WorldCargo news

JUNE 2005

Doosan books 80 RTG order Gottwald bags

PSA Singapore Terminals (PSA) has awarded a contract for 80 RTGs to Doosan Heavy Industries & Construction of Korea for the next five berths at the Pasir Panjang Terminal extension. This is on top of the order for 42 machines PSA placed with Doosan last year, the first 12 of which were delivered in April from Doosans fabrication facility in Indonesia. The machines will be the same specification as the previous units: 16 wheels, stacking 1 over 5 containers high and 6+1 wide, AC inverter drives, cable festoon for the trolley power and hydraulic anti-sway. The contract price is S$160 mill, which works out at around US$1.19 mill per RTG 19 per cent more than the US$1 mill each PSA paid for the first 42 machines last year. 2006. The 15 new berths are expected to boost PSAs annual handling capacity in Singapore from 20 mill TEU to 31 mill TEU. Grace Fu, CEO, South East Asia and Japan, PSA International, added that volumes at PSA Singapore Terminals registered double-digit increase in the first four months of 2005 to reach a record 7.12 mill TEU. PSA has fasttracked its expansion plans to meet the present and future needs of customers. Our focus this year is to bring on new capacity as quickly as possible, and to provide excellent service to our customers while handling increased container volumes. To date, PSA has committed some S$400 mill in port equipment for our new berths to better serve our customers she said. business.The strategic alliance will make HIT and COSCO-HIT even stronger players in this highly competitive market of container terminal operations, added John Meredith, group managing director of Hutchison Port Holdings Ltd (HPH). The move means that PSA International has further strengthened its foothold at Hong Kongs Kwai Chung containerport. Earlier this year, the company bought NWS Holdings 31.4 per cent interest in Asia Container Terminals (ACT), which operates the twoberth CT8 West terminal at Kwai Chung, as well as the entire share capital of an NWS subsidiary that holds an indirect 22.9 per cent interest in ACT via a 33.34 per cent interest in CSX World Terminals Hong Kong, which operates the single-berth CT3. The latter is now majority owned by Dubai Ports International (DPI).

Antwerp ASCs

The first 12 of the 122 RTG-16s PSA Singapore has now ordered from Doosan for the Pasir Panjang Terminal extension were delivered in April The equipment is part of PSAs plan to add 15 new berths at Pasir Panjang Terminal by 2011. In a statement PSA said,Three of the new berths will be ready in 2005, with another five in operation by

PSA acquires HIT stake

In a surprise move, Hutchison Whampoa Ltd (HWL) has announced that it has agreed to sell 20 per cent and 10 per cent effective equity in Hongkong International Ter minals (HIT) and COSCO-HIT respectively to PortCapital Ltd, an investment holding company backed by rival terminal operator PSA International, for a cash consideration of US$925 mill. Commenting on the transaction, HWL Group managing director Canning Fok said, The terms of this transaction are fair and reasonable and are in the interests of the company and its shareholders as a whole. We are happy that this transaction will create a strong alliance in the Groups port operations, and will put us in a position to have strategic co-operation resulting in further value creation for all parties. We are confident about Hong Kongs container terminal

Gottwald Port Technology has signed a framework agreement with P&O (UK) for the supply of automated stacking cranes (ASCs) for the new Antwerp Gateway Terminal at Deurganckdok, Antwerp. The agreement requires Gottwald to supply, test and commission the first four ASCs for two stack modules by June 2006. Further ASCs will then be delivered under a tight schedule as more stack modules come on line. The agreement is also designed to cover possible future projects at other P&O terminals around the world. The scope of supplies and services includes not only the hardware but also the complete control system software, including a module manager which ensures that two ASCs mounted on one set of rails do not collide. After extensive wind channel testing and simulations, the ASCs have been designed to withstand wind forces of up to 10 Beaufort

Gottwald has to deliver the ASCs to Antwerp Gateway on a tight schedule as stack modules come on line without needing to cease operation so that the terminal operator can count on maximum availability and safety. The ASCs will stack 1 over 5 and span 9-wide. Many of the design concepts and automation systems involved were previously tested for the original HNN automated terminal planned for MSC at Deurganckdok. In fact, some key HNN personnel involved in that project now work for P&O Ports. It is worth speculating, therefore, that Antwerp Gateway will opt for shuttle carriers of some kind for the dray between apron and ASCs - perhaps 1 over 0s or 1 over chassis, rather than 1 over 1s, for lower cost and higher ground speeds.

IN THIS ISSUE
NEWS
Fantuzzi on the up? New Ram spreader OOIL back to Navis Suezmax for Bristol? APMT in Brazil move 2 3 5 7 10

Russian war over

Following a prolonged and extremely bitter power struggle for control of Russias largest commercial seaport (see WorldCargo News August 2004, p5), Investsberbank has acquired, through offshore daughters, a 19.78 per cent stake in the Commercial Seaport of Novorossiysk (NMTP) from its main rival, Delo Group, for around US$80 mill. NMTP is the largest stevedore at Novorossiysk, responsible for around 75 per cent of its overall throughput and last year handled over 70 mill tonnes, with a turnover of US$150 mill. Investsberbank (formerly Russian General Bank) and its partner company Uralsib (formerly Nikoil) already hold large blocks of shares in the Novorossiysk grain export terminal, Novoroslesexport, the only timber port in Russias south, Importpischeprom responsible for 14 per cent of the Black Sea oil handling, Novorossiysk Shiprepair Yard, the largest repairing facility in southern Russia, Flot NMTP the , countrys largest tug boat company, etc. Delo Group exercised a virtual freight forwarding monopoly within NMTP, reportedly controlling up to 70 per cent of the flow of metal and sugar via the port. The uneasy peace which previously existed between Delo and rival stockholders was shattered when the Russian Property Ministry put up for sale its stake of 20 per cent in the port. By the end of 2004, Uralsib and Investsberbank held 26.76 per cent and 18.92 per cent of NMTP stock respectively. At the beginning of May, they started buying out minor stockholders in order to increase their aggregate block from 45.68 per cent to some 7080 per cent after the sale of the Property Ministrys stake. However, the ports management backed by Delo and its partner Alfa Eco refused to leave the business and tried to preserve the balance of shareholders. Port director Vladimir Kovbasyuk managed to consolidate Delos initial stake of just 6.98 per cent with that of the ports employees under an umbrella company and raised it to a total of 24 per cent. Last month, however, Kovbasyuk was forced to step down after tax evasion charges were made against him and his subsequent attempt to wrest back control failed. He has been replaced by his former deputy director, Igor Vilinov.

PORT DEVELOPMENT
Southern Africa update 17 Egypts ports growing 19 Turkeys private offerings 19

SHIPPING
Mega-carriers push limits 21 Coastal frustrations 23

CARGO HANDLING
Tier 3/Stage IIIa coming New drives save money Siemens ECO-RTG Snag without hydraulics Consens unveiled Spreaders ride tandem? 24 25 26 27 28 29

REEFER INDUSTRY
Big year for reefers TKs Thai seminar 30 32

CONTAINER INDUSTRY
New floor alternatives 34 COA mulls floor options 34

WorldCargo news

CARGO HANDLING NEWS

by Hutchison Port Holdings new operation in Poland, Gdynia Container Terminal.These will be fitted with front support pads to provide enhanced second and third row lifting capacity, along with a data recorder, load indication and a special spreader application to handle 45ft containers. LWN adds that the LRS 645 is now fully-manufactured in Nenzing as production of the curved boom is no longer subcontracted but is being built in-house. The company is understood to be working on a lighter duty version of the machine to offer alongside the LRS 645 spec. LWN has begun producing some of its two biggest harbour mobile crane models, 400 and 500, at its new plant in Rostock, which has waterside access for shipment of fully-erect cranes. It is not yet clear how much production will be transferred from Nenzing, but the Austrian plant is working at full capacity and cannot be expanded as it is located between the mountains and a main highway.

First piggyback for Liebherr

Liebherr-Werk Nenzing (LWN) reports the sale of the first LRS 645 reach stacker with a combiattachment to Belgian UIRR operator TR for use in Genk. W, The third LRS 645 to be delivered to a Belgian customer since the novel reach stacker was launched last year, the unit has a movable cabin and an electronic feature asking for a password before start-up.The cabin is air-conditioned. A similar machine has also been ordered by BolognaGru in Italy, for leasing. LWN has also secured its first African customer for the LRS 645, Empresa Portuaria do Lobito.This includes several options, including cameras on the spreader and for rear view, outreach indication with pre-selection of containers plus a vertical and horizontal load path, a load indication system including self-levelling of the spreader, central greasing for the chassis,

E-One for Mardas...

Mardas Marmara Deniz Isletmeciligi AS, the container terminal operator in the Mardas Port area of the Ambarli Port Complex in Istanbul,Turkey, has placed an order with Kalmar for six EOne all-electric RTGs, together with Smartrail and Remote Machine Interface (RMI). The 16-wheel RTGs will be taller than usual, able to stack 1 over 6 high, and also have an outsize span able to accommodate nine rows plus the truck lane.They will be delivered and erected at Mardas by the end of May 2006. Mardas already operates seven Kalmar ro-ro tractors, three Contchamp reach stackers and an ECH reach stacker. Last year the terminal saw its throughput rise 20 per cent and, to optimise space, it is switching to RTGs from a reach stacker operation. Kalmar has reorganised recently and responsibility for RTGs has been transferred from Finland to Kalmar Industries BV in Holland, already the groups (ex-Nelcon) division for ship-to-shore cranes and RMIs. Keijo Parviainen is now vice president, marketing and sales, for a new Kalmar division, Intelligence and Automation (I&A). The president of the division is Jrma Tirkkonen, who previously ran Kalmars global terminal tractor business based in Ottawa, Kansas. As Kalmar builds up prouction of tractors for the China market in Shanghai, it has also started manufacturing medium (8-15 tonne) FLTs at Ottawa - the US being the biggest single market for FLTs of this size. Also coming under the aegis of A&I is Kalmars terminal development department, which is still run by Jari Pirhonen. RMI is an A&I fleet management tool introduced by Kalmar last year for remote monitoring, maintenance tasking and reporting of handling equipment from a control room at a customers terminal via GSM,WLAN etc, or via remote trubleshooting and support from Kalmar experts over the Internet. Existing applications include RTGs, straddle carriers and reach stackers. With operations being observed from one place, the time spent on machine checks is greatly reduced, providing a more efficient service.The system includes GPS satellite location. A&I covers not only RMI and terminal simulation products and services (terminal development), but also robotised straddle carriers (cf Patrick terminal at Fisherman Islands, Brisbane), SmartRail, SmartPath and the automation systems of automated stacking cranes. It us understood that Turkeys Arkas group has exercised an option for 10 more RTGs from Abu Dhabi-based Gulf Port Cranes (see WorldCargo News March 2005 p3), increasing its order to 25 machines. All the RTGs are being supplied will all-electric Marathon yard crane spreaders from Bromma.

The LRS 645 has now penetrated the piggyback combi-lift market boom and spreader and a modem for tele-diagnosis. Other new customers include OR Schulze Holz- und Baustoffrecycling GmbH & Co in Berlin, the third customer in Germany. The main extras are a data recorder including flashcard, load indication, central greasing for chassis, jib and spreader as well as a camera on the spreader. Two units have been ordered

Buoyant Fantuzzi New Timars overheight

In the first five months of this year net sales of Fantuzzi Group rose by 15 per cent compared to the same period last year and it looks as though it will surpass the 482 mill level of 2003. Since last years restructuring, losses have been cut and net debt has fallen below 200 mill - still too high, concedes president Luciano Fantuzzi, but he is confident that things are moving the right way. There is still no news on new shareholders with fresh capital (see WorldCargo News April 2005, p1) but, failing an agreement on this score, funds will be raised by selling the Reggio Emilia site. Certainly the group would appear to be in a stronger position than a few months ago. Noell straddle carrier sales have exceeded expectations and will reach an all-time record this year (at least 165 pieces). New orders include another 16 ESWs to Evergreen in Tacoma, following the delivery of 34 units in December. The latest machines will be fitted with a new power trian and Creon, Noells new control system for mobile equipment. APM Terminals Zeebrugge NV has just confirmed an order for 23 ESWs, while APM Terminals Rotterdam BV has placed an order for 12 more 4-high ESWs, to go with the 12 it received in February this year. Fantuzzi groups CEO Francesco Petilli reports that 95 RTGs are slated for delivery this year (mostly by Noell China), with 16 more on order for delivery next January. On an annualised basis, RTG output has risen by almost seven per cent. In addition, Noell China is delivering five ship-to-shore container cranes this year - all to P&O Ports in India and Pakistan - and has an order in hand for six more for 2006-7 deliver y to MOT, Hong Kong. Reggiane delivered four shipto-shore cranes to AP Trieste earlier this year and has booked two for AP Napoli and two for another Italian customer (believed to be VTE Genova) for delivery next year. Reggiane also has an order from Kramer Container Depot for two barge/feeder ship-toshore cranes for delivery next year. In addition, says Petilli, Reggiane has already booked firm orders this year for 18 harbour mobile cranes, and orders for another six are at hand.

...ECHs double up...

Sweden-based Timars has recently introduced a new overheight attachment design, available in 20ft and 40ft fixed and 20-40-45ft stepless telescoping versions. SWL is 45 tonnes. The DNV-certified Universal OHA is fully automatic and operates completely mechanically, with a built-in safety interlock system to prevent locking when the frame has not been properly landed or if any of the lower twistlocks are prevented from turning. Locking is automatic when the frame is correctly landed and the operator can check lock/ unlock status with a clearly visDemand for the new overheight is running at high levels, says Timars ible (reflective), revolving red and green indicator bar. The frame is attached manually to the parent spreader using a simple rod system. Customers to date for the Universal OHA include C Steinweg in Hamburg, Ports of Stockholm AB, Intramar SA in Marseille and Seayard in Marseilles Port Saint-Louis district. Other recent business for Timars includes six C-Lift spreaders for operation in Kuwait and a Gravity Centrelizer unit for Petrolexport in Saint Petersburg. Kalmar has delivered the first of three DCE 100-45 E6 ECH mast trucks specifically designed for lifting two containers 1 on 1 to intermodal specialist BTS Kombiwaggon Service GmbH in Kornwestheim, near Stuttgart. This latest delivery rounds off a successful year for Kalmars ECH division, which has seen sales of the DCE 100, launched just one year ago,surpass all expectations by exceeding 50 units, a number of which were supplied with the 1 on 1 sidelift frame. According to Dan Pettersson, Kalmars product manager, heavy mast trucks, the attraction of the new machine is its dedicated application design.The DCE100 is persuading more and more customers that a machine purposebuilt for double handling empty containers is ideal for their logistical needs and can help them increase overall port equipment productivity and lower lifetime costs, he said. Features of the DCE 100 include a reinforced mast, a more powerful drive axle and streamlined electrical power and hydraulics supplies. It has just one cable for electric supply and two hoses for the hydraulics on the attachment.This enhances visibility when, for example, the driver needs to pick or place containers high in the stack.The SWL of 10 tonnes means that two empty reefer containers can be safely handled. Kalmar has won an order from Libra Terminais for 13 x 45 tonne SWL ContChamp DRF reach stackers to be delivered to its container terminals in Santos and Rio de Janeiro. Five machines will be delivered to Libras Terminal 37 and Terminal 35 in Santos this August, and the other eight units will be delivered in two batches of four, in October and November, to replace other brand rented machines at both Santos and Libras Terminal 1 in Rio de Janeiro. We will capitalise on this recent success to strengthen further the presence of our Generation F heavy counterweight trucks in Latin Amer ica, said Per Rosengren, product manager, Kalmar reach stackers. Kalmar has also recently completed deliveries of the hi-spec ContChamp DRF to operators in Mexico and Venezuela.

...autostrad contract
Patrick Stevedores has confirmed a warranty/service contract with Kalmar for its fully robotised straddle carrier fleet at the Fisherman Islands terminal in Brisbane. The contract includes scheduled warranty PM and servicing, service parts and daily and weekly checks, including regular cleaning and inspection of optical sensors. It covers the 14 automated Kalmar ESC units delivered last year and the four recently ordered automated machines to be delivered later this year. Patrick will also equip the straddle carriers with Kalmars Remote 2 Machine Interface (RMI) system. According to RaimoYlivakeri, president of Kalmar Services (formerly Kalmar Solutions), the global equipment service market in ports and terminals is worth around 3 bill and Kalmars share is some 27 per cent. In relative terms, Kalmar Services share of overall Kalmar turnover has remained static in the past five years at 24-25 per cent, but in absolute terms has risen from 120m/year to 220m/year in the same period, due to both organic growth and strategic acquisitions of service companies. June 2005

CARGO HANDLING NEWS

WorldCargo news
spreader maker in recent times to introduce an all-electric quay crane sprader. The first, Bubenzer, is understood to have five units in the field today. Ram Spreaders is a major arm of NSL Engineering Pte Ltd, part of NatSteel group. The NSL rubric was adopted by the groups operating dvisions following the sale of its steel producing interests last year. Ram reports a new order from the Port of Charleston for three more type 1320 ECH lift truck 20-40ft sidelift spreaders, follwing successful trials with one 1320, which the port is also taking over, to replace existing sidepicks on a number of its ECH mast trucks. SWL of the 1320 is 8 tonne and the port has specified Ram LoadLite LE indicator lamps and onboard solid state control.

New Ram spreader

Ram Spreaders is launching an all-electric twin 20 spreader series, Ram 3900, starting with the Ram 3910, a separating centre design with an SWL of 2 x 32.5 tonne or, in single mode, 50 tonne. The prototype Ram 3910 will be built in Singapore and will start testing on a crane (probably also in Singapore) early next year. The fact that Ram has announced the development ahead of proving or even production indicates its confidence in the design. According to executive director Robert Mills, it is structurally the same as the successful 2910 CenterSpread model introduced in 2001, but with electric motors and gearbox and a new chain drive instead of the hydraulics. Everything else is the same, including the centre spread adjustment of 1600mm, and the crane driver will not notice any difference, says Mills. He adds that the 3910 was the logical place to start the allelectric quay crane spreader range as the 2910 is already such a big contributor to Rams overall sales. Ram successfully introduced its allelectric yard crane spreaders, the Ram 3000 series, about two years ago.All-electric spreaders, says the company, are lighter, easier to maintain, have longer service intervals, lower downtimes and are more environment-friendly than traditional electro-hydraulic spreaders, as energy use is lower (no need to run the electric motors continuously) and the risk of hydraulic oil spillages is eliminated. More than 20 per cent of Rams RTG spreader sales are now all-electric types, with fixed gather guides. In practice, ensuring that the flippers on the 3900 have sufficient torque and backdrive has not proved a problem and the extra cost is more than offset by savings in other areas.The mass and shape of the flippers and the way they are connected to the gable ends are unchanged. The 3910 weighs almost 500kg less than the comparable 2910, by eliminating the hydraulic power unit, valves, etc. Ram is believed to be the second

Wavetrend/OxLoc team up
UK-based OxLoc Ltd has entered into a commercial arrangement with Wavetrend of the US to integrate its standalone GPS tracking technology with Wavetrend active tags and receivers. As previously reported in WorldCargo News March 2003, p34) OxLoc provides its Asset Alert Solution for monitoring the location of intermodal assets which have no access to a power source. It is claimed that customers can use these devices, powered by only two D cell batteries, for operating periods of up to 3 years, reporting information twice per day. According to Wavetrend, the hardware for most conventional telematics solutions reporting position and condition require access to an always on power source, which is usually not appropriate for intermodal assets such as trailers, containers, chassis or rail cars, as well as mobile handling plant. OxLoc solved the problem through a power management solution, allowing the unit to run from primary D cell batteries.Through the new partnership with Wavetrend, a derivative of this system will soon be available to gather consignment information from tagged goods inside containers and trailers using Wavetrends proven active tag technology.

First new KCI RMGs for BIFT

KCI Konecranes reports its first commercial order for two RMGs of a new design. Roadways Container Logistics Ltd (RCL), part of P&O Nedlloyd, has ordered the two machines for its new BIFT (Birmingham Intermodal Freight Terminal) at Birch Coppice in the English Midlands.The 40 tonne SWL RMGs will span 28m and be able to lift 1 over 3 x 9ft 6in high. The order is understood to be worth around 4 mill. The schedule for the new BIFT is challenging for us, said Phil Clinton, RCLs terminal engineering manager. We want our new terminal to operate with the highest technology cranes available in the market. Rail access to RCLs new BIFT is via a privately-owned branch line from Kingsbury Junction and the company has been negotiating long-term access rights to the main line. It is hoped that BIFT will be ready by April next year.The RMGs will span four 320m long tracks and two road lanes. RCL will also be in the market for three straddle carriers for BIFT as it has good experience of straddle carriers in other terminals (Leeds, Coatbridge, Barking and Manchester). KCI Konecranes has had great success with its range of RTGs and today there is also a growing demand for RMGs, which created the need for a new construction, commented Ilpo Hakala, director, harbour and shipyard cranes. The new design lends itself easily to full automation, adds Konecranes, not least through the superior load control achieved by its active load control system for sway prevention and fine positioning, which also improves cycle times, safety and machinery lifetime, resulting in the lowest lifetime costs. A rotating trolley is fitted to ensure efficient transfer of containers between railcars and road vehicles. All features are electromechanical, with no hydraulics involved. To maximise uptime in operations, the RMGs are equipped with a remote diagnostic system enabling operators and service technicians to analyse productivity and PM requirements. June 2005 3

WorldCargo news

CARGO HANDLING

FL drives Ferrari Houcon New Gottwald E-drive AGV...

Italy-based CVS Ferrari has secured a 6 mill contract from Br itish inter modal operator Freightliner Ltd (FL) to replace its entire fleet of mobile container handling plant at various inland railheads and the Maritime railhead at Southampton Docks. The new fleet comprises nine model F378.5 reach stackers and 10 x F18EC dedicated ECH mast trucks, along with eight FYT220 4x2 yard tractors for in-railhead ground transfer work.This is the latest phase of our investment programme to ensure we provide reliable and efficient services, said Peter Maybury, managing director of FL Intermodal. FL will dispose of the existing plant in accordance with agreements with the existing suppliers. Up to now FL has sourced handling equipment for different railheads from a mix of suppliers, including CVS (eg Cardiff, Birmingham). The new contract rationalises the supplier base to just one and, says FL, is underwritten by a demanding availability level and replacement parts agreement. Under the contract the maintenance work will be undertaken by CVSs UK distributor Shad Fork Truck Ltd. This is the largest single contract signed by CVS in Europe and projects it as a leading supplier of container handling plant in the UK. Deliveries are due to commence shortly. According to FL, eight suppliers responded to its RFP. Of the bidders, only Kalmar and CVS could offer all the equipment supplied from their own production. CVS has supplied its first reach stacker in Belgium, a model F258, to Antwerp Tank Repair, part of Van Loon group.The machine was supplied through CVSs local partner, Jan De Wacker NV Industrial Equipment. The F258 is a dedicated ECH machine with an SWL of 12 tonne and stacking 6-high in the first row. The 20-40 telescopic spreader is provided with -95 and +195 degree rotation.

for SCT
To boost productivity and reduce costs, Salerno Container Terminal (SCT) is introducing short multitrailer train sets (MTS) from Houcon Cargo Systems for its yard/quay drayage operation. Initially, SCT will deploy two MTS-2s, with the first trailer connected to the tractor fifth wheel in the normal way and the second connected to the first by drawbar. In the second phase, another five MTS-2 will be acquired or, more ambitiously, SCT will switch to five MTS-3s. Tests have indicated that MTS3s can work in the confined spaces of SCT.The lead trailer is still connected by kingpin to the tractor fifth wheel and SCTs existing fleet of CVS tractors is apparently powerful enough to deal with the extra trailing loads, particularly as SCT is now handling a much higher number of 40fts than previously (now 50 per cent of moves). SCT is not switching suppliers as it uses Houcon single trailers today. The new MTS trailers will have bigger gather guides to assist spotting by the Gottwald mobile crane operators. SCT operates five Gottwalds and managing director Franz Jol contends that dr ivers using the one equipped with a Smits spreader usually find it easier to spot 20fts on the trailers. SCT has now taken full control of the former Cargo Services (Bucci) terminal, to cater for more traffic. Because the port is now ISPS-accredited, it has been able to introduce a fully-fledged container truck gate and can thus perform housekeeping more effectively during non-open hours.

