misinformation

JUNE 2015Durres disputeFollowing a legal battle overa “stop order” issued severalmonths ago by Durres Port Authority(DPA) in Albania againstcrane use by Durres ContainerTerminal (DCT), the operator ishoping that it may soon be ableto work with two or three cranesinstead of just one.DCT is part of Turkish GroupKurum, which won a 35-yearconcession over two years ago. Aspart of its US$30.5M full-terminvestment commitment, DCTintroduced three mobile harbourcranes worth an estimated €10M– a used Gottwald from Turkey, aused Fantuzzi Reggiane from Italyand a “little used” Terex crane.DCT purchased the cranesas an alternative to renting twoDPA cranes it considered outmoded,but DPA declared thatthe Gottwald was “out of standard”and could damage the berth,and it ordered DCT to removeit. DPA allowed DCT to operatethe Terex crane, but the Fantuzziunit could be used only after theGottwald was taken away.DCT took the case to the AdministrativeCourt and won, butDPA now has an appeal pending.DPA’s director, Gazmend Shalsi,said: “DCT understood perfectlythat they needed our authorisationto operate their cranes,www.seacom-marine.chwhich are out of standard and socannot work.”Currently, DCT caters forweekly feeder calls by CMACGM, MSC and ZIM, from theirrespective hub ports in Marsaxlokk,Gioia Tauro and Haifa, plusa weekly shortsea call (from Castellón)by Medazov Line. It hadhoped to attract Hapag-Lloyd,but the line opted for Bari instead,and just now there is talkof Hanjin introducing a call. Theterminal handled 99,350 TEUlast year, compared to 109,054TEU in 2013.Kurum, a major steel group,was awarded the DCT concessionas compensation for DPA’sappropriation of the DurresShipyard site in 2011, whichDPA wanted for a new cementterminal as part of the 2009Durres Port Masterplan.That Masterplan was predicatedon introducing private sectorconcessions to attract new investmentsand business, but this post-Communist model looks likeit is falling apart. In mid-June,the terminal of German-backedEMS Albanian Port Operator(EMS APO) was occupied byworkers and management fromthree rival bulk operators andforced to shut down.DPA has previously instructedAlbania is proving a difficult place forterminal operatorsEMS APO several times to stopall stevedoring activities, includingthe stuffing of chrome oreinto containers. Just a few daysbefore the occupation, DPA reportedlystopped a train on theway to the terminal and ordereda vessel waiting to unload scrapmetal to move to a berth still underits own control.“This is a blatant attempt torub out a company that scrupulouslyfollows all Albanian laws,pays all rents and taxes on timeand to the last penny,” said ManfredMüller, MD of EMS APOand CEO of EMS-Fehn-Group.“There is not a single complaintby our customers and our staffare happy to work for EMS APO.The only thing we have donewrong is refuse to pay any bribes.”ROLLTRAILERS // GOOSENECKSDRAWBAR TRAILERS // CHASSISLIFT TRAILERS // CASSETTESSany’s EC masttruck surpriseAs revealed on WorldCargo NewsOnline on 10 June, GermanybasedSany Europe GmbH (formerlySany Germany) has signeda contract with NetherlandsbasedVan Doorn Group for six(plus one) seven-high stackingdedicated EC mast trucks. Allsix machines will work at VanDoorn’s Maasvlakte depot inRotterdam. The customer for thefirst-built machine is understoodto be PSA Sines in Portugal.Sany has caused some surprisewith this EC development.Of course, an EC mast truck isa must for any heavy lift truckspecialist, but it has leapfroggedthe 16-1200 and 30-1200 FLTsthat were thought to be next onSany’s list for European homologationafter its reach stacker.The new ECHs are designatedSDCY100K, with a capacityof 8t on a wheelbase of 4.55m.They are based on a 30t FLTchassis, which is natural, givenSany’s 30-1200 work. The 16-1200 chassis would be too small53ft box developmentsThere have been two importantdevelopments in 53ft containermanufacturing. First, CIMC haswon an intellectual propertydispute with Singamas-ownedQingdao Pacific Container CoLtd (QPCL) in the China SupremeCourt for a patent infringementrelating to its “APCShipping platform technology”for transporting 53ft US domesticcontainers on standard cellularcontainer vessels.APC (Adapt Platform forContainer) is a racking systemthat can be placed on top ofstandard 40ft corner castings orcontainers. The twistlocks on theother side of APC platform arespaced further apart for the wider53ft boxes.CIMC claimed QPCL copiedthe APC design in breach of itspatent rights. It regards the caseas an important test of its patentand light, and there is nothing inbetween.In developing this new product,said Tigran van der Linden,Sany Europe’s sales manager forport equipment, particular attentionhas been paid to mast designand construction, and mast cylinderpositions, to ensure stabilityand driver comfort at highstacking heights. Width overfront tyres is 4.1m. The machinesare fitted with a Stage IV Volvo8-litre engine and a Kessler D81drive axle.Sany Europe has a dealer forport equipment in the Netherlands(Kuiken NV), but the VanDoorn contract is directly betweenOEM and end-user. Theprice has not been disclosed althoughthe contract is heavilyfocused on service and performanceguarantees.Rob Van Dijk, director of VanDoorn Container Depots BV,told WorldCargo News that thecompany typically requires its EClift trucks to work 3,000 hours/portfolio and has been fighting tohave the issue addressed in Chinasince 2008. Zhang Baoqing, vicepresident of CIMC group, said:“This event has fully proved theimportance of technology patents,our competitor paid lotsof resources for this litigationbut eventually CIMC won.” (See‘CIMC wins legal battle’, page 18”)Meanwhile in the US, fledgling53ft container manufacturerAmerican Intermodal ContainerManufacturing (AICM) is set toenter the market on a significantscale. AICM, headquartered inNorthern Alabama, is completinga new factory in the BartonRiverview Industrial park. Itsproduction line will be heavilyautomated, including the blastingand painting stages, and will havea capacity for 15,000 containersper year.continued on page 17year and the average number oflifts per hour is 20 – for 60,000moves a year high uptimes areabsolutely critical. The new machineswill replace some Kalmarand Terex ECHs.They are slated for deliveryearly next year and will be fittedwith the Elme 582 double box attachmentwith double twistlocksto handle 2-over-6. The machinefor PSA Sines is fitted with theElme 584 double box attachmentwith side clamp and hook.The first Sany Europe EC masttruck outside the TOC CSC Europeexhibition hall in Rotterdam,prior to delivery to (it is understood)PSA SinesSingle sourcing automationAutomation was a leading topicat the TOC CSC Europeconference in Rotterdam thismonth. Giving the keynote address,Frank Tazelaar, managingdirector of APM TerminalsMVII terminal in Rotterdam,said there is a lot of misinformationin the industry about howterminals should approach automationprojects, and he called onthe vendor community to adopta more “professional” integratedsystems engineering approach toautomation.Speaking to WorldCargo News,CIMC’s APC racks enable 53ft boxes to be carried on deck on regularcontainerships.Tazelaar said container terminalautomation still has a long wayto develop before it reaches thepoint where a single vendor cansupply a complete system. APMTerminals continues to supporta best-of-breed approach to selectingtechnology and is lookingfor vendors to supply “buildingblocks” rather than completesystems to support its continuingautomation plans.On the same day, Cargoteccompanies Kalmar and Navislaunched OneTerminal, an“integrated automation solutionfor the container terminal industry,consisting of Kalmar andNavis software, equipment andservices”.continued on page 4IN THIS ISSUENEWSPulser from Liebherr 2Abu Dhabi for Genoa? 6Yolanda for Valparaíso 7Limassol to privatise 9Shippers berate carriers 14CSX expands NWOH 16New Kögel chassis 17Bulktec from Rhenus 18PORT DEVELOPMENTMiddle East magnetism 19SHIPPINGBig ships debated 21CARGO HANDLINGTerex strides forward 22Future crane control 23Kalmar’s special K 25Next generation Ottawa 27SEACOM AG · Berbiceweg 5 · CH-8212 Neuhausen Switzerland · Tel: +41 (0) 52 632 04-00 · Fax: +41 (0) 52 632 04-09REEFER INDUSTRYBox builders on the up 28Monitoring conundrum 31

CARGO HANDLING NEWSLiebherr launches Pulser reach stackerLiebherr has launched a newreach stacker, the LRS 545Pulser. As previously suggested inWorldCargo News, the new machineuses a conventional straightboom instead of the uniquecurved “banana” boom of theLRS 645.The 4-high stacking LRS 645continues to be available, includingin the “LH” log handlingversion, but not with a curvedboom, even though it providesa natural negative lift capabilityfor container-on-barge handling,without the need for a boomhead extension.In the 10 years since the LRS645 was launched, Liebherr isunderstood to have sold around150 machines – a drop in theocean; last year alone the worldmarket for laden handling reachstackers is estimated at 1,800 machines.The company recognisedthat it needed to come up with aless expensive design that driverswould take to more readily.Interestingly, however, Pulserhas the same Liebherr hydro-static drive concept used in theLRS 645, because Liebherr alwaysaims to maximise its ownin-house production and technology.Technically, hydrostaticdrive is a great solution, but onoperational grounds, at least inthe opinion of some observers,it could prove to be a stickingpoint. One expert commented:“If Linde, the master of hydrostaticdrive, could not make asuccess of it with bigger trucks,what chance has Liebherr got?”The LRS 545 shown at thismonth’s TOC CSC Europe inRotterdam was headed for RavennaPort Authority in Italy,which will initially rent the machinewith a view to purchase.Around 10 machines will bedelivered to different terminalsfor proving trials and every effortwill be made to incorporatepositive feedback into series production.Obvious points includeprovision of shallow access stepswith handrail instead of a verticalladder, and perhaps cameras/in-cab monitor to enhance theAround 10 LRS 545s will be deliveredto terminals around Europefor six months of proving trials andto obtain wide feedback before seriesproduction begins next yeardriver’s rear view.The LRS 545 is available withthe latest Stage IV LiebherrD944 engine, developing 230kW at 1,700 rpm. For higherproductivity, Liebherr’s provenPactronic hybrid hydraulic drivecan be fitted, although it is notclear that faster speeds are reallyneeded on a reach stacker.The machine has an SWLunder the Elme 817 spreader of45t in the first row up to 4-high,with 40t in the fifth tier, and 31tin the second row up to 5-high(5 x 8ft 6in), or 4-high (4 x 9ft6in high). Standard options includean electrically driven forwardslide for the cab, to improvethe driver’s view when handlingtrailers or swap bodies under anElme combi-attachment, andfront support jacks. With jacksdeployed, second row capacityis increased to 35t without increasingthe tyres from 18.00-25to 18.00-33 size. Magna MB01tyres were fitted on the Ravennamachine unveiled at TOC CSCEurope.The LRS 545 is a productof Liebherr Maritime Cranes.Rostock is the main productioncentre, but machines can also besupplied from Nenzing and Sunderland,according to customerlocation. The reach stacker remainsLiebherr’s only lift truck,but it can readily be combinedin packages with the company’ssuccessful range of cranes.ZPMC receivessecurity clearanceZPMC has advised that India’sMinistry of Defence has releaseda “no-objection clearance for theinstallation of cranes by ShanghaiZhenhua Heavy Industries CoLtd (ZPMC)”.In a statement to WorldCargoNews, ZPMC said: “This is in relationto the two projects, ICTPL(owned by Gammon Group) inMumbai and DBGT (DakshinBharat Gateway Terminal PrivateLtd) in Tuticorin, which had bothsuspended the potential purchaseof ZPMC cranes due to restrictionsfrom the security clearancesystem.” The order for ICTPLconcerned six STS cranes and 20RTGs.The requirement for a securityclearance added another bureaucratichurdle at a time when Indiawas supposedly targeting reformto make infrastructure investmentsimpler. While the Ministry ofDefence has given clearance in thecase of these two projects, ZPMChas still not been able to determinewhether or not clearancesfor future orders will be required.Despite exhaustive enquires inIndia, Mr Li Qiang, general managerof ZPMC’s Indian branch,has been unable to find any lawsor regulations that set out theclearance requirements. Thereappears to be no procedure bywhich it can apply for a generalsecurity clearance, and ZPMCwill only know if such clearanceis required if a government officialdetermines this is the case. Nevertheless,ZPMC maintains thatit “shall endeavour to renew thesupply of high quality cranes andservices to all terminals and portsin India, as was the case prior tothis situation”.Finnish firms’ RTGsto Piraeus/EgyptKalmar and Konecranes haveboth booked repeat orders fromterminals for RTGs.Kalmar has announced a secondrepeat order for an additionalnine all-electric RTGsfromPiraeus Container Terminal(PCT) S.A. in Greece, a whollyowned subsidiary of COSCOPacific Limited. The deliveriesare scheduled for 2016. Kalmar’sprevious deliveries to the terminalconsisted of 12 E-RTGs in2013 and nine E-RTGs in 2015.Mr Li Jianchun, deputy generalmanager of PCT, commented:“These latest Kalmar E-One 2Zero Emission RTGs will beworking in the Pier III expansionarea, helping us to enhancecapacity in the yard. The E-RTGsapply new technologies that enhanceproductivity, reliability andflexibility, which we consider tobe tremendous achievements.The cranes will be manufacturedat Rainbow-Cargotec Industries,like the previous ones delivered byKalmar. We have been extremelysatisfied with both the cranequality and on-time deliveries.”The RTGs will be 9+1 rowswide, with a 41t SWL capacity.The all-electric system supportsKalmar’s “industry-leading” maintenanceinterval of 1,000 hours.In Egypt, Branch DamiettaContainer & Cargo HandlingCompany has ordered four newKonecranes RTGs. This will beKonecranes’ second RTG deliveryto Damietta, following sixmachines delivered in 2009.“The Konecranes RTG craneson order for Damietta are highperformance,16-wheel RTGswith a lifting capacity of 40t, astacking height of 1-over-5, anda stacking width of seven plustruck lane wide. The RTGs willbe equipped with KonecranesActive Load Control system,which prevents container swayand significantly improves containerhandling performance. Thecranes are scheduled to be delivered,fully erect, during the summerof 2016,” Konecranes stated.SLPA to buy cranesA crane tender is set to be issuedby the Sri Lanka Ports Authority(SLPA) shortly. The SLPA has investedUS$80M in the first 400mof a new 1,200m long quay at itseast container terminal, and workis nearing completion.As a state entity, the SLPAneeds government approval forlarge capital expenditure, and ArjunaRanatunga, Minister of Portsand Shipping, put forward a proposalto purchase four STS cranesand 12 yard gantry cranes. Thismonth, the Sri Lankan Cabinetapproved his proposal to procurethe cranes following the “internationalcompetitive bidding method”prescribed in its GovernmentProcurement Guidelines.APM Terminals call for“a sensor revolution”Speaking at this month’s TOCCSC Europe conference inRotterdam, APM Terminalshead of Design and Automation,Alex Duca, called for a “SensorRevolution” on container terminalhandling equipment. Theterminal operator wants to seesensors on all moving equipment,so it can use the powerof data to measure its businessperformance. APM Terminals isstriving for consistency of operationalprocedures across itsfacilities, and having data is keyto measuring performance inthis regard, and achieving improvement.Equipment and componentsuppliers are well aware of theInternet of Things, and monitoringsystems using sensor dataare available for everything frombrake components and cables, tospreaders and twistlocks. Speakingto WorldCargo News, Ducasaid APM Terminals does notwant to be overwhelmed withdata at the component level.The key, is data on the locationof all the equipment, includingexternal trucks, and people onthe terminal, in order to try anddrive standard operating proceduresthat make terminals bothsafer and more efficient.2June 2015

CARGO HANDLING NEWSTTS introduces SafeRollTTS Liftec Oy, part of TTS Group ASA,has introduced a new, patented product,Liftec SafeRoll, to increase the safety ofdriving cassette/translifter loads on rororamps. The first units will be deliveredto Euroports Finland Oy in Rauma(formerly Rauma Stevedores Oy).Rauma has been using the cassette/translifter system since the early 1990sand today has a fleet of 15 TTS Liftectranslifters, operated mainly with a fleetof Terberg RT283 ro-ro tractors. “Traditionallythe cassette system is knownfor its safety and efficiency,” said TTSLiftec’s managing director Olli Mäkinen.“The new system takes ro-ro andsto-ro cargo handling a step further.”SafeRoll is analogous to the [Terberg/Catracom]Safeneck system introduceda number of years ago to improvethe safety of handling heavy rolltrailers. It uses the same low connectionpoint to the tractor instead of hitchingthe load to the fifth wheel, but is specificallydesigned for use with cassette/translifters. In Rauma’s case, this meansLTH 90 translifters, which permit payloadsof more than 85t.The low connection point ensuresthat the load on the tractor’s front andQatar’s bigspendQatar New Port Project (QNP) iscurrently at different stages of preparingand evaluating five separatetenders for port equipment for thenew Hamad Port, south of Doha.Eight STS cranes and 26 RTGs fromZPMC are already on site and theport is now tendering for mobilecranes and other equipment. Purchasingplans include:12 mobile cranes with lifting capacityof 90t at 3m radius.7 mobile harbour cranes capable ofhandling 50,000 dwt vessels, plus 6spreaders.35 FLTs with capacities between 3tand 45t.5 empty container handlers.5 reach stackers (41t capacity).94 terminal tractors, 92 4x2 unitsand two 4x4 machines with a GCWof 80t. 118 trailers, including 62 bombcarts, 55 roll trailers (80t), 7 heavydutyroll trailers (100t) and 4 spreadertrailers.QNP plans to award all the tendersin Q3 2015, and the projects arelisted as “ending” in Q4. The portplans to begin operations handlingro-ro and livestock cargo this year,with full operation, including Phase Iof the container terminal, scheduledfor December 2016.New Mafiheavy tractorMafi Transport-Systeme GmbH haslaunched a new version of its 45t fifthwheel tractor aimed at heavy industrialapplications, designated HD 445. Themodel, presented at the Transport LogisticsFair in Munich in May, is equippedwith a Stage IV Volvo engine with anoutput range from 235 kW to 285 kW,and the latest ZF 6WG 310 automatictransmission with a gear warning system.GCW is up to 250t.The spacious cabin is said to provideexcellent visibility and is fitted with aclearly laid-out instrument panel withmultifunctional display. The driver’s eyelevel is around 3.5m above ground leveland the cabin is fully ROPS-tested. Fifthwheel elevation is over 1m, providinga maximum coupling height of 2.42mabove ground. All service points are easyto access.Like the earlier MT45, the new modelis also suitable for very heavy ro-ro applicationssuch as handling SECU boxeson/off ships, added Mafi.rear axles is more evenly distributedwhen pulling a load up or down theramp. There is always a safe load on thetractor’s front axle, even when pulling aheavy load up a ship’s ramp, preventingthe tractor rearing up.Up ramp, assuming an 85t payloadand an 8-deg grade, the tractor rear axleload is 29.6t and the front axle loadis 9.6t, enough to keep the wheels onthe ramp. Down ramp, with the samepayload and angle, the rear axle load is20.8t and the front axle load is 18.3t.These almost even loads extend axlelife, and there is always sufficient loadon the translifter axles to ensure safebraking.“SafeRoll eliminates the possibilityfor most typical handling errors, whichcan be dangerous or damage the equipment,”said TTS Liftec’s product managerHannu Kukkola. Higher payloadscan be carried on steeper ramps (tideaffected),improving efficiency whenloading the ship and adding flexibilityfor the ship’s cargo plan because heavycargo can be placed on the weatherdeck or tank top. An 80t payload on an8-deg ramp is a typical requirement, butthis is less than the technical upper limitfor SafeRoll, adds Kukkola.The axle loads are always safely belowthe Terberg RT283’s rated axlecapacities. In addition, the connectionelement between tractor and translifterhas generous tilting angles in all directionsand eliminates all the torsion effectsthat could harm the tractor’s rearaxle.When hauling a ca.88-89t gross load up ramp, SafeRoll ensures that there is sufficient masson the front axle to prevent the tractor lifting up at the frontJune 2015 3

