemoth Chinese
Communication Construction Company
(the parent of container crane maker
ZPMC). Additionally, if the project
moves ahead, the HPDP team will consist
of port operator Ports America, and
the global design/ engineer firm Stantec.
A tale of two hubs
The Port of Halifax, where the
10,000 TEU »Zim Antwerp« called at
the Halterm facility owned by a Macquarie
Infrastructure Partners fund, is
examining its potential as larger vessels
become the norm. Late last year, the port
began a strategic planning exercise, led
by engineering stalwart Parsons Brinckerhoff,
to prepare for the advent of larger
vessels. A representative of the port
told HANSA: »Infrastructure planning
is well underway as we look at ways in
which we can expand or develop the
necessary pier length required to berth
and service two vessels over 10,000 TEU
simultaneously. In partnership with key
stakeholders, we are exploring various
options to fully understand what is possible
and how it can be developed in an
effcient, cost effective manner.« The representative
noted that: »We are looking
for a solution that will serve the economy
of the region well into the future.«
Where plans are on the drawing
boards, as we can see in Eastern Canada,
the catalyst for investors/ backers to pull
the trigger is a commitment from a major
carrier to call at a facility, an »anchor
tenant«, in the parlance of property developers.
So far, nobody has taken a bite
at this apple. Mr. West from Duaga summarized
the possible role for trans-shipping
along the East Coast of Canada, saying:
»From a high altitude perspective,
the Canadian transshipment is a ‘parallel
concept’ to the Caribbean transshipment
triangle for Asian cargo shipped through
Panama. One can imagine the Canadian
ports serving North Atlantic US ports,
shipped through Suez, and the Caribbean
ports serving the South Atlantic ports
and Mexico Gulf.«
Novaporte to rise with Cosco?
What needs to occur for trans-shipment
to happen? With recent alignments of
companies two amalgamations are
worth watching. The first is the combination
of Cosco and China Shipping
Container Lines (CSCL), now called Cosco
Shipping Lines. The merger dynamics
caused the alliance profile to shift,
the new company joined the Ocean Alliance
(where CSCL had been a member),
and quickly closed a deal which
sees it gobbling up the parent of fellow
alliance member Orient Overseas Container
Lines (OOCL). Another Asian
tie-up is the Ocean Network Express,
or »ONE«, composed of three Japanese
liner giants NYK, K Line and MOL.
Novaporte’s star may rise with Cosco’s
might. Though it currently operates
its Asia/USEC services through Panama,
if Cosco were to be lured towards Suez
(where its alliance partner CMA CGM
already routes its vessels), the Canadian
trans-ship option could take on real viability.
In Halifax, multiple moving parts
would need to fall into place. Ceres Terminals
is wholly owned by ONE member
NYK. The Japanese carriers are already
transiting via Suez for 2 of 5 strings in
their Asia/USEC services, would need to
shift more capacity to Suez. If rumoured
plans to move the Ceres Terminal (presently
restricted by bridge heights), or
Halterm, across the harbor to less congested-Dartmouth,
actually coalesce,
then deep drafted megaships could more
readily call Halifax.
M
Panama, Suez and
North Americas Ports
»Neo-Panamax« vessels, with capacities
of up to 13,000 TEU began calling at
ports along the U.S. East Coast and
Canada. Recently, the newbuild
14,400 TEU »CMA CGM T. Roosevelt«,
after claiming the title of most capacious
container vessel to transit the Canal,
called the coast at Savannah, Charleston,
Norfolk, and then New York – where
the newly raised Bayonne Bridge allows
an airdraft of 215ft, with cargo
inbound from Asia. Further north, the
10,000 TEU »Zim Antwerp« called at
Halifax in late June (following a call at
the Port of New York).
These accolades come at a time of
swelling trade volumes; mid 2017 TEU
throughputs for East Coast ports suggest
double digit overall TEU growth
(> 10%), compared to 2016. Imports,
the mainstay of box moves, have benefitted
based on the strong US$, and the
steady, albeit modest, economic
growth in the States. The East Coast
has picked up additional cargo. Robert
West from Duaga, explained to HAN-
SA that: »Most of the shift to the Panama
Canal (from USWC) happened
before the new locks were open. Of
course, there was a slight surge after
the opening, once the shipping lines
realized that it was going to happen in
fact.« He added that: »The ‘equal transportation
cost line’ at which the cost is
the same from either coast has shifted
more to the west, thereby giving the
USEC ports a bigger market to serve
inland.«
Attention-grabbing laurels for »biggest«
and »most TEUs« along the
USEC should not distract market
participants from the broader influences
swirling around the dynamic
market. The Suez Canal (reconfigured
in 2015 to handle larger vessels) hopes
to lure Asia/ US East Coast traffc away
from Panama. After having cut its rates
on oil tanker transits, it is set to
lower tolls in container vessels, starting
in October, 2017. Panama, in the
meantime, is set to adjust its tolls in
order to attract more backhaul (Atlantic
to Pacific) business for large »Neo-
Panamax« vessels. Meanwhile, on the
vessel side, new constellations resulting
from mergers or cooperation agreements
among carriers have created
the impetus for shifting trade routes.
HANSA International Maritime Journal – 154. Jahrgang – 2017 – Nr. 10 25