Gottwald Port Technology has launched a new E-AGV series with diesel-electric drive as an alternative to its proven diesel-hydraulic AGVs. The first 11 units of the new design will be supplied to HHLAs Container Terminal Altenwerder (CTA) in Hamburg. Gottwald AGVs have now been on the market for more than 15 years and more than 300 units are in operation or on order.The new diesel-electric E-AGVs are claimed to offer reduced fuel consumption, reduced maintenance requirements, greater availability, enhanced performance and environmental benefits, thanks to significantly reduced sound output levels and diesel consumption. Gottwald is already renowned for its diesel-electric drive in its harbour mobile cranes, says Dr Mathias Dobner, the companys chief technical officer. Now that we have incorporated this knowhow into the AGVs, operators can choose between two types of AGV according to their individual requirements.

CTAs AGV operations appear to be highly successful CTA currently operates a fleet of 53 AGVs with diesel-hydraulic drive, complete with navigation and management system. Its 11 new E-AGVs (type CT 60-E) will be supplied in two stages.The first unit, a pilot for pre-qualification testing, will be delivered next January with the the balance due in April. The CT 60-E can carry one 20ft, 40ft or 45ft or 2 x 20fts. SWL is 40 tonne for single containers and 60 tonne for 2 x 20ft. Refuelling is automatic - carried out by means of a robot refuelling vehicle. Both axles are steered independently of each other for manoeuvrability. Thanks to the elimination of some hydraulics, the E-AGVs are fitted with a smaller hydraulic oil tank in favour of a larger dieseltank. This, plus the fact that the diesel-electric drive entails lower diesel consumption, leads to fewer fuelling intervals, which further boosts productivity. RGCT are due to enter service this month. Last year DPI ordered two HMK 300Es for its operation in Constantza. while DPA ordered two for Port Rashid. In total, Gottwald has reported orders for 37 cranes in the first half of this year, including eight 4-rope grab cranes. The list includes one large rail portal-mounted variant, HSK 330 EG, for Chesapeake Bulk Handling in Sparrows Point, Maryland. Gottwald has also disclosed the destination of two HSK 330 EGs ordered towards the end of last year - Alvita Stevedoring in Sevastopol.

WorldCargo news
VOLUME 12 NUMBER 6 ISSN 1355-0551

...HMCs for India

Gottwald has received orders for four harbour mobile cranes from Indian operators: two HMK 330 EG four-rope grab cranes will go to Gujarat Adani Port Ltd (GAPL) in Mundra; and two HMK 300 Es to DPI Terminals (DPI) for the Rajiv Gandhi Container Terminal (RGCT) in Kochi to be operated by India Gateway Terminal. GAPLs cranes will be used to handle coal and scrap and will go into operation in September on the existing berths and subsequently also on two new bulk cargo berths currently under construction. Mundra was the first Indian port able to berth Capesize colliers and GAPL already operates two 4-rope grab cranes from Gottwald, each capable of handling up to 800 tph, while elsewhere in the port two HMK 280 E are in service with P&O Ports Mundra International Container Terminal (MICT). The two HMK 300Es for

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TTS sets up ports division

Norways TTS Marine ASA is setting up a new division,TTS Ports and Material Handling, separating out this function from the ships equipment work of TTS Ships Equipment AB. Some key staff from the latter company will transfer to the new division, which will commence operations later this year. Areas of competence cover dry cargo handling, marine cranes and ports and materials handling. One of the areas of expertise is ro-ro cassette handling, using the Liftec designs and know-how which were acquired when TTS bought Liftec Products Oy AB in Finland (see WorldCargo News January 2005, p1). The new division will spearhead TTSs involvement in projects such as automated cassette translifters, as demonstated in the EUs Integration project, automatic trailer trestles, IPSI lashings, fast automatic loading of containers into ro-ro ships using cassette trains, etc. Staff from TTS Handling Systems in Drbak, Norway, where the prototype FastShip (un)loading installation was built, and Liftec in Tampere will also be transferred to the new division, while a new sales company will be set up in Gothenburg under the name of TTS Port Equipment AB. This will be headed by Lennar t Svensson, while the new division as a whole will be headed up by Gran Johansson. June 2005

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WorldCargo News/ISSN 1355-0551 is published monthly for US$155 per year by WCN Publishing. Periodicals postage paid at Rahway, NJ. Postmaster: Send address changes to WCN Publishing c/o Mercury Airfreight International Ltd, 365 Blair Road, Avenel, NJ 07001 Entire contents WCN Publishing 2005

CARGO HANDLING

WorldCargo news
tegration to MITs Tideworks Mainsail yard planning suite. The C-PIS for MIT also a uses a built-in 2.4 GHz Spread Spectr um radio data network for messaging between the Tideworks software and C-PIS. The C-PIS system combines DGPS positioning data with input from the dead-reckoning sensors, aimed at providing accurate and reliable position fixes even in areas where DGPS signals are blocked by quayside cranes, ships, building, container stacks and so on. The C-PIS application in smaller container handling units relies heavily on Savcors proprietary RAT system (reacquisition accelerator technology). The company explains that this is an enhanced DGPS navigation algorithm which significantly speeds up satellite re-locking after the DGPS antenna emerges from a GPS shadow area. When twistlocks are engaged or released - in a correct or incorrect slot - CPIS automatically relays the position of the container to the Tideworks TOS database, practically eliminating lost containers. No manual data input is required. The expanding installations at MIT demonstrate the strength of our fleet control concept, that all machinery that handles containers must be covered by a position detection system, says Savcor One groups CEO Markus Korhonen. Only in this way can the operator reap the full benefits of a DGPS system. Korhonen adds that the company is setting up its first subsidiary overseas, Savcor One Inc, based in in Dallas,Texas, to serve customers in North and Central America.

New orders for Savcor One

Finland-based Savcor One recently secured major orders for its RTG AutoSteering system from APM Terminals North America, in connection with its new fleet of Konecranes RTGs at Elizabeth, NJ, and Pier 400, Los Angeles. Initially, 11 RTGs are being fitted. Commissioning of the units in Elizabeth has been completed, to be followed by the Pier 400 units this August. Savcor Ones system utilises two independent, redundant DGPS receivers and antennas on opposite sides of the gantry We strongly believe in the dual receiver/ antenna approach, says Kari Rintanen, the companysVP Technology.It gives us more precise heading data than is possible in single receiver systems and compensates for the loss of satellite lock in GPS shadow areas close to the quayside cranes. It enables us to perform intelligent internal diagnostics, comparing the signal quality from two independent sources, and it also gives the system basic redundancy in case of component failures...it is well worth the extra cost. A dual frequency receiver with a nominal accuracy of 20 mm is used for auto-steering applications. Savcor One also claims to be the only vendor able to offer a DGPS container positioning system (Modulaire C-PIS) able to cover all types of container handling units, including top picks, ECHs and yard tractors.This is especially important in RTG sites, where auxiliary machinery is used to stack containers or where the operator wants to control the yard tractor movements and productivity in more detail. In fact, the Modulaire C-PIS installed at SSA Marines Manzanillo International Terminal (MIT) in Coln, Panama, is to be fitted in another 15 Taylor ECH and laden-handling mast trucks. It is already installed in 18 RTGs and 14 ECHs and laden-handlers at MIT. Modulaire C-PIS features a multi-sensor position detection module with DGPS as well as vehicle-mounted sensors and an active GUI with seamless in-

OOIL back to Navis

Orient Overseas International Limited (OOIL) subsidiary Terminal Systems Inc (TSI) is abandoning development of its own in-house terminal operating system (TOS), JSTEPs, and has signed a deal with Navis to implement the latters off-theshelf solutions across five North American terminals. The announcement comes as a surprise as TSI has spent about five years developing JSTEPS in Canada and at one stage said OOIL planned to implement it at other terminals around the world, including Kaohsiung. TSI has used Navis products since 1991 but also developed its own legacy systems for some aspects of terminal operations, such as the yard management system at its Vanterm terminal and both yard and vessel planning systems at Deltaport. Some time ago TSI began developing JSTEPS in a Java environment and in 2001 replaced Naviss SPARCS with JSTEPS at Vanterm. TSIs experience was mentioned in a UN report on EDI-based trade and transport operations where the cost of developing the vessel planning aspect of JSTEPS was given as US$750,000, compared to US$600,000-US$1.3 mill plus an ongoing 20 per cent annual maintenance fee for a SPARCS licence. It now seems, however, that TSIs experience with in-house development has not been favourable and it has not been able to develop systems as required. In a statement Colin Donaldson, terminal manager at Deltaport, said as well as offering a complete system to help manage increasing volumes, Navis solutions will provide some relief and immediate visibility to critical data so that we can make immediate and smarter decisions. Explaining the decision in more detail, Peter Miedema, TSIs vice president IT, told WorldCargo News that it needed to replace legacy systems sooner than it thought. Given the growth in the volumes at TSI and the status of the current legacy systems,TSI needs to replace these systems earlier than anticipated.The business needs of the other terminals in the OOIL group also require new IT systems sooner rather than later. Although the development of JSTEPS was well on its way, it became obvious that it would take too much time to complete this new system on time for all terminals.. As the Implementation of a proven third party terminal operating system at all terminals could be realised earlier than finishing the development and implementation of JSTEPS, the OOIL terminal group decided to stop the JSTEPS development project, Miedema said. Navis will now implement its software across all OOILs five North American terminals - Deltaport andVanterm inVancouver, Global in New Jersey, Long Beach Container Terminals and NewYork Container Terminal on Staten Island. Deltaport will be the first to implement the Navis software which includes SPARCS, Express and WebAccess. As most of Deltaports volume is handled via ondock rail it will also implement SPARCS rail planning module. June 2005 5

WorldCargo news

CARGO HANDLING NEWS

Second Smits Alimak on a high Bromma highlights Marathon savings for Rauma
Alimak has delivered SE rack and pinion drive lifts with frequency control for 18 container cranes being built by ZPMC for Pusan Newport Company. The lifting height of the type SE 450 FC lifts (ie 450 kg payload) is around 46m. Travel speed is 0.8 m/sec. Underscoring Alimaks strong presence in the container crane lift field, the company has also won orders for 30 SE-L lifts from Kalmar for the new cranes it is delivering in Antwerp (PSAHNN and P&O Ports) and Rotterdam (one crane for Interforest). The orders comprise 24 SE 300 L lifts with vertical travels of 33m and 39m and six SE 450 Ls with a travel height of 36m. Available with SWLs of 300, 400 and 450kg, the SE-L range features a choice of control systems - single-automatic or semiautomatic. Sweden-based Alimak is part of the Alimak Hek group (previously known as Intervect group), which is jointly owned by 3i plc (UK) and Ratos AB (Sweden). Bromma claims that terminal operators can expect maintenance cost savings in the region of US$2600 per spreader per year by using its Marathon allelectric yard crane spreaders instead of hydraulic spreaders.This is the result, it says, of the significantly longer service intervals and shorter service time which have resulted from eliminating all the hydraulics. According to the company, on a monthly basis the labour cost of a service comes to US$120/spreader with a Marathon, compared to US$240 with a hydraulic spreader (ie twice the man hours). In addition the hydraulic spreader will typically require US$100 more in materials than the electric spreader, so in total it costs US$220 more per service on a monthly equivalent basis. The figures are based on feedback from the growing list of Marathon customers. Orders/ deliveries to date include 70 for Dubai Ports Authority, 59 twin 20 units for PNC Busan, 44 for Gulf Port Cranes (of which 25 are for RTGs for Arkas in Turkey), 20 for Noell China (re Shekou), 22 for the Port of Felixstowe, 18 for HyundaiSamho HI, 17 for P&O Ports Canada for its Noell China RTGs for Vancouver, and 11 separating centre twin 20s for SCCT Port Said. Bromma also reports increasing uptake of its SCS2 quay

MHI tenders online

The Port of Rauma has specified another Smits spreader with 5deg transversal adjustment as well as horizontal adjustment, to be matched to a new HMK 300 E harbour mobile crane it has ordered from Gottwald. Raumas container traffic is growing and this year the port expects to handle 130,000 TEU. Many of these are handled by Raumas Gottwald harbour mobile crane on/off the weatherdecks of sideport ro-ros while ro-ro (un)loading is carried out simultaneously and, as previously reported (see WorldCargo News February 2004, p32), the transversal adjustment feature enables the spreader to be adjusted to the same angle as the deck when the ship lists. The spreader fromVDL Smits The transversal adjustment feature is a big help when the ships list Spreader Systems in the Netherlands is designated CH 6600 TA FT (ie fixed twin 20 spreader with horizontal and traversal adjustment).According to Smits, when Rauma received the first 2 x 25 tonne spreader of this type last year, it was the first twin lift spreader ever supplied in Finland and enabled the port to increase the number of container moves per hour by 30 per cent. A case study on the spreader as a tool for boosting harbour mobile crane productivity was presented by Raumas port director Hannu Asumalahti at the Terminal Operations Conference (TOC) in Antwerp earlier this month. Mitsubishi Heavy Industr ies (MHI)s Hiroshima Machinery Works has launched an online procurement system in order to extend our inquiry activities to new potential suppliers of shipto-shore crane and RTG components. At the time of writing components being sought for quay cranes included drives, sheaves, brakes, cables, festoons, cable reels, cabs and machinery houses. Listings can be found at http:// www.mhi.co.jp/hmw/stst/crane/ index_pr.html

Pirelli cables sold

Pirelli & Co SpA has announced the sale of its energy and telecoms cables and systems business to Goldman Sachs Capital Partners. The net sale price is 1.2 bill and the transaction is still subject to various regulatory approvals. Pirelli Cables claims a 10 per cent share of the global cable market but is a much larger figure in the port crane industry where it is reckoned to have over half the market. Crane cables, marketed mainly through Pirelli Cables and Systems GmbH, are part of Pirellis specials line and are produced at four manufacturing facilities. Pirellis cable and energy business, previously acquired from Siemens, had sales of 3208 mill in 2004, with an operating income (EBIT) of more than 110 mill. According to the official statement, Goldman Sachs fully supports the existing management team and itends to work with it to continue to grow and develop the business.

crane spreader diagnostics and monitoring system, not just in assocation with new spreader orders but aso as retrofits. For example, APL is retroffting SCS2 nodes to 12 cranes and 16 spreaders in one of its US facilities, and there have been two big spreader retrofits in Hong Kong (20 for HIT and nine for MTL) as well as one for APM in Algeciras (10 spreaders). There are now more than 2500 SCS2 spreader nodes in service globally, says Bromma. Finally, Bromma has come up with STS 45 Light, a lighter version of its STS 45 separating centre twin 20 ship-to-shore crane spreader. At 11.1 tonne, STS Light weighs 1.6 tonne less than the regular STS 45. Its SWL in twin 20 mode is 2 x 25 tonne instead of 2 x 32.5 tonne, but the weight saving brings twin 20 handling capability to cranes which do not have enough capacity for regular STS 45 operations. In Brommas estimation, the 1.6 tonne weight reduction also results in an energy saving equivalent to 17,500 over a 50,000 hour spreader lifetime. The STS 45 is the most popular of Brommas ship-toshore crane spreaders. Last years sales included 56 for delivery to terminals in China, 24 to PNC Busan and 23 to PSA-HNN Antwerp. Key orders so far this year include eight for Lianyungang and nine for a Port of Long Beach operator.

June 2005

CARGO HANDLING/PORT NEWS

WorldCargo news

Multi-pallet handler from Kaup

Tilbury-based Interforest Terminal London, part of SCA Transforest, has extended the flexibility of its FLT fleet with a Kaup multi-pallet handler with telescopic forks supplied by B&B Attachments. Up to now Interforest Terminals has used Kaup double pallet handlers with 1500mm long forks, enabling operators to handle two to four pallets on the forks from one side of the vehicle and then load single pallets, placed at the end of the forks from the other. However, they require frequent change of trucks and blades to accommodate the variety and sizes of pallets. In addition, operators found that pallets, stacked behind the load being handled, were at risk of damage from the blades. The answer, says B&B, came with the introduction of Kaups T429 range of multi-pallet handlers with telescopic forks, allowing the operator to adjust the fork length from 1000mm to 1500mm and any position in between. They can now carry pallets back against the fork upright instead of at the fork tips, which saves time

The Kaup T429 attachment provides drivers with more options, says B&B and money and reduces truck usage. Launched last year, the T429 comes with sideshift and two hydraulic functions. It is capable of handling one or two pallets side-by-side or two or four pallets two in a row and side-by-side. It is available in six options to handle pallets weighing from 2500 up to 4600kg.

Antwerp card check Stevedores

Ingersoll-Rand Maritime Solutions has installed an Internet-based ID-verification and credentialing card-management system at the Port of Antwerp. When fully deployed, it is estimated that the system will validate and record credentials for more than 20,000 dockworkers, truck drivers and other employees and visitors requiring access to the port. The system uses electronic and biometric technologies based on software and hardware components from IngersollRand subsidiary Interflex Datasystems, which has also designed an open-architecture database and supporting technological infrastructure through which the ports 71 private terminals may access and use the card management system to secure their individual access points. The private terminals will have real-time access to data about all personnel cleared to do business with the port. Each of the 20,000 electronic identification cards used in the Atwerp system is equipped with radio frequency identification (RFID) technology, allowing cards to be read at up to 10cm distance, facilitating fast movement through access points. The cards may be used with Interflex and other RFID readers. The system stores information about employee certifications, work experience and access restrictions, as well as biometric identifiers. The hand geometry of each card recipient will be prerecorded on each credentialing card for use at terminals employing Recognition Systems Inc (RSI) biometric hand readers. The Interflex card management system is built on the latest web technologies and utilises a powerful work-flow engine coupled with full web-based interaction, enabling the complex credentialing process to be carried out quickly and efficiently across terminals and other systems.

in diapers
The Massachusetts state attorney general has uncovered a scam whereby Boston longshoremen have been registering their children as ILA members and getting them paid for a few hours a year. This enabled children to accrue seniority and, if and when they started work as a longshoreman, to be paid at a significantly higher rate. In one reported case a newly-hired 21 year old was found to have 19 years seniority, boosting his starting pay from US$16 to US$28 an hour. Attorney General Thomas Reilly has launched a grand jury investigation into the alleged fraud, which he described in the New York Times as part of the culture of the waterfront and an unsophisticated plan to ensure jobs were kept within families.

Suezmax terminal for Bristol?

The UK Port of Bristol wants to build a new deespea container terminal capable of handling ships up to 12,000 TEU.The 100-acre facility at Avonmouth would offer 1200m of linear quay with 16m depth alongside on every tide and an approach channel at 15m below chart datum. The driver for this initiative, says the ports owner and operator, the privatelyowned Bristol Port Company (BPC), is the shortage of deepsea containerport capacity in the UK and the fact that most of the existing and prospective new capacity is located in the south east of England, where congestion is endemic and set to get worse. BPCs chairman Terence Mordaunt stated that a number of leading shipping lines have encouraged the company to proceed with this project, particularly after ABPs Dibden Bay project was finally refused planning permission. Assuming BPC obtains the necessary Harbour Revision Order and construction work began shortly thereafter, the first phase of the new facility could be in operation by 2008. It is costed at 300 mill, including all dredging and civil construction work, up to 10 x 67m outreach cranes, other superstructures and operating systems. Mordaunt says that BPC will proceed only on the basis of carriers committing to use the facility. According to the BPC, Bristol is the closest port to the UK population as a whole, with a population of 37 mill and 45 mill living within 250 and 300km respectively, compared to 32 and 37 mill within these distances from Southampton, the next closest port. Similarly, Bristol is also closer to most container origin/destination points than London, Southampton, June 2005

Artists impression of the new terminal built out from the existing foreshore at Avonmouth Felixstowe or Liverpool. BPC believes that this gateway attraction will justify the deviation from Finisterre for a ship en route to, say, Rotterdam or Antwerp. The port has excellent motorway access and the existing rail link into Avonmouth, already used for coal, cars and some container traffic, would serve as a near-dock intermodal railhead for the new deepwater terminal, although capacity and high cube clearance issues still have to be clarified with Network Rail. Feeder ing to Ireland or Br itish outports is also a distinct possibility, since the existing shortsea lo-lo terminal at Avonmouth is close by and could be fed from the new terminal with a simple in-port terminal tractor dray. Although some environmental objection are anticipated, BPC is hoping that these will not be a major obstacle given the nature of the Bristol Channel, and it has been working closely with English Nature to address environmental issues arising from the development. Since it took over the then loss-making port from the local authority in 1991, BPC has acquired a reputation for picking winners, and has built up a portfolio of cargo trades where it can compete successfully (eg new cars, coal, agri-bulks, shortsea containers).To date the company has invested 179 mill in developing and enhancing facilities and services and its joint venture partners such as R WE (exNPower) a further 162 mill. 7

PORT NEWS

WorldCargo news

Ceres finally under way

As forecast in the last issue of WorldCargo News (p34), Amsterdams Ceres Paragon terminal, owned 50 per cent by NYK and 50 per cent by Chris Kritikos (through CNK Trust), has finally secured regular business from the Grand Alliance (GA). NYK has been pressing for this since it bought into the facility in September 2002, but despite the growing congestion in Rotterdam, P&O Nedlloyd refused to countenance it. Apart from a handful of trial calls by various shipping lines, the innovative terminal with its indented dock for double-sided ship working has been idle since it opened in 2001. It is not clear why NYK has finally made a breakthrough, but P&ONL is expected to quit the alliance if the takeover by Maersk Sealand goes through. It is understood that P&ONL is not involved in the Amsterdam calls. The existing Loop A (JapanEurope) service by NYKs 6000 TEU vessels will call Amsterdam eastbound as well as Rotterdam,

Two GA strings will call at the Amsterdam facility, including the new F loop while the new F loop from China will call Amsterdam but not Rotterdam. The two weekly calls are expected to generate over 220,000 TEU on an annualised basis. As also previously reported, although it was originally NYK that insisted that Kritikos retained a 50 per cent stake in the terminal to the end of 2006, the line took its case to wrest control from him to the courts. However, the Court of Justice of Amsterdam has ruled that it cannot force Kritikos to sell his shares by threatening to make the company bankrupt Earlier this year, Kritikos was apparently able to block the proposed sale of the terminal to Hutchison Port Holdings ECT on the ground that the price offered was too low. Even with the GA calls secured, Ceres Paragon is still working well below capacity.

Cosco Pacific invests DPI wins in Yangtze terminal in Aden

Cosco Pacific is paying Yuan 168.22 mill (US$20 mill) for a 20 per cent stake in a container terminal at the Yangtze River Delta port of Nanjing. Under the agreement signed last month, Cosco Pacific will manage and operate Phase I of Nanjing Longtan Terminal (NLT), which is already operational. Other shareholders in theYuan820 mill joint venture are state-owned Nanjing Port Authority and its subsidiary Nanjing Port Co, Shanghai Port Container Co and its subsidiary Shanghai Port Container (Macau) Co. NLT has five berths with total quay length of 910m and a depth alongside of 12m, a 930,000 m2 container yard and 208,000 m2 depot Annual handling capacity is 1 mill TEU. Cosco Pacific has also signed letters of intent to take a 20 per cent stake in the five-berth Jingtang Island Terminal (JIT) at Ningbo port and a 30 per cent interest in the four-berth North Basin B Terminal at Tianjin. Both are expected to begin operations in 2007. JIT, spread over 1.7 mill m2 with a quay length of 2,000m and water depth of up to 15m, will have an annual handling capacity of 3.5 mill TEU. Ningbo Port Group will have 45 per cent stake in the terminal, Ning Xing Holdings 25 per cent and Zhoushan Yongzhou Container Terminal 10 per cent. The quay length of North Basin B Terminal in Tianjin is 1,100m with a depth alongside of 15.5m, which is being increased to 18m. Its handling capacity will be 2.1 mill TEU/year.Tianjin Port Group will hold a 40 per cent stake and APM Terminals of Denmark 30 per cent. Cosco Pacific deputy managing director Kelvin Wong expects its six-berth Nansha container terminal in Guangzhou, south China, to break even in 2007 after opening in July next year. The annual handling capacity of the terminal will be I mill TEU in the first full year of operation and 1.5 mill TEU in the second, gradually increasing to 4.2 mill TEU, he said. The only deepwater port in Guangzhou, Nanshas four-berh multipurpose first phase opened in September last year but has operated at only 25 per cent capacity in the first four months of this year. The government of Yemen has chosen DPI Terminals as the preferred bidder for a 30-year concession to develop and manage the Aden and Maalla container terminals at Aden. DPI plans to invest US$370 mill during the life of the concession in new equipment, infrastructure and management systems to increase annual capacity to 3.5 mill TEU. Aden Container Terminal, completed in March 1999 by Yeminvest, a joint venture led by Singapore port operator PSA International, has two 350m berths with a depth of 16m alongside. It handled 282,387 TEU last year. In 2003, the gover nment ended the contract with the joint venture at the request of PSA, transferring Yeminvests assets at the terminal and the free trade zone to the government. If DPI finalises the contract, the first phase expansion project to add one berth, increasing the quay to 1,100m, and install seven new superpost-Panamax gantry cranes at the terminal, will be completed in 2008, increasing annual capacity to 1.7 mill TEU.