AUTOMATION NEWSStandard interfaceVOLUME 22 NUMBER 6 • ISSN 1355-0551EDITORIAL:PAUL AVERY • EDITORIAL DIRECTORE-Mail: pavery@worldcargonews.comBENEDICT YOUNG • MANAGING EDITORE-Mail: wcn@benedictyoung.comVINCENT CHAMPION • CONSULTING EDITORE-Mail: vchampion@worldcargonews.comJOHN FOSSEY • CONSULTING EDITORE-Mail: fosseyjj@gmail.comJOHN BANKS • CONSULTING EDITORE-Mail: jbanks@worldcargonews.comCHRIS MUNFORD • CONSULTING EDITORE-Mail: cmunford@worldcargonews.comJANE JACKSON • PRODUCTION EDITORproduction@wcnpublishing.comADVERTISING:SIMON PESKETT • ADVERTISEMENT DIRECTORE-Mail: speskett@worldcargonews.comMIKE FORDER • COMMERCIAL DIRECTORE-Mail: mforder@worldcargonews.comJAYANA AUSTIN • ASSISTANT ADVERTISEMENT MANAGERE-Mail: jaustin@worldcargonews.comADMINISTRATION & CIRCULATION:GILL TILBURY • OFFICE MANAGERE-Mail: gtilbury@worldcargonews.comNICCI VIGORITO • SALES & MARKETING COORDINATORE-Mail: nvigorito@worldcargonews.comITALY AGENT:EDICONSULT INTERNAZIONALETelephone: +39 010 583684 Fax: +39 010 566578E-Mail: genova@ediconsult.comLATIN AMERICA AGENT:VICTOR GALLARDO, MUNDOMARITIMO LTD.Telephone: +562 2326 2593 Fax: +562 2326 4022E-Mail: victor_gallardo@mundomaritimo.clJAPAN AGENT:HIDEO NAKAYAMA, NAKAYAMA MEDIA INTERNATIONAL INC.Telephone: +81 3 3479 6131 Fax: +81 3 3479 6130E-Mail: nmi@tka.att.ne.jpKOREA AGENT:JO, YOUNG-SANG, BUSINESS COMMUNICATIONS INC.Telephone: +82 2 739 7840 Fax: +82 2 732 3662E-Mail: biscom@unitel.co.krPUBLISHED BY WCN PUBLISHING LTDThe Coach House, 24 Bridge Street, Leatherhead, Surrey KT22 8BX,England. Telephone: +44 1372 375511 Fax: +44 1372 370111SUBSCRIPTIONSSubscriptions are available from the address aboveor via our website:www.worldcargonews.comEntire contents © WCN Publishing Ltd 2015The Port Equipment manufacturer’sAssociation is continuingto develop a set of standardisedinterfaces for communication betweenTOS and equipment controlsystems for container handlingequipment.The standards, launched atTOC CSC Europe 2014, aim tofacilitate simpler integration betweenTOS providers, equipmentmanufacturers and automationsuppliers, and include a full libraryof message sets for standard itemsin a container terminal workflow.These cover job list messages,CHE position notification,container pick/place actions andtwistlock signals.Updating the industry at TOCCSC Europe in Rotterdam thismonth, Kari Rintanen, managerport technology researchat Konecranes, said the standardcontinues to evolve. It has not atthis stage been put to use in a liveimplementation, but this reflectsthat most of the projects at thego-live stage this year were startedbefore it was developed. PEMAmembers were cautiously optimisticthe interfaces will be usedin the near future.In a discussion on the PEMAForum at TOC, PEMA membershighlighted that standardisinginterfaces is an important firststep towards making integrationeasier, but the sequence of messagesalso has to be agreed upon.This depends to a large extent onthe equipment selection and operationprinciples of the terminal,and cannot be fixed as a standard.The extent to which PEMA’sinitiative can make integrationeasier is unclear. Dr. Oscar Pernia,director product management automationat Navis, said part of thereason integration remains such achallenge is that vendors are stilldeveloping modular “products” tomeet the wide variety of operationalrequirements from terminaloperators. There is still enormousvariety in the way different systemshandle exceptions in particular.Defined interfaces can help,but they need to be matched witha basic testing suite that closelymatches the real production environment,or in other words theway systems will behave when theoperation encounters exceptions,congestion or bottlenecks, DrPernia emphasised.PEMA Technology Committeemembers agreed that a set of basictesting suites would be a step forward,but it is not clear at this pointwhether the PEMA communityis prepared to take this forward.Two from KalmarKalmar’s new 5th generation ASC crane is 10% lightercontinued from page 1OneTerminal is based on three“initial concepts” for automaticstacking crane (ASCs), automatedstraddle carriers (AutoStrads)and automated RTGs.For each system, OneTerminaloffers an integrated combinationof equipment, the Navis N4TOS, and the Kalmar TerminalLogistic System (TLS). One-Terminal also covers the projectservices that will support theterminal through the design andimplementation phases.Speaking to WorldCargo News,Frank Kho, vice president, OfferingDevelopment at Kalmar,said one of the biggest problemsbringing together multiple vendorson automation projects isdefining and identifying who isresponsible when technical issuesarise. A single vendor avoids theKalmar has announced new developmentsin ASCs and automatedRTG. With regard to thelatter, it is retrofitting remotecontrol technology to 11 RTGsat PSA Sines Container Terminalin Portugal.After a pilot project with oneremote control (RC) desk, thecompany has placed an order forseven further desks to operate itsfleet of 11 Kalmar RTGs, deliveredearlier this year.A total of 11 Kalmar E-One²RTGs will be controlled remotely.They are powered by cable reelwith fibre optics for data, and featurean anti-sway system, Smart-Rail autosteering (using GPS andGlonass) and SmartStack containerposition detection.In rail mounted ASCs, Kalmarhas announced two of its new5th generation design will be deliveredto TraPac in Los Angelesnext year. TraPac has 27 KalmarASCs and 28 Kalmar automatedstraddle carriers.The 5th generation ASC is 10%lighter than the previous design,with a single-platform machinerytrolley, segregated transformerhouse and a more spacious e-house. PROFINET, the standardfor time-critical industrial Ethernet,is used to reduce the numberof components and the amount ofcabling required, thus increasingreliability and overall productivityof the entire crane.Again, Kalmar is emphasising itcan deliver “pre-integrated automation”,in this case by integratingthe automated truck handlingon the landside, AutoShuttles as ahorizontal transport system on thequayside, and the ASCs themselveswith its TLS automation system.inevitable “finger pointing”, hestressed.In Kho’s view, OneTerminalis fully consistent with the desirefrom terminals for more certaintyaround the cost and time toimplement automation. Havingfull control over the project, headded, enables Kalmar and Navisto take more responsibility in thisregard.Kho emphasised that OneTerminaldoes not mean Kalmar canmeet every automation requirementout of the box; it focuses onthree systems that the companiescan deliver as modular products.Other equipment OEMs havequestioned how the concept ofOneTerminal affects Navis’s status.As a hardware-agnostic softwaresupplier, Navis can workwith customers wanting to usenon-Kalmar equipment. One inPasir Panjang openThe Prime Minister of Singapore,Mr Lee Hsien Loong, hasofficially opened PSA SingaporeTerminals’ latest Pasir PanjangTerminal (PPT) Phases 3 and 4development.The new berths, which havebeen handling vessels since late lastyear, are part of a S$3.5B project,with almost 6,000 metres of quayand up to 18 metres draught, specificallydesigned to serve the nextgeneration of mega containerships.“When the expansion is fullyoperational, by the end of 2017,Singapore will be able to handlea total of 50M TEU of containersannually,” stated PSA. “PPT Phases3 and 4 feature class-leadinginfrastructure and the latest portinnovations, such as a zero-emission,fully-automated electric yardcrane system. Such technologieswill help to raise port productivity,enhance PSA’s ability to managegreater business complexity andcreate more higher-skill-based careeropportunities.”The government of Singaporehas begun work on the Tuas MegaPort project, which will eventuallyhouse all the island state’s containeroperations at a huge facilitywith a capacity of 65M TEU.Work is still continuing, however,on the PPT expansion. In January,ZPMC announced an orderfor 20 STS cranes and 76 ASCsfor the facility, and it is rumouredPSA has exercised options thatbring the total to around 150cranes. This is believed to be justthe start of a massive procurementprogramme, as PSA graduallyrelocates to Tuas. Many ofthe cranes at its older Singaporeterminals are unlikely to be relocated,and the procurement forTuas is believed to be on a scalethe industry has not seen yet.Getting started – Singapore’s Prime Minister (pink shirt) officially openingPasir Panjang Phases 3 and 4particular believes there is plentyof evidence that non-KalmarOEMs can and have successfullyintegrated with Navis, andthis point is actually not wherethe most difficult issues with automationreside. Terminal operators,it was noted, have expresseda desire for open integration sothey can more easily use differenttypes of equipment with theNavis TOS.Andy Barrons, Navis chiefmarketing officer, said OneTerminalis not inconsistent withthese goals. “Navis’s approachis to continue to use standardisedinterfaces for automation,rather than develop customerinterfaces for each equipmentprovider, and this is consistentwith maintaining a hardwareagnosticcompany. Developingcustomised interfaces is not scalableor beneficial in the longrun for customers.“The purpose of Kalmar One-Terminal is to provide terminalswith an alternative to knittingall the components togetherthemselves, and create an overallsolution to automate their operations.The need to constructa solution from multiple componentsincreases the complexity ofthe project implementation andongoing support. Instead withKalmar OneTerminal, customersnow have the option to workwith a partner who can providean integrated solution for themain components of an automatedterminal.”Separately, Bill Walsh has lefthis position as president andCEO of Navis. CFO Rob Dillionis acting as Interim CEOuntil a replacement is found.4June 2015

NEWSAutomate, connectand control with Cavotec’sinspired engineering.Cavotec is a global engineeringgroup that manufactures powertransmission, distributionand control technologies thatform the link between fixedand mobile equipment in thePorts & Maritime, Airports,Mining & Tunnelling and GeneralIndustry sectors.May 2013 5

Abu Dhabi for Genoa terminal?Abu Dhabi Terminals (ADT),the private joint stock companyowned by Abu Dhabi PortsCompany, Mubadala and MubadalaInfrastructure Partners, isbeing tipped as the likely partnerfor Messina Line at the latter’sTerminal Messina at Ronco Pierin Genoa, in a new 50:50 jointventure that could be sealed nextyear.Messina has a long presence inthe Gulf and has strong connectionsin Abu Dhabi, while ADT,which operates the new Khalifaautomated container terminal onbehalf of Abu Dhabi Ports, officiallyaims “to bring Abu Dhabito the table of world-class terminaloperators and to rank amongthe first 20 global container operators”.A tie-up would be a verypublic step in this direction andcould pave the way for 8,000-10,000 TEU vessels at RoncoPier. However, the expansionproject, which is centred oninfilling between Ronco andCanepa Piers, financed by theport authority with EU support,has been delayed until 2018.Messina group has been rumouredto be planning to divestsome of its companies since December2012, when the controllingfamilies (Messina, Gais andCalì) restructured the businesses,putting all non-core activities underfinancial holding Finemme,and establishing “newco” IgnazioMessina to take care of shippingand Terminal Messina for portoperations.Since then, various shippinggroups, including MSC (TIL)and Grimaldi’s GNV, have beenlinked with Terminal Messina.Most recently, Contship Italia hasbeen the name in the frame, asthe German-Italian group madeanother attempt to secure a presencein Italy’s biggest import/export container port (havingfailed several years ago to win aconcession at Genoa Voltri – theSixth Module dispute).Italian sources said there is littlelikelihood of Messina givingup any of its shipping interests asthis sector, perhaps surprisingly,is very buoyant for the company,despite (or perhaps because of) itsmajor new con-ro investments.Elsewhere in Genoa, VTEVoltri Terminal Europa is gearingup to host the latest ULCS.The PSA Sinport company hasordered four more 70m outreachcranes (25-across) from ZPMC,on top of the four ordered lastautumn. Managing director GilbertoDanesi confirmed thatVTE has invested €80M in thenew cranes. The key point is thatGulftainer underway in USGulftainer’s first terminal in theUS started operations this month,with the maiden call of the CMACGM JAMAICA.Gulftainer (GT), a subsidiaryof Crescent Enterprises, announcedthe 35-year concessionat Canaveral, Florida, in June lastThe maiden call of the 4,298 TEU CMA CGM JAMAICA at CCTyear. It plans to invest US$100Min container and multipurposefacilities at Canaveral Cargo Terminal(CCT), to transform thefacility into a market leader inFlorida.Speaking at the unveiling, PortCommission chairman, Jerry Allender,said: “Today, we usher in anew cargo era at Port Canaveral.This historic partnership will facilitatemuch-needed jobs forour area, with GT USA’s commitmentto invest US$100M ininfrastructure, equipment and localemployees.”“This new state-of-the-artfacility is ready to get to workwith two berths, two cranes andADT Abu Dhabi could link up with Messina Group in Genoathe air corridor rules at nearbyCristoforo Colombo airporthave changed, allowing VTE tomove away from shuttle boomcranes to a gooseneck boom.The new cranes have a 50mlift height under the spreader,an SWL of 65t (twin 20 mode)and they will be able to operatein wind speeds up to 90 km/h.The first four cranes are slated for20 acres on which to grow,”said GT USA president PeterRichards. “In Gulftainer’s partnershipwith the port authority,it’s our policy to partnerwith the entire community. Weare here today to partner withyou to make this a world-class,second-to-none, container terminalservicing the region, thenation and beyond.”While DP World was famouslydenied permission to purchaseP&O Ports’ US operations almost10 years ago, Gulftainer’smove required no national securityclearance, on the basis thatit is leasing, and not purchasing,any US port assets. AmbassadorYousef Al Otaiba, UAE’s Ambassadorin the US attended, alongwith Ambassador Vinai Thummalapally,executive director ofdelivery on the first half of 2016,with the remainder following atthe end of the year.In the first five months of thisyear, VTE handled 565,786 TEU(+9.3% on the same period of2014) and is targeting 1.3M TEUfor the whole year. The companyis averaging 24.5 moves/cranehour, and aims to increase this to28-30 with the new cranes.SelectUSA, part of the InternationalTrade Administration ofthe US Department of Commerce.“Canaveral Cargo Terminal,which begins operations with acargo capacity of 200,000 TEU,has ambitious plans to triple capacityto 750,000 TEU. An idealgateway for container shipping tothe Florida market and beyond,CCT provides an excellent connectionto Central Florida’s bustlingconsumption centres andgrowing number of distributioncentres. The terminal is able toturn around cargo imported intoPort Canaveral to the Orlandoarea within one to two hours, thefastest transit time compared toother container terminals in thestate,” GT USA said in a statement.PORT NEWSAPMTdoubles upin MobileAPM Terminals is doubling theSTS compliment at its terminalin Mobile Alabama, as the portgears up for the opening of thePanama Canal expansion. Thefacility currently has two STScranes and APM Terminals hasannounced a US$40M investmentin two additional units anda 20-acre expansion to the containeryard.Canadian National Rail, APMTerminals and the Alabama StatePort Authority (ASPA) believethe port has huge intermodal potentialand have signed an MoUto boost intermodal traffic.In a statement on the announcement,JJ Ruest, CN executivevice-president and chiefmarketing officer, said: “We believethe agreement – similar toones CN has signed with all ofCanada’s major ports and intermodalterminals – will extendthe geographic reach of the Portof Mobile so that we all can takeadvantage of potential new containerrail traffic following thecompletion of the Panama Canalexpansion project in 2016.”The 95-acre container terminalhas a current capacity of350,000 TEU, which can be increasedby moving to an RTGyard system. Late last year, theASPA approved a design/buildcontract for a new IntermodalContainer Transfer Facility(ICTF) at Garrows Bend, incorporatingtwo operating tracks, aloop track, and car repair siding,each with a minimum length of3,000ft, which will cost US$32Mto build.Experiencethe Progress.LRS 545.New impulse for your terminal.1 st type out of the Pulser series.PulserThe new Liebherr Reachstacker seriesreachstacker@liebherr.comfacebook.com/LiebherrMaritimewww.liebherr.comThe Group6June 2015

Auckland halts extensionPorts of Auckland Limited(POAL) has decided not to appeala judgement forcing it toabandon work underway on twoberth extensions.Earlier this year, the port beganwork on two small extensions toexisting berths that had alreadybeen through the resource consentprocess. These involved extendingberths B2 and B3 at itsBledisloe Terminal by 98m and92m, respectively. The new structureswould be concrete piled,requiring no infill expansion.Two groups, Urban Aucklandand The Society for the Protectionof Auckland City andWaterfront Inc, sought a judicialreview of the consent process,under which Auckland CityCouncil gave the extensions a resourceconsent without a formalconsultation process.In the High Court of NewZealand, Justice Venning ruledthis was a breach of environmentallaws and regulations. However,he declined Urban Auckland’sapplication for a declaration thata different type of consent shouldbe required for the work.In his judgement, Justice Venningrecognised his decision willcause POAL considerable financialloss, but said “POAL it has, toa degree, brought that on itself, inthe way that it urged the Councilto proceed on the non-notifiedbasis, in the knowledge of the reactionthat was likely to engender.In doing so, it took a commercialLASE - saves lives!Industrielle Lasertechnik GmbHLaseSCP-3D-Stack Collision Prevention 3D...we are the eyes of your crane!Customer Benefits & Features:• Avoids collisions between load and stack• Applicable for RMGs and RTGs• Avoids collisions with adjacent stacks in gantry direction• Driver assistance• Gentle container handling through soft landings• Less spreader wear• 3D profile scan in trolley drive direction• Reduction of container damage claimsStand - B 10LASE offers innovative andproductive solutions for ports bycombining state-of-the-art laserscanners and sophisticated softwareapplications. We are specialisedin the fully automated handling ofcontainers, cranes or trucks.Come and visit us!Auckland has been forced to stop work on two berth extensions, shown in bluerisk in proceeding in that way.”POAL has announced itwill not appeal the judgement.“While the decision causes ussome problems with consentingand our ability to accommodatemore and longer ships,we feel that appealing this casewould not produce a sustainableresolution to those issues,”said CEO Tony Gibson. “We willnow look to Auckland Council’s‘Future Port Study’ to help findworkable, long-term solutions toAuckland’s sea freight needs.“We still have an immediateneed to accommodate longerships at our general cargowharves, and we will talk to ourcustomers and stakeholders to tryto find possible short-term solutions.We have made no decisionyet on whether or not to reapplyfor consent for the B2 extension.”“Our container operations atFergusson Terminal are not affectedby this decision and continueto thrive. Over the comingmonths we expect to be able toannounce a number of excitingnew initiatives to improve thatpart of our business further,” headded.Euroports General Cargo Terminal GmbH in Rostock has taken deliveryof a new Konecranes SMV4545TBX5 reach stacker for heavy cargo handlingunder hook, and with the flexibility to handle containers, as all thequick-release hydraulic connectors for a spreader are installed in the boomhead. The 8m wheelbase machine can lift a load of up to 61t to a height of15.4m without deploying jacks. With jacks deployed, it can lift up to 78t.Krishnapatnam railA new intermodal rail servicehas been started between India’sKrishnapatnam Port and WhitefieldDepot (WFD) ICD. Thefirst rake was a full load of importladen containers belonging to thebusiness houses in and aroundBengaluru city (Bangalore).This weekly rail service, in associationwith CONCOR, is saidto provide the fastest transit fromThe inaugural service being loaded at KrishnapatnamWFD ICD to the closest gatewayport, and gives an impetus to theimporters and exporters aroundBengaluru, Hosur, Chittoor, etc.The service has a maximumcarrying capacity of 90 TEU eachway and reduces the transporttime from 24-36 hours taken byroad to just 18 hours. In addition,it also helps customers to saveUS$100-150 on each container.PORT NEWSTanzaniaPortsAuthorityreshapedTanzania’s Minister of Transport,Samuel Sitta, has restructuredthe Tanzania PortsAuthority (TPA) and appointeda new board of directors.The move followsthe sacking earlier this yearof TPA’s former acting director,Madeni Kipande, and thegovernment’s determinationto stamp out alleged fraud,bribery and corruption at theorganisation.Recent years have seencomplaints rise about theTPA’s tendering processesand its administrative procedures,with the governmentstill carrying out a numberof investigations into the authority’sactivities.Sitta said: “My decision todissolve the board shows thata lot more needs to be doneto improve efficiency at ourports, from employees’ welfareto doing away with unnecessarybottlenecks thatdiscourage port users fromusing the country’s portsand thus opting to use thoseof neighbouring countries,mostly Kenya.”In all, eight new directorshave been appointed, includingDr Tulia Akson, a lawlecturer at the Tanzania LawSchool, Musa Ally Nyamsingwa,a civil engineer withNorplan Consultants, DonataMugassa, a procurement professionaland member of theTanzania Posts Corporationboard of directors, HarunaMasebu, former director generalof the Energy and WaterUtilities Regulatory Authority,Gema Modu, an electronicsengineer with the EngineersRegistration Board,Dr Francis Michael, a seniorlecturer with the Universityof Dar es Salaam, CrescentiusMagori, director of planningwith the National Social SecurityFund and Flavian Kinunda,a former director ofmarketing at TPA.Dar es Salaam lags behind itsmain rival, Kenya’s Mombasa,when it comes to productivity,and also handles substantiallyfewer containers thanthe 1M TEU-plus that theport now processes. In 2014,Dar es Salaam’s traffic totalled612,551 TEU, a rise of almost9% on the previous year.”The better spreaders we manufacture,the more value we bring to our customers”Those are the words from the founder of ELME Spreader, Gösta Karlsson.Today more than 14,000 ELME Spreaders have been attached to lifttrucks, reach stackers, straddle carriers and cranes all over the world. Figuresthat encourage us to continue doing what we’ve been doing since 1974.Building top performance spreaders to top performance customers.The art of securing a container. The ELME Spreader twistlock - based on 40 years of heavy container experience.8June 2015

