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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