Goodbye to Big Red

The Port of Tacomas first container crane, a 1970-built Peiner, which cost US$1.2 mill when new, has been dismantled and hauled away as scrap metal from Terminal 7, which is being expanded to cater for its new tenant Yang Ming Line. Also dismantled was the adjacent Mitsui grab crane of the same vintage. The demolition and clearance were carried out by International Rigging of Alameda, California, taking down both cranes for US$506,652 and retaining the resulting scrap to sell on the open market. The Peiner crane was designed to handle bulk and general cargoes as well as containers as Tacoma hedged its bets about the container business. It was fitted with a rotating trolley to handle athwartship stow containers. Always known as Big Red even when repainted blue, the crane June 2005 was, in theory, one of the first postPanamaxes as it could reach just over 14 containers across. The Mitsui crane spent 30 years retrieving alumina from ships with a 25 yd 3 clamshell bucket.The ore was delivered into

an elaborate system designed to be moved by conveyor to the ports two alumina domes, which were demolished earlier this year to free up space at Terminal 7, which will be known as Olympic Container Terminal. Kaiser shut down its aluminum smelter in 2000 and the port purchased the 96-acre site in 2003.

Big Red (repainted blue) has been demolished after over 30 years of service

WorldCargo news

PORT NEWS

PSA signs for second Melbourne APMT takes stake in Tianjin box terminal dredging Brazil box terminal on trial
Singapores PSA International has signed up to take a 30 per cent stake in a joint venture that will build a six-berth container terminal at Tianjin, the largest port in north China. State-owned Tianjin Port Group (TPG) will take 50 per cent and an unnamed company 20 per cent in the Yuan5.3 bill (US$640 mill) terminal, which will have an annual handling capacity of 3 mill TEU. Its 2,200m quay will have a draft of 15m. This will be PSAs second investment in Tianjin and fifth in China, where it also has stakes in terminals at Dalian, Fuzhou and Guangzhou. In December last year, it teamed up with Orient Overseas Container Line, P&O Nedlloyd and TPG to expand a container terminal on the western reaches of Bohai Bay in Tianjin (see WorldCargo News January 2005, p4).TPG has a 40 per cent stake and the three foreign companies 20 per cent each in that project, which will add three or four berths. If Maersk Sealands bid to take over P&O Nedlloyd succeeds, the latters stake will be transferred to APM Terminals, the ports division of the AP Moller-Maersk Group. Dubai Ports International (DPI) is currently the only foreign operator at Tianjin after acquiring the worldwide port network of CSX World Terminals earlier this year. It has a stake in the four-berth CSX Orient (Tianjin) Container Terminals, a joint venture with TPG. Chinas fifth largest container port,Tianjin is locked in a battle with Dalian, where PSA invested in 1996, and Qingdao, where P&O Ports has a stake, to become the dominant box hub in north China. Throughput at Tianjin rose 23 per cent to more than 1.43 mill TEU in the first four months of this year, with April volumes totalling 410,380 TEU, topping the 400,000 TEU mark for the first time. The port handled 3.82 mill TEU last year and TPG expects throughput to increase to 4.25 mill TEU this year, rising to 6.5 mill TEU in 2007 and 10 mill TEU in 2010. Following the rejection of aspects of its key environmental effects study (EES) into deepening the Port Phillip Bay shipping channels (see WorldCargo News May 2005, p37) the Port of Melbourne Corporation (PoMC) has decided to take up one of the review panels major recommendations by implementing a trial dredging programme. The PoMC is seeking all relevant government approvals for the trial, which, it says, will help resolve some key risks and uncertainties in the project. Trial dredging is a logical way forward to prove that the proposed technology can safely and effectively deepen the entrance to the bay and will contribute to a better understanding of resultant turbidity, it said. If approvals are granted under the Environment Effects Act and the Coastal Management Act, a nine-week trial, utilising the 1998-built, 6,885 dwt QUEEN OF THE NETHERLANDS, will take place during winter and early spring. It will include The Heads, the south and the north of the bay and will be subject to strict environmental controls and be independently monitored at all stages. According to local press reports, the trial could cost in excess of A$30 mill. The PoMC will introduce a new wharfage charge on empty international containers with effect from July 1. The Corporation has set the charge at A$8, down from the originally-proposed A$10, but it has still attracted the anger of shipping companies over what they see as a tax on fresh air. However, the PoMC says empties are just as much users of port infrastructure as full containers. Under the new schedule, wharfage charges on full containers will increase by 3.5 per cent from A$31.40 to A$32.50. Tonnage charges for vessels will again remain unchanged for another year, staying at 2003/04 levels. This is the first schedule for Melbourne port to be compiled under the Essential Services Commissions new price monitoring framework. APM Ter minals (APMT) has taken a 50 per cent stake in the Teconvi (Terminal de Conteineres do Vale do Itajai) container terminal at the Brazils Itajai port. Cattalini Terminais Martimos Ltda is the other partner. Teconvi operates at both the ports concession area and public berths on a total available berth length of 740m. Containers are handled by two harbour mobile cranes and ships own gear.A third harbour mobile is due for delivery in August. AMPT chief executive officer Kim Fejfer said Teconvi is undergoing an expansion programme, which will increase annual handling capacity to 1 mill TEU. The plans include construction of a new berth equipped with gantry cranes, reinforcement of the existing quay and expansion of the yard area.

The southern Brazilian port handles a large volume of refrigerated exports, a sector in which APMT affiliate Maersk Sealand is a major player. Container throughput was 564,012 TEU last year, with Teconvi accounting for more than 90 per cent of the total. APMT already has a stake in the Port of Pecems container terminal in north eastern Brazil, operated by Cear Terminal Operations (CTO), where throughput rose 24 per cent to 83,384 TEU last year as Pecem became one of the main export ports for frozen fruit from the Vale do Sao Francisco region. Brazils container terminals looking to expand capacity to cope with the countrys export boom have received a boost from the government, which has extended tax exemptions for two more years on

Annual handling capacity at Teconvi is to be expanded to 1 mill TEU port equipment, including cranes and reach stackers. Several terminals, including Santos Brasil, Tecondi and Rodrimar in Santos, and Teconvi in Itajai, are taking advantage of the elimination of various import taxes which can add up to 40 per cent to the cost of imported equipment.

NCSPA switches Radio on

The North Carolina State Ports Authority (NSCPA) has set a July 8 deadline for the receipt of bids for engineering design services for the construction of a marine terminal on Radio Island, adjacent to the Port of Morehead City. The location is claimed to be one of the premier undeveloped deepwater port sites on the US east coast. The NCSPA owns about 250 acres on Radio Island, of which an area of 150 acres is suitable for development. An Environmental Impact Study (EIS) on the property, approved in 2001, calls for construction of a marine terminal with 2,000ft of wharf, warehouse space, and paved, open storage. The EIS also specifies dredging to br ing the 45ft-deep Morehead City navigational channel to the face of Radio Island. Preliminary estimates put the total cost of the Radio Island development at a minimum of US$65 mill. Design services up for bid include civil, structural, environmental and electrical engineering for all necessary site improvements shown in the approved EIS. The designer also will be responsible for any EIS updates that may be required, project impact mitigation and obtaining all necessary environmental development permits. The Radio Island development project is an integral component of the NCSPAs US$254 mill expansion plan, which also includes a new 250,000 ft2 warehouse at the Port of Morehead City and substantial improvements to the container terminal at the Port of Wilmington.

Tuticorin doubles up
The Port of Tuticorin in south India is planning to invite global tenders for the operation of a second container terminal. PSASICAL Terminals Ltd, a joint venture between PSA International of Singapore and SICAL of India, which runs the ports existing box terminal, will be allowed to bid for the second facility, Although it is against the stated policy of the government, the Indian Shipping Ministry has given its approval for PSA-SICAL to bid because it is stated in the latters concession agreement for the first terminal that it will be allowed to bid for a second terminal at the port if the port authority decides to convert berth No 8 into a container terminal. Tuticorin Port Trust (TPT) had asked the Shipping Ministry to clarify PSA-SICALs position in view of the agreement between the PortTrust and the joint venture company. TPT has now decided to convert berth No 8 into a container terminal and the tender for it is expected to be published shortly. The facility, which will be operational as a container terminal by the end of 2006, is being offered for 30 years on a build-operate and transfer (BOT) basis. It is expected to cost Rs 1.5 bill (US$34.5 mill) and will have a draft of 10.7m and a capacity to handle 450,000 TEU/year. The successful bidder will be asked to furnish a minimum guaranteed throughput from the first year of operation. The existing ter minal at Tuticorin has a quay length of 340m, which limits the number of vessels it can receive. In the year to last March, it handled 307,000 TEU registering a growth of 21 per cent over the previous year. If container traffic continues to grow at 20 per cent annually, the TPT will consider converting berth No 9 into a container facility.

LA legal settlement
The Port of Los Angeles has agreed to pay China Shipping Container Line more than US$22 mill in a legal settlement stemming from the ports failure to open a new terminal on time. The port will also have to pay the Shanghai-based company up to US$7.2 mill in additional penalties if it fails to complete two expansions of the Berth 100 terminal on schedule. The project was delayed for more than a year because of environmental mitigation measures that had to be taken after a lawsuit was filed by community and environmental groups, alleging that the port did not complete required environmental studies before giving the US$47 mill terminal project permission to proceed. China Shipping originally planned to start using the terminal in November 2002. However a US court halted construction in October 2002 following the environmentalists intervention. The port sought in 2003 to address concerns over diesel and other emissions by agreeing to pay US$60 mill for environmental projects. In May 2004, it opened one berth as a green berth where China Shipping vessels would use shoreside electricity instead of diesel while docked. Under the May 25 settlement, the port will pay China Shipping US$10 mill for loss of revenue

and other expenses associated with the delay and for expenses resulting from new environmental requirements. The port will also grant the company US$12.2 mill in rent credits. In addition to purchasing environment-friendly yard equipment as a term of the amended stipulated judgment in the lawsuit, China Shipping has agreed to vessel retrofits that have enabled its ships to plug into electrical power while at berth. Since mid-2004, China Shipping has operated under a nonexclusive berth assignment as an interim agreement with the port until the settlement of its claim for damages could be reached. Permit No. 999 grants China Shipping use of Berths 97-109 for operation as a container terminal for a 25-year period, with the possibility of three five-year extensions. As both a tenant and shipping line calling at the Port of Los Angeles, China Shipping paid the port combined wharfage and rent in excess of US$18 mill last year.

Five fully-erect, superpost-Panamax ship-to-shore cranes built by ZPMC in China for the Eurogate Container Terminal recently arrived at the Port of Hamburg on board the ZHEN HUA 8 after an eight week voyage from Shanghai. The cranes will be moved onto Berth 1 at Eurogate, where modernisation work lasting eighteen months is nearing completion. The quay wall was extended forward by 35m and depth alongside increased to 16.2m, allowing the berth to handle the next generation of containerships. Once Berth 1 is completed, similar modernisation work will begin on Berths 2 and 3. By 2010 the Hamburg Eurogate terminal expects to be handling more than 4 mill TEU/year 10 June 2005

WorldCargo news

PORT NEWS

Shanghai names the Yangshan contenders

Shanghai authorities have drafted a list of port operators and shipping companies that will be invited to invest in the second phase of the citys new container port at Yangshan islands this year. The list includes Hong Kongbased Hutchison Port Holdings (HPH), Cosco Pacific and Modern Terminals (MTL), which has teamed up with China Shipping Group to bid for the project, as well as APM Terminals, P&O Ports and Singapores PSA International. Gu Gang, a director of Shanghai Tongsheng Investment Group, which is building the port, said the list had been whittled down from more than 20 companies that had expressed interest in the four-berth second phase, which is expected to cost about Yuan5 bill (US$604 mill), excluding the land cost. He said the Shanghai government wanted to bring in a consortium of international investors and that winners would probably be chosen through negotiation rather than bidding. We are looking for the largest shipping companies and port operators because the port itself is going to be very big, he said. The best is for companies to form a consortium since the number of berths under construction is still limited and we cannot satisfy everybody, he added. The Yangshan complex is the biggest port project in China, and

After a 47-day voyage from the Port of Tianjin, China, two new superpostPanamax ship-to-shore container cranes arrived semi-erect this month at the Port of Savannah on board DOCK EXPRESS 10. Built by KCI Konecranes, they are among the largest ship-to-shore cranes in the world, each with a length of 465ft, height of 374ft with boom raised, weight of 1,369 tons, and are capable of handling 22 containers across and six containers high on deck. Lift capacity is 72 tons under the spreader and 95 tons under cargo beam.The cranes will be the first cargo unloaded at the Garden CityTerminals new Container Berth 8 (CB-8), which is more than 50 per cent complete and on schedule for Phase 1 completion by January 2006.When complete CB-8 will increase capacity at the Port of Savannah by 20 per cent, adding more than 9,800ft feet of continuous dock

The East China Sea bridge linking Yangshan with the mainland will be opened to traffic in November probably the world, with a planned investment of around Yuan100 bill to build 52 berths

and a bridge connecting the port to the mainland. Shanghai International Port Group (SIPG) and its subsidiary Shanghai Port Container Co are the only investors in the fiveberth first phase, which will start trial operations by the end of this year. The first phase will have an annual handling capacity of 2.5 mill TEU and the second phase 2 mill TEU. Shanghais Mayor Han Zheng has announced that the 32.5 km long, 31.5m wide East China Sea Br idge linking the city with Yangshan will open to traffic in November. The two ends of the bridge, connecting Luchao port on the Shanghai coast and Small Yangshan island in Hangzhou Bay were joined on May 25. International investors are keen to get in at Yangshan as Shanghai has become the worlds third-busiest container port and is poised to overtake Hong Kong and Singapore.

After months of political grandstanding by members of his government and sections of federal bureaucracy,Australian Prime Minister John Howard has concluded that there is not quite the crisis that some people, for a variety of reasons, would like us to believe in Australian ports. A Howard-appointed taskforce into claimed export bottlenecks has found there is no major infrastructure crisis, although it has made a series of recommendations about streamlining pricing, regulation and planning approvals processes. The taskforce was established to identify any bottlenecks of a physical or regulatory kind in the operation of Australias infrastructure, which may impede the full realisation of export opportunities. Its report concluded that while some parts of the nations infrastructure face immediate capacity constraints, actions already in train should help resolve these. However, it does suggest that there are some underlying weaknesses that must be addressed if the problems are not to become widespread and to prevent future bottlenecks developing.

Oz ports are not a Auckland Gopalpur shortlists bidders problem after all takeover stalled
The report notes that the greatest impediment to the development of necessary infrastructure is the way in which the current economic regulatory framework is structured and administered. The fragmented nature of regulation, the extent of powers vested in regulators and the scope for inconsistency create uncertainty and increase the level of risk for infrastructure investment. The taskforce has recommended changes to improve the level of regulation required, the clarity of regulatory objectives and the consistency and timeliness of regulatory decisions. In particular, it has recommended that in the first instance, issues to do with export-oriented infrastructure be resolved by commercial negotiation between the infrastructure provider and users. Where regulation is warranted, light-handed regulation (for example, price monitoring) should be applied by the relevant regulator.Where this demonstrably fails and stronger regulation is needed, the test applied by regulators should be simplified to allow for faster processes and time limits should be imposed. Auckland Regional Holdings (ARH) is having difficulty acquiring the 10 per cent of shares in Ports of Auckland Ltd (POAL) needed to reach 90 per cent ownership and trigger a compulsory takeover of the remaining shares. Earlier this year, ARH surprised the market with an offer of NZ$8 per share for the 20 per cent of POAL that it does not already own.That offer has now been extended three times and ARH has acceptances taking it to 86 per cent, but three key institutional shareholders are holding out POAL has not been performing well in its core business recently - container volumes actually fell last year and Tauranga is tipped to win dairy g iant Fonterras business which would cost Auckland 20 per cent of its container business. However, the port company owns a large industrial waterfront property to the west of the container terminals and the ARH has the ability to get the land rezoned for residential development, which could potentially double its value. The government of Indias easter n state of Or issa has shortlisted all five companies which put in requests for qualification to convert Gopalpur, a minor and seasonal port, into an all-weather f acility (see WorldCargo News November 2004, p11. We expect to finalise the matter by the end of July, said Raja Lakshmi, the states Principal Secretary for Commerce and Transport. She said a prebid meeting had been held on April 29 and all five parties BHP Billiton of Australia, Integrax of Malaysia and Indias Larsen & Toubro, Infrastructure Leasing & Financial Services and Or issa Stevedores - had shown interest. The bid document and the concession agreement will be ready by August. Rail India Technical Economic Services (RITES) is the official consultant to the Orissa government for the Gopalpur project and it has asked for a few more weeks to submit a report on the viability of the project. Gopalpur is operational only from October to March and it will be the new operators job to turn it into an all-weather port. It currently handles minerals, fertilisers and food grains, but its income is minimal. The port is being offered on lease initially for a period of 30

years, which could be extended by another 20 years through a mutual agreement between the state government and the developer.The project is being offered on build-own-operateshare-transfer (BOOST) basis. The bidders will be asked to quote the percentage of the gross revenue they will share with the government and the winner is likely to be the company which offers the highest revenue share. Orissa is keen to develop Gopalpur as it has only one major port - Paradip. Another minor port, Dhamra, is being developed by Tata Steel and Larsen & Toubro.

Vizhinjam extends deadline - again

The south Indian state of Keralas Ports Department has once again extended the deadline for the submission of bids for the development of the proposed Vizhinjam international container transhipment terminal, this time from June 8 to July 30. S Vijaykumar, CEO of Vizhinjam International Seaports Ltd and adviser to the Kerala governments Ports Department, said the deadline had been extended at the request of some of the prospective bidders.The state government also felt that extending the deadline would help attract more bids.The investors felt they needed more time to evaluate the project because there were several complexities involved in it, he said. Last December, the deadline expired for Vizhinjam without a single bidder submitting a financial bid. Prospective bidders then

said they wanted more concessions, which were given in the tender floated subsequently. One problem is that Vallarpadam, another potential transhipment hub, which is being developed by Dubai Ports International (DPI) near Kochi, is just 200 km away, although Vijaykumar claims that this development does not diminish the importance of Vizhinjam. The project, which is being offered on build-operate-sharetransfer (BOST) basis, involves building two mainline and four feeder berths in the first phase, with a quay length of 1.4 km.The final phase will have four mainline and nine feeder berths with a quay length of 3.5 km. The project cost is estimated at Rs18 bill (US$412 mill).

New Tasmanian ports HQ chosen

Tasmanias reformed port system is to operate from headquarters in Devonport on the central north coast. State Cabinet had previously determined that the new Tasmanian Ports Corporation (TPC - see Worldcargo News February 2005, p15) would be based in northern Tasmania, but Devonport has now been selected as the best strategic and geographic location central to Tasmanias principal freight ports of Burnie, Devonport and Bell Bay/Launceston. The boards of the four ports have endorsed the need for change and are in agreement with the governments approach in establishing a new merged en12 tity. Current chief executives will be invited to apply for positions as heads of four new divisions, while the new TPC CEO position will be advertised shortly. The intention is to have the new Corporation fully operational by the end of the year. The TPC is expected to deliver a range of benefits to Tasmania, including improved strategic use of port infrastructure, enhanced economic growth and employment opportunities and a greater ability to respond to the needs of Tasmanias exporters, the government says. The TPC will be registered under the Commonwealth Corporations Act 2001 from 1 July. June 2005

PORT NEWS

WorldCargo news

BA awards dredging contract

Boskalis International has won a contract to deepen the Port of Buenos Aires South Canal, which links the main access channel with the Exolgn container terminal. The work, which will take four months to complete, will result in the access channel having 9.75m of available draught across 85-100m. BAs long-standing dredging problems came to a head recently when Hamburg Sds 5552 TEU newbuilding MONTE ROSA was forced to scrap her maiden call at Exolgn in Dock Sud due to depth problems and instead docked at the TRP terminal in Porto Nuevo.The containers exchanged then had to be trucked to and from Exolgn. Hamburg Sd and P&ONL are reshaping their ECSA-Europe joint service with the introduction of new tonnage and BA is the only non-Brazilian port of call in the newly-styled Brazil Express service. The MONTE ROSA is easily the biggest containership to call at BA and the incident led to speculation that the port would be dropped, with Rio Grande do Sul in Brazil becoming the turnaround port.The carriers denied this but couched a clear threat to quit the port in diplomatic language. Last year there was another embarrassing incident when the Coast Guard suddenly and inexplicably revoked a permit for another Exolgn customer, CP Ships, to introduce calls at Murchisons Terminal Zarat facility (see WorldCargo News December 2004, p11).

ICTSI wins Madagascar deal

Following an international tender organised for the government of Madagascar by the International Finance Corporation (see WorldCargo News October 2004, p3), Manila-based ICTSI has been selected to take over the management of the countrys leading port, Toamasina. According to the IFC, the private sector arm of the World Bank, ICTSI was selected through a competitive and transparent bidding process from a group of prequalified bidders, including AP Mller Finance, Hutchison Port Holdings and a consortium formed by Malta Freeport, CMA CGM and Bollor. The winning bid was selected on the basis of ICTSIs offer of the highest royalty fee per 20ft container handled. ICTSI will be granted a 20-year concession for the operation, management, financing, rehabilitation, and development of the container terminal on a PPP basis. Toamasina currently accounts for over 90 per cent of all container traffic in Madagascar, handling 104,000 TEU last year.The concession documents specify the obligations and risks that will be shared between the private operator and the newly-established landlord port authority (SGPAT). During the life of the concession, it is estimated that over US$300 mill will be mobilised from the operations of the container terminal in the form of concession fees, royalties, and investments. In structuring this transaction, IFC benefited from the donor support of the UK governments DevCo arm, the Dutch Ministry of Foreign Affairs and the Swedish International Development Agency, as well as support from the Private Infrastructure Development Groups (PIDG) Technical Assistance Fund. ICTSIs first move at Toamasina will be to develop and properly equip a clearly defined container handling area at the rear of the two berths, C2 and C3, currently employed for container handling

Mumbai in bulk move

As part of its efforts to modernise its facilities, Indias Mumbai Port plans to privatise four of its bulk terminals at Indira Docks. Officials said the board of Mumbai Port Trust (MbPT) had already endorsed the proposal and tenders will be issued shortly. The idea is to mechanise operations at the terminals, which have been losing traffic in the last few years, a port official said.With mechanisation, the port expects to achieve better efficiency and double its bulk traffic. Mumbai handled around 1 mill tons of bulk traffic in the year to last March 31, but this was only half the volume it handled three years earlier. The port also plans to reconstruct harbour wall berths so that it is able to receive larger vessels. At present it can only receive vessels of up to 35,000 dwt.