PORT NEWSLimassol to be privatisedCyprus’s largest container port is to beprivatised, and interest from global terminaloperating companies is expectedto be keen.The decision to move forward witha bidding tender for the port followsthe approval in early June of a timetableand framework structure for the process.Initially, the Cyprus Ports Authoritywill offer documents inviting companiesto express their interest in the project,a shortlist of candidates will then bedrawn up and further information ontheir business plans requested, afterwhich a concessionaire will be appointed.It is hoped that the process will becompleted by the end of Q1 2016.In all, three tenders will be issued, withone covering operations and investmentin the container terminal, another forthe multipurpose facility and the thirdfor maritime/port services. While thefirst two are for 25-year periods, withfive-year options, the latter is a 10-yearcontract.The past 30 years have seen Limassollose market share to its rivals in theMediterranean region, particularly in thetranshipment stakes, with volumes nowhovering in only the 300,000/350,000TEU range.The Cypriot government believesprivatisation can resurrect the port’sfortunes and allow it to claw back fromports, such as Piraeus, Marsaxlokk andPort Said.Transnetprivatisationmove?The Development Bank of SouthernAfrica (DBSA) has agreed to help adviseand fund private sector investmentin joint ventures between South Africantransport utility Transnet and privatecompanies. South Africa has toyed withthe idea of port, rail and road privatisationover the past 15 years. Private companieshave now built and operate somehighways, but the country’s powerfultrades’ union movement has blockedoutright privatisation of most port andrail infrastructure or operations.However, the government has nowsanctioned the company to form morepublic-private partnerships (PPPs). Likelybeneficiaries include the new containerport planned near Durban, theproposed Ekurhuleni inland containerterminal and new manganese handlinginfrastructure. It will be interesting tosee how much of Transnet’s R336B(US$27.7B) seven-year infrastructuralbudget is actually spent with the privatesector, or indeed whether the companyor government are prepared to publishsuch information.The acting CEO of Transnet Group,Siyabonga Gama, said: “Finding innovativefunding solutions is a key elementof the market demand strategy (MDS).Partnerships with the private sector willnot only broaden our sources of fundingfor capital investments, they [DBSA] willgive us access to private sector skills andexpertise.“At the same time, they will help usmanage risk and provide alternative procurementtools for large infrastructureprojects. In addition, PPPs provide entitieslike Transnet with mechanisms toensure black participation in large-scaleprojects.”The agreement is perhaps recognitionthat private sector companies inSouth Africa have difficulty in securingfunding from private banks. DB-SA’s participation is easier to secure as,in common with Transnet, it is ownedby the South African government. TheCEO of DBSA, Patrick Dlamini, said:“This partnership speaks to one of ourcore objectives of supporting economicgrowth through investing in economicinfrastructure – with transportation beingone of the four key focus sectors toachieve this objective.”Limassol is set to be privatised via three separate tenders within a yearNEXT GENAUTOMATEDCONTAINERHANDLINGINAUGURATED IN SURABAYA, INDONESIAThe Lamong Bay Terminal in Surabaya, Indonesia, was recentlyinaugurated. It’s the jewel in the crown of Indonesian state-ownedterminal operator “Pelindo III”. Its Konecranes automated containerhandling system consists of 20 Automated RMG cranes (ARMGs),Remote Operating Stations (ROSs), and associated container yardinfrastructure. Konecranes also provided 10 Ship-to-Shore (STS)cranes and 5 straddle carriers.The future is very bright for Lamong Bay Terminal and Indonesia.PLEASE VISIT WWW.KONECRANES.COM/LAMONG-BAYFOR MORE INFORMATION.Teesport capacity boostPD Ports Teesport has completed a £22Minvestment project, including reconstructionof 305m of the quay, enabling it toaccommodate fully laden Panamax vesselsat any level of tide.The 12-month project, which is part ofPD Ports’ wider growth plans, was undertakenby McLaughlin & Harvey and supportedby consultants Royal HaskoningDHV and Turner & Townsend.The next phase of the upgrade projectis due to commence in July and, over aseven-month period, an additional 245mof quay will be upgraded. As reported onWorldCargo News Online, PD Teesport isnow using Navis N4 to manage its lolo,rail and ro-ro business. “Over 70% ofcontainers handled at the port can nowbe tracked to their owner, along withany specific requirements the owner hasfor their goods,” the company stated.Using a TOS in this way, claimed PDPorts, is the “UK’s first cross-platform terminaloperating system”, covering container,rail and ferry operations.Teesport can now handle laden Panamaxvessels at any level of tideJune 2015 9

Turmoil in LibyaPort operations in Libya continueto be affected by conflictbetween various armed groups.Oil and product tankers havebeen bombed, and movement ofcontainer and bulk vessels is alsobeing disrupted.Libya has turned into a virtualfailed state since the overthrowof President Muammar Qaddafiin 2011. Rival groups, jockeyingfor recognition as the country’sofficial government, control differentarms of the state and aretargeting ships and port facilities.The current focus of fighting isbetween the government in Tobruk,which is led by Abdallah AlThani and which is recognised bymost western states, and IslamicState, while a rival governmentin Tripoli, under Omar al-Hassi,controls the ports of Tripoli andMisrata.Most recently, in late May, aproduct tanker, operated by thestate-owned General NationalMaritime Transport Company,was bombed by the Libyan AirForce (LAF) as it arrived at thePort of Sirte. According to theTobruk government, the tankerwas carrying arms as well as fuel.A Turkish containership was attackedby the LAF in May and thePort of Misrata bombed in January.Maersk Line is consideringwhether it should suspend itsservice between Marsaxlokk andMisrata. Very high insurance premiumsfor vessels using Libyanports make it prohibitively expensivefor most shipping linesto serve the country, although,unlike in Syria, there are no sanctionson trading with Libya.Containerships have also beencaught up in the migrant crisis,rescuing migrants whose vesselshave sunk or who have beenabandoned by people traffickers.For example, MAERSK REGENS-BURG rescued 427 people off theLibyan coast at the end of Maywhile sailing from Al Khoms inLibya to Sfax in Tunisia. This wasthe second large-scale rescue forthe ship in the same area inside ayear. Libya has become the mostpopular sailing point for refugeesand economic migrants seekingto enter Europe, because of thelack of effective border controlsin the country.Maersk Line has been involvedin six rescues involving over2,000 refugees this year, while itstanker division, Maersk Tankers,has rescued another 700. The rescuespresent an enormous challengeas commercial vessels witha crew of less than 25 are notequipped to feed and house largenumbers of migrants.Chinese investmentsin PakistanSubstantial investments fromChina are planned to be madein Pakistan’s transport infrastructure,in support of Beijing’s planto create a China Pakistan EconomicCorridor (CPEC). Thiswill also be a logistics and transport(highway, rail and pipelines)artery and will provide importersand exporters in western/interiorChina with faster and costcompetitiverouting options tothe Middle East and Europe.The planned 2,000 km corridorextends from the Chineseborder city of Kashgar to the Pakistaniport city of Gwadar. Thisdeepsea port, which is being operatedby China Overseas PortHolding Co under a 40-yearconcession (signed in 2014), isbeing expanded, with US$1.6Bearmarked for modernising andexpanding its cargo handling facilitiesand infrastructure.In addition to Gwadar, significantinvestments are alsoplanned in the port of Karachi.In May, a Memorandum of Understandingwas signed betweenChina’s Guangdong ProvincialTransportation Departmentand the Karachi Port Trust(KPT), the goal of which is “tostrengthen the Pakistani port’soperations and enhance its shippingconnectivity”.In particular, KPT andGuangdong Province will cooperatein establishing betterfreight and logistics connectionsbetween the two regions,in promoting imports and exports,investment and trainingprogrammes.Meanwhile, container volumesat the port are growingstrongly, with a record 160,649TEU handled in May. In 2014,box traffic rose by just over 6%to 833,000 TEU. Some of this isUS military cargo, which is nowflowing through Karachi afterRussia closed the NorthernDistribution Network across itsterritory to Afghanistan in May.Theft in Pakistan remains a significantconcern, however. Onerecent cargo theft case aloneinvolved 9,722 NATO containersstolen between Karachi andTorkham.The CPEC plan involvesUS$46B in investment by theChinese. It fully supports and isan integral part of the government’seven more ambitiousNew Silk Road initiative.PORT NEWSDCT Gdansk growthManagement at DCT Gdansk,Poland, has announced that theG6 Alliance will extend its Loop7 Asia/Europe string to the facilityin early August. The decisionis a major boost to the terminalwhich, up until now, has beenheavily reliant on Maersk Linesince it opened in 2007.Currently, Maersk’s AE10(Asia/Europe) service string,which uses Triple E-class 18,000TEU vessels, calls at Gdansk.Operated within the 2M agreement,the line’s partner MSC alsoroutes some cargo over the facility,although it uses feeder linksand the neighbouring port ofGdynia as its main service optionfor Poland.The move by the G6 will meanthat APL, Hapag-Lloyd, HyundaiMerchant Marine, Mitsui OSKLines, NYK Line and OOCL willroute more of their cargo directto Poland, rather than by train,truck and/or feeder services overBenelux and German ports. TheG6’s Loop 7 service, which usesships in the 13,000/14,000 TEUsize range, also calls at Rotterdamand Hamburg in Europe, aswell as Southampton in the UK.The new business fully justifiesDCT Gdansk’s expansionprogramme. This involves expenditureof at least US$200Mon building a second 650mberth terminal with the capacityto handle 1.5M TEU a year.This is being accompanied bya significant increase in the port’srail and logistics capacity. In particular,new temperature-controlledstorage facilities are beingdeveloped within the planned18,500 m 2 Pomeranian logisticscomplex, as the terminal operatorlooks to reshape the country’sexisting cold chains and create amore captive cargo base for itself.Several clients have agreeddeals for the space, including: Belgium-based Univeg, a supplierof fresh produce – 3,500 m 2with the ability to process 500TEU/week of mainly fast movingconsumer goods and perishables. Poland-headquartered PAGO,which specialises in the distributionof frozen produce – 10,000m 2 facility with a full range ofchilled to frozen temperatures. Itwill be capable of handling 270TEU/week. Poland Services, which is partof the Netherlands-domiciledZandbergen Services Group –Chilled and frozen storage capacityof 5,000 m 2 with the capacityto process up to 100 TEU/week.All of the facilities are due toopen by the end of 2015.In 2014, DCT Gdansk handled1.21M TEU, up 2.6% on theprevious year.Big plans for NacalaThe operator of the Port of Nacalain Mozambique has unveiledits long-term vision for the port’sdevelopment. Portos do Nortebelieves the port will become animportant coal port, while a newdeepwater container terminalcould eventually rival Durban.The latter obviously serves SouthAfrica, but is also the main transitport for shippers seeking to transportgoods from the rest of theworld to the whole of SouthernAfrica. The CEO of Portos doNorte, Fernando Couto, believesthat Nacala can eat into Durban’smarket share when its redevelopmentis complete.“Now and likely for at least thenext five years, we are all countingour costs and seeking to savemoney, but all conditions are inplace for the Port of Nacala totake advantage of its position. Thelarge investors and shipping linesare eyeing Nacala port, due to itsdeep water and its access to therest of the country.”The port’s main connectionwith the rest of Mozambique andSouthern Africa is a 912 km railwaythat runs from Tete Province,through Malawi, and then on toNacala. However, the proposedMozambican north-south railway,or a much better road network,must be developed if the port isto serve the rest of the countrydirectly. The coal terminal mayprosper in any case, but the newcontainer terminal would beforced to rely heavily on the transhipmentmarket.The Japanese InternationalCooperation Agency (JICA) isinvesting US$250M in the port,while the coal terminal is beingdeveloped by a consortium includingVale and Mitsui. Nacalahas the deepest natural harbouron the east coast of Africa but hadpreviously been little used becauseof the lack of a convenientlocal market.www.tratos.euLet’s takeanotherturnOur cables have beencontinually workingfor many years withhigh speed applicationsall around the world.Virginia (USA)Throughput: 1.745.228 teuSpeed 300 m/mTratos cables have been workingsince 9 th March 2010Rotterdam (Holland)Throughput: 9.743.290 teuSpeed 270 m/mTratos cables have been workingsince 3 rd March 2008TratosFlex ESDBfollow us onwww.reelingcables.comTratos Cavi S.p.A - via Stadio, 2 - 52036 - Pieve Santo Stefano - Italytel. 0039 0575 794 329 - fax 0039 0575 794 246 - e-mail export@tratos.itSliding non Sliding TechnologyThe SNS TECHNOLOGY is based on the fusion of the improved design of Brevetti Stendalto’s sliding skids and theuse of wheels at specific locations of the guide channel. Wheels work where skids don’t, and vice versa.The combination of what have so far been the two main long-stroke solutions for cable chain applications allowsBrevetti Stendalto to offer a solution for the most demanding applications.For more information visit www.brevettistendalto.comWorldwide cooperation withDYNAMIC CABLE PROTECTION10June 2015

PORT NEWSMay 2015 11

PORT NEWSFor all yourcargo handling needsZPMC offers you the widest range of containerand bulk handling equipment solutionsShanghai Zhenhua Heavy Industries Co., Ltd (ZPMC) is afamous heavy-duty equipment manufacturer which has a fi netrack record of supplying fi rst-class Ship-to-Shore ContainerCranes, RTGs, RMGs, Portal Cranes and Bulk Equipment forturnkey Bulk Terminal operations.ZPMC also uses its port-machinery production capabilities andexpertise, adapting it for the production of Mining Equipmentand supply of components.ZPMC now offers a full range of automated solutions, for bothnew and existing equipment. Our range includes automatedstacking cranes, retrofi t automated control options for RMGsand RTGs and a full turnkey automated yard system withZPMC’s own AGVs and Equipment Control System.3470 Pudong Nan Lu, Shanghai 200125, P.R. ChinaTel: +86 21 58396666 | Fax: +86 21 58399555 | Email: mail@zpmc.com | www.zpmc.comShanghai Zhenhua Heavy Industries Co., Ltd12June 2015

SHIPPING NEWSLiner freight rates sinkThese are worrying times for oceancarriers, with spot rates in many tradesat historic lows. Data published by theShanghai Containerised Freight Index(SCFI) Shipping Exchange reveal thatto date, 2015 has seen prices for oceantransport plummet on several routes.The main reasons for the decline arethe delivery of ultra large container carryingvessels into a “soft” Asia/Europe/Asia trade, the resulting cascading of bigships into emerging markets and intensecompetition between ocean carriers andrival alliances.In the key Asia/Europe headhaultrade, rates had fallen to just US$205/TEU between China and northern Europeanports for the week ending 19June 2015 and US$274/TEU to portsin the Mediterranean. These spot ratescompare with prices well in excess ofUS$1,100/TEU last year.While fuel costs are much lower thanlast year, they have been creeping up recentlyand ocean carriers’ losses in theAsia/Europe trade are mounting.This year has seen several plannedrate restoration programmes by carriersChina freesup cabotagemarketChina’s Ministry of Transport (MoT)has taken further, albeit limited steps toliberalise the country’s tightly restrictedcabotage laws. It means that Chinesecompanies deploying foreign flaggedships will now be able to carry containersto/from all ports located in thecountry’s free trade zones. Previously,this privilege only applied to Shanghai.An MoT announcement read: “Chinese-ownedcarriers registered in thecountry can ship international cargoesbetween ports in the free trade zonesand other Chinese ports with theirwholly owned or controlled vesselsflagged abroad, after reporting them tothe transport ministry.”In all, six additional ports will be ableto accept foreign flagged coastal ships.These are Chiwan, Haicang (Xiamen),Jiangyin (Fujian province), Mawan(Shenzhen), Shekou and Tianjin.With new free trade zones locatedin Guangdong, Fujian and Tianjin, it ishoped that the new cabotage law willboost investment levels in these areas,while generating more shortsea andfeeder traffic for the ports.The new legislation does not allowforeign-controlled liner shipping companiesto offer domestic or local feederservices for international cargo in China,something the industry has been campaigningfor, for many years. It is onereason why ocean carriers call at somany ports in China and why regionalhubs have not emerged in the country.China is not unusual in this respect,with many countries, including the US,restricting their coast trade to domesticcarriers.Previously a privilege applied only to Shanghai(pictured), Chinese firms deploying foreignflagged ships can now carry containersto/from all ports located in China’s free tradezoneson the route fail and prospects do notlook good for proposed increases (rangingfrom US$900 to US$1,150/TEU) inJuly by lines such as Maersk Line, CMACGM, MSC and NYK Line.A similar situation prevails in the othermain east-west trade, with the SCFIfor 19 June revealing rates of US$1,268/FEU between China and southernCalifornia ports and US$2,904/FEU toNew York/New Jersey. These are downabout 20% and 4%, respectively, on thecorresponding period of 2014.Elsewhere, the most recent SCFI figuresshow that spot rates have drifted totheir lowest levels since the global financialcrisis in trades linking China withthe Middle East, West Africa, East CoastProspects do not look good for proposed rate increasesin July by lines such as Maersk Line (pictured),CMA CGM, MSC and NYK Lineof South America and Australia.Overall, the composite index publishedby SCFI for all trades out ofShanghai for the week ending 19 June,was just over US$581/TEU. This wasaround 48% lower than in the correspondingweek of 2014.Mobilisations across 8000 nm,Modifications of span of 12 m,Modernisations of drive & PLC,and 8 months later, 2 QCs stand fully operationalat our Béjaïa Mediterranean Terminal, AlgeriaMitsubishi shipping fundJapan-based Mitsubishi Corporation(MC) has raised US$300M for itsMC Seamax Shipping OpportunitiesFund (SSOF), which will acquire, manageand then charter out container vessels.According to MC, which has committedUS$50M to the private equityfund, investors from North America,Europe and Japan have made contributionsto it.The group said that the aim of SSOFis to generate a stable income for its investorsby buying ships and then leasingthem to established liner companies, achallenging strategy, it has to be said,given the significant amount of overcapacityin the industry.A spokesperson at MC said: “Pressurescontinue to be felt due to deliveriesof large vessels, but the containershipping market is expected to recoveras demand increases globally and thefund will continue to deploy its capitalin an effort to acquire prime assets.”Currently, SSOF owns six containershipswith an aggregate capacity of45,000 TEU, all of which are hired toleading liner companies.SSOF is managed by MC-SeamaxManagement Ltd, which is a jointventure between US-based MC AssetManagement, a wholly owned subsidiaryof MC, and Seamax Partners LLC,a specialist US-based shipping advisorycompany.Our triple M approachSince 1988, our engineering team has been working with the world’s ports of call to match their everydayneeds with our customised solutions. Our full spectrum of port equipment competencies include theMobilisation, Modification and Modernisation of cranes - also known as our triple M approach. Come speakto us about how we can work with you in maximising throughput and accelerating growth!www.portek.comA Mitsui & Co., Ltd. SubsidiaryJune 2015 13