West Java thinks big

The West Java administration in Indonesia will build an international port as part of a US$16 bill infrastructure spending plan to boost exports.West Java governor Danny Setiawan said the new port would be located near the town of Cikalong facing the Indian Ocean. Brussels-based consultant PA Asia has assisted the administration in planning the facility and private investors will be invited to participate in the project, details of which are expected to be released later this year. The port is expected to boost trade with Australia in coal and other minerals, textiles, handicrafts and other goods By developing Cikalong port, the underdeveloped southern region of West Java could be opened up for further development, PA Asia director Rio Praaning Prawira Adiningrat said. June 2005 13

WorldCargo news

INLAND/INTERMODAL NEWS

Still tough for ICF

Last year Intercontainer-Interfrigo (ICF), the pan-European intermodal rail operator, decided to cut several shuttle services on Western European routes, which have failed to fulfil the required profitability criteria, namely those linking Belgium with Italy, Spain and France. The services were introduced only last winter as part of a new system aimed at reducing costs. A further 40 jobs are going at ICFs Basle headquarters as a result of the downsizing. According to ICF the trend with traffic on north-south routes from Belgium to France, Spain, Italy and vice versa has been negative because of persistent poor quality traction standards, external economic influences and sharp price hikes that it was impossible to pass on to the market. Details of the service cuts were announced as ICF released the results of its 2004 financial year. It carried a total of 702,800 TEU in 2004 as against 734,000 TEU in 2003 (-4.3 per cent) over a mean distance of 1167 km (+1.5 per cent).Turnover amounted to 261 mill (-5.6 per cent) and the year closed with a net loss of 8.6 mill. Some 80 per cent of traffic was handled by ICF with it its own dedicated wagon fleet. At 31 December 2004 the fleet consisted of 4684 vehicles as opposed to 4903 the previous year. In traffic between German seaports, Rotterdam and Switzerland, and to and from countries in central and south east Europe, double figure growth rates were recorded in many cases. In these markets ICF has launched new products or stepped up the frequency of existing trains.

POPA in ...ARTC speeds shuttle up rail timetable launch...

The first rail track has been laid in a A$29 mill upgrade of freight facilities at Fremantles North Quay, a key part of a strategy, which includes the Kewdale Freight Terminal, to take 320,000 containers off local roads each year. The Western Australian Government and its agencies, including Fremantle Ports, the Public Transport Authority and Main Roads, are providing A$19.5 mill towards the project, while the Commonwealth is contributing A$9.5 mill in AusLink funding.The states Freight Network Review in 2002 set a target of 30 per cent of containers moved by rail to and from the port within 10 years. Last financial year numbers increased from 3 per cent to 7 per cent without any infrastructure improvements.The upgrade includes 3.2 km of new track, a new access road and rail bridge, realignment of Port Beach Road and new truck-weighing facilities. The project is scheduled for completion in late December Just weeks after announcing its plans for a nationwide network of inter modal ter minals (see WorldCargo News May 2005, p22), P&O Ports Australia (POPA) has launched its own dedicated rail link between Melbourne and Adelaide, replacing shared slots on Pacific Nationals daily service. The new shuttle is operating six times weekly in each direction, with haulage and equipment provided by the Australian Railroad Group. Terminals will be at P&O TransAustralias West Swanson facility and Kerry Logistics at Gillman in Adelaide, but extension to the new Somerton terminal in Melbourne is likely soon. POPA says the new service will create a significant capacity increase between Melbourne and Adelaide with space also available for Melbourne cargo moving north to Darwin. Meanwhile, Toll Holdings has opened its new Townsville rail terminal to handle cargo for partowned Pacific Nationals new North Queensland narrow gauge services, which have replaced those of previous incumbent Queensland Rail. The A$20 mill rail facility was completed in 12 months and will be followed by a new distribution warehouse for Toll forwarding subsidiary QRX, train maintenance facilities and further improvements at the terminal to take the investment past A$30 mill. Since March, Pacific National has been operating rail services between Brisbane and Cairns and intermodal freight services at Mackay, Merinda, Townsville and Innisfail, as well as Tennyson in Brisbane and Woree in Cairns. Agreements have been signed for the Victorian governments participation in the Federal governments AusLink programme, releasing A$1.5 bill in land transport project funding. Included is the upgrade of the line between the Dynon intermodal precinct and the port of Melbourne and the standardisation of the second track between Melbourne and Albury/Wodonga on the New South Wales border. The Australian Rail Track Corporation (ARTC) plans to telescope the timetable for crucial East Coast rail upgrades by entering into strategic partnerships with service and equipment suppliers. CEO David Marchant recently briefed potential alliance partners in Sydney on its repair, renovation and rebuilding programme on the north-south corridor and now believes it can be completed in four, rather than five, years. By improving transit time, reliability, capacity and yield (above and below rail), rail hopes to grow its market share considerably within the next four years. Marchant claims transit time will be reduced from 13 hours 30 minutes for 1500m super freighters to 10 hours 40 minutes from Melbour ne to Sydney. MelbourneBrisbane transit times at 1500m will be reduced from the present 35 hours, 46 minutes to

New Zealand rail network appalling

The true condition of New Zealands now state-owned rail network is proving a stumbling block to negotiating track access charges with new rail operator Toll. After Toll purchased Tranz Rail in 2003 the government agreed to buy back the network for NZ$1 and invest NZ$200 mill bringing it back up to scratch before agreeing access charges to recover on-going maintenance. Toll and OnTrack, the government entity managing and maintaining the track, have been unable to reach agreement over access charges after it emerged the track was in a much worse condition than thought. Finance Minister Michael Cullen recently told a Parliamentary Committee that what the government thought was a very bad situation is more accurately described as an appalling situation. Cullen accepted that the government would need to invest more than the NZ$200 mill nonrecoverable capital agreed in the initial agreement, but it is not known how much more is required. Although negotiations on the initial sale agreement were difficult and strained, Cullen said Toll had demonstrated its commitment to improving rail service and was open to the idea of renegotiating the initial access agreement.

26 hours, 10 minutes, while SydneyBrisbane transit times for super freighters will reduce from the present 19 hours, 22 minutes to 15 hours, 30 minutes. All of these transit times are based on projected 2015 train numbers; in advance of achieving these numbers, the transit times will be even better, ARTC says, while capacity will be significantly enhanced to enable the reliable movement of ten full length superfreighters each way between Sydney and Melbourne and nine each way between Sydney and Brisbane 365 days of the year. This compares with the current numbers of four to five superfreighters on each corridor, with some of these restricted to less than 1500m. The transit time and capacity enhancements are premised on an increase in volume on the North-South corridor of over 119 per cent.

EWS plans in Jade

Jade of New Zealand is developing a new Consolidated Planning Tool (CPT) for English Welsh and Scottish Railways (EWS) that will simplify and standardise its current train planning process. After Jade successfully developed an Electronic Customer Ordering System (ECOS) for EWS coal business, the company decided to extend aspects of the planning module to other business areas including steel, aggregates and intermodal rail maintenance. CPT is an advanced planning system that will cover more of the back office functions in the current planning process. Jades Dave Fidal explains that EWS plans up to 1000 trains per day and must coordinate bookings made through ECOS and other systems with Network Rail, which manages track access and maintenance. EWS previously had separate groups dealing with track possession and customer orders but these have now been combined. Linking CPT with Network Rails track information system makes possession information available much earlier on in the planning process and Fidal says EWS is starting to see a fall in the number of declined requests for access. CPT has also enabled EWS to improve the speed of the planning process and manage with less staff. Like all Jades applications, CPT is written in its proprietary object programming language, Jade, and runs off a full object-oriented database. At EWS head office in Doncaster, CPT is deployed over a CITRIX application deployment infrastructure whereas EWS yards have access through thin client terminals. As well as a planning tool, CPT is a real-time monitoring and control system that, through GPS units mounted on trains, will enable EWS customers to track cargo at the train level.This service is currently available to coal customers and will be extended to other cargo from August. Looking ahead, CPT provides the basis for EWS to take tracking to wagon and consignment level and the necessary input hooks were built into CPS when it was written. This is a much wider development as EWS has around 100 rail yards dotted around the UK.

Frjus boosts Modalohr

The forced closure of the Frjus road tunnel for several months due to an accident on 4 June has led to a surge of interest in the Modalohr service, which has been in experimental phase between France and Italy (LyonTurin) since the end of 2003. These heavily subsidised services have been technically successful and have proved safe, although hardly commercial as they are limited by structure gauge to tank trailers and even then only a small part of the tank trailer market has used them. Still, the graph is upwards. 1200 trailers used the service in March this year, for example, compared to 540 in March 2004, and the GB1 gauge clearance work in the Mont Cenis tunnel is due for completion next year. Capacity of the existing shuttle service between Aiton and Orbassano is 600 trailers/week but Modalohrs president Philippe Mangeard thinks this could be doubled with a few simple steps: laying on a fifth 14 night hours service; increasing the share of trailers carried as opposed to accompanied HGVs; increasing train length from 11 to 14 platforms; and adding more services on Saturdays and Sundays. He calculates that in these ways capacity could be increased to 1300 trailers/week . This is still a drop in the ocean compared to the 4000 HGVs/day which cross between France and Italy via Mont Blanc and, until recently, Frjus. But finally the penny has dropped. This level of road transport is simply unsustainable. Modalohr is now working on a north/south service concept between south west France/Spain and Benelux, linking Perpignan and Bettembourg on a route with GB1 clearance. Looking further ahead, three more French terminals could be added by 2008, in Lyon, Dijon and Miramas, but meanwhile services could use existing terminals. To be profitable the rail haul needs to be at least 1000 km. A working group made up of Caisse des Dpots et Consignations, Autoroute du Sud de la France, Egis and Modalohr is due to wrap up its work on the feasibility of the PerpignanBettembourg service shortly. Provisionally, the price needs to be set at 0.80-0.85/rail km, which compares favourably with trucking (.0.90-1.05/ km). This price should provide a sufficient gross margin assuming a 90 per cent utilisation rate. The Port of Marseille is also interested in the idea of a Modalohr platform within its ro-ro terminal to offer seamless, unaccompanied ro-ro-rail services for trailers crossing between North Africa/Eastern Med and Paris. All these schemes are outwith the ambit of the Route Roulante 2006 project (TLF, SNCF Fret and RFF), which, of course could create further opportunities. And, outside France, work on a possible Vienna-Regensburg service is at an advanced stage. June 2005

INTERMODAL/TANK CONTAINER NEWS

WorldCargo news

AFS flexitank centre in Le Havre

All Flexitank Solutions (AFS) has opened a new flexitank service centre in Le Havre to augment its existing Antwerp facility. The expansion comes at a time of rapid growth in the global flexitank market. Seppe van Nuffelen, manager of the Antwerp depot, reports that the business handled by AFS has doubled over the past three years. Established five years ago, AFS provides third-party fitting and technical assistance services for those engaged in moving non-hazardous bulk liquids in flexitanks. The companys flexitank fitting package encompasses the fitting of insulation, heater pads and the flexitanks themselves within freight containers, as well as the provision of steel bulkheads. This is backed up by container trucking, storage and flexitank lifting in/out options. The technical assistance on offer from AFS includes on-site loading and unloading, flexitank disposal and recycling and a 24-hour per day emergency response service covering cargo transfers and the provision of new equipment Although all the basic AFS services are on offer from the Antwerp and Le Havre centres, the mobility of the equipment means that the company can provide assistance across France and the Benelux region and into neighbouring countries such as Germany, Spain, Italy and the UK. Cyril Monet is responsible for the operation of the new Le Havre depot and the business is already well-established after only a few months in operation. Monet reports that the flexitank traffic patterns in Le Havre are similar to those in Antwerp, although Le Havre does not import as much bagged wine from Southern Hemisphere vinyards as does Antwerp. That said, industrial oils such as transformer oils feature as export cargoes in both ports, and other common flexitank cargoes are latex, white oils, wine, mineral water, vinegar, fruit juice and glucose. AFS staff handle the cross pumping of cargo between flexitanks

Singapore to track hazchem

With effect from July 1 2005, Singapore will track road vehicles carrying hazardous materials in bulk quantities on its territory. The new requirement covers all road vehicles carrying more than 3 tonnes of flammable materials, such as petroleum or acetylene, or more than 1 tonne of toxic chemicals. Although the primary road vehicles impacted by the legislation will be road tankers and tank containers carrying bulk liquids and gases, trucks/containers transporting substantial quantities of packaged dangerous goods will also be covered. Such vehicles will be required to be fitted with a global positioning system (GPS) monitoring device when operating on the countrys roads to enable the authorities to track their location in real time. Vehicles registered in other countries will need to have the tracking device installed at a border checkpoint when entering Singapore. The vehicles covered by the new regulations will only be allowed to travel along approved routes, away from highly populated areas, in daylight hours. Any vehicle deviating from the pre-approved routes or times will set off an alarm in the tracking system, triggering the vehicles horn and hazard lights.

Ruling on Iron Rhine

The Permanent Court of Arbitration in the Hague has ruled that that the Dutch cannot unilaterally vary the historic line of route of the Iron Rhine while it crosses Dutch territory, as the original Treaty of 1839 which governed this Belgian-Ger man rail link (Antwer pMnchengladbach) is still in force. The Court also ruled the Dutch must pay half of the cost of a tunnel under the Meninweg nature reserve (Roermond). The tunnel would account for the lions share of the 500-600 mill estimated for reopening the railway for freight. Alrthough the Belgians have been pressing the Iron Rhine case for 10 years, the priority for SNCB now is the second rail tunnel under the Scheldt and the second rail access for Antwerp, to support the new Deurganckdok and (in future) the possible Seftingedok. The Dutch government has been forced by Parliament to withdraw its decision to concede the management of the Betuwe Line for the first five years of its existence to ProRail (see WorldCargo News April 2005, p17). As a result,TowRail, the private Dutch rail freight group and other interested parties such as Siemens andVolker Wessels are back in the picture, although there is still concern that in practice the operation of the line, due to open in 2007, will be dominated by Railion companies. TowRail is seeking co-operation with an Australian investment company, Babcock & Brown. June 2005 15

WorldCargo news

TANK/CONTAINER INDUSTRY NEWS

ExxonMobil goes for GOLD

ExxonMobil has introduced an improved system for dispensing and transporting grease, utilising a special pallet-mounted, multi-layered flexible intermediate bulk container (FIBC) capable of holding over 800 kg of product. Termed the Grease One-Way Logistics and Distribution (GOLD) system, the FIBC is able to accommodate the equivalent of nearly five typical drumloads of grease. According to ExxonMobil, the GOLD system is configured in such a way as to prevent contaminants, such as air and water, from finding their way into the container. Placed on top of an easyto-manoeuvre transport pallet and stacking frame, the GOLD container functions much like a tube of toothpaste, gradually collapsing as grease is discharged through the automated dispensing unit. When the grease reservoir within the bag is used up, the FIBC can easily be disposed of, thereby eliminating the cost and effort of dealing with returnable drums or rigid IBCs. Today, the majority of companies rely on heavy steel drums, steel or plastic rigid IBCs or permanent bulk tanks to handle, store and transport grease, reports Michael Dionisio, grease adviser, ExxonMobil Lubricants & Specialties. With our new GOLD system and the benefits of its multi-layered FIBC, maintenance managers can eliminate the costs and time needed to handle and transport drums or bulk tanks. Such rigid units often occupy significant areas of valuable floor space and complicate inventory management. ExxonMobils GOLD system has achieved an ISO 9001/2000 quality assurance certification. The ExxonMobil GOLD FIBC draws down like tube of toothpaste, ensuring the grease contents remain contaminant-free

Anti-nuke MINDS...
Princeton University and InSitech Inc have signed a licensing agreement for InSitech to commercialise an anti-terrorism device developed by the US Department of Energys Princeton Plasma Physics Laboratory (PPPL). It is claimed that the miniature integrated nuclear detection system (MINDS) could be used in seaports to scan moving vehicles for specific nuclear signatures associated with materials employed in radiological weapons. The prototype MINDS was designed by a PPPL research team led by Charles Gentile and InSitech now has certain rights to the commercial development, manufacture, use and sale of the product. Timothy N Teen, CEO of InSitech (a not-for-profit organisation based at Picatinny Arsenal, NJ), said that MINDS can detect X-rays, soft gammas, gammas, and neutrons. It identifies gamma emitting radionuclides in real-time at levels slightly above background and in radiologically noisy environments. Radionuclides can be recognised and distinguished since each has a distinctive energy signature. MINDS compares the energy spectrum of the detected radionuclide with the spectra of particular radiological materials, such as cobalt or caesium that could be used to make a dirty bomb. According to Roger Adams, director of operations of MINDCo at Picatinny Arsenal, MINDS can also detect fissile materials such as U-233, U-235, Pu-238, Pu-239 and Pu-241. This claim may well be put to the test as the US government has set up a new testing facility in Nevada, dubbed RadNucCTEC, where all equipment vendors will be required to verify their claims. Having spent millions of federal tax dollars on anti-terrorism systems and equipment such as radiation portal monitors for seaports and airports that have proved unreliable and ineffective (see last months WorldCargo News, p3), the Department of Homeland Security (DHS) has now set up a new office, the Domestic Nuclear Detection Office, which is understood to have serious Department of Defense involvement.

...Varian ups the pace

Varian Medical Systems, which supplies high energy X-ray linear accelerators to a number of cargo screening equipment manufacturers, including L-3 Communications, BIR Inc and Aracor, has launched a new type of accelerator, the Varian Linatron K9. This technology has the capacity to take us beyond what you can conventionally see with X-rays, making it possible to identify special nuclear materials as well as view container contents, said Lester Boeh, vice president for Varians Security & Inspection Products business. The Linatron K9 is claimed to be the first interdigitated dual-energy accelerator designed specifically for cargo screening. It emits X-rays in a pattern that alternates between two energy levels more than 400 times per second. By analysing the Xrays that emerge when a container is scanned, Linatron K9-equipped systems can generate information about high-density objects and nuclear materials. The high-energy X-rays from the Linatron K9 can penetrate 17in of solid steel to generate fast, high-resolution images, Boeh commented. We believe it can screen a fully-loaded container faster than any other non-intrusive inspection system available in the world. The intellectual property behind the new K9 technology is an extension of the technology inVarians proven high-energy Linatron accelerator. Varians Security & Inspection Products business has delivered over 100 high-energy Linatron X-ray accelerators for cargo inspection to more than 35 locations worldwide. 16 June 2005

SOUTHERN AFRICA: PORT DEVELOPMENT

WorldCargo news

New priorities in Southern Africa

South African Port Operations (SAPO) has announced that it is content with improved efficiency at the nations ports and that it will now focus on increasing capacity. The shipping sector had long complained about slow turnaround times at South Africas main container terminals but the government and SAPO are expressing confidence that the situation has been greatly improved. Expansion is now the order of the day and investment is to be concentrated on three main ports: the existing container terminals at Durban and Cape Town, plus the new port of Ngqura, near Port Elizabeth. It is difficult to exaggerate the disheartening impact of the cargo delays that persistently plagued Durban and Cape Town until relatively recently. The extent of the congestion problems at Durban is revealed by the fact that the port handled more containers than its official capacity in 2004 with a record 1,548,000 TEU passing through the container terminal during the course of the year.

Buoyed by improvements at Durban, SAPO, the NPA and the government have an upbeat outlook
reinforced through adding the 600,000 TEU/year capacity second terminal. The entrance to Durban harbour is also to be widened, but a string of improvements have already been made.Three R60 mill superpost-Panamax Liebherr cranes were purchased for Durban from Contship Italia SpA last November and the terminal now has 19 ship-to-shore container cranes. Rail links with the port have been improved and the access road has been widened to three lanes. cess capacity at the countrys other container facilities at East London, Port Elizabeth and Richards Bay. East London in particular has been singled out to play a more important role in the countrys port sector. East London is expected to handle up to 80,000 TEU next year, compared to just 30,000 TEU/year 4-5 years ago.. A total of R857 mill is being spent on improving facilities at the port, including some work on the container terminal, but SAPO is investigating the possibility of building a second container terminal at the site. The existing terminal has the capacity to handle 100,000 TEU/ year but the government is considering the construction of a large new terminal that could process up to 850,000 TEU/year. However, such a facility would have to be built closer to the sea in order to accommodate larger vessels and this would require expansion of the harbour.

Namibian Port Authority is also expanding container handling capacity at the former South African port of Walvis Bay.The Walvis Bay Corr idor project was launched to attract business from the countries to the east and the port is likely to become an increasingly important outlet for SADC trade over the decade to come. The South African governWill Ngqura (Coega) soon have an anchor tenant to spark development?

Bigger Cape
In contrast with Durban, Cape Town container terminal was operating at well below capacity until the second half of last year. Now, however, the port is handling up to 50,000 TEU/month and its 560,000 TEU/year capacity is to be expanded at a cost of R610 mill. The terminal can currently handle 2000 refrigerated containers at a time but this is to be increased over the next 18 months. Maria Ramos, CEO of state transport umbrella body Transnet, said: These projects are consistent with our strategic vision of reducing the cost of doing business in South Africa. However, objections from local property owners mean that an environmental impact assessment must be carried out before the terminal itself can be widened.

Surcharges lifted
Delays of several days at Durban resulted in the imposition of a US$100 congestion surcharge on each container by several shipping lines two years ago, including MSC (which accounts for 38 per cent of the throughput), DAL, Safmarine and Maersk Sealand. However, claims that the situation had been turned around were backed up by the removal of the charges at the start of May. Calculated over the previous two months, by May the average delay at Durban had fallen to well below the 16 hour level and the cranes were said to be averaging 19 moves/hour. However, SAPOs Interim Advisory Board, which was set up to tackle congestion, will continue to seek out efficiency improvements. The delays were largely the result of the failure of port capacity to cope with rising demand in the decade since the end of Apartheid, but SAPO now hopes to win some breathing space through a step jump in capacity. Once there is a modest gap between demand and supply, SAPO executive manager Mervin Chetty says that his organisation will attempt to add new capacity in line with the rise in imports and exports. In addition, some investment is to be made in improving container handling equipment across the country, which should both continue the improvement in efficiency and boost capacity.

Regional outlook
Beyond South Africa, the NPA ports are facing more competition within the Southern African Development Community (SADC) region from container facilities at the revitalised Mozambican ports of Beira, Nacala and Maputo. Private sector consortia led by foreign companies have taken over the management of all three ports and Maputo in particular has begun to win some business from Durban. Mozambiques ports have traditionally served a wide area of Souther n Afr ica, including Swaziland, Zimbabwe and Malawi and rail links with the landlocked countries of the interior have been redeveloped. Several major exporters around Johannesburg have threatened to switch their trade to Maputo if extended delays reemerge at Durban. British firm African Cargo Services already ships most of its containers, which are bound for East Asia, out of Dar-es-Salaam rather than South African ports because of both delays and lower costs in Tanzania. On the west coast, the

New port
The development of the new port of Ngqura at the Coega Industrial Development Zone is likely to divert attention from Port Elizabeth, as the two facilities are likely to be managed on a joint basis. Although Coega has so far struggled to attract the anchor tenants that are considered necessary for the projects overall success, there are indications that Canadian aluminium producer Alcan and several other investors will soon commit themselves to the scheme. Moreover, a great deal of time and money has already been invested in Ngqura and the ports two container berths will be developed with or without new investors. Despite reports that talks between Transnet and P&O Nedlloyd had broken down, the managing director of P&O Nedlloyd Southern Africa, Bert Muys, has announced that his company could be interested in taking a wider stake in the project, encompassing the rail link to the port as well as the container terminal itself.

New capacity
Around a third of the R5 bill port investment on offer is to be spent on constructing a second container terminal at Durban. The port already handles around two thirds of South Africas container traffic, making it the most important container port on the continent, a position which should be

Spare capacity
These three key developments aside, SAPO and the National Ports Authority (NPA) hope that more traders will make use of ex-

The South African government does not see ports such as Maputo (below) or Walvis Bay as a threat and wants to encourage more regional co-operation

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WorldCargo news
ment is eager to promote greater economic integration across the region and is unlikely to dissuade domestic manufacturers from making use of Maputos facilities. Rather than trying to compete with neighbouring states on tariffs, the South African government has decided to increase investment in rail and other associated infrastructure that can help the port sector run more smoothly. For instance, Transnet has been given the task of transferring a greater proportion of South African freight onto the rail network. At present, the lions share of all freight, including container traffic on the key Durban to Johannesburg route, is transported by road. NPA ports, including the container terminals, although it seems likely that the NPA will retain control of those port facilities that are not deemed profitable enough by the private sector. Foreign and domestic companies or consortia will be able to bid but must include participation by black empowerment enterprises. The Durban and Cape Town container terminals are likely to be of most interest to potential bidders.

SOUTHERN AFRICA: PORT DEVELOPMENT

The composition of the South African port sector after concessions remains uncertain. For example, the government is considering making the NPA independent of Transnet, although the latter is certain to retain some role in the industry as the government is committed to integrated port and rail service provision. Whatever happens, one thing seems certain: much greater container capacity will be required across the region as a whole. South Africas trade with the rest of the world has grown rapidly since its rapprochement with the international community and container traffic has risen by around nine per cent annually over the past ten years. The main decision for all those concerned is whether to continue expanding capacity at Durban and Cape Town, or to make the most of the countrys other, less developed port facilities. It is a debate that is unlikely to be settled for some time to come.

Even welcome it
For its part, while SAPO is keen to provide greater container capacity within South Africa, the organisation must welcome the extra capacity provided by ports in other SADC member states, such as Maputo and Dar-es-Salaam, which can act as a safety valve for South Africas own port sector. However, even once their redevelopment is complete, ports such as Maputo and Walvis Bay will not have the capacity of Durban and so are unlikely to be perceived as any real threat.

Tariff policies
It is difficult to predict what will happen to container handling tariffs if and when concessions are awarded, although Transnet increased the tariffs at NPA ports by just 5.7 per cent this year, reflecting lower inflation in South Africa over the past 12 months.

Grindrods double buy

Following up its recent black empowerment deal with Holgoun (last months WorldCargo News, p20), South African shipping and logistics firm Grindrod has made two strategic purchases in an effort to expand its operations. The company followed up the purchase of a 50 per cent stake in Port Elizabeth-based Sheltam Locomotive & Rail Services with acquisition of the commodity trading and shipping operations of USbased Seaboard Corporation. Purchase price has not been disclosed in either case, but Grindrod estimates that the Seaboard purchase will double its turnover to around R6 bill (US$900 mill). A new Grindrod subsidiary, Atlas Trading & Shipping, is being set up to take over Seaboards operations, which primarily focus on exporting South American products to Africa. Grindrods managing director Ivan Clark commented: This acquisition is the beginning of the development of a commodity trading arm within the Grindrod stable and...will complement current shipping operations, particularly Island View Shipping and the logistics division. Sheltam has a range of interests, ranging from servicing offshore marine power plants through operating a fleet of freight locomotives to air charter operations. Clark revealed that Grindrods rising profits had enabled it to embark on this expansion drive. The double purchase comes after Grindrod revealed a 129 per cent rise in profits last year to R549 mill, on the back of a 52 per cent increase in revenues to R3 bill. Laurence Stuart-Hill, Grindrods landfreight director, pointed to a further advantage of the expansion programme. The acquisition of a 50 per cent stake in Sheltam provides Grindrod with a good opportunity...to progress any rail privatisation and concession opportunities in Southern Africa. Rail business goes hand in hand with Grindrods strategy of owning the complete supply chain. Following on from its plans to offer port concessions, the South African government has begun to consider the possibility of offering private sector companies the opportunity to manage the countrys railways. Grindrod also recently purchased a 72 per cent stake in African Portland Industrial, which controls the Maputo and Walvis Bay coal terminals. Sheltams rail interests include a number of coal haulage contracts

Fixed term deals?

The government is also concerned about how to proceed with the reform of the countrys port sector. Pretoria still hopes to offer fixed term concessions to manage most facilities at the

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EASTERN MEDITERRANEAN/RED SEA: PORT DEVELOPMENT

WorldCargo news
the first phase of which has been operational since 2002. Phase One has now been completed and, says a spokesperson for the port, attracted a number of investors eager to use the port as their operational hub for Europe, the Middle East and Asia.Development of the port, he added, will continue beyond 2020, based on the original master plan. In the wider region, Sokhna fits as a nodal centre with a perfect location, with no deviation, in one of the busiest trade lanes in the world. The port is also capable of handling almost any kind of cargo and offers most of the ancillary services that relate to the shipping industry. SPDC is mainly owned by ECHCO, a joint venture of OCI and the CEO/president of SPDC, Al Sharif, while AIG recently took a 15 per cent stake in the venture. The US$500 mill required to develop the first phase was provided by the government and SPDC. Both Port Said and Sokhna are being developed, at least in part, to encourage export-orientated businesses to set up in the area.The 9000-ha Suez Special Economic Zone (SSEZ) at Sokhna is divided into four areas, each of which is being developed by a joint ven-

Mixing the new and the old in Egypt

During the 1990s, Egypts ports were operating at almost maximum capacity and the gover nment faced a stark choice: build new ones or rapidly increase capacity at existing facilities at Alexandria/ El Dikheila, Damietta, Port Said, Safaga and Suez. As part of its ambitious plans to open up new areas of the country for industrial and residential development, the government largely opted for the former path and the new ports of Sokhna and Port Said East have become the centrepiece of its policy. An ambitious construction programme was embarked upon at the same time as the government made a subtle change to economic policy. nation of public and private sector investment. it an attractive proposition for all shipping lines.

Pearl of the Med

Suez Canal Container Terminal (SCCT), located at the new Port Said East port at the northern end of the Suez Canal, is one of the biggest port developments in the Mediterranean.The project is part of a much broader plan to develop the Gulf of Suez region and a 150 square km parcel of land around the port has been set aside for industrial development. Businesses able to make the most of Egypts gas reserves, such as petrochemical plants and energy-intensive industries, are particularly encouraged to set up business in the area. A consortium including A P Mller subsidiary Maersk, ECT International and public and private sector Egyptian interests was awarded a 30 year contract to build and operate the Port Said East facility. Construction work on SCCTs container, liquid cargo and general cargo terminals began in 2002 and the port finally commenced operations last October - two months after APM had increased its stake to 60 per cent by buying out ECTs stake. As elsewhere in the country, a combination of public and private money is funding the port development and the government is financing the associated road and rail links. SCCT currently has four berths along 1200m of quay, with a depth of 16.5m alongside which can be increased to 17.5m. Currently it is equipped with five Noell superpost-Panamax gantry cranes, to be joined by two similar size cranes from ZPMC this August. Up to five more cranes could be added within 2-3 years.

Enter Sokhna
At the opposite end of the Suez Canal, the new port of Sokhna fulfils a similar role at the heart of the Suez Special Economic Zone (SSEZ), a huge area of industrial and residential development to the east of Cairo. In 1999, Sokhna Port Development Company (SPDC) was awarded a 25 year concession to construct and operate the port,

Different approach
Until relatively recently, Cairo planned to follow the standard IMF medicine of transferring control of infrastructure from state-owned organisations to the private sector. Although it has lifted the states monopoly on providing port services, it has opted to revitalise the existing ports through a combi-

Private sector scores in Turkey

TCDD has for a long time been on the list of major Turkish state economic enterprises (known as KITs) which are planned to be privatised, but the railways rather than the seaports seem to be the main priority., although some former TDI ports have been sold off (eg Trabzon, Rize and Hopa). Pr ivatisation of the seven TCDD ports is still on the agenda, but there are no recent developments. TCDD is the biggest money-losing KIT, and aims to earn up to US$500M/year by leasing out more than 900 train stations to the private sector. to increase capacity to more than 600,000 TEU/year on completion of the works by mid-2006. Marport claims to have been the first Turkish port operator to install Navis terminal operating software and Marport West is being fully-integrated into its IT network which includes Navis Express and Sparcs modules. This year Marport has reached some new milestones. In February it handled its 6000th ship call and the ship in question was the biggest yet to berth at any Turkish port - the 6750 TEU capacity MSC LUISA. The company also handled its 3 millionth TEU this year, an MSC container.

Success story
Pressure on TCDD ports has been eased by the very success of Turkeys private container and ro-ro port operators. One of the prime examples is Marport, which is now handling about 25 per cent of Turkish lo-lo container traffic. Throughput at its three terminals in Istanbuls Ambarli port complex doubled between 2001 and 2004 to reach 770,000 TEU last year. The number of ship calls made annually has actually fallen, as the terminals handle bigger ships making more moves per call. Arkas port operations at Ambarli started up in 1996 as Limar Kumport. Since last August this has been known as Marport East Terminal and some 308,000 TEU were handled at the facility last year last year. Marport Main Terminal was set up in 2001 when the group acquired Armaport.The terminal handled 316,000 TEU last year and its annual capacity has been increased 650,000 TEU/year In 2003 the Soyak Readymade Concrete wharves were acquired and renamed Marport West Terminal.Together the three terminals have an installed capacity of around 1.15 mill TEU/year but this is being further increased with ongoing modernisation and extension of Marport West. From a low base of 35,000 TEU in 2003, traffic at Marport West increased to 146,000 TEU last year and the area is being extended from 13.5-ha to 37.4-ha

More cranes coming

Up to now Marport has relied mainly on harbour mobile cranes for ship work, but last year three cranes from Noell China were installed at Marport Main, with 10 RTGs in the yard. On order now are 15 RTGs from Gulf Port Cranes in Abu Dhabi, of which nine will be installed at Marport West and six at Marport Main. TCDD ports handled 1.66 mill TEU last year, of which almost half was at Izmir. Throughput at Mersin grew almost 14 per cent to 532,000 TEU and the recovery at Haydarpasa continued, with throughput up almost 30 per cent at 317,000 TEU. For the first five months of this year, TCDD is reporting a combined port throughput of 704,000 TEU, led by Izmir (314,00 TEU), Mersin (249,000 TEU) and Haydarpasa (140,000 TEU). A good share of the throughput is actually in the hands of private operators. Two years ago Arkas group reached important agreements with TCDD enabling it to deploy harbour mobile cranes in Izmir and Mersin on ships it represents through it liner ship agency side. These cranes are operated by another Arkas daughter company, Limar Port & Ship Operators SA. Limar is understood to have handled almost 380,000 TEU at Izmir last year and almost 157,000 TEU at Mersin.

Transfer from west

Traffic includes containers from the Far East transhipped for destinations in the Eastern Med/ Black Sea. Previously Maersk Sealand hubbed off MCT Gioia Tauro but can knock up to three days off transit time by using SCCT as the transhipment port. The Eastern Med/Black Sea is the fastest-growing region for container traffic in the Mediterranean and the fact that SCCT means no deviation from Far EastEurope trades via Gibraltar makes

Marport has reached two milestones this year - it handled the biggest ship yet to call any Turkish port, the 6750 TEU MSC LUISA, and its 3,000,000 TEU

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WorldCargo news
ture between Egyptian and foreign companies. Power, water and transport infrastructure in is place even before tenants have signed up for land. In line with regulations at all other special economic zones in the country, companies operating within the SSEZ have been given a 10-year tax holiday. Within the special economic zone, there is a bio-diesel plant, which will produce vehicle fuel from vegetable oil, and a methanol refinery, while Australian firm Magnesium International is developing a magnesium refinery and Tate & Lyle a sugar refinery. Looking ahead, an aircraft engine repair facility and oil refinery are planned, contributing to the US$2 bill of foreign direct investment (FDI) that has already been committed to the scheme.

EASTERN MEDITERRANEAN/RED SEA/BLACK SEA: PORT DEVELOPMENT

Alexandria and El Dikheila general cargo terminals into container terminals and then manage them. Under the terms of the contract, AICT is required to modernise facilities at the two ports. New quays lengths of 380m at Alexandr ia and 560m at El Dikheila will be put in place with a depth alongside of 12m at both locations, while AICT must also tackle the problem of El Dikheilas insufficient breakwater. As previously reported (WorldCargo News, March 2005, p1), AICT is owned by a consortium of Hutchison Port Holdings (HPH) and Egyptian and Saudi interests. HPHs group managing director John Meredith said that AICT will enhance the role of Alexandria and El Dikheila ports as the centre of trade in the Mediterranean Sea. HPHs global network will be further strengthened with our presence in the region. Feeder Terminal Company Company (DFTC) was set up to offer container handling services mainly, as its name implies, to feeder ships and barges in Damietta.The company expects to begin operations in the first quarter of next year. DFTC is a public/private consortium of Damietta Port Authority, Egytrans, Mahoney Shipping & Marine Services, LATT Trading & Shipping Co and Egyptian Feeder Services Co. During the first phase, says shareholder representative Eng. Mohamed Hassan Abdel Kader, DFTC will operate quays 5 and 6 which together are 400m in length and have a draft alongside of 12m, as well as some 40,000 m2 of the CY. Earlier this year a new management information system based on EDI was introduced at Damietta. In addition, the ports entry road and three warehouses have been overhauled to improve access and increase storage capacity and a CCTV system has been fitted at the truck gates.

One basin ready

At the port itself, one basin has already been completed, while further phases based around three additional basins will be developed as and when demand increases. SPDC hopes to complete the second and third basins by around 2010, so that additional container, dry bulk and general cargo terminals could be in place within five years. If all goes to plan and the subsequent phases are developed as forecast, there will be over 12 kms of berthing by 2020 and 100 trains a day will serve the port. The port handled 245,000

A P Mller group has a 60 per cent stake in the Port Said East facility TEU of container cargo last year, more than double the 104,000 TEU forecast in the original plan. The agri-bulk terminal is up and running, while construction work on the liquid bulk terminal is ongoing. SPDC is budgeting for a throughput of 20 mt this year and forecasting 45 mta by 2010 and 90 mta by 2020 - the latter to include > 4 mill TEU of containerised traffic and 1 mt of breakbulk general cargo, along with 30 mt of liquid bulk, 10 mt of agri-bulk and 10 mt of other dry bulks. The International Finance Corporation, part of the World Bank, has provided a US$20 mill loan to SPDC. Francisco Tourreilles, director of the IFCs infrastructure department, says: This project will have a significant development impact for Egypt, not only through the provision of efficient port services, but also by transforming Egypts port sector through the introduction of private competition. However, to add one word of caution, Sokhna is obviously highly dependent on the continued growth of the Egyptian economy and on sustained government support. Successive administrations in Cairo have supported the concept of expanding the inhabited proportion of the country from the current 4 per cent of the land that comprises the Nile Valley and thin coastal strip including Alexandria. However, if the economy was to suffer over the next few years, the expensive and ambitious plans for the SSEZ could be reined in. The private sector is providing much of the investment required to develop the port and associated industrial developments but government participation in funding the nuts and bolts of the scheme - from transmission links to roads and sewerage pipes - is vital to the success of the project. Sokhnas big advantage is that it is a greenfield site with plenty of room for development, but most established ports, such as Alexandria, are hemmed in by the surrounding city. Sokhna is also said to be the first Egyptian port to provide fully automated customs clearance.

Constantza barge service

The first regular container barge service on the lower Danube has begun with Bulgarian River Shipping Company running twice/ month between Constantza and Belgrade, using an 80 TEU barge. Frequency should increase when Budapest is called, following a deal between Mahart Freeport Budapest and GEN Shipping. Last year inland traffic moving between the Romanian ports of Constantza, Midia and Mangalia and the hinterland rose by 18 per cent to 11.5 mt. To sustain this growth and improve navigational conditions for inland waterway vessels, the Constantza port authority (MPA) is developing a new barge terminal for around 24.6M (US$32M), with a new 2200m long dedicated barge mooring dedicated quay and a new basin to hold pusher barges and tugs. As previously reported (WorldCargo News, November 2004, p13), the EBRD is providing the MPA with an 8-year soft loan of 16M towards the barge terminal project. According to the MPA, this is the first loan in Romanias transport sector without a state guarantee. The MPA reports that overall container traffic reached almost 387,000 TEU last year, almost doubling the 2004 volume of 204,000 TEU.The new container terminal financed and equipped from Japan came on line in 2003 and Dubai Ports International (DPI) was awarded an 18-year contract to run it, taking over control of the facility in April last year. DPI says it will build up capacity ahead of demand.Already the terminal has been augmented with two HMK 300E Gottwald harbour mobile cranes. Constantza is well-placed to act as a regional hub for the Black Sea region, by reason of its size, water depth and potential gateway rle for central/south east Europe at the head of the Pan-European Danube corridors (VII -waterway, IV - road and rail).This traffic flow would also attract discretionary transhipment containers.

Damietta Feeder
Changes are also underway at Damietta. Last month Damietta

Alexandria deal
In March this year, in an effort to regenerate Alexandria, which continues to handle more cargo than any other Egyptian port, the government awarded Alexandria International Container Terminals (AICT) a contract to convert the

Gottwald Port Technology recently delivered its very first mobile harbour crane to Bulgaria, a top-selling 100t capacity HMK 300 E to the fastgrowing Port of Varna.The crane will be used mainly to handle containers in the ports Varna West facility The inauguration was attended by, among others, Nikolay Vassilev, Bulgarias Deputy Prime Minister and Minister of Transport and Communications (first left), Danail Papazov, executive director of Port of Varna plc (third from right) and Peter Klein, head of marketing at Gottwald (second from right)

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SHIPPING

WorldCargo news

Mega-carriers pushing it to the limit

he era of the mega-carrier has dawned in the world of container shipping. In contrast to the 55 box ships with a capacity greater than 7,500 TEU in service, there are 168 such ships on order. Korean yards have secured the lions share of these newbuilding orders, although Japan is beginning to make some inroads into this market lead. Furthermore, the carrying capacity of this current mega-carrier orderbook, at 1.47 mill TEU, is some 331 per cent greater than that of the in-service fleet of such ships. Even the total containership orderbook, at 1,142 vessels totalling 4.39 mill TEU, represents an impressive 59 per cent of the cargo-carrying capacity of the existing containership fleet. The rapid growth in container shipping in general, and the mega-carrier sector in particular, is due in large part to the robustness of the world economy and the emergence of China as a dominant player in global trade. Shipowners are keen to take advantage of the economies of scale offered by larger ships, as competitivelypriced consumer goods made in China find ready buyers in markets worldwide. Containerised shipments, which expanded by 225 per cent between 1990 and 2000, are expected to continue to grow at a similar rate for the foreseeable future.

The rapid increase in the size of container vessels is pushing ship design and construction technology to new limits. Will the industry be able to meet the challenge?
worked from both sides simultaneously. A notable example of this is the Ceres Paragon Terminal in Amsterdam. tainers underdeck as well as on deck.The latest ships are capable of loading 16 rows across underdeck and 18 rows above. However, the stowage of more than 10 At 8,450TEU, P&O NEDLLOYD MONDRIAAN is the largest containership yet built in Japan

Higher and wider

The increase in the beam of ships has enabled the stowage of more rows of con-

Mega-carrier challenges
The capacity of ships able to transit the Panama Canal has risen slowly over an extended period, from 3,000 TEU in the early 1970s to about 5,000 TEU today.The increase in the size of post-Panamax containerships, or mega-carriers, has been much more dramatic, however. The average size of such vessels, which stood at 5,500 TEU a few years ago, is being superseded virtually every year. Earlier this year China Ocean Shipping Co (Cosco) ordered four 10,000 TEU vessels in Korea at Hyundai Heavy Industries (HHI) for delivery between late 2007 and mid-2008. But although declared to be the largest capacity containerships yet ordered, they are not expected to hold the size record for long. Shipyards have designs for vessels of 12,000 TEU and larger on the drawing board and, with the current rush for growth and limited building berth availability, leading shipping lines are expected to be placing orders for such behemoths sooner rather than later. The four Cosco ships building at HHI, which are being classed by Lloyds Register (LR), will have an overall length of 349m, a breadth of 45.6m and a depth of 27.2m. Each ship will be fitted with a 12cylinder, 94,000 horsepower engine to enable a service speed of 25.8 knots. As containerships of such size and power are unprecedented, ship designers and classification societies are working hard to analyse and verify the viability of such ships in terms of fatigue strength, structural flexibility, propulsion systems and behaviour in a seaway. As a result of the need for large deck openings and high ship service speeds, the design of container vessels has traditionally approached the boundaries of what is known to be technically feasible. With ship size now escalating so quickly, this observation is more true than ever before and is necessitating careful study of a range of influencing factors. Quite aside from vessel technical factors, the increase in ship size raises questions over port compatibility, namely is there sufficient depth of water available; are the cargo handling facilities at the container terminal able to ensure that the specified port turnaround times are met; and are the logistics services in the port and its hinterland capable of handling such concentrated volumes of containers? In fact, the main container transhipment ports have adopted a proactive attitude by preparing for ships with a beam of up to 50m and a draft of 14.5m well in advance of such vessels entering into service. In addition, several terminal operators have considered a range of concepts to enable their facilities to handle the new generation of mega-carriers, including indented docks that enable the ship to be June 2005 21

WorldCargo news
vertical tiers, of containers below deck is not possible because the loading limits on the container at the bottom of the stack are not permitted to exceed 346 tonnes. This puts the focus on the potential for loading more containers on deck. Although containerships in service carry more boxes in their holds than above deck, it is possible that almost 60 per cent of the containers to be carried by the new generation of mega-carriers will be stowed on deck.This, in itself, poses new challenges, not least by the strains imposed on cargo securing systems by a large ship piled high with boxes sailing in rough weather. Indeed, weather conditions have proved to be a more critical factor than originally envisaged due to the observation of a growing number of rogue waves of unprecedented height in recent years. In addition, the sea states upon which earlier generations of ship designs were based are deemed no longer to be representative of the rougher sea conditions being encountered. A number of incidents in recent years in which large container ships sailing in the Pacific have suffered parametric rolling - the sudden and unexpected violent rockThe percentage of containers stowed ondeck is growing along with the increase in ship size ing of the ship between port and starboard in following and headsea wave trains - bears testimony to the power of the sea. In all the incidents cargo damage was extensive and crew were injured. Another consideration is the load per container. Studies by the Port of Hamburg have shown that the weight of goods carried per container has increased by 10-15 per cent over the past decade, the actual percentage depending on whether it is an export or import box and whether it is a 20ft or 40ft. mation of the deck plating at the port and starboard sides of the vessel by a significant 17 per cent. Containerships utilise thicker steel plate than any other commercial vessel, with thicknesses approaching 80mm in way of the hatch coamings for some of the larger ships. Although plate of this thickness requires care when welding, it is necessary to provide the required degrees of strength and stiffness in the hull structure.

SHIPPING
ters, existing engines continue to suffer from the build-up of soot in cylinders and exhaust systems as a result of long periods of lowload operation. Weighing up all these factors, it appears that future container ships above 10,000 TEU will be specified with twin diesel engines and propellers.Although the capital cost, fuel consumption and daily operating costs of twin-screw ships are greater than those of a single-screw vessel, their productivity is also higher. Speed will be the key factor. If a shipowner is happy with a service speed of 23 knots, then he will be able to make do with a single engine and propeller, even for a ship of up to 12,500 TEU. If 25 knots is a requirement, then so are twin propulsion systems for ships over 10,000 TEU in size.

Propulsion options
need to cope with greater torsional loads has presented particular challenges.The main focus has been on the hatch corner stresses caused by torsional deformations and on the relative displacements of the hatch covers to each other and between the hatch cover and the coaming. In response, the alteration of a range of structural design parameters has been considered in order to control the extent to which the hull may flex while the ship is underway with a full cargo. Studies carried out by naval architects at classification society Germanischer Lloyd (GL) have found that by increasing the distance between inner and outer hulls from 2m to 2.8m on the large post-Panamax ships, the maximum relative deformation of the deck structure can be reduced by 15 per cent. These deformations are also sensitive to the depth of the transverse box girder, but altering the double bottom height was found to have only minor influence on deck deformations. Another option considered by GL is to introduce a 20ft long deep tank about one-quarter of the ship length back from the bow. Such an arrangement has been found to reduce the maximum relative deforThe largest 12-cylinder slow speed diesel engines currently available have maximum power outputs of about 100,000 brake horsepower. This is sufficient to power the largest mega-carriers ordered to date at speeds of up to 25 knots, the established industry standard for containerships.The healthy freight rates currently being earned by these vessels helps underpin the need for high service speeds. In addition, the introduction in recent years of a new generation of common rail engines, with their electronic control systems, has helped improve the efficiency and performance of large diesels when running at slow speeds. Major marine diesel engine builders assure the industry that it is possible to provide propulsion units with even higher power ratings by either adding more cylinders or increasing the bore of the cylinders. As there is some reluctance on the part of licensee engine builders to retool their production lines to provide cylinders of larger diameter, it appears likely that industry will favour the additional cylinder solution. Additional cylinders will boost the weight to what is already a very heavy engine. As a result, designers will need to be ensure that the interaction between the hull and the diesel power plant is not such that it excites vibrations in the ship still further.