Shippers berate carriers…Once again liner shipping companiestook the brunt of criticismat this month’s TOC CSCEurope conference, held in Rotterdam.In particular, their failureto innovate, add value and beproactive when it comes to servicefailures was highlighted.Filip Degroote, transportationdirector for the EMEA region atStanley Black & Decker (SBD),told delegates: “Carriers need tocreate added-value services atorigin and destination points ifthey want to be sustainable.”He said: “Some carriers aremoving in the direction of offeringorigin and destination services,and I think that is the wayfor them to go. Today, forwardersare taking that role, but I thinkcarriers should also give a totalsolution package.”However, he thought thismove was some way off and didnot see a fundamental change intheir focus on the port-to-portsector. But he warned that thiswas not sustainable, arguing thatsuch a strategy was of “no valueto SBD”.Degroote elaborated: “Oursupply chain is focused on endto-endtransit times and we seefour main areas where thereare opportunities for carriersto work with us – origin services,destination services, portto-portreliability, and overallFOR SALE:Used Liebherr Mobile Harbour CraneType LHM 320, two ropesBuilt: 2005Lifting capacity:On hook: 100,4t/10,5m-17m – 25,5t/43mRunning Hours:Diesel Engine 11.500Condition:Good working conditionvisibility of the supply chain.”He continued: “While peopletalk about port-to-port transittimes, this doesn’t tell me anything,as we can lose so muchtime at the origin and destinationpoints and so I need toknow end-to-end what is happening.”While SBD has reluctantly acceptedslow steaming as the newnorm, the executive expressedFor immediate delivery from EuropeFor this and other second-hand port equipment,please visit: www.bendezu.comThere is, however, a way forwardthat could be achievedwithout a magic bullet thatsomehow doubles terminal productivity.Tom Ward, senior maritimeplanner at Parsons Brinckerhoff,put forward that it is timefor terminals to adopt a new yardplanning paradigm, where importsare stacked according today of delivery. Truckers wouldthen collect the first available boxand be paid an agreed rate for delivery.Without having to shuffletrucks and containers, yard craneslike RTGs could actually handle25 trucks per hour, as opposed tothe 9-10 that most achieve now.There are contractual and operationalissues that would need tobe addressed to put day-of-deliveryyard planning into practicebut, as shippers like Degrootepoint out, being sold a serviceSHIPPING NEWS…but need to count spreadersWhile Degroote called on portsto find ways of speeding up thehandling of mega ships, in anotherstream at the TOC CSCEurope conference, consultantsand a terminal operator werediscussing how to improve terminalproductivity. The focuswas not on new equipment orautomation that might producea paradigm shift, but on ways ofimproving the planning and internallogistics at terminals to getproduction closer to the equipment’sachievable cycle times.Shippers might be disappointed,but they need to understandthe operational reality terminalsare facing. With mega ships,call sizes have reached the pointwhere the landside interface atmost terminals cannot possiblymeet the expectations placedon it today. It is not mathematicallypossible for a terminal thathas 10 or 20 spreaders servingtrucks, to deliver all the importcontainers from a 10,000+ containercall within 24 hours of thevessel berthing. Some containerswill just not be available for threeor four days after the vessel hasberthed.Degroote’s comments indicatelines are not providing their customerswith full disclosure overthe implications of their newships in this respect.unhappiness about the lack ofconsistency when it comes totransit times, service reliability,rise in transhipment and ongoingproblems associated with cargobeing rolled.“Slow steaming is painful, butthe most crucial thing is to haveconsistent transit times,” Degrootetold delegates. “In addition,we try to avoid transhipment becausewe had a bad experiencewith that and so we always lookfor direct calls.”In other comments, he calledfor ocean carriers to use more45ft palletwide containers, bemore transparent in their exchangeof information and becomemore differentiated.SBD’s global spend on transportequates to about US$400Ma year, approximately a third ofwhich involves shipping services.Shippers do not understand the implications of big ships on container availabilityat the port gatebased on “port-to-port” sailingtime does not meet their needs.Some ports are, in fact, takingsteps in this direction today. APMTerminals MVII Rotterdammanaging director Frank Tazelaarsaid it started working withbarge, rail and trucking interests18 months before the terminalopened, to identify how planninginformation could be shared betweenthe modes of transport, toenable MVII to better plan itsyard. It is “bartering” with bargeand rail operators, exchangingcommitments on handling timefor planning information. Thedisparate trucking community ismore difficult, but the terminal isgiving commitments to freightforwarders in exchange for theirdata. “We are trading high-valueinformation; we are part of theInternet of Things,” he added.Pan-Africa FTZ moves forwardIn June, representatives from 26African nations met in Sharm el-Sheikh, Egypt and signed an initialagreement that paves the wayfor the creation of a pan-AfricaFree Trade Zone, encompassingover 60% of Africa’s GDP and57% (approximately 625M people)of its population.The proposed new pact willboost intercontinental highway,rail and coastal shipping servicesand should attract additional internationalinvestment into theregion.At less than 15%, Africa boaststhe smallest volume of intra-regionaltrade of any continent inthe world, and economists andpoliticians have often mentionedthis as stalling Africa’s economicgrowth potential and its relativelysmall showing in global tradingterms.Known as the Tripartite FreeTrade Area (TFTA), it will combineexisting trade pacts, such asthe Common Market for Easternand Southern Africa (COME-SA), the South African DevelopmentCommunity (SADC) andthe East African Community(EAC) into one. This will cut bureaucracyand streamline documentaryand customs procedures,all of which should encouragethe flow of cargo.However, notable for its absenceis the Economic Communityof West African States(ECOWAS), which includes sub-Saharan Africa’s largest economy,Nigeria, and some of the region’sfastest growing nations.Significant investment will stillneed to be made in improvingAfrica’s transport infrastructure,as bottlenecks and congestion atborder crossings, into and out ofports and in major cities remainproblems in many of the countriesthat have signed up to theTFTA.The initial agreement nowawaits discussion and ratificationby the various national governmentsinvolved. In Africa, thiswill not be an easy task. Thenthere is the process of implementation,which is also likelyto prove difficult. Consequently,even after more than five yearsof discussions at country-tocountrylevel, a single pan-Africatrade pact is likely to still be someway off.Bottlenecks and congestion at border crossings, into and out of ports and inmajor cities remain problems in many African countries that have signed upto the TFTACalle Camino Padre Cura, No 15, Bloque Oasis II, 1°C, 29680 Malaga, SpainContact Mr. Andres BendezuTl. +34 952 805 716 Mb +34 679 449 189E-mail: info@bendezu.com14June 2015

SHIPPING NEWSSuez Canal Axis to open in August New ro-pax vessel designThe Suez Canal will be capable of accommodatingmore ships from Augustwhen a new channel is opened anddredging on an existing stretch of thewaterway is completed.In all, the Suez Canal Axis projecthas involved estimated expenditures ofUS$8B and civil engineering work on72 km of the canal. A new 37 km channelhas been excavated and 35 km of theexisting canal deepened and widened.Potentially, the Suez Canal Axis willcut ship transit times in half to just 11hours, as two-way traffic will be permissibleon this stretch of the waterway. Inturn, this will mean more vessels beingable to sail through the canal each day.“The new waterway will be inaugu-The Suez Canal Axis could cut ship transit times in half, utilising two-way traffic, which willmean more vessels being able to sail through the canal each dayrated on 6 August 2015,” said MohabMameesh, head of the Suez Canal Authority.“The project will once again putEgypt on the world investment map.”The upgrade of the Suez Canal is partof the Egyptian government’s plans forthe region, which entail the developmentof new ports, industrial clustersand a logistics corridor.The Suez Canal is the biggest generatorof revenue for the Egyptian economy,with over US$5B earned in 2014.Finland-based Deltamarin has used theNor-Shipping 2015 exhibition in Osloin June to launch a new ro-pax vesseldesign, DeltaChallenger, incorporatingnew technologies.To reduce fuel consumption, it wouldbe fitted with six Norsepower rotor sailsproviding 10% of propulsion power (1.3MW). Fuel economy and manoeuvrabilityare gained through a combinationof dual-fuel electric machinery, 4 powerplants (2 x 6 MW and 2 x 3 MW) andABB’s new compact Azipod D pod propulsionsystem. The pod’s steering unitcan be fitted in one deck to avoid hamperingcar loading. The ship will haveGTT Mark III membrane LNG tankstotalling 1,200 m 3 .Carrier Transicold optimised the airconditioning and ventilation. The vesseluses heat recovery and demand controlledventilation for maximum comfortand minimum energy consumption.Loading/unloading can be carried outsimultaneously on two levels of the lowerhold. The ship will have 2,720m lane/metres for rolling cargo on the main andupper deck. There are 480 car lanes overtwo levels in the lower hold. Alternatively,by means of hoistable car decks, the shipcould be loaded with up to 950 cars. Thevessel can carry up to 950 passengers and50 crew members. Deadweight is 7,900tand the main dimensions are 200m loaby 30.4m width and 6m draught. Servicespeed is 18.5 knots at design draught.O3 cuts backAsia/EuropeExperience theProgress.Material handling equipment.Jørn Hinge, UASC president and CEOThe O3 Alliance (CMA CGM, CSCLand UASC) has announced a series ofmeasures aimed at dealing with theslowdown in demand, rising levels ofovercapacity and record low freight rates,as reported elsewhere in this issue.The Asia/Europe/Asia liner markethas been negatively impacted by theweak euro and sharp slide in trade withRussia, particularly imports, due to thesoft rouble. In addition, the ongoingdelivery of mega vessels of over 15,000TEU has exacerbated an already seriousoversupply situation.Worryingly for ocean carriers withthe peak shipping season approaching,this should be a time when demand inthe trade firms up and spot rates pick up.O3’s action, which covers a 12-weekperiod from the end of June, involves: Harmonising FAL 2/AEX7/AEC8and FAL 3/AEX4/AEC7 so that a singlestring of ships runs both services onalternate weeks. Blanking sailings on most strings duringcertain weeks.“The new programme offers structuralchange and removes the need forcostly ad hoc operational solutions,” explainedJørn Hinge, president and CEOof UASC. “For our customers, it meansthat we will be able to support them inbetter planning their shipments, as weare providing transparency to our blankingprogramme, allowing them to avoidworking with costly ad hoc solutions.”Effectively, O3 is taking out one stringand this will involve removing the smallestships (under 11,000 TEU) so that themost economical units are deployed. Themoves mean some changes to the itinerarieswith FAL 1/AEX3/AEC2 having agreater focus on northern China.Prior to the end of September whenthis current action plan ends, CMACGM, CSCL and UASC will conductan extensive review of the market. A shipdeployment and service programme willthen be formulated for the period extendingto the end of 2015. If currentconditions in the trade do not improvethen further cuts can be expected, as thisis also the quiet period on the route.O3 is not the only group taking action.The 2M alliance (Maersk andMSC) has already reduced the size ofships deployed in its AE9/Condor servicestring, from 9,500 TEU units to6,500 TEU vessels. Meanwhile, the twopartners are known to be conducting areview of their full network, with furtherchanges expected. Maximum efficiency through progressive technology Sophisticated machine concept for maximum productivity Quality components manufactured by Liebherr Ergonomic workspace for consistenthigh level of performanceLiebherr-Hydraulikbagger GmbHD-88457 KirchdorfTel.: +49 73 54 80-0E-Mail: info.lhb@liebherr.comwww.facebook.com/LiebherrConstructionwww.liebherr.comThe GroupJune 2015 15

INTERMODAL NEWSCSX expands hubCSX Intermodal has completed aUS$40M expansion project at itsNorth West Ohio hub terminal(NWOH). The project includedextending eight processing tracksfrom 3,000ft to 5,200ft and addingtwo additional widespangantry cranes from Kuenz. CSXalso added an additional 10,000ftreceiving/departure track, increasedyard capacity by 70% andbrought in additional shuttle carriersand IBC carts.NWOH now has a lifting capacityof 2.53M TEU, with anadditional block swapping capacityof 6.3M TEU. Wilby Whitt,assistant VP operations, said theterminal is currently processing36 daily trains, and additionalservices are planned to take advantageof the expansion.The terminal has ground slotsfor 3,720 TEU and 270 parkingslots for chassis. Almost all containersare grounded, with onlyexceptions placed on chassis. Piggybacktrailers are handled onspecific lanes, with the trains movingorigin to destination withoutrequiring intermediate handling.NWOH is CSX’s flagship facility,and Whitt said the railroadhas further developed the terminal’sprocesses over its four yearsof operation. In particular, it has“fine-tuned the TOS automationfunctions in the area of cranedead-lock avoidance, allowingthe cranes to operate in dynamiccrane ranges”.The seven cranes operatein a semi-automated fashion,CSX now has seven widespan cranesat its North West Ohio hubwith the TOS/CMS automaticallypositioning the spreaderabove the next work order andthe operator controlling onlythe lock/unlock operation. TheTOS, Tideworks Intermodal Pro,dynamically optimises the workorder process, with the TrafficControl module continually prioritisingwork orders based onschedule, time and distance.NWOH is able to load 105distinct rail destinations acrossthe CSX network and other railroadsdaily. “The facility continuesto be the most capable andmodern intermodal rail facilityin the world,” added Whitt.Teralp looks to invest in intermodal terminals Argentina to upgradeTeralp, the joint venture of Italy’sFS Logistica and Swiss UIRRcompany Hupac formed in2012, is to build new intermodalterminals in Milan, Brescia andPiacenza, to improve capacityfor Italo-Swiss flows and Italo-North Europe flows transitingvia Switzerland. The schemeis linked to the Trovatore plan,which was drawn up by ItalianCustoms, IKEA, Uirnet andthe ports of Genoa and La Spezia.The Swiss are determined toensure that the new Gotthardbase tunnel is used to its maximumpotential, and this meansimproving connectivity and capacityin North West Italy. Theimmediate priority is the projectat Milan Smistamento, which isbeing supported by the SwissFederal Transport Office, saidFS Logistica’s managing directorMarco Gosso. The first phase isdue for completion during 2016,provided a land use dispute withthe local municipality (Segrate)can be resolved. Installed capacityis slated to be 390,000 units/year (780,000 TEU).Subsequently, new terminalswill be built in Brescia and Piacenza,each with a capacity for190,000 units. The Piacenzafacility will occupy 7.5-ha andwill have three RMGs spanningfive 750m long tracks and twotruck lanes.BC rail networkThe modernisation programme will see faster trains and higher volumes offreight moved on the 10,800 km Belgrano Cargas rail systemArgentina’s Belgrano Cargas(BC) rail system is to be modernisedand upgraded, in order thattrains can travel faster and highervolumes of freight can be moved.Its network spans over 10,800km and it links 17 of the country’s24 provinces.While the Argentinian governmenthas committed approximatelyPeso2B (US$220M) tothe upgrade programme, it is financingto the tune of Peso2.7Bfrom China that is critical to thework being implemented.The state of Chaco, which islocated near the border with Paraguayand is an important producerof soya beans and beef, willbe the first to upgrade the wholeBC network in its jurisdiction.This follows an agreement withthe Argentinian national governmentand the Chinese-based financiers.China will manufactureand deliver the track to Argentina.The Chaco deal involves expenditureof over Peso1B to laynew railway tracks between thecity of Avía Terai and the ParanaRiver port of Barranqueras,which is also being modernised.In addition to the new track,the state of Chaco intends investingin new rolling stock, includingas many as 1,500 freightwagons, which it hopes will bephased into operation within thenext two years.Bertschi adds onThe STR terminal in Schwarzheide, GermanyBertschi Group has further expandedits STR intermodal terminalat the BASF chemicalspark in Schwarzheide, Germany,increasing installed capacity to120,000 TEU and one-timestorage capacity to 2,400 TEU,including 150 TEU accordingto BimSchG hazardous cargoregulations. A steam heating stationhas been installed, enabling16 tank containers to be heatedsimultaneously alongside thecrane track. A second crane runwayspanning six rail tracks hasbeen added, served by a newKuenz double-cantilever RMG.In addition to the regular blocktrain services linking the terminalwith Benelux, Duisburg,Ludwigshafen, Poland and Russia,new links have been added toHamburg and Bremerhaven, andto Dunajská Streda (Slovakia),with onward steel wheel connectionsavailable to Hungary,Romania and Istanbul16June 2015

INTERMODAL/CONTAINER INDUSTRY NEWSNew lightweight container chassis from KögelKögel has introduced a lightweightcontainer chassis, designated Port 40Light, to provide operators with higherpayload capabilities. It is suitable for two20ft or one 40ft container. “This rigidlightweight container chassis weighsjust 3,990 kg in its basic version,” saidKögel, “permitting a technical grossweight of 41,000 kg and a fifth-wheelload of 14,000 kg.”Allowing a payload in excess of37,000 kg, the new chassis is aimed atproviding maximum cost-effectivenessfor intermodal transport involving railor barge truck haul. With custom optionssuch as light alloy wheels, aluminiumsupport legs and aluminiumair tanks for the braking system, thereis scope for reducing tare weight evenfurther.The low tare weight of the basic unit,said Kögel, is the outcome of designoptimisation measures. “The Kögel engineersdrew some of their inspirationfrom the tried-and-tested lightweightbuild concept of the Kögel Port 20Tankplex, but they also employed a newcross beam concept that saves yet moreweight as a result of ingenious weldedconstruction.”To simplify the (un)loading of containers,the Port 40 Light is equippedwith a rear section that is inset by70mm and, therefore, also with an optimisedunder-ride guard that is alsoinset. This means that the vehicle canget closer to the ramp, and the gap betweencontainer and ramp that needs tobe bridged with a drive-over panel iscorrespondingly reduced. In the courseof the next few months, all other KögelPort models will gradually be adaptedto incorporate this optimised rear sectionas standard equipment.As with all Kögel vehicles, the entirechassis is protected by nano-ceramictechnology and cathodic dip-paintcoating, followed by UV painting. Thechassis is available with immediate effect,together with Kögel’s BasicServiceor ProService support packages.The new chassis allows a container gross weight of 37t as part of an intermodal land transportchainDaikin orderUASC has ordered 3,500 new reefercontainers with reefer machines fromDaikin. The order marks the “secondmilestone” in the expansion of UASC’sreefer services, following the recent deliveryof 2,000 new reefer containers.“In terms of quality, performance andreliability, our latest reefer order comprisesone of the industry’s most ecoefficientand reliable units. The secondphase of new reefer units will supportthe growth of existing services and enhancedgeographic access followingnew partnership with CMA CGM andHamburg Süd to enter the North Atlantictrade, linking Northern Europe withthe USEC,” said Gareth Madsen, head ofreefer management at UASC.continued from page 1AICM is headed by chairman Jack Allenand CEO Patrick Marron, both ofwhom were previously executives intrucking industry giant manufacturerNavistar Inc. This month, AICM announceda “long term manufacturingagreement” with Navistar to “jointlyproduce 53ft containers for the US market”in Alabama.In an interview with WorldCargo News,Marron said that under the agreement acontainer production line will be set upinside Navistar’s existing plant. AICMwill own the manufacturing equipmentand contract production from Navistar.The plant itself will be heavily automated,using technology from Center-Line in Windsor, Ontario. This companyspecialises in advanced production technologiesand systems for manufacturingindustries, including resistance welding,cold spray coatings and factory automation.AICM is also touting its green credentials.The facility in Alabama is “NorthAmerica’s largest LEED accredited nextgenerationstate-of-the-art green facility”and 100% waterborne coatings willbe used from the outset. Flooring materialswill be “current industry standards”,but the company intends to source moresustainable material from within NorthAmerica. Marron said it recognises thatthere are supply and quality issues thatneed to be addressed in this area and itwill work with customers to make sureany alternatives meet their needs.The recent anti-dumping casebrought by Stoughton Trailers againstCIMC and Singamas highlighted thatUS customers have some specific designrequirements. These include a minimumclear interior width of 100 inches anda sidewall corrugation depth of 30mm.Marron said AICM meets these criteria,as well as the standards set by of the Associationof American Railroads for domesticintermodal containers.AICM has shown prototype containersto railroads and trucking industrycompanies, and the responses havebeen overwhelmingly positive. However,while many US container ownerssay they would welcome a US supplier,their submissions in the Stoughton antidumpingcase highlight that price is akey consideration. That case, said Marron,and the end result that countervailingduties were not imposed on Chineseimports, has not dampened AICM’s enthusiasm.It believes that by leveragingautomation and the strength of its owndesign, AICM will be very competitive.Full scale production is scheduled tobegin early in 2016. Currently, CenterLineis building and testing theproduction line equipment at its facilityin Windsor, and once this process iscompleted it will be broken down andshipped to Alabama.The plant will have a capacity of15,000 containers a year. AICM is focusingon 53ft containers initially, but thereare plans to add other domestic specialcontainers for the storage industry, militaryand other applications in the future.June 2015 17

Rhenus Bulktec for containersRhenus Logistics in Germanyis offering an application calledBulktec as a way of transportinga range of dry bulk commoditiesin standard steel containersinstead of having to use moreexpensive dedicated bulk containers.The Bulktec system comprisesa plastic coated liner bag,into which the cargo is loadedfrom a silo with an air blower.At the discharge point, the processis reversed. The system isclaimed to be particularly suitablefor bulk cargo that creates alot of dust and/or has poor freeflowingcharacteristics. Typicalexamples are paint pigments,cereals, sugar, cement, fertilisersand dry fuels. The (un)loadingprocess is said to take around 30minutes.“The real secret behind thisnew technique is the significantlyhigher utilisation of loadcarryingcapacity,” said GeorgFank, managing director of adedicated new division of RhenusLogistics, Rhenus BulktecSelf-lifting containersAlberta, Canada-based ExcaliburShelters has launched anew “self-lifting container”.Director Douglas Duncan saidfinding an efficient way to movecontainers in remote locations,like oil fields and disaster areaswhere cranes are not available,is a key challenge Excaliburset out to address when designingits self-lifting concept.The SL-Tainer is raised withfour in-built hydraulic legs. Thelifting system fits within thestandard ISO footprint, so thecontainer can be transported as anormal ISO box. The legs extendoutwards from the container toprovide an inside clearance widthof 3.138m for truck loading.GmbH. “Using 20ft or 40ft containersenables us to combine awide variety of cargo shipmentsand this reduces transport costssignificantly.”As an example, said Fank,based on an average bulk cargoweight, it is possible to reducethe costs by one third for transportinggoods from the Rhine-Neckar region to the Helsinkiregion in Finland, compared toa 40ft container using big bags.The savings are even higher incomparison with silo trucks.The cranes can lift around30t to a height of 1.6m and arecontrolled manually or with anoptional self-levelling system.They are powered either fromthe truck PTO or with a separatepower pack, with a 9 kWmotor and a two-speed hydraulicsystem. Excalibur has patentson a range of other concepts,including a “Tri-Tainer” systemthat expands out of a 20ft or 40ftcontainer to provide a shelter.New tankfrom HoyerGermany’s Hoyer has launcheda new mini tank with an operatingpressure of up to 6.67 barfor transporting hazardous goods.“By adding these containers ofthe type UN T 22 to its repertoire,Hoyer is augmenting itsown intermediate-bulk-container(IBC) fleet with a variant thatmakes high operating pressurelevels of up to 6.67 bar possible,and thereby corresponds to themaximum safety requirements,”the company stated.With a holding capacity of1,100 litres, the containers are designedfor the storage and transportof smaller product volumes underconditions of overpressure. “Withthese new mini tanks, we haveagain succeeded in expanding ourutilisation spectrum,” said UweBartels, European sales managerIBC logistics at Hoyer. “They willfurther enhance our worldwidecommitment in the transportationof hazardous goods, for exampletoxic substances of the class 6.1.”The APC rack referred to onpage one of this issue is an importantfactor in the cost ofgetting Chinese 53ft containersinto the US. Initially these containerswere shipped on charteredbreakbulk vessels, at a costof up to US$1,000 each. Usingthe racks to load them on regularcontainer services, US containerowners have been able toget their boxes to the US WestCoast full of import cargo andactually earn revenue on delivery.It is not known how the casewill affect QPCL’s 53ft containerbusiness. There are around600-700 APC racks in service,of which CIMC believesaround 200 units were suppliedby QPCL. The China SupremeCourt has ordered QPCL toCONTAINER INDUSTRY NEWSItaly’s Sicom at 40Typical Sicom container-type steel swap body for Italian intermodal specialistAmbrogioSicom SpA, the Italy-basedmanufacturer of containers andswap bodies, has celebrated its40th anniversary in the business,a remarkable achievement givenhow container manufacturing inEurope generally is very much athing of the past.“We are unique in the market,which is dominated by Chinesefirms that for many years havehad the advantage of low labourcosts,” said Sicom’s sales andmarketing director Silvio Alfero.“We design and manufacture inItaly everything that we sell, inspite of the pitiless competition.Our motto is flexibility.” Alferounderlined the point that at notime during or since the 2008-09financial crisis has Sicom ended ayear “in the red”.Last year the company turnedout 5,000 containers and swapbodies and achieved sales of €24M.Only 10% of customers were Italian,the rest being mainly in Germany,followed by France andelsewhere in Northern Europe.Sicom started out in 1975 asa producer of ISO containers forthe local Italian market. Overtime it expanded and diversifiedits range, which now containsaround 50 steel container typesand designs, sold to internationalshipping companies, containerlessors, intermodal operatorsand road hauliers. The plant sitein Cherasco (Cuneo) occupies13-ha and has its own rail siding,while the factory has three productionlines.Production includes 20ft and40ft open tops, dry vans, flatracks,ventilated containers, bulkcontainers, curtainside containersand swap bodies. Mobile shelters,fitted offices and temporaryhomes are also produced.“In the first few months ofthis year, we witnessed a strongincrease in demand, but the markethas slowed down again,” saidAlfero. However, there is an underlyingstrength to the intermodalmarket, not least because bulkcontainers, which provide operatorswith flexible distributionoptions, are replacing older bulkwagons as the latter reach the endof their working life.CIMC wins legal battlecease producing its version andto compensate CIMC for economiclosses.For CIMC, the case is importantrecognition of the valueof the patent process. It spendsRMB4M-5M per year on patentapplications and maintenancefees for over 3,500 patents,1,600 of which relate tocontainer technology. “As aleader of container industry,CIMC always pays attention tointellectual property,” said WangYu, general manager, legal affairsat CIMC. “The main purpose,”he added, is to “construct an environmentof good market competitionto advocate the respectof technical progress and intellectualproperty and to promotethe healthy development of thecontainer industry”.WEW special for DowGermany’s WEW WesterwälderEisenwerk GmbH, a specialisttank container manufacturer,has developed a 5,000-litre tankin an “ISO style” frame to transportcatalyst for Dow Chemical.“WEW worked closely withus in designing the solution fortransporting the catalyst,” saidGastón Garayzar from DowChemicals. “It was very mucha partnership between the twocompanies, which has resulted ina tank very much fit for purpose.”Dr Ulrich Bernhardt, managingdirector of WEW, commented:“Dow quite rightly demandeda very high level qualitytransport solution which met orexceeded international transportrequirements. Our in-depth experienceof these enabled us toprovide them with a solution totheir requirement.”The 5 m 3 units have been designedto fully meet the ATEXrequirements. WEW cooperatedwith its suppliers to source theright agitators and valves beforeintegrating the components intothe tank, manufactured at thecompany’s facility in Weitefeld,Germany. The units measure 10ftlong, 8ft 6in high and 8ft wide.WEW developed the specialist tankfor Dow Chemical18June 2015

PORT DEVELOPMENTMiddle East magnetismDespite the fall in oil prices, theMiddle East container markethas remained relatively strongand there is considerable potential forgrowth as manufacturing and assemblyindustries become more important inthe region. Meanwhile, the import ofconsumer and capital goods by privateindividuals, government agencies andcompanies has more than held up, despitethe fall in oil and gas prices over the past12 monthsFigures published by UK-based ContainerTrades Statistics for the first fourmonths of 2015 confirm this bullish picture,with containerised imports increasingby 10.1% to 4M TEU in the January/April period. Emerging markets led theway, with imports from Africa and Centraland South America up 27.6% and21.3%, respectively.The largest trades into the Middle East,from Asia and Europe, grew by 8.7% and9.5%, respectively, which was very similarto their performance in 2014 (see table, p20).On the upWhile exports have slowed this year, theoverall trend is up. Over the past decadethe imbalance between full imports andexports has narrowed considerably, whichis good news for liner operators as itmeans a higher percentage of carryingscomprise loaded boxes.Industrial diversification programmesbeing pursued by governments acrossthe region are also fundamental to thesechanges as factory output is primarilygeared to selling products in internationalmarkets. In part, these projects are beingspeeded up as a consequence of the sharpfall in oil and gas prices that has takenplace over the past 12 months.Michel Looten, maritime director ofthe Netherlands-based consultancy groupSeabury, is very optimistic about the Asia-Middle East/South Asia trade. “Despitethe market being more seasonable thanthat between Asia and Europe, last yearsaw growth rates on the Asia/Middle Eastleg grow faster and I expect this ‘outperformance’to continue in 2015,” he said.“The market is being propelled bystrong rises in the demand for raw materialsand consumer goods, with lighting,table and kitchenware items and domesticappliances up by 99%, 19% and 13%, respectively,in 2014 on the previous year.”Strategy rethinkLooten projected that by 2020, the Asia-Middle East/South Asia trade would belarger than that between Asia and Europeand this called for “ocean carriers to rethinktheir strategies” when it comes toserving the overall Asia-Europe corridor.Over the past three years, the Asia/Middle East (including Red Sea)/Asiatrade has seen several new entrants, a raftof new partnership agreements signedand, above all, a spike in the size of vesselsdeployed. These trends are continuing, asoperators look for the most efficient andcost-effective way of serving the market,and they have a surfeit of large ships thatthey need to find trading homes for.Earlier this year, Geneva-based MSCstarted its New Falcon service with eight8,000 TEU ships previously deployed inits Asia/Europe network. The link, whichreplaced a transhipment operation overSingapore, offers the line’s customers improvedtransit times and enhanced levelsof reliability.The service focuses on China, withvessels calling at six ports in the country,the growing exchange of cargo betweenthe Middle East and India, and SaudiArabia’s burgeoning chemical exports. Itsfull itinerary comprises Xingang, Busan,Ningbo, Shanghai, Fuzhou, Chiwan, PTP,Singapore, Colombo, Jebel Ali, Dammam,Jubail, Mundra, Nhava Sheva, Singapore,PTP, Chiwan and returning to Xingang.With liner trades to/from the Middle Eastprojected to remain bullish, terminals arebeing improved and new ones built toaccommodate the expected growthployed on an itinerary that involves callsat Busan, Shanghai, Ningbo, Chiwan,Shenzhen, Singapore, Port Klang, Colombo,Kochi, Nhava Sheva, Mundra andJebel Ali. The ships return to Busan viaPort Klang and Hong Kong only.As in the core east/west trades, the use ofbigger ships is being accompanied by theformation of larger operating pacts. Theseare essential if the volume of cargo neededto ensure high utilisation rates is generatedand carriers are to realise the economiesof scale from using larger tonnage.Port investmentsMiddle East port authorities and terminaloperators are generally well positioned tocope with the anticipated increases in cargoBOOSTING CONTAINERvolumes and the phasing in of larger ships.Currently, an estimated US$35B-40Bis earmarked for modernising, upgradingand building new ports in the MiddleEast, as they are seen as catalysts for newindustry, logistics ventures and even cities.The region has seen the widespreaddevelopment of vertically integrated portcomplexes where industrial zones, logisticsvillages and associated service industriesare clustered around traditionalcargo handling facilities.In particular, the strategy has been drivenby a desire by port authorities and terminaloperating companies in the regionto forge closer links with end customers.This enables the parties to then offer arange of logistics and support services thatgo well beyond standard stevedoring andcargo handling activities.The port of Khalifa (UAE), King AbdullahPort (Saudi Arabia) New Doha(Qatar) and developments planned onBoubyan Island (Kuwait) and at Al Faw(Iraq), all feature elements of this approach.Saudi spendingSaudi Arabia is ploughing massiveamounts of capital into modernising itstransport infrastructure, including itsports. A second terminal is under constructionin Dammam, boosting capacityby at least 1.8M TEU/year, Jubail hasbeen modernised and substantially upgradedto handle containers and the newsuper port at King Abdullah EconomicCity on the Red Sea coast is taking shape.Currently, King Abdullah Port (KAP)comprises a 1.15 km quay for containers,with capacity to handle 2.5M TEU/year. By 2017, the port’s capacity will be3.7M TEU, and by 2030 it could be asHANDLING PRODUCTIVITYTEREX PORT SOLUTIONS – CUSTOM AND HOLISTIC SOLUTIONS TO MEET YOUR NEEDSTerex Port Solutions offers a comprehensiveportfolio of products and services:A For loading & unloading, transport,stacking and handling containersA For terminals of all shapes and sizesDiscover our holisticcontainer handling solutionswww.terexportsolutions.comA For manual and automated terminalsA Advanced software to provide realistic viewsof terminal cargo flows prior to constructionA Value-preserving life cycle support toreduce downtime and cost of ownershipJoint serviceElsewhere, in the North East Asia/MiddleEast trade, Singapore-based intra-Asiaspecialist Regional Container Lines hasjoined up with Emirates Shipping Line,Korea Marine Transport Co and HanjinShipping Co, to start a new service. Seven6,500 TEU capacity ships are being de-Terex, the Terex Crown design, Terex Gottwald and Works For You are trademarks of Terex Corporation or its subsidiaries. All other trademarks are property of their respective owners. © 2015 Terex Port SolutionsJune 2015 19

PORT DEVELOPMENT NEWSContainerised trade to/from the Middle East/South Asia (TEU)Region/YearExports toEuropeAsiaNorth AmericaSouth & Central AmericaAustralasiaAfricaTotalImports fromEuropeAsiaNorth AmericaSouth & Central AmericaAustralasiaAfricaTotalAssociate Sponsor20132,195,7002,130,0001,012,300281,400129,900950,7006,700,0003,076,5005,700,1001,047,200284,100206,600454,60010,769,100Notes: M4 = Jan-April inclusive. Source Container Trades Statisticsmuch as 12M TEU, depending ondemand.The port is close to major andfast-growing Saudi Arabian cities,such as Jeddah, Medina, Mecca,Rabigh and Yanbu, and the maineast-west shipping channel linkingEurope and Asia. Potentially,therefore, KAP has considerableopportunities in the domesticgateway, regional hub-and-spokeand interline relay businesses.MSC is KAP’s largest customer,while the carrier’s affiliateTerminal Investment Limited hasHost PortFind out moreGlobal Port Partner20142,358,4002,161,3001,164,800303,100163,6001,086,1007,237,3003,359,9006,191,0001,066,500321,000250,500568,20011,757,100SponsorsChange7.4%1.5%15.1%7.7%25.9%14.2%8.0%9.2%8.6%1.8%13.0%21.2%25.0%9.2%a shareholding in its operation.Emirati expansionThe UAE is not far behind SaudiArabia when it comes to port development.While DP World, the globe’sfourth largest operator of containerterminals, has raised the capacityof its flagship operation atJebel Ali to 19M TEU a year, AbuDhabi Ports Co (ADPC), whichowns the new port of Khalifa, ispushing ahead with its phased expansionprogramme.M4 2014808,100787,300371,30091,80053,700353,8002,466,0001,053,2001,936,100331,80098,40075,700157,6003,652,800www.tocevents-me.comSupported byM4 2015783,600725,600435,700112,00057,400355,5002,469,8001,152,9002,105,100342,200119,400101,600201,1004,022,300Global Media Sponsor8 & 9 December 2015Le Méridien Dubai Hotel& Conference Centre, DubaiIncluding conferencesTOC returns to the Middle EastJoin the industry leaders in Dubai this December High level conference Forum for cargo owners Enhanced networking Stunning new hotel venueChange-3.0%-7.8%17.3%22.0%6.9%0.5%0.2%9.5%8.7%3.1%21.3%34.2%27.6%10.1%The new T3 facility at Jebel Ali,which opened in October 2014, isneeded as the Middle East’s largestcontainer port continues to breakrecords. Last year, its box traffic totalled15.2M TEU, up almost 12%on the volume in 2013.And the momentum has continuedthis year with Jebel Alihandling 7.7% more containersin the January/end-March periodthan in the corresponding semesterof 2014. In all, 3.9M TEU wasprocessed at the port.The port continues to invest inIntroducingmodern equipment and systemswhile capitalising on its role as themaritime centre for the regionand gateway for the UAE andJebel Ali Free Trade Zone (JAFZ).StrengthenedThe relationship with JAFZ hasbeen strengthened by DP World’sdecision to buy Economic ZonesWorld FZE. “This transactionfurther reinforces our position asthe leading logistics hub in theregion,” said DP World chairman,HE Sultan Ahmed Bin Sulayem.“Combining the two assets makeseconomic and strategic sense, includingfor customers, particularlyin the context of the significantgrowth in port capacity at JebelAli and the strong economicoutlook for Dubai and the widerGCC region. It allows DP Worldto coordinate its planned expansionprogrammes and deliver improvedcustomer propositions.”At Khalifa, ADPC and the IndustrialDevelopment Bureau ofAbu Dhabi’s Department of EconomicDevelopment (IDB) recentlysigned a memorandum ofunderstanding to establish a jointprogramme that will help attractinvestment and further developand enhance the fast-evolving in-Supporter ofdustrial sector of the nation.Ayman Al-Makkawy, an executiveat IDB, said. “This agreementand the resulting advancementin expanding current service offeringsfall within the frameworkof IDB’s objectives of developingand implementing policies, plansand programmes as well as providingorganisational, legal andenvironmental guidance for thedevelopment and construction ofindustrial projects in the Emirate.”Among the projects and initiativesthat will be pursued by thetwo entities will be the launchof joint employee training programmesand industry workshopsso that the region can keep up-todatewith global practices.Kizad factoryIn other developments, PolarSpecialized Industries (PSI), awholly owned subsidiary of theindustrial conglomerate Adearest,announced that it would investAED50M (US$13.6M) in anew manufacturing facility in theKhalifa Industrial Zone (Kizad).PSI will produce refrigerationskids, steel pressure vessels, steeltanks, and switch gears for refrigerationand cooling systems at thenew plant, which will occupy anarea of 23,617 m 2 .“Kizad will offer our PSI facilitythe perfect environment toproduce high quality products forour growing customer base, bothin the UAE and beyond,” saidHans Raaymakers, general manager,of Adearest. “In addition, theport will significantly support ourambitions to further expand intothe Gulf Cooperation Councilcountries and the wider MENAregion, as well as into Asia.”Mohamed Juma Al Shamisi,CEO of ADPC, which ownsKhalifa, attributed Adearest’s investmentto Khalifa’s investmentin new technology, its improvinglevels of connectivity and its commitmentto expand.Earlier this year, Abu DhabiTerminals (ADT), which operatesthe cargo handling facilities at theport, concluded a AED300M loandeal with Abu Dhabi CommercialBank (ADCB) to help finance thefurther development of Khalifa.On completion of its phase onedevelopment programme, theport will have the capacity toprocess 2M TEU a year.Oman planIn neighbouring Oman, the portof Sohar continues to be expandedand the port of Duqm graduallybrought on line. In the caseof Sohar, its box handling capacityis being doubled from its currentlevel of about 800,000 TEU. Ultimately,though, the master planinvolves developing facilities thatwill have the capability to process6M TEU a year.The port is located just outsidethe Straits of Hormuz, lying approximately100 km from Khalifaand 160 km from Dubai. In additionto serving the local industrialand free trade zones, Soharis the main gateway for Oman’scapital city Muscat, and is keen tobecome more involved in the regionaltranshipment business.Both the port and the free tradezone are managed by Sohar IndustrialPort Co, which is a joint venturebetween the Omani governmentand the Port of Rotterdam,while the port’s Oman InternationalContainer Terminal is managedby Hutchison Port Holdings.These names bring plenty ofcredibility to the complex andits operations, and cargo volumeshave risen rapidly in recentyears. In Q1 2015, boxtraffic totalled 123,533 TEU, upmore than 159% on Q1 2014.Principally, this reflected theshift of boxes from Mina Qabooswhich was closed for cargohandling activity last summer.Qatar builds bigAlso planning a 6M TEU capacityterminal is the Qatari government.New Doha (Hamad) willcomprise three container terminals– the first 2M TEU moduleis due in late 2016/early 2017 –and a multitude of other cargoprocessing facilities, includingterminals capable of handling 1Mtpa of bulk cargo, 0.5M vehiclesand close to 40,000 head oflivestock.An adjacent logistics zone withsites for light assembly and manufacturingindustries is also beingdeveloped as Hamad looks atvalue-added cargo processing andre-export opportunities.However, the way the Hamadproject is proceeding suggeststhere are concerns about whetherthere is a demand for so much capacity.Speaking at this year’s TOCAsia in Singapore, Dr MohamedBriouig, director of corporate affairsat Qatar Ports ManagementCompany, said the port authorityis still searching for a terminaloperator.The port is taking the unusualstep (nowadays) of purchasing allthe equipment and seeking a terminaloperator to run the port ona relatively short 15-year contract.This tends to indicate potentialoperators regard the project ashigh risk.Briouig was confident a terminaloperator would be announcedthis year. He pointed out that theterminal will begin with livestockand ro-ro operations, which arenot covered by the main containerterminal concession. PhaseI of the container terminal is notscheduled to be ready for full operationuntil January 2017.Containerising IraqHoping to capitalise on the growingtrade to/from Iraq and theaccelerating pace with which thenation’s breakbulk/general cargoexchanges are being containerisedis ICTSI, which manages BasraGateway Terminal (BGT) withinthe port of Umm Qasr.“ICTSI is always looking fornew opportunities,” explainedPhillip Marsham, CEO of BGT.The Manila-based terminal operatingcompany is investingUS$130M in refurbishing theexisting infrastructure and equipmentand constructing a new600m quay and 50-ha storageyard. The first phase of this development,which comprises 250mof berthing line and a 13-hayard, will commence operationsin mid-2016 and have a 300,000TEU throughput capacity. Whencompleted, the new terminal willbe able to handle 600,000 TEU ayear.But Marsham is not only interestedin handling containers. Hesees opportunities in supportingthe country’s burgeoning oil andgas industries, not only by handlingcargo, but in offering a rangeof support and logistics services.Elsewhere in Iraq is the plan bythe government to build Al-FawGrand Port. Representing an estimatedinvestment of US$8B, itwill be the private sector that takesthe leading roles in constructingand operating the complex. Whileno company has been appointedfor the project, WorldCargo Newsunderstands that the nation’sMinistry of Transport is studyinga number of bids, including fromcompanies based elsewhere in theMiddle East, China and Turkey. Amaster design plan has been completedfor Al-Faw, which, if fullydeveloped, will have the capacityto handle 99 Mtpa of cargo.Trading prospects in the MiddleEast are bright and all partiesare gearing up to handle the risingcargo volumes. 20June 2015