Design solutions
As a result of the increased number of boxes, the greater cargo loads and rougher sea conditions, hull flexibility and the associated deformation of the deck plating and its supporting structure are the most critical factors that designers are having to confront when scaling up ship size. In general, designers have been able to cope relatively easily with the need for greater levels of longitudinal strength . However, the

Power for reefers

When considering the ships power requirement, designers must also consider the increasing number of refrigerated containers being carried. Some of the larger containerships today are designed such that up to one-third of the containers they carry can be reefers. As an example, a container ship with plugs for 1,000 40ft reefer containers would need to be able to guarantee an auxiliary power supply of 16,000 kW for the reefers alone. Containerships carrying significant complements of reefer boxes must be fitted with a safe and efficient power distribution system to ensure an adequate electric power supply. Medium voltage systems have become the standard for this task. Another design factor to take into account with reefer containers is bulkhead design, namely that bulkheads be configured in such a way as to optimise the potential for adequate cooling and ventilation of the hold space.

Focus on propellers
It is envisaged that any such vibration problems can be overcome and, with the possibility of increasing engine power output proven, attention then switches to the ships propeller as the limiting propulsion system factor. The largest containership propeller yet built weighs 102 tonnes and is 9.1m in diameter. This is believed to be nearing the upper limit of what is feasible due to the draft restrictions in many of the hub ports. Even though there may still be substantial clearance between the screw tip and the seabed, a large propeller turning at speed can stir up considerable bottom sediment in its wake. Such large propellers also have to be carefully designed to establish the correct balance between optimum efficiency and tolerable cavitation. Cavitation is a phenomenon that can cause erosion of not only the propeller tips and leading edges but also the ships rudder. Although the new common rail engines are now enabling engine speeds to be reduced sufficiently to ensure compliance with admissible speeds in pilotage wa-

Future is bigger still

The class societies active in the containership sector have carried out extensive research on the next generation of mega-carrier - the so-called ultra-large containership (ULCS) of up to 12,000 TEU and even larger. They conclude that, although working near the upper reaches of current technology and allowing for the design challenges entailed, such ships are feasible within the constraints of industry knowledge today. Containerships of this size would be the largest such vessels to be able to transit the Suez Canal fully laden. LR has found that a twin-screw 12,500 TEU ship sailing at 25 knots between Asia and Europe will yield savings of 20 per cent in transportation costs compared to todays container-ships. These savings increase to 30 per cent if the 12,500 TEU ship sails at 23 knots and is powered by a conventional single engine and propeller. With savings like these and the mega-carrier era having already achieved a momentum that looks unstoppable, it is only a matter of time before the first Suezmax container ship is ordered.

Designers of container securing systems are reappraising the load limits of the equipment they offer as a result of the escalation in ship size

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WorldCargo news
why should Rotterdam be any different? Another problem is frequency. Bundling shortsea and feeder traffic would help, but is difficult as the markets have different drivers. [However, look at the new possibilities at Zeebrugge - ro-ro and Maersk and CMA-CGM deepsea].An increase in common feeder services would also help, but this would require more cooperation between the deepsea operators. Successful feeder operations today include coastwise services linking Felix-stowe with Grangemouth and Southampton with Clydeport. There may be scope to expand domestic operations but in due course the AngloScottish services may be affected by Scotlands own deepsea port ambitions. The Scottish Executive is backing Hunterston and Scapa.

Coming up with a decongestant

Achieving modal shift from road to water is a difficult and frustrating job. The EU spends millions of Euros on grand schemes such as Marco Polo, Coastlink Networks chairman David Cheslin has commented, but cant remove simple obstacles to shipping like delays to container barge shuttles between Rotterdam and Antwerp caused by nuances of Dutch and Belgian customs, or feeder ships having to pay pilot charges every time they change berth in Antwerp. Cheslin was responding to remarks made by Erik Petersen of Unifeeder at the second annual Coastlink conference, held recently in Newcastle-on-Tyne.The EU is keen to encourage modal shift and shortsea and feeder operators continue to assert their suitability for such a task, but there is no real co-ordination. One of the big themes for Coastlink has been the overconcentration on Felixstowe and Southampton and the need to decongest these ports and the road network by relying more on outports. However, feedering from the continent is not an adequate response on its own. For one thing, as Petersen graphically illustrated, Rotterdam, which touts itself as the port for the UK and incentivised it by absorbing the cost of the rehandling, has been seriously congested and the problems are compounded because nearly all the major shipping lines are missing their berthing windows and feeder operators are pushed to the end of the queue.

Great Britain needs more deepsea container port capacity. But putting it all in the south east is not the answer
tainers go north, the cargo is devanned, warehoused and restuffed to trailers which go south, empty trailers then go north and empty containers go south. Common sense, it seems, has gone west! From Teesport, a container haulier can cover the growing Leeds market with three round-trips/day but he will be lucky to get one in from Southampton or Felixstowe. Container hauliers face serious problems., with costs rising and a shortage of drivers. There is hardly any slack in intermodal rail, and it certainly cannot absorb a big shift from trucking as network capacity is not there. As the Heinz case illustrates, feedering is not the answer for everybody, but there is also evidence of feedering being dis-

couraged by some deepsea carriers. One line, for example, is understood to have told receivers in north England that if they opt to land a container in Rotterdam and have it feedered to Teesport or Hull, they have to bear the cost of repositioning the empty back to Rotterdam.

Strange if true
This is strange because shipping lines build the cost of positioning the empty back to the port into the headhaul charge. If a container is trucked up from Southampton or Felixstowe, the receiver does not pay to have the empty taken back, so

The B & Q effect

A shipper which broke the mould is B & Q (WorldCargo News, May 2002, p12) and today all of its deepsea containerised imports for the UK DIY market are feedered through Humberside, but this logistic solution is not for everybody. Steven Cox, H J Heinz Ltds global shipping manager, said that he would like to book deliveries four or five weeks in advance, but the lines are reluctant to book more than a week ahead because they cannot guarantee when the ship will arrive. But if Heinz then opts to land the container on the continent, it has an extra wait for a feeder to bring it to the UK. Normally frequency is two or three times/week, but a haulier can be booked at one hours notice to pick up a container from Felixstowe or Southampton. In contrast, however, John Foord, representing both JSA and China Shipping, remarked that the situation at these ports is so bad that if you want your container delivered tomorrow, call last week, while David Petchey of MSC (UK) admitted that it is quicker to serve West London from Bristol than from Southampton, despite Bristol being further away.

Deep thinkers
Britain certainly needs more deepsea capacity. Up to now most of the focus has been on Hutchisons Felixstowe South and Bathside Bay projects and P&O Ports Thames Gateway scheme, but at least one of those and perhaps two will likely go the same way as Dibden Bay. Port operators such as Teesport and Bristol are asking a legitimate question why does deepsea capacity have to be concentrated in the south east, the most crowded part of the country where congestion is endemic and set to get worse. Whether Bristol succeeds in its ambition (see pXX) remains to be seen, but the port seems well-placed to serve the English Midlands, which according to Bristol Port Company, account for 30 per cent and 18 per cent of container import and export points respectively. The case being presented by Teesport also seems persuasive. According to the ports general manager Nigel Chew, more than 2 mill TEU/year of GB container traffic has O/D points north of the Midlands, but nearly all of it is trucked up from the south. Most national distribution centres (NDCs) are located in the north, owing to cheaper land and labour, less congested roads, etc.

Gone west
Of course, much of the cargo in the containers is bound for the south. Full conJune 2005 23

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CARGO HANDLING

Shaping up for Tier 3/Stage IIIa

EU stage IIIa and US-EPA Tier 3 emission regulations for off-road mobile engines in the 130-560 kW power output range come into force next January.A number of new engines have been introduced and accepted by OEMs whose products cover the full range of non-road mobile machinery (NRMM) used in ports, scrap yards, quarries, farms, etc. Compared to Tier 2/Stage 2, there are no changes in CO and PM limit values (3.5 g/kWh and 0.2 g/kWh respectively).The target is a significant reduction in NOx and non-methane hydrocarbon (NMHC) emissions combined to 4.0 g/kWh from 7.0 g/ kWh under Tier 2.

Off-road engine emission standards will move one step closer to road norms next January
dler. It is more powerful, too, with an output of 257 kW (345 hp). It is fitted with electronic controls and Cats EUI electronic unit injector fuel system. Oil and filter change intervals have been extended to 500h, but operators need to be aware that this benefit, touted by a number of OEMs for their latest equipment, is dependent on fuel quality (sulphur content), quality of the oil (base number) and how the machines are driven The starting point was Scanias modular cylinder concept, explains Lennart Hjelte, senior vice president and head of industrial and marine engines at Scania.The same cylinder concept is used for all engine sizes. This cylinder is being continuously developed and optimised for improved performance and lower emissions. The new 5-in-line engine has double balance shafts for smooth and silent running. It has the same combustion chambers as the 12and 16-litre engines and shares most of the components, such as cylinder heads, pistons, camshafts and unit injectors. Hence parts stock and distribution are simplified as well as maintenance work, which should translate into higher availability and uptime. The DC9 EMS engine, continues Scania, has an optimised combustion process, with four valves per cylinder, centrally positioned unit injectors and EMS. The EMS monitors and processes thousands of pieces of data every second and evaluates the information to adjust injection timing and the amount of fuel injected to ensure optimum combustion and fuel consumption in relation to the operation.The result is improved performance and lower emissions. It also makes it possible to program each individual engine to meet the customers specific demands for engine revs and workload, for example. Measuring 1116mm (h) by 811mm (w) and 1275mm (l), the DC9 EMS is more compact than the 6-cyl. unit it replaces and, with an output range of 177 - 243kW (240 330hp) @ 2200 rpm, is aimed at wheel loaders, FLTs, dump trucks, container handlers, etc. It is robust and has a high torque at low revs which means that it does not need to be revved

Scanias new Tier 3/Stage IIIa DC9 EMS engine design covers an output range from 177 to 243 kW @ 2200 rpm hard to give the desired performance, says Hjelte. The engine is available as Stage II-compliant. Scanias 6-cylinder DC12 EMS series also complies with Stage IIIa/Tier 3. This 1491mm (h) by 1154mm (w) by 1716mm (l) engine has an output range of 243 - 330kW (330 - 450hp) @ 2100 rpm and, like the DC9 EMS, can also be supplied with Stage II compliance for non-US or nonEuropean markets not covered by the new emission limits per cent of demand) in particular for container handling equipment and genset demand (39 per cent).

Scania 9-litre
As previously reported, Scania has added a 5-cylinder unit with a swept volume of 9 litres (DC9 EMS) to its modular range of Tier 3/Stage IIIa-compliant engines. The turbo-charged, chargecooled (air-air), 4-stroke diesel engine has unit injectors and Scanias electronic EMS (engine management system).

New Cat
One new Tier 3/Stage IIIa compliant engine is the Caterpillar C13, as fitted to Cat materials handlers and derivatives such as hydraulic cranes.This has a displacement of 12.8 litres, 21 per cent more than the engine it replaces in Cats own 345C materials han-

OEM switching
Competition between engine makers is the name of the game and one OEM customer of Scania, SMV Lifttrucks, is switching to Volvo Penta for its medium range of B series FLTs (10-16t) as well as well as its dedicated ECH mast trucks and ECH reach stackers. It is, however, staying with Scania (DC12 EMS) for its heavy lift trucks and reach stackers. The trucks scheduled to be switched typically operate at the lower end of the Scania 9-litre engines power output spectrum and the 6-litre Volvo Penta TAD 620 VE and/or the TAD 722 VE-HT are less expensive. This is the normal web and warft of business.Volvo Penta previously lost some Linde HTD business to Cummins, but hopes to capture some other OEM business from another engine maker for equipment requiring 12-litre Tier 3/Stage IIIa engines.

Compactness
Scanias approach to Tier 3/Stage IIIa, adds Yngve Skog, sales manager, industrial and marine engines, was to maintain engine compactness by focusing on the combustion process, rather than after treatment systems. His point is that emission limit values can be obtained by optimising the combustion process, and there is no need to use EGR or an after-treatment system such as SCR (selective catalytic reduction). The combustion chamber has been modified, the angle of the unit injectors changed and the camshaft improved. However, looking ahead to Tier 4/Stage IIIb (scheduled for introduction in January 2011), setting sharply reduced limit values for NOx and PM, engine makers have made no secret of their view that EGR and after-treatment systems will have to play a key rle, alongside even better injection control and higher pressures. The feasibility of Tier 4/Stage IIIb depends on availability of low sulphur fuel (< 10 PPM S) in NRMM markets. Otherwise EGR will be counter-productive and PM values will increase. Scania has previously drawn attention to the fact that NRMM is moving closer to road standards and eventually the difference will reach vanishing point. For the post-2014 environment, Scania mentions HCCI technology (homogenous charge compression ignition), fuels between petrol and diesel, premix, etc.

Buoyant Penta
Last year Volvo Penta sold more than 2000 engines for container handling equipment, not counting big engines for RTGs, says Tim Davis, the companys business manager, European material handling applications. Notable deals included supply of 35 9-litre TAD 942 VE engines rated at 250 kW to Gottwald, in connection with a new order it had for AGVs from ECT Rotterdam. Underscoring the point that OEMs are passing on customer demands for higher uptimes and more operating hours from the equipment, the AGVs have an average annual workload of 5500h. Other recent orders include one from Kalmar for 16-litre engines to power the 29 E-One RTGs it is building for GTI Nhava Sheva. Most ofVolvo Pentas OEM customers are based in Europe, but European customers often specify Volvo Penta engines from other OEMs. All the ZPMC RTGs at Felixstowe, for example, have Volvo Penta engines. This port has also been re-engining older RTGs with Volvo Penta engines for the past five years.

Record year
Last year Scania delivered a total of 5014 engines for industrial and marine applications, compared to 3165 in 2003. This all-time high was achieved because of the strong growth in industrial demand (32

Particle filter fitted to a Kalmar TRX-252 ro-ro tractor (246 kW engine plant) headed for Gteborg. PM limit values are not changed by Tier 3/Stage IIIa

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WorldCargo news

Cranes motor on with new drive controls

In the next two years, US container port activity is expected to grow between six and eight per cent each year. In many US deep water ports, container cranes 20 to 25 years old have lost some of their original productivity and can no longer accommodate the anticipated growth.These older cranes utilise a variety of motor drive systems, including motor-generator (MG) sets and early solid-state silicon carbide rectifier (SCR) drives. Some ports are investing in new cranes. Others, concerned that shipping will slacken off in a few years and leave them with idle capacity and large debts, are upgrading hoist, trolley and other functions on older cranes with digital controllers, in order to obtain an extra 510 per cent productivity. Because many drive manufacturers no longer support older equipment, ports such as Houston must find other sources and ways to get the desired productivity increases without massive expenditures for new cranes. Six of our ten cranes at Barbours Cut are more than 20 years old, and its reasonable to assume that they are going to be here for the next five to ten years, remarks Paulo Soares, maintenance manager, Barbours Cut container terminal, for the Port of Houston Authority (PHA). All the analog MG drives were discontinued by the manufacturer many years ago and replacement parts are scarce.

Partial retrofit of six container cranes operated by the Port of Houston with the latest digital controls and diagnostics preserves existing motors, generators and power equipment and increases reliability and productivity for fast payback*
ston Port Commission that the analog drive control systems on five of the six * This article was prepared for WorldCargo News by Barry W Wiles, PE, industry manager, cranes, Avtron Manufacturing, Inc, Ohio, with support from Robert Svec older cranes be upgraded.. Simultaneously, a newer container crane at the PHAs Turning Basin Terminal also needed a drive system upgrade to its early solidstate DC drive and PLC, and it was included in the proposal process. Among the offers received was one from Avtron and Damas that proposed keeping the existing motors and generators, along with the associated power equipment and wiring, and replacing the original motor and generator field controls with modern digital technology. The joint proposal also

contained a maintenance software package that provides troubleshooting diagnostics and remote monitoring.

Best value
During the proposal evaluations, Soares and other PHA staff visited the drive manufacturers US plant, and a container terminal in New Jersey where the proposed hardware and software were already in service. As it turned out, this proposal offered the best value to the PHA. It was fairly reasonable in terms of price, said Soares, so thats what we went with.

Board walk
Soares crew has been sending the original boards out for repair, but there are only so many times that a board can be repaired without experiencing reliability problems.Going with a full retrofit with new motors, gearboxes and drives, continues Soares, would cost an ungodly amount of money.You might as well buy new cranes. Situations such as Houstons have created opportunities for companies like Avtron Manufacturing, which has developed digital drive control upgrade equipment specifically for such applications, and system engineering partners such as Damas Corporation, based in Alabama. Damas has 20 years of crane and port experience and has the ability to apply this equipment to older cranes.

Barbour shop quintet

To save his otherwise serviceable equipment, Soares recommended to the Hou-

Houston cranes - old panel (above) and new panel compared

June 2005

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WorldCargo news
Maintenance personnel at the Turning Basin Terminal agreed. They recognised that having common hardware and software suppliers ensures parts interchangeability as well as a unified source for product support. The PLCs, also furnished in panels, only provide logical evaluation of the operator inputs, limit switches, hard-wired permissives and so on and tie the diagnostic software to the controller system. The crane monitoring and diagnostics system includes two software packages and an Ethernet radio link.The CraneView Diagnostic software, installed on each crane, links the cranes drive and PLC systems, providing real-time data viewing, alarms and data trending. It incorporates a graphical user interface on an easy-touse touch-screen computer. The RemoteView monitoring system, installed on a supervisory computer in the maintenance building, can access all five onboard systems via the radio link. This allows maintenance personnel to monitor real-time performance data for each crane without actually climbing the crane. Internet access allows the drive manufacturer and the integrator to assist in troubleshooting anywhere in the world. time have resulted at Barbours Cut. Drive problems are much easier to troubleshoot and repair because obsolete, difficult-to-repair equipment has been replaced with latest technology controls. Replacement parts and support are readily available. After replacing the drive controls, the cranes are more reliable and provide the maintenance personnel with specific information and alarms that are very helpful for troubleshooting, says Soares. Before, you had to get a meter and a bunch of drawings and try to find the problem. The five upgraded cranes can also now be operated at the originally designed acceleration/deceleration rates and speeds, with the capability to handle as many as 40 moves/crane hour. As far as Soares is concerned, the upgrade was a success from beginning to end. Maintenance personnel like the drives and have become familiar with them and the operators are satisfied as well.

CARGO HANDLING
up assistance from the integrator. Soares anticipated about 100 days for engineering and procurement of the drives for each crane, and about 20 calendar days for the installation of each crane. He was most concer ned about losing crane availability during the installation phase. When we took them out of service for the actual installation, the clock started running. But everything was right on. Marvin Sikes, assistant maintenance manager at the Turning Basin Terminal agreed. We had minimum downtime. In fact, we were able to work it in between ships.The Bardella crane was out of service for approximately 10 days, during which time an older Paceco Portainer was used. At both terminals, the integrator returned after start-up to adjust reaction times on critical crane functions to accommodate crane operators preferences. Upgrading was completed early this year.

Portainer upgrade
Barbours Cut container terminal has six berths along 6000ft of continuous quay. There are 13 container cranes available, of which three are privately-owned. Of the 10 cranes which are owned and maintained by the PHA, the five that were upgraded are Paceco Portainers with an SWL of 40 LT (40.6 mt). They were originally commissioned between 1977 and 1984 with GE S-21 and Valutrol analog-controlled MG drives for hoist/gantry/ boom and trolley functions. Over the years, as these older cranes aged, productivity suffered from periodic drive breakdowns. Also, crane function speeds, particularly on the hoist function, diminished. The result was fewer containers handled per hour. While Soares technicians had handled most drive maintenance, occasional troubleshooting help

The cranes are back to their original service levels and should give good service for another five to 10 years - achieved at a fraction of the cost of buying new was required, but the port had difficulty finding field engineers with experience of older equipment. Avtron was the prime contractor for the upgrade, supplying most of the hardware, including digital MG set controllers (DMGs) and PLCs, and carrying out the power engineering. Damas handled the control system integration, provided the diagnostic system and did the logic controller programming. The DMG controllers were furnished on new pre-assembled sub-panels. They include special modifications and software to meet specific needs of the port industry and handle the high inductive loads seen in MG set field windings. Embedded 32-bit controllers perform crane control functions like load calculations, speed loops, brake and contactor controls, eliminating the need for any additional control devices.

Cut above the rest

Significant improvements in reliability, maintainability and down-

Turning around
The upgraded Turning Basin crane is a 40 LT Bardella container crane, originally commissioned in 1996 with a Cutler-Hammer GH95 solid-state DC drive and Toshiba PLC. While the crane was still performing up to original specifications, many of the components were difficult to maintain or repair due to a lack of parts availability and knowledgeable personnel. In the upgrade, the original, expensive-to-replace SCRs were kept, along with the motors, power equipment, field wiring and bus bars. An Avtron Firing Module front end was installed in the existing panels in place of the old GH95 equipment. A new PLC, including remote I/O, was installed, along with the same diagnostics and remote monitoring software used at Barbours Cut.

Drawings, training
The original drive system drawings had been marked up repeatedly over the years as components were removed or replaced.As part of the package, the prime contractor provided a complete set of new drawings for each crane, showing exactly what was installed and running when the upgrades were completed. The drive manufacturer and the integrator also provided on-site training for electricians at both terminals. Whether to upgrade or replace? This question will continue to face crane maintenance managers at other ports in the Americas, the Far East and elsewhere as business rebounds. However, if cranes are structurally sound, and motors, transformers and other power components are in good shape, upgrading drive control systems makes economic sense. It affords fast payback and permits the cranes to continue operating at peak performance, assuring continued parts availability and technical support in the future.

Installation process
Installation at both locations was performed by the drive manufacturer, with supervision and start-

50% fuel savings claimed for RTGs

Siemens Cranes has introduced new drive technology for container cranes which, it claims, has been shown in field tests to reduce fuel consumption of RTGs by as much as 50 per cent. Even bigger fuel savings, says Siemens, can be achieved by installing an ultra capacitor (super capacitor) energy-saving module. The company has worked in close cooperation with APM Terminals (APMT) to develop the new regenerative drives. The energy generated through lowering of the load or gantry braking is stored in the drive system and released again during hoisting or gantry acceleration. The design enables most of the energy stored during lowering to be available during hoisting. During extensive field tests with APMT, says Siemens, its socalled Eco-RTG system reduced fuel consumption by 50 per cent, based on the same operating conditions and throughput as conventional RTGs. Siemens background in rail solutions and trolley buses led to the development of the drive system. The concept is used in hybrid diesel/electric traction systems for buses and ship propulsion systems with Duo inverters. The Eco-RTG package comprises the diesel engine, two permanent magnet generators, the motors and Duo inverter units and controls for all drives. Siemens Cranes, based in Holland, belongs to the Siemens Automation and Drives Group in Germany.

Siemens Cranes field-tested the Eco-RTG drives with APM Terminals

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WorldCargo news
could be tricky if the ship happens to be lowering quickly on a rapid ebb tide! Bubenzer has solved this problem through its service brakes. As they are thruster brakes, they can be opened by the crane driver in a controlled way, using his joystick to detension the ropes. This is controlled with a snag load PLC and all signals go directly to the brakes, avoiding the time delay of going via the crane PLC. Bubenzer is fitting its Litec brake discs and the e-brake is combined with its CMB spring force monitoring unit.This is connected to the PLC so if there are any problems (eg with the release gap), they show up quickly and can be addressed.The system is claimed to be basically maintenance-free, requiring only inspection at 2-yearly intervals. A number of patents are pending.