NEWS SHIPPINGIs bigger that much better?In less than five years, the average sizeof vessel deployed in the world’s linertrades has risen from 3,000 TEUto over 3,600 TEU. Meanwhile, the largestbox ship in service has increased to19,224 TEU (MSC OSCAR-class), a jumpof almost 24% on the 15,550 TEU vesselin operation in 2010.The situation is continuing, withOOCL and Mitsui OSK Lines bothordering units able to load over 21,000TEU. Ships with capacities of 24,000-plus TEU are likely to be deployedwithin the next four years.“We have been working closelywith Lloyd’s Register for some timenow and can confirm that there is notechnical reason why ships cannot goabove 20,000 TEU,” said Andrew Penfold,project director at Ocean ShippingConsultants.Jesper Praestensgaard, a senior advisorat Boston Consulting Group and chairmanof shortsea and feeder operatorUnifeeder, certainly thinks vessels willget larger. “The combination of a commoditisedindustry, inelastic demand andstructural overcapacity means carriers’focus is on costs,” he explained.“Since their [ocean carriers] most significantcost is their vessels and the capitaland operating expenses that go withthem, there is a huge incentive for themto build bigger ships. At least this waythey can compete, as they get higher levelsof fuel efficiency and lower slots costs.There is also funding available.”Hans Augusteijn, head of network andprocurement in North Europe for MaerskLine, dismissed the idea that it was allabout having the biggest ship in service.“We assess in detail the markets we tradein, and our new 19,600 TEU ships forthe Asia/Europe/Asia trade are designedto accommodate the growth that we seetaking place in the market,” he asserted.Big ships, big costsNonetheless, a mood change might betaking shape and the appetite for bigships could be slowing. Several speakersat TOC Europe alluded to various diseconomiesof scale occurring and to oceancarriers as unfairly taking advantage ofall of the cost savings and pushing all ofthe additional expenses and operationalchallenges into other sectors of the supplychain.Neil Davidson, senior analyst portsand terminals at Drewry Maritime Advisors,referred to a “tipping point” beingreached. “Shipping lines are drivingdown their sea transport costs and savingmoney through the deployment of thesebigger ships,” he said. “But this is generatingsignificantly higher costs in otherparts of the supply chain, particularly inports and terminals.”According to a white paper publishedby the International Transport Forum(ITF), mega ships could add as muchas US$400M in annual costs across thetransport chain, with roughly a thirdrelated to equipment, a third to dredgingand a third to port infrastructure andport hinterland activities.Furthermore, the report warned thatthe situation would only get worse, withthe introduction of even larger containervessels resulting in only marginalcosts savings for the carriers, but “phenomenal”infrastructure upsizing costselsewhere.Scaling backMoreover, the ITF, which is a unit ofthe OECD, stressed that big ship scaleeconomies were easing. “Doubling themaximum containership size over thelast decade has reduced total vessel costsper transported container by a third,”stated the authors of the report. “However,these cost savings are decreasingwith ever-bigger ships, and are four tosix times smaller this time round than inthe previous round of upsizing.”They argued that at least 60% of costsavings being realised from the deliveryof the latest large series of vessel wererelated to the design of more efficientengines than to scale economies per se,and that the latter would reduce further,particularly as high utilisation levelsThe recent TOC CSC Europe conferencesaw a heated debate about growing shipsizes, while an ITF report warns of costincreases from their usewere also necessary to maximise savings.Turning to the port interface,Drewry’s Davidson questioned the abilityof ports/terminals to “step up” to theproductivity levels required. He repeatedDrewry’s view that to go from the current3,000/3,500 moves a day to 6,000will require “a revolution and not just anevolution in handling technology”, andautomation is no “magic bullet” in thisregard.Productivity concernsMaersk’s Augusteijn was also concernedabout terminal productivity and increasingport time. “Improving cargohandling performance levels in ports iscrucial to us achieving the economiesof scale from deploying bigger ships andpassing these savings on to the rest of thesupply chain, but this is not happening,”he argued.While he acknowledged improvementsin berth productivity had takenplace, he stressed that this had been ata slower pace than the increase in vesselsizes. As to moves per crane hour, theexecutive alluded to this benchmark asnot having changed in the past four yearsor so.“Worryingly, it means vessels arespending longer in port and this is notwhat I had expected to happen,” he said.“While we do not have a golden bulletthat will solve the issues at once, weknow we have to help the process andthat means making sure our ships arriveon time, that stowage plans are betterorganised and all information is sharedso that planning and terminal operationscan be geared up ahead of the vessels arriving.”Rewarding performanceMaersk is also putting in place performance-relatedcontracts at some facilities.Essentially, this involves the line sharingsome of its cost savings from slowsteaming with the terminal operator/stevedore that turns the ship quickly, but,as Augusteijn said, then “sharing in thepain” if vessels have to speed up becauseof poor performances.The deployment of ULCVs are leadingto immense challenges across thewhole industry and never before has thebalance between cost savings and costincreases in the container supply chainbeen so close. That so-called tippingpoint is fast approaching. June 2015 21

CARGO HANDLINGTerex looks to a strong futureTerex Port Solutions (TPS)had its best ever year in2014, logging net salesabove US$846M, and for the firsttime generating an acceptablelevel of profitability. The contrastwith 2013 could not be starker,remarks Steve Filipov, presidentof Terex Material Handling andPort Solutions (Terex MHPS),which covers both TPS and thenon-Gottwald side of the formerDemag Cranes AG. Turnover wasThe new Stackace ECHs are availablewith Stage IV/Tier 4 Final enginesIN COOPERATION WITH1ST COOL LOGISTICS ASIA | www.coollogistics.asiaWEDNESDAY 2 SEPT 2015 | ASIAWORLD-EXPO | HONG KONGSPONSORSTerex Port Solutions has strengthenedits position in the market andis investing to secure continuedgrowth over the long termmuch lower and TPS booked afirst half loss of US$40M, which itmanaged to turn into a small profitof just US$6.34M for the year.TPS was formed in 2012 bycombining Gottwald Port Technology,acquired as part of thetakeover of Demag Cranes in2011, and Terex Port Equipment(TPE) into one company. TPEwas formed in 2009 after Terexacquired Fantuzzi Reggianegroup, which included the Noellbusinesses in Germany and China.Serious playersThese mergers and acquisitionspropelled Terex to near the pinnacleof the global port equipmentbusiness, with a diversifiedproduct portfolio covering everylifting group. “TPS is here for thelong haul and we are aiming tofix things for 20 years ahead andbe the number one supplier,” saysFilipov. “This is the best way togive value to our customers andour stakeholders, our owners andteam members.”Despite last year’s good results,TPS has previously admittedthat 2014 was a disappointingyear for mobile harbour cranes(MHCs), but Filipov and Klaus-Peter Hoffmann, vice presidentand managing director of TPS, saythat internal and external issuesaffecting this segment have beenresolved and, based on a good firsthalf, it is already clear that 2015will be a much better year forMHCs. Meanwhile, TPS’s leadin the rail-mounted and bargemountedderivative crane sectorsSteve Filipov, president of Terex Material Handling and Port Solutions (left)and Klaus-Peter Hoffmann, vice president and managing director of Terex PortSolutions, righthas been further strengthened.In any event, TPS has continuedto invest in the MHC sector,improving product groups andintroducing more products at thelighter end (e.g. Terex-GottwaldModel 2, Terex Quaymate M50).“Smart crane” products such asLoad Guidance (including antisway),Auto-adaptive Grab FillLevel Control, Vertical and TandemLift Assistant and VerifiableWeighing System are availablewith all the crane groups.A key challenge is to maintainthe momentum from last year, asforex trends are less favourableand there are also difficulties insome geographic markets. On topof that, 2014 was an exceptionalone for TPS’s automated products,with around US$230M of salesfor major automated equipmentprojects in Rotterdam and LongBeach.Soft touchLBCT was also supplied withCONTROLS emulation softwareand TEAMS operating softwarefrom TPS subsidiary TBA.Within TPS, Netherlands-basedTBA heads up the “soft side”,which includes also two UKbasedspecialists, CSA and DBIS.Filipov makes it clear that the terminalconsultancy and planningservices including simulation andemulation have to be completelyneutral and there has to be – andis – a secure “firewall” in place.Customers need to be confidentthat they are getting objective adviceand that their commercial secretsare not being passed on.All AGVs supplied in 2014(Lift-AGVs in the two Rotterdamcases) are battery-electric drive,and for the time being TPS isstaying with lead-acid batteries, asa mature, cost-effective and wellunderstoodproduct that, moreover,provides almost 100% recyclability.However, TPS recognisesthat the price:performance ratioof Lithium-ion batteries is steadilyimproving, and Hoffmann saysa trial with a Li-ion battery AGVwill shortly be announced.The continuing popularity ofAGVs for automated terminalsnaturally gives TPS, as the leadingsupplier, a strong base for thefuture, but it is aware of growingcompetition from alternativeconcepts and from new players,and so it will continue to investin product development. After all,the Lift-AGV was developed becauseit was recognised that someoperators wanted to have decouplingat the AGV/ASC interface.Another area where TPS believesit is currently the globalmarket leader is straddle carriers,with well over a 50% share. Justnow, the company has reportedan order for 20 of its latest dieselelectricdrive machines with Tier4 Final engines from PNCT, thePorts America and TIL (MSC)joint venture in New Jersey. AllTPS straddle carriers and Sprintercarriers are built at the Würzburgplant, and there are no plans tochange this.Make the most of itTPS is, however, looking to makethe best use of its global engineeringand design resources incooperation with Terex MHPS.For example, the Quaymate M50MHC, which is aimed at Chineseriver ports and smaller ports inSEA, was designed by TPS withinput from TPS China in Xiamenand Terex India Research Centrein Pune.An integrated approach has alsobeen taken to the new generationof Liftace reach stackers andStackace EC mast trucks. Reachstacker production has been consolidatedin France, but Hoffmannsays the new products incorporatethe best features of the legacy Italianand French machines as wellas improved features. The first 14Liftace 5-31 machines with Tier4 Final engines have been sold tocustomers in North America andEurope.The new Stackace EC masttrucks are still built in Italy, continuesHoffmann, but they illustratehow TPS is developing commonplatforms, which lowers costs andprovides value to the customer.This homologation means, forexample, that a driver can operatea Liftace or a Stackace andknow that the machines are fromthe same company as the “feel”is the same, something whichhas not been possible up to now.Over the next 2-3 years, theLiftace and Stackace productranges will be extended (e.g.long wheelbase intermodal reachstackers, 8/9-high empty stacking)to provide comprehensivemarket coverage. In addition, anew line of heavy (40-52t) FLTs,also available with Stage IV/Tier 4Final engines, will be built in Italy.Some reach stackers, mastedECHs and FLTs are built in Chinaunder legacy from Fantuzzi, andTPS is continuing this flexible approachbased on the new productlines. While the Quaymate M50 isbuilt completely in China, thereare no plans to switch any mainstreamMHC production fromDüsseldorf, Germany. The shortlead times in the MHC businessmean that products have to bepartially built and then completedquickly once an order is confirmed,and the size of the overallmarket does not support havingtwo sets of inventory costs.Coming backConversely, Filipov reveals thatTPS is considering bringing someRTG production back from Chinato Europe, and one or moreof the Düsseldorf, Würzburg andLentigione plants could be involved.This is partly in responseto the long-term currency outlookfor the Renminbi, but itwill also make it easier for TPSto compete for EMEA orders forRTGs, since the shipping costswill be much lower.It is not always possible to keepproduction close to the customer,despite Terex MHPS’s globalfootprint. The former Demagplants in Brazil and India are notreally suited to port equipmentproduction, although the facilityin South Africa previously builtRMGs and, after a gap of manyyears, is doing so again, with anorder from Transnet for intermodalRMGs for Durban.STS crane production is likelyto remain in China for the foreseeablefuture. TPS has no plans tobuild up capacity to try and takeon ZPMC, but the Xiamen plantis doing well and an importantnew order for STS cranes for anundisclosed customer has reportedlybeen booked. 2014 was a record sales year for TPS automated equipment – US$230M22June 2015

CARGO HANDLINGCrane control for the futureCrane automation presents a challengefor the crane control sector.Crane manufacturers havelong sold their own ‘drive’ or crane controlsystems in competition with specialistdrive suppliers, but automation changesthe scope of the ‘drive’ significantly. Notonly does it cover the functions of thecrane, but adds extra dimensions in howthe cranes interface with process automationsystems, remote control operators andsoftware applications, including the TOS.The challenge is bigger, but automationis a market segment no supplier canchoose to ignore. The most recent World-Cargo News yard crane survey in November2014 identified 430 automatedstacking cranes (ASCs) scheduled to bedelivered in 2014 and 2015 – to 19 differentterminals. Since then more automationprojects have been announced.One of the latest is PSA Sines, whichis following Hongkong InternationalTerminals (HIT) and retrofitting remotecontrol (RC) systems to RTGs. After apilot project with one RC desk, the companyhas placed an order for seven furtherdesks to operate its fleet of 11 KalmarRTGs, delivered earlier this year.Emerson Industrial Automation is nowlooking to supply systems for automatedcranes. Gian Dubini, global business developmentdirector, port logistics, said it hasdeveloped an ASC crane control systemand is now looking for its first order. Hesaid meeting the challenge of automationis necessary both to win new business, andto meet the future needs of existing customersthat are considering automation.Mix and matchTo date, most terminals using ASCs useone supplier for the crane control system,but HHLA took a different approach toits latest expansion at Container TerminalBurchardkai (CTB) in Hamburg. CTBwas the first terminal to operate KalmarASCs (excluding the Nelcon cranes atECT, delivered prior to Cargotec acquiringNelcon), and now operates eightblocks with three ASCs per block.HHLA has now ordered 12 newASCs from Kuenz with the ABB cranecontrol system, with an option for additionalunits. HHLA used Kuenz/ABBat its other automated terminal, CTA,which is equipped with 52 ASCs. Kuenzsales director Michael Geiger said its ASCconcept has been “significantly improvedwith regard to the components’ lifetimeand easy and efficient maintenance solutions”.The travel gear, trolley and E-house will be manufactured in-house and“lab tested” prior to delivery.The order is another success for ABB,which, according to Uno Bryfors, VPcrane systems, has now delivered over 600ASCs with RC systems. Delivery of theKuenz cranes is scheduled for 2016.Konecranes milestoneKonecranes reached an important milestonewith the delivery of its first ASCcranes equipped with its own cranecontrol and automation system to Indonesianterminal operator Pelindo III forits Lamong Bay facility, Terminal TelukLamong. Konecranes has supplied thewhole automation system, including integrationto the TOS (supplied by RealtimeBusiness Solutions) and the RemoteOperator Station (ROS).Konecranes has worked with TMEICon several ASC projects. Tuomas Saastamoinen,Konecranes sales and marketingdirector, Port Cranes, stressed that this relationshipwill continue “in cases where itmakes sense to everybody, especially thecustomer”. In Lamong Bay, however, theterminal operator has Konecranes STScranes “and it made sense to unify thetechnology from the STS to the yard”,he added.With regard to its own technology,Konecranes is developing its “NextGen” automation products, with a ROSthat combines graphical and camera images.The crane control system combinesKonecranes’ Active Load Control systemwith an “advanced machine vision system”that detects containers and containerprofiles. The target is measured directlyfrom the spreader, and not by calculatingAutomation and remote control dominatedevelopments in the crane control sectorthe trolley’s relative position to the target.“Machine Vision” and similar conceptswill play an important role as suppliersrefine the concept of the remote operator.Early systems were based on usingcameras to give the operator the best possibleview of the operation, but softwaretoday offers more possibilities to combinecamera views with the known, or future,position of objects or people, giving theoperator an image of issues before theyactually come into view.Teluk Lamong will be joined next yearDO YOU NEED ...Load Handling at Top Speed?Reduced Spreader Downtime?Accident Prevention?NEWPERFORMANCELEVEL dHIGH-SPEEDby Pelindo III’s new terminal in Semarang(TPKS), which will feature Konecranes’own automated RTG technology. Thereis a lot of interest in this project, to seehow Konecranes manages not only thecrane control, but the traffic flow arounda rubber-tyred machine.Automated RTGs are shaping up as achallenging application, especially retrofitapplications, where ‘basic’ crane control –ZPMC remote control station for ASCs atXOCT terminal in XiamenLEHNERTcrane intelligenceLENNIX.CharlieAutomation Solutionsfor STS Gantry CranesAvailable from WorldCargo News“Container TerminalPlanning - A TheoreticalApproach”A major study by Dr Itsuro Watanabe(Container System Technology)This comprehensive 245 page study is an in-depth analysis of capacity constraints, productivity, selectivityand flexibility of different container handling systems in terminals of different types and sizes: common-usersor 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 dateSignature............................................................ Date..................................................WCN Publishing: The Coach House, 24 Bridge Street, Leatherhead, Surrey KT22 8BX, UK.Please make payments to: WCN Publishing WCN PUBLISHING VAT No: 644 2190 53WOULD YOU LIKE ...WE HAVE YOUR CRANE INTELLIGENCE.Automation Assistance for Less Strain on the Crane Driver?Soft Landing for Reduced Spreader Damage?Collision Avoidance with Electronic Anti Sway?NEWTANDEMMODEOPERATIONLENNIX.TangoAutomation Solutionsfor Slewing CranesLehnert Regelungstechnik GmbHW.-Heisenberg-Straße 339106 Magdeburg, GermanyTel. +49 391 535473-0www.weblehnert.deMade inGermanyFax or e-mail this form to:+44 1372 370111sales@worldcargonews.comName...................................................................................................Title......................................................................................................Company ...................................................................................................................................................Address..................................................................................................................................................................................................................................................................Company business ...............................................................................Fax.................................................Tel..................................................June 2015 23

CARGO HANDLING NEWSmoving the crane along the blockand positioning the load/spreader– is a significant challenge. ASCsand the Konecranes RTGs forTPKS are purpose-built for automatedcontrol, but most RTGswere never built with it in mind.Drive systems with eight wheelsand a chain drive are common,but they are not considered thebest platform to automate. HITin Hong Kong is currently tryingto retrofit automation to RTGsat two separate terminals. Sourcesinvolved with the project say itis proving very challenging, withdifferent combinations of sensorsbeing tried to detect the positionof the spreader and the target.Choices aheadAs automation moves forward,it may be that some terminaloperators choose to purchasenew machines, rather than retrofitold ones, if they choose toautomate. As noted above, PSASines is “retrofitting” its KalmarRTGs, but the machines wereonly delivered earlier this year.Interest in remote controlledSTS cranes continues to build.Speaking at this month’s TOC21Europe in Rotterdam, ABB’sBryfors said there are now 50 STScranes with ABB remote controlsystems operating in seven terminalsworldwide – more than hasbeen disclosed previously. Theseterminals include DP World Yarimcain Turkey.Elsewhere, the three Liebherrcranes delivered to Patrick Stevedoresin Australia are equipped forfuture remote control, and Siemensclaims to have supplied remotecontrol automation systemsfor new STS cranes. These couldbe the three new ZPMC cranesfor ECT in Rotterdam, which arealso remote-ready.Also speaking at TOC Europe,Siemens’ head of sales for ProcessIndustries and Drives, GerhardFischer, said the company offersseveral automation modules, includingsway and skew control,which can be combined to delivera remote control STS crane. Theseinclude a truck positioning systemso the vessel interface can achievea productivity target of 40 movesper hour. Siemens sells systemsand components to crane OEMs,as well as end users directly.In an interview with WorldCargoNews, ABB’s Uno Bryfors saidthe industry is really still getting togrips with how best to use remotecontrol. It is a cultural as well as anoperational change, and there area lot of issues to address in movingto this style of working, includinghow long operators should sit orstand at their remote desk beforethey need a break. There may alsobe health and safety legislation toconsider in this regard.Remote drivingIn some cases, however, the craneis essentially driven from a remotelocation, without widercultural change. This might bea first step but, he said, it is “notsolving that much”. The challengefor terminals is to developa control room culture, wherethe potential of the technologycan be realised. This includeshaving multidisciplinary teamswhere remote operators can fillother roles when there are novessels to work, which can be aconsiderable period in terminalshandling one call a week from avery large vessel.Frank Tazelaar, managing directorof APM Terminals MVII terminal,had some interesting thingsto say about its motivation formoving to remote control cranesat the company’s new flagship facilityin Rotterdam. APMT wasnot looking, as other terminalshave, to support a major demographicchange or numerical reductionin the workforce. Remotecontrol STS cranes do not, as isthe case with ASC cranes, actuallyreduce the labour requirement.The main factor was that theterminal is a 50-year investmentand the height and speeds of thecranes are such that moving theoperator off the crane is a healthand safety issue. It was, in fact an“obvious” decision, given the requirementsof today, he added.The terminal worked withthe Dutch Technical Institute onworking environment, as wellas the social change involved inmoving to a remote control operation.They learned that thenatural reaction to try and mimicthe real operating environment ina remote location, with vibrationsand the noise of the operating environment,is in fact incorrect.The remote control environmenthas to be different, TazelaarOctober 19-21, 2015Messe Bremen – Conference & Exhibition CentreBremen, GermanyRegister Now!stressed, designed more to makethe operator identify and focus onthe parts of the role where he orshe is required to intervene. Becauseof this using a simulator isthe best way to train the operator,even if they have years of priorexperience in a traditional cab, assome behaviour will have to beunlearned, he explained.Not for gamersAs to the main requirements for aremote operator, Tazelaar stressedthat it is “not for young gamers”at all. “What is required are professionaldrivers that can focus ona repetitive task.”The “repetitive” element of therole is perhaps one of the biggestchallenges. Because the crane cycleis largely automated the operatorspends most of his or her timesupervising the crane, interveningonly when required to land thespreader or container on the vessel.There is a very real potentialfor boredom to set in.On this point, Bryfors mentionedthat the benefit of beingable to locate the operators in anoffice environment creates newpossibilities. Whereas working onthe crane makes a shift change amajor logistical exercise, it typicallytakes less than a minute for a remoteoperator to move out, a newperson to move in and change thedesk position to their preferredsettings. There is, he stressed, flexibilityfor terminals to devise waysto address the repetitive elementof the job in a meaningful way.An area where automation stillhas many challenges is intermodalcranes for handling containersfrom rail. A big part of the issuehere is the lack of standardisationin train and rail car equipment.Geiger from Kuenz said the biggestchallenges within Europe arethe need to handle continentalLDW soldLloyd Dynamowerke (LDW)is now on a stable footing afterbeing acquired by Korea’sHyosung Corporation in February.LDW filed for bankruptcyin October last year afterits then 95% owner, India’sKirloskar Electric Company(KEC), declined to inject thenecessary capital to allow thecompany to continue its operations.LDW had a significant orderbook at the time andthe administrator in Bremenopted to sell the company asa going concern. New ownerHyosung is a large industrialconglomerate with a turnoverof approximately US$11Bin 2013. LDW’s Holger Rubachsaid being part of a largergroup will have advantagesof scale, particularly in purchasing,which will benefitLDW’s business. Hyosung alsomanufactures its own range ofmotors, but will retain LDWproduction in Bremen, andcurrent customers, which includethe Liebherr Group, willsee no changes.traffic and maritime traffic at thesame terminals, and dealing withthe 80 different types of railwaywagon in service.There is also a wide variety ofIT systems in use, and no agreementon an “automation philosophy”concerning where craneintelligence should reside in thewider equipment layer design.Addressing these issues requiresthe industry to adopt an automationphilosophy in order to createthe right environment for automatedcranes to operate. Crane intelligenceOrganized byIn association withSponsored by:Exhibit boothspace isstill availableVisit our website for more detailswww.transportsymposium.comThe components of the Lennix Charlie system include an infrared camera,reflector, controller and softwareFor a number of years, all slewingcranes supplied by Ardelt (amember of Kranunion) in Germanyhave been fitted as standardwith an anti-sway controlsystem, to compensate load sway.The original system was developedin cooperation with CeP-LuS (Cesar Skew), and helped thedriver to discharge the load intohoppers with more precision.CePLuS provided anti-swaysystems for various types ofcrane, including systems withclosed loop feedback control forcranes requiring high accuracy,such as STS container gantries.Since 2005, CePLuS has beenpart of Siemens.Ardelt products are nowequipped with an improved system,Lennix Tango, developedby Lehnert RegelungstechnikGmbH, which is owned byMario Lehnert, the man originallybehind CePLuS. Oneapplication is on a pedestalmounted,double-level luffingTukan 750 crane at the LouisHagel berth on the Reiherstiegcanal in Hamburg, where it optimisesfine positioning duringmanual operation over the shipand ensures a smooth transitionto semi-automated operationtravelling to and discharging inthe hopper.Lennix Tango can also be usedin tandem mode, for handlingone load together with two slewingcranes. Terex Port Solutionshas used it as part of its TandemLift Assistant system for its Gottwaldmobile harbour cranes.For STS container cranes,Lehnert Regelungstechnik isoffering the positioning andcollision avoidance system LennixCharlie. As well as anti-sway,this includes other functions,such as soft landing, which reducesspreader downtime by automaticallystopping above thecontainer. The bay is scannedby lasers, and “smart activation”guarantees collision avoidanceeven if the anti-sway is deactivated,while the Next-Step-Assistance function knows thefuture position of the load. “Thesystem is the standard solutionfor Liebherr Container Cranes,”said Moritz Lehnert, directormarketing and sales.24June 2015

CARGO HANDLINGmodified or even written off.As previously reported, one of the aspectsof Stage V is that it covers engines inthe 560 kW class for the first time, andEuropean authorities have accepted thatthe requirements should be based on theUS EPA Tier 4 Final rules for enginesin this category. This way, technical harmonisationis retained. In the Europeanports sector, Stage V 560 kW wouldaffect very large mobile harbour cranes.For example, Liebherr LHM 420, 550,600 and 800 classes are fitted with 725kW engines. Liebherr has, however, alreadyreported that all its LHM classesare available with Stage IV/Tier 4 Finalengines (400 kW for the LHM 120 and280 classes). In practice this means that itcan continue to supply the bigger cranesto the US market.Some engine manufacturers say theyalready have Stage V engines ready. Atthis year’s Intermat, Deutz displayed“Stage V ready” engines in the 2.9 to7.8 litre range. “This will give customerslong-term planning certainty,” saidDeutz. In the run-up to Stage IV/Tier4 Final, Deutz had already redesignedsubstantial parts of its engine range fromscratch and had implemented the latestexhaust after-treatment technology. Inconjunction with a sealed diesel particulatefilter (DPF), which is almost certainlyde rigueur to meet the particle numberlimits specified in Stage V, the Deutz engines“already conform to Stage V”.No aftersIn April, GE announced that it hadcompleted the first production tests of itslatest Evolution series locos fitted withthe latest GE GEVO engines, claimedto be the first Tier 4 Final compliantrailway engines in the USA. GE hasinvested US$600M in developing thenew engines, which meet Tier 4 Finalwithout the need for any (Adblue/DEF)after-treatment system. It estimates thatthis will save the North American railroadindustry around US$1.5B in ureainfrastructure.GE says it has achieved Tier 4 Finalcompliance without the need for aftertreatmentby evaluating and selectivelyapplying technologies that have beenused in the latest US-EPA on-road vehiclestandards. The power assembly hasbeen updated and it uses EGR to reduceNOx, a two-stage turbocharger toachieve a higher compression ratio, and ahigh pressure Common Rail fuel deliverysystem to reduce PM.As of April, 27 test engines had beentested around 350,000 rail miles in allconditions, including 20,000 trailington (147 car) trains, altitudes of 9,000ft,speeds of up to 70 mph and consecutivetunnels (Cascades range). NOx and PMreductions from Tier 3 are estimated inthe 70-75% range. Multiple orders havebeen received from all major and severalregional common carrier North Americanrailroads, as well as dedicated shipperrail companies.Finally – and at the other end of thescale to massive loco engines – the biggestFLTs in Doosan Industrial Vehicle’s7-Series range, the D100S-7 to D160S-7models rated at 10t-600mm and 16t-600mm, respectively, are now also availablewith Doosan’s award-winning G2engine with Stage IV/Tier 4 Final compliance.The 2t, 5.5t, 6.0 to 9t modelswere so covered in 2014 and at the be-All-electricgroundtransportGaussin customers can opt for one, two orthree racks of batteries, according to howthey evaluate capex and opexAssociate SponsorFind out moreSponsorsThree-track conference programmeGlobal port technology exhibition13 – 15 October 2015El Panama Hotel, PanamaIncluding conferencesPanama Canal site visit & technical tourFull networking packagePLUS! Keynote speakers announcedannouncedJorge L QuijanoCEO, PanamaCanal AuthorityGrantley StephensonPresident, CaribbeanShipping AssociationHost Sponsorwww.tocevents-americas.comGlobal Port PartnerGlobal MediaSponsorThe increasing popularity of battery-electricAGVs suggests thatemissions-free ground transport ofcontainers is a clear way forward forterminal operators. Up to now, TerexGottwald has used lead-acid batterypacks for its all-electric AGVs andLift-AGVs. Lead-acid batteries are100% proven and robust technology,and around 95% recyclable whentheir life eventually expires. However,lighter and more compact Lithiumionpacks are on the way, and oneTerex Gottwald AGV customer willbe announcing proving trials veryquickly.Batterie Mobile, the joint ventureof Gaussin Manugistique andthe French CEA, will eventuallyoffer four or five power pack typesin Gaussin’s modular ATT and IAVrange, and one that is already available(along with diesel hydraulic andhybrid) is “Full Elec” with Li-ionbatteries.Recognising that Li-ion batteriesare still expensive, but gradually fallingin price, Gaussin offers Full Elecwith one, two or three 48-moduleracks of batteries providing respectively80 kW, 160 kW and 240 kWcapacity, and four, eight and 12 hoursof autonomy. The drawer constructionof the housing, which has thesame dimensions whichever powerpack type is fitted, permits this.It takes three mins to change anypower pack and two hours to rechargeFull Elec, with 50 kW, 100kW or 150 kW of charging power,according to the number of racks.Clearly, the one-to-three rack choiceis a trade-off between capex andopex.Charging is not a straightforwardmatter as care has to be taken to ensurethat all modules receive the samelevel of charge; otherwise the batteriesget killed more quickly. This isachieved using a balancing system, orBMS (battery management system).Gaussin claims that battery life is inthe range of five to seven years (up toeight years at 60% load factor) evenin very hot or very cold ambienttemperatures that normally shortenbattery life to a point where Li-iontechnology is economically unviable.In a new development, Gaussin hascome up with a simple “cocoon” forthe power pack, which it says is effectivefor ambients above 50 degC andbelow -20 degC.The cocoon is made up of 60mmthick foam insulation inside thehousing, supported by an automaticallyregulated climate control systemdelivering hot or cold air as required.Prototype testing has been carriedout and Gaussin says that Full Eleccan be supplied on ATTs or IAVs inplaces such as Dubai or Oslo.26June 2015

CARGO HANDLINGOttawa’s next generationThe Kalmar plant in Ottawa,Kansas, part of Cargotec,has long been theglobal leader in terminal tractorproduction. This month Ottawaturned out its 60,000th unit, aT2 for Averitt Express, soldthrough one of Kalmar’s topdealers, Alley-Cassetty in NashvilleTennessee. The Ottawa total,the company claims, is morethan twice the number of machinesbuilt by its three largestcompetitors in North America.Production of the T2 began inJanuary, but the design processstarted in 2011. Kalmar built awhite-walled “idea room” at theOttawa plant with a full-scalecab mock-up and a 50% chassismodel. Over 60 drivers, maintenancetechnicians, safety directorsand management staff wereconsulted, along with sales, serviceand parts professionals fromKalmar’s own dealer network.Three “guiding design criteria”were identified: trusteddurability and reliability; serviceability;and driver ergonomics.Dave Wood, VP sales andmarketing for Kalmar OttawaTerminal Tractors, said thesehighlight that customers’ toppriority is being able to assumea machine is reliable. They wantto keep it as simple as possible,while at the same time having acomfortable, safe and productiveenvironment for drivers.Rugged and reliableThe T2 looks more evolutionarythan revolutionary, but it isa completely new machine inseveral important respects. Thechassis made from pre-punchedpowder-coated open C-channelsections that are bolted together,as opposed to the welded boxconstruction used for the previousdesign, now called T1.The cab is completely new,and is all steel except the roofcap, front access panel and enginehood, which are fibreglass.It is ROPS (Roll Over ProtectionStructure) certified asstandard, with FOPS (FallingObject Protection Structure)available as an option.The inside of the cab is roomier,to cope with the ever increasingsize of drivers, with thedoor 4 inches wider and a 20%increase in the glass area. A coathook and cup holder have alsobeen added. All the glass is stillflat, which is a market requirementin North America.For the front suspension, Kalmarhas taken a 3-leaf, parabolictaper leaf design fromClass 8 trucks, which it claimsThe chassis for the T2 is a new boltedC-channel constructionKalmar’s plant in Kansas has beenredesigned to produce its newflagship terminal tractor, the T2provides a smoother ride whilebeing maintenance-free. Thefront shackle pins that were aservice point have been replacedwith a spring eye that wraps arubber bushing and pinch tube,and does not require any regulargreasing.The lifting cylinders now includespherical bushings at thetop and bottom to improve durability,and a lower lift cylindersupport is now standard (previouslyoptional). The 4-inch cylindersare said to lift trailers 18%faster, while being shorter thanthe previous components. If required,5-inch versions are stillavailable.Other changes include relocatingthe emissions equipmentfor DOT models insidethe frame rail, creating space foran additional fuel tank, and improvingserviceability by placingall fluid check points wherethey can be accessed from theground. The main electricalcentre is now accessible via anaccess plate that can be removedfrom the driver’s seat.Kalmar has taken a bold stepand extended the warranty to atwo-year, 6,000-hour basic warrantyon the T2, double the industrystandard. Wood said thisis a sign of the company’s faithin the product design and components,and its own improvedmanufacturing process.MAU of oneKalmar wanted to use the T2 toincrease its daily output by 40%or more per shift. It has a goalto produce 15 machines a day,which would enable it to takeorders with a lead time of 90-100 days.To achieve this, it has redesignedthe plant layout. Cargotechad earlier expandedKansas into a Multi AssemblyUnit (MAU) producing counterweightand Princeton truckmounted FLTs, but these wererecently moved to its RTCH facilityin Cibolo, Texas.The Kansas plant now exclusivelyassembles terminal tractors,from components broughtin from subcontractors and supplierswithin the US. Previously,Kalmar had been shipping weldedchassis from China to Kansas,but the new chassis sectionsare made in the US and boltedtogether at the Kalmar plant. Infact, the same chassis will nowbe shipped to the Shanghai facility.The bolted design makeslogistics much simpler, as upto 40 chassis can be shipped ina 40ft container, as opposed tojust three welded units.Inside the factory, the productionline is no longer continuallyrolling, but moves betweenstations in set intervals. Eachmachine goes down the linewith a bill of materials, payingclose attention to ensure it isbuilt as ordered. Though there isa “base” Ottawa model, “we’venever sold one”, added Wood.Wood is happy with how thetransition from T1 to T2 is progressing.Mid-way through theyear, Kansas is producing roughlya 50:50 mix. The productionrecord is 22 machines in oneday, but coming into the quietersummer months, the plant is operatingat around 12.5 machinesa day. By early June, Kalmar hadbuilt 605 T2s, with a backlog of762 units. By January, all productionwill be T2, apart froma handful of right-hand drivemachines.Meeting the marketOver 80% of all machines sold inthe US are for the distributionmarket, with just 15% going toports and intermodal terminals.This market is changing significantly.Since 2009, the baseprice of an off-road machinehas increased from US$55,000to almost US$100,000, mainlybecause of emissions technology.As a consequence, more usersare looking to rent rather thanown.Since 2011, the dealer-ownedrental fleet held by Kalmar Ottawadealers has almost doubled toaround 1,300 machines. “Priceescalation, increasingly complextechnology, and the needto maximise the efficient useof capital are all influences thatare moving the market towardspaying for usage, or in anotherword, rental,” said Bob McTernan,manager of marketing anddealer operations.The number of DOT (roadThe T2 is Kalmar’s new flagship terminal tractorlegal) machines is increasingsteadily. The price premiumcompared to off-road units isnow small, and DOT-compliantmachines are much more flexiblein a lease fleet.Wood believes lease fleetowners are ready to embracetelematics, something that hastraditionally been seen as tooexpensive for a tractor. That attitude,he said, is changing as leasefleet owners in particular lookto better manage costs. “We arein the very early stages of definingthe needs and performancecriteria for such systems but weknow the trend is here to stay,and we are committed to beingready,” he said.Sticking with dieselOne notable feature of the T2launch is the lack of a hybridoption. Kalmar is sticking withthe North American standardlight & quickfor heavy-weightsCummins/Allison combination,with the ISB6.7 200 hp for theDOT version and the QSB6.7164HP version for off-road machines(Tier 4 Final).Wood said that over the lastdecade Kalmar has “investedmany millions” into R&D onalternatives to diesel, but “littleof our efforts have producedfruitful results”. It continues tooffer CNG and LNG options,but they are not popular. LNGrefuelling infrastructure is a perennialissue, but many users arealso not convinced they will seea return on the 25% premiumfor an LNG machine. Kalmarsees more potential in propane,and Wood said it will have moreto say on this technology in 12months’ time.Kalmar has not given up onhybrids, “but we have significantlyscaled back our developmentefforts on hybrids, in favourof looking closer at straightelectric drive systems”. Of particularinterest are Lithium-ionbatteries, which Wood said aredelivering “impressive and veryencouraging results” in tractorapplications. P4 rol in e-chain®an aluminium troughAll media in a single e-chain ® . Drive and data cables, hoses, accessories.Corrosion-free and resistant to salt water in the igus ® aluminium trough.Saves 30% weight compared to steel troughs. Travel of up to 800 m andspeed of up to 600 m/min with 57% less drive power. Moving energymade easy.Please visit us: Offshore Energy 2015 – Hall 11Booth 100AEUROPORT – Hall 2 Booth 2404-cranes.comRequest a free sample Tel. +49 2203 9649-800 Fax -222 plastics for longer life ®June 2015 27

REEFER INDUSTRYReefer box building on the up againReefer box production,after a small recoveryin 2014, is on the riseagain. A relatively high output,of up to 260,000 TEU (135,000units), is forecast for 2015 and,even if this falls short of the recordachieved in 2011 (when 300,000TEU were delivered), it is likelyto top all other years to date.Around 135,000 TEU (equivalentto almost 70,000 units) wereconstructed during the first sixmonths of 2015, according to industrysources, comprising 65,00040ft high cube and 4,000 units as20ft and other specials. This interimproduction compared with a deliveryof 100,000 x 40ft high cube,21,000 x 20ft and 1,500 specialsthroughout the whole of 2014.Second half production is expectedto be at least as a high asduring H1, as the current year’speak reefer season has yet tocome. It usually occurs duringthe final quarter when perishableshipments from the southernhemisphere are at their highest.Global reefer productionexperienced some recovery during2014 and is expected to makefurther gains this year, when up to260,000 TEU may be producedAround 40% of all reefers producedin 2014 were delivered inthe final three to four months ofthe year.Bullish buildersThe three established builders ofreefer box equipment are, consequently,bullish about their immediateprospects – and moreupbeat than at any time in recentyears. For many years, this trio hasbeen headed by China InternationalMarine Containers Group(CIMC), and includes SingamasHoldings and Maersk ContainerIndustry (MCI).For several years in succession,they have previously had to contendwith an unpredictable market.After the downturn of 2009,which ended many years of strongand growing reefer production,there came a brief recoverysurge in 2010-11. Output thendipped again during 2012-13, asit fell back by 50% on the peak of2011, but picked up once again in2014, when production virtuallymatched its 2012 level. It has continuedto improve during 2015.The dip of 2013 came largelyin response to a cutback on reeferpurchasing by major shippingcompanies, headed by the marketleader Maersk Line, althoughmany have since restarted theirinvestments again.Nevertheless, the lines’ collectiveappetite for reefer buying isstill relatively weak, even six yearson from the financial crisis of2009, and funding remains elusivefor some. Instead, the majority ofall reefers built since 2009 havegone to the leased fleet, with thisexpanding at an unprecedenteddouble-digit annual rate duringrecent years. It compares with relativelylittle growth for the reeferfleet owned by shipping lines, andapproximately 6-7% per annumfor the global count. Leasing firmshave already gone from owningaround 30% of the world’s reeferfleet, to over 40%, in the space ofa few years. In 2013, lessors accountedfor over 70% of all reeferorders, and they again took morethan 50% in 2014. The outlook isfor another 50% share in 2015.Although this strong rentaldemand has kept the reefer boxmanufacturing industry busy, thelatter has still had some difficultycontending with the recent fluctuationin overall output. During2009-10, the four existing reeferfactories (which were alreadyAfter recently completing its final commissioning, MCI San Antonio (MCIS)in Chile received its debut order for 500 x 40ft high cube reefers, complete withintegrated Star Cool machinerylong-established) had generallybeen underutilised, although thesituation was to change abruptlyin 2011. During that year, whenproduction was at its height, theirmanufacturing lines were havingto operate virtually flat-outin order to meet demand, whichprompted a round of new plantconstruction.New factoriesWithin a couple of years, twonew factories were commissionedin the central (Shanghai) regionof China, with Singamas openingone in Qidong and CIMCat Taicang. These were the firstnew reefer building facilities to beopened in 15 years. In addition,CIMC decided to renew its existingreefer building complex inQingdao, while MCI constructeda new factory in San Antonio,Chile. All of the plants are locatedon spacious greenfield sites andmake use of environmentally advancedproduction techniques,including cyclopentane and othernon-HCFC foaming processes intheir creation of panel insulation.However, just as these newprojects were nearing fruition,reefer production was decliningagain and thereby changingthe industry’s former capacityshortfall to potential oversupply.This renewed imbalance has onlybeen redressed (albeit partially)in the past year or so, as outputhas picked up again, and so providedall three manufacturerswith much-needed extra businessto more fully occupy their newproduction lines. Some long overdueplant consolidation has alsobeen carried out in the past year,as production has been stopped atone existing reefer factory (datingback 20 years), and cut backat another. By early 2015, all fourof the new plants, (planned originallyin 2011) had been broughtinto operation, following the finalcompletion and opening of MCI’sSan Antonio site.Capacity boostBy the beginning of this year, thenew plants were already providingcapacity close to 300,000 TEU/year, although the potential existsfor this total to be increased eventuallyto 500,000 TEU/year. Anadditional 100,000-plus TEU ofannual capability is still offered byexisting sites (the most importantof which is MCI’s long-runningplant at Qingdao). Its inclusiongives a current total of well above400,000 TEU/year, based on anaverage working of between oneto two shifts, which is viewed asmore than ample to meet demandgoing forward and particularlyduring the busiest months of thepeak season. It compares with atwin-shift maximum of less than300,000 TEU/year existing priorto 2013 – and during the productionsurge of 2011.Around 200,000 TEU ofpresent annual capacity is operatedby CIMC’s two new factories,each of which commencedmanufacturing in 2013. Themajority is centred at QingdaoCIMC Reefer Container ManufactureCo – located within thecompany’s recently developedCold-Chain High TechnologyIndustrial Park – with a slightlysmaller balance provided byTaicang CIMC RefrigerationEquipment Logistics Co.ConsolidationAs these plants have come morefully on stream, CIMC has beenable to consolidate its reefer manufacturingfacilities by reducingproduction at the company’s oldestreefer building site, ShanghaiCIMC Reefer Container ManufactureCo, which was originallyopened in 1995.The Shanghai CIMC plantwas finally closed to reefer boxmanufacturing at the end of lastyear, although its production hadpreviously been reduced to lessthan half its former level. Outputfrom Shanghai CIMC fell below25,000 TEU during 2014, comparedwith 65,000 TEU comingfrom Qingdao CIMC and45,000 TEU from Taicang CIMC.During the first half of 2015, theQingdao plant is reported to havebuilt 45,000 TEU, with TaicangCIMC supplying 35,000 TEU.CIMC’s total output is thus setto be higher this year than last, asboth of its two new productionsites gear up towards optimumworking. The eventual plan is foreach of the two plants to be expanded,with their combined capacitypossibly being increased byup to 50% on its present size, asand when demand dictates.Singamas offers a further 95,000TEU/year of capacity, roughlytwo thirds of which is operated byQidong Pacific Logistics EquipmentCo Ltd. This commencedproduction in early 2013 (severalmonths ahead of the two newCIMC factories) and has sinceattained full single-shift working.The balance of Singamas’ capacityis provided by its olderShanghai Reeferco Container Coplant. This too had opened origi-Table 1: Averaged quarterly steel and 40ft container price (US$)2013-Q22013-Q32013-Q42014-Q12014-Q22014-Q32014-Q42015-Q1Hot-rolled stainlesssteel* price per tonne2,5002,3502,3502,4002,7252,8502,6252,40040ft high cube reefercontainer** price per unit9,7009,5009,7009,7009,8009,8009,7509,600* High-grade SUS 304 (muffler grades are approximately half this price).**Excluding machinery. Source: MEPS and manufacturers’ own data28June 2015