A new approach to snag load protection

What is believed to be the worlds first non-hydraulic anti-snag and overload protection system for container cranes has been launched by Germany-based Malmedie and US crane consultants Casper, Phillips & Associates (CPA) in collaboration with Bubenzer Bremsen. Traditionally snag load protection systems are a problem area for crane operators and crane makers. The long-stroke hydraulic cylinders add mass and take up valuable space.They require considerable maintenance and even then may not work properly when they are needed. But all these problems, it is claimed, could be swept away with the Malmedie couplings and the fast-acting brakes from Bubenzer. In the event of any form of overload the inertia and the driving force of the motor are separated from the hoist within milliseconds.Together with the speciallydesigned brakes from Bubenzer, the reaction time of the system is ultra-fast and, says Malmedie, completed before conventional, hydraulic systems are able to react. MAT Malmedie Antriebstechnik has been making gear couplings, drum couplings, safety couplings and other electromechanical devices for 30 years and they are in widespread use in heavy industry such as slab mills and steel mills. Almost 600 systems are in operation, says the companys owner Dr Rahim Gross, with motors in the torque range from 5000 to 650,000 Nm - much more demanding than even the most powerful container crane hoists (5000-10,000 Nm). that they may have it fitted to two new Kocks cranes currently in build, due for delivery this August and September. Kocks Krane itself has been supportive and helped convert the existing crane. Its director in Bremen Helmut Mittelstdt makes the point that most older cranes are not fitted with anti-snag, but it only needs one snag event to lead to a disaster. After a snag event trips the couplings and fast-acting brakes set, there is still the question of high tension on the ropes and the inability to release the load and this The first application is on a Kocks crane at TCT Hamburg (retrofit)

Chance meeting
Gross continues that in the past two years or so Malmedie has been looking for new applications for its products and by chance, late last year, made contact with CPA in Tacoma, Washington, which saw immediately the new possibilities for the safety couplings in container cranes. But CPA also realised that work needed to be done on the brakes since its investigations showed that when a snag or overload event occurs and the motor is released by the coupling, the time interval to catch the load is extremely critical and should be as short as possible. This is where Bubenzer entered the picture.The usual setting time for its fastsetting, hydraulic, emergency calliper brake is 0.25 secs but the company has now come up with a modified design for the Malmedie application. In the first workshop test, says Bubenzers vice president, sales Christof Lautwein, the elapsed time from the snag event for the pads to touch the disc was just 0.03 secs. Within 0.07 secs 90 per cent of the braking force had been reached and all motion was stopped in less than 0.10 secs (100 milliseconds).

Hamburg job
Malmedie and Bubenzer have already had a retrofit application to work on - a 70 ton (rope load) Kocks crane at HHLAs Tollerort terminal (TCT) in Hamburg. This is a full machinery trolley crane which, because of wheel load limitations, was never fitted with anti-snag, as it would have added 3-4 tonnes to overall weight. However, the full couplings and brakes package adds just 400 kg and takes up hardly any space. The motor shift on the shaft, to make room for the gear and safety couplings, is only 300mm per side. Crucially, says CPAs principal Bill Casper, the crane at TCT was already fitted with ac motors and controls (Alstom). The system is not offered for dc motors because of flashover when high torque is suddenly released. Hence it is being offered only for cranes with ac drives, whether new or retrofit applications. It took just six weeks to design and engineer the system for the crane at TCT and it was installed within four days. It works even better than we expected, says Lautwein, with the e-brakes reaching full force after just 0.06 secs.

More to follow?
The installation has been approved by Germanischer Lloyd and final approval by the German safety authorities is expected shortly.TCTs management has indicated June 2005 27

WorldCargo news

CARGO HANDLING

Consens comes into the picture

A new kid on the straddle carrier block, Consens Transport Systeme GmbH, based in Veitshchheim in Germany, is hoping to have its first machine built by this September, with three more following by the end of the year. The company is also offering crane inspection and consulting ser vices, repair s, maintenance and modernisation and has already booked some business in this field. The Consens name may be new, but the team behind it is very experienced in production, engineering and sales. As previously reported (WorldCargo News, December 2004, p1), the company was set up by a group of former Noell employees. Its three joint managing directors are Helmut Hemesath, Bjrn Riechers and Johannes Mitnacht. Other shareholders include Wilhelm Pfenning (viz: Pfenning Elektroanlagen GmbH) and Bruno Grimm, a Wrzburg-based forwarder. There is no doubt that the departure of figures such as

Straddle carrier operators will find that their choice of supplier is wider than they have been used to
Hemesath and Riechers caused a big shock within Noell and, inevitably, some ill feeling. In the event, Consens began trading in April. It is understood that there are no legal impediments to do with patents, intellectual property rights, breach of contract, etc to hamper Consens from carrying on as any other new business. According to Riechers, about half Consens staff used to work for Noell.The crane service team includes, for example, Gerhard Lang, working with Matthias Kiefer, Peter Hartmann, Thomas Kunz and Wolfgang Tibitanzl. grouping - before Noell Crane Systems was sold to Fantuzzi group and NSM to Konecranes has partially reinvented itself. The deal also gives Konecranes a hand in straddle carriers for the first time, to add to heavy lift trucks and reach stackers (SMV) and its own RTGs, RMGs, shipto-shore gantry cranes, etc. be 350 kW. Maximum travel speed will be 30 kph empty and 25 kph laden. Maximum lift speeds are 25 m/min with empty spreader and 16 m/min with rated load. These values are the same for 3-high and 4-high machines. In both drive configurations, the rope drums are connected to the transmission via a cardan shaft. All the sub-assemblies are the same and a hydraulic or electric motor mounted in the travel girder drives the gearbox. A four-axis steering system, which makes use of short steering rods that are less prone to being bent out of shape, is used. The operator can carry out all functions with a joystick, but can also steer with a mini-wheel if he prefers it.

Malmedie couplings are in widespread use in heavy industry, such as slab mills The system was unveiled at TOC Europe in Antwerp earlier this month and, according to Lautwein, attracted a high level of interest from crane makers and operators alike. One question is what to do about TLS, which is often combined with snag protection. TLS has to be supplied (or at least trim and skew) irrespective of whether anti-snag load is fitted, but it does not have to be hydraulic. Kocks, for example, controls trim by releasing the clutch so the motors on the common shaft turn in different directions. There are various ways to handle list, but, as it happens, the TCT cranes do not need list control as the terminal does not handle small ships.There are also alternatives for skew control (eg from the headblock). CPA says that effective skew control is notoriously difficult to achieve, however it is tackled. For this reason, more operators have elected to use electric-powered TLS linear actuators rather than hydraulics.

Outsourcing
As also previously noted in WorldCargo News, Consens production philosophy is based on outsourcing of fabrication while it concentrates on R&D, design, engineering, quality control, testing and commissioning, sales and after-sales. This is the best way, believes the company, to deliver cost-effective and reliable straddle carriers with the shortest possible lead times. All Consens straddle carriers (Constrads) have an SWL of 60t, irrespective of whether they are fitted with twinlift or single lift spreaders. This capacity gives what Consens calls true twin twenty capability when handling reefers or when a separating centre twin 20 spreader is fitted. The spreader itself would need to be rated to 60t, but if it is not, it is safeguarded from overload through the Constrads intelligent CANbus control system. Because of the extra heavy SWL, Consens recommends that the operator chooses size 18.0025 tyres, but it is also checking out the recently-introduced 480/95 R95 straddle carrier tyre from Michelin, which is sized between 16.00-25 and 18.00-25.

Konecranes link
In a new development, Noell Konecranes GmbH, part of KCI Konecranes, has also become a minority shareholder of Consens, with a stake believed to be above 20 per cent.This means, in effect, that the former Preussag Noell

Cabin focus
The cabin, housed entirely inwith the machine portal, is fitted as standard with air-conditioning. The seat has in-built consoles and pedals. It can be adjusted to suit different driver heights and comfort positions and pivoted through 180 deg with stop positions inbetween. As a further visual aid to the driver, three sides of the cab are made completely from glass (glare- and shatter-proof). As well as 1 over 2 and 1 over 3 straddle carriers, Consens is working on a 1 over 1 design, dubbed SpeedMaster, a 1 over 0 machine called Speedy, steel industry machines for slabs and coils, and an X-Ray portal machine for port security work. These machines correspond to Noell machines - Sprinter, Porter, Coil Carrier, Eagle. Noell itself is understood to be doing considerable work to bring out the 1 over 0/1 over chassis Porter Carrier, which has been in its design box for at least two years.

Light but rigid

The ratio of machine weight to SWL is only 1.2:1, but this is not just a function of the higher SWL, says Consens. It highlights the relatively light, but extremely rigid frame construction.The uprights, top beams and travel beams are designed as bent form box girders. Only the inside face of the uprights, giving the support for the yoke beam, is welded. The structure is so rigid, says Consens, that tension rods are not required, and this improves driver vision and creates more space for components.The yoke beam is fitted at both ends with a special, removable clamp which glides up and down the uprights, to facilitate precise landing. It also helps absorb shock loads The straddle carriers will be 1 over 2 or 1 over 3 with hydrostatic or diesel-electric drive (viz: 63 HS, 64 HS, 63 DE and 64 DE). Because of the modular design principle, most of the components are standardised so, for example, a hydrostatic machine could be economically converted to dieselelectric if there is a change in the environmental requirements of the port.

Industry niches
Consens is also working on a range of straddle carrier solutions for various industrial applications, under the general name of Conlift. In essence these are 4wheel machines (2 driven) with a low-mount cab attached to one of the uprights. They could be used, for example, to transport railway track, steel wire, pipes, etc. Ironically, this is Noells best ever year for straddle carriers, with production set to hit (at least) 165 1 over 2/1 over 3 machines - with the share of ESWs having risen again. In fact, the future for straddle carriers, and derivatives such as shuttle carriers for yard crane systems, is looking bright, because of the unmatched flexibility which grounding (self-buffering) offers. Apart from Consens which has declared its hand, it is understood that Liebherr has been investigating the possibility of introducing a straddle carrier. Liebherr itself says only that a research project is underway in Ireland, although there are some in the industry who think that the project is much more advanced than that.

Almost identical
The machinery deck is laid out almost identically for both types of drive, and the engine powers either two electric generators or two hydraulic pumps and the auxiliary power pumps. In the dieselelectric version, regenerated energy can be stored in supercapacitors and fed back into the system, to save between 11 and 20 per cent on fuel consumption. The engine itself may come from DaimlerChrysler or Deutz, but Consens has an open mind at this stage and other engine options may be offered. Power output will 28

Suppliers welcome
While Liebherrs LRS 645 reach stacker is enjoying some success, this market area is very crowded, while the straddle carrier market has for years been dominated by Kalmar and Noell. However, the Japanese suppliers Mitsubishi and TCM, have never gone away, and CVS Ferrari is also trying to enter the market (or re-enter it if one allows for Belotti).With Consens, and possibly Liebher r, more choice may soon be available. June 2005

CARGO HANDLING

WorldCargo news
figuration does not always lend itself to using both hoists and sometimes the stowage plan prevents it. The interface with the yard is a problem, too. DPA has come up with a tandem trailer, but clearly this cannot enter a normal RTG runway. It is not clear what the increase in productivity has been; or on what percentage of vessels calling DPA has been able to use it; or what percentage of their moves per call. But operators want answers to these questions. It seems that a 50 per cent increase in net productivity is required (?) Finally, because of the difficulties on the ground, side by side handling may encourage renewed interest in straddle carrier, or shuttle carriers to feed yard cranes. As they are self-buffering, they reduce the risk of the crane being delayed.

Turn the ships around faster

Bromma is extending its Tandem spreader family to accommodate different requirements now and in the future. But there are still many unresolved questions relating to side-by-side lifting
Brommas two existing Tandem models are the telescopic 40/45, as tested by Maersk in Algeciras (pictured) and now ordered by Hutchison (HPH) for a Chinese terminal, and the fixed length 40ft, on trial with Uniport in Rotterdam. The telescopic 40/45 can handle two 20s, or two 40fts or 45fts side by side. SWL is 70t, so the crane capacity on the ropes needs to be about 100t. It can also be supplied without 45ft capability, which saves about 1t in spreader tare (ie to > 23t). The unit for HPH in China will be fitted under an existing ZPMC crane with a capacity of 75t under the headblock. HPH is looking in particular for faster discharge of 40ft empties. The crane at Uniport where the fixed length 40ft Tandem is in use has a capacity of 77t on the ropes. Bromma is aiming this design at terminals handling a large percentage of 40ft containers. way with a separating device under the headblock (going on test soon at APM T, Rotterdam); or the Dubai/ZPMC way, using a twin hoist and two spreaders. Bromma and Dubai Ports Authority (DPA)

are pioneers, but in different ways. Arif Al Dehail, a DPA director, spoke

about experience to date at Jebel Ali at TOC earlier this month.The vessel con-

Two more coming

In the pipeline from Bromma is the Tandem separating centre twin 20 spreader, or T45. This will be able to handle all combinations of 20ft, 40ft and 45ft containers, including four 20fts, and separate the 20fts up to 1.5m. Tare weight is 31t and SWL in double twin 20 mode is 2 x 65t, for which crane capacity would need to be 165t on the ropes. Bromma itself concedes that this capacity will most likely prove unrealistic so the 20fts would be rated to 20-25t, resulting in a required crane capacity of 115-135t on the ropes. As an alternative, Bromma will offer the Tandem Quattro. This is also a separating centre twin 20 spreader able to pick up four 20fts at the same time, but it offers side shift on each spreader, for when the chassis or container on the ground is not accurately lined up, and it has a lower tare weight, 24t. It is not able to handle a single 20ft container as it does not telescope into 20ft. It is aimed at terminals handling a high percentage of 40fts and 45fts. If a single 20ft needs to be handled, the Quattro would need to be changed out.

Why it is important
It looks as though side-by-side lifting will become more important in future. Ship length is not increasing in proportion to ship size, so still only 4-5 cranes can be deployed against a ship. But the lines still want fast turnaround times so the cranes will need to be more productive. Double trolley cranes have not done the job, so something else has to. If a high proportion of 20fts has to be handled, side by side lifting is not the answer. Two 20fts can be handled more efficiently using a single, twin 20 spreader. Handling 40fts or 45fts side by side looks much more promising and feasible, particularly as the demand on the cranes lifting capacity can no longer be considered excessive (2 x 30-34t max). The real difficulty is 4 x 20ft handling. This complicates the problem of dealing with unbalanced loads in both the longitudinal and transversal direction and in any case may create a spotting nightmare for the crane driver. Furthermore, a 20ft can legally gross out at 30.48t. Some operators (eg Felixstowe, Dubai) are known to be considering cranes with 120t SWL for 4 x 30t 20ft lifts, implying a crane rope capacity in the 160t range. It is far from clear that this is feasible, even if the dock is strong enough. At the very least, surely, they would have to accept a bigger rail span and out-to-out width over bumpers, to reduce crane mass.

Which solution?
The next question concerns the best way to make side by side lifts: the Bromma way with a Tandem spreader; the Stinis June 2005 29

WorldCargo news

REEFER INDUSTRY

Another big year for reefer manufacturers

he worlds reefer container manufacturing industry is continuing to perform strongly, with another record production in prospect for 2005. As highlighted in Tables 1 and 2, global reefer output has been growing annually by more than 15 per cent in recent years, having increased from almost 100,000 TEU in 2001 to over 150,000 TEU in 2004. It has not declined during any year since 2001.

Reefer container output reached an all-time high last year and is on track for another record in 2005
Although the current outlook suggests a more modest increase of five per cent in 2005, when 160,000 TEU is predicted for delivery, this total could yet prove to be conservative. The reefer box manufacturing sector, dominated as it is by just three major players, continues to benefit from a strong level of forward demand and is already heavily booked for much of this year. It could still take on some limited extra work, especially as total installed reefer build-

Table 1: World reefer container production 2001-2005 by type (rounded TEU) Year 2001 2002 2003 2004 2005** 20ft integral 10,000 16,500 11,000 12,800 12,500 40ft integral 800 300 200 200 100 40ft high cube integral 85,000 97,000 118,000 136,000 144,000 Other* 1,200 1,200 1,800 3,000 3,400 Total TEU 97,000 115,000 131,000 152,000 160,000 Total Units 53,500 65,500 71,000 82,500 86,000

*Includes 12ft, 24ft, 45ft, 48ft, 53ft and other specialised lengths. **Projected
Table 2: World reefer container production 2001-2005 as fleet addition/ replacement and cumulative year end fleet size (rounded TEU) Year Integral production 97,000 115,000 131,000 152,000 160,000 Integral addition 67,000 71,000 67,000 97,000 105,000 Integral replacement 30,000 44,000 64,000 55,000 55,000 Integral fleet size (end year) 915,000 986,000 1,053,000 1,150,000 1,255,000 Insulated fleet reduction -4,000 -4000 -10,000 -5,500 -4,00 Insulated fleet size (year end) 40,000 36,000 26,000 20,500 16,500

2001 2002 2003 2004 2005* *Projected

ing capacity now exceeds 200,000 TEU per annum. Output has similarly rocketed in unit terms, surpassing 65,000 in 2002, 70,000 in 2003 and 82,000 in 2004. It is on target to reach 86,000 this year, with theoretical annual capacity now more than 100,000 units. The forecast for 2005 indicates a production of at least 72,000 x 40ft high cube, 12,500 x 20ft, and upwards of 1500 specialised sizes (ranging from 10ft to 53ft).This is expected to be valued at around US$1.5 bill overall. Global 40ft high cube production topped 68,000 units in 2004, as compared to almost 13,000 x 20ft reefers and another 1500 as specials.Two of most important of these specials are the 45ft palletwide (or Euro-container) reefer and a 53ft domestic version popular in the US and other localised markets. Several hundred of each type was built in 2004, with similar numbers due for delivery during the current year. There has been no mainstream manufacture of 40ft x standard 8ft 6in height reefers for several years, with the 40ft high cube (9ft 6in high) long dominating in the maritime sector. Reefers of the older 40ft size are now confined largely to banana trades, where weight factors disfavour the use of high cube equipment.

able cargoes using integral boxes deployed in standard cellular service.This growth has averaged eight per cent per annum in recent years, with extra business derived from both the expansion of established trades and a continued switch on the part of cold transport operators away from conventional and palletised reefer ships.

Portholes closed
One aspect of the latter is the final phasing of old Conair vessels by the likes of P&O Nedlloyd, CMA-CGA and Hamburg Sd, and their clearance of all remaining 20ft porthole containers.This action has cut the worlds fleet of insulated boxes to less than 20,000 TEU, which compares with a peak of 80,000 TEU operated until the late 1990s. All such equipment is being replaced by 20ft, as well as 40ft, high cube, integrals. As shown in Table 2, the worlds integral fleet currently numbers around 1.2 mill TEU. It surpassed 1 mill TEU in 2003 with over 100,000 TEU added annually in recent years.The 40ft high cube component is now itself almost 1 mill TEU, and makes up over 80 per cent of all reefer equipment in TEU terms.Around 12 per cent (150,000 TEU) is of 20ft length, and a diminishing 56 per cent (70,000 TEU) comprises the 40ft (8ft 6in) size. The latter is forecast to gradually disappear over the next few years. Reefer construction is being boosted further by a rise in the overall replacement of older equipment.This peaked at around 64,000 TEU replaced in 2003, when box lessors committed to a record disposal, and there was a general push to purge the reefer fleet of containers still running on R12 refrigerant or interim blends, as well as those fitted with older analogue machinery controllers. Annual replacement has since held stable at 55,000 TEU, but is forecast to rise again as the increased reefer production of the early/mid 1990s and onwards comes up for disposal in its turn. Almost 90 per cent of all reefer production is now carried

Demand drivers
Demand for reefer equipment is still being driven mainly by increased global shipments of perish-

out in China and mostly by two powerful groups, CIMC (China International Marine Containers) and MCI (Maersk Container Industri). They were responsible for supplying over 110,000TEU collectively from their Chinese factories in 2004, a total equating to almost 75 per cent of the entire global figure produced that year. MCI operates a further factory, in Denmark, which has long been the only source of mainstream reefer production outside China, and supplied close to 17,000 TEU in 2004. The balance of all manufacture is carried out by Singamas Container Holdings and Yangzhou Tonglee Reefer Container Co (YTRC), which supply approximately 15 per cent of world demand between them. However, YTRC is now associated with CIMC, following the latters management takeover in early 2004 of the TYC (Yangzhou Tongyun Container Co) dry freight container manufacturing operation, which has a share- holding inYTRC. Despite this new connection, YTRC is understood to be still running its factory autonomously, at least for the time being, with CIMC as yet not involved.This was confirmed by CIMC itself, which stated that YTRC was continuing to operate independently.

Big enough?
CIMC hardly needs any extra capacity, as it is already meeting over 45 per cent of all global demand for reefer boxes. The share taken by MCI is close to 40 per cent, with all recent expansion focused at its Chinese operation in Qingdao. MCI-Qingdao started up in 1998, having originally been set up by Jindo Corp, and was one of the last major reefer building sites to be opened in China. It has only been post-dated by CIMCs own Qingdao operation, whose main factory entered into fullscale production in 1999 following its acquisition from Hyundai Precision.A second, more special-

Insulated porthole equipment is gradually being replaced by integral reefers

30

June 2005

REEFER INDUSTRY
ised, plant has since been constructed by CIMC in Qingdao. and were recently quoted at an equivalent of over US$2200 per tonne. Even the cost of pre-painted aluminium sheet was up five per cent, although this has long been relatively expensive, at over US$4500 per tonne. By late 2004, the R141b foam blowing agent had also increased by almost 30 per cent on its 2003 price, to over US$1600 per tonne. Despite these higher costs, reefers are today more competitively priced in comparison to standard dry freight equipment than at any time in the past.This is because of the overall greater rise in the cost of Corten steel, which is currently over 70 per cent more expensive than in late 2003. This single price rise has disproportionMCI built a record 56,500 TEU of reefers at its Chinese and Danish plants last year

WorldCargo news

Regional switch
Just 10 years ago, there was no reefer box production of any significance in China, nor in Denmark, as the reefer building industry then had a wholly different regional bias. In 1995, South Korea still controlled the business, alongside Graaff (Germany), Morteo Industrie (Italy) and various smaller (and now long vanished) names in Europe and Asia. It was in 1995 that CIMC opened its first dedicated reefer factory, in Shanghai. This was followed by Singamas, which commenced production at the Shanghai Reeferco facility during that year.YTRC also entered the business around this time. It subsequently took around five years for the Chinese to see off all its former competition and for the current domination by CIMC and MCI to become firmly established. The manufacture of reefer machinery remains equally exclusive, but more globally distributed, than box production. The sector is still led by the Container Products Division of Carrier Transicold, which continues to produce almost 60 per cent of world requirement for reefer container machines. This US-based corporation now conducts all such manufacture at its dedicated factory in Singapore, following its relocation in 2004. Fast becoming its main rival is Daikin Industries, of Japan, whose renaissance in recent years has been remarkable. Daikins revival has been spearheaded by the successful launch/marketing of a newgeneration single-scroll R134a machine, LXE 10E, which has since been supplied to numerous shipping lines, headed by P&O Nedlloyd, Maersk Sealand, CMACGM and CP Ships. The Japanese company currently claims to be meeting 20 per cent of orders, having built more than 15,000 machines in 2004. This leaves a share of roughly 15 per cent for Thermo King Corp, another longstanding US participant, and about five per cent for the other main Japanese supplier, Mitsubishi Heavy Industries.

Price competition
The recent sales growth achieved by Daikin has shaken the former dominance of Carrier, while triggering something of a price war between manufacturers.These have clearly been willing to sacrifice some profit margin and, in sharp contrast to the rising cost of reefer box manufacture, which has been affected by higher material costs, machine prices have tended to fall. By mid-2005, the average ex-works price of a 40ft high cube reefer (of average specification) was around US$18,000, which was several hundred dollars higher than two years earlier. However, whereas most 40ft machinery was still priced at more than US$9000 in 2003, its current average is nearer US$8000. There have even been reports of 40ft machines being sold for below US$8000 in the past year. The average cost of a reefer body increased by almost 20 per cent throughout the same period. Back in 2003, a 40ft high cube was still available for an average finished price of around US$8000. This has since risen to almost US$9500 as most materials/components essential to reefer manufacture have increased rapidly in price. Amongst the worst affected is steel panelling, with the increasingly favoured muffler grade stainless steel (MGSS) jumping by over 25 per cent on its average price in 2003. Back then, high specification MGSS was priced at around US$950 per tonne, but it rose to over US$1200 by late 2004, according to one Chinese source, and since gone even higher. The situation has been more extreme for reefer buyers opting for high grade stainless steel, the price of which jumped by 40 per cent in the 18 months to late 2004. It was already at a premium of US$1800 per tonne in 2003, but subsequently topped US$2500 per tonne. Given that a 40ft high cube reefer contains over three tonnes of steel, the above price rises equate to over US$2000 when high grade stainless is specified. and over US$750 for users of MGSS. Moreover, the cost of some other materials has risen just as severely. The price of aluminium extrusions are on average 15 per cent higher than in 2003 June 2005 31

WorldCargo news
ately inflated the cost of dry freight manufacturing, as compared to reefer, which has benefited from a smaller overall gain in material costs and some actual reduction in machinery prices. Thus the current finished price of a 40ft high cube reefer body is approximately five times its dry freight counterpart, whereas this ratio was nearer eight to one in past years.The corresponding differential for 20ft equipment has fallen from its former 10:1 to around seven to one today. Reefers of 20ft size are thus also gaining in price relative to 40ft high cubes. This is due partially to their more limited production, which now makes up a falling 15 per cent of output in unit terms and already frequently attracts a cost premium. It is also a function of the proportionally high cost of 20ft machinery, which has not altered with the recent slide in pricing. Instead, 20ft machines still cost almost as much as 40ft to build and to buy. The average price of a finished 20ft reefer is currently put at between US$14,500-15,000 depending on specification. Around US$8000 covers the machinery component, with a 20ft box typically costing over US$6500.