REEFER INDUSTRYnally in 1995 and is still being workedrelatively hard, even if production is downon earlier years. Its output amounted toroughly 15,000 TEU in 2014, which washalf of that achieved prior to 2013, andwas down further to 6,000 TEU for theopening half of 2015.The newer Qidong factory was to buildmore than 30,000 TEU during 2014, andhad supplied 17,000 TEU during the firsthalf of 2015. It too offers the potentialfor further expansion in coming years.MCI stepping upMCI’s established Qingdao factory haslong provided around 85,000 TEU ofannual reefer building capacity based ona double-shift operation, and also maintainedan approximate single shift during2014. This has since been stepped up furtherinto 2015 as demand has improved.MCI-Qingdao delivered a total of 45,000TEU throughout 2014, followed byover 30,000 TEU during the openinghalf of 2015. The latter total comprisedover 15,000 units, as virtually all of thefactory’s output so far this year has been40ft high cube. MCI earlier reported thatorders for more than 16,000 reefer unitshad been placed through January to May,with at least 11,000 due to be fitted withMCI’s own make of Star Cool machinery.The current dominance of 40ft productioncontrasts with 2014, when MCI-Qingdao also built a substantial numberof 20ft reefers. The total amounted to7,000 TEU, thereby making up 15% ofall MCI reefer production in 2014. MCI-Qingdao accounted for roughly a third ofall 20ft production carried out last year,which ran at a record high level. A total of21,000 x 20ft reefers were delivered duringthat year, compared with the longerterm average of nearer 10,000 TEU/year.However, a big share went to MCI affiliate,Maersk Line, in order to service specificcontracts in New Zealand. The enhanced20ft production in 2014 was thuslargely a one-off and is very unlikely tobe repeated this year.In fact, 20ft output has so far been relativelylow, as only 3,500 units were deliveredduring the first six months of 2015.Almost half of this total has come fromCIMC’s Taicang factory, with the remainderdivided between Qingdao CIMCand the Singamas Qidong plant.The balance of output has, to date,been almost exclusively 40ft high cube,with CIMC factories supplying 76,000TEU in the first half of this year, as comparedwith 22,000 TEU from Singamas(and the aforementioned 32,000 TEUfrom MCI-Qingdao).By comparison, all factories were activelyproducing 20ft reefers during 2014,with CIMC delivering 9,000 units in totaland Singamas 5,000 (on top the 7,000from MCI-Qingdao).Nevertheless, these totals were stillsmall compared with the much greater40ft high cube production, of which122,000 TEU was to come from CIMC’sthree operational factories, 41,000 TEUfrom Singamas and 37,000 TEU fromMCI-Qingdao. The balance of productionin 2014 was made up of 1,500 TEUof 40ft (8ft 6in) reefers, built by QingdaoCIMC and MCI-Qingdao – and destinedfor Dole Shipping – plus severalhundred TEU of more specialised 45ftand 53ft size. These were also suppliedby Qingdao CIMC, which continues tooperate a line dedicated to reefer specials.Maersk Line investsThe large 20ft purchase made by Maerskin 2014 marked the company’s return toreefer investment after more than a year’sabsence, and it has also since resumed thevolume buying of 40ft high cube equipmentas well. This had hit an earlier highduring 2011-12, but could yet be evengreater in 2015 based on orders placedby the line so far. Its intake throughout2013-14, as a whole, amounted to just2,500 x 40ft high cube (including somespecials), but has since been followed bymore than 16,000 units delivered fromJanuary to June 2015. All of which spellsvery good news for MCI-Qingdao, asit tends to benefit from the majority ofreefer orders placed by Maersk.MCI had to rely more heavily on thirdpartybuyers throughout 2013-14, whenMaersk Lines’ own investment was lower,but – in sharp contrast – it is apparentlyalmost having to turn away some reeferbusiness from Maersk this year in orderto fulfil obligations to other establishedcustomers. MCI has long been treadinga careful path between the need to meetthe – often gargantuan – demands generatedin-house by Maersk and that of othersupportive clientele, whose patronagehas been sought and built up over lengthyperiods of time. Its long-term strategyof actively pursuing third-party business(particularly from leasing firms) was topay off during 2013-14, when the reeferproduction carried out for Maersk fellprecipitously, but MCI-Qingdao did notsuffer too great a drop in its overall output.The current year has not only witnesseda return of Maersk Line, as anactive reefer buyer, but also markedthe final commissioning of MCI’s newreefer plant in Chile – to be known asFirst tests of CA principleBased on a membrane filter,the first tests of Star Cool CA take place.CO 2O 2CO 2Controlled AtmosphereAir Exchange (O 2 ) Removal of C0 2A vacuum pump Respirationremoves CO 2fromCargo absorbs O 2and emits CO the container using2a membrane filter.SensorcalibrationNew software ensuresautomatic calibrationof the O 2/CO 2sensorduring every PTI test.By nowmore than30,000Star Cool CAsold to variousreefer operators,including severalTOP 10 container linesMCI San Antonio (MCIS). This project,as mentioned, has been under constructionsince 2012, and much of thepast year was taken up with a finalisingof the manufacturing process andthorough training of plant technicians.“The successful completion of tests andcalibration of the new production facilityhas ensured the fulfilment of our two toppriorities: safety and quality,” MCI saidrecently. “With this process behind us, wehave been able to officially declare MCISready for serial manufacture.” The factory’sdebut order, for 500 x 40ft high cubereefers, complete with integrated StarCool machinery, was placed shortly afterthis announcement and is now in progress.Flying southMCI’s decision to select South Americaas a location for its second reefer factory2007Star Cool CA is usedfor asparagus2012“CA ready”is introduced“CA ready” means preinstallationof fittings,hoses and cables readyfor later installation ofthe CA key components.This enables the reefer tobe converted into aCA reefer within hours.GasinjecjectiotionoptionThe first Star Cool CAshipments containbananasStar Cool CA is usedfor avocados2011201320142008CO 2N 2O O 22015Star Cool CA testwith mangosTel.: +45 73 64 34 00 · sales@maerskbox.com · www.mcicontainers.comTable 2: Reefer container production by type (TEU)Type20ft40ftOther**TotalTotal (units)Approved by the marketStar Cool CA - a reliable CA systemFirstCA trial testThe first trial shipment isof bananas, going fromEcuador to Denmark,loaded in a Star CoolCA reefer. Techniciansmonitored loading andunloading and measuredthe composition of N, Oand CO 2inside the reeferduring transportation.2009O 2201110,000293,0002,000305,000158,000*First half projection. **Specials of mainly 45ft and 53ft length. Source: Manufacturers’own dataN 2CO 2O20129,500217,5003,000230,000119,0002010The filter membraneand the CA system ingeneral are continuouslyimproved duringthe early years.201311,500190,0003,500205,000108,000*First half projection. Source: Manufacturers’ and owners’ dataFirst order for3,000 Star Cool CAMaersk Line makes the first orderfor 3,000 Star Cool CA reefers.100% AIR TIGHTNESSis a prerequisite fora reliable CA systemRisk of air leakagearound boltedreefer units201421,000200,0004,000225,000122,5002015*3,500130,0001,500135,00069,000Table 3: Reefer container production - fleet addition and replacement (TEU)Global productionFleet additionFleet replacementFleet size at end-yearAnnual fleet growth (%)2011305,000230,00075,0002,050,00012.02012230,000135,00095,0002,185,0006.62013205,000115,00090,0002,300,0005.32014225,000135,00090,0002,435,0005.92015*135,00085,00050,0002,520,0007.0CA curtainA new patented rubbercurtain track and a curtainmade of polyethyleneare introduced to ensure100% air tightness.100% air tightnessaround the reefermachine on Star CoolIntegrated reefersJune 2015 29

REEFER INDUSTRY NEWSTable 4: Reefer container production by manufacturer (TEU)ManufacturerCIMC GroupMCI-Qingdao***Singamas HoldingsTotal30the WorldCargo Newssubscription packageWorldCargo News brings you worldwide news, features and analysis, updating you onthe latest in containerisation, cargo handling, port and terminal operations andintermodal developments.To ensure you get your personal monthly copy plus ezine and online access send us thisform and we will start your subscription with the very next issue. Our all-in rate foranywhere in the world is just £295 €455 or US$590. Or why not take advantage of ourdiscounted extended subscriptions? Please see www.worldcargonews.com for details.✓2012124,00072,00034,000230,0002013130,00045,00030,000205,000*First half projection. **Annual average calculated for current year (assuming continuous40ft high cube production). *** MCI San Antonio, Chile commenced production in early2015 (no real impact on figures yet). Source: Manufacturers’ own datamarked a change, as all reefer box productionhas been centred on China since2007. Moreover, there has been no significant‘independent’ reefer productionoutside of China in more than a decade.However, MCI made its choice inresponse to the high demand for reefersgenerated annually by growers of fruitsand other perishable produce in SouthAmerica – and to the large equipment2014134,00045,00046,000225,0002015*80,00032,00023,000135,000YES, please enter my subscription to WorldCargo News.Capacity**200,000105,00095,000400,000imbalances that tend to develop thereduring peak seasons.According to MCI, various studies/industry sources have long indicated areal out-of-pocket saving for every reefercontainer repositioned to the west coastof South America, and that more than250,000 empties are currently beingshipped to the area each year, including100,000-plus destined for Chile. It addedNumber of years.............I enclose my cheque or bank draft for £..............US$...............€............... Must be drawn on a UK bank.Please invoice my company - subscription and online will commence on receipt of payment.Please debit my American Express Visa Mastercard (please indicate card and currency used)that “relocation costs are influenced byactual flows, inter-company costs, freightrates and port terminal charges” andthus can be substantial. MCIS is alreadyworking on a factory-to-farm concept,whereby newbuild equipment can beloaded with export produce directly afterbeing collected from the plant by shippinglines. This practice would cut leadtimesfor shippers, in addition to generatingconsiderable savings compared to thebringing in of new (or even used) reefersfrom Asia.NOR shippingMCI further explained that the latterusually requires one to three monthsfor the empty voyage to be completed,with many newly built reefers shippedas NOR (non-operating reefer) fromChina at a significant discount. Added Expiry dateSignature................................................................ Date.....................................................WCN Publishing: The Northbank Coach House, 24 5 Bridge Street, Leatherhead, Surrey KT22 8BL, 8BX, UK.email: subs@wcnpublishing.com fax: +44 1372 370111Please make payments to: WCN Publishing WCN PUBLISHING VAT No: 644 2190 53 www.worldcargonews.comto this disincentive is the likelihood ofcostly handling and potential repairs. Thecompany comments that even if some ofthe new factory production is relocatedout of Chile, this is still likely to generateone fully paid return journey during theinitial months and so provide its owner/operator with a better return than the alternative.MCI therefore concludes that“a variety of attractive propositions arisefrom our ability to deliver reefers fromboth Chile and China… which will enablecustomers to improve the flexibilityof in-fleet reefer planning by providingthem with the capability to meet fluctuatingseasonal demand at short notice.”The total cost of the MCIS project isput at US$200M, with most steel andother raw materials – as well as expertise– being sourced initially from China(where the reefer industry is far more de-Name...........................................................................................................Title..............................................................................................................Company .....................................................................................................Address ......................................................................................................................................................................................................................................................................................Company business .......................................................................................Email (required) .....................................................................................................................................................veloped). The MCIS factory is to produceboth boxes and (Star Cool) machinery,and its capacity is to be built up graduallyover the next year or so. Its eventualoutput could amount to 40,000 containersannually, based on the maximum shiftoperation, which would largely complementthat already existing in Qingdao.Good timingClearly MCI views its timing to begood, as the new factory has opened justwhen reefer demand seems to be pickingup very strongly. Nevertheless, itsstart-up further adds to an already muchexpandedmanufacturing sector, which(as mentioned) now has something of acapacity surplus. The former shortfall of2011 is fast becoming but a memory, asreefer box capacity is forecast to remainhigher than likely production for someyears to come. Nevertheless, some solacehas been provided by a recent fall in thecost of reefer manufacturing, as well asmaterials, which has tended to keep finishedreefer prices at a competitive level.Reefer builders have naturally benefitedfrom the latest decline in energy costs, aswell as from an increasingly cheap stainlesssteel price.This, after falling to a low point earlierin 2013, rallied briefly in the middleof last year and has since gone back intodecline. By the second quarter of 2015,its average was at another low point,amounting to less than US$2,400 pertonne for high-grade (SUS304) material.The corresponding price of Corten Steel,used in the construction of reefer-postsections, was also by that time at a minimumof well below US$500 per tonne.The average price paid per 40ft reefer box(ex-machinery) had, consequently, alsofallen at a near five-year low, of less thanUS$9,500. The outlook is for this priceto stay low, with between US$16,500-17,000 presently paid for a completed40ft reefer (including machinery), dependingon specification.Buyer incentiveThe prospect of continued cheap pricinghas provided yet another incentivefor reefer buyers and, as hinted, attractedsome shipping companies back into thefray during 2015 – alongside the continuedstrong lessor activity. Large purchaseshave already been made in 2015by UASC, Evergreen, OOCL and CMACGM, in addition to the sizeable MaerskLine commitment. However, the lines’top reefer purchaser in 2014, HamburgSüd, is taking more of a back seat thisyear, and – contrary to the wider trend– committing to a proportionally largerpurchase of 20ft reefers than occurred lastyear. It has, conversely, bought very few40ft high cube so far this year.The picture for the leasing industry in2015 is little different to that of the previousyear, as Triton again appears to be themost prominent purchaser of reefers. Itsfirst-half delivery, of almost 20,000 TEU,has come second only to that of Maersk,while the company was the most activebuyer of reefer equipment during 2014.Other leading participants are Textainer,SeaCube and CAI International.Post-takeoverSeaco is another important name and iscurrently in the process of merging withCronos following the formal takeover ofthe latter company by Seaco parent, BohaiLeasing (of China), in January 2015.The two leasing firms have been placedunder a newly created holding company,Global Sea Containers Ltd (Bermuda),which is wholly controlled by Bohai.Once merged, they will control the biggestreefer fleet available for lease, as wellas the largest rental box fleet overall interms of its investment value.The Seaco/Cronos deal has, nevertheless,removed one major – and longstanding– purchaser of reefer equipment forthe sector, in the shape of Cronos, whileother major names, including TAL Internationaland Beacon Intermodal Leasing,have opted for less exposure in 2015.Both companies’ reefer investment is predictedto be down for this year, comparedwith the recent past. However, the deliveriesbeing made to Textainer, SeaCubeand Seaco in 2015 are each expected tobe at least as great (if not higher) thanduring 2014. June 2015

REEFER INDUSTRYReefer monitoring - cost or revenue?Some reefer service providers appearto be focusing on leverage datato lower costs, rather than askingtheir customers to pay an additional feefor remote reefer monitoring services.WorldCargo News has previously reportedthat shippers are not willing topay extra for remote monitoring tomake sure the service they are paying foris actually delivered. Canadian NationalRail (CN) has just announced a C$20Minvestment in the expansion of its coldsupply chain reefer capacity that focuseson service, rather than revenue.The investment includes 200 newdomestic 53ft reefer containers, and 32power packs to move 40ft internationalmarine reefers to and from CN-servedports on its intermodal trains. These arelarge units that can power up to 17 x40ft reefer containers at a time.Truck rivalsJJ Ruest, executive vice-president andchief marketing officer, said the investmentis aimed at winning business fromtrucking. “CN was the first railway tointroduce highway-to-rail conversionof reefer service in trans-border markets.Our high-quality cold supply chainservice has been embraced by the marketplace.We are now adding capacity togrow and help Canada’s food processingindustry gain and maintain access to newdomestic and international markets.”CN’s reefer customers include meatproducts producer Maple Leaf Foodsand frozen food and vegetable giantMcCain Foods. Both companies requirehigh cold chain standards and CN is delivering“robust remote monitoring ofinterior container temperatures”. TheC$20M investment includes a reefermonitoring system from Orbcomm thatwill provide data to a dedicated CNreefer “desk team”.Rather than try and market reefermonitoring services, CN is focusingon its “superior exception managementservices” in the reefer area. The railroadconfirmed that the Orbcomm system isconnected to CN through the cellular,and not a satellite, network. A spokesmansaid the system is “for enhancinginternal monitoring capability” as partof its “protective program” and is workingwell.Solid marketCN’s move confirms what reefer monitorsuppliers have been reporting – thehot market for reefer monitoring technologyright now is driven by carriers,terminals, railroads and trucking companiesthat understand the value of combinedreefer and telemetry data to lowercosts and improve service.Reefer providers are starting to getsmarter about using data to address costs.A terminal operator that handles significantreefer business for Maersk Line saidthe carrier is now looking a lot closer athow and when its containers use power,with a view to running the reefers asmuch as possible during off-peak periods,to lower power costs. Maersk wantsto share in the savings, of course, and thispresents a challenge to the terminal operator.It has long been known that someshippers use the container terminal todraw down the temperature of “hotloaded” frozen or chilled cargo, often usingmore power than is covered by anaverage daily charge. This scenario, saidthe terminal operator, has to also beconsidered by carriers looking to implementusage-based power charging.It was Maersk Line that took the significantstep of installing a GSM-basedreefer monitoring system on its ownreefer fleet, but it does not appear to bepromoting “value-added” monitoringservices for a fee to the same extent asit was last year.In a statement to WorldCargo News,Maersk said it “continues to monitor allreefer cargo as previously. Agreementson enhanced monitoring have been inplace with some customers for sometime”. There have been reports thatMaersk is pulling back from installingremote wireless modems on every singleone of its reefer containers, but theCharging for reefer monitoring servicesis proving more difficult than generatingvalue from reefer data itselfcarrier said modems are installed on “thereefers in scope and are installed on allnewbuild containers”.The market appears to be at the pointwhere carriers, shippers, terminals andother parties in the supply chain are gettingto grips with how to use the datathese systems generate, and there aremany possibilities. In the trucking industry,some refrigerated truck operatorshave found that combining a door sensorwith the monitoring system, so thereefer machine can be shut off wheneverthe door is open, generates enough fuelsavings to pay the monthly fee for monitoringservices, while at the same timemeeting the customers’ requirement fordata.“There is a clear market trend towardsinvestigating possibilities around ‘intelligentreefers’, and several lines are nowembarking on the journey. It is still earlydays, and customer feedback so far hasbeen positive,” added Maersk Line. Scame’s Italian optionItaly-based Scame Parre SpA offers arange of products for reefer containers,including various designs of plugs,sockets and distribution panels, for shipboardand portside applications. It hasnow come up with a remote monitoringsystem, called AMR (AutomatedMeter Reading), which is being trialledin Trieste, Livorno and Montevideo.One of the terminals has already decidedto purchase a large number of AMRunits on the basis of the trial results, saidAndrea Guerreschi, product director forthe OEM sector.The AMR has already been introducedin a number of non-marine applications,including charging stationsfor electric cars, and has won a numberof industry awards for Scame Parra.The WiFi-enabled AMR allows thereefer terminal manager to analyse thenetwork for current and power consumption,and read all local data in realtime. It automatically checks temperatureat pre-set intervals, as well as monitoringkey components, including fuseand earth checks. It is also possible tomonitor operating peaks, to avoid penaltiesdue to low power factors. Statusreports and alarm messages can be sentby email or SMS. The software is scalableto each customer’s requirements.The company is in discussions witha potential customer in South America.June 2015 31

NEWSTerminal Automatique Containers Henri GaussinGAUSSIN’s objective in building the “Henri Gaussin Automatic Container Terminal” is to perform“Proof of Concept” demonstrations for clients and prospects in order to facilitate purchasingdecisions. (HERICOURT – France)The terminal is a virtual showcase of the technologies developed by GAUSSIN and its partners,the CEA (Atomic Energy and Alternative Energy Commission) and PAS (Port Automation System),a company specialized in software and equipment for port automation.This location enables and facilitates discussions on ATT and AIV machines as well as our fullrange of Powerpacks.32June 2015