REEFER INDUSTRY
MCI. Output from CIMCs three reefer factories almost surpassed 72,000 TEU in 2004, when most lines maintained double shift working.This overall total was up 15 per cent on the 62,500 TEU built in 2003. Shanghai CIMC Reefer Container (SCRC) supplied 39,000 TEU in 2004, comprising 3,000 x 20ft and 18,000 x 40ft high cube, and thus once again contributed the majority (55 per cent) of output. However, a record 30,000 TEU came from Qingdao CIMC Reefer Container (QCRC), as 700 x 20ft and almost 15,000 x 40ft high cube. In addition, almost 1000 reefers of specialised dimension (equivalent to over 2200 TEU) were built at the recentlyopened Qingdao CIMC Special Reefer (QCSR) factory, mostly of 53ft length. Almost 600 x 53ft units were manufactured overall, including 300 for CP Rail. Other runs included 100 x 45ft reefers for Sea Star Line and over 75 units for Royal Wolf as a mix of 41ft 3in and 46ft lengths. CIMCs maritime reefer production was carried out for the usual spread of buyers in 2004, including Hamburg Sd, HapagTable 3: Reefer container production 2001-2005 by country (TEU) Country China Denmark South Korea Other Total 2001 72,800 21,000 2,700 500 97,000 2002 94,500 20,000 500 115,000 2003 114,000 16,800 200 131,000 2004 135,000 16,800 200 152,000 2005* 143,000 17,000 160,000 Capacity** 190,000 18,000 208,000

Cost savings
Reefer box builders have naturally looked to make cost savings during the past year and have managed some reduction through their ever-greater production economies of scale. Most have further streamlined their factory lines and also cut margins in order to remain competitive. The outlook for the remainder of this year suggests that finished reefer prices will not increase further, as steel and other material costs are no longer rising, although they are unlikely to fall since machinery prices are now expected to start moving up again. Also, output volumes are holding up strongly and demand remains relatively strong. However, leasing companies are again expected to buy proportionally few reefers in 2005, accounting for a similar overall share of 25 per cent as they received in 2004.

*Projected. **Annual multi-shift capacity based on continuous 40ft high cube production
Table 4: Reefer container production 2001-2005 by manufacturer (TEU) Manufacturer CIMC Group Maersk Cont Ind Shanghai Reeferco Yangzhou Tonglee Jindo Corp Other Total 2001 38,500 38,000 11,200 5,700 2,700 900 101,000 2002 56,800 41,000 10,000 6,500 700 115,000 2003 62,500 51,500 9,000 7,700 300 131,000 2004 72,000 56,500 14,300 9,000 200 152,000 2005* 68,000 67,000 18,000 7,000 160,000 Capacity** 100,000 73,000 20,000 15,000 208,000

*Projected. **Annual multi-shift capacity based on continuous 40ft high cube production.

Out in front
As indicated earlier, CIMC is holding on to its leading market position, although the company is being challenged increasingly by

Lloyd, Evergreen Line, CP Ships, MOL, NYK, CMA-CGM, APL, Yang Ming, Horizon Lines and Matson Navigation. However, P&ONedlloyd was, once again, its largest single customer, receiving over 8600 x 40ft high cube units. The biggest leasing customer was GE SeaCo, which purchased a total of 5000 x 40ft high cube containers from CIMCs Shanghai and Qingdao factories, followed by Carlisle Leasing, Triton Container, Cronos Container and

Florens Group. Despite the strong sales made to shipping lines, CIMC still achieved a proportionally high delivery of reefers to the leasing sector in 2004, when they accounted for over 35 per cent of its entire output. CIMCs prediction for 2005 is relatively circumspect, as the company is unsure whether its output will exceed the record figure achieved last year. It is currently anticipating a construction of between 65,000-70,000TEU at its two main factories and added that general demand for reefer box equipment is likely to be similar in 2005 to 2004. However, CIMC has already got off to a very good start, supplying over 24,000 TEU in the first quarter of this year.This production was actually close to the companys current theoretical reefer capacity, which is equivalent to roughly 100,000 TEU per year (assuming two-shift operation) and is divided fairly evenly between its two main factories. CIMC has further plans to enlarge its reefer building facilities, mainly through an upgrade of existing production processes. It has also recently bought a

number of patent rights from Waggonbau Elze GmbH, of Germany. These cover various reefer manufacturing techniques developed previously by Graaff GmbH (see WorldCargo News May 2005, p28). SCRC has been building reefers under licence to Graaff since its start-up in 1995 and the latest patent acquisition includes Graaff s 20ft Volumax reefer design. All the new patents are applicable in China, as well as in Europe, the US, Japan and South Korea, and they add an extra 77 to CIMCs registered patent pool.

Record output
MCI also achieved a record output of reefers in 2004.The Tinglev plant in Denmark constructed almost 8500 x 40ft high cubes, while MCI-Qingdao supplied around 4000 x 20ft, 17,400 x 40ft high cube and a further 460 as 45ft palletwide. Sales of the latter were made to UES, Unit45, ECS and CoolBox, as well as to Norfolkline. Maersk Sealand was naturally the biggest single buyer from MCI factories, receiving over 60 per cent of all output, with large purchases also made by NYK, Ever-

TKs Thai seminar

Nearly 125 representatives of Thailands fresh and frozen product import and export sectors attended a seminar hosted recently by reefer machinery manufacturer Thermo King in Bangkok. Dennis Trusler, director, container sales, Asia Pacific, and colleagues Stephen White, director, global marine solutions, Asia Pacific, JJ Foo, service manager, global marine solutions, Asia Pacific, and Pakasit Sarasook, managing director, Thai Cool Ltd, led the seminar, focusing on product and service information important to both fresh and frozen exporters. Weve had success with similar presentations in other markets, said Trusler.Thailands market can benefit greatly from the refrigeration technologies we offer in our Magnum container refrigeration unit and AFAM+ (Advanced Fresh Air Management System). The seminar allowed us to get a more personal message out across a broad spectrum of shippers, importers, retail, etc and offered valuable question and answer time, ensuring attendees understood the features, functions and benefits these products can provide. Ther mo Kings Magnum container refr igeration unit, equipped with a Copeland digital scroll compressor and running on R404A, was introduced just two years ago and is claimed to be the only container unit on the market that can maintain a 35degC setpoint in 50degC ambient temperatures, yet is designed to offer shippers flexibility in product loads. The Magnum offers increased pull down capacity, guaranteeing that fresh or frozen cargoes arrive in optimal condition, is up to 25 per cent lighter 32 than competing designs and can reduce overall energy consumption by an average of 30 per cent. AFAM+ is a computerised system, which manages CO2 levels within a container by utilising a fresh air exchange door.Touted as a lower cost alternative to controlled atmosphere systems, AFAM+ constantly monitors changes in the respiratory gases of products. When the CO2 setpoint of the cargo concerned is reached, the fresh air exchange door automatically opens to allow fresh air in and closes when the desired gas levels are reached. A user-friendly interface allows required commodity setpoints to be easily programmed into the system. A big message from the seminar was that the Magnum is not limited to deep frozen transport, continued Trusler.AFAM+ complements the deep frozen reputation that precedes the Magnum. The units increased pull down capacity and precise temperature control ensure that both fresh and frozen cargoes arrive safely. Since the seminar, several Thai exporters have started trials on fruit and vegetable exports using the Magnum/AFAM+ combination. Thailands Department of Agriculture is assisting with the trials. Our efforts have already led to many product-specific inquiries from Thai exporters including a mango exporter and an asparagus exporter who previously moved product by airfreight to expedite shipments and preserve product freshness. A trial was scheduled with our technology on a container shipment and plans are being made to convert to Magnum with AFAM+ for future exports, Trusler said. June 2005

REEFER INDUSTRY
green, Hanjin, Zim and P&O Nedlloyd. Major leasing customers were Triton,TAL, GE SeaCo, Carlisle and Cronos. Output in 2005 is expected to be higher, according to Soren Johannsen, MCI senior director - sales and marketing, with up to 9000 x 40ft high cube reefers due for construction at MCITinglev and 27,000 units at the MCIQingdao factory. The latter will likely comprise 3000-4000 x 20ft, over 22,000 x 40ft high cube and a further few hundred 45ft palletwide reefers. Overall production from MCI could therefore top 67,000 TEU in 2005 and, if achieved, would mark another sizeable increase, of almost 20 per cent, on the preceding year. MCIs Danish plant is continuing to operate two eight-hour shifts per day and thus working at close to maximum capacity.Two 10-hour shifts are operated at MCI-Qingdao, where annual capacity is set at a theoretical maximum of 55,000 TEU (or 30,000 units). The majority of output, equivalent to more than 80 per cent, is again due to go to shipping lines this year, as they are continuing to aggressively expand and renew their owned reefer fleets. Leasing companies, in the view of MCI, appear more concerned with managing equipment they already hold, by forcing up average utilisation. According to Johannsen, MCI has focused recently on improving safety and efficiency across its factories, as well as enhancing quality control and adding further technical innovation, and continues to invest in its workforce and production lines. At MCI-Qingdao, all electrical power installations have been upgraded during the past year, while a new general warehouse, chemical storage warehouse and environmentally-friendly scrap handling/distribution warehouse have been established. Yard capacity has also been enlarged and two independently operating press lines brought into use. The factory at Tinglev is already highly automated, but additional investment is being made constantly to optimise production efficiency there. MCI further states that, although finished reefer prices have been climbing steadily over the past two years hand in hand with the increase in material costs, the market is now expected to stabilise in the summer months leaving (raw material and container) price levels unchanged for the rest of this year. However, demand is still running close to record levels and global output is predicted to reach another high in 2005. below an earlier company forecast of over 13,000 TEU, was still up around 15 per cent on the 7700 TEU delivered in 2003. The vast majority of sales were again made to shipping lines headed by OOCL, which purchased 2500 x 40ft high cubes and thus accounted for over 50 per cent of all recent YTRC production. Other important clients were China Shipping, Evergreen and Yang Ming, and numerous deliveries also went to local carriers operating to/from China. However, YTRCs manufacture for leasing companies was minimal, comprising a trial production of 50 x 20ft units for Carlisle. Its more specialised business includes reefers for military and domestic use in Japan (12ft), Australia and Europe. YTRC can build up to 30 x 40ft high cube reefers per day, based on its current two shift working, having earlier carried out an extensive programme of factory upgrading. A more recent company announcement indicated that capacity was to be increased by a further 25 per cent, to around 40 containers/day, subject to an investment of RMB15 mill. At the same time, its specialised reefer line is also to be enhanced and additional designs introduced. However, in the aftermath of CIMCs management takeover of TYC, the status of these projects is not precisely known. Neither has YTRC given any indication of its likely output for 2005, although it is suggested that this may be down a little on 2004. Already highly automated, additional investment is being made constantly at MCIs Tinglev plant to optimise production efficiency

WorldCargo news

On the up
Singamas has been another to benefit from the strength of reefer demand. Production at its established factory, Shanghai Reeferco Container Co, jumped 50 per cent in 2004 to more than 14,000 TEU. It had previously averaged less than 10,000 TEU per year. Its 2004 output comprised over 3000 x 20ft (including 500 of high cube size), 5500 x 40ft high cube and 110 x 40ft specials. Sales were made to an impressive spread of leasing companies, headed by Carlisle, Florens and GE SeaCo, and to various shipping lines, including China Shipping Container Lines, Hyundai Merchant Marine and principal shareholder, PIL. In 2004, the leasing sector accounted for around two thirds of its TEU output, with Carlisle alone receiving almost 40 per cent. Shanghai Reeferco is predicting another substantial boost in output for 2005, according to Andy Chan, marketing director at Singamas Container Holdings, with up to 18,000 TEU scheduled for delivery. This would represent another large increase, of 30 per cent, on the previous year and a near doubling in production since 2003. The output planned for 2005 is expected to split at around 1300 x 20ft and almost 8500 x 40ft high cube, with approximately 50 per cent each going to lessors and shipping lines. Daily production at the factory is set at around 40 x 40ft high cube containers, based on a nine-hour shift, following a major overhaul of the plant in 2000-01.

Bouncing back
YTRC also constructed a record number of reefers in 2005, including 1,800 x 20ft, over 3,500 x 40ft high cube and about 120 specials. Overall production thus topped 9000TEU and, although it was significantly June 2005 33

WorldCargo news

CONTAINER INDUSTRY
35 per cent of the container industrys annual demand.

Sorting the wood from the trees

I
n 2004, the global container manufacturing industry built a record 2.62 mill TEU of standard steel dry freight containers, the vast majority of which were fitted with tropical hardwood plywood flooring. Production of those floors consumed around 900,000 m3 of apitong plywood, culled from the worlds dwindling tropical rainforest resources, primarily in Indonesia, but also in Brazil, Malaysia,

No 2 - the larch
In pursuit of its ultimate goal of replacing apitong completely, therefore, CIMC has redirected its R&D efforts into exploring other wood species. After two years of testing, it has come up with a new hybrid plywood floor, manufactured from larch and birch, that, it says, is both a viable alternative to apitong and has virtually limitless availability. The new floor is of a conventional 28mm thickness and is made up of 21 plies, the three top and bottom plies using long grain veneers and those in the middle alternated between short and long grains. The majority of the floor, including the top surface, is made up of larch, a coniferous softwood, and the rest, including the bottom surface, is of birch, a deciduous hardwood. The performance of the floor is achieved, says CIMC, by combining the elasticity of the larch with the rigidity of the birch. CIMC has also developed a viable alternative to floor varnish in the shape of an impregnated phenolic film, as well as a layer of black PVC film as an alternative to bitumen undercoating. These films can be effectively applied to the larch and birch surfaces as well as to apitong, the company says.

Progress is finally being made in the development of viable alternatives to tropical hardwood plywood for container floors, with the worlds biggest box builder leading the way
Surinam, Cambodia, Myanmar and elsewhere. The industry has, of course, long recognised that as environmental concern over the destruction of tropical rainforests grows, continuing reliance on tropical hardwood flooring will not be an option in the not too distant future. Hitherto, however, no alternative material - wood or nonwood - has been found that can match the technical performance of apitong at a price that is ac-

CIMC says its new larch/birch plywood floor is a promising alternative to apitong ceptable to container buyers and is available in sufficient quantity to replace apitong to any significant degree. And ironically, even apitong is now struggling to meet all the industrys accepted criteria. Over recent years, environmentallydriven logging restrictions have led to increasingly immature trees being logged - often illegally with the result that the overall quality and technical characteristics of the plywood produced has been negatively affected. Container designers have been forced into radical measures to overcome quality and performance deficiencies, including increasing the thickness of cross members and incorporating extra centre rails to reduce the span of the individual plywood boards. At the same time, wild fluctuations in availability have led to equally wild fluctuations in price. At the end of 2003, apitong plywood was available at US$470/m3, or US$175 per 20ft floor set. More recently, it has been closer to US$600/m3 (US$225 per 20ft floor set). to tackling the flooring problem. For the past four years, the company has been producing 28mm plywood floors manufactured from 21 plies of eucalyptus sandwiched between plies of apitong at the Xinhui CIMC Container Flooring Co mill in Guangdong. The eucalyptus, a hard, close grained wood that is well suited to peeling and processing into plywood, comes from managed forests in Tasmania. Originally set up in 1999 to manufacture apitong plywood, the Xinhui mill is now focused exclusively on the eucalyptus/ apitong combination and produced around 100,000 m 3, or 270,000 TEU sets, last year. Annual capacity at the Xinhui mill is put at 480,000 TEU sets and last year, CIMC opened a second plywood mill in Shanghai, which has already supplied around 120,000 TEU of eucalyptus flooring to the market. Capacity at this new mill is to be built up to around 420,000 TEU sets per year. The development of the eucalyptus floor, which has been widely accepted by both shipping line and leasing company buyers, is certainly a step in the right direction, but as CIMC itself admits, eucalyptus and other acceptable alternative wood species that are currently being produced, such as bamboo/softwood composites, have limitations either in resource supply or production capacity and, at the current stage of development, could satisfy no more than

Extensive testing
A full range of testing has been carried out on the hybrid larch/ birch floor to prove that it is capable of meeting the container industrys requirements. Under joint ABS, Bureau Ver itas, Germanischer Lloyd and Lloyds Register supervision, the floor, fitted in a 40ft high cube container, was subjected to the standard ISO plus 33 per cent (7260kg) floor strength test and after nine passes of the test vehicle passed the test with no sign of failure. All four classification societies have now certified the floor. The floor has also successfully passed longevity/fatigue tests and the IICL short span shear test, as well as weather resistance, adhesive bond and edging/scratching tests. It has also been found to be easier to clean than apitong. The new floor was recently fitted in trial volume production runs of Hamburg Sd and MOL containers for extended in-service testing. The installation itself posed no difficulties, CIMC says. Birch plywood has, of course,

Leading from the front

For more reasons than one, therefore, the need for a readily available alternative flooring material is pressing and as befits its status as the worlds largest container manufacturer, China International Marine Containers (CIMC) has devoted a considerable anount of technical and financial resources

COA examines floor options

A measure of the importance the container industry is attaching to the development of new flooring materials can be gauged from the fact that one of the first items of work undertaken by the recently-formed Container Owners Association (COA) was a Report on Alternative Materials for Container Floorboards. Prepared by the COAs New Materials Working Group, made up of Marc Weidemann (Capital Lease), Jan Striesow (Hamburg Sd) and Nigel Stribley (Blue Sky Intermodal), the report reviews alternatives to apitong that are currently available in order to assist COA members to make an informed decision about which material may be best suited to their own requirements. The report notes that all the products reviewed have advantages and disadvantages and none is yet available in sufficient vol34 ume to replace apitong on its own. Instead, for the foreseeable future, COA members will have to purchase and operate a number of different types of floor in their new container production. Details are provided of the suppliers of alternative flooring materials and the construction method of the floors, followed by a comparison of each of the alternative floors with apitong in terms of performance, availability and price. Alternative materials covered include steel, eucalyptus plywood, larch/birch plywood, bamboo/ softwood plywood, composite (plastic) materials, hardwood planks, softwood planks, laminated softwood, and laminated hardwood. For further information visit the COAs website at www.container ownersassociation.org or email: marc.weidemann@capital-lease.com June 2005

CONTAINER INDUSTRY
long been accepted as a container flooring material, having been manufactured for decades in Finland by companies such as Schaumann Wood Products, but it was largely priced out of the market when the container manufacturing industry shifted to the Far East. It is assumed that by sourcing the materials and manufacturing the plywood close to the box production centres, the new floor will be competitive in pricing to apitong. The supply sources for the larch and birch are in North East China and Russia where, says CIMC, the reserve of mature and over-mature coniferous species represented by larch is over 50 bill m3 and that of birch exceeds 25 bill m3. Managed exploitation of mature and overmature forests would help the growth of younger trees and hence is sustainable and environmentally-friendly, CIMC says. CIMC opened a timber factory in Inner Mongolia last September to process the larch and birch. Currently it is producing veneers for shipment to the Shanghai and Xinhui mills, but the plan is to start plywood production there next year at an annual rate of 300,000 TEU sets. Assuming the hybrid floor is accepted by the market, all of this means that by next year, CIMC will be in a position to produce 1.2 mill TEU of environmentally-friendly eucalyptus/apitong or larch/ birch floor sets annually, which, on the basis of last years container production figure, would slash around 46 per cent off the global demand for apitong plywood floors. CIMC itself built 1.52 mill TEU of dry freight boxes last year - 58 per cent of global demand - so it will be capable of meeting close to 80 per cent of own needs. in 3500 x 20ft containers for Hanjin Shipping Co.A further 2500 x 20ft Hanjin units will be fitted with the floor later this year, while MOL and KMTC also have a number of units on trial. Production capacity of the Chemfree floor is, however, limited to around 1500 m3 per month, or less than 50,000 TEU sets/year. It is also subject to the vagaries of oil price movements and at a current price of US$1250 per m3 (US$470 per 20ft set) is still too expensive for the majority of box buyers. Another Korean company, Saejin Container Components Co, is attempting to minimise the price of its composite floor by utilising recycled plastic waste reinforced with glass fibre. It also plans to manufacture the floor in China, close to major container production centres. The Container Plastic Board is manufactured to a 28mm thickness in a honeycomb configuration and is claimed to be able to match the technical characteristics of apitong, whilst being significantly lighter at around 250 kg per 20ft set. The floor has passed all relevant tests under classification society supervision and is currently undergoing in-service trials with Maersk Sealand. Full scale production is scheduled to start shortly at an initial rate of 4000 TEU sets per month. The inherent strength of honeycomb structures is also the basis for a new type of sandwich panel developed by Germany-based COHOPA GmbH (Company for Honeycomb Panels) and touted as an alternative to plywood for container floors. Manufactured to a standard 28mm thickness, the new panel comprises a paper honeycomb core infilled with polyurethane foam, sandwiched between top and bottom layers of glass fibre-reinforced plastic. According to COHOPA, initial testing at the University of Bayreuth has shown that the new panel displays up to 700 per cent higher bending stiffness than standard polyurethane foam sandwich panels, significantly increased compressive strength and offers a weight reduction of around 50 per cent over a standard hardwood plywood floor. Working in association with chemical giant Bayer, COHOPA will shortly manufacture a series of prototype 20ft container floors (dubbed FloorKITs), which will be subjected to the full range of standard floor tests. Members of the Container Owners Association (COA) have agreed to

WorldCargo news
provide containers for the testing phase. Assuming the tests are successful, mass production will be launched initially at a facility in Bavaria and subsequently at a yet to be decided location in China. Each plant would be capable of producing 1 mill m2 annually, or around 76,000 TEU sets if production were devoted entirely to the box market. At an indicative price of 24/m2, a 20ft floor set would work out at around US$380 - significantly more than the current price of apitong, of course, but COHOPA argues that life cycle costs would actually be lower. Due to the outstanding properties of the honeycomb panel, the company also says that it may be possible to reduce cross member thickness, with a consequent saving in box manufacturing cost.

Further erosion
Other developments in both the wood and non-wood areas could erode the demand for apitong further still. As mentioned earlier, bamboo/softwood plywood composites, exemplified by the Greentech floor developed in the late 1990s by Technicon International, are seen as a viable alternative to apitong. The Greentech project failed, but a successor in the shape of Nantong New Atlantic Forest Industry Ltd (NNAFI) has now started full scale production at a new mill in Nantong, producing around 2000 TEU sets per month. The NNAFI floor, which has passed all relevant tests, differs from Greentech in that it is made up of 70 per cent bamboo and 30 per cent pine, whereas it was the reverse with Greentech. Annual production capacity at the Nantong mill is put at 20,000 m3 (55,000 TEU sets). The company is reportedly considering a second production facility in southern China to better serve container factories in the Guangdong area. Customers for the NNAFI floor to date include P&O Nedlloyd, Inter pool, Cronos and Blue Sky Intermodal. Bamboo also features in a new floor design manufactured from renewable resources that Canadian interests have been developing for the past five years.The socalled Engineered Fibre Container Flooring comprises an aspen/poplar softwood composite core with woven bamboo exterior veneers on both sides and is manufactured using a patented technology. Numerous tests have been conducted in laboratories and at several Chinese container factories, the latter under the supervision of BV and LR. In addition to proving that the floor meets the standard ISO floor strength test in both 20ft and 40ft containers with 4mm cross members, the tests also showed it was able to withstand 100 cycles of ISO plus 33 per cent loading without exhibiting any cracking, breaking or delamination. In-service testing is scheduled for later this year.

Plastic potential
A number of developments with the potential to provide an alternative to apitong are also taking place in the non-wood sector, though price remains a drawback. Furthest down the line is Korea-based Chemfree Tech Co/Container Network Corporation with a composite floor manufactured in an extrusion process from cellulose fibres and modified polyolefin resins. The floor has passed all relevant tests and has been installed this year by CIMC June 2005 35